Lockdown boosts pet food industry
SA’s pet food industry, worth an estimated R5.9bn, has proven to be pandemic-proof, according to Dominique Kuhlmann, general manager of the Pet Food Industry Association of Southern Africa.
She said that at the beginning of lockdown there was a spike in sales as pet owners hoarded food for their animals, but that sales stabilised when the lockdown regulations were lifted.
Manufacturers of pet food have benefited from the demand, which has been boosted by an increase in pet ownership.
Sonja Maricevic, chief operating executive for Pack Leader, the supplier of brands Acana and Orijen, said it had maintained overall sales during lockdown and experienced an increase in food sales for puppies.
She said Pack Leader customers were in a high living standards measure, which meant sales remained steady.
Johan van Jaarsveld, the MD of Montego Pet Nutrition, said the industry had upheld its reputation of being recession-tolerant.
Montego continues to produce 23t of pet food daily at its factory in the Eastern Cape town of Graaff-Reinet to meet the demand for its products.
He said during the pandemic people adopted more pets, which saw an increase in pet care and nutritional sales compared to 2019. Montego experienced an increase in sales of dry and wet food for dogs and cats, with dog food still their largest product.
Cash-strapped consumers did, however, trade down to more economical products.
Kuhlmann said many consumers contacted the association for information on less expensive pet food options.
Van Jaarsveld said that although Montego’s economy and premium products both experienced sales growth, the economy ranges increased exponentially.
The domestic production of pet food has increased substantially over the years.
Kuhlmann said imported pet food accounts for only 17% of the market, with local producers making up the rest.
Van Jaarsveld said the pandemic served local producers well.
Local companies that could provide local retailers with a constant supply of products and services were supported over international companies that found the supply of imports challenging in times of uncertainty and strict conditions of lockdown.
But for Pack Leaders, which imports products, Maricevic said it kept stocks of food in SA, which tided it over the panic buying in March.
The manufacturer of Acana in Canada also kept its kitchens fully operational, so the supply chain was unaffected.
However, some of Pack Leader’s pet accessories, such as dog leads, were seeing unprecedented demand as the global trend of working from home meant more time was spent with pets and the demand for pet requisites led to longer supply times.
Kuhlmann said the weakening rand increased the cost of imported food for pet owners, and local producers who imported raw materials were also feeling the financial pressure.
Van Jaarsveld said import prices were drastically affected by the national lockdown rules and regulations and although Montego was able to import the necessary raw materials, its purchasing patterns had to adapt to the longer lead times and increased costs.
Despite the stability in the industry, local manufacturers of pet food products are bound by the Fertilisers, Farm Feeds, Seeds and Remedies Act 36 of 1947, which maintains stringent regulations about the production and marketing of pet food.
“We are more regulated than baby food,” said Van Jaarsveld.
Kuhlmann said the highly regulated environment benefits consumers — if the product they purchase has a regulation number on it they can be assured that it contains all the requisite nutrients.
But the act, though it has had some amendments, “hasn’t been propelled into the 21st century”, she said.
The pace at which pet food is evolving is faster than the onerous testing and approval process required by the act.
She said consumers were seeking new products such as grain-free, raw and freezedried food, but South African manufacturers were not able to bring these to market as quickly as consumers required.
The association is working with the department of agriculture, land reform & rural development to review the processes and procedures within the act.
Husky and Epol did not respond to requests for comment.
Hill’s Pet Nutrition declined to comment.