Location could drive up chicken price by 20%, importers say

Chicken is an affordable source of protein for many South Africans, and the country depends on imports to meet total demand.

As the government maintains the measures it has taken to support local businesses, poultry producers fear that location policies will put the burden on consumers through sharp price hikes. The poultry organization ChickenFacts estimates that the localization policy announced by the Department of Trade, Industry and Competition (DTIC) could cause prices to rise by up to 20%.

The ministry strongly defended the policy, which was implemented in May. It aims to reduce imports by around 20% by stimulating local purchases and is part of the government’s attempt to add R200 billion to the country’s economy by securing the production of more than 40 products identified by the DTIC . By specifying that certain articles must be produced 100% locally, the DTIC hopes to support economic growth and contribute to job creation.

But ChickenFacts – which is part of the Association of Meat Importers and Exporters (AMIE) – says that if the policy is implemented too quickly and without the necessary capacity in place, it estimates poultry prices could rise up to ‘at 20%.

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