1. A quantitative and qualitative analysis of the South African broiler industry
- Author
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Joubert, Jan Christoffel Nel, Willemse, Johan, Strydom, Dirk, Joubert, Jan Christoffel Nel, Willemse, Johan, and Strydom, Dirk
- Abstract
The South African broiler sector is the largest agricultural sub-sector. It contributed R37.2 billion or 16.5 % to the total agricultural sector in the 2014/15 season (DAFF, 2016:76). The industry produced ± 962 million broilers in 2014 and ± 1 003 million in 2015 (SAPA, 2016b). The Department of Agricultural Forestry and Fisheries (2015:69) reported per capita consumption of 16,11 kg in 1993/94 and 38,5 kg in 2013/14 season, which constitutes a growth of 140 % over the past 20 years. The Bureau for Food and Agricultural Policy (BFAP) estimated that consumption would increase by a further 38 % from 2014 to 2024 (BFAP, 2015:74). Chicken meat remains an affordable protein, as against pork and beef (Lovell, 2014a:12). The industry employs ± 10% of the total agricultural workforce (IDC, 2016:66). From a supply and demand perspective, South Africa consumed 2 127 389 tonnes of broiler meat in 2015 (South African Poultry Association (SAPA), 2016a: 1). The local production by commercial and subsistence farmers, together with imports are as follows. Commercial farmers produced 1 720 155 tonnes in 2015. Importers, retailers, and wholesalers imported 457 374 tonnes. Subsistence producers produced 69 334 tonnes. Live sales from depleted stock comprised 71 885 tonnes, and exports formed 65 815 tonnes (SAPA, 2016a: 5). The trade in broiler meat of certain cuts and mechanically deboned meat (MDM) is a vibrant and active market. The value of imports increased by 139 % from R1,5 billion in 2010 to R3,6 billion in 2015 (SARS, 2016). World broiler meat prices decreased between 30 % and 40 % from 2014 to 2016 (Unnerbary, 2016). The northern hemisphere prefers ‘white’ chicken meat (mostly breast meat). Because of this preference, research and development in the USA and EU poultry industries have resulted in larger chickens produced. This phenomenon results in surplus production in the specific markets of brown meat (drumsticks and thighs), which needs to be sold in other global markets.
- Published
- 2017