Posted: December 8, 2020
Poultry industry executives met with the Minister of Trade, Industry and Competition: Mr Ebrahim Patel and the Minister of Agriculture, Land Reform and Rural Development: Ms Thoko Didiza yesterday to review implementation of the Poultry Master Plan signed in November 2019.
The meeting applauded progress made over the past 12 months, which included the following:
- A new tariff was put on imported poultry which provides greater protection for local producers and which assisted with one million additional chickens being produced locally every week since the new duty structure. In all, 145 300 tons of poultry is now produced by local firms per month
- Investment in expanding the capacity of the sector was stepped up, with R1.1 billion invested in upgrading and improving the efficiency of facilities.
- 930 new jobs were created in the sector as a result of the increased investment
- Cooking capacity for poultry meat exports has increased by 65 tons per week
- Transformation is being facilitated through support programmes for black farmers, with 13 new contract farmers assisted feed and chicks from the producers
- Imports of poultry is down by 17% in the first 10 months of this year, compared to the similar period last year.
The meeting was co-chaired by Ministers Patel and Didiza.
Chief Executive Officers noted that progress was made in spite of a decline in chicken consumption during the initial lockdown period.
Industry stakeholders committed to step up their efforts in 2021, building on the progress made during the past year. The meeting agreed to launch a ‘buy local chicken, eat South African poultry’ campaign over the Christmas period.
The Poultry industry has strategically prioritised the European Union, Saudi Arabia, United Arabs Emirates, Qatar as well as other African countries to take advantage of the African Continental Free Trade Area (ACFTA). Some of the South African companies are already exporting pre-cooked meat to the Middle East, especially to Qatar.
“In a difficult year, we have seen promising gains in the South African poultry industry. We have had more than R1 billion invested by domestic companies, resulting in nearly 1 000 additional jobs and an encouraging increase in production. The next year will require more work to open up export markets and further drive transformation across the entire poultry value chain,” said Minister Patel.
In assessing the work on the implementation of the Poultry Master Plan, Minister Didiza appreciated the progress made despite the difficult year that all of us have experienced. Didiza noted the statutory measures implemented in the beginning of the year by Government.
“It will be necessary to continuously watch that implementation proceeds as intended. The financing of the poultry plan particularly growing independent black producer remain critical,” said Minister Didiza.
The SA Poultry Association noted that the poultry industry invested heavily in the masterplan in 2020, with R1.14bn to grow production capacity by 5% or approximately 1m birds per week for slaughter.
“Transformation was high on the agenda and 13 new farmers established their own contract farms with assistance for inputs like feed and chicks from the producers. 2021 will be the year of delivery in terms of the masterplan where increased local production and consumption is envisaged,” said Isaak Breitenbach of the South Africa Poultry Association.
The Association of Meat Importers and Exporters (AMIE) noted its commitment to improve the value of South African trade and participation in the global economy.
“The association is committed to not only the poultry master plan but committed to the deliverables required. Part of the backbone of those deliverables is ensuring the growth of the export market. It is pleasing to note the increase in local production, the benefits to the consumer can only be realized if all the Poultry Master Plan objectives delivered,” said Paul Matthews of AMIE.
Grain producers supported efforts to grow the industry.
“Soybean producers are intending to increase hectares by 11.5% this season. It shows that the strategies of government (dtic Soybean Strategy) and the various efforts of the industry is bearing fruits and will increase soybean production even further in future. Added to this, it is expected that maize hectares will increase by 5.2% from last year. Grain SA, through our developing farmer programme, has also helped 26 new developing farmers to plant soybeans on more or less 1200 hectares across the country,” said Corne Louw of Grain SA
The Master Plan was also supported by the black farmer association and the trade union movement.
“The African Farmers Association of South Africa has noted the positive signs of progress made in such a short space of time. As South Africans from all walks of life, we need to hold hands and work together to build an inclusive agricultural sector that accommodates all farmers,” Mr. Nakana Masoka, AFASA Secretary General stated.
Issued jointly by Departments of Agriculture, Land Reform and Rural Development and Trade, Industry and Competition.
Agriculture, Land Reform and Rural Development
Reggie Ngcobo: 0828832458
Trade, Industry and Competition
Sidwell Medupe: 0794921774
Tel: (012) 394 1650
Follow us on Twitter: @the_dti