South Africa’s poultry industry has overtaken the United States to become the world’s second-most competitive producer, behind only Brazil, according to a new competitiveness benchmark report.
The Bureau for Food and Agricultural Policy’s 2025 Competitiveness Benchmark Report, compiled in collaboration with Wageningen University in the Netherlands, found that South African producers achieved the lowest feed conversion ratio among all major producing nations, including the Netherlands, Germany, Poland, the United States and Brazil.
This means South African producers use less feed to produce a kilogram of chicken than their global counterparts.
“South Africa remains one of the most technically efficient poultry producers globally,” said Izaak Breitenbach, CEO of the South African Poultry Association’s Broiler Organisation.
The industry’s production cycle, averaging 31,5 days, is the shortest of all countries studied, while carcass weights have increased by 4,5% over the past decade. Feed conversion efficiency has improved by 14,1% over the same period.
Feed costs account for approximately 70% of the cost of rearing a bird. Although the nominal price of feed rations in 2024 was 26% higher than in 2015, the feed-related cost per kilogram of chicken produced increased by only 8% due to improved conversion efficiency.
The cost of producing chicken in South Africa remains higher than in Brazil, the world’s leading exporter, but is now lower than in the US and substantially below all three European benchmark countries, despite government subsidies available in those markets.
The industry achieved these gains despite facing significant challenges. Loadshedding in 2023 increased the cost of feed milling and hatchery operations, while the 2024 drought curtailed maize and soybean production, pushing feed prices above export parity levels.
The 2023 outbreak of highly pathogenic avian influenza led to the culling of 3,5 million broiler breeder birds, approximately 45% of the national flock, temporarily raising day-old chick prices. Housing and capital costs rose sharply due to higher interest rates, while rand depreciation compounded imported input costs.
Production increased by 11,8% over the past ten years, outpacing consumption growth of 8,8%.
Breitenbach said future growth would depend on the industry’s ability to compete in export markets. “All it needs now is Minister Steenhuisen’s assistance with the facilitation of exports and bird flu vaccinations. That is the only way the local industry will improve its competitiveness,” he said.
ALSO READ: South Africa takes landmark step with first-ever poultry vaccination against bird flu
You must be logged in to post a comment.