Cape Times

The temporary suspended anti-dumping poultry duties are just that – temporary

distortion practices is crucial for the sustainabi­lity of the poultry industry, safeguardi­ng the competitiv­eness and efficienci­es in the local poultry industry are equally important.

Since the adoption of the Poultry Master Plan, there have been positive sentiments in the industry, which triggered a rise in investment­s in local production and creation of jobs.

However, the growth in domestic production is being hampered by competitiv­eness and efficiency challenges in the poultry value chain.

At the apex of challenges are the rising input costs, which affect the competitiv­eness of the local industry. Globally, the price of raw feed materials such as oilseeds and maize have been impacted by global conflicts, which constraine­d supply and tempers with trade flows.

As a result of global constraint­s, the world poultry price increased sharply to reach a peak in mid-2022, but since then it has gradually declined. Similarly, domestic poultry prices rose sharply for most of poultry products between 2022 and 2023.

The outbreaks of avian flu do compound the availabili­ty of poultry products and tend to have long-term effects on farmers’ income.

In 2023, the South African poultry industry, in particular eggs, experience­d significan­t losses due to the outbreak of the avian flu virus. Adding to the hardships of the poultry industry in the country is the persistent issue of electricit­y supply, which remains a thorny problem for farmers.

The launch of the Agro Energy Fund is a welcomed interventi­on to incentivis­e farmers to invest in alternativ­e energy sources.

There is a need to prioritise the growth-stimulatin­g measures in the industry to ensure that competitiv­eness and efficiency gains are sustained.

In the main, access to affordable finance for farmers to rebuild their poultry flock following the outbreak of avian flu in 2023 is important.

This can be achieved through the blended finance scheme and other funding solutions that are innovative and accessible to all farmers. Parallel to the blended finance is the provision of the Agro Energy Fund to help farmers invest in alternativ­e energy sources.

Over and above access to finance is the issue of water supply. Access to clean and reliable water is increasing­ly becoming a challenge for farms and agribusine­sses. Deteriorat­ing water infrastruc­ture underscore­d by limited new investment­s and poorly maintained existing water infrastruc­ture is part of the problem.

To address the water challenge, municipali­ties and water authoritie­s must invest in the maintenanc­e, repair, and expansion of the water infrastruc­ture, prioritisi­ng the supply to farms for food security purposes.

Parallel to addressing the finance, electricit­y and water issues is the need to continue supporting the industry against the unfair competitio­n from the subsidies or dumped imports.

In recent months, the imports of chicken meat have surged on the back of temporary suspended anti-dumping duties. The outbreak of the avian flu also compelled breeders to import fertile eggs to rebuild the breeding stock. While rebuilding parental stock is important, this should not impact the growth of the domestic market.

Sifiso Ntombela (PhD) is an agricultur­al economist. He serves as the Special Adviser to Minister Thoko Didiza, in the Department of Agricultur­e, Land Reform and Rural Developmen­t. He is also an elected President of the Agricultur­al Economics Associatio­n of Southern Africa.