Eastern Cape missing from implementation of Poultry Industry Master Plan

By Mhlobo Mbane

The Department of Agriculture (DoA) is very clear in its key Poultry Industry Master Plan (PIMP) policy document that was signed by former minister Thoko Didiza on 7 November 2019 and having concluded in 2023. The poultry sector is now working on a phase 2 of the PIMP in consultation with its social partners.

Five pillars were identified, concluded on and adopted as a strategy to transform and develop the poultry sector. Its main aim is to open doors to opportunities for the black smallholder poultry farmers to enter the space and participate in the mainstream economy of this country.

Pillar 1: Poultry biosecurity and quality
How do we prevent the spread of disease on farms?

Pillar 2: Poultry exports and imports

How do we support and promote the inclusion of the black smallholder and commercial farmers into this space of exporting to other countries like America? The Africa Growth and Opportunity Act (AGOA), which we are currently unsure where it stands, was supposed to be renewed in September 2025.

Pillar 3: Producer and processor support

The financial support for smallholder and commercial farmers provided by government programmes, such as CASP, and the blended finance from various institutions like ABSA, IDC and Land Bank.

Pillar 4: Affordability and demand interventions by the state

The VAT zero rating of the poultry products to make it affordable to the poorer families. Chicken meat remains the cheapest source of protein for many families. We have won the VAT zero rating on chicken offal and now the battle is fighting the zero rating on other chicken portions.

Pillar 5: Effective trade and protection

The issues of import tariffs to protect local producers from the dumping of poultry products from other countries.

Other provinces have begun their work and made progress on several of the pillars, except for the Eastern Cape Department of Agriculture. This is a cause for concern within the farming community. Currently, there are no projects to showcase in support of the PIMP policy plan. Multiple attempts to meet with department heads and the Eastern Cape Poultry Farmers Association (ECFPA) to discuss this important matter related to the PIPM have gone unanswered. The last scheduled meeting was confirmed but subsequently postponed. When the association leaders followed up, they received no response.

The meeting with the provincial Department of Agriculture was intended to resolve differences and create a plan to prevent the waste of state resources and the failure of intended projects. Farmers have experienced a high rate of failure in state-funded projects, particularly in the Eastern Cape. The blame for this rests on the shoulders of state officials, who often lack the competence and understanding necessary to navigate the farming business environment effectively.

The procurement of production inputs has been viewed as low-hanging fruit, leading to a lack of focus on larger projects that could significantly impact job creation and address food insecurity in the province. Currently, the unemployment rate in the Eastern Cape stands at 36.6% in the fourth quarter (Q4) of 2024, and 39.3% in the first quarter (Q1) of 2025. There is a long list of failed projects in the province, and it is evident that there is no consequence management on the government side. Funds are allocated to these projects year after year, yet there are no noticeable positive outcomes to show for it.

The Eastern Cape Farmers’ Poultry Association (ECFPA), like other farmers’ associations, has expressed a desire to engage with the state and provide advice on how best to tackle these challenges. It is clear that the Department of Agriculture (DoA) lacks a concrete plan to drive the development and growth of the poultry industry, despite the existence of a nationally signed and gazetted policy document that outlines the necessary steps to unlock the province’s economy.

Currently, Eastern Cape poultry farmers still rely on imports of day-old chicks from other provinces. The DoA funded a Kali hatchery in Ngqamakhwe, in a village called Ntsetshe, intended to incubate eggs and hatch chicks for sale to local farmers at an affordable price and of A-grade quality. This facility was expected to be a game changer for the poultry sector and the province’s economy. However, it remains locked and has never operated since its completion in 2009, despite a funding amount of R3 million from the DoA.

Furthermore, in 2019, the DoA built a poultry abattoir in an area called Grahamstown for the Lukhanyiso Poultry Cooperative at a cost of R7.6 million. This facility was launched but never operated, and instead, it was vandalised beyond repair.

The biggest stumbling blocks that often lead to failures in agricultural projects include the lack of interest from department officials in engaging with farmer-led organisations and the top-down approach that lacks proper social facilitation measures to address the concerns of the communities where these facilities are built. We have many examples of projects that show little to no progress or growth due to these issues.

The Dimbaza and Idutywa industrial areas have the potential to be developed into excellent sites for agro-processing facilities. Unfortunately, we are witnessing high levels of vandalism at these structures. The red hubs constructed by the Eastern Cape Rural Development Agency could be revamped and enhanced to include feed mills, which would help alleviate the burden of high feed costs that are hindering the growth of the poultry sector. Currently, 70% of the production costs in the poultry business come from feed, and we have vast tracts of underutilised land that could be converted into production sites for animal feed ingredients, such as soybean, sunflower and maize.

Despite this potential, we are still importing chicken products from countries like Brazil, Argentina and the United States. The recent outbreak of highly pathogenic avian influenza in Brazil in May 2025 and the subsequent ban on imported poultry products from Brazil by the Department of Agriculture present a significant opportunity for our country to support the local poultry industry. This situation allows us to close the gaps in supply and capitalise on the shortages of imports. Brazil plays a crucial role in South Africa’s poultry supply chain, accounting for 92% of the country’s mechanically deboned meat (MDM) imports – averaging 18 000 metric tonnes per month. Additionally, Brazil supplies 73% of other poultry imports, including bone-in chicken and offal.

We urge the government to engage with social partners, including farmers’ associations, and to emphasise the inclusion of smallholder poultry farmers in the poultry supply chain, along with providing funding support. It is essential to have the right leaders in these projects, and we have business entrepreneurs with the potential to succeed in this area.