South Africa has achieved a remarkable milestone in agricultural competitiveness, with its poultry sector now outperforming the United States and ranking second globally, trailing only Brazil, according to the newly released BFAP 2025 Competitiveness Benchmark Report.

The comprehensive study, conducted by the Bureau for Food and Agricultural Policy (BFAP) in collaboration with Wageningen University, assessed major poultry-producing nations including Brazil, the United States, Netherlands, Germany and Poland, revealing South Africa’s exceptional rise in the global rankings.

Record-Breaking Efficiency Gains

The report highlights several impressive achievements that have driven South Africa’s competitive advantage:

Feed Efficiency Leadership: South Africa now boasts the lowest feed conversion ratio among all major producers assessed, meaning farmers use the least amount of feed per kilogram of chicken produced.
Rapid Production Cycles: The country has achieved the shortest production cycle at just 31.5 days.
Continuous Improvement: Feed conversion efficiency has improved by a remarkable 14.1% over the past decade.
Weight Gains: Carcass weights have increased by 4.5% over the last ten years.

“These efficiency gains are truly impressive,” said Izaak Breitenbach, CEO of the SAPA Broiler Organisation. “Despite facing numerous challenges, our industry has demonstrated remarkable resilience and innovation.”

Also read: A road map for inclusive growth in the poultry sector

Overcoming Significant Challenges

The South African poultry industry’s success is particularly noteworthy given the substantial obstacles it has navigated:

Energy Crisis Impact: The 2023 loadshedding crisis significantly increased feed milling and hatchery costs, creating operational challenges across the sector.

Avian Influenza Outbreak: A devastating 2023 highly pathogenic avian influenza outbreak resulted in the culling of approximately 3.5 million broiler breeder birds, representing about 45% of the national flock. This led to temporary imports of fertile eggs and higher day-old chick prices.

Economic Pressures: Rising feed costs saw nominal feed prices increase by 26% between 2015 and 2024, while producers also grappled with higher interest rates, rand depreciation affecting imported inputs, and drought conditions that reduced local maize and soybean production.

Import Competition: The industry has also faced challenges from dumping practices that have affected local market dynamics.

Cost Management Excellence

Despite feed prices rising 26% nominally over the past decade, the industry’s efficiency improvements meant that feed-related costs per kilogram of production increased by only 8%. This achievement is particularly significant given that feed and day-old chick costs represent approximately 80% of total production costs.

Also read: When you fail to plan, you plan to fail – SAPA on Poultry Sector Master Plan

The cost of production is now lower than the United States and well below three European benchmark countries, though it remains higher than Brazil, the global leader.

The sector has demonstrated robust growth, with production expanding 11.8% over the past ten years, outpacing consumption growth of 8.8%. This performance reflects sustained investment in genetics, management systems and technological improvements, combined with competitive slaughter and labour costs.

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