Poultry news | Study proves SA producers are among the best in the world

Trained as a microbiologist, Prudence Thuli Mokwene from Soshanguve didn’t set out to become a poultry farmer, but once she did, the owner of RBKM Chickens committed to it with the same focus and determination that had defined her career in science. At the heart of it all is Mokwene’s conviction that success is built step by step – by showing up every day, asking questions and refusing to give up when things get tough. She spoke to Melinda Shaw

By Dr Tracy Davids, Director at BFAP, leading the Commodity Markets and Foresight programme

The Bureau for Food and Agricultural Policy recently updated its competitiveness study comparing South Africa’s broiler industry to its global peers. Mzansi’s producers can take a bow, writes Dr Tracy Davids.

The poultry sector is vital to South African agriculture and food security. Chicken is the most widely consumed meat type in the country and remains the most affordable source of animal protein for many households.

Beyond its importance to consumers, the industry is also a major economic contributor. In 2024 alone, poultry production generated more than R68 billion in gross production value, making it the largest contributor to South Africa’s agricultural sector. Yet its impact extends far beyond chicken production itself. Its highly integrated value chain includes feed-material production, feed manufacturing, breeder operations, broiler production, processing and logistics.

This integrated structure supports more than 50 000 direct jobs and many more across related industries such as feed supply, logistics and processing. The Bureau for Food and Agricultural Policy (BFAP) recently conducted an analysis evaluating the competitiveness of this key industry using data up to end 2024.

In recent years, the sector has faced a series of significant disruptions. Following the signing of the poultry masterplan in 2019, the industry experienced renewed investment aimed at expanding production and improving competitiveness. Shortly thereafter, global shocks began reshaping agricultural markets.

The Covid-19 pandemic disrupted supply chains and drove shipping costs sharply higher due to container shortages. This was followed by the Russia/Ukraine conflict, which triggered volatility across energy, fertiliser and agricultural commodity markets worldwide.

These global pressures coincided with domestic challenges. South Africa experienced severe electricity supply disruptions during 2023, forcing many poultry operations to invest heavily in alternative energy sources to maintain production. A severe drought across key summer-crop regions further intensified cost pressures by pushing feed prices higher at a time when global feed costs were declining.

Despite these challenges, the industry has demonstrated remarkable resilience. Investments made under the masterplan have contributed to meaningful production growth. Over the past decade, domestic broiler production increased by nearly 12%, even as the industry navigated the aforementioned disruptions, rising costs and weather-related challenges.

One of the most notable developments has been the reduction in poultry imports. In 2018, South Africa imported more than 500 000 tons of chicken, with bone-in portions accounting for a significant share. By 2024, imports of bone-in portions had declined dramatically to less than 40 000 tons, reflecting changes in tariff structures, improved competitiveness and stronger domestic production.

As a result, the share of imports in total domestic consumption has fallen from around 24% in 2018 to around 16% by 2024. While this shift highlights the success of local production expansion, it also suggests that opportunities for further import replacement may be more limited going forward.

This changing environment indicates that the industry is approaching a new phase of development. With domestic consumption growth constrained by limited consumer spending power, future production expansion may increasingly depend on export markets. In this context, the ability of South African producers to compete with leading global exporters will become even more important. Consequently, as BFAP recently repeated its assessment of the industry’s competitiveness, which was first completed in 2015 and updated several times since, the focus shifts from an ability to compete with countries that have traditionally supplied exports to South Africa, to benchmarks relative to leading global exporters.

A key measure of competitiveness is technical efficiency, particularly feed-conversion ratios and production cycles. SA performs well in both, achieving some of the lowest feed-conversion ratios among major producers, partly because broilers are raised on shorter cycles and processed at lighter weights. Over the past decade, feed-conversion efficiency has improved significantly, supported by advances in genetics, ongoing evolution of management practices and investment in modern technologies.

Technical efficiency alone, however, does not determine competitiveness. Economic efficiency, particularly the cost of production, remains a decisive factor. Figure 1 on page 41 shows the comparison of primary production costs for 2024. Feed costs are the single largest expense in broiler production and typically account for the majority of farm-level costs.

In 2024 in particular, South Africa’s feed prices were elevated as a result of the drought in the summer-crop production regions, while global prices had declined. Short production cycles and good feed-conversion ratios do mitigate some of this when comparing the cost of feed required to produce a kilo of chicken meat.

Encouragingly, South Africa’s competitiveness in this regard continues to improve and structural changes within South Africa’s agricultural sector may further strengthen feed competitiveness over time. The domestic soya-bean industry has expanded significantly, both in terms of soya-bean production and processing, reducing reliance on imported soya-bean meal.

Imports of soya-bean meal have declined sharply since 2015 and in 2025, South Africa transitioned to a net export position, which it is expected to grow over the coming decade. This development could lower protein costs in feed rations, thereby reducing feed costs and improving the competitiveness of the animal-feed sector.

Another important cost component is the price of day-old chicks. While South Africa remains relatively competitive on a cost-per-chick basis, the country’s shorter production cycle means fewer kilograms of meat are produced per chick compared with some international competitors. As a result, the cost per kilogram of meat can appear higher despite efficient production practices.

Figure 2 (opposite) considers total production cost, including on-farm costs, slaughter costs and carcass yields. It compares major producing countries to South Africa over time, showing the deviation in costs in each country relative to South Africa. In this respect, it is clear that South Africa’s position has improved consistently over time and remains relatively competitive among producers in developed countries.

Production costs here are generally lower than those in European countries, where higher labour costs increase overall expenses.

South Africa has also caught up with the USA, but continues to lag behind Brazil, the largest exporter. Brazil is a major surplus producer of most animal-feed materials, hence its poultry-sector benefits from low feed costs. The large scale of its production systems also bolsters competitiveness.

Looking ahead, the South African poultry industry stands at a strategic crossroads. While domestic production capacity has strengthened and imports have declined, long-term growth will increasingly depend on development of export markets, which in turn makes further improvements in competitiveness even more critical.

Continued improvements in efficiency, a competitive feed sector and an increasingly export-led orientation will remain essential to sustain growth.