Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda
Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda
Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda
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2013<br />
Research Report: Address<strong>in</strong>g <strong>the</strong> Needs, Opportunities and Challenges <strong>of</strong> <strong>Cooperatives</strong><br />
and Collectively Owned Enterprises <strong>in</strong> <strong>the</strong> <strong>Poultry</strong> and Related Industries<br />
bus<strong>in</strong>esses/cooperatives may be able to do bus<strong>in</strong>ess. However, a large <strong>in</strong>dustry may also <strong>in</strong>dicate<br />
high barriers to entry and a market dom<strong>in</strong>ated by large producers.<br />
The SAPA reports that <strong>the</strong> poultry <strong>in</strong>dustry is <strong>the</strong> largest agricultural sub-sector <strong>in</strong> South Africa<br />
account<strong>in</strong>g for 24% <strong>of</strong> all agriculture production <strong>in</strong> 2011. This figure is supported by high demand for<br />
poultry which has been seen through an <strong>in</strong>creas<strong>in</strong>g demand for eggs and broilers over <strong>the</strong> last 30<br />
years.<br />
The <strong>in</strong>dustry provides an important source <strong>of</strong> prote<strong>in</strong> with <strong>the</strong> poultry <strong>in</strong>dustry produc<strong>in</strong>g 65.5% <strong>of</strong><br />
locally produced animal prote<strong>in</strong>; poultry consumption outweighs all o<strong>the</strong>r animal-prote<strong>in</strong> sources<br />
comb<strong>in</strong>ed.<br />
The specific quantities produced by <strong>the</strong> egg and broiler<br />
<strong>in</strong>dustries are detailed below.<br />
Egg <strong>Industry</strong><br />
405 000 tons <strong>of</strong> eggs were consumed <strong>in</strong> 2011<br />
o This equates to 580.2 million dozen eggs<br />
<br />
Per capita egg consumption <strong>in</strong> 2011 was 137 eggs<br />
Each year <strong>the</strong><br />
average South<br />
African eats<br />
137 eggs and<br />
33.8kgs <strong>of</strong><br />
chicken meat<br />
Broiler <strong>Industry</strong><br />
1 740 293 tons <strong>of</strong> boiler meat was consumed <strong>in</strong> 2011<br />
Per capita broiler meat consumption <strong>in</strong> 2011 was 33.8kgs<br />
Implications for <strong>the</strong> <strong>Cooperatives</strong> <strong>in</strong> <strong>the</strong> <strong>Poultry</strong> <strong>Industry</strong>:<br />
The poultry <strong>in</strong>dustry be<strong>in</strong>g <strong>the</strong> largest agricultural sub-sector <strong>in</strong> South Africa shows that <strong>the</strong>re is strong<br />
demand for its products. The <strong>in</strong>dustry produces <strong>the</strong> largest quantity <strong>of</strong> animal prote<strong>in</strong> thus provid<strong>in</strong>g an<br />
important and cheap food source. Thus, cooperatives who successfully <strong>in</strong>tegrate <strong>in</strong>to <strong>the</strong> <strong>in</strong>dustry will be<br />
produc<strong>in</strong>g a product which is already <strong>in</strong> demand.<br />
2.2.2.<br />
Employment<br />
Due to <strong>the</strong> fact that unemployment is a major issue <strong>in</strong> South<br />
Africa, <strong>the</strong> number <strong>of</strong> jobs that an <strong>in</strong>dustry is able to create is an<br />
important statistic to consider.<br />
The poultry <strong>in</strong>dustry provides direct employment for over 70 000<br />
people and <strong>in</strong>direct employment to an approximate 375 000<br />
people. Statistics South Africa reported that a total <strong>of</strong> 431 664<br />
people were employed full-time and 365 142 people were<br />
The poultry<br />
<strong>in</strong>dustry provides<br />
employment to<br />
421 664 people:<br />
84.3% <strong>of</strong> this is<br />
through <strong>in</strong>direct<br />
and <strong>in</strong>formal<br />
employment<br />
8 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s