Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

2013
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
clearly shows the higher cost of feed in South Africa. Due to the fact that feed is the primary input
into the industry this has a large knock on effect of increasing the costs of production domestically.
Table 2-2: Grain prices per ton: comparison of USA, Brazil and South Africa
Country Maize (US $ per ton) Soya Bean Meal (US $ per ton)
USA 262.35 433.42
Brazil 243.65 458.80
South Africa 301.05 530.90
Source: South African Poultry Association, 2012
According to SAPA, South African poultry exports “promise a window of opportunity for the sector”
(SAPA, 2011: 11). However, this is limited by the sanitary standards set by large markets which are
unobtainable for South African producers.
Globally (of 204 countries listed in 2011 data), South Africa is ranked 10 th for broiler meat production
with a market share of 1.7% and 26 th for world egg production with a market share of 0.7%.
2.3. Industry Growth
The growth or decline of an industry from year to year is one of the most telling factors about its
performance. The statistics below will show that there has been a positive rate of growth from year
to year in the poultry industry. The above information regarding imports and exports does, however,
present a threat to this growth.
2.3.1.
Industry Growth Rates
In the most recent statistics, for the year 2011, broiler and egg
production showed positive rates of growth:
In 2011 the egg industry grew by 4.6%. In the Industry
Profile for the year, SAPA remained optimistic on the
growth rate, predicting continuous growth rates in the
coming years.
The egg
industry
grew by
4.6% and
the broiler
industry by
1% in 2011
Growth in the broiler meat industry in 2011 was not as high at around 1%. However, the
figure remains positive, especially given that there was a 32% increase in competing broiler
meat imports during the same period.
Between 2001 and 2011, as illustrated in the graph below, both the egg and broiler industry
maintained positive growth rates (Strydom, 2011). The broiler industry showed higher rates of
growth with the egg industry growing only marginally over the period. This can be seen through
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