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

Broilers in Millions
2013
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
The graph above (Figure 2-2) shows a more indicative picture of the performance over all. It
illustrates the changes in growth rates. The negative percentage change seen below indicates
periods where the growth rate declined (it was not negative, only decreasing in rate of growth). Due
to the positive rate of growth overall, the below (Figure 2-3) gives a clearer picture of periods in
which the industry growth slowed down. As can be seen in Figure 2-3, a slowdown has taken place
recently between 2010 and 2011. One of the potential causes for the erratic growth rates in the egg
industry may be the long turn-around time required to change the number of laying hens in a flow.
I will assess the growth in the egg and poultry industry independently below in order to provide a
greater understanding of the information behind the growth rates shown above.
2.3.3.
Broiler Industry Growth
As noted above, the broiler industry experienced higher growth than the egg industry. Trends can be
seen over the ten year period. These may be useful in understanding the potential growth in the
poultry industry in future, given the business climate in South Africa at present.
Figure 2-3: Broiler Production from 2001 to 2011
1100
1050
1000
950
900
850
800
750
700
650
600
2001 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Broilers Produced
Broiler Chicks Placed
Source: Strydom, 2011
The above table shows increased growth rates between 2004 and 2008. This can be attributed to the
relatively low input costs and a favourable rand/dollar exchange rate (Strydom, 2011). The
slowdown seen from 2008 to 2009 occurred as a result of increasing costs of inputs (such as grain), a
stronger Rand and higher numbers of poultry imports. Despite predictions of a decrease in broiler
12 | 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