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

Million Cases
2013
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
production post 2009, the decrease in price of broiler meat caused a continuation in positive rates of
growth which can be seen into 2011.
2.3.4.
Egg Industry Growth
The egg industry showed less consistent growth between 2001 and 2011. The figure (Figure 2-4)
below illustrates the fluctuations in egg production over this period.
Figure 2-4: Egg Production from 2001 to 2011
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19
18
17
16
15
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Cases of 30 dozen eggs
Source: Strydom, 2011
Over the ten year period the number of eggs produced per annum increased by 5 296 900 cases. The
majority of this increase took place between 2004 and 2007; this was a result of increased demand
and good profit margins in the industry (Strydom, 2011). There is an 18 month time delay in the egg
production process as a result of the time taken to breed and grow laying hens to create a sufficient
laying flock size. The decline seen after 2008 is a result of the economic downswing in 2007.
However, this decrease in supply lead to a price increase and production started to grow again in
response. The increased production seen in 2010 and 2011, however, resulted in an oversupply in
the industry.
2.3.5.
Synthesis
Given that the quantity of broiler meat imports is increasing, the positive growth in rates over the
period is a good indicator of the success of the industry. However, as was highlighted above in the
overview, the low cost of inputs such as feed in other nations is likely to cause an increase in imports
of broiler meat which may hamper the growth of the local broiler industry.
13 | 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