In its results statement, Rainbow expanded on some of the challenges facing the South African poultry industry.
In particular, it highlighted the concessions the United States is demanding in negotiations over a trade deal with South Africa, and the poor state of South Africa’s transport infrastructure.
Rainbow described as “a major concern” the 30% US tariffs imposed on South Africa, with the US demanding an extension of the 72 000-tonne annual import quota free of anti-dumping duties, as well as self-regulation on its bird flu status.
In an interview after the results announcement, Rainbow CEO Marthinus Stander called for the quota to be scrapped, News24 reported. He said President Trump’s tariffs had rendered the quota agreement “null and void”. Stander added that the poultry sector was willing to help negotiate a favourable trade deal for itself and other South African industries.
The company welcomed the government’s decision to allow vaccinations against bird flu, but said the monitoring requirements remained expensive. These requirements were “likely to add significant cost to the production of chickens”.
The industry was working with the department of Agriculture “to find a more realistic and affordable way to implement an effective large-scale vaccination strategy”.
While the industry had invested in additional capacity in terms of the poultry master plan, Rainbow said poultry producers were still awaiting government support to enable “meaningful” chicken export volumes.
Rainbow noted the urgent need for business and government to improve the country’s freight logistics network and enable a competitive supply chain. It said the inefficiency of South Africa’s rail system was a major impediment to lower cost distribution of raw materials such as maize, which is a major component of chicken feed.
“The poultry industry remains a national asset, driving growth in agriculture due to demand for maize and soya. It is a bastion for overall food security and job creation in rural South Africa, while providing sustainable opportunity for meaningful transformation,” the company stated.
