RCL criticises rebates and market inquiry decisions

RCL said the rebates decision was “concerning” because the poultry industry had taken costly steps to ensure supply. 

“As a result, there was no poultry meat shortage over the festive season and the supply chain is well stocked.”

The investigation into the broiler and layer industries was announced because the Competition Commission had concerns that their concentrated structure might lead to anti-competitive behaviour and increased prices, RCL said.

“We remain of the view that in order to produce the cheapest possible chicken, scale and an integrated value chain are required.

“The poultry industry of South Africa is already internationally competitive; is the biggest segment of South African agriculture; and is a significant contributor to rural development, job creation and food security.”

RCL said the poultry master plan was “progressing slowly, despite significant capacity investment by the industry”. Rainbow and its growers had invested more than R600 million at Hammarsdale to double processing and grow capacity to return the jobs lost in 2017. 

“Greater and more urgent Government support is required to access new markets in line with the Plan,” RCL stated.