The 2019 master plan had reached the end of Phase 1 and Phase 2 was about to be negotiated, SAPA’s Izaak Breitenbach said.
A lot had been achieved but a lot still had to be done, he told journalists at an online event. “We still have an industry with significant problems. And that holds us back from economic growth, job creation and so forth.
“We are a very big industry, we do in the region of R65 billion per annum. This is an industry that employs, at the latest figures, 146,000 people. It’s an industry that’s got the potential to become bigger and contribute to the economy of the country.”
The poultry industry’s top priority for the new master plan would be VAT-free chicken. Removing the 15% value added tax (VAT) from chicken would be a huge benefit to poor people and increased demand could spur 10% growth in chicken production, he said.
The second issue was vaccination against bird flu. The industry wanted to avoid another disaster such as 2023 when bird flu outbreaks cost the industry R9.5 billion, with no government compensation. No vaccinations were taking place because the government had set conditions that were too onerous for poultry producers to meet.
The industry hoped to link the issues of vaccination and compensation for birds farmers had to cull during bird flu outbreaks. Compensation not only allowed farmers to rebuild their flocks, but it was another part of bird flu control measures because it encouraged disease reporting and culling.
Although the High Court had recently rejected the government’s attitude that sick birds had no value, Breitenbach said the government would probably appeal against this ruling.
“We desperately need to get alignment between the poultry industry and the Department of Agriculture on vaccination, and maybe get to an agreement around vaccination, whereby the Minister would agree that if compensation is not paid then we need to vaccinate, and if we are not allowed to vaccinate, then compensation should be paid.
The third priority for the new master plan would be to get the chicken export drive going. Plans to open up markets in the European Union, the United Kingdom and Saudi Arabia had not yet been realised.
Exports were strategically important for the poultry industry.
“We need to increase the value of the carcass by selling cooked breast meat to new markets, and in that way improve the situation for the consumer once again, because we can then subsidise some of the other cuts on the chicken carcass.”
UK authorities were due to visit South Africa next month to audit the country for exports.
“Then we still need to do the European Union, and we need to do Saudi Arabia. We’ve asked for a visit to be organised by Department of Agriculture for producers and departmental staff to visit Saudi Arabia and unblock the process there,” Breitenbach said.
“We will make progress in 2024 in terms of exports.”
