The chicken industry is experiencing a double blow of losses as a result of rolling blackouts
South African poultry farmers are taking massive losses, and have had to cull millions of chickens because load shedding simply makes it impossible to operate profitably.
Load shedding continues to pose a serious threat to the supply of fresh food to both restaurants and fast-food outlets, not only stifling sales and growth but also causing massive setbacks as suppliers take hit after hit in losses.
This has certainly been the case for those in the chicken industry, especially fast-food joints like KFC and Nando’s.
According to these outlets, they have been receiving reduced stock of chicken from suppliers who are struggling to keep the fridges running and slaughterhouses going with the country’s rolling blackouts, which now last several hours on end.
There’s no shortage of chickens
The irony is that there is no shortage of chickens on the farm.
According to Izaak Breitenbach, the general manager of the South African Poultry Association, there is a secure supply of chickens on the farm.
“We produce ample chicken and there is no chicken shortage. The problem is that even though we have enough chickens on the farms, we can’t get them slaughtered and that has caused the shortages we have seen not only in KFC but also other QSR restaurants and this may spill over into retail and wholesale,” he explained.
Breitenbach went on to explain to The Citizen just how severely the chicken industry was being affected by load shedding, with losses that are sure to suffocate the R1 billion investment that was made into the industry last year, with the expectation that it would grow by at least 10%.
On another Note…
Just when consumers thought it could not get worse, the news comes that chicken and red meat prices will also increase.
Higher chicken and red meat prices are also on the menu for consumers who are already punch-drunk from fuel, electricity, and food price increases. Experts predict a chicken price tsunami, while the foot-and-mouth disease is causing prices to increase due to decreased supply.
According to the SA Association of Meat Importers and Exporters (AMIE), the chicken price tsunami is the result of a perfect storm of inflation, rising costs, and unemployment, as well as a global economy risk to food security.
All these factors will affect consumers’ ability to afford chicken, a vital protein source for low-income consumers after the price of chicken already increased by 10% every year for the past ten years.
Full Articles: TheCitizen: EpicCluckup! and Higher Chicken Prices
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