Tariff Push Could Drive Up Chicken Prices in South Africa, Sparking Consumer Concerns

South Africa’s chicken industry is urging the government to impose tariffs on imported chicken — a move that could send prices soaring for millions of households. The call, revealed in the Competition Commission’s Poultry Market Inquiry, comes amid growing concern that local producers are struggling to keep pace with rising demand.

Source: engineeringnew

For many South Africans, chicken remains the most affordable source of protein, yet the cost of meat climbed 11.3% as of August. The industry contributes nearly R72 billion to the agricultural economy and sustains around 134,000 jobs, making it a vital pillar of the country’s food system.

Producers argue that tariffs and anti-dumping measures are critical to protect local jobs and shield farms from cheap imports they claim distort the market. But the Competition Commission cautions that such measures could burden consumers, particularly low-income families already grappling with rising living costs.

Four major players — Astral, RCL, Country Bird, and Sovereign — dominate roughly 63% of production. The inquiry will delve into pricing practices, noting that producers often struggle to absorb feed cost spikes but rarely reduce prices when feed becomes cheaper.

Despite setbacks from avian flu and persistent load-shedding, the poultry sector has rebounded, with production reaching about 21.4 million birds slaughtered weekly in 2024. Astral Foods, one of the industry’s giants, has pledged to cooperate fully with the inquiry, emphasizing that it aims to ensure fairness and transparency rather than investigate anti-competitive conduct.