Broiler chicken distributor expands African operations

Ross Breeders Africa, the distributor for Ross broiler chickens on the African sub-continent, will expand its operations in Zambia for the Ross 308 broiler chicken. This expansion will include the creation of a new broiler hatchery, additional breeder houses, a new grandparent farm, staff housing and ancillary buildings.
The $17 million expansion will be finalized in stages, with the hatchery completed by October 2013 and the grandparent farm and parent breeder houses completed by the end of 2014. This project will create 200 jobs in the poultry sector and increase export revenues.
The new broiler hatchery will be located on the main breeding farm near the town of Chongwe.
The building is designed for six hatches a week, rather than the conventional four, resulting in the hatching of one million day-old broiler chicks per week. Once the hatchery is completed, extra breeder houses will be installed, tripling the production capacity of Ross Breeders Africa.

South Africa accuses Brazil of chicken dumping

South Africa has accused Brazil of flooding its market with cheap chicken, damaging the domestic industry as Brazil's imports have increased by 40 percent in the last year, according to reports.
More than 1 billion chickens are consumed annually in South Africa, and the poultry industry employs more than 48,000 people directly and 60,000 more indirectly. Specialists have said that 3,000 jobs could disappear due to the sudden influx of Brazilian poultry. In 2011, 60 percent of all chickens imported to South Africa came from Brazil. “There is too much chicken floating around in South Africa, so there’s a depressed market and the prices are unnaturally low,” said Kevin Lovell, CEO of the South African Poultry Association. "[South African] companies are either running at a loss or very close to doing that at present with the current pricing levels.”
Brazil has gone to the World Trade Organization over the accusation. "It is a big deal for us as Brazilians," said Pedro Luiz Carneiro de Mendoca, Brazil's ambassador to South Africa. "We are not dumping [chickens], we are not undercutting. If we don't take any action, we will be saying other countries are right in accusing us of dumping." Overall trade between South Africa and Brazil has quadrupled since 2001.

South Africa confident Brazil will not go to World Trade Organization over poultry tariffs

South Africa does not believe Brazil will go to the World Trade Organization over its decision to impose higher tariffs on some poultry imports, and that there's "no big crisis" with Brazil on poultry, according to South Africa Trade Minister Rob Davies.
Brazil's poultry association has said that it would ask the government to approach the World trade Organization about import charges of 6 percent to 63 percent that South Africa imposed on Brazil's exports. Initial information showed that Brazilian producers were dumping products in South Africa and neighboring countries, according to legal representation for the South African Poultry Association.

South Africa poultry producers call for increased tariffs on Brazil chicken

South African poultry producers are calling for an increased import duty on Brazilian chicken, by 3 rand (US$0.38) per kilogram, according to reports.
Importers currently pay a 27 percent customs duty on whole chicken and 2.20 rand per kilogram on boneless cuts. The requested import duty increase would raise the price of whole, imported Brazil chickens by 29 percent and boneless cuts by 15 percent.

South Africa poultry prices to rise in spite of grain surplus

Poultry prices in South Africa are likely to rise 15% by the end of 2011 on increased input costs, in spite of a current grain surplus, according to Kevin Lovell, chief executive of the Southern African Poultry Association.

The country currently has a 2-million-ton surplus of grain, but white and yellow maize futures, which Lovell said follow the U.S. pricing structure, have been rising. SA Futures Exchange white maize prices for July increased to ZAR 1,675 (US$246.99) a ton in May 2011, from ZAR 1,140 (US$168.10) in May 2010 — a 32% increase. The July contract for yellow maize rose by 31% to ZAR 1,720 (US$253.62) a ton from ZAR 1,190 (US$175.47) in May 2010.

According to experts, the surplus will still allow South Africa prices to remain lower than those of other countries who must rely on grain imports for their poultry feed.

South Africa poultry production to rise 32% by 2015

According to the latest report from Market Research, "South Africa Agribusiness Report Q1 2011," South Africa's poultry production is expected to grow 32% in the five years to 2015.
Poultry consumption is predicted to grow 22% to 2015, a lower growth level than originally expected. Consumption growth, according to the report, has been negatively affected by the country's recent rise in unemployment, but long-term consumption demand will be fueled by rising incomes, a fall in the unemployment level and an increasing prevalence of fast food outlets.

South Africa poultry producers may bring anti-dumping case against Brazil

The South African Poultry Association is looking into bringing an anti-dumping case against Brazilian chicken imports, saying that some products are selling for a third of what they're selling for in their country of origin.
In particular, Astral Foods Ltd. is concerned that unfair imports could hurt company profits. According to CEO Chris Schutte, 2010 average broiler prices were the lowest in four years even though per capita consumption rose. Gains in the value of the South African rand have also made imports more competitive. “The strong rand is playing havoc,” said Schutte. "The currency has gained about 38% in the past two years to 7.29 against the dollar."

South Africa strives to improve poultry welfare

Recent allegations of animal welfare irregularities by a poultry breeder serving the egg farming industry in South Africa have led to widespread concern about poultry farming practices. In response, the Southern African Poultry Association has embarked on a number of actions aimed at reducing the chance of any such irregularities taking place.
According to Kevin Lovell, CEO of SAPA, association members agree to adhere to SAPA's Code of Practice, a series of guidelines and principles developed according to international standards. He stated that one issue of concern to many South African producers is that there is no economic use for male birds in an egg farming business.
Lovell says that local producers acknowledge that no country has yet found a satisfactory solution to the problem.
"Research being done in Australia and the USA seeks to alter the sex ratio of hatching eggs so that fewer male layer birds are produced. We welcome this research and hope that it will be successful and that the methods used will be considered acceptable by all parties," he says.