South Africa’s poultry industry is showing strong signs of recovery, with investment in the sector exceeding R2.1 billion between 2019 and 2025 as producers expand production capacity, improve efficiency, and reduce dependence on imports.
The progress was highlighted during the first Economic Oversight Committee meeting between government and industry stakeholders reviewing developments under the South African Poultry Masterplan.
Industry Recovery Gains Momentum
Launched in 2019, the Poultry Masterplan was designed to revitalise the local poultry sector after years of pressure from low-cost poultry imports that had negatively affected local production and investment.
According to South African Poultry Association (SAPA), cooperation between the Department of Trade, Industry and Competition, the Department of Agriculture, and industry stakeholders has helped restore confidence and strengthen the competitiveness of local producers.
Major Investments Drive Expansion
One of the key achievements under the recovery programme has been the establishment of 32 poultry projects, each averaging approximately R45 million in investment.
Combined, the projects are valued at more than R1 billion and reportedly achieved a full success rate. Among the largest developments is the KC Hatchery project, representing an investment of more than R135 million.
The industry has also strengthened production infrastructure through:
- The construction of three hatcheries
- Development of approximately eight egg-laying facilities
- Support for 20 broiler contract farmers
These initiatives have helped improve participation across the poultry value chain while supporting long-term industry growth.
Production and Competitiveness Continue to Improve
Poultry production has increased significantly since the introduction of the masterplan.
Weekly slaughter volumes rose by 26%, increasing from 19.7 million birds in 2019 to 23 million birds in 2025. SAPA said import replacement efforts are beginning to help local producers regain market share while improving operational efficiency.
Chicken meat exports, including fresh, frozen, and processed products, also grew by 9% during the same period.
Challenges Remain Despite Strong Progress
Although the industry has made significant gains, producers continue to face several operational challenges.
These include:
- High feed costs
- Electricity supply disruptions
- Poor road infrastructure
- Port inefficiencies
- Disease outbreaks such as Highly Pathogenic Avian Influenza in 2023
Despite these pressures, poultry remains South Africa’s largest agricultural sector, valued at approximately R74 billion and supporting more than 110,000 jobs throughout the value chain.
The sector contributes:
- 19.1% of South Africa’s total agricultural gross value
- 44.4% of the country’s animal products gross value
Global Competitiveness Strengthens Industry Outlook
Izaak Breitenbach said the industry has reached an important turning point.
According to Breitenbach, South Africa’s poultry sector has evolved into a competitive and growing industry capable of delivering affordable protein to consumers while competing internationally.
A recent study conducted by Wageningen University & Research found that South Africa’s poultry industry is now among the most competitive globally. The report indicated that local producers can produce chicken at lower costs than producers in both the European Union and the United States, with only Brazil achieving lower production costs.
SAPA also noted that South Africa currently records the world’s lowest feed conversion ratio, allowing producers to convert feed into meat more efficiently and further strengthening the industry’s affordability and competitiveness.