The poultry industry has warned that prices are likely to escalate in the coming year, with indications that international prices will be higher than they have been over the past few years.
Kevin Lovell, the chief executive of the Southern African Poultry Association, said even though there was a surplus of grain, which is used in chicken feed lots, poultry prices would rise because the grain industry follows the US pricing structure.
“We must remember that maize is traded as a futures contract based on import parity and export parity,” he said.
Although prices were going up, if there was a shortage, prices would be much higher. Input costs had increased sharply and the industry, as well as retailers, should be raising prices. Lovell indicated that prices were likely to increase by 15 percent.
At retail level, most frozen chicken was currently sold at R16 to R18 a kilogram, and fresh chicken was sold at R25 a kilogram, Lovell said.
Poultry price increases were not unique to South Africa, and prices were set to be even higher in other countries, which were dependent on imported maize.
Lovell criticised the US role in grain productions, arguing that its policy on biofuel was a crime against humanity because it used more grain for fuel than Africa used for food.
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