South Africa’s Poultry Industry Rebuilds Strength and Sets Its Sights on Further Growth

South Africa’s poultry industry has undergone a significant recovery after spending almost a decade in serious distress. For years leading up to 2019, declining domestic production and rising poultry imports placed increasing pressure on local producers and weakened one of the country’s most important agricultural value chains. The impact extended beyond poultry farms because reduced production also lowered demand for locally produced grain, discouraged investment and contributed to the loss of employment opportunities. The industry faced growing difficulties in generating sufficient returns to maintain investment while continuing to supply affordable chicken to millions of consumers. The situation created an urgent need for government and industry to work together on a coordinated strategy capable of restoring competitiveness, supporting transformation and protecting the long-term sustainability of poultry production.

A major turning point came in November 2019 when the first Poultry Masterplan was signed, establishing a partnership between government and industry to address the structural problems facing the sector. The masterplan identified the rapid growth of dumped poultry imports from at least ten countries as a major contributor to the deterioration of local production. Instead of relying on one intervention, the strategy adopted a broader approach covering infrastructure and empowerment, domestic market growth, export development, food safety and trade measures. These pillars were intended to improve the competitiveness of local producers while supporting transformation through black economic empowerment. At the same time, the strategy recognised the importance of ensuring that consumers continued to have access to affordable poultry products.

The implementation of the first masterplan between 2019 and 2025 marked an important rebuilding period for the South African poultry industry. Industry participants invested more than R2.1 billion in infrastructure, helping expand production capacity and strengthen operations. Weekly poultry slaughter numbers increased from approximately 19.7 million birds to 22 million birds, representing growth of about 10% over the five-year period. This increase demonstrated that the industry was capable of rebuilding production capacity despite the pressures it had faced before 2019. It also created stronger foundations for further investment and growth across the wider agricultural value chain.

Investment during this period also contributed to transformation within the industry. Twenty-two new black contract growers entered poultry production, creating opportunities for greater participation by black farmers and entrepreneurs. A black-owned hatchery capable of producing 200,000 chicks per week was also established, representing a significant development in ownership and production capacity. Investment in farming operations exceeded R1 billion and contributed to the creation of approximately 2,660 new jobs. These developments showed that the masterplan was not focused solely on increasing production, but also aimed to create opportunities for new participants to benefit from the growth of the poultry sector.

The industry had to manage significant challenges during its recovery, including the devastating outbreak of highly pathogenic avian influenza in 2023. The outbreak caused severe disruption to poultry production and created additional pressure for producers that were already dealing with the operational demands of rebuilding the industry. Poultry producers responded by strengthening biosecurity measures and working to restore production capacity. Growth resumed as the sector adapted to the effects of the outbreak and renewed its focus on both domestic and international markets. The experience also reinforced the importance of disease prevention, surveillance and preparedness as essential components of a sustainable poultry industry.

Food safety and import traceability also received greater attention during the implementation of the first masterplan. Effective monitoring of imported poultry products is important for maintaining food safety and ensuring that imported products are subject to appropriate controls. Improved traceability can also provide greater transparency within the supply chain and help authorities respond more effectively when concerns arise. Strengthening these systems supports both consumers and responsible producers by creating clearer standards for products entering the market. Progress in this area therefore formed an important part of efforts to establish a more reliable and competitive poultry industry.

Trade measures became another important element of the industry’s recovery. Nine anti-dumping measures were implemented during the five-year period, helping create a more balanced competitive environment for domestic producers. Local poultry producers have long argued that unfairly traded imports can place significant pressure on domestic production when imported products enter the market at prices that do not reflect normal competitive conditions. Trade measures can help address these distortions while allowing domestic producers to compete more effectively. At the same time, maintaining a competitive market remains important because consumers need access to poultry products at prices they can afford.

The results of the rebuilding process became increasingly visible as the industry strengthened its position within the agricultural economy. By 2025, poultry had regained its position as South Africa’s largest agricultural industry and remained the country’s leading animal production industry. Industry turnover rose substantially from about R47 billion in 2019 to R74 billion by 2026, reflecting increased production, investment and market activity. The growth indicates the scale of the industry’s contribution to the economy and the impact of restoring productive capacity. It also demonstrates how coordinated interventions can support recovery in a major agricultural value chain when government and industry commit to shared objectives.

The influence of poultry production extends far beyond farms and processing facilities because the industry is one of the country’s largest consumers of grain. Poultry production requires significant quantities of feed, particularly maize and soybeans, linking the performance of poultry producers directly to grain farmers and feed manufacturers. The industry now consumes nearly 60% of South Africa’s maize production and approximately 90% of its soybean production. When poultry production increases, demand for these agricultural commodities also rises, creating additional economic activity throughout the grain value chain. Transport companies, feed manufacturers, agricultural suppliers, retailers and other businesses can also benefit from increased activity generated by a growing poultry industry.

This relationship between poultry and grain production highlights the importance of viewing agriculture as an interconnected system rather than a collection of separate industries. Strong poultry demand creates a market for grain producers, while reliable supplies of competitively priced feed support poultry producers. Feed costs are an important component of poultry production costs, meaning that efficiency across the grain and feed value chains can influence the competitiveness of chicken producers. This interdependence means that decisions affecting poultry production can have consequences for farmers and businesses operating much further upstream and downstream. Strengthening cooperation across these connected industries will therefore remain important as South Africa seeks to expand agricultural production and improve food security.

The progress achieved under the first Poultry Masterplan has created the foundation for a new phase of development. In 2026, government and industry signed the second Poultry Masterplan, setting out an ambitious vision for continued growth and competitiveness. The new strategy places greater emphasis on increasing domestic poultry consumption through coordinated public relations and consumer communication campaigns. Expanding the domestic market can provide producers with stronger demand and create the conditions needed for further investment in production capacity. A larger and more stable market can also support employment growth and increase demand for agricultural inputs such as maize and soybeans.

Export development is another major priority under the second masterplan. The industry plans to initially target markets such as the United Kingdom, the European Union and Saudi Arabia before expanding into additional international markets. Greater access to international markets could provide South African poultry producers with additional sources of demand while reducing dependence on the domestic market. Export growth also requires producers to meet strict international standards relating to food safety, animal health, traceability and production practices. Building the industry’s export capacity can therefore encourage further investment in quality systems and strengthen South Africa’s position in global agricultural trade.

Disease prevention will also remain central to the industry’s future. The second masterplan aims to vaccinate at least 70% of long-living poultry to reduce the risk posed by another major avian influenza outbreak. The devastating experience of 2023 demonstrated how quickly animal disease can affect production, supply chains and business operations. Increased vaccination coverage, stronger biosecurity and effective disease monitoring can help reduce the risk of future disruptions. Protecting poultry health is therefore not only an animal welfare issue, but also an economic priority for farmers, processors, workers, consumers and businesses throughout the agricultural value chain.

The new strategy also intends to maintain trade measures that have helped create a more level international playing field for local producers. At the same time, preferential market access for poultry imports from the United States is being reviewed to assess whether existing arrangements provide fair conditions for South African producers. Trade policy must balance several competing considerations, including consumer prices, domestic production, employment, international agreements and the long-term sustainability of local industries. Maintaining fair competition is particularly important for an industry that supports thousands of jobs and generates significant demand for agricultural commodities. The review therefore forms part of a broader effort to ensure that South African producers can compete while consumers continue to benefit from access to affordable poultry.

South Africa’s poultry industry has also gained recognition for its international competitiveness. The country is regarded as one of the world’s competitive poultry producers, with Brazil consistently identified as the only major producer that can produce chicken at a lower cost. This position provides an important foundation for the industry’s export ambitions and demonstrates the potential of local producers to compete beyond the domestic market. However, maintaining competitiveness requires continued investment in production efficiency, animal health, infrastructure, skills and technology. It also requires close cooperation across the agricultural value chain because poultry producers depend on competitive feed supplies and reliable services.

The next stage of development will ultimately depend on maintaining the balance between affordability and sustainable industry growth. Chicken remains an important source of protein for South African households, making consumer affordability a central consideration in the industry’s future. At the same time, producers need sufficient returns to invest in farms, processing facilities, biosecurity, technology and expansion. Increasing domestic consumption can help create the demand required to support higher production volumes and further investment. If managed effectively, this cycle can contribute to job creation, stronger grain demand, increased agricultural investment and improved food security.

The recovery of South Africa’s poultry industry demonstrates what can be achieved when government and industry work together around clearly defined objectives. The first Poultry Masterplan helped address major challenges through investment, transformation, market development, food safety improvements and trade measures. The progress made since 2019 has strengthened production, created jobs, increased investment and reinforced the industry’s connections with the grain sector. The second Poultry Masterplan now provides a framework for building on these gains through stronger domestic demand, expanded exports, improved disease prevention and continued attention to fair trade. If these ambitions are successfully implemented, poultry can continue to serve not only as South Africa’s largest agricultural industry but also as a major contributor to employment, food security, rural development and broader economic growth.