South Africa’s poultry industry has staged a significant recovery, emerging as one of the country’s most competitive and resilient agricultural sectors following years of decline caused by rising poultry imports and market pressure.

According to the South African Poultry Association (SAPA), the sector’s resurgence was highlighted during the first Economic Oversight Committee meeting between government and industry stakeholders, where progress under the Poultry Masterplan was reviewed.

Introduced in 2019, the Poultry Masterplan was designed to stabilise and rebuild the domestic poultry sector after local producers struggled for years against low-cost imported chicken products that eroded profitability, investment and production capacity.

Investments exceed R2bn

SAPA said coordinated efforts between the Department of Trade, Industry and Competition, the Department of Agriculture and industry stakeholders have helped reverse the sector’s decline.

Between 2019 and 2025, the poultry industry invested more than R2.1 billion into expansion and infrastructure development, while weekly chicken production increased by 26%, rising from 19.7 million to 23 million birds slaughtered per week.

The industry also supported the rollout of 32 poultry investment projects, each averaging around R45 million in value, with total investments exceeding R1 billion.

Among the major projects was the KC Hatchery development, representing an investment of more than R135 million.

Infrastructure growth has included the establishment of three hatcheries, approximately eight egg-laying facilities and support for 20 broiler contract farmers aimed at strengthening inclusivity within the poultry value chain.

Imports decline as local competitiveness improves

Import replacement strategies implemented under the masterplan have started yielding results, enabling local producers to regain market share while improving production efficiency.

The poultry sector currently contributes 19.1% of South Africa’s total agricultural gross value and accounts for 44.4% of animal products gross value.

Exports of chicken meat products — including fresh, frozen, whole birds, cuts and offal — increased by 9% between 2019 and 2025.

SAPA CEO Izaak Breitenbach said the industry has reached a turning point.

“The poultry industry is no longer in distress. It is a globally competitive, growing sector that continues to deliver affordable protein to South African consumers,” he said.

Industry faces ongoing operational challenges

Despite the recovery, the industry continues to face significant operational pressures, including rising feed costs, unreliable electricity supply, deteriorating road infrastructure and inefficiencies at ports.

The sector also absorbed major losses during the outbreak of Highly Pathogenic Avian Influenza in 2023, which disrupted production and supply chains.

Municipal service delivery challenges have further complicated operations for producers across the country.

South Africa ranks among world’s most competitive poultry producers

A 2025 study conducted by Wageningen University found that South Africa’s poultry industry ranks among the most competitive globally.

The report indicated that South Africa has produced chicken at lower cost than the European Union for more than a decade and has now overtaken the United States in cost competitiveness, with only Brazil producing chicken more cheaply.

South Africa also recorded the world’s lowest feed conversion ratio, enabling producers to convert feed into meat more efficiently than international competitors — a key factor supporting affordability and productivity across the sector.