The second phase of the poultry master plan framework is taking shape through collaborative action between the government, the industry, and social partners. This will be done with the guidance of the deputy minister of trade, industry and competition, Zuko Godlimpi, said chief director of agro-processing at the department Ncumisa Mcata-Mhlauli.
Mcata-Mhlauli was speaking during the department’s visit to the Rainbow Chicken plant in Rustenburg, North West. She said the department is ready to work with the poultry industry to see the growth of the commodity.
The Poultry Sector Master Plan 2030 was signed off in November 2019 at the second South Africa Investment Conference. Phase one of the master plan concluded in 2023 and aimed to address several serious challenges faced by the poultry industry including high feed costs, export barriers, as well as increasing imports primarily from Brazil and the United States of America.
Growing the poultry industry
According to Mcata-Mhlauli, the second phase of the master plan will mainly focus on growth driven by exports of cooked meat and local demand increase strategies, effective trade measures, biosecurity measures for local and export markets, and transformation of the poultry industry, among others.
“The other focus areas proposed by the social partners include addressing food security and malnutrition; proposal on value-added tax (VAT) exemption for some poultry products, funding and other support for contract farmers and small businesses, with job creation, job-loss mitigation and transformation as cross-cutting themes.
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“The ongoing process to finalise and sign off the phase two framework is being facilitated through the convener’s structure of the master plan and bilaterals with constituencies represented,” Mcata-Mhlauli said.
She also highlighted the department’s role regarding trade support and pointed out its importance towards ensuring the protection of the industry against imports, as well as the promotion of exports.
“It is important for us to engage with the industry on several issues that require collaboration with the department of agriculture, land reform, and rural development. This partnership is essential to provide primary support to farmers, ensuring that there is sufficient production to feed the nation.
“Most importantly, government needs to support the investment efforts of the industry enabling optimal employment of existing capacities created as this will ensure sustainable growth of the industry envisaged,” Mcata-Mhlauli said.
Meanwhile, the department said the poultry industry is the largest contributor to the agricultural sector with a total annual gross value of production of almost R72 billion in 2022, accounting for 17.1% of the total agricultural gross value.
“In the period 2019 to 2023 since the master plan implementation began the aggregate chicken meat inclusive of fresh, frozen, whole and offal displayed a 6% growth in exports,” the department said.
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