Municipal failure drives up production costs for poultry farmers

With six days to go before the local government elections, poor municipal infrastructure and unreliable water and electricity supplies are increasing production costs for South African poultry farmers,

At a webinar hosted by the FairPlay Movement, stakeholders said not having stable service delivery threatens the industry’s competitiveness, food security and rural employment.

The discussion highlighted the consequences of failing municipal services for agricultural production, particularly in rural areas where poultry farms depend on reliable infrastructure to maintain animal welfare, protect production, and supply affordable protein to consumers.

Ripple effects of no service delivery

Izaak Breitenbach, general manager of the broiler organisation at the South African Poultry Association (SAPA), said infrastructure failures are undermining an industry that had invested heavily in technology to improve efficiency and competitiveness.

“Feed cost is obviously heavily impacted by infrastructure. Then we have non-feed costs, including facilities, infrastructure and consumables. That is where the concern lies. We are already being impacted by the lack of service delivery, and, in our opinion, this will get worse,” he said.

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Infrastructure failures threaten poultry production

Breitenbach explained that poultry production had become increasingly technology-driven, with modern chicken houses relying on computerised systems to regulate temperature, oxygen and carbon dioxide levels.

A typical poultry house costs approximately R6 million to build, he noted, making reliable electricity and water essential to protecting farmers’ investments.

“You can just imagine what the impact of a one-hour power failure would be in a sealed chicken house with computer-controlled systems,” he said, adding that water shortages during South Africa’s high temperatures could also have serious consequences for birds.

He further explained that poultry production takes place largely in rural areas, while large abattoirs that consume substantial amounts of water and electricity are often situated closer to urban centres. This exposes producers across the value chain to different infrastructure challenges.

Between 5% and 10% of South Africa’s chickens are produced by approximately 800 small-scale farmers, according to Breitenbach, making service delivery particularly important for smaller producers.

Francois Baird, founder of the FairPlay Movement, stressed that poultry farming is far from an easy business, despite common perceptions.

He warned that infrastructure failures also affect food prices and rural jobs, as additional production costs put pressure on an industry that supplies affordable chicken to consumers.

Poor services impact wider agricultural sector

Thabile Nkunjana, an agricultural economist at the National Agricultural Marketing Council (NAMC), said infrastructure constraints extend beyond poultry production to other agricultural commodities and affect the country’s export ambitions.

He pointed to the importance of reliable roads for transporting fresh produce, explaining that poor road conditions could damage tomatoes during transit and increase costs for farmers.

Nkunjana also raised concerns about water quality, particularly where infrastructure failures and leakages could expose agricultural producers to contaminated water. He highlighted the importance of consistent access to safe water for livestock production and hygiene.

“Clean water is essential. You cannot produce healthy animals if you are supplying them with contaminated water.”

Thabile Nkunjana

Nkunjana argued that stronger collaboration between government and the private sector could help address infrastructure gaps and support farmers seeking to expand production and access markets.

Christopher Campbell, chief executive officer of Consulting Engineers South Africa, called for municipalities to prioritise infrastructure maintenance, reliable basic services and technical competence.

He argued that local governments should focus on preserving existing infrastructure rather than concentrating primarily on new projects.

“We need to preserve what we have for as long as we can, because we are simply not going to have the capital,” he said.

Campbell also called for greater financial transparency, stronger accountability and suitably qualified technical personnel in municipal departments.

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