Decline in chicken prices
By Staff Reporter

The South African Poultry Association (SAPA) has reported a decline in the retail price of chicken despite high input costs and last year’s tariff increase on imported chicken.

“The reality is that retail prices of frozen chicken have declined,” said Kevin Lovell, CEO of SAPA.

The lower price will put further pressure on poultry producers, many of which reported lower earnings last year.

“Individually quick frozen portions account for almost 65% of the total volume of chicken sold and our research shows that the prices of these products have not increased at all. This is borne out by the continued low and competitively priced retail chicken. In real terms, chicken prices have actually fallen.”

Lovell said statistics show chicken price inflation continues to lag behind the overall food inflation index, making chicken relatively cheaper over time. This will benefit the consumer “in a big way”.

According to Lovell, broiler producer prices have increased by less than 0,5% since 2008, meaning that poultry producers’ prices have declined in real terms over the past five years.

Looking ahead, Lovell said this situation may change as high maize prices, increased electricity costs, a weak exchange rate and escalating wages make their presence felt in the poultry producers supply chain.


Related Articles >>

Super Zuppa soup

Chinese skottel take-away chicken

Improved outlook for beef production

Shanghai chicken

Tags: chicken, sapa, import tariff
Comment
Be the first to comment on this article
You need to be logged in to comment on articles. If you don't have an account yet, click here to register.

Caxton Magazines encourages freedom of speech and the expression of diverse views. The views of users published on farmersweekly.co.za are their own and do not necessarily represent the views of Caxton Magazines.
Weather
FW CALENDAR
Previous MonthSeptember 2014Next Month
SMTWTFS
123456
78910111213
14151617181920
21222324252627
282930
SAFEX
This week's poll
Have you considered solar for your farm?
Yes
No
Last week's poll
Will you be planting a tree in celebration of Arbor Week?
Yes (58.88%)
No (41.12%)
Yes (58.88 %) No (41.12 %) Yes (58.88 %) No (41.12 %)
Caxton Magazines
Digital Media and Marketing Association (DMMA)
Developed by Digital Platforms
© 2014 Farmer's Weekly Magazine
All Rights Reserved
Terms and conditions
SERVING AGRICULTURE SINCE 1911