South Africa poultry prices may increase 20% in 2012
Holiday prices expected to rise by 10%
South Africa poultry prices are expected to rise by 10% in December due to demand and may jump by an additional 20% in the new year as poultry feed input costs continue to rise, according to the South Africa Poultry Association.
Imports of duck, turkey, guinea fowl, geese and special chicken cuts may help offset the holiday increases, but local producers continue to struggle, according to reports. “The real problem is that maize import prices are not determined by local production costs," said Kevin Lovell, chief executive of the SA Poultry Association. "They are determined by the U.S. Chicago Board of Trade. We are expected to run out of maize...and we will pay R1,000 per ton (US$117.77) more than export parity prices.” At least 143,000 tons of white maize and 60,000 tons of yellow maize will need to be imported this season, according to reports.