South Africa’s poultry industry has overtaken the United States in global efficiency, according to the Bureau for Food and Agricultural Policy’s (BFAP) 2025 Competitiveness Benchmark Report.
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123RFWhile South Africa is not the world’s largest producer, it now ranks among the most efficient in the world, outpacing the United States in feed conversion and production cycle speed.
Despite rising feed costs, drought, bird flu outbreaks, and energy challenges, the sector now boasts the lowest feed conversion ratios and fastest production cycles among major producing nations, reflecting sustained investment and innovation.
Efficiency gains lead the way
"South Africa remains one of the most technically efficient poultry producers globally. The report finds that the country achieved the lowest feed conversion ratio among all major producing nations assessed, including the Netherlands, Germany, Poland, the United States, and Brazil," says Izaak Breitenbach, CEO of Sapa’s Broiler Organisation.
South African producers now use less feed per kilogram of chicken than international competitors. The average production cycle stands at 31.5 days, the shortest among benchmarked countries, while carcass weights have grown 4.5% over the last decade. Feed conversion efficiency improved 14.1% through advances in genetics, management, and technology.
“Input costs account for approximately 70% of the cost of rearing a bird; as such, feed costs remain the dominant driver of overall production costs, but the report highlights that efficiency gains have mitigated much of the impact of price volatility,” Breitenbach added. Although feed prices rose 26% between 2015 and 2024, the feed cost per kilogram of chicken increased by only 8% because of improved efficiency.
While South African production costs remain higher than Brazil’s, they are now below US levels and significantly lower than European benchmarks, despite subsidies abroad. Feed costs are expected to decrease further as local soybean processing improves.
Industry resilience tested
The report notes that the industry has weathered major challenges. Loadshedding in 2023 raised feed milling and hatchery costs, the 2024 drought reduced maize and soybean output, and the 2023 bird flu outbreak led to culling 3.5 million breeder birds. Housing and capital costs increased amid higher interest rates and Rand depreciation. “Despite these pressures, the broiler industry maintained production growth and preserved its competitiveness,” Breitenbach said.
Over the past decade, production grew 11.8%, outpacing consumption growth of 8.8%. BFAP says future expansion will increasingly depend on export opportunities, supported by moderating feed prices and improved macroeconomic conditions.
“South Africans can be proud that their poultry industry is the second most competitive poultry producer in the world. All it needs now is Minister Steenhuisen’s assistance with the facilitation of exports and bird flu vaccinations – that is the only way the local industry will improve its competitiveness,” Breitenbach concluded.
