Poultry market dynamics
There has been a rapid increase in poultry prices around the globe as demand was strong on the back of a robust post-COVID recovery in the developed world. Disease outbreaks in key exporting countries also curbed supply and trade. Analysts are however expecting global poultry production and trade to expand during 2023, which could weigh on international prices. In the South African context, poultry product prices have recorded rapid price runs over the past years. This was underpinned by the mentioned higher global prices, depreciating exchange rates, and a substantial increase in production costs. Looking Ahead
With global prices expected to come down, local price growth over the coming months could slow but will most likely be supported by a weak ZAR. This will be amplified by higher production costs and lower production associated with load-shedding, specifically. This should however be seen in the context of declining red meat prices which would limit the degree and rate with which poultry product prices can increase over the coming months.
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