Kaya 959 Reporter
Chicken prices are is expected to up in the months to come.
Households and businesses already battling to stay afloat due to increasing living costs have been advised to brace themselves as the cost of chicken products continues to rise.
Marthinus Stander, managing director of RCL Foods’ chicken division, believes that poultry price rises may be unavoidable and that both producers and consumers will be affected by Russia’s ongoing invasion of Ukraine.
According to Stander, the feed accounts for roughly 70% of the cost of producing a chicken, with maize accounting for 60%, soya for 30%, and miscellaneous components accounting for 10%.
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Kaya Biz with Gugulethu Mfuphi spoke to Izzak Breitenbach about what the current situation looks like in South Africa when it comes to poultry prices.
LISTEN TO THE FULL CONVERSATION HERE:
Breitenbach says the poultry market is under tremendous pressure from the current Russia-Ukraine conflict.
“We’ve seen a material increase in the price of maize and soya and as you know about 65-70% of our input costs in terms of chicken would be derived from animal feed, with the biggest component of animal feed would be maize and soya.”
“Ukraine is the net exporter of maize and soya. It is not because we are buying from Ukraine that we are having this issue. It’s because the global market for grains for maize and soya is undersupplied, we are seeing a crop much smaller than we would like to see.” says Breitenbach
Maize and soybeans are two of Ukraine’s most important crops, both of which are essential for poultry feed.
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