Source: Wandile Sihlobo, Agbiz e-newsletter, 15 January 2021, photo credit: Kemin Industries
While 2020 was generally a good year for most of South Africa’s agricultural sector on the back of large production, a few subsectors were slightly under pressure.
The poultry and livestock industries are among such subsectors, in addition to the wine and tobacco industries that were impacted by covid-19 regulations. The higher maize and soybeans prices towards the end of 2020 led to increasing costs for these industries.
For context – roughly 50-70% of broiler production costs in South Africa are attributed to the feed, of which 70-80% comes from maize and soybean costs.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.
