Rainbow Chicken, a leading supplier of chicken to major brands such as KFC and Nando's, believes that exports are crucial for the long-term growth of South Africa's poultry industry. The company, in its annual letter to shareholders, emphasized the need for government support to access lucrative foreign markets. According to Pieter Louw, chair of Rainbow Chicken, the industry requires an enabling environment to penetrate international markets and overcome veterinary and regulatory barriers.
The poultry industry in South Africa faces several challenges, including trade policy uncertainty, import controls, and anti-dumping duties. The country's participation in the African Growth & Opportunity Act (Agoa) has come under scrutiny due to deteriorating relations between Pretoria and Washington. Although Agoa has been extended to December 31, 2028, its long-term future remains uncertain. Rainbow Chicken stresses that a fair and predictable trade policy is essential for protecting local production capacity, employment, and food security.
South Africa is a significant importer of chicken, ranking among the top 10 importers of Brazilian poultry. The country's poultry sector is highly concentrated, with four major producers, including Rainbow Chicken, controlling nearly 63% of domestic production. The Competition Commission launched a comprehensive poultry market inquiry to examine potential market distortions and structural barriers across the poultry and egg value chains.
Marthinus Stander, CEO of Rainbow Chicken, highlights the importance of exports for growth, particularly in Africa. The company has invested in quality assurance systems and customer-centered capabilities to meet international standards. Stander emphasizes that the poultry industry is a national asset, supporting food security, employment, and rural economies. Rainbow Chicken is committed to supporting small-scale farmers and promoting broader participation in the poultry value chain.
Rainbow Chicken's growth strategy focuses on integration and development. The company supports small-scale farmers through initiatives that improve access to affordable, high-quality chicks, feed, and technical expertise. These initiatives align with Rainbow Chicken's belief that a sustainable poultry sector must be inclusive, competitive, and capable of supporting national food security and economic development.
The Competition Commission's inquiry noted concerns that vertical integration creates barriers to entry for independent, small-scale, and historically disadvantaged farmers. Pieter Louw emphasizes that transformation must be practical, commercially viable, and supported by coordinated action across the public and private sectors. He believes that integration and scale are central to low-cost, reliable supply, ultimately benefiting consumers and improving food security.
Rainbow Chicken's push for export growth comes as the company reports significant progress in global competitiveness. The industry's advancements have benefited small-scale producers, providing them with access to the same genetics, technical support, and affordable day-old chicks. As the company continues to drive growth through exports, it remains committed to its role in supporting the national poultry sector and promoting food security nationwide.
Key points
- Rainbow Chicken urges government to help industry access foreign markets for long-term growth.
- South Africa's poultry sector faces challenges, including trade policy uncertainty and high concentration.
- Exports are crucial for growth, particularly in Africa, and require government support to overcome regulatory barriers.
