Chicken prices do need to increase

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South African chicken prices are set to rise due to elevated input costs, posing challenges for consumers.

According to a fact sheet provided by RCL, it has seen a 13.6% rise in Safex Yellow Maize prices from an average price of R3 852 per ton in 2022 to an average of R4 377 per ton this year. Additionally, the global price of CME Soya rose 12.8% to $449 per ton, while Safex wheat prices increased by 7.2% over the last year to an average price of R6 846 a ton.

Although the chicken business reported an 18.3% rise in revenue for the period to R13.46 billion – supported by strong demand, increased market share and higher prices in the fast-food sector, this was not enough to offset cost pressures in the business. “I think it’s unavoidable that chicken prices will rise, and there’s a couple of reasons for that. First of all, the pressure in terms of the inputs – all the way from farmer level up until processing and manufacturing level – given [high] feed costs, fuel costs and also the impact of load shedding, we definitely can expect it to rise but hopefully not for too long.”

Over the last year, No.11 world sugar prices increased by 9.3% from an average price of US19 cents in FY2022 to US20.8 cents. Safex Sunflower was the only commodity highlighted by RCL Foods that registered a decrease, registering a slight 1.9% decline to R10 266 per ton.

 

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