Avian influenza containment crucial for poultry markets

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Last month, South Africa’s agricultural department confirmed four outbreaks of avian influenza, placing the farms under quarantine and stopping the movement of chickens and chicken products onto and off the farms in an effort to prevent it from spreading. Poultry destined for exports now have to be absorbed in the South African market, which may also weigh in on prices.

The Department of Agriculture, Forestry and Fisheries (Daff) has reported that export of chickens has been banned and trading partners have been informed of the current situation. Production costs may increase due to the added biosecurity measures and production losses. As a result, poultry producers may also start to demand higher prices.

Average poultry prices over the past week were mostly lower. The average prices for frozen birds were 0.36% lower at R25.57/kg during the week. Whole fresh medium bird prices were 0.28% lower at R25.30/kg, while IQF prices were 0.13% higher at R23.30kg. – Absa Agri trends