Avian influenza containment crucial for poultry markets

Recent reports published this week from some of South Africa' largest poultry producers and industry bodies have confirmed a second outbreak of highly pathogenic H5N8 avian influenza at one of its Standerton breeding farms in South Africa's Mpumalanga province.

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