THE poultry sector could slowly start to emerge from an extended downturn in the second half of this year, making it one to watch for analysts and fund managers.
The industry has been through a difficult few years, weighed down by cheap imports, soaring feed costs, weak consumer demand and impending regulations to cap the levels of brining allowed in frozen chicken products.
Nine smaller producers have either gone under, filed for business rescue or been absorbed by larger companies in recent months. Astral Foods has recently snapped up the assets of two producers at liquidation auctions.
The sector had something of a reprieve last year when tariffs were imposed on imports from most regions — though Europe was exempt due to free-trade agreements. However, the sector has since lobbied for duties on "below-cost" imports from Europe.
The International Trade Administration Commission of South Africa (Itac) sent an investigative team to Germany and the Netherlands between March 26 and April 10 as part of its verification process. READ MORE
Source: BusinessDay
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