Rainbow Chicken urges export push for poultry growth

Rainbow Chicken, South Africa’s largest poultry producer, has urged the government to help the industry access foreign markets, arguing that exports are the key to long-term growth.

The company, which supplies KFC, Chicken Licken, Hungry Lion, Nando’s, Shoprite, Boxer, Pick n Pay and Spar, among others, said the industry needs the government to create an enabling environment to penetrate the lucrative export market.

Company chair Pieter Louw used his annual letter to shareholders to drive the point home. “South Africa’s next phase of poultry growth will increasingly depend on the ability to export. Expanding export opportunities will require government support to unlock markets and assist with overcoming veterinary and other barriers and regulatory requirements,” he wrote.

“While South Africa has benefited from reduced poultry imports in certain categories, mechanically deboned meat and offal remain structurally important in the domestic market. Trade policy uncertainty continues to be a concern, including import controls, anti-dumping duties, disease-related restrictions, and the future of trade arrangements such as the African Growth & Opportunity Act (Agoa).

Getting wings “Although AGOA has been extended to December 31 2028, its longer-term future remains uncertain. Our view is that a fair, predictable and consistently applied trade policy is essential to protecting local production capacity, employment, and food security.”

South Africa’s continued participation in Agoa has come under scrutiny as the relationship between Pretoria and Washington deteriorates.

US secretary of state Marco Rubio last month announced visa restrictions targeting South Africans the US regards as complicit in uncompensated land seizures, race-based discrimination, or inciting racial violence — talking points pushed by domestic actors such as AfriForum.

South Africa is a major net importer of chicken, ranking in the top 10 importers of Brazilian poultry.

A major complaint raised by agricultural bodies is the billions lost due to state-level administrative delays. Failure to streamline veterinary certification, delayed export approvals and rigorous sanitary protocols keep South African meat products locked out of prospective markets.

Marthinus Stander, CEO of Rainbow, told investors and stakeholders the poultry industry is a national asset as it supports food security — especially in the form of affordable protein — creates employment, sustains small towns and rural economies and supports the agricultural sector by driving demand for maize and soya.

We are proud of the role we play in the sector, not only as one of the largest producers, but also for our targeted efforts on integration and development—  Marthinus Stander, Rainbow CEO

Stander stressed that exports are important for growth. “Africa is a particularly important area as part of our long-term growth ambition outside of South Africa.” The industry has invested in quality assurance systems and customer-centred capabilities “to ensure we meet the standards required in international markets”.

“We are proud of the role we play in the sector, not only as one of the largest producers, but also for our targeted efforts on integration and development. We continue to support small-scale farmers and broader participation in the poultry value chain through integrated initiatives that improve access to affordable, high-quality chicks, feed and technical expertise,” Stander said.

“These initiatives align with our belief that a sustainable poultry sector must be inclusive, competitive, and capable of supporting both national food security and economic development. Following the substantial import replacement since 2018, the scope for further growth through import substitution is increasingly limited.”

The Competition Commission a year ago launched its comprehensive poultry market inquiry to examine potential market distortions, high concentration, and structural barriers across the poultry and egg value chains.

The commission noted that South Africa’s poultry sector is highly concentrated, with Rainbow and three other major producers — Astral Foods, Country Bird and Sovereign — controlling nearly 63% of domestic production. The watchdog raised concerns that vertical integration creates barriers to entry for independent, small-scale, and historically disadvantaged farmers.

Louw said transformation must be practical, commercially viable and supported by co-ordinated action across the public and private sectors.

“While we support the importance of affordability, consumer outcomes, transformation, and fair competition, it is crucial to recognise that integration and scale are central to low-cost, reliable supply,” he said.

“The significant progress made by the industry on global competitiveness also benefits the small-scale producers with access to the same genetics, technical support, and affordable day-old chicks. Ultimately, consumers benefit from an efficient and inclusive industry that improves food security and provides safe, affordable and nutritious protein nationwide.”