There has been a shortage of chicken in South Africa recently, and it has been linked to power blackouts (also known as “load shedding”) in the country. Major quick service restaurant chain KFC has announced a scaling down of restaurants due to the impact of the power blackouts, and in response to an enquiry, Yum Brands (the parent company of KFC) stated that some of their suppliers have experienced operational disruption due to the load shedding. Consumers have also reported being turned away from some KFC outlets due to the chicken shortage.
The South African Poultry Association (SAPA), whose members are mainly large chicken producers, has said that it is not aware of any shortages, and that poultry sales tend to decline in the festive season but increase again in April/Easter. However, it should be noted that consumers have reported difficulties in obtaining a full chicken at major retailers such as Spar and Pick n Pay, and only being able to find a full chicken at Woolworths.
The power blackouts in South Africa have lasted for over 200 days and are expected to negatively impact the country’s economic growth, leading to a 0.1% growth forecast. A recent survey by Agri Limpopo of the agricultural sector in the province found that 146 out of 154 farmers surveyed were affected by the load shedding. These farmers reported that running generators during load shedding costs them a cumulative total of about R304 855 per day, with each farm’s bill reaching an average of R2 628.
In addition to the financial impact, the power blackouts have also caused biosecurity risks for farmers. Some farmers have noted a lack of electricity as a biosecurity risk, forcing them to deviate from standard operating procedures. One farm reported a mortality rate of more than 2 000 chickens due to the power blackouts, and another had to stop broiler farming because of their inability to raise chicks without heating. Chicken farms are also losing large quantities of chicken each hour spent without heating.
The power blackouts have also created logistical problems for the supply chain, with abattoirs running on limited storage capacity. Head of SA Poultry Association’s broiler board, Izaak Breitenbach, has stated that most abattoirs have only one and a half days’ worth of storage capacity, and that if there is load shedding, the whole supply chain is impacted. It is difficult to get product to the customers and to keep the cold chain intact, which is necessary to maintain the quality of the chicken.
The impact of the chicken shortage and power blackouts on the agricultural sector in South Africa has been significant. Agri Limpopo’s CEO, Deidre Carter, has stated that the sector cannot continue to absorb the costs associated with poor and failing governance, and that the continued sustainability, let alone growth and global competitiveness of the sector, is at stake. The power blackouts have also had a negative impact on other sectors of the South African economy, and there have been calls for the government to address the issue and find a solution to the load shedding.
