Households and business owners who are already struggling to stay afloat because of the high cost of living, should brace themselves as the price of chicken products keeps rising.
While township businesses have already started to feel the pinch of the chicken prices that have been on a steady rise in the past few years, experts have warned that chicken, which is the most affordable protein for most households, could soon become an expensive commodity.
The SA Association of Meat Importers and Exporters (AMIE) has blamed rampant inflation, global food and commodity shortages, the escalation in fuel, transport and electricity costs and increasing trade tariffs for what it called “a chicken price tsunami”.
The price of chicken has already increased by 11% between March 2021 and March 2022, on the back of a steady 10% annual increase over the past 10 years, according to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD).
The AMIE is now pushing for the removal of trade tariffs and removal of VAT on poultry products as they say this could translate into a 33% decrease in prices.
AMIE CEO Paul Matthew said while chicken was the primary and most affordable source of protein for SA consumers, they would soon be unable to afford it if there was no intervention by the government.
“As a country we have to do everything possible to arrest poultry price increases, and the quickest and most effective way to do this is for the government to give the consumers relief by placing a three-year moratorium on imported poultry tariffs, and the removal of VAT on poultry products,” Matthew said.
According to Matthew “two years ago, a chicken leg quarter cost R24 at wholesale level and excluding 15% VAT. Today, that same piece of chicken is R31, a 40% increase.”
Matthew said the organisation had formally called on the government to consider its proposals.
“We are engaging with the department of trade, industry and competition and hope they will view this recommendation in a positive light,” he said.
Samkelo Radebe, manager of Chilli Pepper restaurant in Diepkloof, Soweto, said the restaurant was recently forced to increase its chicken food product prices by 28% in response to the escalating chicken prices.
“We have been working at a loss after the lockdown but did not increase prices just to keep our customers, but we decided to increase it by 28%. We have got other partners that we work with, including Mr Delivery who take 28% off our food in each and every food item they deliver,” he said.
He said the move saw some of the customers turning their backs on the establishment but this was cushioned by its strong loyal customer base. After the 28% increase, a full chicken now cost R110, a half chicken R75 and a quarter now costs R49. This was up from R89.90, R55.80 and R29.90 in 2020.
Radebe said the restaurant was forced to stop working with its longtime chicken supplier after it increased prices twice in two years.
“We are selling the most expensive plates and kotas here in the township because we specialise in chicken. The business is mainly controlled by chicken and if we don’t have it, we don’t have a business,” Radebe said.
One of the customers, Babalwa Mayo, said even retailers had increased their chicken prices and made it unaffordable.
“It is difficult to get used to these prices and I understand why many people complain, but even ordinary chicken at retail shops is very expensive now,” Mayo said.
Umoya Meat Importers MD Grant Hendricks said his business largely sold chicken products to the lower end of the market.
“I’ve seen how consumers in townships are increasingly struggling to afford chicken. While their wages stay the same, or decrease, they are finding it increasingly difficult to put nutritious food on the family table,” Hendricks said.
Lawrence Ravele owns six Machecks Chicken restaurants in Soweto. He says while his businesses had enjoyed good patronage since he started the franchise in 2016, he has been forced to increase prices of late.
“Even today I received a message from suppliers saying the prices are going up. This year already they increased the price twice and we have been forced to increase prices as well,” he said.
Ravele said he has been forced to retrench some of his employees across his restaurant as he could no longer afford them, adding that he was planning to increase prices again this week.
“We cannot keep all of them [workers] in the shops at the end of the day because we cannot afford to pay them. This Friday I must increase prices,” he said.
One of the operators of Moja Chicken in Jabulani, Mpho Mothobeki, said the restaurant had been forced to increase its prices three times since its establishment in 2019 in a bid cover the cost of doing business.
“People buy chicken a lot here because they love it, it is cheaper and you can do anything with it, but we have no choice but to increase the prices,” Mothobeki said.
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