May 27, 2022

Mawazo Writing Africa

Writing about the main

Fast food chicken companies mindful of cost-squeeze on consumers amid rising feed prices

South Africans will have to wait and see if soaring poultry prices due to the war in Ukraine will skyrocket their bills when ordering Nando’s, KFC or Chicken Licken.

British media reported fast food this week -Chains like Nandos and KFC in the UK have raised their prices as the cost of raising poultry has skyrocketed as a result of the conflict.

KFC SA told TimesLIVE that it is aware of the increasing financial Everyday pressures are “incredibly aware” on consumers, compounded by rapidly escalating commodity prices.

“Given the size of KFC SA and the strong relationships we have with our supply partners, we are working together to deliver it to strategically manage sudden cost pressures. This means we can continue to offer great value meals at everyday prices.

“Our goal is to work with our partners across our supply chain to ensure we offer our consumers excellent value despite market volatility relationship can offer. said a KFC spokesman.

Chicken Licken declined to comment, while Nando plans to launch its winter campaign before the end of the month.

said Izaak Breitenbach of the SA Poultry Association the price of chicken meat had increased due to rising feed costs.

“Feed accounts for almost 70% of all input costs for the production of a chicken. The feed price is made up of corn and soya. What we have seen since April last year is a significant price increase of up to 20% for corn and soybeans, which has caused chicken prices to rise. Corn and soy prices are at all time highs and are already impacting the price of chicken and I think we are seeing the majority of those price increases in current prices.”

The FairPlay movement, which started in 2016 established to oppose alleged unfair trade practices that are hurting the local poultry industry, has called for the VAT on chicken products to be scrapped.

FairPlay founder Francois Baird said chicken is SA’s most popular and affordable meat protein, particularly for Low-income households.

“Therefore, it is the poor who are most affected by price increases in chicken products. FairPlay first called for certain chicken products to be zero-rated in 2018, when VAT was increased from 14% to 15%. Following presentations by the poultry industry and FairPlay to Parliament and the Woolard Panel set up to examine the elimination of VAT from a number of items, much to our regret, chicken was not on the final list.

< p>“We got this repeated call in March of this year when the first effects of the Ukraine war on food prices became visible. It was clear at the time that food prices would continue to rise due to the effects of the war on grain, fuel and fertilizer prices and supplies. The VAT-free chicken campaign targets the poor – it targets chicken products most commonly consumed by low-income households.

“These are fresh and frozen whole chickens and fresh and frozen mixed chicken portions , such as popular individually quick frozen (IQF) bags. Cooked and flavored chicken and other products favored by more affluent consumers are excluded. Eliminating VAT on chicken products, which are most commonly consumed by poor people, would result in an immediate 15% drop in prices.”

Baird said in addition to public statements, the movement has the presidency in March 2022 and the National Treasury Department detailing the proposal for the zero rating of certain chicken products. “We have had no reply,” he said.

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