Chicken: the economical choice in South Africa

This is in spite of weaker profits forecast by Rainbow Chicken owing to increased feed prices. Rainbow, the largest chicken producer in South Africa, said red meat prices had increased significantly and chicken represented a more economical protein source.

Rainbow Chicken’s profit growth for the full year to March 31 next year is forecast to be lower than the 13.7% growth experienced up to the end of September. The weaker rand is also expected to affect imports.

Group revenue, which increased 13,7% to 2.2 billion rand (236.5 million euro), benefited from animal feed subsidiary Epol and Vector Logistics’ higher external volumes. Chicken revenue, which made up nearly 80% of total revenue, increased 11,8% to 1.73 billion rand (186 million euro).

Rainbow’s average price increase was 5.5%, while chicken volumes were up 6.3%.

Chicken imports have risen 77% during the six-month period in spite of the weaker rand.