Lobby group FairPlay has warned that rising diesel and electricity prices are creating serious financial pressure for South Africa’s poultry industry, with possible consequences for food security, employment and the long-term sustainability of the agricultural sector.

FairPlay founder Francois Baird said farmers have already faced major challenges in recent years, including Covid-19 disruptions, failing infrastructure, trade disputes and outbreaks of avian influenza and foot-and-mouth disease.

According to Baird, the latest surge in global oil prices, linked to conflict involving Iran, has pushed fuel prices sharply higher in South Africa during April and May, with expectations that costs will remain elevated for an extended period.Baird explained that diesel is essential across the agricultural value chain because it powers transport, production and distribution.Higher diesel costs therefore increase operational expenses for farmers and ultimately raise food prices for consumers.He argued that urgent government intervention is required to prevent further damage to one of the country’s most important food-producing industries.

FairPlay also raised concerns about additional pressures facing poultry producers, including cheap imported chicken products, bird flu outbreaks and regulations that delay mass vaccination programmes.

The organisation called on government to strengthen anti-dumping protections, simplify bird flu vaccination rules and compensate farmers for chickens culled during disease outbreaks.

The group further criticised the Competition Commission’s poultry market inquiry, claiming it places unnecessary pressure on producers already dealing with rising costs.FairPlay renewed its appeal for VAT-free chicken products, particularly affordable portions commonly bought by low-income households.

The organisation believes measures such as improved infrastructure, lower energy costs, stronger import controls and expanded poultry exports should form part of the revised Poultry Masterplan to protect jobs and stabilise food supplies.