Manuel Mapossa, a small business owner in South Africa who runs a poultry business in Mosselbay, is facing challenges due to the country’s struggle with electricity supply. Load shedding has disrupted his business operations for the past two months, and he had to stop operating to find alternative energy solutions to keep his chickens alive.
Mapossa started his business with his wife, Danisha, with a budget of R5 000, and they have built a reputation for their brand, DeeMap Poultry. However, the power cuts have impacted their reputation and they have temporarily closed their business.
Mapossa is currently window-shopping for solar energy equipment to assist when the power goes off, and he hopes to reopen by the end of the month.
The threat to the poultry industry from electricity shortages and other factors is a threat to the country’s food security as poultry producers supply 66% of South Africa’s meat.
Chicken production is crucial for the country’s food security and low-income households, and a poultry feed shortage may emerge next year, further escalating prices for chicken.
In South Africa, consumers are usually not wealthy enough to afford larger birds, so retailers push for earlier slaughter. The South African Poultry Association’s Izaak Breitenbach says that their normal operation is to slaughter 4 million birds every day, but power cuts by the state-owned utility Eskom have been a disaster and caused disruptions in the butchering process.
This single industry’s impact highlights the huge cost of blackouts for the rest of the country’s economy.
Astral Foods, South Africa’s largest poultry producer, has called for the government to exempt chicken products from value-added tax (VAT).
The company is producing chicken at a loss due to high costs caused by the recent power cuts and rising feed costs. They cannot pass on these costs to consumers who are already struggling with other rising food prices, interest rates, and living expenses. Chicken is the main source of essential protein for many households in South Africa who cannot afford other alternatives.
In the past, Astral was the first company to propose the exemption of chicken from VAT, but the proposal was declined by the government. However, the company is ready to support this initiative if it is revisited.
The South African Poultry Producers and small-scale poultry farmers also support the removal of VAT on chicken products and poultry feed. The DA political party has also called for the zero-rating of bone-in chicken, arguing that it would benefit the poorest 50% of South Africans and ensure national food security.
Source: IOL, News24 & Africa.com
