Poultry firmly back on the table this Christmas

A year ago, avian flu rocked the local poultry market, casting a shadow over the festive season for millions of households. However, now that the situation has improved,  retailers and exporters are vying to capitalise on the country's Christmas feasting.

Woolworths group CEO Roy Bagattini told Business Times that the retailer was excited to make a quality proposition to consumers when it comes to “what a great Christmas needs to look and feel like, particularly in terms of what’s on the table on Christmas Day”.

“It’s an end-to-end feast if you go into our stores. The stuff that we’ll have, from our gammon to our different types of cakes through to some of our other protein offers, it’s all there. Avian flu did have an effect last year, [but] this year, obviously much, much less so,” Bagattini said.

“And we are aware of people always wanting to try to get into the South African market, but we have a very particular and very specific approach to managing that ... Our chickens are free-range ... they get caught by hand ... they get taken to the chicken plant ... and when they arrive, there’s music, there’s blue light. They are calm, because if they’re stressed the meat is much tougher.”

We are aware of people always wanting to try to get into the South African market, but we have a very particular and very specific approach to managing that ... Our chickens are free-range ... they get caught by hand ... they get taken to the chicken plant ... and when they arrive, there’s music, there’s blue light. They are calm, because if they’re stressed the meat is much tougher

—  Roy Bagattini, Woolworths group CEO

He said that after the birds have been stunned they are air-chilled to prevent rigor mortis. He said a Woolies chicken will always taste different due to the treatment of the chickens. They are grain-fed and are not given routine antibiotics.

Bagattini said Woolworths would have a targeted approach on who it sought to draw to its stores in Christmas week, much like the approach the company took during the Black Friday week in November. The six weeks between the middle of November to the end of December typically make up 25% of the year in revenue generation.

But South African retail companies and poultry producers are not the only ones scrambling to hit tables for this week’s Christmas lunch. Exporters from across the pond want South Africans to consider their options for Wednesday afternoon.

Greg Tyler, CEO and president of the USA Poultry & Egg Export Council, said his organisation and US poultry exporters had a strong appetite for providing poultry to the South African market for the festive season, particularly turkey.

“As far as turkey is concerned, it’s an alternate poultry meat. But a lot of people compare it to, say, a replacement for pork. So, if you look at meat processing, it can lower fat content and it’s a healthier protein source. The turkey industry really pushes that health aspect.”

He said turkey meat provided various meal options for the festive season, including ground turkey, deli meats, and even processed meat.

Izaak Breitenbach, GM for the Broiler Organisation and the South African Poultry Organisation, writing in the organisation's Poultry Bulletin, called for VAT exemption on poultry products. He said their members were doing everything possible to keep poultry prices low and the need for VAT exemption has grown as food prices have risen sharply, both locally and globally.

“While food inflation may be decreasing, prices remain high, and it is unfair that South Africa’s poorest consumers still have to pay an extra 15% on every chicken portion they buy,” Breitenbach said.

“In reality, we know that those consumers often have to make do without, as the VAT-inclusive prices put meat completely out of their reach. The Competition Commission has noted an increase in consumer purchases of VAT-exempt tinned pilchards, which are primarily imported, while chicken remains subject to VAT.”