Bird flu could increase price of chicken

Over 200 000 chickens were culled in the Western Cape as a result of the recent outbreak of bird flu, said Western Cape Economic Opportunities minister Alan Winde during a press briefing yesterday afternoon.

Bird flu, otherwise known as Avian Influenza, is a disease that materialises in various strains and affects several bird species, including chickens, ostriches, geese, and wild birds.

According to economist Mike Schüssler, ostrich farmers who are affected by this disease will suffer devastating consequences.

“For the ostrich industry, this is a big problem as their products are predominantly exported. They may have to wait a while to export, and this will lead to millions in damages,” he said .

The current strain of bird flu in South Africa, called H5H8, originated in Zimbabwe at the start of June this year. Wild birds then contracted this disease and by mid-June it had spread to Mpumalanga, and it reached the Western Cape in early August.

So far outbreaks have been confirmed at 17 properties in the Western Cape, and 46 ostrich farms have been placed under quarantine.

How will the economy be affected?

Schüssler believes that the South African poultry industry will have to manage this outbreak via containment and later vaccinations.

“The cost for small farmers and producers is a major problem, and some of them will go out of business,” said Schüssler.  

“The bigger players may decrease other costs to stay in the industry, for example by reducing labour. But I think for now the smaller players will be hurt more, as they do not have the finances to make up for a loss of killing say 10 000 birds,” he added.    

Winde announced yesterday that one of his biggest concerns is the impact of this outbreak on the economy.

“At just one farm, 96 jobs are under threat, and two affected poultry farms have also indicated they are considering closing down,” said Winde. 

According to Schüssler, “If we get over a million chickens culled, then South Africa will have a problem and strikes will follow. One day is a hassle, two days are a bigger hassle, and after a week it starts hurting.”

Change in the price of chicken?

Fortunately the price of maize has decreased, which has helped chicken producers lower their prices.

“Maize makes up about 60% of the price, along with soya. With both prices down, South African chickens go for about R26 to R34 per whole bird in big retailers, which is cheaper than last year,” said Schüssler.

Winde is nonetheless concerned that the decreased supply of poultry products may increase prices and put a further strain on households.

Schüssler agreed that if more chickens die, then the wholesale price of a chicken may go up to about R36 per whole bird – an estimated 5.5% increase. 

Are people at risk?

Bird flu does not have an impact on human beings, and there have been no cases of people becoming sick as a result of contact with infected birds.

“Although we have no reported cases of people being infected with this strain of avian influenza, we are urging people in contact with infected birds to take precautions. We need the cooperation of the public to stop the spread of this disease,” said Winde.

Those who have direct contact with bird carcasses, such as poultry workers and abattoir workers, were advised to take extra precaution. 

Winde suggested those who work in this industry should wear gloves or disinfect their hands after handling bird carcasses.

Consumers, on the other hand, should not be concerned because products from grocery stores are safe for consumption.