Required Report - public distribution

**Date:** 8/31/2004

**GAIN Report Number:** SF4033

SF4033

**South Africa, Republic of**

**Poultry and Products**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Scott Reynolds

U.S. Embassy, South Africa

**Prepared by:**

Herman Germishuis

**Report Highlights:**

Broiler production reached 808,000 tons in 2003 but a small decrease in
production is foreseen for 2004. This is mainly due to increased import
competition brought about by the strong SA rand. The exchange rate,
currently about R6.68 to the Dollar after a 2002 average of R10.52 was
recorded, is putting pressure on domestic prices, which is influencing
expansion plans.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Pretoria \[SF1\]

\[SF\]

**Table of Contents**

**Summary 2**

# Poultry meat, broiler 3

**Production 3**

####### Consumption 5

**Trade 6**

**Health 9**

# Poultry meat, turkey 10

# Summary {#summary-1}

South Africa's broiler production in 2003 is estimated at 808,000 tons,
6.3% more than in 2002. A small decrease in production is expected for
2004 as imports increase due to the strong SA Rand. Total broiler meat
imports reached about 50,000 tons in 2003. MRM (Mechanically Removed
Meat) and offal imports amounted to about 75,000 tons for a total of
125,000 tons. In contrast total imports amounted to about 80,000 tons in
2002 and 64,000 tons in 2001. The following table contains the type of
product imported over the past three years:

  ----------------- ----------------- ----------------- -----------------
  Metric tons       2001              2002              2003

  Whole birds       2615              6953              8104

  Boneless cuts     8473              5098              11489

  Bone in cuts      6003              11737             30544

  TOTAL MEAT        17091             23788             50137

  MRM               33079             37130             47086

  Meat + MRM        50170             60918             97223

  Offal             13387             19516             28204

  GRAND TOTAL       63557             80434             125427
  ----------------- ----------------- ----------------- -----------------

Imports are currently still increasing but the anti-dumping duty on US
bone in cuts is only due to be lifted in July 2005 when the US will
again be able to compete. Brazil, China and Canada are currently the
main suppliers.

US Dollar 1 = SA Rand 6.68 (08/31/04)

# Poultry meat, Broiler

  -------------------- ------------- --------- --------- ---------- --------- ----------
  **Commodity**        **Poultry,                                             
                       Meat,                                                  
                       Broiler**                                              

  1000 Metric ton      2003          Revised   2004      Estimate   2005      Forecast

  Million head         USDA\[Old\]   Post      USDA      Post       USDA      Post
                                     \[New\]   \[Old\]   \[New\]    \[Old\]   \[New\]

  **Market Year                      01/2003             01/2004              01/2005
  Begin**                                                                     

  Inventory            0             0         0         0          0         0
  (Reference)                                                                 

  Slaughter                          612       0         610        0         614
  (Reference)                                                                 

  Beginning Stocks     0             0         0         0          0         0

  Production           790           808       805       805        0         810

  Whole, Imports       5             8         5         10         0         10

  Parts, Imports       62            42        69        45         0         45

  Intra EC Imports     0             0         0         0          0         0

  Other Imports        0             0         0         0          0         0

  TOTAL Imports        67            50        74        55         0         55

  TOTAL SUPPLY         857           858       879       860        0         865

  Whole, Exports       0             2         0         2          0         2

  Parts, Exports       10            3         10        3          0         3

  Intra EC Exports     0             0         0         0          0         0

  Other Exports        0             0         0         0          0         0

  TOTAL Exports        10            5         10        5          0         5

  Human Consumption    847           853       869       855        0         860

  Other Use, Losses    0             0         0         0          0         0

  Total Dom.           847           853       869       855        0         860
  Consumption                                                                 

  TOTAL Use            857           858       879       860        0         865

  Ending Stocks        0             0         0         0          0         0

  TOTAL DISTRIBUTION   857           858       879       860        0         865

  Calendar Yr. Imp.    1             1         1         1          0         5
  from U.S.                                                                   
  -------------------- ------------- --------- --------- ---------- --------- ----------

# Production

Broiler meat production in 2003 is estimated at 808,000 tons. This
amounts to 612 million birds, or 11.8 million per week. Unit weight is
taken at 1.32 kg. (without giblets). This is still 6.3% more than the
estimated 760,000 tons, or 11.1 million per week produced in 2002. A
small decrease in production is expected for 2004 as the strong SA Rand
allows more competitive imports but this should turn around again in
2005.

It may be useful to look at carcass harvest again:

  ----------------------- ----------------------- -----------------------
  Cut                     Percent of carcass      Weight, gram

  2 Wings                 8                       153

  2 Thighs                11                      210

  2 Breasts               29                      554

  2 Drumsticks            10                      191

  Back bone               11                      210

  Total Chicken Meat      69%                     1,318 gram

  1 Gizzard               2.5                     48

  1 Liver & heart         1.5                     29

  1 Neck                  3.0                     57

  2 Feet                  3.0                     57

  Total offal             10%                     191 gram

  Feathers, entrails and  21%                     401
  blood                                           

  Total live weight       100%                    1,910 gram
  ----------------------- ----------------------- -----------------------

Annual slaughter for 2003 is taken as 612 million birds at 1.91 kg. live
and 1.32 kg. carcass weight. That means,

Total live weight production was 1,169,000 tons,

Chicken meat production amounted to 808,000 tons,

Offal production amounted to 117,000 tons,

And feathers, entrails and blood amounted to 245,000 tons.

Offal production included:

Gizzards 29,400 tons,

Livers and hearts 17,750 tons,

Necks 34,900 tons,

Feet 34,900 tons,

Total offal 116,950 tons.

While offal is obviously consumed in some way or another, we are more
interested in the chicken meat production and consumption.

The imports controversy then surfaces; the following table compares the
type of product imported over the past three years:

  ----------------- ----------------- ----------------- -----------------
  Metric tons       2001              2002              2003

  Whole birds       2615              6953              8104

  Boneless cuts     8473              5098              11489

  Bone in cuts      6003              11737             30544

  TOTAL MEAT        17091             23788             50137

  MRM               33079             37130             47086

  Meat + MRM        50170             60918             97223

  Offal             13387             19516             28204

  GRAND TOTAL       63557             80434             125427
  ----------------- ----------------- ----------------- -----------------

Obviously whole birds and discernable cuts are the result of a conscious
effort to produce young chicken meat, although some of the cuts could be
from depleted breeders and layers.

The total meat shown in the table above, 50,137 tons for 2003, should
thus be taken as chicken meat imports.

Mechanically Removed Meat (MRM) is protein and fat extracted from
chicken carcasses by a pressure process and the end result is a frozen
paste. It is a by- and not a primary product. It is not sold in the
retail market, cannot be consumed in its original form and is only used
in the production of processed and canned meat products. It should thus
be excluded from the chicken meat trade data in the PS&D.

Offal consists of feet, skins, liver, necks, hearts and stomach (heads
not allowed). Liver and skins are used in processed meats, while some of
the products are available in the retail market, but apparently the bulk
of the imports consist of chicken feet. Again it is not a primary but a
by-product and should be excluded from chicken meat imports.

# Consumption

If only the poultry meat imports are added to production, and the small
exports subtracted, domestic consumption amounted to about 853,000 tons
in 2003 and is likely to reach about 855,000 in 2004.

To put the industry in perspective we can compare per capita consumption
of the different meats as supplied by the Department of Agriculture.

  ------------ ----------- ----------- ----------- ---------- ------------
  Kg. per      Beef        Lamb        Pork        Red meat   Poultry
  capita                                                      

  1998/99      13.42       3.8         3.0         20.22      21.14

  1999/00      13.84       3.7         3.1         20.64      22.42

  2000/01      12.58       3.4         2.6         18.58      21.82

  2001/02      13.27       3.6         2.7         19.57      22.25

  2002/03      13.40       3.7         2.7         19.80      23.10
  ------------ ----------- ----------- ----------- ---------- ------------

Per capita poultry consumption first passed red meat consumption in
1998/99 and has since increased the gap. Lamb and pork per capita
consumption is small, pork consumption is limited by religious custom
while mutton production has decreased as a result of excessive stock
theft.

The main reason for chicken meat's success is price, with whole broiler
retail prices little more than half the price charged for beef as shown
in the following table.

  ------------- --------- ------- ------- ------- -------- ------- ------- ------- -------
  Rand/kg.      Sept.03   Oct.    Nov.    Dec.    Jan.04   Feb.    March   April   May

  Topside\*     30.32     30.03   30.39   31.13   32.26    31.93   32.15   31.28   32.56

  Chicken\*\*   17.18     17.05   17.26   17.87   17.85    17.73   17.91   18.21   18.01
  ------------- --------- ------- ------- ------- -------- ------- ------- ------- -------

\* Topside, boneless beef

\*\* Chicken, whole, dressed

Because of the recent volatility of the SA Rand monthly whole broiler
prices has to be converted to US cents per pound for meaningful
analysis.

+-------------+-------------+-------------+-------------+-------------+
| Broiler     | SA Rand/kg  | Exchange    | US          | US          |
| prices      |             | rate        | Dollar/kg   | D           |
|             |             |             |             | ollar/pound |
| Frozen,     |             | Rand per US |             |             |
| whole       |             | \$          |             |             |
+-------------+-------------+-------------+-------------+-------------+
| May 2003    | 17.78       | 7.67        | 2.32        | 1.05        |
+-------------+-------------+-------------+-------------+-------------+
| June        | 17.84       | 7.90        | 2.26        | 1.03        |
+-------------+-------------+-------------+-------------+-------------+
| July        | 17.05       | 7.55        | 2.53        | 1.03        |
+-------------+-------------+-------------+-------------+-------------+
| August      | 17.16       | 7.39        | 2.32        | 1.06        |
+-------------+-------------+-------------+-------------+-------------+
| September   | 17.18       | 7.33        | 2.34        | 1.07        |
+-------------+-------------+-------------+-------------+-------------+
| October     | 17.05       | 6.96        | 2.45        | 1.11        |
+-------------+-------------+-------------+-------------+-------------+
| November    | 17.26       | 6.73        | 2.56        | 1.17        |
+-------------+-------------+-------------+-------------+-------------+
| December    | 17.87       | 6.52        | 2.74        | 1.25        |
+-------------+-------------+-------------+-------------+-------------+
| January     | 17.85       | 6.92        | 2.58        | 1.17        |
| 2004        |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| February    | 17.73       | 6.77        | 2.62        | 1.19        |
+-------------+-------------+-------------+-------------+-------------+
| March       | 17.91       | 6.63        | 2.70        | 1.23        |
+-------------+-------------+-------------+-------------+-------------+
| April       | 18.21       | 6.55        | 2.78        | 1.26        |
+-------------+-------------+-------------+-------------+-------------+
| May         | 18.01       | 6.78        | 2.66        | 1.21        |
+-------------+-------------+-------------+-------------+-------------+
| June        | 18.00       | 6.65        | 2.71        | 1.23        |
+-------------+-------------+-------------+-------------+-------------+

The annual local price increase in Rand terms amounted to 1.3% between
May 2003 and 2004, showing that food price inflation is under control.

# Trade

Poultry meat trade has been a controversial subject in South Africa with
an anti dumping levy on some US chicken imports in force. Total imports
of poultry meat and products reached 153,000 tons in 2003 compared to
94,000 tons in 2002, probably due to the strong SA Rand. The total
imports include turkey and other poultry meat and products, with chicken
meat and products at 125,427 tons. Forty percent of the 2003 chicken
product imports, or about 50,000 tons, was chicken meat and 60%, about
75,000 tons, was products such as mechanically removed meat (MRM) and
offal, aimed at the lower end of the market. From January to May 2004
imports shows another 15% increase compared to the same period in 2003.
The following table shows total poultry meat and offal imports over the
past three years.

  ----------------- ----------------- ----------------- -----------------
  Metric tons       2001              2002              2003

  Brazil            36036             50607             80764

  Canada            7697              15144             24394

  UK                7333              6566              12403

  China             7161              1077              9983

  Australia         11340             8353              8774

  United States     2586              3793              8470

  Argentina         932               4678              3987

  Belgium           25                99                1250

  Israel            1962              612               1184

  TOTAL             78302             93901             153007

  Chicken only      63557             80434             125427

  Turkey only       14745             13467             27580
  ----------------- ----------------- ----------------- -----------------

The first category of imports is whole birds, which only constituted
6.5% of total chicken and product imports in 2003. From January to May
2004 imports increased by 72% compared to the same period the previous
year but is still not a major factor. Average Customs reported landed
price in 2003 was R4.83/kg. compared to R5.71 in 2002, the decrease
probably mainly due to the exchange rate variation.

  -------------- -------------- -------------- -------------- --------------
  Imports        Chicken, Mt.   2001           2002           2003

  \# 0207.12     Whole frozen                                 

  Tariff 27%     Brazil         1049           5264           6188

  SADC free      Argentina      0              960            1675

                 Australia      650            37             91

                 Canada         24             50             54

                 Others         892            642            96

                 TOTAL          2615           6953           8104

                                                              
  -------------- -------------- -------------- -------------- --------------

The second category is mechanically recovered meat (MRM) used in the
processing and canning industry. This is not a direct consumption
product but a cheap meat substitute, which constituted 37.5% of chicken
and chicken product imports in 2003. The average landed price was
R2.44/kg. in 2004 compared to R2.36/kg. in 2002.

+-------------+-------------+-------------+-------------+-------------+
| Imports     | Chicken,    | 2001        | 2002        | 2003        |
|             | Mt.         |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| \#          | Boneless,   |             |             |             |
| 0207.14.05  | excl.       |             |             |             |
|             |             |             |             |             |
| Tariff free | Cuts, (MRM) |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
|             | Brazil      | 15512       | 18990       | 25563       |
+-------------+-------------+-------------+-------------+-------------+
|             | U.K.        | 6870        | 5617        | 10625       |
+-------------+-------------+-------------+-------------+-------------+
|             | Canada      | 4662        | 7051        | 4935        |
+-------------+-------------+-------------+-------------+-------------+
|             | Australia   | 3545        | 2589        | 2099        |
+-------------+-------------+-------------+-------------+-------------+
|             | U.S.        | 872         | 910         | 1326        |
+-------------+-------------+-------------+-------------+-------------+
|             | Belgium     | 0           | 50          | 1242        |
+-------------+-------------+-------------+-------------+-------------+
|             | Argentina   | 772         | 1621        | 551         |
+-------------+-------------+-------------+-------------+-------------+
|             | Others      | 846         | 302         | 745         |
+-------------+-------------+-------------+-------------+-------------+
|             | TOTAL       | 33079       | 37130       | 47086       |
+-------------+-------------+-------------+-------------+-------------+

Boneless cuts (mainly chicken breasts) are a high quality product also
used in the food service industry. It formed about 9% of chicken imports
in 2003 with a higher landed price, R8.18/kg. in 2003 compared to
R12.47/kg. in 2002.

  -------------- -------------- -------------- -------------- --------------
  Imports        Chicken, mt.   2001           2002           2003

  \# 020714.10   Boneless cuts                                

  Tariff 5%      China          7048           1053           9813

  SADC free      Brazil         1358           2450           1061

                 Switzerland    0              0              425

                 Thailand       24             1461           51

                 Others         43             134            139

                 TOTAL          8473           5098           11489
  -------------- -------------- -------------- -------------- --------------

Chicken offal is a bigger category, about 22.5% of the total chicken and
products imports, coming in at R2.41/kg. in 2003 and R2.47/kg. in 2002.
It consists of feet, skins, liver, necks, hearts and stomach (heads not
allowed). Apparently the bulk of the imports consist of chicken feet.

  -------------- -------------- -------------- -------------- --------------
  Imports        Chicken, mt.   2001           2002           2003

  \# 020714.20   Offal                                        

  Tariff 27%     Brazil         10236          16369          22738

  EU and SADC    U.S.           276            1048           1734

  free           Australia      2012           1337           1663

                 Argentina      112            456            953

                 Canada         247            110            354

                 Other          504            196            762

                 TOTAL          13387          19516          28204

                                                              
  -------------- -------------- -------------- -------------- --------------

The following category, bone in cuts, include the chicken leg quarters
which had the anti dumping duty against the US product instituted in
2000. It formed 24.4% of the 2003 imports, the US being replaced as a
supplier by Brazil and Canada. The quoted 2003 landed price was
R4.45/kg. compared to R4.88 in 2002.

The anti dumping duty is due to be lifted in July 2005 if no further
application to extend the duty is lodged.

+-------------+-------------+-------------+-------------+-------------+
| Imports     | Chicken,    | 2001        | 2002        | 2003        |
|             | mt.         |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Tariff \#   | Other,      |             |             |             |
| 020714.90   |             |             |             |             |
|             | bone in     |             |             |             |
|             | cuts,       |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Tariff      | Brazil      | 1587        | 2198        | 15324       |
| 220c/kg     |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| General &   | Canada      | 780         | 5615        | 12353       |
| EU          |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| SADC free   | Australia   | 3401        | 2172        | 1875        |
+-------------+-------------+-------------+-------------+-------------+
|             | Argentina   | 47          | 1566        | 730         |
+-------------+-------------+-------------+-------------+-------------+
|             | Others      | 188         | 186         | 262         |
+-------------+-------------+-------------+-------------+-------------+
|             | TOTAL       | 6003        | 11737       | 30544       |
+-------------+-------------+-------------+-------------+-------------+

Exports are very small, less than one percent of production in 2003 and
a little more than 1% previously. The strong Rand making exports
unprofitable. The following table contains total exports, whole birds,
cuts, MRM and offal.

  -------------- -------------- -------------- -------------- --------------
  Exports        mt.            2001           2002           2003

  Tariff \# 0207 Mozambique     5616           7257           2616

  Poultry meat,  UAE            336            504            634

  offal          Angola         419            337            212

                 Ghana          1              80             161

                 Congo, DRC     168            149            125

                 Tanzania       126            124            78

                 Nigeria        0              116            67

                 St. Helena     1              41             53

                 Total          7962           9486           4733
  -------------- -------------- -------------- -------------- --------------

+-------------+-------------+-------------+-------------+-------------+
| Imports     | Chicken,    | 2001        | 2002        | 2003        |
|             | mt.         |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Tariff \#   | Other,      |             |             |             |
| 020714.90   |             |             |             |             |
|             | bone in     |             |             |             |
|             | cuts,       |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Tariff      | Brazil      | 1587        | 2198        | 15324       |
| 220c/kg     |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| General &   | Canada      | 780         | 5615        | 12353       |
| EU          |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| SADC free   | Australia   | 3401        | 2172        | 1875        |
+-------------+-------------+-------------+-------------+-------------+
|             | Argentina   | 47          | 1566        | 730         |
+-------------+-------------+-------------+-------------+-------------+
|             | Others      | 188         | 186         | 262         |
+-------------+-------------+-------------+-------------+-------------+
|             | TOTAL       | 6003        | 11737       | 30544       |
+-------------+-------------+-------------+-------------+-------------+

Exports are very small, less than one percent of production in 2003 and
a little more than 1% previously. The strong Rand making exports
unprofitable. The following table contains total exports, whole birds,
cuts, MRM and offal.

  -------------- -------------- -------------- -------------- --------------
  Exports        mt.            2001           2002           2003

  Tariff \# 0207 Mozambique     5616           7257           2616

  Poultry meat,  UAE            336            504            634

  offal          Angola         419            337            212

                 Ghana          1              80             161

                 Congo, DRC     168            149            125

                 Tanzania       126            124            78

                 Nigeria        0              116            67

                 St. Helena     1              41             53

                 Total          7962           9486           4733
  -------------- -------------- -------------- -------------- --------------

+-------------------+---------------------+----------------+-----------+
| **Imports**       |                     |                |           |
+-------------------+---------------------+----------------+-----------+
| **Country**       | South Africa,       |                |           |
+-------------------+---------------------+----------------+-----------+
| **Commodity**     | Poultry, Meat,      | ###### Broiler |           |
+-------------------+---------------------+----------------+-----------+
| Time Period       | Jan-Dec             | Units:         | Mt.       |
+-------------------+---------------------+----------------+-----------+
| Imports for:      | 2002                |                | **2003**  |
+-------------------+---------------------+----------------+-----------+
| U.S.              |                     | U.S.           |           |
+-------------------+---------------------+----------------+-----------+
| Others            |                     | Others         |           |
+-------------------+---------------------+----------------+-----------+
| Brazil            | 9912                | Brazil         | 22573     |
+-------------------+---------------------+----------------+-----------+
| China             | 1053                | China          | 9813      |
+-------------------+---------------------+----------------+-----------+
| Argentina         | 2526                | Argentina      | 2405      |
+-------------------+---------------------+----------------+-----------+
| Australia         | 2209                | Australia      | 1966      |
+-------------------+---------------------+----------------+-----------+
| Canada            | 5665                | Canada         | 12407     |
+-------------------+---------------------+----------------+-----------+
| Thailand          | 1461                | Thailand       | 51        |
+-------------------+---------------------+----------------+-----------+
| Total for Others  | 22826               |                | 49215     |
+-------------------+---------------------+----------------+-----------+
| Others not Listed | 962                 |                | 922       |
+-------------------+---------------------+----------------+-----------+
| Grand Total       | 23788               |                | 50137     |
+-------------------+---------------------+----------------+-----------+

+-------------------+---------------------+----------------+-----------+
| **Exports**       |                     |                |           |
+-------------------+---------------------+----------------+-----------+
| **Country**       | South Africa,       |                |           |
+-------------------+---------------------+----------------+-----------+
| **Commodity**     | Poultry, Meat,      | ###### Broiler |           |
+-------------------+---------------------+----------------+-----------+
| Time Period       | Jan -Dec            | Units:         | Mt.       |
+-------------------+---------------------+----------------+-----------+
| Exports for:      | 2002                |                | **2003**  |
+-------------------+---------------------+----------------+-----------+
| U.S.              |                     | U.S.           |           |
+-------------------+---------------------+----------------+-----------+
| Others            |                     | Others         |           |
+-------------------+---------------------+----------------+-----------+
| Mozambique        | 7257                | Mozambique     | 2616      |
+-------------------+---------------------+----------------+-----------+
| UAE               | 504                 | UAE            | 634       |
+-------------------+---------------------+----------------+-----------+
| Angola            | 337                 | Angola         | 212       |
+-------------------+---------------------+----------------+-----------+
| Ghana             | 80                  | Ghana          | 161       |
+-------------------+---------------------+----------------+-----------+
| Congo, DRC        | 149                 | Congo, DRC     | 125       |
+-------------------+---------------------+----------------+-----------+
| Tanzania          | 124                 | Tanzania       | 78        |
+-------------------+---------------------+----------------+-----------+
| Nigeria           | 116                 | Nigeria        | 67        |
+-------------------+---------------------+----------------+-----------+
| St. Helena        | 41                  | St. Helena     | 53        |
+-------------------+---------------------+----------------+-----------+
| Total for Others  | 8608                |                | 3946      |
+-------------------+---------------------+----------------+-----------+
| Others not Listed | 878                 |                | 787       |
+-------------------+---------------------+----------------+-----------+
| Grand Total       | 9486                |                | 4733      |
+-------------------+---------------------+----------------+-----------+

# Health

The South African veterinary services are currently busy containing an
outbreak of bird flu under ostriches in the Eastern Cape. The area has
been put under quarantine and all the birds in the affected area are
being culled. The South African government has in the meantime curtailed
all South African exports of poultry meat until the situation is
resolved. Fortunately the outbreak is in an isolated area, 300 kms. from
the closest big commercial poultry producers.

# Poultry meat, Turkey

  -------------------- ------------ --------- --------- ---------- --------- ----------
  **Commodity**        **Poultry,                                            
                       Meat,                                                 
                       Turkey**                                              

  1000 mt.             2003         Revised   2004      Estimate   2005      Forecast

                       USDA \[Old\] Post      \[Old\]   Post       USDA      Post
                                    \[New\]             \[New\]    \[Old\]   \[New\]

  **Market Year                     01/2003             01/2004              01/2005
  Begin**                                                                    

  Inventory            0            0         0         0          0         0
  (Reference)                                                                

  Slaughter            0            0         0         0          0         0
  (Reference)                                                                

  Beginning Stocks     0            0         0         0          0         0

  Production           4            4         5         5          0         5

  Whole, Imports       1            2         1         2          0         3

  Parts, Imports       14           25        14        23         0         22

  Intra EC Imports     0            0         0         0          0         0

  Other Imports        0            0         0         0          0         0

  TOTAL Imports        15           27        15        25         0         25

  TOTAL SUPPLY         19           31        20        30         0         30

  Whole, Exports       0            0         0         0          0         0

  Parts, Exports       0            0         0         0          0         0

  Intra EC Exports     0            0         0         0          0         0

  Other Exports        0            0         0         0          0         0

  TOTAL Exports        0            0         0         0          0         0

  Human Consumption    19           31        20        30         0         30

  Other Use, Losses    0            0         0         0          0         0

  Total Dom.           19           31        20        30         0         30
  Consumption                                                                

  TOTAL Use            19           31        20        30         0         30

  Ending Stocks        0            0         0         0          0         0

  TOTAL DISTRIBUTION   19           31        20        30         0         30

  Calendar Yr. Imp.    2            5         2         5          0         5
  from U.S.                                                                  
  -------------------- ------------ --------- --------- ---------- --------- ----------

# Production

Domestic turkey production is still very small although a major producer
has surfaced promising year round supplies. The market is, however,
mainly based on the duty free imports. Whole bird imports nearly doubled
to more than 2,000 tons in 2003, mainly as a result of the strong SA
Rand. The US supplied 429 tons as shown in the following table.

Imports, Turkeys, whole birds, fresh and frozen

  -------------- -------------- -------------- -------------- --------------
  Tariff \#      Metric tons    2001           2002           2003
  0207.2                                                      

  Incl. 0207.24  Brazil         785            920            1335

  0207.25        United States  277            17             429

  Duty free      France         90             0              194

                 Canada         86             93             73

                 Israel         13             9              15

                 Others         7              0              0

                 Total          1258           1039           2046
  -------------- -------------- -------------- -------------- --------------

Turkey cuts and edible offal imports also doubled to about 25,400 tons,
with the US supplying 4,956 tons. Unfortunately the Customs data does
not differentiate between the various products, and the assumption is
that the bulk of the imports consist of MRM and offal. This is borne out
by the fact that the average 2003 reported landed price for whole birds
is about R12.65 while the average price for cuts and offal is R3.31/kg.

  -------------- -------------- -------------- -------------- --------------
  Tariff #020727 Metric tons    2001           2002           2003

  Cuts and offal Brazil         5508           4401           8554

                 Canada         1899           2224           6574

                 United States  1063           1744           4956

                 Australia      1728           2401           2973

                 U.K.           437            872            1700

                 Israel         1860           596            389

                 Ireland        44             33             123

                 Argentina      0              49             77

                 Dominica       0              0              25

                 TOTAL          13359          12344          25399
  -------------- -------------- -------------- -------------- --------------

Total turkey and product imports follow:

  -------------------- --------------------- ----------------- ------------
  **Imports**                                                  

  **Country**          South Africa,                           

  **Commodity**        Poultry, Meat         Turkey            

  Time Period          Jan -Dec              Units:            mt.

  Imports for:         2002                                    **2003**

  U.S.                 1761                  U.S.              5385

  Others                                     Others            

  Brazil               5321                  Brazil            9889

  Canada               2317                  Canada            6647

  Australia            2401                  Australia         2973

  Israel               605                   Israel            404

  UK                   872                   UK                1700

  Total for Others     11516                                   21613

  Others not Listed    1867                                    5832

  Grand Total          13383                                   27445
  -------------------- --------------------- ----------------- ------------

Exports are very small and contain the whole spectrum of products.

  -------------------- --------------------- ----------------- ------------
  **Exports**                                                  

  **Country**          South Africa                            

  **Commodity**        Poultry, Meat         Turkey            

  Time Period          Jan -Dec              Units:            Mt.

  Exports for:         2002                                    **2003**

  U.S.                                       U.S.               

  Others                                     Others            

  Mozambique           107                   Mozambique        78

  Angola               13                    Angola            21

  Nigeria              29                    Nigeria           11

  Congo, DRC           6                     Congo, DRC        10

  Total for Others     155                                     120

  Others not Listed    25                                      9

  Grand Total          180                                     129
  -------------------- --------------------- ----------------- ------------