On 30 September 2025, the Competition Commission officially launched the Poultry Market Inquiry (PMI) to examine how South Africa’s poultry industry works from breeding and feed to the sale of chicken and eggs on supermarket shelves. The poultry sector is one of the country’s largest agricultural industries, providing almost 18% of total agricultural output and supporting more than 134,000 jobs. Yet it continues to face serious challenges: high feed costs, concentration of power among a few large companies, and the struggle of small and emerging farmers to compete fairly.
For consumers, chicken and eggs are everyday essentials and a main source of affordable protein. When prices rise, it hits low-income households hardest. The inquiry will look at how prices are formed along the value chain, whether retailers mark up products excessively, and how tariffs and import duties affect affordability. The Competition Commission has made it clear that this investigation is not just about company behaviour, it is about market structure, power, and fairness. It will consider whether certain features in the industry restrict competition and ultimately lead to higher prices for consumers.
For farmers, especially small-scale and contract growers, the inquiry represents a long-awaited chance to have their voices heard. Many small producers depend on large vertically integrated firms for feed, day-old chicks, and access to abattoirs. These relationships often leave smaller farmers with limited control over their earnings and little bargaining power in negotiations. The Commission will assess whether these contracts are fair and transparent and whether small and historically disadvantaged producers have a real opportunity to participate meaningfully in the industry. The aim is to identify barriers that prevent emerging farmers from growing into sustainable, independent businesses.
The inquiry will also examine the structure of the industry itself. South Africa’s poultry market is dominated by a few large companies, including Astral Foods, RCL Foods, Country Bird Holdings, and Quantum Foods, which together control most of the value chain. These firms manage everything from breeding stock and feed mills to slaughtering, processing, and distribution. While this integration can bring efficiency, it also limits access for smaller players and creates dependence that restricts competition. The Commission will look at whether this concentration makes it difficult for new entrants to compete and whether vertical integration is necessary for efficiency or simply a barrier to entry.
The investigation comes at a critical time. The sector has endured multiple shocks, from avian flu outbreaks to load-shedding and rising input costs. Daybreak Foods, one of the country’s major poultry producers, recently entered business rescue, raising concerns about financial stability and transformation in the industry. Meanwhile, imported chicken continues to fill the local supply gap, with nearly 400,000 tonnes imported in 2024, mainly from Brazil, the United States, and the European Union. These imports play a complex role: they help meet demand but also challenge local producers who face higher production costs.
For policymakers and the broader industry, the inquiry offers a chance to address structural problems that past interventions, such as the Poultry Master Plan of 2019, have not fully resolved. While the Master Plan has supported investment, job creation, and new contract growers, it has not reduced concentration or ensured equal access to inputs and markets. The Commission’s findings could therefore help refine government policy, strengthen transformation efforts, and balance trade protection with consumer welfare.
The inquiry will also consider the role of retailers and quick-service restaurants. These businesses have strong bargaining power and can influence the prices farmers receive and the prices consumers pay. Some retailers demand high listing fees, long payment periods, or rebates that small producers cannot meet. At the same time, retail mark-ups on poultry and eggs can be substantial, often more than 70% of the farm-gate price. By studying these relationships, the Commission hopes to promote fairer practices across the supply chain.
Although some stakeholders worry about increased regulation, many in the industry have welcomed the inquiry. Large producers such as Astral Foods have expressed support, noting that fair competition benefits the sector as a whole. If successful, the investigation could lead to policy changes that make the market more transparent, improve access to key inputs for smaller producers, and ensure that consumers benefit from fair prices.
The Poultry Market Inquiry will take about 18 months to complete. The Competition Commission will soon invite public submissions and hold hearings where farmers, processors, retailers, and consumers can share their experiences. Its final report will include recommendations to improve competition, support transformation, and stabilise the industry.
Ultimately, this inquiry is about more than just chicken. It is about how South Africa balances affordability, fairness, and opportunity in one of its most important food industries. For consumers, it could mean fairer prices. For farmers, it could mean better access and independence. And for the industry, it is a chance to rebuild trust, efficiency, and resilience in the value chain that feeds the nation.