South Africa’s Rainbow Chicken engages with government officials for industry growth
SOUTH AFRICA – Rainbow Chicken recently engaged with government officials to strengthen South Africa’s poultry industry.
A delegation from the Department of Trade, Industry, and Competition (DTIC) and the Department of Agriculture, Land Reform, and Rural Development (DALRRD) recently visited the company’s office in Centurion and later toured its Rustenburg processing plant.
The visit is part of an effort to improve collaboration between industry and policymakers. Rainbow Chicken is working towards making the local poultry sector more self-sufficient, which could enhance food security and economic stability.
Delegates were given a comprehensive view of the company’s production process, from farming and processing to distribution.
The visit highlighted the importance of poultry in the country’s agricultural economy, as chicken remains the most widely consumed and affordable source of protein, making up nearly two-thirds of all meat consumption.
Nadine Hardwich, Rainbow’s Category and Corporate Communications Executive, says the visit allows policymakers to gain a clearer understanding of industry operations.
She notes that when officials see the sector’s realities firsthand, they are better equipped to create policies that align with national economic goals.
Discussions during the visit focused on key challenges facing the industry.
Rising costs, global competition, and the push for sustainable farming and processing methods continue to pressure poultry producers.
Rainbow Chicken emphasized the need for partnerships between government and private businesses to manage production expenses, ensure fair trade, and introduce modern technology to improve efficiency.
Another major issue raised was the potential for expanding export opportunities. With trade agreements such as the Economic Partnership Agreement (EPA) in place, there is room for South African poultry to access larger markets.
However, industry players believe more needs to be done to create a competitive environment that supports local businesses.
Rainbow Chicken also reaffirmed its commitment to job creation and workforce development.
The company says training and upskilling employees is a priority, as technology continues to shape the industry.
By equipping workers with relevant skills, it aims to improve productivity and promote economic inclusion.
Rainbow’s engagement with the government follows the release of its financial report, which shows a revenue of US$814 million for the fiscal year ending June 2024.
The company recently separated from RCL Foods, which reported total earnings of US$1.5 billion for the same period.
RCL Foods’ report states that revenue from ongoing operations grew by 6.8%, largely due to price adjustments linked to high input costs.
Earnings before interest, taxes, depreciation, amortization, and impairments (EBITDA) rose by 36.8%.
The unbundling of Rainbow Chicken from RCL Foods took effect on July 1, 2024, through a pro-rata distribution in species.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
