Chamwe Kaira
South African poultry producer Rainbow Chicken Limited reported higher revenue while warning that the poultry sector continues to face export constraints, logistics problems and rising disease control costs.
The company said progress has been made under the poultry master plan introduced in 2019 to expand the poultry market and increase consumption.
However, Rainbow said more work is needed to enable meaningful exports from South Africa’s poultry sector.
One concern raised by the industry relates to uncertainty around the African Growth and Opportunity Ac (AGOA).
Although the programme has been extended until 31 December 2026, the poultry sector remains concerned about a 72 000-tonne chicken quota that allows imports from the United States into South Africa without anti-dumping duties.
Industry players argue that South African producers do not benefit from the programme under the current tariff environment.
Rainbow also welcomed commitments to improve rail infrastructure announced in South Africa’s national budget.
The company said stronger rail logistics could help improve the distribution of poultry feed raw materials.
However, it noted that the rail system is still not able to provide a cost-effective option compared with road transport.
Rainbow said improvements in the freight logistics network remain necessary.
Disease control measures remain another concern for the industry.
The company said the cost and conditions of the government’s avian influenza vaccination programme remain high for both the egg and chicken industries.
Discussions with authorities are continuing to address these issues.
Rainbow added that the rollout of a vaccination programme for foot-and-mouth disease is a positive development.
The company is also cooperating with an inquiry by the Competition Commission South Africa into the structure of the poultry industry.
Regulators are examining whether industry concentration and integration could affect transformation and competition.
Rainbow said integration and scale are necessary to maintain low-cost production and support consumer prices.
The inquiry was announced on 30 September 2025 and is expected to run for about 18 months once it begins.
For the six months ended 28 December 2025, Rainbow reported improved financial results.
Revenue increased by 11.3% to R8.8 billion from R7.9 billion during the same period the previous year.
The company said the increase was driven by higher demand, improved product and sales channels and stronger pricing.
Rainbow operates as an integrated poultry producer that manages the full value chain.
The company breeds and raises poultry, produces animal feed through its feed mills and supplies fresh, frozen and processed chicken products.
The board also extended condolences following the deaths of brothers Johnathan and Deon Fourie from the Fourie family, who are associated with Chubby Chick.
The company expressed sympathy to the family, employees and stakeholders affected by the loss.
