29 Sep 2013 07:00
WINDHOEK, 29 SEP (NAMPA) - Namibians will have to dig deeper into their pockets for chicken as from next month as the price of Namibian-produced chicken is set to increase by 12 per cent.
The increase comes amidst complaints by members of the public who already feel that they are paying too much for the Namibian products.
Namib Poultry Industries (NPI) Managing Director Dawid Koen announced the price increase here on Friday.
This means as from October, a 1,5 kilogramme (kg) bag of chicken will be sold to retailers for N.dollars 45 as opposed to the current N.dollars 40.
The main reason for this is that with the current pricing, broiler production in Namibia and also South Africa is not economically viable. We can also argue that we went through a series of input cost increases, which is electricity, water, fuel, but these are not the main reasons, said Koen.
He said this may seem like a blow to the consumer taking the price increase into account, but the longer-term benefits will outweigh the price increase.
Amongst other things he noted that the benefits include the increasing of Namibias Gross Domestic Product (GDP), numerous new opportunities for Small and Medium Enterprises and the creating of a platform which makes fresh chicken readily available.
Unfortunately the abovementioned benefits are medium to longer term advantages, but we must start somewhere. The earlier the better, Koen indicated.
Namib Poultry slaughters about 50 000 chickens a day and on a weekly basis.
They have a mortality rate of about 2,8 per cent per week, but no outbreak of disease has been experienced since the companys inception.
NPI was commissioned in 2012 and Government gave the local poultry industry protection under a managed quota system with effect from May this year.
Earlier this year, chicken prices hit an all-time low in South Africa and Namibia due to the importing of chicken from Brazil and lately the European Union (EU), especially leg quarters.
The surplus created by cheap imports to South Africa had a bump-on effect on Namibia.