South African Poultry Sector Gains Relief as Soybean and Maize Prices Plunge Amid Global Surplus

South African poultry producers see relief as soybean and maize prices drop up to 39%, though grain farmers struggle with rising costs and lower margins.

By: AXL Media

Published: Apr 20, 2026, 9:52 AM EDT

Source: Information for this report was sourced from Business Report

The Divergent Impact of Falling Grain Prices

A substantial reduction in the market prices for soybeans and maize is creating a complex economic landscape across the South African agricultural landscape. According to the Agricultural Business Chamber, soybean spot prices have decreased by approximately 12% compared to the previous year. The impact on maize is even more pronounced, with white maize prices falling by 39% and yellow maize by roughly 28% over the same period. This shift represents a significant windfall for poultry producers while simultaneously placing immense pressure on the profitability of grain cultivators.

Record Yields and Net Export Status

Despite a slight 4% dip in projected harvest volumes due to lower yields in specific regions, South Africa's soybean output remains remarkably high at an estimated 2.7 million tons. Agbiz chief economist Wandile Sihlobo noted that this production level is well above the long term average for the country. This robust output ensures that South Africa maintains its status as a net exporter of these commodities. The surplus, coupled with an abundance of global soybean supplies, continues to drive domestic prices downward as harvesting begins in the northern regions.

Strategic Relief for the Poultry Industry

The drop in commodity prices is particularly beneficial for the livestock and poultry sectors, where feed expenses represent between 65% and 70% of total production costs. Izaak Breitenbach, the CEO of the South African Poultry Association, highlighted that soybean meal alone accounts for nearly half of the feed cost per ton. Lower input prices enable the industry to maintain the supply of affordable chicken meat to consumers. According to Breitenbach, the current market conditions are essential for minimizing production expenses and ensuring food security in the poultry market.