Astral Partners with Poultry Market for Joint Investigation

Astral Foods, listed on the JSE, has expressed its commitment to positively interact with the Competition Commission’s inquiry into the poultry market, valuing the opportunity for constructive conversation.

In a statement issued on Friday, Astral, a significant player in the country’s poultry industry, revealed that it had already shared its perspectives with the commission in March 2024, shortly after the regulator’s announcement concerning the inquiry.

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The South African competition authority first announced its plans for a poultry value chain inquiry—encompassing both chicken meat and eggs—back in February 2024.

On Monday, the commission released its final terms of reference in the Government Gazette, outlining the inquiry’s scope, process, and timelines.

The inquiry will investigate a range of issues, including pricing, access, vertical integration, imports, competitiveness, contract farming, and the intricacies of retail and downstream markets while also promoting transformation within the sector.

The commission noted in its terms of reference that “the four largest chicken producers—Astral, RCL, Country Bird, and Sovereign—account for nearly 63% of South Africa’s chicken production.”

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Astral Foods stressed that the Competition Commission has not identified the actions or conduct of “any specific firm.” As a listed poultry producer and member of the South African Poultry Association (Sapa), Astral aims to highlight the “significant contributions of integrated poultry production” to South Africa.

“Particularly its role in strengthening food security and creating sustainable employment opportunities.”

“Astral wants to remind stakeholders that this inquiry is not an investigation into anti-competitive practices,” it stated.

The commission has indicated that the inquiry will employ public hearings, requests for information, and summons powers to gather evidence, encouraging stakeholders and the public to submit their insights.

According to the commission, the poultry sector represents South Africa’s largest agricultural subsector, contributing 17.8% of agricultural output and providing employment to around 134,000 individuals.

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