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IOL News
11-07-2025
- Business
- IOL News
Merlog Foods warns SA poultry supply crisis could worsen despite lifted import ban
Merlog Foods, one of South Africa's largest importers of chicken and chilled meats, said they still expect a shortage of mechanically deboned meat (MDM) despite the department of Agriculture (DOA) completely lifting a ban on imports of poultry and poultry products from Brazil due to an Avian Flu outbreak earlier this week Image: Supplied Merlog Foods has voiced concerns over a lingering shortage of mechanically deboned meat (MDM) despite the Department of Agriculture (DoA) lifting an eight-week ban on poultry imports from Brazil due to an Avian Flu outbreak earlier this week. The ban, triggered by a case of bird flu on a single farm in the Brazilian state of Rio Grande do Sul, had cut off 95% of South Africa's MDM supply from 15 May Merlog Foods manager, Georg Southey said it was expected to take a few months for supply and prices of the input material for polony and sausages to stabilise. 'We, however, believe this situation can reoccur in the case of another bird flu infection in Brazil,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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'Regionalisation is a scientific protocol supported by the World Organisation for Animal Health, and an agreement on this between the two countries is imperative. The DoA must urgently engage with Brazil to agree on a regionalisation protocol to prevent a full country ban in the instance of a future infection of bird flu in Brazil,' he said. 'This would be similar to a temporary year-long agreement with the US that allows individual states within America to self-declare when they are free of bird flu and continue exporting to South Africa.' Southey added that the ban on MDM and items such as chicken livers from Brazil has amplified South Africa's food security crisis, with an estimated 100 million meals lost for every week of the eight weeks that shipments stalled. 'Prices of MDM have already jumped 140%, and shortages are affecting millions of meals, which is putting pressure on school feeding programmes and food processors. The knock-on effects include rising food inflation, job losses in the food processing value chain, and increased fears regarding food security and nutrition. Brazilian suppliers stopped doing sample tests as they were unsure when trade would resume and must now conduct these tests.' Merlog Foods expects that imports will resume in the week of 14 July. However, Southey said with 6 000 tonnes per week typically required, and buffer stocks now exhausted, the effects of the shortage will be felt for months. 'With ships at sea for 28 days or more, it will take at least six to eight weeks to ramp up production, restore shipping schedules, and replenish supply chains,' Southey said. 'Consumers can expect higher prices on polony and Viennas until October, with normal supply and pricing only expected to stabilise by November 2025. Merlog Foods is relieved that there has been an agreement in solving the immediate crisis.' Gordon Nicoll, chairperson of South African Meat Processors Association, said they were relieved that the deadlock between South Africa and Brazil has been broken. 'Our members were starting to run out of stock of MDM which meant that shoppers and consumers were about to be confronted by a lack of Viennas, Polony, Russians, braai wors, on the shelves,' Nicoll said. 'Meat processors were facing widescale layoffs as factories, for almost two months, have been unable to import MDM due to the ban on poultry and poultry products from Brazil.' Nicoll added that they will still not receive imports of MDM for around five weeks – so towards the middle/end of August – which means the situation was still precipitous. 'The fact that we now have some certainty as to when we will receive new stock makes it easier to plan and allocate resources. We would still, however, encourage the government to work on a permanent solution for when we do encounter this situation again.' BUSINESS REPORT
IOL News
11-07-2025
- Business
- IOL News
How the resumption of MDM imports from Brazil impacts South Africa's food security crisis
The South African government has lifted the ban on Brazilian MDM import but food security is still a concern. Image: File South Africa has officially lifted its eight-week ban on Brazilian poultry imports, including mechanically deboned meat (MDM), a critical input in the production of affordable processed meats such as polony, viennas, russians, and sausages. But despite this breakthrough, food processors and importers warn that it will take months for supply chains to recover, and food inflation and shortages are likely to persist until November. The Department of Agriculture announced that the ban was lifted on Tuesday, July 8, after Brazil was officially declared free of highly pathogenic avian influenza (HPAI), or bird flu. MDM and chicken produced in Brazil after June 18 are now eligible for export to South Africa, provided they pass inspection upon arrival. Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading The ban was instituted on May 15 following a single outbreak of bird flu on a farm in the southern Brazilian state of Rio Grande do Sul. That isolated case effectively shut down 95% of South Africa's MDM imports overnight, as Brazil is by far the country's dominant supplier. Georg Southey, manager at Merlog Foods, one of South Africa's largest importers of chilled meats, welcomed the lifting of the ban but warned that the damage to food security has already been immense. 'This situation can recur in the case of another bird flu infection in Brazil,' said Southey. 'What is needed is an agreement between the two countries on a regionalisation protocol, so that a future isolated outbreak does not halt shipments from a very large country.' Regionalisation is a global animal health standard endorsed by the World Organisation for Animal Health and allows unaffected areas within a country to continue trade even if one region is impacted. A similar temporary arrangement is already in place with the United States, where individual states can self-declare as bird flu-free. According to Southey, the delay in reaching an agreement between Brazil and South Africa resulted in massive losses. 'The ban on MDM and items such as chicken livers from Brazil has amplified South Africa's food security crisis, with an estimated 100 million meals lost each week during the eight-week shipment stall,' he said. Prices of MDM have surged by 140% during the suspension, and South African producers, particularly those supplying school feeding programmes and lower-income markets, are now battling with shortages and inflationary pressures. Merlog Foods expects the first MDM imports to resume in the week of July 14, but cautions that it will take at least six to eight weeks to replenish supply chains, as the average shipment the average shipment takes over 28 days at sea. 'MDM prices are likely to remain elevated as Brazilian exporters try to capitalise on the gap,' said Southey. 'Consumers can expect higher prices on polony and viennas until October, with normal supply and pricing only expected to stabilise by November 2025.' The South African Meat Processors Association (SAMPA) also welcomed the lifting of the ban, describing the impasse as one that had pushed processors to the brink. 'We are delighted that the deadlock between South Africa and Brazil has been resolved, as meat processors were facing dire circumstances,' said SAMPA chairperson Gordon Nicoll. Nicoll confirmed that many meat processors were running out of MDM stock and were facing factory closures and looming job losses. 'Our members were starting to run out of stock of MDM, which meant that shoppers and consumers were about to be confronted by a lack of viennas, polony, russians, and braai wors on the shelves,' he said. 'Meat processors were facing widescale layoffs as factories, for almost two months, have been unable to import MDM.' Although a June announcement hinted at a partial lift of the ban for unaffected regions of Brazil, technical disagreements over South Africa's Import Health Certificate wording kept the deadlock in place until the new wording was agreed on this week. Nicoll said that even with the immediate crisis resolved, the future remains uncertain without stronger contingency plans. 'We are immensely grateful to the agriculture unit, led by Mr Dipepeneneng Serage, for their assistance and willingness to listen to industry and initiate engagements with Brazil to resume the trade of MDM,' he said. 'We have been working with the government for over two years to have policies and procedures in place to help South Africa when it is confronted by a poultry epidemic or pandemic. We will continue working with the National Department of Agriculture to implement better contingency plans.' South Africa does not produce MDM in any meaningful quantity, making imports essential to the processed meat value chain. Over 95% of the country's MDM imports over the last 12 years have come from Brazil, which is the world's largest MDM producer. With domestic production unable to fill the gap, the suspension of imports placed over 125,000 jobs in the food processing sector at risk. As production ramps up and trade routes resume, industry leaders stress that policy certainty and regionalisation protocols are critical to avoiding another food crisis in the future.
IOL News
10-07-2025
- Business
- IOL News
Brazilian chicken ban lifted but delays and high prices threaten food security
Although cheaper Brazilian chicken imports – vital for millions of poor South Africans – are set to resume next Monday, they will take time to arrive and will cost more than before. A ban on all poultry imports from Brazil was instituted some two months ago after an outbreak of avian influenza, which affected supply of mechanically deboned meat (MDM) and chicken. MDM is the raw ingredients for polony and viennas and can now be shipped into South Africa again, after an eight-week suspension. Chicken Facts noted in a January press release that 'local production of MDM is insufficient to meet domestic demand. As a result, importing MDM is crucial for the South African consumer, as it provides an affordable protein option for millions of lower-income consumers.' In a statement, Merlog Foods manager Georg Southey welcomed the lifting of the ban, but warned that buffer stocks have been exhausted and the 'effects of the shortage will be felt for months'. In a statement he added that, 'with ships at sea for 28 days or more, it will take at least six to eight weeks to ramp up production, restore shipping schedules, and replenish supply chains'. Poultry imports are essential in the poultry industry value chain, providing not only food security in times of short supply but also keeping local poultry pricing in check, Chicken Facts noted. Yet, Southey said that prices are likely to remain elevated as Brazilian exporters try to capitalise on the gap. Consumers can expect higher prices on polony and viennas until October, with normal supply and pricing only expected to stabilise by November 2025.
IOL News
10-07-2025
- Business
- IOL News
Brazilian chicken ban lifted but delays and high prices threaten food security
Although cheaper Brazilian chicken imports – vital for millions of poor South Africans – are set to resume next Monday, they will take time to arrive and will cost more than before. A ban on all poultry imports from Brazil was instituted some two months ago after an outbreak of avian influenza, which affected supply of mechanically deboned meat (MDM) and chicken. MDM is the raw ingredients for polony and viennas and can now be shipped into South Africa again, after an eight-week suspension. Chicken Facts noted in a January press release that 'local production of MDM is insufficient to meet domestic demand. As a result, importing MDM is crucial for the South African consumer, as it provides an affordable protein option for millions of lower-income consumers.' In a statement, Merlog Foods manager Georg Southey welcomed the lifting of the ban, but warned that buffer stocks have been exhausted and the 'effects of the shortage will be felt for months'. In a statement he added that, 'with ships at sea for 28 days or more, it will take at least six to eight weeks to ramp up production, restore shipping schedules, and replenish supply chains'. Poultry imports are essential in the poultry industry value chain, providing not only food security in times of short supply but also keeping local poultry pricing in check, Chicken Facts noted. Yet, Southey said that prices are likely to remain elevated as Brazilian exporters try to capitalise on the gap. Consumers can expect higher prices on polony and viennas until October, with normal supply and pricing only expected to stabilise by November 2025.
The Citizen
20-06-2025
- Business
- The Citizen
Partial poultry import relief welcomed, but biosecurity fears linger
The easing of the poultry ban on Brazil comes as South Africa battles hunger, with over 100 million meals lost weekly during the full ban. While food manufacturers and consumers are relieved at the announcement of the partial lifting of a ban on poultry imports from Brazil, some are worried about the country's biosecurity. Merlog Foods manager Georg Southey said the decision by the department of agriculture to partially lift the suspension of poultry imports from Brazil was a welcome and necessary move. 'The partial lifting of the import ban will be applied to all other states of Brazil, aside from the Rio Grande do Sul region, where the outbreak of highly pathogenic avian influenza, commonly known as bird flu, was detected in mid-May. Millions of meals lost 'Lifting this ban could not have come at a more critical time,' he said. Southey said South Africa has been losing over 100 million meals per week due to the ban, putting pressure on food affordability and security, especially as Stats SA reports that up to 30% of households in some provinces face regular hunger. ALSO READ: Chicken import ban lifted to avoid crisis Brazil's dominance in poultry supply chain 'Brazil supplies 95% of our mechanically deboned meat (MDM), a key ingredient in everyday staples like polony, Viennas and sausages. These affordable proteins are essential to school feeding schemes and low-income families. No other country could fill the gap,' he said. Southey said while he commended the department for responding swiftly to industry concerns and for engaging constructively with Brazilian authorities to implement a regionalisation protocol, he added there were clear lessons to be learned from the time it took to lift the ban. 'Much-needed shift' Southern African Agricultural Initiative CEO Francois Rossouw welcomed the move. 'It reflects a much-needed shift towards a science-based and internationally aligned approach to managing animal health risks through regionalisation. 'This decision will help stabilise the supply of affordable proteins.' NOW READ: 'Lifting Brazil chicken ban only hurts local producers,' says Sapa
