South Africa’s poultry industry is increasingly exposed to global trade politics, with renewed uncertainty around the African Growth and Opportunity Act (Agoa) compounding pressures from rising input costs, disease risks and weak consumer demand.
In its annual report for the year to end-September, Astral Foods said uncertainty over Agoa and US trade concessions was undermining investment, employment and long-term planning in the local industry.
Agoa officially expired at the end of September this year after a final 10-year extension passed in 2015. This effectively cut duty-free access to the US for eligible sub-Saharan countries, subjecting South Africa to tariffs of up to 30%.
At the centre of the dispute is the long-standing quota allowing up to about 72,000 tonnes of US bone-in chicken to enter South Africa annually at preferential rates. According to Astral, these imports are often priced below the cost of production, distorting the market and eroding the viability of domestic operations.
Astral chair Theunis Eloff said in his letter to shareholders that while Agoa has benefited export-orientated sectors such as automotive and citrus, poultry has repeatedly been “used as a bargaining chip” in trade negotiations. With Agoa’s future uncertain beyond 2025, the risk to local producers has intensified.
“Agoa has long served as a strategic trade instrument for South Africa, granting duty-free access to the US market for a range of exports. However, the poultry sector has borne the brunt of concessions made under Agoa, particularly the allowance of up to 72,000 tonnes of US bone-in chicken imports annually at preferential rates.
“These imports, often priced below market value, have significantly disrupted local production, leading to job losses and undermining investments made under the poultry sector master plan,” he said.
“With Agoa’s renewal uncertain beyond 2025, stakeholders are calling for greater transparency, reciprocal trade terms and protective measures to ensure the long-term viability of South Africa’s domestic poultry industry.”
Astral’s workforce increased by 5.7% to 12,995 employees across its operations for the year ended September 2025. But its “trained and upskilled” workforce numbers declined 19.7% to 3,015.
This can be partly linked to one of the company’s key material risks: employees and conditions of employment, listed as a critical concern in its risk register.
In its business risks and material matters report, Astral identified the availability and sustainability of critical poultry skills and the ability to maintain stable employment conditions as a top six risk.
The company said its talent pool is being targeted by national competitors.
“It is expected that the competition for talent will become an increased risk in South Africa as the skills market is quickly deteriorating in terms of capability, availability and competitiveness,” it said.
Despite these challenges, Astral reported a financial recovery in the second half of the year, with both revenue and operating profit rising. However, CEO Gary Arnold said that performance should not mask the fragility of the operating environment.
In his first CEO letter to shareholders, Arnold described 2025 as a “tale of two halves”, saying that broiler margins remained extremely thin and vulnerable to any volatility in market conditions. He flagged trade policy uncertainty, including Agoa, as a structural risk that sits outside management’s control but has direct consequences for jobs and food security.
Astral’s strategy remains focused on being the lowest-cost integrated poultry producer in selected African markets, underpinned by scale, efficiency and tight cost control.
The employment risk is compounded by broader pressures on the labour market. High unemployment, rising food inflation and fragile consumer demand limit pricing power, while disease outbreaks such as avian influenza add operational risk and cost.
Update: December 17 2025
This article was updated to reflect that Astral’s total workforce increased in 2025
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