1. Challenges facing the South African Poultry Industry
Presentation to the PC: Trade & Industry
9 May 2017

2. We do this for a variety of reasons:
Nando’s experience with local products versus wholesalers of imported products
Nando’s uses fresh, locally produced chicken; we do not use any imported poultry products
We do this for a variety of reasons:
We are committed to support local industry and communities
Fresh product with short-shelf life needs to be sourced locally – we have a local supplier base across SA for this reason
Our products are packed to very stringent specification using our IP ingredients, we cannot source generic frozen product from an open market

3. Nando’s experience of sales of local products versus imported products
We do not have any experience using imported product in our restaurants

4. Nando’s pricing policy on poultry products
We buy per portion and sell per portion; not by weight
Each menu item has a bill of material and costs are calculated per meal. The selling price is calculated based on input costs for each individual item on the bill of materials. Poultry is one of those input costs.

5. Matters regarding the poultry industry Nando’s would like to bring to the Committee’s attention.
We are concerned about the health and sustainability of the SA Industry as we have seen consolidation in the industry. This has led to fewer role players, with smaller and medium sized operations at risk
We believe that the SA industry produces a world-class product
Quality and safety is of paramount importance to us. We partner with local suppliers, audit their facilities and engage with them regarding food quality, animal feed, farming and animal welfare practices. We want to know our product is produced safely, ethically, sustainably and within our quality standards
We believe fresh product is of the best possible eating quality and Nandos would like to continue to provide this to our consumers. Should the poultry industry continue under current conditions our ability to do that may be compromised

6. Proposed mechanisms to address the current challenges within the industry
We would like to see that imported products are held to the same quality, safety standards and other requirements that the SA industry needs to meet.
Mechanisms need to be put in place to level the playing fields or we might severely impact a vitally important industry. An industry that is vital to ensure food security (for both Nando’s and South Africa) and is a large employer (and many of those jobs are now under threat). .

7. Obrigado!