The current bird flu outbreak, described as one of the worst in South Africa, has had a profound impact on the poultry industry, posing significant threats to both the economy and the country’s food security.
South African poultry farmers have warned of possible chicken and egg shortages with one poultry producer reporting a loss of almost two million chickens this year, worth more than R100 million because of the disease. One might assume that insurance could provide a lifeline for poultry farmers in such dire circumstances. However, as van der Linde explains, the reality is quite different. “When it comes to insurance for poultry farmers, we typically look at two categories: fire and weather risks, and business interruption. Cover against fire and weather risks would coincide with damage or destruction of chicken houses.