The present chicken flu outbreak, described as one of many worst in South Africa, has had a profound affect on the poultry trade, posing important threats to each the financial system and the nation’s meals safety.
The South African Poultry Association (SAPA) confirmed that the variety of avian flu circumstances in South Africa this 12 months is larger than in any 12 months because the first outbreaks have been reported in business farms in 2017.
South African poultry farmers have warned of attainable hen and egg shortages with one poultry producer reporting a lack of almost two million chickens this 12 months, price greater than R100 million due to the illness.
“The ripple effects of such losses extend far beyond the farms, threatening the transport industry, food security and our economy. A further pressing concern that needs to be addressed is that of appropriate insurance cover for poultry farmers caught in this predicament,” stated Hermanus van der Linde, CEO of IntegriSure Brokers.
One may assume that insurance coverage may present a lifeline for poultry farmers in such dire circumstances. However, as van der Linde explains, the fact is sort of completely different.
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“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. Business interruption covers these farmers against fixed expenses such as electricity and loss of profits after a devastating event such as a fire or extreme weather occurrence. The current scope of cover therefore leaves poultry farmers exposed and vulnerable as there is a noticeable absence of protection against pandemics like bird flu,” he stated.
In the face of extra frequent chicken flu outbreaks, it begs the query: Why hasn’t the South African insurance coverage trade proven innovation by offering cowl in opposition to such pandemics? Other nations have efficiently discovered options to handle these challenges.
For occasion, British poultry firm, Noble Foods, collaborated with NFU Mutual, an insurance coverage firm, to launch chicken flu insurance coverage schemes that present business interruption cowl after an outbreak.
Amid this insurance coverage hole, brokers play a vital position in aiding poultry farmers throughout such outbreaks. While there won’t be particular insurance coverage merchandise available to safeguard in opposition to pandemics like chicken flu, brokers assist farmers always assess their cowl and danger publicity.
This steering can show invaluable in navigating the complexities of the insurance coverage panorama throughout occasions of disaster.
“As the South African poultry industry grapples with the devastating impact of the bird flu outbreak, it is essential to re-evaluate insurance policies and consider innovative solutions that can protect farmers, ensure food security and safeguard our economy,” concluded van der Linde.
