SCA ruling opens door to bird flu compensation

The South African Poultry Association (Sapa) has described a Supreme Court of Appeal (SCA) judgment as “significant and groundbreaking” after the court ruled that a farmer should be compensated at market value for uninfected poultry he was forced to cull to prevent the spread of avian influenza.

Listen: Will the current scourge of avian flu benefit our chicken producers?

The ruling, if not appealed to the Constitutional Court, could have major implications for the poultry industry, which lost R10.5 billion in a 2023 bird flu outbreak, according to Izaak Breitenbach, CEO of Sapa’s Broiler Organisation.

The judgment could allow farmers and large poultry producers to claim compensation for losses resulting from compulsory culling to contain avian influenza outbreaks.

Zero compensation challenged 

The legal dispute started in 2021, when state veterinary authorities ordered the destruction of birds and eggs at George Moerasrivier Boerdery.

The farmer complied with the order but approached the government for R31 million in compensation. 

The Department of Agriculture’s director of animal health twice determined his compensation at zero, arguing that infected or exposed birds had no value because they were likely to die and could not be traded.

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In 2024, the high court ruled against the department, finding that the birds had value and should be assessed as they were before becoming ill or being exposed to infected birds.

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On 28 October 2026, the SCA dismissed an appeal by the director and the minister by a majority of three to two.

The court upheld the requirement that culled birds and eggs be valued as though they were uninfected, with compensation based on fair market value, although not necessarily the full market value.

Sapa welcomes ruling

Sapa supported the litigation and participated as a friend of the court because of the judgment’s potential implications for the wider industry.

“This is an important victory for poultry farmers and everyone who depends on a reliable supply of chicken and eggs,” says Breitenbach.

“Compulsory culling can remove a farmer’s productive flock in a matter of days. Farmers who comply are helping to protect other farms and the public, and fair compensation recognises that shared benefit.”

The judgment also acknowledged that compensation can support effective disease control by encouraging farmers to report outbreaks promptly and co-operate with veterinary authorities.

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The ruling, written by Judge David Unterhalter with two other judges concurring, directs the director of animal health to determine the compensation due to the George farmer on the basis that the birds were uninfected.

“Confidence that compensation will be assessed fairly strengthens our ability to respond quickly to outbreaks,” reads the ruling.

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“That matters for animal health, investment, jobs and food security across both the chicken and egg industries.”

Industry awaits next steps

Sapa has called for outstanding claims to be dealt with fairly and promptly in line with the judgment. However, it expects the government may seek leave to appeal to the Constitutional Court.

Two of the five judges dissented on the basis for valuing poultry exposed to the disease.

The judgment could also have implications for listed poultry producers Astral Foods, Quantum Foods and Rainbow Chicken, which suffered losses of hundreds of millions during the country’s largest-ever bird flu outbreak in 2023.

Astral recorded its first-ever loss, of R512 million, in 2023 amid load shedding and forced culling.

Listen to Jimmy Moyaha’s interview with Izaak Breitenbach, CEO of Sapa’s Broiler Organisation, in this SAfm Market Update with Moneyweb podcast:

You can also listen to this podcast on iono.fm here.

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