The Department of Trade and Industry said it would do everything in its power to help the local poultry industry, which is being decimated by imports.
Two of the country's leading chicken-producing companies are set to retrench close to 3 000 workers, and they expect further job losses if they continue to lose the price war against importers.
Local markets have been flooded with imported chicken. It is estimated that 530 000 tons of chicken were imported last year.
Last week the Sunday Tribune reported that Rainbow Chicken will sell 15 of its 25 farms in KwaZuluNatal and retrench 1 350 workers, while Country Bird is set to retrench 1 500 employees.
Sidwell Medupe, spokesman for the department, said: "We will introduce an incentive programme in the new financial year, which will help local chicken producers' competitiveness in the marketplace. And a national committee has been set up, which will include representation from the Department of Agriculture, Forestry and Fisheries and the chicken industry, to consider and address the challenges experienced by the local poultry industry."
