The South African Poultry Association (Sapa) has come out strongly against the non-renewal of import tariffs on poultry, implemented to defend the South African Poultry sector against predatory trade practices, like dumping.
While South Africa’s International Trade Administration Commission (Itac) suggests the imposition for five years of anti-dumping duties against the likes of Brazil, Ireland, Spain and Denmark, provisional anti-dumping duties have only been in force from December 2021 to June 14.
These temporary duties have expired and have so far not been renewed.
As of June 12, Minister of Trade and Industry Ebrahim Patel had 60 days to react to the Itac report, citing material harm sustained by the local poultry industry due to the unfair trade practices employed by the likes of Brazil, Ireland, Spain and Denmark.
With neither provisional nor permanent duties in place, the local poultry industry is at risk and the negative impacts can already be measured, says Izaak Breitenbach, GM of Sapa’s Broiler Organisation.
The Poultry Sector Master Plan, to which Sapa is a signatory, aims to stimulate local poultry demand and production, develop South African industry, export South African chicken, and defend the South African poultry sector from predatory trade practices like dumping, says Breitenbach. “All the signatories to the master plan have achieved material growth and transformation of the local poultry industry – including improvements throughout the value chain.”
He points out that Sapa and its members have invested more than R1.5 billion in expanding poultry processing capacity in the local industry, with an additional R570 million earmarked to be invested during the course of 2023.
“This supports food security, local job creation, rural development, and additional revenue for the fiscus.
“Beyond investing in the sector’s industrial development, emerging black farmers and contract growers have also been supported with an injection of R474m in additional cash flow. In addition, the industry has increased market capacity to afford market access to both established contract growers and emerging black farmers.”
Breitenbach says despite the challenges of load-shedding, the rising cost of fuel, and the less-than-desirable exchange rate, the industry still produces the cheapest chicken our rands can buy.
“South Africa is currently open to predatory trade from other countries, and the progress that’s been made to achieve the objectives of the Poultry Sector Master Plan are under threat. Allowing dumping to continue undermines the pillars of the master plan, and severely compromises and endangers South Africa’s poultry industry – a R56bn strategic economic asset.
“Like we’ve seen from African countries to the north, Ghana, Senegal and Cameroon, dumping can readily destroy an industry.
“Without these tariffs in place, we could witness the systematic dismantling of South Africa’s poultry industry, leading to massive job losses, and severe economic contraction. Dumping jeopardises the country’s food security - and the lack of import tariffs to counter it can cost jobs, which in turn will increase poverty and hunger.”
