13 March 2024
The local broiler chicken industry has been blindsided by the issuing of rebate permits allowing additional chicken meat to be imported cheaper – when it says there is no shortage of chicken meat.
The South African Poultry Association (Sapa) describes the rebates granted by the International Trade Administration Commission (Itac) on certain import tariffs as “unnecessary, unjust and harmful to the local poultry industry”.
Although the industry is recovering from the worst outbreaks of highly pathogenic avian influenza in South Africa’s history, neither poultry farmers nor industry analysts expect any shortages now that the disease threat has decreased, says the association.
In contrast, Itac has calculated that the market could experience a shortage of 172 000 tons of chicken meat this year and has issued 65 permits allowing importers to claim rebates on their orders.
Some of the rebates will apply to pieces on the bone, which effectively nullifies the dumping tariffs the industry fought for and agreed on in the poultry master plan. This contradicts the master plan’s objective of limiting chicken meat imports.
“It is quite ironic: Itac is the institution that has calculated the substantial damage caused by dumped chicken meat products to the local industry, but it has approved 65 permits, some of which will enable importers to buy dumped products,” says Izaak Breitenbach, CEO of Sapa’s broiler chicken organisation, in a statement.
The 65 permits are valid from January 26 to April 27 and the import quota for the first quarter is 43 000 tons. Breitenbach says the permits are aimed at enabling additional imports of chicken meat, but South Africa does not need them.
According to Sapa, the rebates will further damage the industry. Last year, during the bird flu outbreaks, the industry received no assistance from the state for chickens that had to be culled due to the disease.
There was also no sign of the relief fund promised to the industry by Deputy President Paul Mashatile in October.
Breitenbach says the rebates will make it harder for small-scale farmers to get back on their feet. On the other hand, they will increase profit margins for importers.
“Sapa recently presented its research and findings on the current chicken meat supply to the Department of Agriculture, Land Reform and Rural Development, advising that there is currently no shortage of chicken meat in the local market,” he says.
“We are dismayed that instead of confirming Itac’s calculations of a shortage, the department should have confirmed it, as Itac has issued rebate permits.
“This is confusing, damaging to the local industry, and undermines and undoes the work of the master plan.”
