DURBAN – THE SA POULTRY Association (Sapa) has utilized for anti-dumping duties on imported chicken from 5 countries together with Brazil and 4 European Union nations – Denmark, Ireland, Poland and Spain.
Sapa’s broiler organisation’s common supervisor, Izaak Breitenbach, stated the organisation had proof that these countries had been dumping frozen chicken parts into the South African market, which introduced unfair competitors for native producers and price jobs within the native trade.
“They are bringing frozen chicken portions into South Africa, often at prices lower than their production costs, and/or lower than they are selling the same product in their home markets. This not only constitutes dumping under World Trade Organisation and South African rules, it is unfair because it creates jobs in producer countries while stifling economic growth here,” stated Breitenbach.
Statistics confirmed that South African chicken imports had grown by 400 p.c up to now twenty years, he stated.
Breitenbach stated that benchmarking this with different countries, South Africa’s present imports have been at 30 p.c whereas these of the countries just like the US and Brazil have been round simply 1 p.c. South Africa was the US and Brazil’s fifth largest importer.
According to Sapa, R6.1 billion left the nation in chicken imports costing 15 000 native jobs. The trade stated that this was not in the perfect pursuits of the South African poultry trade.
Sapa chairperson Aziz Sulliman stated the imports weren’t solely affecting bigger poultry companies, but additionally the small-scale black producers, who employed about 110 000 folks instantly and not directly.
“The remedy is the anti-dumping duty because if the government does not protect us, we cannot grow. We also cannot transform a shrinking industry.”
Sulliman stated they wanted safety from dumping, undeclared imports, in addition to these imports that circumvented tariffs illegally.
The application sought anti-dumping duties based mostly on the distinction between what frozen chicken parts have been bought for within the producer nation, and the decrease export worth of frozen chicken parts to South Africa, with dumping margins as much as 201 p.c.
The application has been submitted to South Africa’s International Trade Administration Commission (Itac) which is able to examine the grievance earlier than making a advice to the Minister of Trade, Industry and Competition. The course of is anticipated to take about 12-18 months.
Sapa stated the application was supported by quite a few organisations and entities, from grain producers, smallholder farmers and contract growers to the bulk union within the chicken trade, and corporations dependent on the poultry worth chain, akin to, tools suppliers and feed suppliers.
“The situation has become more precarious since Covid-19 disrupted retail globally, so that chicken-producing countries all sit with overflowing cold-storage facilities and are looking around for markets to target with this surplus. We are expecting a renewed onslaught and it is crucial for us to be vigilant and use the trade remedies that are available to us,” stated Breitenbach.