Local poultry producers are set for a fillip after Minister for the Department of Trade Industry and Competition (Dtic) Ebrahim Patel's impending decision to re-impose anti-dumping duties on poultry products imports from five countries - a decision that has set the cat amongst the chickens in the poultry industry.
A notice to this effect was published in the Government Gazette this week advising, “the Minister is of the view that the anti-dumping duties should now become effective. The Minister has therefore requested the Minister of Finance in terms section 56 of the Customs and Excise Act, 1964, to give effect to the anti-dumping duties through amendment in the Customs and Excise Act by SARS.”
Anti-dumping duties on frozen bone-in portions of chicken originating in or imported from Brazil, Denmark, Ireland, Poland and Spain are likely to be reinstated after the lapse of the 12-month implementation suspension period.
A year ago Patel suspended the imposition of the anti-dumping duties for a period of 12 months due to the rapid rise in food prices and the significant impact this had, especially on the poor, as well as the impact that the imposition of the anti-dumping duties might have on the price of chicken as one of the more affordable protein sources.
Advocacy group Fairplay yesterday welcomed Patel's decision of imposing the anti-dumping duties against chicken imports from producers in Brazil and four European Union countries that he had previously approved. Patel suspended the duties a year ago amid rocketing food prices amid the cost of living crisis.
Fariplay said the decision should never have been delayed, but struggling chicken producers could now breathe a sigh of relief.
Fairplay said Patel had probably also rescued the poultry master plan he signed with industry leaders in 2019.
“The delay in imposing anti-dumping duties broke government’s commitment in the master plan to “act decisively” against illegal and dumped chicken imports. Resentment would only have escalated had he announced a further delay,“ Fairplay said.
The master plan aims to expand the local industry while curbing chicken imports overall, and stopping the illegal and dumped imports that had held back industry growth. It has been beset by multiple delays and much of it is incomplete.
The plan envisages a revitalised chicken industry, creating new jobs as it expanded into new domestic markets and enjoyed an exports bonanza. However, while production has increased, domestic consumption has not, and exports have hardly risen in four years.
The plan’s successes are nearly all due to contributions from poultry producers, who have exceeded their master plan commitments to invest and create jobs. By contrast, nearly every part of the master plan requiring government action is behind schedule.
However, the South African Association Poultry Producers (Sapa) said yesterday it awaited ratification from Finance Minister Enoch Godongwana and his sign off on the proposal before releasing its “already prepared response”.
"We have a statement prepared to share as soon as Minister Godongwana signs off on Minister Patel's instruction. We hope that it will be in tomorrow's (Friday) Government Gazette. Until then we have no comment," said Sapa's spokesperson, Alez de Couhna.
Fred Hume, the managing director of Hume International, has warned that the net result of new duties was likely to be perennial shortages of supply of South Africans’ favourite chicken cuts and new duties risked significantly higher chicken prices on the shelves and at restaurants.
“As a local and international food distributor, Hume International would actually prefer being able to source a consistent supply of affordable locally-produced chicken. But the simple reality is that the local industry currently does not produce enough to satisfy the country’s needs,” he said.
Paul Matthew, the CEO of Association of Meat Importers and Exporters, said this week, “The domestic poultry industry clearly cannot meet the growing demand for this source of protein, making imports an integral part of the nation's food supply solution. By diversifying the range of poultry products available, imports serve as a reliable source of high-quality protein, essential for the health and nutrition of the population. Imposing tariffs on these imports disrupts the delicate balance of the food supply chain, putting at risk the achievement of food security objectives.“
BUSINESS REPORT