By Fred Hume
IN AN effort to defend import tariffs that disproportionately favour local producers, placing importers and local consumers at a disadvantage, the local poultry industry has responded to criticism directed against anti-dumping duties.
Hume International does not dispute the essential role that anti-dumping duties and import tariffs play in regulating local markets, thereby safeguarding the average worker and consumer in South Africa.
Encouraging and sustaining an open and inclusive dialogue on this matter is crucial. However, its participants must at all times be open about their individual interests.
To clarify the position, we have maintained for months that Hume’s objective is to uphold and promote fair trade and competition, as well as to ensure that market prices are regulated properly to ensure that chicken remains affordable to the average consumer.
Consequently, we urge other commentators engaged in the ongoing public discourse, including those with dissenting opinions, to uphold the same standard.
We welcome collaboration and engagement.
Recently some industry pundits from the poultry industry have made assertions in the media that, as importers, we have misrepresented the anti-dumping situation.
They suggest that Brazilian bone-in chicken imports could face a dumping duty as low as 3.31%, This in contrast to a duty of 265% previously reported.
To rectify this assertion, we must clarify that we have maintained that a ‘maximum’ anti-dumping tariff of 265% will be applied to imports from Brazil in addition to the existing 62% tariff. Categorically, this information was accurate at the time of the statement.
Our colleagues further note that Irish duties will range from a minimum of 2.49% to a maximum of 37.52%, opposing Hume's initial comment using the previous figure of up to 158%, which again was still accurate during the time of our original statements.
Using recently released data to assert that Hume misrepresented figures weeks earlier, when our claims were based on the then-accurate numbers, is unfair and inaccurate.
We must stress that the anti-dumping duties imposed on Brazilian chicken are in addition to the ruling 62% on bone-in-cuts and 82% on whole birds.
The assertion that importer advocacy for more reasonable anti-dumping duties supports jobs in Brazil and the EU, while neglecting to acknowledge the jobs generated by importers within South Africa, such as clearing and forwarding agents, personnel at import-approved cold stores, hauliers, further processors and resellers, is misinformed,
We fully appreciate that local poultry producers are facing an uphill battle. Producing chicken in South Africa during a very serious energy crisis, coupled with failing municipalities often incapable of supplying water and basic services, are just some of the more serious challenges poultry producers face – much like the rest of the South African populace and business community.
We appreciate that these failings contribute significantly to the cost of production in the country, but wish to accentuate that none of this will be solved by higher import tariffs.
The net result of higher tariffs will be nothing other than less supply, weaker competition, limitations on choice, and higher prices on shelves all across the country.
On a final note, Hume International wishes to commend a decision by the government to assign the Competition Commission and Consumer Commission the task of monitoring local poultry prices after this duty has come into effect.
Fred Hume, managing director of Hume International
BUSINESS REPORT