Sapa defends their efforts to lobby for a tariff increase on chicken imports

The South African Poultry Association (Sapa) has defended their calls for an 82 per cent tariff on imported chicken, stating that the increase is necessary to stop dumping of off-cuts and brown meat to South Africa.

General manager of the Broiler Organisation and Sapa Izaak Breitenbach said, “The current tariffs that were put into place have not had the desired effect to stop or diminish dumping – 61 per cent of imports come from Brazil who simply dropped their export prices last time a tariff was imposed.”

“Brazil makes its profits by selling the breast meat from their chickens at premium to the US and EU countries and then they off-load the remaining brown meat at any price they can get, under the cost of production,” said Breitenbach.

According to Sapa, Brazil sells to South Africa at prices between 100 per cent and 190 per cent more than they do to other countries, making a small tariff of little deterrent to them.

He also stated that the price increase of 32 per cent claimed by the Emerging Black Importers and Exporters South Africa (EBieSA) is an alarmist claim aimed at supporting their own profits.

Breitenbach said that the South African poultry industry is internationally competitive, supports job creation, rural development, transformation, food security and food safety.

“These benefits to South Africa far outweigh the potential and marginal price increase associated with better protection against portion dumping. Imports are already bigger in volume than South Africa’s biggest producer and should uncontrolled dumping win the war, consumers will be at the mercy of importers, and with prices spiralling out of control.”

Breitenbach said that Sapa is currently collaborating with the government on a master plan for the industry to ensure growth and transformation. He said the industry has already assisted 70 black farmers to become land owners, employing around 600 people with around 2 300 others employed at abattoirs.

“The South African poultry sector is a key agricultural industry that provides employment for 130 000 people directly and indirectly. The current huge volumes of imports coming in could translate into at least 30 000 more South African jobs if dumping was stopped and local farmers afforded the opportunity to supply this demand instead. This will also bolster food security; instead of over-reliance on imports, which in the long term only benefit importers,” said Breitenbach.

Related article:

https://www.citizen.co.za/rosebank-killarney-gazette/237149/expect-slight-increase-petrol-prices-september/