May 13, 2013

Namibia's Ministry of Trade and Industry has restricted the importation of poultry products into the country amid an initial uproar from certain role players in the industry.

Importers can only bring in the country 600 tonnes of chicken and chicken products per month. The restrictions are undoubtedly good news for the multi-million dollar Namibian chicken industry giants - Namibia Poultry Industries (NPI) - who are struggling to keep head above water due to unrestricted chicken imports into the country by South African multinational poultry companies, as well as parallel imports from Latin America. Because Namibia is part of the Southern African Customs Union (SACU) it means that chicken imported from outside the customs union will also be subject to the proposed new levies.

The Ministry of Trade and Industry set the ball rolling with an advertisement on May 3, informing the public and all importers of poultry products derived from slaughtered fowls of the species Gallus domesticus about the restrictions after the official Notice No. 81/1013 was published on April 05 in the official government gazette.

Unofficial import figures of poultry before the restrictions indicate that the country imported between 2,500 and 3,000 tonnes of poultry products per month. Willem Schutz of the Meat Board said that the allocated 600 tonnes of poultry products would be distributed to importers based on the previous 12 months' import statistics of importers. He said the quota would be revised after the first three months.

"I am convinced that the restrictions will protect local producers against cheap imports," said Schutz. However, the Namibian Association of Meat Importers and Exporters has complained to the Minister of Trade and Industry, Calle Schlettwein, that the restrictions would not be in the public interest, because it would have far reaching consequences for consumers as well as importers. The organisation initially demanded that the minister revoke the announcement regarding the restrictions, but they have since retracted.

The restrictions came while consumers hold their breath for a possible increase of up to 50% in the retail price of chicken. This follows after the South African chicken industry applied to the International Commission of Trade Administration that the current import tariff of chicken from outside SACU be increased from 27% to 82% in order to curb unfair trade practices. "A technical committee has been formed comprising of all local role players. The committee will hold monthly meetings to monitor the situation and do evaluation. If any interventions should occur, the committee will report it to the Ministry of Trade and Industry," said Schutz.

Schutz stressed that it is vitally important that the local market is not hurt at any time and that chicken products stay readily available. He said all importers must register and apply for permits at the Meat Board. A veterinary permit must first be obtained and must accompany the application for import permits. Permits are valid for 30 days, and the permits will apply for every individual load of chicken.

"We hope to gather useful information and compile statistics so that important adjustments can be made as we go along to ensure better strategic planning for the future," he concluded.