February 26, 2021

 

South Africa's SAPA seeks for anti-dumping duty against five countries

 
 

The South African Poultry Association (SAPA) has applied for anti-dumping duties on imported chicken from Brazil, Denmark, Ireland, Poland and Spain.

 

Izaak Breitenbach, SAPA's general manager, said SAPA had proof that the five countries mentioned had been dumping frozen chicken portions into the South African market, leading to unfair competition for local producers and loss of jobs in the local industry.

 

"They are bringing frozen chicken portions into South Africa, often at a price 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 the World Trade Organisation and South African rules, but it is unfair because it creates jobs in producer countries while stifling economic growth here," said Breitenbach. "Statistics showed that South African chicken imports had grown by 400% in the past two decades."

 

South Africa's imports were at 30% high while other countries like the United States and Brazil were just around 1%, making South Africa the fifth largest importer of the US and Brazil, according to Breitenbach.

 

The R6.1 billion (US$418,081,690.20) worth of chicken imports  have cost South Africa a lost of 15,000 local jobs.

 

SAPA chairperson Aziz Sulliman said: "The imports were not only affecting larger poultry businesses, but also the small-scale black producers, who employed about 110,000 people directly and indirectly.

 

"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."

 

SAPA's application sought anti-dumping duties based on the difference between what frozen chicken portions were sold for in the producer country versus the lower export price of frozen chicken portions to South Africa, with dumping margins up to 201%.

 

South Africa's Minister of Trade, Industry and Competition is required to make a decision based on South Africa's International Trade Administration Commission (ITAC) recommendation, which is expected to take about 12 to 18 months from application submission. 

 

SAPA said the anti-dumping application was supported by grain producers, smallholder farmers, contract growers, the majority union in the chicken industry and companies dependent on the poultry value chain, such as equipment 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," said Breitenbach.

 

 - iol