March 17, 2020

South Africa's poultry sector face higher chicken import tariffs

The new chicken regulations of South African government mean the import tariffs will be increased from 37% to 62% on frozen bone-in chicken portions (a 25% increase), and to 42% from 12% (a 30% increase) on frozen boneless portions.

Unati Speirs, the chairperson of Emerging Black Importers and Exporters Association of South Africa (Ebiesa), says, "The country is officially in recession, and consumers and small business owners need all the help they can get. Why ramp up the tariff so substantially? The evidence is clear–these tariff increases will lead to price increases for consumers.

"It will further damage the growth of many black poultry importers who are trying to build businesses, who already operate at a disadvantage, both to the large poultry importers and the local poultry industry.

"Many of these businesses are already marginal, and this is likely to mean some of our members simply have to shut up shop, depriving people of jobs and an income."

Ebiesa represents the interests of emerging black importers of chicken to South Africa. These are small South African businesses that each sustain between three and five employees and provide quality poultry to mainly the second economy.

Furthermore, Speirs says that South African producers are only geared to cover 70% of local demand, with imports bridging the 30% gap.

"Chicken is the largest and most affordable source of protein in South Africa, but local producers have not expanded production, despite the fact the tariffs have been in place for some time.

"Instead of investing in local production, the poultry industry just asks for more protection," she adds.

This is the seventh time since 2011 that the local industry has applied for protection. In 2013, import tariffs on whole chicken increased from 27% to 82%, frozen bone-in chicken increased from 18% to 37% and frozen boneless cuts from 5% to 12%.

Charges are based on recommendations from the International Trade Administration Commission of South Africa (Itacsa).