March 23, 2020
South African poultry importers and domestic producers dispute over tariff increase
The dispute comes after the government approved tariff increases for bone-in chicken portions to 62% and boneless chicken to 42%, reported Business Live South Africa.
Domestic producers argue that imported chicken from US, Brazil and Europe have meant thousands of jobs lost in the South African poultry sector, while importers say the blame falls on the poor competition from the local poultry industry.
South Africa's Association of Meat Importers and Exporters (AMIE) said consumers are expected to fork out 4 ZAR / kg (~U$0.23; 1 ZAR = US$0.056) more for chicken.
Paul Matthew, AMIE CEO said that this will negatively affect consumers especially at a time when the country economy is affected by a recession and COVID-19, resulting in job losses in food commodies and related sectors.
The South Africa Poultry Association (SAPA) said there is no price increase for all imported and domestically produced chicken because of a tariff hike.
Izaak Breitenbach from SAPA said the tariffs are applied to the landed cost for imported chicken, so it does not immediately equal to retail price hikes even on imported meat.
He said evidence from independent research company Genesis showed exporting countries will lower export prices to meet increased tariffs.
Breitenbach said the new tariff hikes will drop the landed cost of Brazil imported chicken to local chicken production prices.
He said domestic chicken accounts for 70% of local consumption.
He added that the new tariffs affect only 30% of all imported chicken, and does not include the EU, which is a major exporter to South Africa.
According to Breitenbach, the tariff hikes are part of the country's Poultry Sector Master Plan, which was approved by the government, the poultry industry, importers and trade unions.
The new tariffs aim to limit imports and stablise, expand and create jobs in the local poultry industry.
- Business Live South Africa
