April 3, 2024

South African Poultry Association addresses tariff rebates with government

Executives from the South African Poultry Association (Sapa) recently engaged in discussions with Trade, Industry, and Competition Minister Ebrahim Patel regarding tariff rebates on chicken imports, implemented as a precautionary measure amidst concerns over potential shortages due to bird flu outbreaks, Engineering News reported.

According to Sapa Broiler Organisation GM Izaak Breitenbach, while acknowledging the rationale behind the tariff rebates, data from the industry suggests that there has been no shortage in the chicken supply to the market, thus questioning the need for the rebates to persist.

During the meeting, it was agreed that updated industry data would be submitted to the International Trade Administration Commission of South Africa (Itac) and the Department of Agriculture, Land Reform, and Rural Development to reassess the necessity of the rebates.

Itac has estimated a chicken shortage of 172,000 tonnes this year and proposed rebates of 43,000 tonnes per quarter, subject to adjustment if no shortage is identified.

Breitenbach emphasised the industry's proactive measures to avert shortages, including the importation of broiler hatching eggs over the past six months, underscoring the commitment to ensuring market stability.

Moreover, the poultry industry reaffirmed its dedication to collaborating and actively participating in the upcoming poultry market inquiry, highlighting its crucial role in local food security and employment.

The discussion also addressed the challenges facing local poultry producers, such as energy shortages, with Minister Patel expressing his commitment to fostering a profitable and resilient industry through collaboration outlined in the Poultry Sector Masterplan.

The meeting, attended by officials from Itac, Rainbow Chicken executive Marthinus Stander, and Daybreak Farms CEO Richard Manzini, marked a positive step in addressing industry concerns and charting a path forward in the poultry sector.

-      Engineering News