SOUTH AFRICA – South Africa Poultry Association, has released a report showing that the imposition of antidumping duties of 30% will contribute to a price increase of between 0.9% and 4.9% for chicken products in retail outlets.

According to the association, the duties are also protecting the internationally competitive local industry from unfair and predatory trade practices.

“The potential passthrough of dumping duties to consumers is less than the price inflation brought on by load-shedding and feed cost,” SAPA general manager, Izaak Breitenbach said.

“By comparison, the longer and more frequent load shedding over the past year has increased prices by 10% for the eight large local producers and about 20% for smaller producers.”

He noted that the increasing severe load-shedding has added about R1.20/kg to the price of chicken products in retail outlets.

SAPA had commissioned independent economics firm Genesis Analytics to produce a report on the impact of anti-dumping duties, which are imposed over and above general import tariffs, on the retail price of chicken products.

“Before 2022, ITAC had investigated and concluded that some poultry-exporting companies in Brazil, Denmark, Ireland, Poland and Spain are participating in the dumping of chicken products in South Africa and causing material harm to the South African poultry industry,” said Genesis Analytics.

The price increase of chicken products in retail outlets if antidumping tariffs of 30% were imposed would be in the 2.5% to 4.5% range.

However, there is also significant variance in the quantum of duties imposed on importing firms within countries. For example, Brazilian exporters could have duties imposed that range from 6% to 48% of the total antidumping tariff.

“This variance and changes in markets that South Africa is importing from will further dilute or attenuate the impact on local prices,” Genesis indicated.

According to the Bureau for Food and Agricultural Policy, South Africa is one of the top three most competitive poultry producers in the world and produces the cheapest chicken South African rands can buy.

“The industry does not need protection, as it is globally competitive, but does need to be shielded from unfair trade practices – in this case, the dumping of chicken products,” said Breitenbach.

Further, the chicken products dumped in South Africa by some companies in these five countries are also because there is limited demand for these products in their local markets.

The provisional anti-dumping duties had earlier been suspended for twelve months in July 2022, owing to concerns about the impact on the prices of these categories of chicken products.

However, there has been no evidence of a reduction in prices of locally sold imported chicken products during the past year, but there has been a 600% increase in chicken imports from 17 000 t imported in October to 46 000 t imported in March.

This threatens the local poultry industry and the jobs it provides, despite the increase in imports being the result of unfair and anticompetitive trade practices, highlighted Breitenbach.

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