South Africa’s poultry industry bouncing back after challenging year, SAPA report

SOUTH AFRICA – According to The South African Poultry Association (SAPA), South African poultry sector is on a path to recovery following significant challenges, including anti-dumping measures on imported chicken. 

SAPA attributes part of the industry’s recent progress to these measures, which aim to counter unfair trading practices. 

Dumping, as defined by the World Trade Organization (WTO), occurs when countries export surplus products at prices below market value, harming local industries. 

SAPA President Izaak Breitenbach stated that dumping has long strained South Africa’s poultry market, but recent interventions have offered a reprieve.

The industry suffered a severe blow in 2023 when avian influenza resulted in the culling of approximately 7.5 million birds. 

SAPA estimated financial losses from the outbreak at billions of South African rand. 

However, the introduction of anti-dumping duties has allowed the sector to stabilize and improve operational efficiency. 

Breitenbach emphasized that SAPA has no intention of pursuing additional tariffs, as the current measures appear to be achieving their intended outcomes.

The imposition of anti-dumping duties has sparked debate. Frozen food importer Hume International has raised concerns about potential broader economic impacts. 

According to Professor Lawrence Edwards of the University of Cape Town, anti-dumping duties differ from general tariffs. 

While general tariffs are applied universally to non-preferential trade partners, anti-dumping duties specifically address unfair pricing practices and are implemented following detailed investigations. 

Edwards noted that these duties are temporary and subject to review after a maximum of five years.

South Africa has imposed anti-dumping duties on US poultry since 2000, with several extensions granted. 

In April 2024, the International Trade Administration recommended another extension, which the Minister approved. 

Hume International, however, has criticized the tariff rate quota (TRQ) exemption that permits limited duty-free imports of US poultry under the African Growth and Opportunity Act (AGOA).

Critics, including Edwards, caution that these measures increase poultry prices, which disproportionately impacts low-income households. 

With chicken accounting for 66% of meat consumption in South Africa, price increases could strain affordability. 

For example, the anti-dumping duty on frozen chicken from the US is US$4.94 per kilogram. 

Breitenbach argued that the industry’s goal is to curb dumping rather than seek stricter tariffs.

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