Anti-dumping ruling not much to cluck about

Although the SA chicken industry would be “delighted” if the anti-dumping duties introduced last Friday significantly curtailed imports of bone-in portions of chicken, they are unlikely to have such a major effect. The duties – ranging from 22%-73% – were imposed on imports from Germany, the Netherlands and the UK of any frozen bone-in chicken portions falling under SA import category 0207:1490. But the dumping accusation is aimed primarily at leg quarters in this category, according to Kevin Lovell, CEO of the SA Poultry Association (Sapa) – which brought the application for anti-dumping duties to the International Trade Administration Commission (Itac). But this would leave six other alternative European Union (EU) member countries which also have veterinary approval arranged for bone-in exports to SA. These alternative sources are Belgium, Denmark, France, Hungary, Ireland and Spain, and all have extremely welldeveloped chicken industries. Therefore, according to Lovell, any cut-back in imports would likely be small and relatively short-term. “What’s likely is that they (the chicken importers) would find other sources of supply,” he told FTW. But he also stressed that the dumping accusation was well founded, and that Sapa had a prima facie case that the local industry was suffering material injury from dumping by these EU members. “These chicken portions get dumped because chicken meat is considered a prestige and health meat in the developed nations,” Lovell said. “But it is an essential source of protein in the developing world. “The price they (the three EU export nations in the duty application) attribute to cuts they don’t want is below cost.” Supporting this is the fact that the cost in the EU is 1.66 euros per kilogram, according to Sapa. But the leg quarters are exported at 70% of that price. “Below cost,” repeated Lovell. SA is currently the EU’s biggest market in the world for its bone-in portions. And it supplies about 90% of the bone-in demand in this country. But, Lovell said: “Given time, the local producers could answer that market demand.” It’s too early at this stage for any considered comment, according to David Wolpert, CEO of the Association of Meat Importers and Exporters (Amie). What he does know is that Germany has been hardest hit, supplying about 30% of the EU’s bone-in exports to SA. The UK and the Netherlands (with one supplier totally excluded from the duty demands) supply about 20% each. “We are not entirely certain yet about these duties,” he told FTW, “particularly that 73%. We’re still waiting for Itac’s preliminary report – which should reveal how they came to these numbers. “But the whole exercise is nothing more than another attack on a relatively small import industry representing less than 10% of the chicken market, in an effort to boost prices at the tills.” INSERT & CAPTION Germany has been hardest hit, supplying about 30% of the EU’s bone-in exports to SA. – David Wolpert