Meat importers have called on the government to review the decision to increase chicken import duties as global outbreaks of Avian flu have limited import markets and stifled price negotiations.
Association of Meat Importers & Exporters (AMIE) CEO Paul Matthew said this week that the association had written to the International Trade Administration Commission of South Africa (ITAC) asking it to review the decision to increase duties on bone-in and boneless chicken portions, especially given the plight of consumers who are paying higher prices for chicken.
“Importers are facing many challenges such as worldwide inflation resulting in increased production costs which producers are unable to recover, with the effect that producers are cutting back on production. South African authorities are also slow to reopen markets that are deemed free of Avian flu by the World Organisation for Animal Health (WOAH), an internationally recognised body, resulting in limited markets to import from. This is stifling the ability to negotiate. But perhaps the ultimate reality is the affordability of imported bone-in portions, specifically due to the depreciating rand and increased duty from 37% to 62%," Matthew said.
“ The price increases are causing many consumers in the mass market to change eating habits to cheaper alternatives,” he said
He challenged the contention of Izaak Breitenbach, general manager of the Broiler Organisation of the South African Poultry Association (Sapa), who said this week that association believed importers would react to the outbreak of Avian flu in South Africa by importing more chicken.
Matthew said that Brazil, the United States and at least two European countries are in a position to export chicken to South Africa and imports are flowing in despite anti-dumping duties.
“It is also extremely unrealistic to think that the world is waiting to assist South Africa with cheap poultry. Our local food service businesses have specific requirements and approval processes that take time to be negotiated and these cannot be substituted with imports overnight,” he said.
