Imports into South Africa need to enter the country at a fair price if local producers stand any chance, says Izaak Breitenbach, general manager of the broiler organisation of the South African Poultry Association (Sapa).“Product cannot enter South Africa at a dumped price,” he says. “No industry in the world can compete with dumped products. The World Trade Organization (WTO) found that dumped product harms the local industry and leads to food insecurity long-term, like what happened in Ghana. Some 20 years ago that country was self-sufficient in poultry and now imports in excess of 90% of consumption, with no poultry industry to talk about.”Breitenbach maintains the local poultry industry is globally competitive and does not see imports as a threat. “But dumped imports, imports on which the price is underdeclared to save on paying tariffs, are a serious threat and have led to reduced profitability in the industry, reduced investment, reduced economic activity, and job losses.”The local demand for chicken at present is about 185 000 tons per month, of which local producers supply 75% and imports 25%. “The industry at present has vacant capacity due to the 10% expansion that has taken place and can thus replace most of the imports. In terms of food security, we need a strong local industry to supply chicken,” Breitenbach told Freight News.This, he says, was highlighted during the riots last year in Durban when imports could not come in due to constraints at the ports.For Breitenbach, it is not an either-or case. “We do not have an issue with imports but have a big issue with dumped imports and imports that are illegally traded, for example underdeclaring the prices to save on tariffs. We can find a balance between local production and imports only by allowing the legally traded product to be imported.”
