Protectionism holds back poultry export growth

Protectionism is stifling South Africa’s poultry export industry. That’s the view of Georg Southey, general manager for Merlog Foods, who says that while we do have the ability to produce more chicken for export, it really is about “the chicken and egg situation”. “The local chicken industry is very protectionist in its outlook and so instead of looking at how to grow the market they are focusing on keeping their existing market intact.” He said ongoing issues around brining also affected the situation. “With brining, the local market adds value to an entire chicken in a bag which is somewhat different to the rest of the world,” he said. “In most countries each portion of chicken carries a value – a breast or a drum or a thigh each has its own value. This is not the case in South Africa which is the only country that has taken this approach to its poultry.” He said if South Africa wanted to increase poultry exports it would have to make a decision on whether it wanted to tackle new markets. It would then have to understand the approaches of those markets, which are different from South Africa. “There are some good markets out there to tap into and there is major opportunity for South African poultry exports, but it is about having the right mindset first,” said Southey. INSERT & CAPTION Instead of looking at how to grow the market they are focusing on keeping their existing market intact. – Georg Southey