What is sometimes not emphasised sufficiently in SA’s chicken wars is the position of consumers (Julius Malema wants 50% tariff to protect local chicken farmers, January 12). Imported chicken is one of the most cost-effective forms of protein consumed by poor households. At current economic growth rates, SA is likely to experience a series of real year-on-year declines in per capita GDP. Welfare is an important source of income for half of households, yet fiscal constraints mean such income is unlikely to beat the rate of inflation as experienced by poor households. Unemployment rates are testing record highs and will not decline in the absence of a growth recovery. The correlation between tough economic circumstances and societal instability is one that my colleagues track very closely. Even if domestic chicken producers are right that foreign agricultural subsidies make it difficult for local producers to compete on price, the net negative effects of moving towards greater tariff ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.