Higher import duties will not fix all the poultry sector’s problems
Industry needs to improve cost efficiencies and tackle value-chain dominance by large firms, writes Hardin Ratshisusu
The debate about a provisional safeguard duty of 13.9% imposed in December 2016 on EU imports of bone-in chicken has highlighted challenges faced by local producers of poultry products. The poultry industry criticised the provisional duty as inadequate to deal with the crisis caused by the import of bone-in chicken portions from the EU. It applied for a 37% duty, citing the need for the local industry to remain viable. It is not contested that the poultry industry contributes significantly to the economy. The South African Poultry Association estimates that the poultry industry provides direct and indirect employment for more than 100,000 people in the wider poultry value chain. Poultry consumption in SA, according to the association, reached almost 38kg per capita in 2014, with beef consumption a distant second at 18kg per capita. Poultry meat has also consistently been the most affordable source of animal protein since 2009. However, over the past 12 months the average retail pric...
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