LETTER: A bone to pick on chicken duties

The dumping duties on bone-in chicken (only on those particularly popular cuts), whose implementation was postponed for a year by minister of trade, industry & competition Ebrahim Patel, have been gazetted.

Local poultry producers have applauded the move, while importers are naturally aggrieved and warn of large price increases.

Yet, in four of the five affected exporting countries, some major producers have been subjected to few or no dumping duties, so importers will still have plenty of opportunities to obtain supplies at favourable prices.

Local poultry producers have been badly affected by the government’s chaotic handling of power, water and infrastructure issues. They should be compensated by subsidies that could be financed by the new dumping duties.

As chicken is an essential form of protein, VAT zero-rating is also long overdue.

Statutory agricultural levies of up to 5% are never mentioned, yet these costs are borne by consumers. While there is no statutory levy on chicken, there are levies on chicken feed; as feed represents nearly 70% of the cost of rearing a chicken, this plays a significant role in its price.

While on this subject, agricultural levies apply to many basic foods, such as maize, eggs, milk, meat and potatoes.

In our current economic climate they should be withdrawn to assist poor and unemployed South Africans by reducing prices.

David Wolpert
Sydney, Australia

The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za