DAVID WOLPERT: Stricter sanitary controls would boost SA poultry sector

I spent 10 years as CEO of the Association of Meat Importers &  Exporters, which was a great privilege for me. Much of my time was devoted to opposing a long string of applications from local poultry aimed at levying various tariffs on imports.

I fought these applications vigorously, as I was firmly opposed to protectionism. But I have now spent the last 18 months in Australia, and have clearly seen the other side of the coin and how essential a successful and vibrant local poultry industry is to the overall health of the economy, as well as to employment creation and sustained growth.

Australia has some of the strictest biosecurity and quarantine measures in the world to protect its agriculture and environment from pests and disease. These stringent measures apply particularly to poultry products so that diseases such as Avian influenza and Newcastle disease are not given any opportunity to be imported, and so possibly pose risks to local poultry.

Due to the strict and costly phytosanitary measures, importation of fresh and frozen chicken is eliminated, without the use of punitive duties. Australia allows the importation of cooked chicken from New Zealand because it has similar disease-free status and rigorous biosecurity standards. Cooking also eliminates any potential pathogens and enables safe importation.

The Trans-Tasman trade relationship between Australia and New Zealand supports this arrangement. Australia is thus able to sustain a vibrant, healthy domestic poultry industry that minimises imports without imposing high tariffs. The lack of tariffs also plays a major role in keeping consumer prices down.

There is no suggestion herein for SA to replicate the Australian policies, since many valid arguments exist for the maintenance of a robust chicken import programme. Conversely, the Australian approach of avoiding duties by implementing policy based upon strict sanitary controls does play a hugely positive economic role, and by its very nature encourages job creation in tandem with economic growth.

It is worth pointing out that reliable sources reflect SA chicken consumption at about 35kg per person per year, with Australia at least 10kg per person higher. That is a significant volume. Australia's population is about half that of SA, but chicken is popular here, with many restaurants where chicken dishes dominate the menus.

Chicken plays a huge role in the supply of affordable and nutritious protein in both countries, and its consumption is influenced by price, availability and cultural preferences. It is therefore imperative that a profitable and sustainable poultry supply is a permanent feature of any country’s economic policies.

At this stage SA’s unemployment rate is sitting at about 33% and growing, with an expanded rate that includes discouraged job seekers who have given up searching for a job, at a frightening level of 42%. This is by some distance the highest in the world, and is a significant driver of our despairing and woeful poverty rate.

Our national debt to GDP ratio is hovering close to a staggering 80%. Both of these statistics are unsustainable for ongoing meaningful economic growth to be guaranteed. Ways need to be found to substantially improve them to acceptable levels. It is not an easy task.

The easiest and most cost effective way is to develop policies that encourage local industries to thrive and grow. This will, by its very nature, create jobs and grow spending in the domestic economy, thus also preserving essential foreign exchange funds. This has a domino effect on other industries. The existence of a virtually risk-free, healthy, ever-growing local poultry sector, which at all market levels is a large employer, would play a significant role in this.

SA poultry is from farm to customer an efficient and well-run industry, with product that can compete with the best. It should not be difficult to grow the market, supported by high quality imports, to far higher per capita consumption.

• Wolpert is a retired CEO of the Association of Meat Importers & Exporters.