June 20, 2021

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South Africa applies for anti-dumping duties on chicken

The South African Poultry Association (SAPA) has utilized for anti-dumping responsibilities on imported rooster from Brazil and 4 EU nations, namely Denmark, Eire, Poland and Spain.

GM of SAPA’s broiler organisation, Izaak Breitenbach, confirmed that unfair practices have been raised in discussions with EU representatives in South Africa and with the EU export organisation AVEC.

Frozen chicken portions – primarily bone-in – are being dumped into the South African poultry market, says SAPA’s GM, Izaak Breitenbach.  Photo: topntp26

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Frozen rooster portions – largely bone-in – are staying dumped into the South African poultry current market, claims SAPA’s GM, Izaak Breitenbach. Picture: topntp26&#13
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Poultry dumping, unfair competition

“We have evidence that these countries have been dumping frozen hen portions onto the South African industry, which is unfair competition for regional producers, significant and tiny, and charges area jobs,” stated Breitenbach. “They are bringing frozen hen parts into South Africa, typically at charges decreased than their manufacturing fees, and/or lessen than they are providing the similar products in their house markets. This not only constitutes dumping less than Globe Trade Organisation (WTO) and South African principles, it is unfair since it generates careers in producer international locations although stifling economic progress below,” he mentioned, incorporating that dumping margins up to 201% have been observed.

Breitenbach explained that the anti-dumping application, which is causing content damage to South Africa’s industry, irrespective of the current tariffs, is supported by a vast variety of organisations and entities, from grain producers, smallholder farmers, and deal growers to the greater part union in the hen marketplace and firms dependent on the poultry value chain, such as products suppliers and feed suppliers.

South Africa a goal for dumping surplus hen

“The point that we now have evidence of dumping by 9 countries demonstrates the extent to which South Africa is a focus on for countries dumping surplus chicken. Applying for anti-dumping responsibilities is an high-priced course of action, but our sector is beneath continuous attack from unfair competitors, so we have no preference but to act. As a great deal as R6.1 billion (US$ 403 million) leaves the state every single yr as a result of poultry imports only. This in a state with an expanded unemployment level of 43%. Just visualize the beneficial influence it would have on the economic system and on job development if that amount of money was alternatively invested locally.”

The reason of the programs is to “level the enjoying field”, claims Breitenbach, noting that the problem has develop into more precarious because Covid-19 disrupted retail globally, so that hen-producing countries all sit with overflowing chilly-storage services and are seeking all around for markets to target with this surplus. Speaking about the anti-dumping duties imposed on the 5 countries, Breitenbach concludes: “I am unquestionably self-assured that we’ve plugged enough holes to see an enhancement in the regional sector.”

Exports to UAE a get for SA poultry

In the meantime, the South African federal government has effectively negotiated a new export certificate for poultry products the United Arab Emirates. SAPA expects obtain to more nations to abide by before long, and actions are being taken to aid exports to the country’s neighbours belonging to the South African Customs Union, particularly South Africa and Botswana, Eswatini, Lesotho and Namibia.