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Cape Town - Cape Town - The Association of Meat Importers and Exporters (Amie) has instituted court action in its bid to defend an application that could result in consumers paying up to 50% more for chicken, CEO David Wolpert told Fin24 on Friday.
South Africans could pay up to 50% more for chicken at the till as soon as July or August, but Wolpert is hoping this will not be the case.
Amie is trying to obtain crucial information in a customs duty application that, if successful, will see consumers paying more for chicken.
The price hike follows the International Trade Commission’s (Itac's) investigation that could lead to costing poultry importers a 200% duty increase (from 27% to 82%) on imported chicken.
The reason stemmed from the local industry being under strain.
Wolpert said last month that members of the South African Poultry Association (Sapa), including Rainbow, Astral, Afgri, Sovereign and Country Bird persuaded Itac to launch an investigation that could hammer importers by raising duties.
Amie obtained a copy of the duty document a week after it was gazetted on April 12, however, Itac's case is flawed, said Wolpert.
The importer instituted court action on Itac on Friday after studying the document. It is disputing the information used.
"Itac classified a lot of the crucial information as confidential even though we could clearly establish from the limited information available that their calculations and conclusions were incorrect."
"We have served court papers on Itac to release the so called confidential information to us", he said.
Itac's case may backfire
If the correct information were used, it should result in a strong case for a reduction in import tariff instead of an increase, said Wolpert.
He added that this would be a blessing for the poor.
In April Sapa's chief executive Kevin Lovell said that price hikes are needed for local chicken suppliers to survive.
"Local producers are eating cash at present. They need to increase prices or close up shop," Lovell told the Mail&Guardian.
Donald MacKay‚ a director at XA International Trade Advisors, who has been closely involved in the chicken tariff applications, was quoted in Business Day last month saying that while the local industry is under strain, it is questionable that all its woes are pinned on imports.
DA MP Wilmot James said in February that local producers were misguided in their claims that imported products threatened their business.
"Statistics provided by SA Revenue Services show that poultry imports equate to only 10% of local production," he told Sapa.
He added that the statistics indicated that poultry imports are on the decline.
"Chicken imports are therefore hardly a credible threat to local producers," said James.
- Fin24
South Africans could pay up to 50% more for chicken at the till as soon as July or August, but Wolpert is hoping this will not be the case.
Amie is trying to obtain crucial information in a customs duty application that, if successful, will see consumers paying more for chicken.
The price hike follows the International Trade Commission’s (Itac's) investigation that could lead to costing poultry importers a 200% duty increase (from 27% to 82%) on imported chicken.
The reason stemmed from the local industry being under strain.
Wolpert said last month that members of the South African Poultry Association (Sapa), including Rainbow, Astral, Afgri, Sovereign and Country Bird persuaded Itac to launch an investigation that could hammer importers by raising duties.
Amie obtained a copy of the duty document a week after it was gazetted on April 12, however, Itac's case is flawed, said Wolpert.
The importer instituted court action on Itac on Friday after studying the document. It is disputing the information used.
"Itac classified a lot of the crucial information as confidential even though we could clearly establish from the limited information available that their calculations and conclusions were incorrect."
"We have served court papers on Itac to release the so called confidential information to us", he said.
Itac's case may backfire
If the correct information were used, it should result in a strong case for a reduction in import tariff instead of an increase, said Wolpert.
He added that this would be a blessing for the poor.
In April Sapa's chief executive Kevin Lovell said that price hikes are needed for local chicken suppliers to survive.
"Local producers are eating cash at present. They need to increase prices or close up shop," Lovell told the Mail&Guardian.
Donald MacKay‚ a director at XA International Trade Advisors, who has been closely involved in the chicken tariff applications, was quoted in Business Day last month saying that while the local industry is under strain, it is questionable that all its woes are pinned on imports.
DA MP Wilmot James said in February that local producers were misguided in their claims that imported products threatened their business.
"Statistics provided by SA Revenue Services show that poultry imports equate to only 10% of local production," he told Sapa.
He added that the statistics indicated that poultry imports are on the decline.
"Chicken imports are therefore hardly a credible threat to local producers," said James.
- Fin24
