Publications
Partners
Cape Town - Tripartite discussions between industry, labour and government should be convened by the end of November in order to deal with concerns about job losses raised by the poultry industry.
In June 15 years of duties on US chicken imports were scrapped and opened the door to 65 000 tonnes a year, which adds to products already being imported from the EU and Brazil.
Poultry imports for the first half of 2016 totalled 288 081 tonnes, with the EU accounting for 45.5% and Brazil contributing 43.2%, the Sapa said. The remainder was mostly imported from the United States.
South Africa consumes the most chicken on the continent, but many are facing the threat of closure because of an import-driven price war, South African Poultry Association (Sapa) chief executive Kevin Lovell told Reuters.
"It is our firm belief and considered view that our government must rise to the occasion and join hands with both labour and industry in getting a package of measures to defend the industry," Fawu said in a statement issued on Sunday.
The union pointed out that the poultry industry is still labour intensive, yet pays low wages. It wants the industry to be saved from collapse "in the light of dire socio-economic consequences that goes with massive job losses, estimated to be in tens of thousands".
Fawu has noted that the factors mentioned for possible closures of factories and down-scaling of operations in the industry revolve around local cost of feed as well as "dumping" of products from abroad. Information received by Fawu indicates that - with the drought as a further exacerbating factor - the cost of feed has become the biggest input cost, even ahead of labour costs.
As for "dumping", Fawu said it is aware of the issue relating to increased inflows of chicken products from Brazil, the European Union and other jurisdictions like the US under Agoa, which have placed pressure on the industry.
READ: Cheap imports threaten SA poultry producers
"We call on the sector to be strategic in dealing with these matters and not embark on knee-jerk reactions. Government should come to the party. Therefore, as stakeholders, we should be able arrive at an agreement to save the industry from being decimated by feed cost and foreign dumping - especially the latter," said Fawu.
City Press reported that more than 1 000 jobs at KwaZulu Natal’s most iconic chicken producer, Rainbow Chicken, are under threat, for instance.
About a dozen smaller producers have closed or been sold, according to Lovell. He said at the factory gate level the price difference is substantial compared to imported products.
Leading South African producer Astral, based near Pretoria, has said that it had to cut jobs because of the record level of imports and rising feed costs as the region has been ravaged by drought.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
