Chicken producers want anti-dumping tariffs

Chicken producers want anti-dumping tariffs

2014-06-30 16:07

Johannesburg - The possible imposition of anti-dumping tariffs on certain chicken cuts is unnecessary, the Association of Meat Importers and Exporters (Amie) said on Monday.

Local producers had appealed to government to apply anti-dumping duties on certain cuts from the United Kingdom, Germany, and the Netherlands, CEO David Wolpert said in a statement.

The International Trade Administration Commission (Itac) started investigating the matter in October last year.

"The whole exercise is nothing more than another attack on a relatively small import industry representing less than 10% of the chicken market in an effort to boost prices at the tills," Wolpert said.

The investigation covered 2012, when "exceptional circumstances" affected the local poultry industry.

These included major regulated cost increases in labour, power, and fuel, plus high maize prices of around R3 000 per metric ton, compared to the current price of around R1 800 per metric ton.

"The investigation period of 2012 is so far removed from current actual market conditions that any investigation over that period would not bear any resemblance to the current market situation," said Wolpert.

SA Poultry Association CEO Kevin Lovell said the dumping of certain poultry parts was unfair trade.

"No one ever wins a trade war, it is just a series of skirmishes. Whatever Itac do decide, it won't resolve the question posed by a global economy to a local market," he said.

The fundamental difference was South Africa was a balanced market, where all parts of the chicken were used, except the blood and feathers, while in Europe only selected parts were eaten.

"They sell that [unused] product at whatever price they could get and that's where the dumping originates," said Lovell.

"Itac are well positioned to make the distinction of the effects caused by dumping and the effects caused by other factors.

"The action is still going for a number of months. What is expected is a temporary or provisional measure."

Following this, all parties would have a chance to present new arguments.

  • John Greystoke - 2014-06-30 16:32

    I will pay the best prize for the best product. The South African chicken breeders are not cost effective. One also hear of meet being injected with brine to make it juicer or something. I do not have much confidence in the chicken breeders and their products!

      MM - 2014-06-30 17:31

      John, unfortunately, there are a few more forces at play which you need to take into account... let me know what you think.. 1. Brazil have tax breaks for value adding.. so the grain farmers value add to have lower taxes on their products making it cheaper to produce.. 2. Brazil naturally have higher average rain fall and temperature making it easier to grow larger chicken.. 3. The EU have a no tax treaty with SA, and this has helped brazil get their chicken into sa.. 4. Once our chicken produces collapse due to dumping, their won't be any competition and so prices will naturally rise.. after skills move on. 5. What product do you sell? or what does your company do? If their are 30000 less jobs in the sa market, there will be 30000 less people buying your product... maybe you'll be looking for a job next week...

      John Greystoke - 2014-06-30 18:24

      Hi MM, your arguments hold water. Previous articles mention that our chickens do go to market to small. Truth be told, I am willing to buy Made in South Africa chickens, if the price difference is not to big. This brine injected chicken story is of concern, is it true? Howzat Zuma. HeHeHe! I eat almost no veggies, beans and peas mostly. Mostly pork! Some people regard pork as a vegetable! Jane likes chicken and I like pork. So we sometimes have two different types of meat on our plates!

  • Paul Nel - 2014-06-30 18:42

    Government interference with our economy our down fall. If we cannot produce chickens at market related prices, we should stop that product! AMCU, COSATU and other militant claims to increase production costs should be blamed. Bloody communists

  • Matthew Van Rensburg - 2014-06-30 20:23

    Anti dumping rubbish. The injected crap we get sold here is banned in the countries mentioned in article. What gets imported is far superior to whats produced locally. Its simply a matter of bribing the right officials to protect a dodgy local market but trying to manipulate a gullible public.

  • John Greystoke - 2014-06-30 21:18

    Up to 30% brine! They want to reduce it to 8%. Are our chickens so tough that they need to inject them with brine?

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