SAPA expresses concerns over proposed rebates for chicken imports

SOUTH AFRICA – The South African Poultry Association (SAPA) has expressed concerns over the International Trade Administration Commission’s (Itac) recommendation to implement rebates for certain frozen poultry imports.

 Itac suggested these rebates to address alleged shortages in the market. However, SAPA considered them unnecessary, unjustified, and potentially damaging to the local poultry industry.

SAPA argued that neither poultry farmers nor industry analysts anticipate shortages now that the threat of Avian Influenza has been mitigated.

The association highlighted that the poultry sector’s significant investments, amounting to R2.1 billion in the last five years, have substantially increased capacity, making shortages unlikely.

Itac’s recommendation included 65 permits for importers to claim rebates on their orders, with some applying to bone-in chicken.

SAPA contended that these rebates contradict the anti-dumping duties established in the Poultry Sector Master Plan to address chicken dumping.

SAPA Broiler GM Izaak Breitenbach emphasized that the rebates encourage additional chicken imports when the country does not need them, potentially causing further harm to the local poultry industry already facing challenges.

Breitenbach questioned the issuance of import permits for dumped poultry products when Itac acknowledged the harm caused by such products to the local industry.

While SAPA criticizes the proposed rebates, the Association of Meat Importers and Exporters of Southern Africa (AMIE) welcomes Itac’s recommendation.

The association argued that import duties are a regressive form of tax that directly impacts consumers and believes that implementing rebates on boneless and bone-in chicken cuts will help keep chicken prices in check for consumers.

Food distributor Hume International also supported the recommended rebates, citing significant price increases for various chicken products in 2023, driven by the impact of bird flu.

Hume asserted that South Africa does not produce enough chicken to meet local demand, making imports an essential complement and price regulator in the market.

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