South Africa poultry sector challenges US chicken quota in court over AGOA framework

Dispute unfolds as AGOA nears expiry and trade tensions widen

SOUTH AFRICA – The South African Poultry Association has taken the Department of Trade, Industry and Competition to court after Minister Parks Tau refused to remove a 72,000-tonne annual tariff-rate quota that allows US bone-in chicken into the country without anti-dumping duties.

Under the existing arrangement, US bone-in chicken remains subject to a 62% most-favoured-nation tariff, while SAPA maintains that import pricing still places domestic producers at a disadvantage due to what it describes as dumped products.

Available figures show that the quota has not been fully used, with imports recorded at 28,131 tonnes in 2023, then dropping to 5,956 tonnes in 2024 and rising to 12,251 tonnes in 2025, which is 17% of the allocation in the most recent year.

Even if the quota were fully utilised, it would represent less than 4% of domestic production and around 3% of consumption, which analysts say limits its competitive impact on the local market.

Government authorities are also considering the case alongside a Competition Commission probe into pricing and market structure in the poultry sector, which could overlap with issues raised in the court filing.

AGOA uncertainty and export strategy

The dispute is unfolding ahead of the expiry of the African Growth and Opportunity Act at the end of 2026, with uncertainty over renewal terms and possible adjustments to trade access for South African exporters.

Trade data shows South Africa’s agricultural surplus with the United States increasing from US$2m in 2016 to US$264m in 2025, while the surplus in sensitive product categories rose from US$94m to US$344m.

Policy observers argue that concentrating on a relatively small poultry quota risks diverting attention from higher-value export sectors that carry greater employment and revenue implications.

South African poultry producers currently export about 3% of output, or roughly 50,000 tonnes a year, reflecting limited participation in international markets despite domestic protection.

Industry stakeholders link the weak export performance to delays in implementing the 2019 Poultry Master Plan, including shortages of veterinary staff and certification systems required for export compliance.

Representatives from the sector say export expansion has become a central objective of the revised plan, with plans to increase shipments to neighbouring countries and to new markets in the Middle East and Europe.

The broader approach aims to spread revenue sources, reduce reliance on the domestic market, and strengthen competitiveness by increasing exposure to global demand conditions.

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