(South Africa) – The Association of Meat Importers and Exporters South Africa (AMIE SA) calls on the South African government to carefully reconsider the decision to reinstate AntiDumping Duties (ADDs) on chicken imports from key partners. In light of the high inflationary environment in the wake of the COVID-19 pandemic, the ongoing Russia-Ukraine war, as well as the avian influenza epidemic, imposing ADDs would have a profoundly negative impact on consumers and on food security in South Africa. The decrease in purchasing power of the South African consumer will only be exacerbated by an additional tariff imposed on chicken – the most widely consumed meat protein in the country. AMIE SA has undertaken extensive research and analysis, producing the report “Challenging Antidumping Duties: Supporting Food Security in South Africa. July 2023” which has been shared with the Department of Trade, Industry and Competition today. The report highlights several key factors that emphasize the importance of continued imports for the stability of the poultry industry and the well-being of consumers. These factors include:
- Economic and Consumer Considerations: Imposing ADDs would have adverse effects on consumers and the economy. The increase in import costs would lead to higher prices for chicken products, reducing affordability and choice for consumers. Moreover, it would place additional financial strain on low-income households, who rely heavily on chicken as a primary source of protein. Furthermore, the poultry industry, already facing challenges due to the outbreak of avian influenza, would experience further setbacks, potentially resulting in job losses and reduced investment.
- Avian Influenza Outbreak: Contrary to government assertions, the avian influenza outbreak is not confined to the Western Cape alone. Avian Influenza has been detected in the Southern and Eastern Cape and Mpumalanga. Officials from the South African Poultry Association (SAPA) have also confirmed cases in KwaZulu Natal, raising concerns about the potential spread of the disease and its impact on the poultry industry. Reimposing ADDs under such circumstances would further burden local producers and limit access to diverse poultry sources, compromising food security.
- Trading Relations with Established Trading Partners: South Africa has several important trade relationships with partners, such as the USA, European Union and the BRICS. Brazil is the largest chicken importer and, as South Africa prepares to host the upcoming BRICS Summit, it is crucial to maintain strong relations with this country. The AGOA trade agreement comes up for renewal in 2025, and this agreement too brings important benefits to South Africa. Imposing ADDs on these countries will inevitably strain trade relations and
Hinder South Africa’s participation in important trading partnerships that are essential for fostering economic growth, promoting investment, and expanding market opportunities.
AMIE SA strongly recommends a reconsideration of the decision to reinstate ADDs and proposes alternative solutions to support the poultry industry and ensure food security. These solutions include:
- Strengthening biosecurity measures and investing in disease control strategies to effectively manage the avian influenza outbreak and protect the domestic poultry industry. 2. Addressing the challenges including infrastructure deficiencies and logistical challenges.
- Enhancing cooperation and dialogue between industry stakeholders, including domestic producers and importers, to develop strategies that foster a sustainable and inclusive poultry industry. This can involve knowledge-sharing, technology transfer, and capacity-building programs to strengthen the domestic market.
- Prioritizing consumer welfare and affordability by removing barriers to imports and promoting healthy competition in the poultry market. This would ensure access to a diverse range of affordable chicken products for all South Africans. AMIE SA remains committed to advocating for evidence-based policies that support the growth and sustainability of the poultry industry while ensuring the well-being of consumers. The organization (AMIESA) calls on the South African government to consider the long-term implications of reimposing ADDs and to explore alternative measures that address the challenges faced by the industry
