In April, South Africa witnessed a significant surge in chicken imports, marking a 50.6% increase from March and achieving the highest import levels since March 2023. This notable rise is attributed to government tariff reductions aimed at mitigating potential shortages stemming from avian influenza outbreaks. Analyst Anthony Clark, founder of Smalltalkdaily, in his analysis of the latest data from the South African Revenue Service, highlights that the largest increases were seen in imported offal and mechanically-deboned meat. Offal volumes soared by 118%, while mechanically deboned meat, a paste commonly used in food products, climbed by 26.9%. Clark suggests that this trend might reflect a constrained consumer market gravitating towards more affordable protein options.
The local poultry industry has expressed strong opposition to the trade, industry, and competition minister Ebrahim Patel’s decision to provide rebates on chicken imports during the first quarter of the year. This rebate decision was particularly contentious as the domestic poultry sector had already incurred substantial costs to avert shortages in late 2023 due to severe outbreaks of highly pathogenic avian influenza in key production areas. The South African Poultry Association (SAPA) led a successful lobbying effort to convince the department that there were no actual poultry shortages caused by the avian influenza outbreaks. As a result, the department decided not to extend the import license tariff rebate system into the second quarter of 2024, a decision that brings some relief to the struggling local poultry sector.
Clark’s analysis identifies Brazil, the USA, and Argentina as the primary sources of poultry imports into South Africa. In total, April saw poultry imports reaching 45,332 tonnes, an increase of 15,221 tonnes from March. The monetary value of these imports was R562.6 million, representing a 52.3% rise compared to March. Of the total poultry imports, 95.6% constituted chicken meat or related products, amounting to a value of R492.4 million.
The data shows a significant rise in offal volumes, which surged from 8,334 tonnes in March to 15,413 tonnes in April. Mechanically-deboned meat also saw a considerable increase, climbing by 26.9% to 18,471 tonnes. Additionally, bone-in portions rose by 15.6%, amounting to an increase of 700 tonnes to reach 5,193 tonnes.
This sharp rise in imports, particularly in offal and mechanically-deboned meat, suggests a shift in consumer purchasing behavior towards more cost-effective protein sources amidst economic constraints. The decision not to renew the import tariff rebates for the second quarter of 2024 is seen as a positive development for the local poultry industry, which has been grappling with the financial burdens imposed by efforts to control avian influenza outbreaks and maintain supply.
The dynamics of South Africa’s poultry market continue to evolve, influenced by both global trade policies and domestic economic pressures. The increase in imports, while temporarily addressing potential shortages, underscores the delicate balance between supporting local industry and meeting consumer demand at affordable prices. As the local poultry sector navigates these challenges, the cessation of import tariff rebates may provide a much-needed respite, allowing domestic producers to recover and stabilize in the face of ongoing economic and health-related adversities.
The significant rise in poultry imports in April, driven by government tariff cuts, reflects a response to potential shortages due to avian influenza. The subsequent discontinuation of these tariff rebates for the second quarter represents a strategic shift aimed at supporting the beleaguered local poultry industry. The interplay between import policies and domestic market conditions continues to shape the landscape of South Africa’s poultry sector, highlighting the ongoing need for balanced and responsive trade measures.
