The poultry industry in South Africa is eagerly waiting for an overhaul of the country’s Poultry Master Plan, which came into effect about a year ago but has been ineffective, according to players in the industry. Industry players, led by the South African Poultry Association, have put forward several issues with the new master plan that require urgent attention, especially on trade tariffs, illegal imports, and exports. The revised master plan is expected to place more emphasis on restructuring the tariffs and enhancing the competitiveness of the industry globally.
Izaak Breitenbach, general manager of SAPA, recently articulated the industry’s grievances and identified proposed action points for the revised plan. A new Poultry Master Plan, developed together with the government, also seeks to address a number of challenges facing the industry, such as the unfair competition from illegal imports of chicken, the failure by AgriSeta to pay for training, and the fact that farmers do not vaccinate their poultry against HPAI, or bird flu. It also emerged that one of the key demands from SAPA was the restructuring of trade tariffs to avoid what has long been considered under-declaration of chicken imports. It said the association had received concerns that some importers were misdeclaring chicken products under incorrect tariff headings that had allowed them to dodge proper duties. ITAC – the South African International Trade Administration Commission – has already been investigating the matter and has presented a report to the government, but stakeholders would like to see faster implementation of recommendations. Breitenbach said he was hopeful that the new trade minister, Parks Tau, would give this matter due consideration after his predecessor, Ebrahim Patel, assured that tariff restructuring was one of the topmost concerns of the new administration.
Other matters of urgency within the sector include scrapping the VAT on poultry meat. Poultry is a source of protein for millions of South Africans. Removing VAT on such commodities would go a long way towards alleviating the pressure on customers, especially those households classified as low-income. Breitenbach further emphasized the urgent approval of vaccines against bird flu. These continuing outbreaks of HPAI have gradually become a menace in poultry farms throughout the country, characterized by massive losses of birds. Consequently, industry players are challenging the ministers of agriculture and the DTIC to hasten the process of approval for vaccines to protect the population and stabilize production. In addition to these home front issues, the industry wants a more aggressive export strategy. Breitenbach urged more efforts to win export markets in the European Union, the UK, the UAE, and Saudi Arabia. Expanding exports is considered an important element in the long-term sustainability of the industry.
During a recent meeting with SAPA, Minister Parks Tau highlighted four key areas that would be the focal point of the new master plan: transformation, localization, skills development, and export promotion. In support of Tau’s sentiments, general government imperatives include stimulating economic growth and job opportunities, particularly within sectors that are set to be intensive in the uptake of employees, such as poultry farming. Breitenbach said the revised plan would retain the original plan’s five pillars, which are increasing local production, job creation, competitiveness, exports, and industry transformation, while incorporating these new focus areas.
With follow-up meetings planned between SAPA and the government on the revised Poultry Master Plan, industry players hope for better policies concerning their key issues. Indeed, the fact that the updated plan has taken on board points such as tariff restructuring, VAT removal, bird flu vaccination, and export drive points is indicative of a more intensive and competitive poultry industry in South Africa. Because the foregoing represents a critical issue, the government and industry continue to work together on this matter. How fast the execution pace is and how much commitment there is to domestic challenges and global market opportunities will be crucial factors in the success of the revised master plan.
