The South African poultry industry has made tremendous progress in its recovery, owing partly to the introduction of anti-dumping levies on imported chicken. According to the South African Poultry Association (SAPA), this policy has played an important role in defending the local market from unfair trading practices. The World Trade Organization (WTO) defines dumping as when a country sells surplus products at prices lower than their typical value, causing injury to industries of the importing country. SAPA’s president, Izaak Breitenbach, stated that dumping has long been a problem for the South African chicken industry, but recent steps have offered much-needed respite.
The local poultry industry faced a severe crisis in 2023 when an outbreak of bird flu led to significant losses, with SAPA estimating that 7.5 million birds were culled. This devastating event caused billions of rand in damages. However, the implementation of anti-dumping duties has given the sector a chance to recover, stabilize, and enhance its efficiency. Breitenbach noted that SAPA does not plan to request additional duties, as the current measures have proven effective.
The issue of anti-dumping duties, however, remains contentious. Frozen food importer Hume International has criticized these measures, arguing that they could harm broader economic interests. According to Professor Lawrence Edwards from the University of Cape Town’s School of Economics, it is crucial to distinguish between general tariffs and anti-dumping duties. General tariffs apply to all countries outside preferential trade agreements, whereas anti-dumping duties target specific unfair practices. These duties can only be imposed following thorough investigations that prove both dumping and harm to the local industry. Additionally, anti-dumping duties are temporary, typically lasting a maximum of five years unless extended after further review.
Edwards explained that anti-dumping duties are not arbitrarily increased but require evidence-based investigations. For example, South Africa has long imposed such duties on US poultry imports, with several extensions granted since 2000. In April 2024, the International Trade Administration recommended another extension, which was approved by the Minister. However, Hume International’s concerns center on the negotiated exemption under the tariff rate quota (TRQ) system, which allows a specific amount of US poultry to be imported without these duties. This exemption was originally negotiated to ensure South Africa’s continued participation in the African Growth and Opportunity Act (AGOA), which grants duty-free access to the US market for numerous products.
The imposition of anti-dumping duties has undeniably impacted consumer prices. Edwards highlighted that these duties, along with general tariffs, tend to raise poultry prices, affecting low-income households that rely on chicken as an affordable protein source. For instance, the anti-dumping duty on US poultry includes a specific tariff of 940 cents per kilogram of frozen chicken. Eliminating the TRQ exemption could further increase costs for consumers, disproportionately affecting poorer households.
While local poultry producers benefit from reduced competition and higher prices, Edwards warned that these advantages come at the expense of South African consumers. Breitenbach countered that the industry’s goal is not to seek harsher duties but to end dumping practices. He stated that the current measures have enabled local producers to recover, improve efficiency, and provide chicken at competitive prices.
In conclusion, while anti-dumping duties have helped the South African poultry sector rebound, the debate over their broader economic implications continues. Balancing the interests of local producers and consumers remains a critical challenge.
