Moves to rescue SA's poultry industry

A national committee consisting of government and industry representatives has been established to address difficulties faced by the poultry industry‚ which has seen the closure of factories and job cuts as it battles to fend off competition from cheap imports.

The departments of trade and industry and agriculture‚ forestry and fisheries are participating in the committee which would develop a "comprehensive strategy to address these challenges in a holistic and sustainable manner"‚ trade and industry spokesman Sidwell Medupe said Friday.

He also noted that poultry producers could apply to the International Trade Administration Commission (Itac) through the normal processes for further relief if this was required. Itac is currently far advanced with an investigation into the need for a safeguard duty on imported frozen bone-in chicken portions from the European Union.

No import duties are imposed on these imports because of the preferential trade agreement between SA and the EU.

Last year anti-dumping measures ranging from 3‚86% to 73‚33% were imposed on frozen bone-in chicken pieces from Germany‚ the Netherlands and the United Kingdom.

A number of European countries such as Denmark‚ France‚ Germany‚ Hungary‚ the Netherlands and Poland as well as Israel are experiencing outbreaks of highly pathogenic avian fluand SA has banned poultry imports from them.

"The Department of Trade and Industry has noted the concerns raised by the poultry industry in SA especially in relations to the increase in imports of poultry products. The government has been working with the domestic industry to address the challenges in the industry‚" Medupe said in a statement.

"Over the last three years‚ upon application by the industry through Itac a number of actions were taken by the government to address the challenges in the industry. The actions vary from increase in tariffs covering a number of poultry products in line with SA's international commitments to imposing trade remedies where evidence indicates dumping of poultry in the South African market or where there is a surge in imports."

In 2013‚ the import duty on a number of poultry products was increased significantly and currently stand at 82% for whole birds‚ 31% for carcasses‚ 12% for boneless cuts‚ 30% for offal and 37% for bone in portions for imports from the US and Brazil.

The agreement reached between the government and the US as a condition for the country's continued enjoyment of benefits under the US Growth and Opportunity Act means that no anti-dumping duties are paid on about 65 000 tons of bone in chicken portions annually.

Medupe said the departments of trade and industry and agriculture‚forestry and fisheries were working on opening new markets for South African poultry exports.

"Recently new markets in the Middle East have been opened and present a further opportunity for export to the domestic poultry industry. The Department of Trade and Industry is in the process of considering the designation of domestic poultry products for purposes of public procurement." - BusinessLIVE