<\/p>\n
With dumping duties on frozen bone-in poultry from Germany, the Netherlands and the UK set to expire on Saturday (August 22), the International Trade Administration Commission (Itac) initiated a sunset review of the tariffs to determine whether they should be modified or extended.<\/p>\n
An application for their renewal was made by the South African Poultry Association (Sapa) on behalf of the poultry industry within the Southern African Customs Union.<\/p>\n
Read:<\/p>\n
Since August 2021, South Africa\u2019s anti-dumping duties on frozen bone-in chicken have ranged between 31.3% and 73.33% for Germany, 3.86% and 22.81% for the Netherlands, and 12.07% and 30.99% for the UK, with rates differing per exporting firm.<\/p>\n
In a Friday (14 August) government gazette announcing the review, Sapa alleges that the expiry of the duties would likely lead to the continuation and recurrence of dumping, and to \u201cmaterial injury\u201d to the local poultry industry.<\/p>\n
Itac concluded that Sapa had submitted sufficient evidence to establish that a review should take place.<\/p>\n
Information has been provided by various brands belonging to the country\u2019s largest chicken producers \u2013 Astral Foods, Rainbow Chicken, and the unlisted Country Bird Holdings and Sovereign Foods.<\/p>\n
\u2018Dumping\u2019 vs supplying<\/p>\n
More than 80% of South Africa\u2019s chicken imports originate from Brazil, according to anti-dumping advocacy body FairPlay.<\/p>\n
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However, the review of the\u00a0European\u00a0tariffs highlights the tension between protecting the local poultry industry and jobs, versus ensuring cheaper protein for millions of low-income consumers.<\/p>\n
Read:<\/p>\n
To support its case, Sapa compared the average price at which poultry is sold in each exporting country with the price at which it would be sold in South Africa during 2025.<\/p>\n
Using export prices to Ghana as a proxy, it found that Germany sold chicken at 425.64% below its domestic price, though no imports from Germany to South Africa were recorded in 2025.<\/p>\n
The Netherlands sold its chicken 32.48% more cheaply, while UK prices to South Africa were 61.84% below an estimated home-market average price.<\/p>\n
The local poultry industry has previously stressed that it is not opposed to imports, but to dumping.<\/p>\n
In its interim results to end-March, Astral, the country\u2019s largest chicken producer, reported high profits, with headline earnings up by 467%, though poultry profits tend to be cyclical.<\/p>\n
Read:
Astral Foods lifts interim dividend as earnings rocket
Rainbow Chicken shares rise to four-month high on strong earnings forecast<\/p>\n
FairPlay founder Francois Baird said while the large chicken producers have made good profits recently, in recent years they \u201clost R9 billion due to bird flu and spent enormous sums generating their own electricity during load shedding, coping with water scarcity, and dealing with expensive transport due to infrastructure problems\u201d.<\/p>\n
He said poultry producers abroad sell white meat in their own markets, and are left with a surplus of brown meat and bone-in cuts, which they sell far more cheaply elsewhere.<\/p>\n
This dumped chicken then destroys the local industry, first impacting smaller-scale producers, said Baird, adding that the poultry industry is the largest agricultural player in South Africa.<\/p>\n
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Consumer focus<\/p>\n
FairPlay argues that consumers don\u2019t benefit from low-priced dumped chicken, saying importers make a high profit and do not \u201cpass the true benefit on\u201d.<\/p>\n
But \u201cto support consumers\u2019 access to affordable protein, FairPlay has been asking for VAT on those chicken pieces consumed by poor people to be lifted as an immediate way to help poverty-stricken households\u201d.<\/p>\n
\u201cFairPlay is in favour of free trade within World Trade Organisation rules. These rules allow for tariffs and for anti-dumping levies,\u201d Baird said.<\/p>\n
Itac has invited comments from other affected parties on the review.<\/p>\n
Paul Matthew, CEO of the Association of Meat Importers and Exporters of South Africa (Amie SA), which has previously criticised the dumping tariffs, says the association \u201chas requested the full application from Itac and is assessing the review\u201d.<\/p>\n
\u201cGiven the negligible 2025 trade volumes, only a very limited number of parties may be able to respond,\u201d he added.<\/p>\n
In July, South Africa hiked the peanut butter tariff on imports mainly from India from a nominal flat fee to 20% of the product\u2019s value, after RCL Foods made an application for a 25% tariff.<\/p>\n
#Itac #reviews #European #chicken #antidumping #tariffs<\/p>\n","protected":false},"excerpt":{"rendered":"
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