<\/p>\n
Meat importers in a submission to the government are arguing there is no evidence there should still be tariffs on frozen bone-in chicken imports from Germany, the Netherlands and the United Kingdom.\u00a0<\/p>\n
The International Trade Administration Commission (Itac) is reviewing whether to extend the tariffs, which were set to expire in August, after a request by the SA Poultry Association (Sapa) on behalf of the poultry industry within the Southern African Customs Union.<\/p>\n
The duties were first imposed in 2015\/16 and extended in 2021 for another five years. <\/p>\n
The debate over whether there should be tariffs to prevent chicken being dumped in South Africa at lower prices than where it is produced highlights the tension between protecting local production and jobs and ensuring affordable protein for constrained consumers.\u00a0<\/p>\n
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The Association of Meat Importers and Exporters (Amie) says if Sapa succeeds in its bid to have tariffs extended, they will have been in place for 15 years.<\/p>\n
Citing evidence from the South African Reserve Bank, Amie argues that tariffs across the board \u2013 including on chicken from other regions and anti-dumping duties \u2013\u00a0 made frozen chicken more than 16.2% more expensive between 2012 and 2021.<\/p>\n
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Amie argues low-income consumers also need access to affordable protein.\u00a0<\/p>\n
Trade attorney, Kherina Narotam, at Commodity Trade Observer, which prepared Amie\u2019s submission, said the legal starting point for the review was important.<\/p>\n
\u201cThe law presumes these duties expire. A sunset review is a fresh test of current evidence, not an automatic renewal. The burden is on the applicant (the poultry industry) to demonstrate, with positive evidence, that allowing the duties to expire would probably lead to the continuation or recurrence of both dumping and material injury.\u201d<\/p>\n
In its submission asking for a review of the tariffs, Sapa said the frozen bone-in chicken was sold more cheaply in South Africa than in home markets estimating the Netherlands sold its chicken at prices 32.48% higher in its home market, while estimated average UK prices were 61.84% higher than in South Africa.<\/p>\n
Using export prices to Ghana as a proxy, it found that Germany sold chicken at prices that were roughly 425.64% higher in its domestic market, though no imports from Germany to South Africa were recorded in 2025.<\/p>\n
Imports are needed along with local production<\/p>\n
But Amie counters in its submission that the figures are not correct, do not make fair like-for-like comparisons and, particularly in the cases of Germany and the UK, rely on data that is not representative of the products actually under review. \u00a0<\/p>\n
Amie also argues European market conditions have changed significantly since the protective tariffs were introduced in 2015. Germany remains affected by avian influenza restrictions and its poultry production has declined; the UK is itself a net importer whose domestic production meets only around 80% of its requirements; and Dutch poultry is increasingly supplying demand within Europe. <\/p>\n
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These factors, Amie argues, need to be considered in assessing how likely it is that significant volumes would be redirected to South Africa if the duties expire.\u00a0<\/p>\n
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Paul Matthew, CEO of Amie, said South Africa should not frame the debate as a choice between domestic production and imports. \u201cSouth Africa needs a strong, competitive and growing domestic poultry industry. <\/p>\n
\u201cIt also needs responsible imports to supplement local production, strengthen food security and provide consumers with choice.\u201d <\/p>\n
\u201cThe challenge is to find the right balance.\u201d<\/p>\n
Matthew adds tariffs have consequences for consumers, \u201cso there must be clear evidence to justify extending them, particularly where extended and significantly higher duties are being proposed\u201d.<\/p>\n
FairPlay, an anti-dumping organisation, previously told Moneyweb that consumers gain little from cheap chicken imports, as importers keep high margins instead of passing savings on. Dumped chicken would hit small producers first and could devastate South Africa\u2019s largest agricultural industry, which is the poultry sector, it said.<\/p>\n
#Poultry #industry #meat #importers #pays #chicken #tariffs #stay<\/p>\n","protected":false},"excerpt":{"rendered":"
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