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Claims by the EU that subsidies have no impact on chicken exports to South Africa are both false and misleading..

 

The EU annually provides nearly 80 billion Euros in agricultural subsidies to producers in Europe, including chicken producers.

 

In fact nearly 20 percent of farm income in Europe is derived from subsidies under the EU’s Common Agricultural Policy.

 

The largest single expenditure in the EU budget is support for agriculture. Around 39 percent of the EU budget is spent on agriculture, with about 30 percent going directly to farmers and the agricultural market.

 

Surprisingly, these subsidies are not tied to production levels.
“The amount of support they receive is not linked to the quantities they produce, and is designed to provide EU farmers with a safety net against  volatile market prices”

 

Recent claims by the EU that subsidies do not impact a level playing field between South African and European producers are deliberately misleading since the reference is to direct export subsidies that were eliminated long ago.

 

Massive unconditional subsidies to European producer under CAP make dumping of surplus chicken into South Africa below the cost of production all the more financially viable.

 

Download in PDF: BG Subsidies

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