Dumping and predatory trade

Another undercut from Oz

Australia has once again shown why FairPlay has urged the SA Revenue Service (SARS) to investigate whether Australian chicken drumsticks are being imported into South Africa at fair or dumped prices.

Official import statistics for April show that Australia continued to export chicken drumsticks to South Africa at astonishingly low prices – lower than all other countries and less than a quarter of the South African producer price.

Volumes are not large – 121 tonnes of drumsticks costing a total of R1 million – but the average declared price was R8.82/kg compared to the South African producer price of around R36/kg.

In April Australian drumsticks once again undercut major producers such as Brazil (R15.07/kg), the United States (R11.52/kg) and Argentina (R11.65/kg).

In addition, Australia landed 71 tonnes of unspecified bone-in portions (classified as “other”) at R10.60/kg in April. These could be leg quarters, drumsticks, thighs or wings.

This is happening month after month, and SARS needs to establish whether or not it is being paid what it is due when those Australian consignments are imported.