In several recent articles, Paul Matthew, CEO of the meat importers’ association AMIE, has projected that next year there will be a massive disparity between local chicken supply and chicken consumption, due to the impact of bird flu.
He puts this shortage – which would have to be met by imports – at 847 000 tonnes.
What Matthew doesn’t say is that this would require at least a doubling of chicken imports. And, of course, of importers’ revenues.
Total chicken imports last year were 360 000 tonnes, of which 170 000 tonnes was chicken and chicken pieces, and 190 000 tonnes was mechanically deboned meat (MDM), a paste used to make processed meats and which comes in duty-free.
“Matthew is looking at increasing total chicken imports by 2.3 times, or a five-fold increase if he’s considering chicken imports excluding MDM,” FairPlay’s Francois Baird said in a statement.
“He’s projecting a doubling or even quintupling, of import revenues – and profits would be even higher if importers, as usual, do not pass on the huge discount that rebates would give them.”
Importers have not denied making fat profits because chicken imported at low or dumped prices sells at market-related ones. Now they are hoping for even more profits on higher import volumes, with the opportunity for higher margins because of import rebates.
Baird said the importer’s projections “may just be propaganda to muscle the government into an entirely unnecessary rebate decision from which only importers would benefit”.
He noted that local poultry producers say supply and demand will be in balance next year, and advised Trade and Industry minister Ebrahim Patel to take the importers’ calculations with “bags and bags of salt”.
“Importers are notably absent from giving up profits to feed the nation, but quick to the trough,” Baird said.
