The argument that cheap chicken imports do not result in cheaper chicken for consumers was reinforced by FairPlay founder Francois Baird.
Baird was interviewed by Moneyweb on the proposed renewal of anti-dumping duties on poultry imports from the United Kingdom, Germany and the Netherlands.
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.
This dumped chicken then destroys the local industry, first impacting smaller-scale producers. Baird added that the poultry industry is the largest agricultural player in South Africa.
“FairPlay is in favour of free trade within World Trade Organisation rules. These rules allow for tariffs and for anti-dumping levies,” Baird said.
He noted that, while the large chicken producers have made good profits recently, in recent years they “lost 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”.
South African trade regulator ITAC has invited comments from affected parties on the anti-dumping review.