The South African government is considering incentives to increase chicken imports at a time when local poultry producers are in serious difficulties.
Izaak Breitenbach of the SA Poultry Association (SAPA) has called for an “emergency fund” to support egg and chicken farmers who are in trouble because the ravages of bird flu have added to a range of other difficulties they face. Many small-scale farmers may be forced to close.
The good news in Breitenbach’s statement was that the industry is on the road to recovery from bird flu, which appears to have been contained. Because of a range of extraordinary (and presumably costly) measures to secure local supply, he expects that any chicken shortage at the end of this year will be minimal.
The bad news is that poultry farmers are in financial distress, particularly because of the lack of compensation for chickens they are ordered to cull to prevent the spread of bird flu. The number of chickens culled so far this year has risen to 8.5 million.
“The outbreak has put many livelihoods at risk,” Breitenbach said. “Farmers are having a difficult time recovering costs, especially during a period of recovery. A change in policy is needed to support impacted producers, and such a cost recovery mechanism will serve well to keep consumer prices low and our farmers afloat.”
The state should support farmers rather than refund chicken import tariffs through a rebate scheme.
“Creating an emergency fund for farmers to recover costs and repopulate their flocks is much more beneficial to local consumers, producers, and the South African economy, than returning the taxes paid on a small portion of imports that will only arrive in the new year.
“The suggested rebate is based on a supposed shortage of chicken which may not happen, and there is little expectation that any rebate on imports would reduce the consumer price of poultry,” Breitenbach said.
