Dumping and predatory trade

Stopping dumping is a “watershed” for SA poultry

The South African poultry industry has reacted with joy and relief to the imposition of provisional anti-dumping duties on chicken from Brazil and four European Union countries.

Writing in the industry’s latest Poultry Bulletin, Aziz Sulliman, chairman of the South African Poultry Association (SAPA) explained what the findings by the trade regulator ITAC and the decision by SARS meant to the industry.

“Chicken producers have suffered under the suppressing effect of predatory trade for years, which has kept an inherently healthy and globally efficient industry from expanding and developing. Market share of our local producers was eroded by the leftovers of the Brazilian and EU industries, dumped here to elbow South African products off retailers’ shelves,” he said.

“ITAC’s findings confirm again that dumping is real and has inflicted material injury on this crucial local industry which plays such a key role in job creation and food security. Moreover, it has found that there is an indisputable link between dumping and the damage. “This decision signals a watershed moment for the poultry industry.”

Sulliman said the elimination of unfair trade would stimulate local production, which in turn would create more jobs and bring transformation and economic growth to the benefit of South Africa as a whole.

“In the coming year we look forward to a revision of all trade measures and an increase in growth to catch up to the industry’s real production capacity, and we are hopeful to bring avian flu under control. 

“As the second biggest agriculture sector, poultry’s growth will reverberate along a vast value chain that includes the grain industry, transport, pharmacology, packaging, retail and so much more,” he concluded.