So, were the rebates to blame for the surge in chicken imports in January? The first tranche of rebates is effective from January to March this year, so this could be a plausible explanation.
Local producers, however, do not think so and suspected the culprit is more likely to be harbour congestion in December, resulting in a rush of imports in January.
The application process for rebate permits only opened at the end of January, probably too late to have an impact on import volumes for that month.
Nevertheless, the numbers are interesting and will form the basis of any future assessment of how the rebates are working.
- Bone-in cuts: The rebates will reduce import tariffs for non-EU countries from 62% to 37%. Imports in January totalled 5 360 tonnes, an 11.5% increase on December and 9.8% higher than January 2023.
- Boneless cuts: The rebates bring tariffs down from 42% to 12%. January imports were 757 tonnes, up 42.2% monthly and 52.5% annually.
- Offal (including chicken livers, heads and feet): Rebates will cut tariffs to zero from the previous 30%. Imports in January were 8 308 tonnes, 32% higher than in December, but 1.9% below January 2023.
- Carcasses: Rebates will reduce import tariffs from 31% down to zero. January imports totalled 1 848 tonnes, 195% above December and 236% higher than the previous year.
Local chicken farmers will be watching these numbers with consternation. They maintain there is no shortage on the local market, so the rebates are unnecessary and will result in a market-distorting surplus.
Chicken importers, seeing more fat profits to come as the rebates take effect, will be rubbing their hands with glee.
