The Department of Trade and Industry is caught between a rock and hard place of sorts. On the one hand, it has to serve the interests of the local poultry sector, and, on the other, be seen as promoting “free” trade as a member of the World Trade Organisation (WTO).
For years, South African consumers, mainly township and rural households, have been enjoying benefits of cheap poultry products from other countries, which has enabled them to cope with rising food inflation. But soon, if an amicable solution is not reached between South Africa and the USA over the issue of poultry products, they could feel the financial pinch.
South African poultry industry has raised concerns that its operations are increasingly becoming unsustainable due to ‘unfair’ competition from imports from the USA and other countries. Producers complain of prices that are far lower than the lowest they could offer.
Stefanus (not his real name), a farmer from North West tells Transform SA Online in a telephone interview: “To say that we are going to close business is an understatement. We are doomed, if government does not interfere in time.
“What the Americans are doing is just unfair. The sad part is that this is directly in complicit with our government.”
He said his regular customers, mainly chains stores, are saying his poultry products are “out of their pocket” and have “a better” bargain elsewhere.
However, there are concerns that focus to renew the African Growth and Opportunities Act (Agoa) trade deal has taken off the dti’s interest in the poultry impasse. It remains to be seen how things pan out.
The United States opposes a South African anti-dumping measure of chicken legs, feet and wings. South Africa has attempted to compromise by imposing a quota just above the level at which the anti-dumping measures would be employed.
