Sapa requests anti-dumping duties on ‘unfair’ chicken imports from 5 countries

By In view of Majola 1h ago

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DURBAN – The SA POULTRY (Sapa) association has requested anti-dumping duties on chicken imported from five countries, including Brazil and four countries of the European Union – Denmark, Ireland, Poland and Spain.

Sapa’s broiler organization chief executive, Izaak Breitenbach, said the organization had evidence that these countries dumped portions of frozen chicken into the South African market, resulting in unfair competition for local producers and cost jobs in the local industry.

“They bring frozen portions of chicken to South Africa, often at prices below their cost of production, and / or lower than they sell the same product in their home markets. This not only constitutes dumping under the rules of the World Trade Organization and South Africa, but it is unfair as it creates jobs in producing countries while stifling economic growth here, ”said Breitenbach.

Statistics showed South African chicken imports had increased by 400 percent over the past two decades, he said.

Breitenbach said that comparing this with other countries, South Africa’s current imports were 30 percent while those from countries like the United States and Brazil were only around 1 percent. hundred. South Africa was the fifth largest importer of the United States and Brazil.

According to Sapa, R 6.1 billion left the country with chicken imports costing 15,000 local jobs. The industry said it was not in the best interests of the South African poultry industry.

Sapa Chairman Aziz Sulliman said the imports affected not only large poultry companies, but also small black producers, who employed around 110,000 people directly and indirectly.

“The remedy is anti-dumping duty because if the government doesn’t protect us, we can’t grow. We also cannot transform a declining industry. “

Sulliman said they need protection against dumping, unreported imports, as well as imports that bypass tariffs illegally.

The request was for anti-dumping duties based on the difference between the selling prices of the frozen chicken portions in the producing country and the lower export price of the frozen chicken portions to South Africa, with margins of dumping of up to 201 percent.

The request has been submitted to the South African Commission for the Administration of International Trade (Itac) which will investigate the complaint before making a recommendation to the Minister of Trade, Industry and Competition. The process should take around 12 to 18 months.

Sapa said the demand was supported by a number of organizations and entities, from grain producers, smallholder farmers and contract producers to the majority chicken industry union, and dependent companies in the chain. of poultry value, such as equipment suppliers and feed suppliers.

“The situation has become more precarious since Covid-19 disrupted retailing around the world, so chicken-producing countries are all facing overflowing cold stores and looking for markets to target with this surplus. We are expecting another attack and it is crucial for us to be vigilant and to use the trade remedies available to us, ”said Breitenbach.

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Sapa requests anti-dumping duties on ‘unfair’ chicken imports from 5 countries

Source link Sapa requests anti-dumping duties on ‘unfair’ chicken imports from 5 countries

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