I probably should retire to sleep, but I have just noticed a few articles about the possibility of “dumping” of poultry from the US into South Africa. I think the concerns are well placed and signal the devotion to growing the domestic poultry industry. This is a policy view of the government, industry and other stakeholders from the various Master Plans.
But I think some clarification is necessary. South Africa already affords the US a tariff-free quota of poultry of 70k tonnes. This was never fully utilised by the US for various reasons, including phytosanitary matters. So, when the figure surfaced in the news recently, it was mainly about clarifying some issues that limit the full utilisation.
But I don’t think it should be interpreted as allowing for an open season for imports of poultry at unfair levels for the domestic industry. No one necessarily intends to open doors for the “dumping” of poultry into South Africa.
Through the International Trade Administration Commission of South Africa, the country has a range of trade instruments to limit potential dumping, which involves selling products (poultry) to our country below the normal price in the country of origin.
While there is scope to import poultry for the domestic market (from the US, Brazil, the EU, and others), we must focus on improving the domestic production. Currently, South Africa imports around 300k tonnes of various poultry products, which make up roughly 20% of the annual consumption.
Therefore, balancing fair trade and supporting local production is a policy approach we will need to follow. Domestic production remains a priority.
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