Picture: for illustration purposes
South Africa's poultry industry has been severely hit by numerous bird flu outbreaks, evident by the culling of about 2.7 million chickens initiated by the Department of Agriculture, Land Reform and Rural Development. As of 21 September, the country has revealed total losses of around 1.4 million chickens owing to 50 HPAI H7 and 10 HPAI H5 outbreaks. As a result, the imminent possibility of a food security crisis has sparked significant anxiety.
Acknowledging the looming crisis, Ebrahim Patel, Minister of Trade, Industry and Competition, has directed the Trade Commission Itac to explore the feasibility of a rebate on fresh, frozen, or chilled chicken meat and edible offal. He stated that the mass culling and the depletion of locally available poultry could inflict potent implications on the accessibility and prices of poultry, a staple protein source in South Africa.
In a bid to provide a temporary respite from the anticipated food security crisis, Patel requested Itac to expedite a rebate on import duties. Patel reinstated the anti-dumping duties for several countries in August, ranging from less than 3% for some firms in Poland and Ireland to a massive 265% for a company in Brazil.
Paul Matthew, CEO of the Association of Meat Importers and Exporters South Africa (Amie), welcomed the announcement stating that it demonstrates proactive action by the Minister in tackling the challenging bird flu crisis. However, the South African Poultry Association (Sapa) criticized the idea of import duty removal and stated that the grim reality does not necessitate such a rebate.
Meanwhile, the poultry industry has submitted applications to import around 22 million fertilized eggs to address the potential shortage, which the agriculture department confirmed has been processed.
Although the local market reels under the double whammy of continued dumping of chicken and bird flu outbreaks, Izaak Breitenbach, General Manager of Sapa, believes there are sufficient chicken supplies available globally that makes rebate unnecessary. The total losses endured by the poultry industry, with only three companies publishing their financial results thus far, exceed R500 million.