Poultry impasse leaves SA factories idle and jobs on the line

While there was a sigh of relief after SA partially lifted the ban on poultry due to bird flu, Brazil authorities refused to accept the wording on SA’s import health certificate, leaving importers without Brazil’s stock high and dry a week later.

“Some of our processors had been forced to lay off staff because factories were silent. The fact that we still can’t import mechanically deboned meat (MDM) is disastrous for our members,” said Gordon Nicoll, chair of Sampa, a voluntary association of stakeholders in the meat processing sector.

“Even if stock is shipped immediately, we will most likely only receive it in August, which means factories have lain idle for three months. No manufacturing business can sustain that,” he said.

Protein scarcity drives up food prices

The shortage of MDM meant stocks of affordable protein in the country were critically low, which had resulted in a rise in food prices, Nicoll said.

“With beef prices also significantly up, meat and protein have become much more expensive for South Africans.

“In a country where malnutrition is a real problem and where most of the population is struggling to survive, this is catastrophic.

“We are urgently calling on Brazil and South Africa to find a solution to this impasse before food prices rise even more, more jobs are lost and more businesses closed,” he said.

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In addition to food shortages and rising prices, tens of thousands of jobs were at risk because of the ban, with the meat processing industry employing more than 125 000 people, Nicoll warned.

A call for vaccine investment and regulatory reform

Agricultural economist Wandile Sihlobo said the outbreak served as a reminder for South Africa to invest in vaccine development and maintain an agile regulatory system that facilitates the commercial registration and release of vaccines when necessary

“Over the years, the domestic poultry industry which has increased its production of poultry, being one of the most affordable proteins in the country, also faces rising demand.

“As a result, South Africa remains a net importer of mechanically deboned meat. This import exposure always raises a range of concerns when there are glitches in the supplying countries,” Sihlobo said.

Regionalised ban seen as a more viable approach

In recognition of Brazil’s significant influence on the global poultry supply, some food processors have raised concerns about potential disruptions to their supply chains.

“The intention, I believe, was to urge the South African regulators to soften the restrictions and not apply a broad approach to Brazil, but a regionalised approach, which is now the active approach. After all, the outbreak was mainly in the state of Rio Grande do Sul,” he said.

The temporary ban was necessary to prevent the transfer of any diseases and protect domestic poultry production.

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“This regional approach, which is now active in South Africa, is also a policy direction that Namibia has followed,” he said.

The poor hit hardest

Southern African Agri Initiative’s Francois Rossouw said the continued deadlock between Brazil and South Africa over the technicalities of poultry import certification was deeply concerning.

“The ripple effect of this delay is not abstract, it hits real South African families, especially in rural and low-income areas where affordable protein is already scarce.

“Farmers are part of an interconnected value chain and when factories fall silent, demand for locally produced spices, casings, packaging and transport also collapses,” he said.

The shortage of MDM was not merely a trade issue, it was a food security and jobs emergency, Rossouw said.

“We urge both governments to urgently resolve the remaining bureaucratic hurdles. At a time when hunger is on the rise and the economy is under pressure, policy decisions must reflect the realities of ordinary South Africans.

“Every week of delay puts more jobs, more plates and more dignity at risk,” he said.

What is bird flu?

• Highly pathogenic avian influenza (HPAI) is also known as bird flu.
• It is widespread in wild birds worldwide and is causing outbreaks in poultry and even dairy cows.

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