Consumers could pay up to 32 per cent more for chicken if import tariffs are increased
ROSEBANK – The South African National Consumer Union (Sancu) and Emerging Black Importers and Exporters South Africa (EBieSA) are concerned that this increase could spell trouble for consumers, particularly those who rely on chicken as their sole source of protein.
The South African National Consumer Union (Sancu) and the Emerging Black Importers and Exporters South Africa (EBieSA) are concerned that an increase in tariffs on imported chicken could hike local chicken prices by up to 32 per cent, impacting food security for the poor.
This was announced at the media briefing at The Crowne Plaza Hotel in Rosebank on 17 April.
This comes after the South African Poultry Association (Sapa) applied to the International Trade Administration Commission of South Africa (Itac) for an 82 per cent increase in import tariffs.
Chairperson of EBieSA Unati Speirs said, “Their rationale is that imports are damaging to the local industry, but EBieSA believes that they are seeking to protect their profits to the detriment of customers and emerging black importers.
“There is a lot South Africa can learn from our trade counterparts in other countries, including chicken producers in Brazil… Slapping massive import tariff increases… is the low road, one that will have a profoundly negative impact on our industry, as it will allow the local producers to further consolidate and tighten control over the vertical value chain over which they rule,” said Speirs.
She described the local poultry industry as an ‘ untransformed market’.
EBieSA represents the interests of 105 emerging black importers of chicken to South Africa, each sustaining between three and five employees.
Founder and director of Mkabayi Group Nontwenhle Mchunu said, “Those who are controlling the local industry are doing this deliberately to keep black people out the industry.”
Sancu and EBieSA said that imports are critical because South Africa can only meet 70 per cent of the chicken demand.
Sancu vice chair Dr Clif Johnston said the union was created to protect the consumer. “In our experience, whenever import tariffs are increased, there is an increase in the price of the local product. Chicken is the cheapest source of protein in the meat market and for many, it is their sole source of protein.”
Related article:
https://www.citizen.co.za/rosebank-killarney-gazette/208881/chicken-dumping-know/
