As chicken importers push for lower import tariffs as South Africa’s R60-billion poultry industry is decimated by avian influenza, the sector provides the country with 66% of the meat consumed and must continue to be protected, Francois Baird, the founder of the FairPlay movement, said yesterday.
The movement said that chicken importers were on a relentless drive to get lower import tariffs, which would not benefit the consumer, but would severely damage local producers.
“It is all based on a supposed shortage of chicken, which, according to our latest information, is unlikely to happen. It is a Trojan horse tactic to normalise predatory trade practices. Instead, government should help consumers by scrapping VAT on local chicken pieces most consumed by poor people."
FairPlay said although the avian flu impact had been extensive, with some 7.5 million chickens culled to curb outbreaks of the H7 and H5 bird flu strains, the industry had implemented a number of measures which would ensure that any supply shortfall in November and December would be minimal.
Izaak Breitenbach of the SA Poultry Association (SAPA) told Parliament last week that, following the culling of millions of breeder hens, the industry had taken a number of measures to increase the supply of chicks. These included producing more hatching eggs from older and younger breeder flocks, reducing hatching egg exports and the import of more than 53 million hatching eggs over the next six months.
In addition, producers had stocks of frozen chicken that would be released to the market, and local stocks would be boosted because neighbouring countries had banned the importation of South African chicken.
FairPlay said chicken imports rose in any case to meet the high demand in November and December, so the huge year-end shortage on which importers based their rebate pleas just would not happen. It added that after the December peak, demand dropped off and the poultry industry expected a balance between supply and demand from then on.
Eggs
On Monday, Hume International, a major South African import, export, and food distribution company, said the ongoing egg shortage crisis required immediate legislative intervention and assurances for importers to step up and plug the gap on shelves.
The company said the Department of Agriculture, Land Reform, and Rural Development’s (DALRRD) regulations regarding the grading, packing, and marking of eggs intended for sale in South Africa, otherwise known as regulation 345, prohibited the sale of imported eggs after 40 days from the date of hatching. He said well-refrigerated eggs remain edible for up to six months, which could theoretically allow egg imports to bridge the supply shortage as local producers are hard-hit by a bird flu outbreak.
However, Dr Abongile Balarane from SAPA said the call from Hume International for immediate legislative intervention by uplifting the 40-day rule under regulation 345 and assurance for importers was strongly not supported by the Industry.
SAPA explained that, unfortunately, in 2017 during the previous avian flu outbreak, South Africa had poor, rotten eggs dumped into South Africa from South America.
“This unfortunately cost our industry reputation with consumers not happy with that product. This then led to the revision of the current regulation R.345. This regulation sets out clear rules for anyone wishing to import shell eggs and products into South Africa.
“The 40 days from the day of lay is to protect the consumer from poor quality eggs in the market which are refrigerated as low as +1 to +4 degrees Celsius from exporting countries by sea to South Africa, then to immediately expose the eggs to ambient South African temperatures increases the decline in quality. South African eggs may not be sold after 40 days from the date of lay. The rule applies to all unpasteurised table eggs sold in South Africa,” SAPA explained.
Meanwhile, the SAPA Egg Organisation welcomed the announcement of DALRRD Minister Thoko Didiza on allowing importation of fertile eggs for hatcheries, including products such as powder and liquid eggs to assist the industry during this crisis.
SAPA said it also believed that most of the SADC countries such as Zimbabwe, Namibia, Angola, and Malawi, which were free from avian flu, could assist the industry to fill in some of the needed supplies.
BUSINESS REPORT