Skip to main content

Too-cheap chicken won’t get dumping duties for at least a year, because of high food prices

| Supplier news

South Africa will not impose anti-dumping tariffs on chicken imports from Brazil, Denmark, Ireland, Poland, and Spain, because food prices are too high, the International Trade Administration Commission (Itac) announced on Monday (01/08/2022).

After an investigation, the commission determined those countries were dumping chicken in the Southern African Customs Union area at below the cost of production, "causing material injury" to local producers.

Under global trade rules, that allows South Africa to impose extra import duties, in order to level out the price and so protect local producers from predatory behaviour.

Itac had recommended just such tariffs to trade and industry minister Ebrahim Patel, who makes the final decision on such matters.

Patel accepted the recommendation, the commission said in a formal notice in the Government Gazette on Monday – but will not be acting on it yet.

"The minister approved the commission’s recommendation. However, in making its decision, the minister considered the current rapid rise in food prices in the SACU market and globally and the significant impact this has, especially on the poor, as well as the impact that the imposition of the anti-dumping duties may have on the price of chicken as one of the more affordable protein sources."

So Patel decided to "suspend the imposition of the anti-dumping duties", Itac said.

The SA Poultry Association had lobbied for the imposition of anti-dumping duties, warning of a dire impact on local jobs and, ultimately, food security and pricing, if South African chicken producers were not defended against unfair imports.

Food prices have been affected by both general inflationary pressures and a global increase in the price of grain, triggered by Russia's invasion of Ukraine.

In June, the national consumer price index (CPI) food basket was 9.2% more expensive than in 2021.

 

Pin It

Related Articles

By: Nicola Mawson - IOL JSE-listed Tiger Brands has exited its deciduous canned fruit business five years after it said it could do so for R1 while also setting up a R150 million community trust to benefit the Langeberg community.
A global wave of home appliance recalls, including millions of air fryer models sold by major brands has cast a harsh spotlight on the growing danger of faulty kitchen devices and the rising tide of personal injury claims they leave in their wake.
By Yashvir Maharaj – Insights Survey There has been an increase in demand for female-focused healthcare products, with the Vitamins industry being no exception to this movement.
The reimagined Engen Xtreme lubricants range roared onto the scene with a high-impact launch at The Galleria in Sandton this month, where industry professionals, mechanics, and key media were treated to an exclusive preview of the brand’s powerful n…
Engen has unveiled a bold new look for its Xtreme lubricants range, positioning it as a premium solution for South African motorists. Designed to meet the demands of local roads and climate, the enhanced Xtreme range offers superior performance, adv…