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: Daily Investor  Ramokgopa referred to South African municipalities owing Eskom R78 billion, which is increasing at an alarming rate.
By: Se-Anne Rail - IOL Knorr is recalling its brown onion gravy sachets after manufacturers have discovered some packets may contain traces of cow’s milk and soy.
By: Bianke Neethling – Daily Investor Eskom has done a tremendous job of limiting unplanned outages and improving the performance of its coal fleet, which bodes well for load-shedding in South Africa going forward.
By: Shaun Jacobs – Daily Investor In June, the Constitutional Court ruled in favour of Coronation in its legal battle against SARS regarding the profits earned by its Irish-based subsidiary, Coronation Global Fund Managers (CGFM). 
By: Myles Illidge – My Broadband Eskom is cracking down on corruption surrounding its operations and service providers, and using new technologies and systems to minimise opportunities for criminal activity.