South Africa: Import rebates could lead to chicken oversupply

Frozen Whole Chicken

Meat

South Africa

Regulation & Compliances

Market & Price Trends

Published Mar 14, 2024

Tridge summary

The Southern African Poultry Association (SAPA) has raised concerns over the International Trade Administration Commission of South Africa's (ITAC) recommendation to implement rebates for frozen poultry imports. SAPA argues that these rebates could lead to an oversupply of poultry meat, negatively impacting the domestic industry. Despite a recent avian influenza outbreak, SAPA believes the industry has recovered and there is no need for additional imports. However, ITAC has already issued 65 import permits for 2024, predicting a shortage of 172,000 tons. SAPA's General Manager, Izaak Breitenbach, contradicts this, stating there is no shortage in the local market and criticizes the Department of Agriculture for not confirming the calculations on shortages before issuing rebate permits.

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Original content

The Southern African Poultry Association (SAPA) has expressed apprehension regarding the International Trade Administration Commission of South Africa's (ITAC) recommendation to the minister of Trade, Industry and Competition, Ebrahim Patel, to implement certain rebates for frozen poultry imports. SAPA is concerned that these rebates might lead to a short-term oversupply in poultry meat, which can have a devastating long-term effect on the industry. Izaak Breitenbach, CEO of SAPA's broiler division, told AgriOrbit that ITAC's reasoning was unclear and that such rebates would be unnecessary, unjustified and damaging to the domestic poultry industry. "Although the industry is recovering from the worst avian influenza outbreak in the country's history, neither poultry producers nor industry analysts are expecting any shortages now that the threat has abated." Click here to read more about poultry imports. Solving solved problems In 2023, South Africa was hit hard by an outbreak of ...

Source: Agriorbit