BUSINESS NEWS - The first batch of 63 million fertilised eggs ordered to mitigate the expected shortage of chicken meat in South Africa has already landed in the country. The rest will enter our borders in different batches until February next year.

The Department of Agriculture, Land Reform and Rural Development has granted permits for the importation of fertilised eggs, poultry meat and table eggs to mitigate the expected shortage of poultry products due to the outbreak of bird flu in several provinces.

Around six million commercial layers and 2.5 million breeder parents were culled during May and June, sparking fears of a shortage over the festive season, which could translate into higher prices.

Import duty rebate on chicken

Minister of Trade, Industry and Competition Ebrahim Patel has since directed trade commission Itac to investigate the creation of an import duty rebate on meat and edible offal of fresh, chilled or frozen chicken to bolster supplies. 

Itac must also consider whether the temporary rebate should only apply to ordinary customs duties or the recently reinstated anti-dumping duties should also be included.

Will rebate lower chicken prices? Stakeholder responses

The initial deadline for submissions from importers and local producers was 16 October.

To date, Itac has received 18 comments from stakeholders across the value chain, including government departments. Extensions were provided to specific stakeholders until 25 October, with further provision for counter comments until 30 October.

Itac will convene a special meeting to evaluate the information and send a final finding to the minister. Itac did not specify any timelines for the meeting or the finding in its media statement issued on Tuesday.

Izaak Breitenbach, general manager of the South African Poultry Association (Sapa), believes granting a temporary rebate when industry players and importers have already provided for additional supplies does not make sense.

He is also not convinced that a temporary rebate on import duties will result in lower chicken prices. Even without a duty rebate, consumers have not benefitted from dumped imports.

So why would one grant a tariff rebate that will only land in the pocket of the importer and not in the pocket of the consumer?

“We have already slid into a loss-making position in January this year. Local industry players were hit with additional expenses due to load shedding and now the culling of six million commercial layers and 2.5 million breeder parents.”

Read more on Caxton publication, The Citizen

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