The SA government intends to introduce a temporary rebate on import duties of chicken meat to combat a potential shortfall in the face of a number of highly pathogenic avian influenza (HPAI) outbreaks. According to the Department of Agriculture, Land Reform and Rural Development, the total loss due to the outbreaks amounted to around 1.4 million chickens by 21 September. A total of 50 HPAI H7 outbreaks and 10 HPAI H5 outbreaks were reported. Minister of Trade, Industry and Competition Ebrahim Patel has now directed trade commission Itac to consider the creation of a rebate on meat and edible offal of fresh, chilled or frozen chicken….
In a statement issued on Tuesday, Patel says the outbreaks led to the culling of around 2.7 million chickens.“The impact of the depletion of locally available poultry will have severe food security implications on the availability and prices of poultry, which is a basic, staple protein in South Africa.”
He requested Itac to investigate a rebate on import duties “in an expedited manner”. Interested parties have been given two weeks (until 16 October) to submit comments to the commission. Itac must consider whether the temporary rebate should only apply to ordinary customs duties or whether the recently reinstated anti-dumping duties should also be included.
Patel reimposed anti-dumping duties – after suspending the imposition for 12 months – in August. Imports of frozen bone-in chicken portions already carry a most favoured nation (MFN) rate of 62%.
Imports from Brazil, Denmark, Spain, Poland and Ireland now carry additional duties for five years until 2027. They range from less than 3% for some companies in Poland and Ireland to 265% for one company in Brazil.
Paul Matthew, CEO of the Association of Meat Importers and Exporters South Africa (Amie), has welcomed the announcement. “The minister is being proactive in the face of the huge bird flu outbreak in SA.” Amie will be drafting its comments for Itac’s consideration. Matthew says it is still early days to discuss how the rebate could address the anticipated shortage. The South African Poultry Association (Sapa) has expressed dismay with the directive and the potential scrapping of import duties.
“It is our view that the current situation does not justify such a rebate,” says Izaak Breitenbach, general manager of Sapa. He says the potential shortage is no more than around 30% if the culling is done, which has not happened yet. The detailed analysis can be found on the following website: Government contemplates rebate on chicken import duties – Moneyweb