SA poultry group deny tariff could cause inflation

The South African Poultry Association (SAPA) states that its request for safeguards against cheap frozen chicken meat imports will not raise prices beyond 10 and 15% from current prices, denying any claims of increases of up to 50%.

According to Business Day, in March, the association brought an application before the International Trade Administration Commission, arguing for an increase in import tariffs on frozen poultry to protect the industry against the “onslaught of cheap imports”.

Sapa says imports have led to the closure of five small and medium-sized poultry farms, with more than 2,000 jobs having been lost in the past 18 months. Larger poultry producers shed a further 3,000 jobs in the same period, it says.

The Association of Meat Importers and Exporters is fighting the application and has approached the North Gauteng High Court for urgent relief. It is seeking access to confidential information contained in Sapa’s application. Amie’s application is due to be heard next month.

Amie says that it is in effect being deprived by Itac and Sapa of its right to present evidence in a meaningful way in its opposition to Sapa’s application. It also says the application for a tariff increase is disastrous for its members, who would be forced out of business.