Logo

SA poultry sector warns against opportunistic dumping

South Africa's poultry industry has expressed fears that cheaper products being opportunistically imported or dumped into the market could lead to its collapse

Poultry_asifthebesPoultry products dumped in South Africat are sold at a much lower price. (Image source: asifthebes/sxc)

Ecowize managing director Gareth Lloyd-Jones explained, "When dumping a product, the producer is simply looking to dispose of the product and recover input costs.

"Therefore, poultry products that are dumped into the South African market can be sold at a much lower price than local products."

Predictions by economists that the African rand will strengthen and make imports even more cheaper as the Eurozone financial crisis take hold has added severe pressure on local producers to keep poultry costs down.

Incidences of chicken dumping in South Africa are likely to increase over the next few months, as suppliers to European economies look for ways to dispose surplus product, Lloyd-Jones warned. The local market has already been oversupplied with poultry products.

Often, the surplus food gets diverted to countries whose products do not have same import tariffs to avoid import duties, and therefore the safety of poultry products is also likely to be compromised, he added.

The price of chicken has remained at 2008 levels, but the feed price, which currently represents 60 per cent of the chicken producer's costs, has doubled. The rise of costs such as electricity and fuel has made it extremely difficult for producers to keep prices low.

It's not sustainable for the poultry sector to keep absorb these costs on a long-term, and many small and medium operations might not be able to continue their business, Lloyd-Jones pointed out.

The oversupply issue will arise in countries like Brazil and Thailand that are currently exporting poultry to the European market, a report by Cape Business News said, and added that the countries would be looking to undercut markets like South Africa.

South Africa has already seen instances of chicken dumping from Brazil, which resulted in the government enforcing a section of the Customs and Excise Act of 1964. However, this covered only the deboned breast meat and Mechanically Deboned Meat (MDM).

Lloyd-Jones called upon the South African government to impose stricter regulations in terms of licences and import legislation to protect the local producers. Alternatively, a quota system can be introduced, he opined.

"Regulation can be introduced to stipulate a certain proportion of retail stock to be local produce. The local producers can also be supported by providing certain subsidies, for example water, maize and veterinary," Lloyd-Jones remarked. 

Currently, South Africa's poultry industry employs more than 30,000 people and this number would drop should nothing be done to control dumping, he stressed.


LATEST NEWS IN Poultry

BRAC Liberia continues to support poultry farmers

BRAC Liberia continues to support poultr…

The country director of BRAC Liberia, Rosy Choudhury, revealed that the organisation had been providing continued support to more than 200 poultry farmers through initiatives aimed at improving the livelihood...

Stopping the spread: Biosecurity measures to tackle Avian Influenza

Stopping the spread: Biosecurity measure…

The deadly bird flu, Avian Influenza has wrecked havoc in poultry farms across the world. Botswana is one of the many countries that have been majorly affected by the outbreak

Nigeria leads egg production and stands second in chicken production in Africa

Nigeria leads egg production and stands …

During a two-day training and empowerment of select poultry farmers, Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Earnest Umakhihe announced that Nigeria had continued to lead egg production...

Global poultry feed antioxidants market to record CAGR of almost 10% from 2022-2029 forecasts

Global poultry feed antioxidants market …

Analysis performed by Data Bridge Market Research suggests that during the forecast period of 2022-2029, the poultry feed antioxidants market is likely to project a compound annual growth rate (CAGR)...

Why the African poultry industry needs to go digital

Why the African poultry industry needs t…

African farmers are now being urged to go digital to help tackle several poultry-related challenges that are keeping the industry from performing to its full potential

"Software is not a big monster" - Innova

"Software is not a big monster…

Entrepreneurs in emerging markets who start processing poultry at capacities from 500 to 4,000 bph should not be afraid of including software in their plant design, says Innova

Prev Next

OTHER RELATED ARTICLES - Poultry

Paying more attention to egg orientation: Pas Reform Academy

Paying more attention to egg orientation…

Gerd de Lange, senior poultry specialist, Pas Reform Academy, has outlined the ways to ensure correct orientation of the eggs when placing them on setter trays

Progress in poultry talks between South Africa and USA

Progress in poultry talks between South …

The USA and South Africa have made progress over the contentious issue of poultry trade access

Olam to invest US$150mn in Nigeria’s poultry sector

Olam to invest US$150mn in Nigeria’s pou…

Olam International announces a US$150mn investment in animal feed mills, poultry breeding farms and a hatchery in the Nigerian states of Kaduna and Kwara

Improved breeds to boost poultry production in Nigeria

Improved breeds to boost poultry product…

A team of experts from the African Chicken Genetic Gains (ACCG) in Nigeria has developed a new disease-resistant breed of chicken with higher egg output

Sudan Poultry Expo set to open in February 2020

Sudan Poultry Expo set to open in Februa…

The 11th session of Sudan Poultry Expo (SPE) will be held from 25-27 February 2020 at Khartoum International Fair Ground

Ecobiol can ameliorate the negative impact of broilers’ enteric pathogen challenge

Ecobiol can ameliorate the negative impa…

Evonik carried out research to investigate the effect of B. amyloliquefaciens CECT 5940 (Ecobiol) to ameliorate the negative impact of necrotic enteritis challenge caused by Clostridium perfringens

Aviagen launches David Butler Award to recognise promising EMEAA school students

Aviagen launches David Butler Award to r…

Aviagen has launched the David Butler Award to recognise the most promising students of Europe, Middle East, Africa and Asia (EMEAA) schools

Exploring new horizons for connecting data in the poultry chain at VIV Europe 2018

Exploring new horizons for connecting da…

Smart food production in the context of a modern poultry chain from feeds and breeding to production, processing and consumption will be on show at VIV Europe from 20-22 June...

Big bonuses from cycle hatching

Big bonuses from cycle hatching

Existing chicken incubators, especially low cost and older models, use the same egg tray through the 18 day Setting Phase, as well as through the final three days...

"Software is not a big monster" - Innova

"Software is not a big monster…

Entrepreneurs in emerging markets who start processing poultry at capacities from 500 to 4,000 bph should not be afraid of including software in their plant design, says Innova

Novos Horizontes to use Pas Reform Hatchery Technologies’ equipment for new facility

Novos Horizontes to use Pas Reform Hatch…

Mozambique-based Novos Horizontes and its partner Philafrica will use Pas Reform Hatchery Technologies’ equipment for their new facility located in Nampula, in northeastern Mozambique

Evonik proves ecological advantages of its feeding solutions for swine and poultry

Evonik proves ecological advantages of i…

Evonik has further demonstrated the ecological advantages of using its feed amino acids and feeding concepts compared with common animal nutrition practices

Prev Next

Template Design © Joomla Templates | GavickPro. All rights reserved.