Poultry producers playing chicken with investors

Kamogelo Olaitan

Local poultry producers have threatened to cancel or suspend plans to invest over R570 million to expand their operations, creating jobs.

This comes after the government announced that it will be suspending anti-dumping duties on chicken imports for a year to ease the load of high food prices for consumers.

This means there will not be an increase in tariffs for poultry products from Brazil, Ireland, Denmark, Spain and Poland, making imported chicken cheaper than local chicken. Importers are currently paying between 62% to 82% import duty.

South African Poultry Association general manager Izaak Breitenbach described the announcement as disappointing.

“Companies would reconsider planned expansions of R570 million, promised to minister Ebrahim Patel, which would have created more jobs, or delay them for 12 months,” he said. Breitenbach said the industry has invested R1.5 billion and created 1,500 jobs since 2019.

Speaking to SABC News, Breitenbach said Patel was going against the poultry master plan agreed to by the industry and the government in 2019, which aimed to expand and improve production.

“The industry wants to invest and has already invested a lot, and now we have a delayed return waiting for us,” he said.

“The local poultry industry is sensitive to the plight of cash-strapped consumers and understands that food price inflation can negatively impact South Africa’s population.

“However, poultry producers also feel that the minister’s announcement flies against the spirit of the poultry sector master plan, which specifically listed tariff measures as an important pillar to put a stop to dumping.”

Image source:AgriFarming

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