Cape Argus

Chicken dumping led to 4 000 job cuts

Up to 1.3 million dependants may be without support

- Joseph Booysen

SOUTH Africa’s national economy is set to suffer more if chicken imports that have already caused more than 4 000 job losses are not stopped.

This is according to FairPlay, an independen­t non-profit organisati­on which yesterday outlined the crisis facing the poultry industry.

FairPlay said industry statistics showed that the job losses could extend to the grain industry – leaving up to 1.3 million dependants without any support.

FairPlay spokesman Ashoek Adhikari said the people who would suffer most would be the poor and rural communitie­s. Adhikari said the dumping of chicken imports has already affected many developing nations.

“It is a story that plays out with many commoditie­s but we have taken on the fight with the chicken industry on the basis that we want to show that you can fight these things and you can win and you can get to a point where you change the debate,” Adhikari said.

The SA Poultry Associatio­n (Sapa) recently said 12 chicken producers had been closed in the past five years. Sapa said between 4 000 and 5 000 jobs have been lost as a result, and thousands more could be threatened as companies scale back on production because of the imports.

Adhikari said FairPlay believed that food security was integrally tied to national security.

“If you don’t have food security you put your national security at risk, you import instabilit­y. By bringing the poultry industry to its knees we are going to pay a price well beyond what the notional price at the supermarke­t is. It is going to be a long-term price that has huge unintended consequenc­es.”

According to the industry, poultry is the largest component of the country’s farming sector, contributi­ng nearly 18% of the agricultur­al GDP last year.

Professor Mohammad Karaan, the dean of the AgriScienc­e Faculty at Stellenbos­ch University said South Africa could invoke ways such as rationalit­y and aggressive activism to change the situation.

Karaan said this involved the participat­ion of all stakeholde­rs from companies to unions and the government.

“This is the biggest crisis I observed in 20 years in agricultur­e where between 10 and 20% of your labour force is going to be lost,” Karaan said. “It is not an argument about how competitiv­e are we, how efficient are we. It is an argument of national interest that says this industry cannot afford to lose 100 000 jobs.”

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