Quirky philosophy of SA poultry industry

I refer to your report “Job losses loom in poultry industry” (Business Report, December 2):

Job losses, for whatever reasons, are tragic, and in our current dire economic climate, even more so. But let us at least be honest in our analysis of the primary causes.

Local poultry has indeed, and sadly, been hard hit by drought and consequently high feed prices, which have devastated their financial performances.

However, this is a cyclical problem in a world where weather conditions are constantly changing at a time of unpredictable and severe climate change.

Local producers, therefore, need to interrogate and modify their own business plans to limit the damage caused by such natural phenomena, but once again, depicting imports as a major contributor to their problems is disingenuous.

Imports do not dominate this sector of the economy, and comprise less than 15 percent of local chicken consumption – they merely act as a balance between supply and demand, and provide the South African consumer with a choice of unbrined product.

They also act as a bulwark against rising poultry prices – again in the consumer’s interest.

They are, and always have been, a convenient scapegoat during times of difficulty for local producers.

Secondly, there are two issues that are not even mentioned in your report:

South Africa is notorious for high brining levels – injecting chicken with a water and salt based solution to “enhance succulence.” This practice has been so abused over the years that brining limits have now been implemented by the government.

The practice has, over the last decade or so, driven many local producers out of business, of both fresh and brined chicken who simply did not have the capital to compete, resulting in major job losses, another area where the finger has always been pointed at the poultry import industry, yet much of the local industry damage was self-inflicted.

Lastly, there is the issue of exports. Why does the embattled local poultry industry not export more than a few thousand tons per annum?

Unbrined product, with a major export drive, and the enforcement of European health requirements, could easily be exported to Europe where no customs duties would apply, and the weak rand would be of great assistance.

We have regularly approached the local industry representatives, suggesting that we meet to discuss our differences and seek solutions to enhance the value and performance of the “chicken brand” in South Africa.

All of our offers have been spurned, and responded to by way of media attacks and applications to government to take action to limit imports.

It seems that this is their only response to healthy competition. It says much of the philosophy driving local poutry. DAVID WOLPERT CHIEF EXECUTIVE OF THE ASSOCIATION OF MEAT IMPORTERS AND EXPORTERS OF SA