Poultry producers criticise state for lowering chicken import duties

The government has come under fire from domestic poultry producers for its decision to reduce duties on targeted frozen poultry imports.

Poultry producers said after the notice was published in the Government Gazette on Friday that the move to introduce rebates on imported chicken would harm the local industry.

The department of trade, industry and competition has offered a 30% rebate on boneless chicken cuts, as well as a 25% rebate on bone-in cuts, according to the government notice published on Friday.

In October last year, minister Ebrahim Patel asked for an investigation of the possibility of a temporary tax rebate on imported chicken after broiler breeders were culled due to the avian influenza outbreak.

But the SA Poultry Association (SAPA) said on Friday the industry imported broiler hatching eggs to fill any gap in supply over the festive season and had other contingency plans in place. About 7.5-million chickens had been culled since April last year, it said.

Local farmers are not compensated for the costs.

The proposed rebate on imported chicken comes with domestic producers still in the early stages of recovery after the worst power crisis on record in 2023, avian flu and relatively high grain prices.

The SAPA said the implementation of the tariff rebates was antithetical to trade measures implemented under the poultry sector master plan.

“They will only serve to place further investment at risk, place jobs at risk and threaten SA’s food security.

“The implementation of a rebate and any permits issued under this will be the single most damaging action to a poultry industry already on its knees,” the SAPA said.

However, the Association of Meat Importers and Exporters of Southern Africa welcomed the move, saying it would keep the price of chicken in check for consumers.