US comes to dinner with poultry deal
Lower import price set to put chicken on more tables
THE deal struck between US and South African vets this week on the importation of US poultry will probably lead to South Africans paying significantly less for a pack of eight chicken drumsticks and thighs in grocery stores.
US chicken imports free of the duty intended to deter dumping are expected to enter the South African market within weeks.
Prices of the bone-in pieces are expected to be notably lower, competing with EU and domestic products.
South Africans are paying about R54.99 for a pack of eight pieces with the skin on, according to a price check. This makes a chicken dinner out of reach for many working-class South Africans.
The expectation that imported US poultry will significantly undercut the price of the country’s producers explains the ire of the South African Poultry Association’s chief executive officer, Kevin Lovell.
He has been quoted as saying the deal with the US is dis- astrous, and that South Africa has buckled under US pressure, throwing its health and safety standards “to the winds”.
South Africa’s chief negotiator on the US African Growth Opportunity Act (Agoa), Faizel Ismail, told Independent Media: “Any producer in South Africa will feel unhappy about competition, as their concern is about products coming in at a lower price.
“We have, however, reiterated our appreciation for the concession that the South African Poultry Association made in Paris in June, agreeing to 65 000 tons of bone-in US poultry being allowed in annually,” he said.
He emphasised that the protracted negotiations had been between US and South African vets, who had very different systems of managing animal health.
“South Africa is absolutely confident about this deal, as our vets who did the negotiating are among the best in the world.
“Dr (Botlhe) Modisane, who negotiated on the South African side, is president of the World Animal Health Organisation. He is not there as a political appointee, but due to his extensive expertise.”
Trade Minister Rob Davies has also expressed his confidence that it is a deal that balances trade opportunities with the health and safety of South Africa’s human and animal population.
For the first three months, South Africa will produce risk profiles for all consignments of poultry imported from US export establishments. This is to be followed by a revised statistical risk-based sampling plan. South Africa is to test all consignments for compliance, and the Department of Health will monitor these products after their release from ports of entry.
South Africa is to push for greater duty-free access to the US market for other South African agricultural products, such as avocados, mangoes, chicken breasts and Karoo lamb.
The agreement struck this week will save thousands of jobs in sectors that would otherwise have been excluded from Agoa.
The working masses also have reason to celebrate as chicken will probably be more affordable.