Trade industry & competition minister Parks Tau has accepted a recommendation by the International Trade Administration Commission (Itac) that anti-dumping duties be imposed on active yeast (bakers’ compressed yeast) imported from Zimbabwe.
The duties will be suspended for a period of five years provided there is no violation of a price undertaking agreement during this period.
Itac is the authority responsible for trade remedies in SA.
Itac found that yeast imported from Zimbabwe into the Southern African Customs Union (Sacu) at dumped prices was causing material injury to the industry.
“After considering all the responses and comments received from interested parties, the commission made a final determination that the subject product originating in or imported from Zimbabwe was being imported into the Sacu market at dumped prices, thereby causing material injury and threat of material injury to the Sacu industry,” Itac said on Friday.
“The commission recommended to the minister of trade, industry & competition to impose definitive anti-dumping duties on imports of active yeasts (bakers’ compressed yeast) ... originating in or imported from Zimbabwe by Lesaffre Zimbabwe ... and those duties be suspended for a period of five years, provided that there is no violation of the price undertaking agreement during this period,” it said.
“That in the event that the price undertaking agreement is violated, anti-dumping duties be imposed ... to address the violation. The minister approved the commission’s recommendation.”
The investigation by Itac was initiated in 2023 after SA’s only producer of the product, Rymco, which trades as Anchor Yeast, alleged that bakers’ compressed yeast was being dumped on the Sacu market by a Zimbabwean exporter, causing material injury and threatening the survival of the sector.
Cream, compressed and instant yeast are used for commercial baking and alcohol fermentation.
Durban-based Anchor Yeast has been producing yeast in SA since 1923 and was taken over in 2006 by global private group Lallemand, which specialises in the development, production and marketing of yeast, bacteria and speciality ingredients.
The allegation of dumping was based on a comparison between the normal value of the product and the export price.
Comparing the normal value of the product in Zimbabwe as per a cash sales invoice obtained from a producer in Zimbabwe (the French food company Lesaffre) with the export price of yeast as per SA Revenue Service data, Itac said the applicant had shown there was prima facie proof of dumping.
SA and Zimbabwe have a bilateral trade agreement dating from 1964, which provides preferential access to certain agricultural products and manufactured goods such as textiles and clothing that conform to the agreed rules of origin requirements. However, dumping practices are still considered anticompetitive and are frowned on.
With Michelle Gumede
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