The dumping duties on bone-in chicken (only on those popular cuts), whose implementation was postponed by a year by minister Ebrahim Patel, have now been gazetted.
Local poultry has applauded this move while importers are naturally aggrieved and warn of large price increases. Reports abound in the media of huge increases, but in many cases these reports have not been well researched.
In four of the five affected exporting countries, some major exporters have been subjected to little or no dumping duties, so importers will still have plenty of opportunities to obtain supplies at favourable prices.
Local poultry has been badly affected by the government’s crippling and chaotic handling of power, water and infrastructural issues. They should be compensated by subsidies which could be financed by the new dumping duties as well as a responsible effort at reducing corruption.
As chicken is an essential form of protein, VAT zero rating is long overdue.
Statutory agricultural levies of up to 5% are never mentioned, yet these costs are borne by consumers. While there is no statutory levy on chicken, there are levies on chicken feed, and since chicken feed represents nearly 70% of the costs of rearing a chicken, it plays a significant role in its cost.
While on this subject, these levies apply to many basic foods such as maize, eggs, milk, meat and potatoes. In our current economic climate they should be withdrawn to reduce prices to assist the millions of poor and unemployed South Africans.
David Wolpert
Via email
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