OpinionPREMIUM

GEORG SOUTHEY: SA poultry tariffs undermine food security and trade credibility

The poultry master plan, while well-intentioned, has not delivered the promised transformation

PICTURE: 123RF.COM/CHAYAKORN LOT
PICTURE: 123RF.COM/CHAYAKORN LOT

As South Africa reacts to the US’s imposition of 30% tariffs on key agricultural exports, among others, it is important that we examine the contradictions in our own trade policy, which allows imported chicken to face duties of as much as 82%.

We decry protectionism abroad yet maintain excessive and punitive duties at home in the poultry sector. This inconsistency is harming South African consumers in a country starved for employment and affordable proteins. South Africa cannot afford to ignore global best practices in food security and agricultural trade.

South Africa imposes exceptionally high tariffs on poultry, including 82% on whole chickens, 62% on chicken parts and 30% on chicken offal. These duties were increased in March 2020 under the poultry sector master plan, a framework launched in 2019 with the original intention of allowing the domestic chicken industry to develop an export plan and through this process increase local production, so that overall there would be less reliance on imported chicken.

Yet, six years later, the outcomes are sobering. While local production has grown by more than 10%, exports remain stagnant at just 2%. The sector has made little progress towards accessing high-value international markets such as the EU, where we cannot gain access to this premium market for breast meat and wings due to livestock medicines being banned for use in foodstuffs in the EU.

In practice, the poultry master plan has created a shielded domestic market with little incentive to innovate or compete globally. The costs of this approach have been transferred directly to consumers, particularly those in low-income households who rely on affordable poultry protein as a dietary staple. It is a travesty that South Africans must subsidise a major agricultural industry when chicken is the most consumed animal protein in the world.

It’s time for some honest introspection. South Africa’s poultry producers are globally competitive at the farm level. Yet, when it comes to exports, they remain absent from the global stage. Why? Instead of using import protection to build competitive capacity, the industry has largely sheltered itself from the hard work of export-readiness, international certification and product diversification.

In addition, South Africa has no domestic capacity to produce mechanically deboned meat (MDM) at the scale required to meet national demand. The past 12 weeks have made our dependence on imported MDM, along with chicken feet, necks and livers, painfully clear as a temporary disruption of imports from Brazil — triggered by bird flu in a single state — exposed the fragility of our protein supply chain. These low-cost imports contribute to more than 100-million meals per week and are vital to the nutrition of millions of low-income South Africans through staple products such as polony and viennas.

We must remember that the absence of these essential proteins means that many South Africans go to bed hungry.

The truth is that South Africa has mirrored the very protectionist behaviour it now condemns

So what should we do?

First, the Border Management Agency (BMA) must implement internationally recognised, risk-based systems to facilitate the efficient flow of poultry imports, including the electronic verification of veterinary health certificates provided by trusted trade partners. It currently requires paper-based certificates to be sent from Brazil, adding up to 10 days of delays to essential food imports. Using an online system would minimise unnecessary port delays, reduce costs and improve the supply consistency of proteins such as MDM.

Second, a downward review of poultry tariffs is both justified and necessary. These are not luxury items; they are core to food security. The temporary protections introduced in 2020 must not become permanent obstacles to affordability and access.

Third, South Africa should enforce national minimum production standards that create a uniform baseline for safety, hygiene and quality across the sector, instead of outsourcing it to the large retailers, who enforce their own standards on selected suppliers. This is important for consumer protection.

The truth is that South Africa has mirrored the very protectionist behaviour it now condemns. The poultry master plan, while well-intentioned, has not delivered the promised transformation. Instead, it has exacerbated nutritional inequality, driven up the cost of basic foods, and placed South Africa at a disadvantage in international trade negotiations.

If the country wishes to secure its place in a new, mutually beneficial trade relationship with the US, and if it truly wants to address hunger and undernourishment at home, it should look at itself in the mirror first and align its domestic trade and tariff policies with international best practice.

Southey is manager at Merlog Foods, one of the largest wholesalers and distributors of frozen foods in South Africa


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