Agri Hour
Chicken tariffs affect consumers’ pockets negatively─── ELSABÉ RICHARD 05:00 Wed, 10 Mar 2021
The increase in poultry import tariffs that were introduced last year, has affected consumers' pockets negatively.
According to Paul Matthew, CEO of the Association of Meat Importers and Exporters (AMIE), an increase in poultry tariffs means that minimum wage earners will struggle to afford what should be an affordable source of protein.
See PODCAST below
According to AMIE, a bag of Individual Quick Frozen (IQF) chicken portions has risen from R63.87 to R77.61 per kilogram - an increase of 9% - in one year.
Matthew adds that poultry producers are now asking for even more tariff protection on certain chicken imports.
He says these tariffs are aimed at cutting out imports completely and creating a monopoly in the local industry. Botswana has banned poultry imports from South Africa and Zimbabwe in the past, in order to protect the local industry, even though only 5% of the country’s poultry is imported monthly.
Matthew says, however, even that small reduction in imports led to a significant rise in prices and the re-introduction of imports as soon as it was feasible.
He further states that the industry needs help and not protection. This, as AMIE does not believe that imports are harming the local industry, and that tariffs or anti-dumping duties are the way to solve the industry’s problems. Furthermore, the association’s focus is on the impact of prices on consumers.
Matthew concludes in a statement that “If you cut imports out, what will happen to poultry in this country? It will just become so controlled, the prices will just increase so that the lower LSM, who enjoys the product, will not be able to afford it in their baskets.”
OFM News
