This is according to the Emerging Black Importers and Exporters Association of South Africa (EBieSA). The association recently made a submission to the Department of Trade, Industry, and Competition (DTIC), warning it that further tariffs on imports in the poultry sector could have an undesirable effect on food security. 

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“We are afraid that DTIC’s new poultry tariff structure could increase tariffs through specific tariffs rather than ad valorem, which could further increase applied tariffs more than the current bounded tariff of 82%. Specific tariffs are not preferred as they would be for certain cuts or from certain sources and potentially exceed the bounded rate,” says Unathi Speirs, chairperson of EBieSA.

She explains that their calling on the domestic poultry industry to urgently implement the transformation commitments contained in the Poultry Master Plan comes against the increase in MFN duty rates levied in March 2020, as well as the impact of Covid-19 on the local and global economies. 

“These factors have distorted the chicken market. It is thus critical that the market is allowed to settle and understand the true impact of the increased tariff regime before there is any consideration given to any further changes or modifications to the tariff structure,” adds Speirs.

Furthermore, the results of the domestic industry have failed to transform and grow the domestic industry which means that South Africa is forced to import chicken in an attempt to meet the protein needs of the country, explains Speirs.

She concluded by saying, “food security and job security will be taken priority in the post-Covid-19 Economic Recovery Plan. We have companies that closed permanently due to unusual circumstances we faced recently. We can't believe how quickly the government wants to reward non-compliance with the Poultry Master plan of the President. To date, not even one black supplier has access to a retail shop or chicken franchise.”

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