Industry players debate call to extend tariff rebates for imported chicken

The debate over extending tariff rebates on chicken imported into South Africa continues as industry players argue over market dynamics and food affordability.

- Jyothi Laldas

The International Trade Administration Commission of South Africa (ITAC) is currently deliberating on whether to extend tariff rebates on imported chicken for the second quarter of 2024.

These rebates came into effect in January this year to maintain the affordability of chicken for businesses and consumers and to offset any potential price hikes arising from supply shortages resulting from the avian influenza outbreak in late 2023, which led to the culling of over eight million chickens.

ITAC has estimated a 172 000t chicken shortage this year and plans to address it with rebates of 43 000t every quarter. However, if it determines there is no shortage of chickens, the rebate scheme may be discontinued.

Meanwhile, the South African Poultry Association (SAPA) has opposed the initial rebates and now the potential extension thereof, saying there is no chicken shortage.

“We appreciate the reason that the tariff rebates were published, which is to address a potential shortage of chicken on the market. However, our data indicates that there has not been and is no shortage in the supply of chicken to the market, and thus there is no need for the rebates to continue,” SAPA Broiler Organisation general manager Izaak Breitenbach said.

He added that the rebates were detrimental to domestic producers as they raised the risk of job losses and supposed ‘dumping’.