The Goose That Lays Agriculture's Golden Eggs

Chickens can play a major role in developing the agricultural sector at various levels, according to Izaak Breitenbach, general manager: broiler organisation at the South African Poultry Association (Sapa). Sapa is instrumental in developing this potential, but there are a few stumbling blocks standing in the way of the industry reaching its full economic potential and which have hindered growth during the last decade or so.

- Izak Hofmeyr

All role-players in the poultry industry signed the Poultry Sector Master Plan towards the end of 2019. This plan, essentially an industry growth plan, is geared towards remedying the lack of growth the industry has experienced during the past ten years.

“The reasons for this lack of growth,” explains Izaak, “were identified as unfair trade, illegal trade, as well as unethical trade. All relevant role-players signed an agreement to eradicate all forms of unfair trade in the industry.”

The bane of unfair trade

Unfair trade, he explains, entails a number of components. These include:

• Dumping, where chickens are sold locally at cheaper prices than in the country of origin.

• Under declaration of imported product, where the value of the product is declared as less than the actual value.

• Declaration under alternative tariff codes that do not carry tariffs.

• And round tripping, where product ends up in South Africa for the purpose of exporting it to another country – although the paperwork indicates that the product has left the country, it remains in the country to be sold illegally, locally. In all these cases, the importers get away with not paying the appropriate tariffs or value added tax.