Australia appears to be using South Africa as a dumping ground for its chicken, with Australian producers somehow managing to land chicken portions here at prices below those of other countries known to be dumping chicken in the country. According to the FairPlay Movement, Sars data shows these extraordinarily low prices. In December chicken drumsticks to the value of R626 000 were imported at R8.89/kg, about half the price of the drumsticks that Brazil was accused of dumping in South Africa.
Then, in January, Australian drumsticks to the value of R1 million were imported for even less at R8.74/kg, again cheaper than chicken feet, which are classed as offal. FairPlay says even after the 62% tariff applicable to Australian bone-in portions, these drumsticks are landing here far below the South African producer price of R35.93/kg for frozen drumsticks and R36.21/kg for Individual Quick Freezing drumsticks in December.How are these low prices possible?
The problem is that there is no anti-dumping duty yet against Australia. However, there is a Most Favoured Nation duty of 62% on bone-in portions and 42% on boneless portions. Sars is the authority enforcing the payment of the tariff.How dumping affects local chicken farmers Local chicken farmers have been dealing with higher input prices already, with feed prices that increased by 20% since April last year due to price increases for maize and soy on the global market.
“In the masterplan or the industry growth plan dumping is defined as under-declaration of prices and mis-declaration of product under the wrong tariff heading to reduce the payment of tariffs.”Higher chicken and red meat prices also on the menu for consumersThe war in Ukraine also affects chicken prices in South Africa as the prices of maize and soya are determined on the international Chicago board of trade.
We have our own farmers in South Africa and we need to support them 100%.