With the price of chicken soaring and set to hit record highs, local poultry producers have dismissed suggestions that they are profiteering at the expense of consumers.
At a media briefing on Monday, Izaak Breitenbach, the chair of the SA Poultry Association, which represents local producers, said contrary to popular belief, producers have not made enough profit in recent years to invest back into the industry. The sector has in the past shed thousands of jobs and ascribed its struggles to cheap chicken imports mainly from Brazil, the US and Europe.
While local producers have backed the removal of VAT on selected cuts of poultry consumed by lower-income families, they vehemently oppose the removal of tariffs, arguing that they did not cause the increase in price in the first place. Trade, industry & competition minister Ebrahim Patel is also against the suspension of tariffs, arguing that such an “extreme” step would destroy local jobs.
He emphasised that for the past six years chicken imports have averaged R6bn a year. “If chicken importers sold those consignments for only 10% more than they paid — and we think it’s more because we believe their profits are substantial — then they are making R600m a year. Every year, for the past six years.
And the public is expected to simply accept this.
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