LETTER: Schussler is not an independent commentator on SA poultry industry

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Mike Schussler fails to mention that local poultry is heavily brined while imports are not, and mischievously states that SA is ‘not allowed to sell its chicken cuts to the EU’

Respected economist Mike Schussler made some telling points in his recent article, but omitted many other very relevant issues and also skilfully dodged a few .

Schussler also omits to tell us that there is a huge difference in product. Local chicken’s primary income source, which equates to over 60% of sales, is individually quick-frozen mixed portions. The current case is about leg quarters, which represent somewhere around 5% of local poultry sales. Schussler may well be correct that dumping is occurring, but he seems to forget the most relevant issue of all — dumping must be proven to have caused “material” injury. Material means substantial. Reading annual reports and media releases from reputable and well-run local poultry companies, they openly concede that their biggest profit destroyer over the last few years has been the huge increase in feed costs, which represents some 65% of total “live costs of producing a broiler”.

 

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