Defuse the ‘chicken wars’ for sustainable industry growth

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The tariff war in the poultry industry had created an air of enmity between Brazil and SA, but the local industry should choose partnership over war.

Brazil’s vision of becoming the world’s bread basket is borne of a tightly integrated master plan, which comprehensively represents the interests of private capital and government’s socio-economic goals.

Industries want pro-business policies that protect competing sects of it. For players in the poultry market, there needs to be a balance between developing the local producers, while developing a complementary role for importers. Patel has recognised local producers can be developed, with government’s backing, into world-class exporters of SA poultry.

The local producers want market protection, but what this master plan offers is something more sustainable in the long run. Protectionism in France has made agricultural products there more expensive. That is lesson number one. There is also hope that trade in expertise between Brazilian and South African meat producers can result in strengthened relations and a better economy for South Africa.

 

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