SAPA supports poultry import sector transformation

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So it is clear that there is no such thing as cheap imported chicken, although there are generally dumped imports that land at our harbours cheaply, but by the time they get to the consumer, they are no longer cheap. Nevertheless, the highly competitive local retail environment will ensure that chicken remains an affordable and popular food choice.

A necessary transition

The transformation of SA's economy to include the majority of our people is a national and economic imperative. The purpose of the quota for HDI importers, which is fully supported by SAPA on behalf of the local industry, is to assist in the transformation of the chicken import sector, which is currently highly unreformed.

It will take a while for transformation to take effect, and during this time there might be some difficulties for the new importers. However, it will clearly be an easier transition if all parties in the value chain assist the new importers with their business models to ensure the sustainability of their businesses. SAPA and its members are prepared to support these new importers and hope that AMIE and the retail sector will do the same.

The Shoprite Group, as a direct importer, is perhaps able to reduce the margins made by the current import value chain. As this quota concession will last for as long as the AGOA renewal is in place, and the benefits it offers South Africa are not reduced, there is ample time for the Shoprite Group to develop its importer profile and to gain access to more of the quota available in future quota years.

Local is enough

Local producers can provide all the chicken products the country needs. However, we are one of the top ten receivers of the dumped surplus and waste products from the handful of countries who export leftover chicken to our shores. Most jobs in the chicken industry are created in the processing phase, followed by the farming part of the business. To create jobs for South Africans we need to produce more local chicken and import less.

The local industry knows well that the Shoprite Group is the largest buyer of local poultry products in the country and hopes that the Shoprite Group will continue to buy from local producers, and in so doing, help grow our economy by creating local jobs for our people.