Cape Town – The South African government is considering temporary rebates on poultry meat import duties to address the country’s worst-ever bird flu outbreak.
However, the South African Poultry Association (SAPA) warns that these rebates could further harm the already struggling local poultry industry.
Minister of Trade and Industry, Ebrahim Patel, has requested the International Trade Administration Commission of South Africa (ITAC) to determine whether the temporary relief should exclusively apply to standard customs duties or if anti-dumping tariffs should also be waived, according to a Government Gazette notice.
If enacted, a rebate could boost chicken imports and help counter the anticipated rise in chicken prices.
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South Africa already imports approximately 25% of its chicken, and this move could further encourage imports during the avian influenza outbreak.
The outbreak has resulted in the culling of approximately 2.68 million chickens, and producers have culled about 30% of their flock in the past two months.
SAPA argues that imposing such rebates could lead to job losses and economic decline within the industry, as it is already grappling with significant losses due to avian influenza and the costs of load shedding, News24 reported.
The poultry industry believes there are alternative sources for imports, such as the US and Brazil, and that the rebates may not be necessary.
Analysts suggest that instead of increasing imports, the government should consider supporting the local poultry sector through a compensation fund to offset losses caused by avian influenza.
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Compiled by Betha Madhomu
