Feathers set to fly over fowl imports

An agreement between the South African government and the US to resume the importing of chicken portions has raised the ire of local poultry farmers, who say the government and the South African Poultry Association did not consult them.

The agreement comes after months of talks between the association and the American Poultry and Egg Export council.

Yusuf Salejee, a poultry farmer in Cato Ridge, said the agreement had “come through a side window”.

“Not once did they consult local farmers. In fact, I don’t even think they care about us. This move will have a very negative impact on us,” said Salejee, who has more than 52 people working for him.

“I don’t have any other option but to retrench some of my staff,” he added.

Another farmer, from Pietermaritzburg, Dane Tremearne, agreed. “This is going to have an extremely negative impact on local farmers and many people will lose their jobs if this agreement is not overturned.”

Tremearne said the textile industry found itself lurching from one crisis to another because the government relied more on imports than on products produced in the country.

“This is the beginning of the end of the poultry industry in South Africa. Just like in the textile industry, many people will start losing their jobs.”

Tremearne said emerging poultry farmers were going to bear the brunt. “We are going to feel the heat, as opposed to big companies,” he said.

Managing director of OBC Chicken, Tony da Fonseca, said the agreement would undoubtedly have a negative impact on profitability in the poultry industry.

“There is more to gain, though, for South Africa’s economy as a whole and the job opportunities maintained in other sectors should outweigh these.

“The consumer should benefit in the short term as the availability of imported stock increases. Sadly, local producers may have no choice but to cut back on production so as not to flood this price-sensitive market,” Da Fonseca said.

Minister of Trade and Industry Rob Davies signed the agreement – which allowed the resumption of imports of US bone-in chicken cuts into South Africa - in Paris on June 5. The move was part of an agreement between the two countries that will ensure South Africa’s participation in the renewed Africa Growth and Opportunity Act (Agoa) that was extended by the US government for 10 years.

Chief executive of the SA Poultry Association, Kevin Lovell, said: “This does not benefit the local poultry industry, but it does benefit many other industries in South Africa. The US poultry sector had managed to get political support for the view that if they did not get access to our market again the US Congress was unlikely to support the renewal of the act (Agoa).”

On claims that the association did not consult poultry farmers, he said: “We have not been able to talk to all producers but we have spoken to the majority of them.”

Lovell said the association was working on ways to mitigate the potential harm to the industry which could affect as many as 6 500 jobs and reduce farm gate turnover by as much as R900 million.

Sunday Tribune