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South Africa Looks for Solutions for Troubled Poultry Industry

02 February 2017

SOUTH AFRICA - The poultry industry is in crisis and a range of policy interventions are needed to address it, Department of Trade and Industry officials told MPs on Wednesday.

Deputy director-general for trade Xolelwa Mlumbi-Peter and deputy director-general for industrial development Garth Strachan briefed Parliament’s select committee on the problems the industry faces as a result of imports and high input costs, according to news website Business Day.

Apart from the difficulties arising from imports, the drought had increased the cost of feed, which constitutes between 65 per cent and 70 per cent of total production costs.

Strachan stressed that the poultry industry was critical to raising the level of growth of the manufacturing sector of the economy, Business Day said. The current pressures on the industry put the jobs of 1,300 workers in jeopardy as plants are closed or operations cut.

The task force set up to deal with the problems faces the challenge of agreeing on a number of trade-offs in balancing different interests — such as industry protection, consumer prices, the effect on workers, increased investment by industry to enhance competitiveness, and transformation.

The International Trade Administration Commission is investigating a further safeguard duty in addition to the provisional 13.9 per cent imposed on European Union bone-in chicken portions in December, which will persist until July 3.

ThePoultrySite News Desk

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