South Africa

Broiler meat production in South Africa for 2005 is estimated to be 825,000 metric tons (MT), which is 4.3% above the revised figure of 790,000 MT in 2004. Projections for 2006 expect production to continue increasing, due to the buoyant condition of the South African economy.

At present, Brazil is the leading exporter of poultry meat to South Africa having exported 159,298 MT in 2005. Brazil accounted for 74.4% of South Africa's poultry meat imports. Following Brazil are Canada (8.1%), Argentina (5.9%), Australia (3.9%), UK (2.4%), and France (0.9%). From January to June of 2006, Brazil continues to lead with 114,387 MT with Canada, Argentina, UK, Australia, and the US following suit.

About 43% of imports in 2005 were chicken meat (81,100 MT) and 57% were chicken products (108,193 MT) together totaling 189,299 MT of chicken meat and product imports. Of the 81,100 MT of chicken meat imported 16,242 MT were whole birds. Whole bird imports comprised 20% of total chicken meat imports in 2005 and were 31% higher in the first half of 2006 in comparison to the previous year. Fresh and chilled whole birds remain duty free, while frozen whole birds carry a duty of 27% in general, 20.25% on product from the EU, and free from the SADC countries (Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe).

About 16% of the 2005 chicken meat imports were boneless cuts and 64% were bone-in cuts. Between January and June of 2006 boneless cuts saw an increase of 75% over the same period in 2005. The general rate of duty for boneless cuts is 5%, 3.75% on EU product, and free for SADC countries. Leg quarters fall under bone-in cuts and the general rate of duty is 220 c/kg, 165 c/kg for EU product, and free on product from SADC countries. The anti-dumping duty on leg quarters from 2000 put a range of duty rates on US product from 224 c/kg to 725 c/kg. Prior to 2000, the US led importers at 79% with 16,500 MT of the 21,000 MT imported. Whereas in 2005, the US exported 25 MT, while Brazil exported 33,281 MT (64%) of the total 51,908 MT.

On May 28, 2004 the International Trade Administration (ITAC) notified all parties the anti-dumping duty would expire in 2005 if no requests to continue the duty were made. The South African Poultry Association submitted a request and the process is ongoing.

Of the 57% chicken products imported in 2005, mechanically separated chicken, which is duty free and used in the processing and canning industry, comprised about 70% and offal (includes feet, claws, skins, livers, necks, hearts, and stomachs) around 30%. In the first half of 2006, mechanically separated chicken imports saw a rise of 52% in when compared to the same period in the prior year. Offal has a general duty rate of 27% and is duty free for EU and SADC products.

An estimated 5,000 MT of turkey meat was produced in 2005, and projections for 2006 estimate similar levels; yet 2007 is predicting production to reach 7,000 MT mostly like due to the emergence of a producer assuring year round supplies. Turkey production in South Africa is very limited and the market is controlled by duty free imports. In 2005, whole bird imports fell about 30%. US whole body turkey imports realized 429 MT in 2003, nothing in 2004, and 56 MT in 2005.

Late August 2006, a farm in the North-West and Gauteng Provinces were placed under quarantine, due to avian influenza. Testing showed H5 to be present and the N component unclear. An investigation into the illegal importation of the water bird eggs is pending.
Source: USDA FAS/Promed/news wires

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