Chicken tariffs: Poor could bear the brunt of higher prices
The DA notes with concern the announcement by Trade and Industry Minister Rob Davies today of a new import tariff regime for poultry products in South Africa - with tariffs being increased to between 12% and 82% for varying categories of chicken products.
We oppose government imposed tariffs that protect uncompetitive behaviour to the detriment of consumers. The fact of the matter is that increased tariffs will result in more expensive chicken prices.
It is not clear whether the import tariffs imposed will achieve their stated objectives. What is certain is that without additional steps being taken the poor will be the worst affected by this decision.
During his announcement Minister Davies admitted to the following:
Investigations into uncompetitive behaviour by certain local chicken producers have not been concluded. This could imply continued uncompetitive practices by local producers;
Regulations into brining practices by local producers have not been finalised by the Department of Agriculture and Fisheries. Until this happens, consumers may continue to pay high prices for salt water dressed up as chicken; and
His Department has done absolutely no research into allegations of ‘round-tripping' by foreign producers, whereby chicken products will simply be diverted to our shores via Europe, thereby avoiding tariffs altogether.
We welcome the Minister's announcement that the new tariff position will be subject to an early review process to assess its impact.
In the meantime we urge the relevant government Departments to finalise their work towards ensuring that South Africa's poor are not taken advantage of by our local chicken producers.
Millions of South Africans rely on chicken products for protein and we simply cannot allow local producers to take advantage of them.
We will monitor the situation closely in the weeks and months to follow.
Statement issued by Wilmot James MP, DA Shadow Minister of Trade and Industry, September 30 2013
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