DA calls for public hearings on the poultry industry

1 February 2017

Following a number of job cuts and indications of "dumping" of imported chicken, it is time that Parliament held full public hearings on the poultry industry. The Democratic Alliance will write to the Chairperson of the Portfolio Committee on Trade and Industry to request full public hearings on the poultry industry.

These public hearings must be open to the public and include all the affected role-players, including producers, importers, consumer bodies, the Department of Trade and Industry and major retail groups.

These hearings will provide a much-needed opportunity to those affected to raise their concerns and together, to propose possible solutions to stem job losses. It will also establish the facts about whether the Department could have or should have acted sooner.

The local poultry industry asserts that the foreign chicken producers (in particular EU-based producers) have been dumping offcuts of "dark meat" - chicken thighs and drumsticks - in SA at below-cost price.

Although some protective duties have already been put in place by the government, the industry is calling for broader protections, and particularly against imports from the EU.

At the same time, international law requires incontrovertible evidence of dumping before protective tariffs can be imposed.

South African producers must compete on a level playing field, and if this is not currently the case then additional tariff measures are warranted. However, protecting industries as a matter, of course, is not a sustainable or sensible policy.

That is why full public hearings, with input from all the players in the industry, will go a long way towards establishing the facts and identifying what can be done to make South African businesses more globally competitive.

We believe there can be no objection from producers and the Portfolio Committee to the holding of these hearings, and we look forward to these taking place without delay.

Issued by Geordin Hill-Lewis, DA Shadow Minister of Trade and Industry, 1 February 2017