SOUTH AFRICA – Poultry and pork producers in South Africa are struggling to keep their heads above water, not only because of the impact of dry climatic conditions on production, but also because they have to compete with “cheaper” imported products. Glenneis Kriel reports.
South Africa, which has an unemployment rate of over 25 per cent, is exporting thousands of jobs each year due to poultry and pork imports.
Gary Arnold, director of business development at Astral Foods, explained that imported poultry directly competes with locally produced products for market share, as the imported products are exported at lower, largely subsidised, prices making it difficult for local producers to compete.
Imports in effect limit the potential of the local industry to reinvest and expand production with the creation of much needed jobs.
The poultry industry employs more than 120,000 people through both direct and indirect jobs. The South African Poultry Association (SAPA) has estimated that another 18,000 jobs could be created if poultry meat imports were stopped.
“It is estimated that we lose a thousand jobs for every 10 000 tons of poultry imported,” Mr Arnold said.
The same is happening in the pork industry. According to Simon Streicher, CEO of the South African Pork Producers Association (SAPPO), South African producers have the capacity to increase production by at least ten per cent to meet the country’s full demand.
“Increasing production would however result in an oversupply in the market, because we have signed a trade agreement that allows Europe to export pork to South Africa,” he said.
Imports were also having a negative impact on up-stream supply chains, such as the feed industry and raw material farming businesses that supply ingredients for feed production.
Andy Crocker, managing director of Meadow Feeds, said the feed industry had spare capacity, which was not being filled by growth in the livestock producing sectors, because of imports that have become a significant competitor in the poultry, pork and dairy sectors.
Read More:http://www.istadd.com/south-africa-the-cost-to-farmers-of-cheap-meat-imports/
(All Rights Reserved)