South Africa announces chicken rebates - GAIN
The decision was announced on January 26
8 February 2024
2 minute read
By: South Africa's Department of Trade, Industry and Competition, together with the International Trade Administration, announced the decision to implement rebates on boneless and bone-in chicken cuts on January 26, 2024, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
The decision will provide a 25% rebate on bone-in cuts and a 30% rebate on boneless chicken of imported chicken. This decision came after a directive by the Minister to investigate a possible temporary customs rebate on imported and edible offal, fresh, chilled, or frozen chicken after the country was affected by the worst Highly Pathogenic Avian Influenza since 2017 to prevent supply shortages and significant price increases.
According to news outlets, the Association of Meat Importers and Exporters (AMIE) welcomed the decision by the minister and alluded that the decision demonstrates that the government notices the plight of the poor. However, the South African Poultry Association (SAPA) argued that there is no rational argument for a rebate on tariffs, adding that there was no poultry meat shortage over the festive season and that the supply chain is well stocked.
USDA's Foreign Agricultural Service (FAS) contacts have indicated that the department was motivated to avoid further inflation of chicken meat costs and lessen the burden of expense to poor households.
The cost of bone-in chicken meat in South Africa has increased by 28% over the past three years, and a report issued last year by the Competition Commission noted concerns around the potential for the domestic industry to achieve “anti-competitive prices,” especially when protected from international competition through “high levels of trade protection.”
South Africa is currently imposing duties on poultry imports from all major suppliers. In March 2020, South Africa increased the applied most favoured nation (MFN) duties on imports of bone-in chicken from 37% to 62%, and from 12% to 42% for boneless portions. Furthermore, the United States, Brazil, Poland, Ireland, Denmark, and Spain are subjected to Anti-Dumping Duties on bone-in chicken meat.
