SA poultry industry faces conflict: protection vs. competition

Source: chicken facts

The puzzling US quota flashpoint

At the heart of the current tension is the 72,000-tonnes quota granted to US poultry exporters, which exempts them from anti-dumping duties.

Local poultry argues that this arrangement undermines local producers by allowing artificially low-priced chicken to flood the domestic market.

The South African Poultry Association (SAPA) wants to end the quota agreement, arguing that with AGOA possibly ending, there is no longer a reason for the quota.

SAPA’s concerns about the chicken import quota are overstated; the 72,000-tonne limit is underused.

In 2024, South Africa imported only 11,350 tonnes of bone-in chicken, and just 1,570 tonnes from January to August this year.

Local producers argue that the low import figures from the US is due to the country’s extensive bird flu outbreaks.

While bird flu in the USA has impacted supply, the main issue is affordability. US imports still face a 62% MFN tariff, making them too expensive to compete locally.

Perhaps SAPA’s concern is more about securing industry sovereignty than about the ‘threat’ posed by the US poultry quota to local producers. Considering the timing, it could also be seen as a deflection from the Competition Commission’s Anti-Trust probe.

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Pie in the sky export ambitions

Despite some progress in exporting cooked chicken to markets such as the EU, UK, UAE, and Saudi Arabia, South Africa’s poultry sector remains frustrated by government shortcomings in fulfilling the poultry master plan’s vision for export growth.

Industry voices like SAPA and FairPlay blame stalled export negotiations and inadequate investment in veterinary certification infrastructure, leaving producers with world-class facilities but few new markets.

This blame game raises doubts about both government and industry commitment to meaningful exports, especially as local poultry interests continue lobbying for stricter import controls while the sector lags behind other agricultural exports, such as red meat.

High MFN import duties signal an inconsistency between aspirations for export growth and South Africa’s protectionist policies for imported poultry.

Restricted bilateral trade does not demonstrate a clear commitment to accessing international markets.

A sector at odds with itself?

The poultry industry’s current messaging reveals a convoluted stance. It seeks protection from imports while seeking access to foreign markets. It calls for government support while resisting regulatory oversight.

It claims the industry is fighting for survival while reporting record profits.

What remains unclear is whether the sector’s calls for intervention reflect genuine structural vulnerabilities or a strategic effort to consolidate market power under the guise of national interest.

Looking ahead: Impartiality

As the Department of Trade, Industry and Competition (DTIC) prepares to roll out phase two of the poultry master plan, clarity and accountability will be critical.

Export facilitation must be matched by transparent trade negotiations and reciprocal market access.

Protectionist measures should be balanced against consumer affordability and regional food security. And competition oversight must proceed without undue influence from industry narratives.

The poultry sector remains a cornerstone of South Africa’s agricultural economy. Its success is vital to rural livelihoods, national nutrition, and industrial growth.

But success must be built on objectivity, not protectionism.

As the industry navigates its next chapter, it must decide whether it wants to be a global competitor or a domestic incumbent shielded from scrutiny.