Bilateral trade agreements play a central role in South Africa’s poultry industry, influencing production, consumption, imports, and exports. These agreements–which aim to eliminate trade barriers–have opened new opportunities for economic growth.
They also ensure access to essential feeds such as maize and soybeans, critical for cost-effective poultry production.
Importance of Bilateral Trade
According to a report by the National Agricultural Marketing Council (NAMC), by stabilising supply chains, these agreements help South African producers remain competitive. They also encourage technological collaboration in areas like advanced breeding, veterinary practices, and biosecurity, which boosts productivity and enhances product quality.
The poultry sector plays a key role in South Africa’s agricultural economy, providing employment across farming, processing, and logistics. Expanded export opportunities facilitated by bilateral trade agreements create more jobs and contribute to economic growth.
The industry also supports related sectors such as feed production, packaging, and transportation, increasing its impact on the broader economy.
Growth is driven by rising household demand, the food service sector, and expanded access to African markets through the African Continental Free Trade Area (AfCFTA), which connects over 800 million consumers across the continent, ChickenFacts previously reported.
Agreements such as the Southern African Development Community (SADC) and preferential trade arrangements with the European Union (EU) grant tariff-free access to South Africa’s domestic market for member countries.
However, as a result of the ongoing argument from South Africa’s poultry industry regarding competitively priced imports and its impact on local producers, the South African government implemented high tariffs on imported poultry, particularly chicken bone-in cuts- the most favoured portion of chicken consumed by the South African population.
While these protective measures offer relief, they come with drawbacks. Higher tariffs have led to increased consumer prices and triggered trade disputes with exporting countries.
The Association of Meat Importers and Exporters (AMIE) has been critical of excessive tariffs, arguing that they hurt consumers by raising prices and limiting access to competitively priced protein sources.
AMIE has called for trade policies that ensure food security, promote fair competition, and encourage collaboration between local producers and importers to strengthen the industry as a whole.
South Africa’s trade relations under the Africa Growth and Opportunity Act (AGOA), remain critical as the agreement nears its September 2025 expiry. The Department of Trade, Industry and Competition (DTIC) Chief Director for Bilateral Trade Relations, Malose Letsoalo, has expressed optimism about its extension, citing bipartisan support in the US Congress.
A proposed bill by Senator Chris Coons and Senator James Risch seeks to extend AGOA for up to 16 years, aligning with calls from African governments for a ten-year extension to ensure trade certainty.
Eligible sub-Saharan African countries benefited from AGOA, which granted duty-free access to the US market. In 2022 alone, this enabled over $3 billion (R55 billion) worth of South African exports, primarily motor vehicles, fruit, and wine. By November 2023, South African exports under AGOA had already reached $2.9 billion.
However, the future of AGOA remains uncertain as the US President Donald Trump administration has threatened to cut South Africa’s participation for its international position that are contrary to that of the US on matters such as Russia’s invasion of Ukraine, and the Israeli offensive in Gaza. It is also critical of South Africa’s close relations with China.
Professor of Economics at the University of Cape Town, Lawrence Edwards, Head of Trade and Regional Integration at DNA Economics Matthew Stern, and Lecturer at the University of Cape Town Jing Chien have said that South Africa cannot rely on domestic consumption alone.
The trio said South Africa’s trade policies have seen stagnating export volumes, overreliance on commodities, and limited product diversification as key challenges and have called for evidence-based trade policies to boost competitiveness, streamline export processes, and reduce trade barriers.
“South Africa’s domestic market is too small to drive manufacturing-led growth on its own,” they said.
“Creating an export-oriented economy requires policies that enhance competitiveness, lower costs, and expand trade alliances. Identifying new markets, strengthening industrial production, and leveraging opportunities under agreements like AfCFTA will be essential,” they said.
With trade central to South Africa’s economic recovery, strategic partnerships, targeted reforms, and export promotion are key to positioning the poultry industry and broader economy for long-term growth.
Policymakers, producers, and industry stakeholders must collaborate to navigate the challenges and maximise the opportunities offered by regional and global trade agreements.
In the meantime, ChickenFacts remains committed to tracking developments and will continue to offer fact-checked updates on trade solutions.
