In a recent article from Business Times, Brazilian meat exporters have called on markets such as South Africa to ease protectionist measures against poultry and other meat imports, arguing “there should be no borders for food”. Brazil meat exporters urge ‘no borders for food’ (businesslive.co.za)

Brazilian Association for Animal Protein (ABPA) president Ricardo Santin said their intention was not to destabilise other markets but to complement supply in countries having meat shortages.

The call has been met with some opposition from local meat industry.

 

Food Security

In the Business Times article ABPA President, Ricardo Santin, has emphasized that access to affordable protein becomes doubly urgent when the country is experiencing disease outbreaks, and 2023’s HPAI outbreak demonstrated clearly that animal diseases are not going away any time soon and have direct impacts on South African consumers.

South African Poultry Association (SAPA) CEO Izaak Breitenbach told Business Times that since the last outbreak in November 2023, all 9.5 million birds culled have been replaced, and slaughter numbers have stabilised at about 21.5 million birds per week. Companies have since recovered financially.

Contributing to the conversation, Imameleng Mothebe, CEO of the Association of Meat Importers and Exporters of South Africa (AMIE), said the Association fully agrees with Santin’s remarks, adding that the relationship between South Africa and Brazil is crucial for food security in the country.

Brazil is the biggest exporter of poultry meat to South Africa, 67% of all chicken, excluding mechanically deboned meat, was imported from [there] in the last 12 months, and over 95% of all imported mechanically deboned meat comes from Brazil.

Meanwhile, ChickenFacts will remain close to the development of this story to report on any progress made towards better food security, a competitive and robust industry, and relief for consumers.

 

A Closer Look

The local poultry industry lobby group has expressed their concerns about chicken dumping impacting local poultry farmers. However, the reality is that poultry imports, excluding mechanically deboned meat (MDM), account for less than 20% of local consumption, with bone-in chicken imports representing an even smaller fraction.

Chicken bone-in imports are also subject to anti-dumping duties ranging from 2% – 265% and on top of that there is a general (MFN) duty of 62%.

Recent trade statistics published by SARS reveal an increase in imports of chicken offal and carcasses, suggesting that consumers are struggling to afford bone-in poultry and opting for cheaper cuts, particularly among lower-LSM (Living Standards Measure) consumers.

According to the latest import trade statistics for June 2024, imports of bone-in chicken cuts have declined, falling by 18% compared to the previous year.

The 8% rise in total chicken imports (excluding Mechanically Deboned Meat) is primarily due to a rise in imports of chicken offal and chicken carcasses, which have increased by 14% and 77%, respectively.

 

Importance of Mechanically de-boned meat (MDM)

MDM (Mechanically Deboned Meat) is a crucial component in the production of processed meats like polony and vienna sausages, which are important protein sources for lower-income consumers.

Since South Africa produces only marginal quantities of MDM, imports of this ingredient are essential for the meat manufacturing industry.

Poultry imports are critical for maintaining access to high-quality, affordable protein and ensuring the nation’s food security. Despite ongoing efforts, the local poultry industry cannot meet the demand and depends on imports to fill the gap.

 

Import Market Access

Poultry imports are necessary for securing access to high-quality, affordable protein for South African consumers and ensuring the nation’s food security. Despite efforts, the local poultry industry cannot meet the demand, and rely on imports to bridge the shortfall. There is a growing concern over the industry’s diminishing market access for imports,  potentially leading to higher prices and supply shortages.

One example of this is the impact that global outbreaks of Highly Pathogenic Avian Influenza (HPAI) have on the local availability of affordable protein.

According to World Organisation for Animal Health (WOAH) guidelines and the Terrestrial Animal Health Code Article 10.4.6 – “If Infection with High Pathogenicity Avian Influenza virus has occurred in poultry in a previously free country or zone, the free status may be regained after a minimum period of 28 days after a stamping-out policy has been completed”.

HPAI-free status for a country or zone is obtained through submission of a ‘Self-declaration’ if WOAH guidelines are met and the stamping-out policy has been completed after 28 days.

However, South Africa does not recognise a self-declaration as recovery-free status and requires a close-out report to be submitted to the Department of Agriculture for review. Only when the Department issues a clearance notice can imports resume.

Currently, several countries have long been HPAI-free awaiting clearance from the Department of Agriculture as this process is lengthy. This includes Denmark, Belgium, France, the UK, Chile, and the USA States of Maryland and Pennsylvania.

Fewer exporting countries mean there is less competition to export poultry to South Africa. A lack of competition can lead to higher prices. When added to the obligatory duties on imported chicken, prices go up even further impacting the end-user, the South African consumer.

Furthermore, if South Africa should experience an HPAI outbreak which leads to shortages, there will be a limit to the amount of poultry that can be imported to fill the gap. This may severely impact food security for South Africa as a whole, especially the poorest of the poor.

 

In Conclusion

It is apparent from the facts and various points of view that Mr Santin has a valid point – not only about Brazilian imports but about the importance of healthy bilateral trade in multiple markets to ensure food security and affordable protein.

ChickenFacts will follow this story closely to report on policy changes or collaboration.