In a recent opinion piece, Fred Hume, Managing Director at Hume International, highlighted the double standards in South Africa’s regionalisation and heat treatment policies for poultry imports. These policies have led to staggering price inflation for poultry over the course of this year.

 

Regionalisation

Regionalisation refers to the practice of dividing the country into different regions based on disease status, allowing trade from disease-free or low-risk areas while restricting imports from high-risk regions.

Hume highlights that the endemic nature of avian flu in poultry flocks worldwide necessitates regionalisation. Failure to adopt such measures means South Africa is only paying lip service to free trade. The practical application is that the whole country is off-limits to trade if there is an outbreak anywhere in the country, even in regions that are disease-free.

The frequent outbreaks of bird flu, leading to the closure of entire countries, underscore that South Africa’s stringent policies are, in essence, non-tariff barriers to trade. These measures, Hume argues, prejudice consumers by limiting their choices and increasing costs. Imported poultry products, whether as shelf-ready items or as components of processed meats, become scarce and more expensive.

 

Heat Treatment

Heat treatment involves subjecting poultry meat to high temperatures to eliminate pathogens and ensure food safety. These measures are crucial for meat imports as they help prevent the spread of diseases, protect public health, and maintain consumer confidence in the safety of imported poultry products. When applied correctly, regionalisation and heat treatment can ensure a steady supply of safe and affordable poultry meat, benefiting both consumers and producers.

 

Double Standards in Poultry Policies

Hume provides a compelling narrative about the inconsistencies in South Africa’s trade policies concerning beef and poultry. He points out that, while China has agreed to regionalisation for beef imports from South Africa, South Africa refuses to extend the same courtesy to poultry imports, except for those from the USA. This refusal, according to Hume, is detrimental to free trade and unfairly favours local producers under the guise of phytosanitary concerns.

In contrast, the regionalisation measures incorporated into the recent trade agreement with China have boosted beef exports. Regionalisation has ensured a steady and affordable supply into the Chinese domestic market. This stark difference between beef and poultry policies underscores the inconsistent application of regionalisation measures and proves the point being made.

 

Impact on Poultry Prices

These bans and policies contribute to unwarranted price inflation for poultry products. For instance, the Cost, Insurance, and Freight (CIF) price of one kilogram of mechanically deboned meat (MDM) in the Philippines currently stands at R9.46 per kg, while in South Africa, it is approximately R17.20/kg. This is attributable to highly inconsistent trade practices and seemingly irrational import regulations.

 

Mechanically Deboned Meat

This year, the price of MDM increased roughly 50% between February and July alone, as Brazil implemented progressively strict measures to meet South Africa’s rigid import standards.

Local poultry producers do not produce MDM in significant quantities, making the majority of manufacturers dependent on imports to produce processed meat products. The high cost of MDM, a key ingredient in various processed meats such as viennas, sausages, and polonies, further exemplifies the negative impact of current policies on both producers and consumers.

 

Consumer Impact

These policies ultimately burden South African consumers, who face inflated prices for poultry—a staple protein source for many South Africans.

To provide context and refer back to the Philippine price of MDM (almost half the price of MDM in South Africa) – the Philippines currently has a 4,7% unemployment rate, in South Africa, it is a stark 32,9%. With this in mind, the price of MDM impacts the availability of affordable protein to the lower LSM groups. The need for policy reformation is crucial to alleviate this economic strain and ensure fair pricing in the poultry market.

 

Proposed Solutions

Hume proposes several solutions to alleviate the burden on South African consumers. He advocates for the adoption of regionalisation and the relaxation of excessively stringent phytosanitary requirements on imported poultry. The potential risks associated with these changes can be mitigated through scientifically proven heat treatment protocols.

Additionally, he calls for a revision of the “born, raised, and slaughtered” clause in health certificates to allow EU producers of mechanically deboned meat to source raw materials from any country currently free of bird flu. Citing Namibia as an example, Hume questions why a country with significantly fewer resources can implement these measures while South Africa cannot.

International trade agreements, like the African Growth and Opportunity Act (AGOA), could play a pivotal role in addressing these issues. Hume suggests that such agreements can be leveraged to compel South Africa to conform to more equitable trade practices. By aligning its policies with international standards, South Africa can ensure greater availability of poultry products at fair prices for its consumers.

ChickenFacts will follow the developments of these and other news stories and continue providing verified facts to consumers and the industry.