South African Keeping Cheap Brazilian Chicks in Line with Duties

The application for an investigation into possible dumping by Brazilian producers was brought by the South African Poultry Association. Its chairman, Marius Gericke, said on Feb. 13, 2012 the association welcomed the findings.

It believed Brazilian poultry producers had not adhered to the principles of fair trade and had not accessed the South African market in an entirely fair manner. "We do not seek illegal protectionism in our aim of continuing to be the main source of affordable protein for the South African consumer," Mr Gericke said.

David Wolpert, CEO of the Association of Meat Importers and Exporters, said on Feb. 13, 2012 he remained convinced there was no dumping from Brazil. He had only received details of the International Trade Administration Commission report on Feb. 13, 2012 and would respond more comprehensively once he had studied it.

Ms Xabendlini said after the investigation had been finalised the commission would decide whether to impose the additional duties for five years, or whether the duties were too high, or not necessary at all.

The investigation so far had shown evidence of price undercutting, reduced growth rates and market share erosion. On the strength of those findings, the commission had decided to ask for the provisional additional duty payments over and above current duties of 27% on whole birds and R2,20/kg on boneless cuts.

The aim of antidumping duties was not to ban imports altogether, but to ensure that foreign producers competed fairly with domestic producers, Ms Xabendlini said.

Imports of whole frozen chicken from Brazil increased by 300% from about 3,3-million kilograms in 2008 to about 13-million kilograms in 2010. Imports from other countries grew by 180% in 2010. Imports of boneless portions from Brazil grew by 52% from roughly 16,6-million kilograms in 2008 to 25,4-million kilograms in 2010.