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South African poultry firms consider antidumping case

The South African Poultry Association is looking into bringing an anti-dumping case against Brazilian chicken imports, saying that some products are selling for a third of what they're selling for in their country of origin.

In particular, Astral Foods is concerned that unfair imports could hurt company profits.

Imports over Christmas were up 42% from 2009, translating into 21,5-million chicken carcasses or 5-million per week against local production of 18,5-million per week, Astral Foods CEO Chris Schutte said.

The strong rand in December saw poultry imports up to R3 cheaper per kilogram than locally produced product. "These portions are being sold at lower prices here than the country of origin. That constitutes dumping," Schutte said.

The industry is particularly concerned about the surge in imports of the leg quarter portion, as opposed to deboned chicken that still has to be processed. Importers of intact leg portions compete directly with producers for the individually quick frozen market, which accounts for 65%-70% of all chicken sold in SA.

"Opportunism" on the rand’s value was behind the rise in imports, he said. About 71% come from Brazil, with Argentina second on 10%.

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Astral Foods

Editor WorldPoultry

One comment

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    That makes no sense, why would Brazil dump chicken on the SA market, their domestics pays a much higher price for poultry, they dont need to export, also Asia, Russia, Middle East and the EU is paying huge prices, it is South Africa that needs to take stock of there own back yard and cut over heads, to many hot shots in the driving seat want to make more money, what about the poor sales lady in the street who relies an leg quarters to feed her family........South Africa stop crying you blocked the USA from sending poultry because Rainbow needed to bump there shares up..........

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