'More competitive environment' needed to enable cheaper chicken production
An economist has recommended that government create a more competitive environment to enable South Africa to produce chicken at a much lower cost than products sold in Brazil.
Trade Minister Ebrahim Patel last week issued a notice, saying that a 12-month suspension on antidumping duties for poultry from five countries had come to an end.
Economist Dawie Roodt believes the tariff decision should be reconsidered.
"The so-called ban means that chicken prices will go up because there will be an additional levy whenever you want to import chicken from various countries.
"Inevitably, what this means is that it will become more expensive to buy most cuts of chicken and chicken protein is an important form of protein, especially for the poor. In the meantime, this ban will result in an increase in the price of chicken, and the poor will be mostly affected."
Roodt says South Africa's local industries suffer due to our uncompetitive environment.
"That is mostly because of the wrong macro-economic policies and an incompetent and corrupt government. That is the reason why we cannot compete internationally.
"So what is going to happen now is that we are going to implement additional import duties and that is going to make chicken more expensive."
