The policy review shows clearly that duties that are applied on imported chicken drive up the cost of chicken , which hurts South African consumers . The South African consumer is under enormous financial pressure – everything is rising , including electricity , transport and concerningly , the cost of essential foods . This cost-of-living crisis is being made worse by rising duties and the fall of poultry imports into South Africa . We have seen the
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price of chicken soar on a month-by-month and year-on-year basis . The Reserve Bank ’ s report says that duties on frozen chicken have increased consumer prices by between 13 % and 40 %. This is also highlighted in the report , which shows that duties have more than trebled between 2013 and 2022 , increasing from 27 % to 82 % on imported frozen whole birds and from 18 % to 62 % on frozen bone-in chicken cuts .
As AMIE , we are calling for a comprehensive review of all import duties on poultry . It ’ s time that the Government takes a long , hard look at its trade policy , as we know has been protecting the large domestic manufacturers at the expense of our members and the South African consumers . The domestic poultry industry has been protected for a very long time . While
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there is evidence that the large domestic companies have benefited financially , there is no evidence that this has had any material impact on job creation or the industry ’ s ability to meet growing local demand for chicken .
What is evident is that duties have had a significant negative impact on consumers ’ ability to afford this vital protein source . Also , the Poultry Master Plan prioritises exports as a way to grow the local industry . Nothing has been done at all to grow the export market for South African chicken , which is a massive lost opportunity , not only for domestic producers ( their own growth ), but also for the creation of jobs .
“ Protection ”, as the Reserve Bank ’ s report shows , while great for shareholders of the large producers , has the unintended consequence of pushing up the cost of
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chicken , which is hugely detrimental for consumers .
UPDATE ON BORDER MANAGEMENT AUTHORITY ( BMA ) MATTERS During the first customs and excise national operation stakeholders forum ( CENOF ) meeting held at the end of September 2022 , Mr . Colbert Mbuyane updated the meeting in regards that the BMA will officially launch in April 2023 . He further advised that there will be a need for the BMA to engage and advise how their border guard will impact on trade facilitation and their plans going forward . He also arranged for the BMA to present at the next CENOF engagement and arrange a separate meeting with SARS and the private sector . CLA
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