On January 26th, the Department of Trade, Industry and Competition of the Republic of South Africa announced a rebate on both boneless and bone-in chicken imports. These will comprise a 25 percent rebate on bone-in cuts and 30 percent on boneless chicken. The decision follows applications made by the Association of Meat Importers and Exporters and reflects the disparity between supply and demand in the Nation. Predictably, the South African Poultry Association was opposed to the rebate claiming that there was no shortage of poultry meat over the Christmas period that is seasonally characterized by high demand.
The decision to grant rebates was made by the Government to reduce the effect of inflation on a critical protein ingredient. The African National Congress Party that has ruled South Africa since the transition from apartheid is facing a general election with unprecedented opposition. This is a result of rampant corruption, the unfavorable economic situation, uncontrolled crime and an inability to provide services including power.
According to USDA-FAS GAIN Report SF2024-0002 released on February 6th, “The cost of bone-in chicken meat in South Africa has increased by 28 percent over the past three years, attributed in part to anti-competitive prices due to protection from international competition.”
In March 2020, South Africa increased the most-favored-nation duties on bone-in chicken from 37 percent to 62 percent together with an increase from 12 percent to 42 percent for boneless portions. The U.S. and Brazil are subject to additional antidumping duties on bone-in chicken.
The volume of chicken meat subject to the rebate will be limited to 172,000 metric tons and the quota will be divided into quarterly increments.
During 2023 18th-ranked South Africa imported 44,324 metric tons of chicken products valued at $42.4 million with a unit cost of $957 per metric ton. Volume and value were down 20 percent compared to 2022