Tainted by bully-boy negotiations and arsenic traces in stock feed, American chickens should be hitting South African supermarket shelves within the next two months.
This is in terms of a controversial agreement that ensures local farm produce will not be taxed when it lands in the United States.
The chicken imports could have immediate and dire consequences for 600 families in the Stutterheim district whose livelihood depends on the local Anca chicken farm.
The South African government caved to pressure from US government to allow the chicken imports or risk local produce – including wine – losing duty-free concessions under the Africa Growth and Opportunity Act (Agoa).
President Barack Obama had initially issued a warning proclamation in November to suspend SA’s agriculture benefits if a new deal on chicken imports was not signed by January 4.
The deal was signed two days later, prompting him to re-issue a ban on Agoa concessions for SA farmers if the agreement is not fully implemented by March 15.
But, while American officials and industry representatives are celebrating the opening of the SA market to 65000 tons of chicken (imports from other countries total 369000 tons and domestic production about 1.5 million tons), the South African Poultry Association (Sapa) is cynical of the Trade and Industry Department’s concession.
As part of the deal, SA has also agreed to the import of beef that is flagged as American, even though it originates in Mexico and Canada.
SA has accepted US undertakings that its meat is free of disease, including salmonella and mad cow disease. Sapa has continued to flag concerns about arsenic being used in American poultry feed.
Sapa Chief executive Kevin Lovell said this week that South Africa was justified in holding out over US non-compliance with international health standards on poultry, beef and pork.
While the poultry industry eventually agreed to drop the R9.40/kg tariffs on imported US bone-in chicken, he said Sapa was unhappy with the lower health standards.
“We were very upset with the reduction in standards. In terms of food safety, we should make standards safer, not weaker,” he said.
Lovell said the standards SA applied to American imports were exactly the same as those applied to European chicken sold here.
“It's going to create all sorts of trade related problems with other countries,” he said.
According to Anca Foods executive Tony Isemonger, the imported chicken will be excess volumes of drumstick and thigh cuts, regarded as waste in terms of what the American market requires.
The operation employs 600 workers and takes in tons of chicken produced by emerging farmers.
Lovell said the poultry industry had a legal duty to oppose dumping – the practice of exporting surplus products at a lower price than it is sold in the home country to gain market traction.
As for the prospect of cheaper chicken being available to local consumers, he said: “There’s no such thing as cheap chickens. The price of imported chicken will be higher than the retail consumer price of local chicken.”
He said: “This is about jockeying for power by the US in their relationship with South Africa.”
US chicken on SA shelves soon
This is in terms of a controversial agreement that ensures local farm produce will not be taxed when it lands in the United States.
The chicken imports could have immediate and dire consequences for 600 families in the Stutterheim district whose livelihood depends on the local Anca chicken farm.
The South African government caved to pressure from US government to allow the chicken imports or risk local produce – including wine – losing duty-free concessions under the Africa Growth and Opportunity Act (Agoa).
President Barack Obama had initially issued a warning proclamation in November to suspend SA’s agriculture benefits if a new deal on chicken imports was not signed by January 4.
The deal was signed two days later, prompting him to re-issue a ban on Agoa concessions for SA farmers if the agreement is not fully implemented by March 15.
But, while American officials and industry representatives are celebrating the opening of the SA market to 65000 tons of chicken (imports from other countries total 369000 tons and domestic production about 1.5 million tons), the South African Poultry Association (Sapa) is cynical of the Trade and Industry Department’s concession.
As part of the deal, SA has also agreed to the import of beef that is flagged as American, even though it originates in Mexico and Canada.
SA has accepted US undertakings that its meat is free of disease, including salmonella and mad cow disease. Sapa has continued to flag concerns about arsenic being used in American poultry feed.
Sapa Chief executive Kevin Lovell said this week that South Africa was justified in holding out over US non-compliance with international health standards on poultry, beef and pork.
While the poultry industry eventually agreed to drop the R9.40/kg tariffs on imported US bone-in chicken, he said Sapa was unhappy with the lower health standards.
“We were very upset with the reduction in standards. In terms of food safety, we should make standards safer, not weaker,” he said.
Lovell said the standards SA applied to American imports were exactly the same as those applied to European chicken sold here.
“It's going to create all sorts of trade related problems with other countries,” he said.
According to Anca Foods executive Tony Isemonger, the imported chicken will be excess volumes of drumstick and thigh cuts, regarded as waste in terms of what the American market requires.
The operation employs 600 workers and takes in tons of chicken produced by emerging farmers.
Lovell said the poultry industry had a legal duty to oppose dumping – the practice of exporting surplus products at a lower price than it is sold in the home country to gain market traction.
As for the prospect of cheaper chicken being available to local consumers, he said: “There’s no such thing as cheap chickens. The price of imported chicken will be higher than the retail consumer price of local chicken.”
He said: “This is about jockeying for power by the US in their relationship with South Africa.”
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