SA chicken farm workers pay the price of import price war this Christmas

Thousands of chicken farm employees face an uncertain Christmas.
Thousands of chicken farm employees face an uncertain Christmas.
More than 1000 local chicken farm workers in KwaZulu-Natal are facing a bleak Christmas due to the increased “dumping” of imported chicken on the South African market.

The import-driven price war has seen more than 288 081 tons of chicken brought into the country during the first half of 2016‚ with the European Union accounting for 45.5% and Brazil contributing 43.2%. The remainder was mostly imported from the United States.

South Africa consumes the most chicken on the continent‚ but imports have hit local poultry farms hard.

RCL Foods — which produces Rainbow — will halve production at its Hammarsdale plant from January. But poultry industry insiders have warned that for every 10 000 tons of imported chicken as many as 1000 jobs may be lost with as many as 6000 affected across the industry.

This has jolted the KwaZulu-Natal Economic Council into action with economic development MEC Sihle Zikalala assigning senior officials in his department to work closely with representatives of workers and the poultry industry in the province to find possible solutions.

“We take this as an urgent matter requiring collective attention by all the affected parties‚” he said.

Congress of SA Trade Unions (Cosatu) provincial secretary Edwin Mkhize said: “We can’t keep quiet while more than 1500 workers are facing the prospect of retrenchment.”

He said the council should advise on how to save jobs not only at Rainbow Chickens but in the poultry industry as a whole.

Negotiations with the poultry industry are hamstrung by a lack of union representation in the sector following the Food and Allied Workers Union curtailing its membership with Cosatu‚ said Mkhize.

Around 300 of the total 500 employees working at the farms face the prospect of losing their jobs while 900 of an estimated 1500 employed in the processing plants and on the verge of joining the growing army of unemployed people.

The SA Poultry Association warned that once the local industry has been forced to shut down‚ the country will be at the mercy of foreign producers.

Chicken is the main source of protein for many South African consumers and the industry that produces it provides livelihoods for over 130 000 workers. – Tiso Black Star Group Digital/The Times

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