SAPA guns for Brazilian poultry

Yanna Smith - It appears that the South African Poultry Association (SAPA) is determined to either entirely halt or severely limit Brazilian chicken imports into that country.

On 30 November last year, the South African Government Gazette reported that SAPA had applied to the International Trade Administration Commission (ITAC) to increase the South African customs duty on bone-in chicken portions from 37% to 82%, and the duty on boneless chicken portions from 12% to 82%.

At the time, the Brazilian Association of Animal Protein warned of dire consequences for South African consumers and the economy, should the application for higher import tariffs be granted.

It said the argument that South African, as a “globally efficient producer of chicken” faces profit challenges and job losses due to imports of frozen chicken “does not sustain itself”.

Outbreaks

It held the view that bird flu outbreaks since 2017 were the main reason why the poultry industry in South Africa was facing challenges.

The Brazilians may be correct. SAPA reported that the impact of bird flu had resulted in a loss of revenue of N$954 million. The poultry industry in South Africa is worth around N$46 billion.

While the decision by ITAC is still under review, SAPA appears to have come out guns blazing. Its recently appointed general manager for broiler organisations, Izaak Breitenbach, has penned a letter to the media, warning of the dangers of consuming chicken imported from Brazil.

In the 18 February letter, seen by Market Watch, Breitenbach writes that consumers in South Africa “should be paying close attention to the continuing food safety scandals in Brazil’s meat industry”.

‘Foul fowl’

The document is titled ‘Beware foul Brazilian fowl’.

Breitenbach digs into the industry in Brazil, which has seen its fair share of troubles including the 2017 Operation Carne Fraca, or ‘weak meat’, which showed serious loopholes in the safety mechanisms at beef, poultry and pork processors in that country.

He continues by saying that the European Union, after this operation’s results went public, banned imports from 20 meat-processing plants (including beef, pork and poultry). China banned all such imports from Brazil and Saudi Arabia halted imports from five of the 58 companies it makes use of, “presumably for the same reason,” he says.

He also discussed a recall last week by Brazilian company BFR SA of 500 tonnes of chicken due to fears of possible salmonella contamination.

“An additional cause of concern is that, due to a lack of resources, our health inspectors are not as strict as they could be.

“I have requested action against Brazilian imports. EU countries refuse to allow Brazilian imports until producers have been clear of salmonella for six months. We should do the same.”

Breitenbach confirmed to Market Watch that the document was authentic and was authored by him.

Namibia

While SAPA is vehemently fighting to protect its industry, its jobs and its profits, it has approached the High Court in Windhoek to have restrictions on poultry imports into Namibia set aside.

SAPA, along with South African chicken producers Astral Foods Ltd, Supreme Poultry, Crown Chickens, Sovereign Foods, Afgri Poultry and Rainbow Farms, brought the application against Namibia's trade minister.

The government, Namib Poultry Industries and the Meat Board are cited as the second, third and fourth respondents.

This case follows a ruling by the Supreme Court that High Court Judge Shafimana Ueitele's dismissal of the application on 8 July 2016, without hearing the merits of the case, was wrong. The matter was sent back to the High Court.

In April 2013, then trade minister Calle Schlettwein had limited imports of frozen chicken portions to 1 500 tonnes a month.

The entire Namibian poultry industry is equivalent to 2% of South Africa's poultry production.