chicken |
S. African
poultry industry workers marched to the European Union's
headquarters in Pretoria, accusing the EU of dumping cheap chicken in
the country. The EU says it is not the cause of the industry's woes.
About 500 workers,
former workers and company managers from the South African poultry
sector took part in the protest, warning that the local poultry sector
was on the brink of collapse due to the dumping of cheap chicken. The
message on the banners was clear: "Organize or starve," one read while
another proclaimed "Dumping destroys SA jobs."
The South African
Poultry Association (SAPA) is calling for a stop to the imports which it
says have led to at least 5,000 jobs being lost. The country's largest
poultry producer Rainbow Chicken Limited (RCL)last month laid off 1,350
employees, that's about 20 percent of its workforce, and is selling 15
of its 25 farms.
Financial and health concerns
The SAPA accuses the EU, along with Brazil and the US, of dumping surplus chicken in their country.
They allege that up
to 30,000 tonnes of chicken portions not wanted in these countries are
being exported to South Africa monthly at extremely low prices which is
choking the local market.
Kevin Lovell, Chief Executive Officer at SAPA, warned that for every 10,000 tonnes imported, up to 1,000 jobs could be lost.
Lovell said, "We
are a waste dump for Europe's leftovers and that's a terrible thing to
be. We are a developing part of the world. We don't want to be anybody's
waste dump, so it's harming the South African industry."
He added,
"Essentially, all of our trouble is because of the EU, not anybody else.
Don't blame the Brazilians. Don't blame the Americans. Accept that this
is an EU problem caused by the EU."
Lovell said while
the EU producers make enough money marketing chicken breasts in their
home market, the leftovers (mainly chicken legs and wings that is
considered as dark meat) is sold as a waste product.
Frozen leg quarters
imported to South Africa from Europe cost R17.52 per kilogram (one
euro, twenty-one cents, or US$1.30) which is 30 percent cheaper than
local producers.
The demonstrators
on Wednesday handed a protest note to an official from the Delegation of
the European Union in Pretoria as a heavy police presence monitored the
event.
"We are protesting
because of chicken from overseas. We're not sure they are healthy and
they are going to destroy our work," Elizabeth Mokale, a chicken farm
laborer from Rustenburg in North West province, said.
EU hits back
However, the EU has
dismissed SAPA's claims and said the volume of EU chicken imported to
South Africa was too small to be responsible for the crisis.
"When people are
losing livelihoods, trade deals can be a handy scapegoat," EU Ambassador
Marcus Cornaro told reporters.
The Chief Executive
Officer of the South African Association of Meat Importers and
Exporters, David Wolpert, also rejected the protesters' claims. "We have
continuously heard of lower prices of imports as opposed to local
products, but that fact has never been proved to us. Our figures show
that import prices have ever been more expensive than the local
equivalent," he said.
The EU cited lack
of competition, a severe drought pushing up feed prices, rising
electricity costs and injecting brine as major problems affecting the
poultry industry, rather than EU imports.
Government action fails to quell protests.
The row marks a
rocky start to the European Partnership Agreement, a free trade deal
signed last year by the EU and southern African countries, including
South Africa.
According to
figures from Brussels, EU exports account for less than seven percent of
total South African chicken consumption. But the South African Poultry
Association disputes this figure, saying at least 30 to 35 percent of
the total consumption of poultry products in South Africa was imported
from EU countries.
On top of tough
avian flu restrictions, South Africa had previously imposed anti-dumping
duties on EU importers, and in December also introduced an extra
"safeguard" tariff to try to protect the industry.
But this is not
enough for South Africa's chicken producers who continue to call on the
government to increase protection from European imports.
SAPA's Kevin Lovell
warned that a lot of companies in the industry are closing down. "The
best solution for us is that the developed world acknowledges it's fine
for their consumers to have dietary preferences, but it's wrong for the
consequences of those preferences to be exported. That is the best
solution. If there was a lawful ban, we would obviously support it.," he
said.
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