Chicken importers are hiding the truth about anti-dumping duties

In “We’re talking about feeding the poorest of the poor” (Newsmaker, August 13), there are two gaping holes in the arguments of [Association of Meat Importers & Exporters executive member] Georg Southey.

The first is that anti-dumping duties of 265% will not have any effect on chicken imports or local retail prices.

This is a fallacy propagated by chicken importers and 265% is the only number they quote. It’s designed to deceive the public and journalists.

The truth is that anti-dumping duties on chicken imports from Brazil and four EU countries apply in a range. The lowest duties will apply to most imports because those producers engaged with South African authorities during their anti-dumping investigation.

What importers hide is that the big exporters will pay an extra 2% (Poland and Ireland), 3% (Brazil) and 7% (Spain and Denmark).

The second truth is that the impact of these duties on retail prices will be negligible. Southey dismisses research by Genesis Analytics because the local industry paid for it. Genesis is one of South Africa’s most respected economics and competition consultancies, and its view carries weight.

Genesis found the impact of the new anti-dumping duties on retail chicken prices would potentially average a maximum of 2.5%, but would in reality be a lot lower. Competitive forces would keep prices down.

And to link anti-dumping duties to food security via the price rise fallacy is disingenuous. This is another of the Association of Meat Importers & Exporters’ false premises.

Instead of spreading scare stories about huge price rises, Southey should stick to the facts. — Francois Baird, founder, The FairPlay Movement, by e-mail