FAWU Rejects Suspension
Media Statement
FAWU has
learnt that the DTIC Minister, Mr Ebrahim Patel, has decided to suspend the imposition of the anti-dumping duties for
the period of 12 months. This is said to be a contribution by the
department to deal with the current rapid rise of food prices in the SACU
market and globally including the impact it has towards the poor.
FAWU is
against this decision because in the long run, this will collapse the entire
poultry industry.
The ITAC
(International Trade Administration Commission) initiated an investigation to
ascertain if indeed there is an unfair trade in the sector. The conclusion of
the investigation necessitated the ITAC to recommend that the Minister in the
Department of Trade, Industry and Commission should impose a definitive anti-dumping
duties. This means that there would be an existing protection of the local
supply of chickens in the country.
FAWU
welcomes the outcome from the ITAC (International Trade and Administration
Commission) that anti-dumping duties be imposed against imports from Brazil,
Denmark, Ireland, Poland and Spain.
Instead of
the DTIC Minister following this recommendation, the Minister decided to
suspend the imposition of the anti-dumping duties for the period of 12 months. This
therefore gives an open space for other countries to take over South African
market of which will lead to the collapse of the poultry sector.
We therefore
dispute the actions of the Minister as it ultimately destroys jobs in the
poultry sector which is practically the opposite of this recommendation by
ITAC.
We initially
in our marches argued against a 30% to 35% share of foreign chickens as a
result of chicken dumping as far back in 2016.
Chicken
dumping leads to imported chicken potions taking the large percentage in the
South African market at a way cheaper price than the local chickens. Consumers
will obviously buy cheaper chicken potions because local consumers are price
sensitive and it is not the fault of consumers to be price sensitive, more so
that the salary scale of workers in South Africa is low, but it is the fault of
practices of unfair trade where chickens are dumped in the country.
It goes
further that there will then be less chicken sold from local supply since
competition favours the imported chicken. This result to workers being
retrenched, as we already lost over 2 000 jobs from the previous chicken
dumping. There will then be closure of small-scale farms and small business
that supply farms as they cannot continue participating in the value chain. It
is even worse for the informal economy as most poor communities survive through
selling chickens on the streets
The
unemployment being at a record high of over 40%, we cannot allow this unfair
trade as it puts the jobs of more workers in South Africa at risk, threatening
their livelihoods, their families and even their communities.
The result
of our mandate must conform to job security, food security and sovereignty of
our economy.
The DTIC Minister is well aware that the absence of anti-dumping duties leads
to the opposite of this mandate as it leads to job losses through imports
taking advantage with influx of chicken potions that increase more than the
locally supplied chicken in the market.
The same department initiated a Poultry Master Plan of which its design
was to protect the sector following the very same unfair trade which
contributed to loss of jobs among others. There was a decision by the labour, Department
of Trade Industry and Commission together with the Department of Agriculture,
Land Reform and Rural Development, employer representatives and other stakeholders
that there should be a growing number of
small-scale poultry farming and local production networks, increasing the scale
of contract farming supply, large integrated producers, growth in industrial
scale food processing, growth in employment (at the time agreed to be 3 900
by 2020), more black farmers participating in the value chain through the
application of transformation, growth of exports by opening other markets in
the European countries including in the Africa region, etc.
The current
jobs created through Master Plan is 1 640. The current foreign chicken in the
market is now less by 5% which goes to indicate a positive direction in terms
of the international balance of trade. Now this decision is a give-away to chicken
dumping and shall lead to the opposite of this Master Plan. This shall mean
that grain and generally the agricultural sector, is at risk of even contributing
less to the GDP.
The DTIC,
cannot reverse all the revolutionary strides against the European Union countries
to make sure that the poultry industry is protected, jobs are secured including
our economy. Meanwhile FAWU leadership shall be inviting the Minister for an
urgent meeting, we therefore demand that the Minister must follow the
recommendations of International Trade Administration Commission and impose definitive unti-dumping duties.
For more information,
please contact the General Secretary, Mayoyo Mngomezulu on 082 440 4039 or
at mngomezulu.mayoyo@fawu.org.za or the Deputy General Secretary,
Vuka Chonco on 082 499 5854 or vuka.chonco@fawu.org.za
