Poultry Tariffs in South Africa: Levelling the Playing Field or Rewarding Inefficiency?

Hobbs, Jacklynne; Draper, Peter; Beswick, Claire

doi:10.1007/978-3-319-67014-0_14

Cited by 3 publications

(5 citation statements)

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“…The problem investigated in this present paper is focused around the use of strategic policy in the form import tariffs that are intended to regulate import competition in a bid to promote domestic industry production. To set out the context, this literature discussion apart from identifying literature and studies (Coppo 2018;Hobbs et al 2018;Lubinga et al 2018;Sibanda 2020;Ganbaatar et al 2021;Fathelrahman et al 2021;Schiavo et al 2021;Kriel 2022;Sun et al 2022) carried out in the context of the use of trade policy instruments to regulate food imports, an account of other identified factors influencing domestic production is also presented in the literature review. In an investigation on procedural requirements prior to imposing anti-dumping measures, Sibanda (2020) concluded that South Africa was World Trade Organization (WTO) compliant and explains that the anti-dumping duties are in place to prevent the negative impacts of dumped products on the domestic industry.…”

Section: The Literature Discussionmentioning

confidence: 99%

“…However, industrial policies and practices together with import tariffs as instruments of trade policy that are applied at different stages of agricultural value chains are motivated by a search for beneficial economic and market outcomes, often leading to contestations, disputes, and policy reversals in sectors of strategic national importance such as in the poultry sector of South Africa. Disputes focused on imported poultry, specifically broiler meat from Brazil into South Africa has received much attention in literature (Sibanda 2014;Khanderia 2016;van der Westhuizen 2016;Hobbs et al 2018;Lehloenya 2018). Such studies have elaborated the pursuit of policies centered around increased import tariffs to deter poultry imports, protect domestic production, and possibly entice producers to expand local production in order to fill the potential import gap created by increased demand for livestock products.…”

Section: Introductionmentioning

confidence: 99%

“…To protect the industry in the wake of perceived increases in cheap poultry imports, some stakeholders in the poultry industry have advocated for import tariffs and petitioned the International Trade Administration Commission (ITAC) of South Africa, and such action has most recently in 2020 led to an increase in the Ad Valorem tariff (defined as a tariff rate charged as a percentage of the price 1 ) following a previous adjustment in tariffs made in September 2013 (Tregenna and Kwaramba 2014). Hobbs et al (2018) characterized the use of tariffs as a contested issue given the differing interests between poultry producers, importers and exporters of poultry and poultry products. In general, on the topic of the use of tariffs in their different variations as instruments to protect domestic industries, several authors (Jeon and Ahn 2017;Ho Dinh et al 2020;Muchopa 2021;Ya and Pei 2022) focusing on different countries, agricultural industries and different commodities concur that priority must be afforded to industries that have significant impacts on the domestic economy however, at times the full intended benefits are not realized due to the presentation of certain inefficiencies.…”

Section: Introductionmentioning

confidence: 99%

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Do Import Tariff Adjustments Bolster Domestic Production? Analysis of the South African-Brazilian Poultry Market Case

Nkgadima

Muchopa

2022

Economies

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The South African poultry industry plays an important food security contributory role, hence, consumer and producer interests ought to be accounted for in order to maintain the long term value of the industry in the presence of import competition. This study used the Error Correction Model (ECM) to investigate the relationship between the variables as well as the Impulse Response Model to assess the level of responsiveness of import volume and domestic production due to changes in the import tariff for the period 2010m04 to 2020m06. The ECM results with a negative ECT value of −0.53, indicate that a long run relationship exists between domestic broiler production volume, imported broiler quantity and the Ad Valorem import tariff. The Impulse Response Model has shown that over ten periods, the adjustments in the Ad Valorem tariff initially produce desirable results showing that a one standard deviation shock to the Ad Valorem tariff culminates in a sharp decline in import volume and a sharp increase in domestic volume produced. However, this response cannot be maintained over the long term, thus signaling the need for a more effective and viable solution other than an increase in the Ad Valorem import tariff to alleviate the stiff competition between domestic production and an increased supply of broiler imports. The study findings have policy implications for resolving internal issues in the South African poultry industry, such as improving production capacity and sector competitiveness at the same time maintaining the gains from trade especially for consumers.

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Section: The Literature Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Do Import Tariff Adjustments Bolster Domestic Production? Analysis of the South African-Brazilian Poultry Market Case

Nkgadima

Muchopa

2022

Economies

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“…Suid-Afrika is die slagoffer van hoenderstorting van nóg 'n BRICS-land, naamlik Brasilië (Hobbs et al, 2018). Meer as 'n dekade lank reeds stort Brasilië hoender in Suid-Afrika, met ander woorde Brasilië verkoop hoender in Suid-Afrika vir minder as wat dit in Brasilië kos om te produseer.…”

Section: Inleidingunclassified

“…Hierdie predatoriese handelspraktyk is geweldig skadelik vir die plaaslike mark. Dit bedreig die voortbestaan van die ondernemings van plaaslike hoenderboere, graanprodusente en maatskappye wat afhanklik is van die pluimveewaardeketting, en vernietig plaaslike werksgeleenthede (Hobbs et al, 2018). Storting van voedselprodukte dra op die lange duur by tot die verlies van voedselsekerheid en werksverliese in die ontvangerland.…”

Section: Inleidingunclassified

Insekte en voedselsekerheid in Suid-Afrika in die lig van klimaatsverandering

Durand

2022

Tydskr. geesteswet.

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Insects and food security in South Africa in the light of climate changeThe Covid-19 pandemic has had a devastating socio-economic effect on the country, including the death of more than 102 000 people, many of whom were the breadwinners of their families. This could not have happened at a worse time, since the economy of the country was in a recession even before the pandemic. The situation is exacerbated by the highest level of unemployment in the world, widespread nepotism and corruption, the plundering of state coffers and the favouring of the business interests of BRICS partners by government officials over those of South Africans.The government's commitment to prioritising their BRICS partners' business interests over those of the South African people contributes to food insecurity in South Africa. This includes the export of coal from mines in Mpumalanga to China and India, while nothing is done to rehabilitate the region, which was once known for its agriculture. The government handed over to the Chinese company SAEMB the Musina-Makhado Special Economic Zone, where four opencast mines, a 3 300 MW power station and an iron smelting plant will be developed. This development, however, requires the government to build a dam that will harvest 60% of the annual runoff of the Limpopo River, which in turn will have a devastating effect on farmers and communities downriver in South Africa, Zimbabwe and Mozambique who irrigate their crops with water from the Limpopo River.The same kowtowing of the South African government to its BRICS partners can be seen in the reluctance with which the government responds to the plundering of our marine resources by Chinese fishing boats and abalone smugglers. The unfair competition imposed on local chicken farmers by distributers of dumped chicken, mainly from Brazil, with the approval of government, caused the closure of several South African chicken farms and the resulting loss of tens of thousands of jobs along the supply chain. The reluctance of the government to take sides in the Russia-Ukraine war is partly linked to the fact that South Africa imports fertilizer and wheat from Russia.South Africa, a water-scarce country, is more vulnerable than many other countries to the effects of global climate change. The abnormal rain pattern, that is characterised by severe droughts in certain regions and heavy rainstorms and floods in others, has a devastating impact on the already economically struggling South African community. Abroad, attempts are made to ensure that mean temperatures do not exceed the pre-industrial level mark by more than 1,5 °C. South Africa, however, heats up twice as fast as many other countries, and has already exceeded the pre-industrial era level by more than 2 °C; it will continue to get warmer and drier, causing most of the country to become desertified by 2050.A third of South African rivers do not reach the sea anymore because of over abstraction of water from rivers; similarly, there is extensive abstraction of groundwater. Together farming and fores...

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Repositioning Cooperative Poultry Farming as a Vocation for the Unemployed Youths

Thulisile Ndashe,

Lavendal,

Olumuyiwa Omotosho

2024

RLDC

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The widespread impact of the Coronavirus pandemic has led to substantial job losses, prompting increased pressure on policymakers, scholars, and non-governmental organizations to generate sustainable employment opportunities for young individuals, particularly within economically disadvantaged communities. This investigation focuses on the feasibility of integrating unemployed youth into established commercial broiler value chains as a means to address the employment gap resulting from the pandemic. Its objective is to raise awareness among governments, institutions, and stakeholders regarding the hurdles faced by young people aspiring to engage in chicken production. To assess the current status of small-scale poultry farming in the studied region, interviews were conducted with small-scale poultry producers in Umhlathuze Municipality, KwaZulu-Natal, South Africa, along with experts from Owen Sithole College of Agriculture. Insights gathered from participants indicate various obstacles to poultry production in the area, such as insufficient digital, limited space, skill-shortage, restricted market access, low profitability, and instances of theft. Consequently, a proposed solution, the 'Collective Farming Model,' is advocated. Moreover, the authors contend that the efficacy of this model hinges significantly on its apprenticeship-based learning system, validated through successful implementation in a prototype initiative.

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Poultry Tariffs in South Africa: Levelling the Playing Field or Rewarding Inefficiency?

Cited by 3 publications

References 1 publication

Do Import Tariff Adjustments Bolster Domestic Production? Analysis of the South African-Brazilian Poultry Market Case

Do Import Tariff Adjustments Bolster Domestic Production? Analysis of the South African-Brazilian Poultry Market Case

Insekte en voedselsekerheid in Suid-Afrika in die lig van klimaatsverandering

Repositioning Cooperative Poultry Farming as a Vocation for the Unemployed Youths

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