Chicken prices balloon up to 8.75 percent


PRETORIA: (By Faisal Muhammad)– Chicken prices have gone through the roof in a bid to cushion South Africa’s troubled poultry industry. The overall tariff increase is 8.75 percentage points.

South African government increased the tariff in five categories of imported poultry products. Trade and Industry Minister Dr Rob Davies made the official announcement and said that hike in the tariffs of imported chickens has rolled out and it aimed to help poultry industry survive, which employed about 100 000 people.

The increase is applicable to all imports from the Southern African Customs Union (SACU). The tariff surge, Davies said, was due to the recommendations of the International Tariff Administration Commission (ITAC).

“It is like a bailout package to give a new lease of life to poultry industry struggling for smooth-sailing over the last many years,” Davies said. He, however, said that government would do early review to ascertain impact of the new tariffs.

Explaining the new tariff structure, he said that under the new structure, the import tariff for “whole bird” – which makes up a little percentage of the entire SACU market for poultry – will surge up from 27% to 82%.

Tariffs for “carcasses” which share 2% of poultry imports will be increased from 27% to 31%.  Tariffs for “boneless cuts – which constitute 11% of poultry imports will go up from 5% to 12%. Tariffs for “offal” will jump from 27% to 30%.

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