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Our website login to all members will include access to the archived Stats and Newsletters for the year, as well as access to important news and progress.

Brief History Facts

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AMIE was founded in 1996. The Association was founded due to a need by Meat and Poultry Importers and Exporters to have a mouthpiece to talk on behalf of the industry and to look after the interests of the members, as contained in the constitution.

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Our AMIE Application form is available on our website. Please note that our current Entrance fee is R5000 plus vat Once-Off and annual Subscription Renewal is R10000 plus vat.

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P.O. Box 1809
Rivonia
2128
South Africa
Tel: +27 11- 8032058 Fax: +27 11 -8075691 ceo@amiesa.co.za

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News

FEEDINFO INTERVIEW

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Feedinfo News Service - 30/07/2014 INTERVIEW: Are Anti-Dumping Duties Protecting South Africa's Poultry Industry? Source: Feedinfo News Service (dated 30/07/2014) 30 July 2014 – South Africa recently announced anti-dumping duties against imports of frozen bone-in chicken from Germany, the Netherlands, and the U.K. The preliminary tariffs, which range from 22% for the U.K., and 73.3% for Germany came into effect on July 4th and will expire at the beginning of January next year. The move follows a complaint brought last year by the South Africa Poultry Association (SAPA) to the International Trade Administration Commission (ITAC), which found that there was prima facie proof of material injury to the local industry. This allowed the industry to circumvent a 2001 free trade and co-operation agreement, which prevented South Africa from imposing normal MFN (most favoured nation) tariffs against E.U. countries. According to SAPA’s CEO, Kevin Lovell, ITAC’s decision “confirms that the three European countries are dumping bone-in portions into South Africa,” and contributes to the industry’s future development. Association of Meat Importers and Exporters of South Africa (AMIE) CEO David Wolpert, on the other hand, argues that the implementation of preliminary dumping duties is a breach of international regulations, and will do nothing to solve the problems of South African poultry producers. Feedinfo News Service spoke to Lovell and Wolpert to get a better understanding of the South African poultry industry’s performance in a highly competitive global environment. The S.A. Poultry Industry, a USD 3 Billion Giant With a gross value of more than USD 3 billion, and producing more than 1 billion birds slaughtered, and 1.4 million tons of meat every year, South Africa’s poultry meat industry is the country’s largest individual agricultural sector, and contributes almost 17% to the total gross value of agricultural products, according to industry figures. Rainbow Chicken Limited (a division of RCL Foods) and Astral Foods are the industry’s main players, making up about half of the domestic sector (Rainbow produces approximately 235 million broilers per year, and Astral Foods about 220 million broilers per year). The country’s third largest producer, Country Bird, produces 68 million broilers per year, or 7% of total broiler production. The U.S. government estimates that South Africa’s top seven companies provide about 75% of total broiler meat in South Africa, while hundreds of smaller producers supply the balance. The country’s biggest chicken producers have all adopted the integrated production model, which allows them to manage the entire supply chain, including the production of day-old chicks, broiler farms, feed milling, meat processing, and distribution. As the biggest supplier of meat to local consumers, the poultry industry is an important part of the South African economy, says Kevin Lovell. However, he argues that cheaper imports from countries such as Germany and the U.K. have negatively impacted local producers over the past five years and has resulted in the industry stagnating. “Imports have lately been on an upward trajectory,” he explains. “Our previous peak was in 2006, followed by a fall in volumes and then a sustained period of increases. Last year, imports of all poultry products were close to 400,000 tons.” In applying for a tariff increase against cheap imports, the SAPA aims to offer local producers a level playing field. “These various trade measures tend to lead to displacement of the source of cheap and dumped product more than to a reduction in volumes,” says Lovell. “We do not seek to stop imports, only to make it harder for importers to use cheapness as their primary marketing tool.” Kevin Lovell South African Poultry Association CEO Brazil is currently South Africa’s most important trading partner in terms of imported poultry meat, with a market share of more than 50%. However, Brazil’s dominance has declined over the past few years, partly as a result of an increase in the general (MFN) tariff on most products which came into effect in September 2013. According to recent U.S. government figures, E.U. poultry producers took advantage of that decline, and steadily gained a greater share of South Africa’s import market. “The SAPA applied for a range of Most Favored Nation (MFN) tariffs. These excluded all of the EU countries, nine of which currently enjoy the right to export to South Africa (i.e. we did not apply for tariffs against the UK, the Netherlands and Germany). The trade agreement between the E.U. and South Africa led to a winding down of MFN tariffs on EU poultry which have been at zero since the beginning of 2012,” notes Lovell. “To put that into perspective, imports of frozen bone-in portions from the EU made up about 0,5% of imports in 2009. They now make up more than 85% of all frozen bone-in portion imports.” David Wolpert Association of Meat Importers and Exporters of South Africa Did you say ‘fair’? However, not everybody is happy with the new tariffs introduced against European poultry producers. The South African Association of Meat Importers and Exporters (AMIE) has been especially vocal against the adoption of such tariffs, arguing that ITAC’s investigation, as well as the SAPA application on which the investigation was based, were both flawed. “The provisions of the Anti-Dumping Act were continuously flouted, breached and ignored. Much of the information used was inaccurate and faulty,” says AMIE CEO David Wolpert. “Product comparisons were hopelessly incorrect, while there were numerous patently incorrect calculations upon which conclusions were based. A very large amount of relevant and important information, statistics, and calculations as supplied by AMIE, South African importers, the European Union Commission, and E.U. exporters were totally and inexplicably ignored, as were a number of direct communications and enquiries with ITAC.” Wolpert also claims that imports should not be used as a scapegoat for a local industry plagued by high poultry feed and fuel costs, as well as large labour cost increases and strike actions. “Imports played an insignificant role in the problems of local producers,” says Wolpert. “Proof of this is the current recovery being achieved by local poultry players despite the so called ‘import problem’. In fact, local industries market share increased during the period reviewed by ITAC.” According to Wolpert, imports of comparable poultry products represent a marginal amount of South Africa’s poultry market (or about 10% of total consumption), while South Africa's chicken imports from the U.K., the Netherlands and Germany represent less than 7% market share. “We do not see this as a threat to local industry, who should rather focus on their self-created problems as well as opportunities,” he says. Even if uncertainties remain as to the effect of the recent duty increases, Wolpert hints that the measure is likely to push prices up in the following months. “At the moment there is a surfeit of chicken products in the market. Demand has slackened off mainly due to the current economic climate and the recent strike activity which caused much domestic hardship,” he explains. “In addition, importers, pre-empting dumping duties, brought in a lot of product over the last few months. For this reason there is unlikely to be a sudden price increase. However, as stocks reduce, prices will be affected.” Wolpert also argues that the high provisional dumping duty imposed on German products will have a “huge effect” on the country’s exports to South Africa. As a result, he expects to see increased imports coming in from other E.U. countries like Spain, France and Belgium. “European exporters as well as the E.U. Commission are understandably enraged by the above breaches of WTO regulations as well as South Africa's own anti-dumping regulations,” says Wolpert. “We should not be surprised if ITAC's decision is challenged in court or if the EU approaches the WTO for assistance in this matter. In addition there is presumably a risk of EU trade reprisals against South Africa.” Lovell retorts that higher duties will not shut off importers from the South African market, but create a fairer trading environment. “These anti-dumping duties may not be punitive and are designed to correct unfairness, meaning that imports should be able to continue although the importers would now have to compete with local producers on equal terms rather than unequal terms,” he claims. While he concedes that the share prices of South African poultry companies have generally increased in recent times, Lovell stresses that the operational performance is not near a sustainable level. “To see imports as an ‘insignificant’ part of the problem misses the point,” he notes. “You cannot expect to compete properly if the trading rules are not the same for all. Dumping is an unfair practice: stop doing it and normal market competition will resolve the rest of the issues at hand.” Moreover, Lovell hopes that the measures will allow South Africa’s broiler industry to grow, and better cater to local demand. South Africa’s poultry consumption, which is expected to reach 1,750,000 metric tons this year (compared to 1,524,000 metric tons in 2010) could grow by 50% in volume terms if disposable incomes allow for the purchase of the extra meat, he predicts. “We have limited pork consumption for cultural and religious reasons and lamb/mutton is very expensive, so the meat ‘share of stomach’ is largely a beef vs. chicken debate. Chicken consumption is about double that of beef, mostly for reasons of cost. South Africans like to eat meat- they simply cannot afford to eat as much as they would like.” Lovell argues that South Africa’s broiler production (which amounted last year to almost 1,400,000 metric tons) will soon be able to meet domestic demand, provided that imbalances in the global trading environment are corrected. “We tend to import the surpluses and waste products of the rest of the world. South Africans eat all parts of the chicken except for the blood and feathers so our market is well balanced. If prices reflect true cost we could easily ramp up production and there is some breeder capacity not being fully utilized at present. This means the ramp up of production could be quite quick if the market would allow it,” he says. Waiting for Take-Off Alltech Vice-President Aidan Connolly recently told Feedinfo News Service that South African poultry producers can compete with the best, and that the country could be described as a ‘knowledge leader’ in the field of agricultural development. Lovell agrees with this analysis, stressing the enormous progress that has been made in terms of quality control and production efficiency. “The technology used locally is in line with global practices and the cold chain is well developed with the variance to developed world markets being that the great bulk of the market (around 90%) is for frozen product,” he says. “Feed safety is being improved all the time though an industry Code of Practice which is independently audited. We seem to have avoided some of the feed-related problems found elsewhere in the world although that is no reason to be complacent. Food safety is controlled by the State but the private standards of the large food retail chains add an additional layer of control. Consumers rely mostly on these private standards for assurance.” Looking forward, Lovell predicts that the South African industry will grow in scale more than style. Other African countries will follow suit, reflecting the gradual shift from the subsistence farming model to larger commercial operations. “To create an industrialized poultry sector in these countries, urbanization needs to increase and disposable incomes grow. This will happen; the question is when? In my view I see a period of strong volume growth in various Asian countries as the main global driver over the next five to ten years and then I see that Africa will be the main driver of growth. The developed world will have a smaller percentage of the global population by 2050 and we in Africa will be around 2 billion people. We will be a bigger market in time than the developed world is now.” Feedinfo News Service +33 5 61 00 13 41 This e-mail address is being protected from spambots. You need JavaScript enabled to view it © Global Data Systems 2014

Brazil poultry exports increase

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São Paulo – Brazilian poultry exports increased in volume, but revenue was down in quarter one this year from the same period in 2013. According to figures released this Monday (14th) by the Brazilian Animal Protein Association (ABPA, in the Portuguese acronym), exports amounted to 950,200 tonnes from January to March this year, up 0.4% from January to March 2013. Revenues were down 11.5% to US$ 1.832 billion. According to the ABPA vice president for poultry, Ricardo Santin, the revenue dropped due to the appreciation of Brazil’s real and to a hike in the price of maize, the industry’s main input. Still, the executive said, the performance was good for the period. “The result is good because we have managed to export a higher volume than in early 2013. Revenues were lower, partly due to the exchange rate, but we have broken even. We want to see revenues go back up, but overall, our assessment is a positive one, we are within the target range,” said Santin. He noted there was an oversupply of product in the Middle East last year. In March, the industry exported 332,300 tonnes, up 0.2% from March last year. Revenues stood at US$ 640.9 million, down 14.3%. Out of all poultry products, which include chicken, eggs, ducks, turkeys, mallards, genetic material and fertile eggs, chicken meat accounted for 95.5%. Chicken meat exports fetched US$ 1.705 billion in Q1, down 11.5% from Q1 2013. The volume shipped was 907,300 tonnes, up 0.7%. The Middle East remains the leading Brazilian poultry export target area. From January to March, 332,000 tonnes were shipped to the region, down 4.6% from the same period last year. Exports to Asia, the second leading target, were up 7.5% to 270,500 tonnes. Sales to Africa increased by 1.7% to 125,300 tonnes. Sales to the European Union were down 0.8% to 101,000 tonnes. Exports of Brazilian chicken meat to the Americas amounted to 58,800 tonnes (up 6.1%), exports to non-European Union countries in Europe amounted to 18,900 tonnes (down 7.4%) and 536 tonnes were shipped to Oceania (up 18.6%) in Q1 this year. Egg exports saw a decline in revenues and volume. According to the ABPA, in Q1 this year 3,700 tonnes of eggs were exported, down 26.8% from Q1 2013. Revenues stood at US$ 5.2 million, down 41.5%. According to Santin, egg sales dropped because of higher domestic sales. “Eggs account for 1% of industry output, therefore minute changes in demand and sales have an impact on exports,” he said. The ABPA was founded in March this year to replace the Brazilian Poultry Union (Ubabef) through the merging of the Brazilian Association of Pork Manufacturing and Exporting Industries (Abipecs), which have since become extinct. *Translated by Gabriel Pomerancblum

media release

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Media Release The article below refers: It confirms once again,AMIE’s oft repeated contention that South Africa’s protectionist policies have the potential to harm us in the form of retaliatory trade practices. The renewal of the special duty preferences applicable to many of our exports under the African Growth and Opportunity Act of 2000 (AGOA) is of huge value and importance to us,especially in times of poor economic growth and precarious negative trade account balances. Anti- dumping duties on USA poultry were enforced on poultry products when SA used the weighted average cost of production in determining import values,a method that has recently been discredited by the WTO. As we have said many times before,such restrictive trade practices are of great concern,are highly inflationary,and therefor negatively affect pricing to an entire population especially the hard pressed poorer segment of our people,and invite retaliatory measures,which themselves harm our fragile economy. Over the last few months,South Africa has unilaterally terminated bilateral trade agreements with a number of European Union countries. We have imposed large duty increases on European potato chips and initiated very onerous and unnecessary trade complications on imported pork meat-a clear and distinct barrier to trade.This list is by no means complete,as many other products have also been acted against,with further actions still pending. South Africa is currently investigating the possibility of imposing very high anti -dumping duties on bone in chicken cuts from a number of EU countries. If we continue to anger our reliable and traditional trading partners,we must expect repercussions that South Africans will eventually pay for. David Wolpert CEO, Association of Meat Importers and Exporters of SA Chicken council wants barriers lifted in Africa deal, TPP Published: January 21. 2014 3:36PM The National Chicken Council is asking the federal government to insist on easing restrictions on poultry products as conditions for renewing a South Africa trade pact and entering the Trans-Pacific Partnership. U.S. Trade Representative Michael Froman's office says it will try. The National Chicken Council is asking the federal government to insist on easing restrictions on poultry products as conditions for renewing a South Africa trade pact and entering the Trans-Pacific Partnership. The organization asserts that “dumping duties” — tariffs placed on American chicken the South African government believes was being sold below market price — have cost the U.S. industry as much as $100 million in lost revenues since 2000, spokesman Tom Super said. The group notes that dumping duties were recently found by the World Trade Organization to be unfair, as a dispute panel ruled against China and for the U.S. poultry industry in a virtually identical case. “Our industry believes that the United States should … aid the less developed countries of the world in improving their economies and the standard of living for their citizens,” NCC senior vice president and chief economist Bill Roenigk told the U.S. International Trade Commission earlier this month. “However, we believe that developing countries receiving aid or special preferences also have their responsibilities,” he said. “Chief among those are the obligations to treat all their citizens fairly and see that trade preferences benefit the greater good, not just the advantaged few, and to become good world citizens and to conduct themselves in accordance with the rule of law.” U.S. trade negotiators have discussed the antidumping duties with South African representatives and are working with them to “enhance two-way trade,” said Carol Guthrie, spokeswoman for U.S. Trade Representative Michael Froman. South Africa has been using the weighted average cost of production to determine the value of chicken rather than a market-determined cost methodology accepted in international trade, Super explained. As with beef, all parts of a chicken don’t bring back the same value, he said. The duties have been in place since the U.S. extended special duty preferences to many of South Africa’s exports under the African Growth and Opportunity Act in 2000, the NCC explained in a news release. The U.S. industry was sending about 55,000 metric tons annually to South Africa before then but has been shut out of the market since the deal was finalized, the organization stated. “I hope if they do renew it that U.S. poultry’s concerns are strongly considered and taken into account,” Super said. “If they are not, we will urge our members of Congress to vote ‘no’ because we’ve been unfairly shut out of this market for some time now.” The NCC’s plea comes as 11 U.S. senators led by Delaware Democrat Chris Coons and Georgia Republican Johnny Isakson sent a letter urging Froman to open markets to chicken as part of Trans-Pacific Partnership negotiations. American poultry products face restrictions and barriers in Canada, Australia, New Zealand and Japan, the chicken council noted. “The TPP represents a significant opportunity to expand U.S. chicken exports and bring increased economic benefits to chicken growers and companies across the country,” the senators wrote. “Your ongoing commitment to seek the highest possible standard agreement is appreciated.” Guthrie said the U.S. is “committed to achieving a comprehensive and ambitious outcome” for the TPP, including on poultry products. “We are actively engaging our TPP partners to reach satisfactory outcomes” on a range of tariffs and other barriers, she said in an email. - See more at: http://www.capitalpress.com/article/20140121/ARTICLE/140129975#sthash.83Sal27m.dpuf

MEDIA RELEASE 10 JANUARY 2014

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AMIE Media Release In the light of the recent decision by the Department of Agriculture,Forestry and Fisheries (DAFF) to set limits to the amount of injected brine into chicken meat,and the resultant media reports,AMIE would like to make its views clearly known. AMIE is,and always has been,totally opposed to the blatant abuse of consumers by excessive brining and welcomes the new limits as set by DAFF.While we would have preferred even lower limits,which clearly would be in the interest of consumers,we believe that the recent decision by DAFF is very encouraging and will certainly reduce consumer abuse for commercial gain. We would like to point out that DAFF itself,in a media release dated 9 February 2011 (attached) described the practice as “abuse which is a threat to consumer safety and value for money”. It goes on to explain the “nutrient dilution caused by brining”,as well as stating that the practice results in“elevated salt levels which result in very high sodium levels that may pose a health risk for consumers.” It is clear that current levels of brining in South Africa are extremely harmful to consumers while at the same time represent commercial abuse of these same consumers. AMIE would like to again express its total support for any new measures that limit commercial greed in the interests of the health and welfare of SA consumers. We should point out that total brining volumes exceed 500 million litres per annum which is more than double the total annual chicken imports into South Africa. We applaud DAFF for standing firm and for having submitted notice of the new brining levels to our international trading partners via an official notice to the WTO. We urge DAFF not to bow to the pressure being exerted by certain local poultry producers whose aim is to have the new limits raised. The local chicken fraternity seems to be divided on this issue and AMIE supports the view of those local producers in favour of the new levels or even zero brining. We urge the department to implement its ruling as soon as possible in order to restore some moral,ethical and safety values in the market place,values that have been missing for a number of years while such abusive practices have been in existence. David Wolpert CEO, Association of Meat Importers and Exporters of SA
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