COUNTRY REPORT ▶▶▶
RCL Foods is South Africa’s largest proces- sor and market- er of chicken. It is a fully inte- grated broiler producer that breeds and rears its own livestock which it feeds from its own feed mills. It processes, dis- tributes and markets fresh, frozen and val- ue-added chick- en.
12 million birds per cycle, have invested R35-40 million (US$ 2.4–2.7 million) in their farms. The masterplan aims to double this figure by 2022. This will create the capacity for 50 more such farmers. Steps will be taken to focus on ownership throughout the value chain, and not just on farming. Approxi- mately 25% of the biggest small-scale farmers will be identified and a business plan will be developed for each of them. Fund- ing and support will be geared towards developing and grow- ing them to become a bigger part of the value chain. “If we can grow our industry and make a significant impact on the whole value chain, from grain and poultry production to feed manu- facturing, logistics and retail, then as an industry we will be in a position to boost economic growth,” says Breitenbach.
Protection against unfair poultry trade Another very important element of the masterplan is to stim- ulate local demand to supplant unfair trade imports. “We need protection against unfair trade, such as under-declara- tion of product whereby, for example, a product is bought in a foreign country for R20 (US$ 1.37) per kg and declared at R10 (US$ 0.69) a kg when it enters South Africa and so tariffs are paid only on R10 and not R20,” Breitenbach notes, adding that the South African Minister of Economic Development, Ebrahim Patel, has announced that agreement has been reached with other BRIC countries to work together to weed
28 ▶ POULTRY WORLD | No. 1, 2020
out under-declaration and product declaration under the wrong tariff heading. South Africa will be applying for further anti-dumping duties in 2020, too. Dumping – which is selling a product in anoth- er country at a lower price than in your own country – must be curbed. South Africa imports 33% of the total demand which is excessive compared to the EU (7%), US (1%) and Brazil (0%). The US and Brazil export in the region of 40% of their production.
Chicken exports Exports is another area addressed in South Africa’s poultry masterplan. South Africa has tariff-free access to Europe but does not meet the sanitary and phyto-sanitary requirements of the European market, according to the South African Asso- ciation of Meat Importers & Exporters. Europe is, therefore, closed to South Africa’s chicken products. Exports to other countries are also small, accounting for only 2% of the total production. Closer to home, in Southern Africa, the current agreements are not to the benefit of the country. “We aim to increase the volume of exports to the Middle East, and cooked products to the EU. The EU imports about 900,000 tonnes of breast meat and processed products for EU consumers per annum, such as hamburger patties. We would like to contribute to this,” adds Breitenbach.
PHOTO: RCL FOODS
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