On November 9, 2022, The International Trade Administration Commission of South Africa (ITAC) announced the initiation of the sunset review of anti-dumping duties (ADDs) of frozen bone-in portions of poultry from the United States.
The current labor disputes at Transnet, South Africa’s state-owed port, rail and pipeline authority, have caused severe staff shortages at ports resulting in a significant slowdown of port operations and caused the company to declare fore majeure.
South Africa’s food service sector generated revenues valued at US$3.5 billion in 2021, an upsurge of almost 30 percent from 2020. The South Africa hotel, restaurant, and institutional industry was severely affected by the strict restrictions imposed by the South African government to control the COVID-19 pandemic from March 2020.
The United States exports bone-in chicken meat to South Africa under a Tariff Rate Quota (TRQ) arrangement, which was set at 71,290 tons to be imported quarterly for the April 2021 - March 2022 quota year. The US bone-in chicken quota for the year 2021/2022 was filled at 84 percent, a 10 percent drop from the previous quota year.
South Africa has imposed provisional anti-dumping duties against bone-in chicken meat imports from Brazil and four European Union countries. With this announcement, South Africa is now imposing anti-dumping duties against all nine countries that have regularly exported bone-in chicken portions to this market.
South Africa continues to be an important market for U.S. agricultural products. The country is an attractive business destination due to its growing market and a well-developed infrastructure, catering to efficient distribution of both imported and locally produced agricultural products to major urban centers and the entire Southern Africa region.
Worldwide agricultural inputs prices have risen steeply the past year. South Africa is at the start of the 2021/22 summer production season and farmers are confronting these increased inputs prices that will squeeze profit margins.