CHICKENFACTS: AUGUST-SEPTEMBER 2021 FACT SHEET

The Department of Trade and Industry in May 2021 announced a policy to compel all South African businesses to replace 20% of their imports with locallyproduced goods over five years. The Department believes that this will add R200 billion to our economy. In our Fact Sheet this month, we unpack the aspects of trade, the policy, and analyse what the policy will mean for the poultry industry

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CHICKENFACTS: AUGUST-SEPTEMBER 2021 FACT SHEET

The Department of Trade and Industry had announced the formation of the localisation policy which pledges to have selected industries reduce the amount of imports they receive by 20% to cater to the increase of local products produced by South Africa. This includes the poultry industry.

This month ChickenFacts has investigated what the impact of the localisation policy has on the poultry industry.

The Department believes that this will add R200 billion to our economy. In our Fact Sheet this month, we unpack the aspects of trade, the policy, and analyse what the policy will mean for the poultry industry.

In the face of a food security crisis and disease outbreaks, imports play an imperative role in maintaining food security and keeping prices in check. Imports ensure a consistent supply of product in South Africa’s food security and ensures prices remain in check.

Driving localisation has the potential to cut South Africa off from trade opportunities

Importing goods brings new and varied products to the local economy. Exporting products boosts the local economy and helps local businesses increase their revenue. Both imports and exports creates jobs to the local economy.

RECENT OBSERVATION

Mid-April to June 2021, South Africa experienced an HPAI (highly pathogenic avian influenza) outbreak More than 2,7 million chickens have been culled Companies imported fertilised hatching eggs to increase chick supplies.