Are chicken importers already exploiting consumers by raising prices because of South Africa’s ban on the import of poultry from Brazil? It would seem so, because FairPlay has been told that chicken importers are suddenly charging local meat processors 30% more for imported mechanically deboned chicken meat (MDM). The price, we are informed, has gone up from around R20/kg to more than R30/kg.
If this is true, it would be a scandalous and totally unjustified exploitation of South Africa’s ban on the importation of poultry from Brazil because of a bird flu outbreak in that country.
FairPlay calls on the chicken importers and their representatives to deny this huge price increase in MDM, or to explain why it is happening. The Brazil ban was announced on 19 May. As poultry imports from Brazil can take up to six weeks to reach South Africa, Brazilian consignments reaching South Africa at the moment are not affected. So what is the justification for the price increase? Is this a case of make as much as you can while you can?
MDM is a paste used in the manufacture of processed meats such as polony, and South Africa imports most of its MDM from Brazil. The bird flu ban on Brazilian poultry will affect the supply of MDM in South Africa, and it will be up to meat importers to arrange alternative supplies.
Importers could also encourage Brazil to apply to South Africa for a compartmentalisation agreement, which would allow the import of MDM from parts of Brazil not affected by bird flu. The supply of MDM affects the lowest priced chicken products consumed by low-income households and will affect food affordability in the poorest households further exacerbating a desperate situation for poor households. More than a quarter of South Africa’s children are malnourished and suffer from stunting.
If the importers and their representatives are happy to hit consumers with higher prices, their attitude is in sharp contrast to that of local poultry producers. The SA Poultry Association (SAPA) has stated that its members will increase production to compensate for the loss of Brazilian imports, and as a result there should be no shortage of fresh or frozen chicken meat, and no price increases because of a shortage.
South African consumers deserve an explanation from chicken importers on their price increase.
Statement by Francois Baird, founder of the FairPlay movement
