The Animal Feed Manufacturers Association (AFMA), as supporting industry to the South African poultry industry, presented its case of the impact which the influx of dumped poultry meat has on the local feed industry, to the Parliamentary Portfolio Committee of the Department of Trade and Industry (PPC of dti) on 2 May 2017.
Represented by executive director and its chairman, De Wet Boshoff and Loutjie Dunn respectively, the AFMA presentation primarily focused on the damage caused by dumped poultry meat as well as the potential opportunities lost since the imported product not only affecting the local poultry industry, but also the entire grains value chain.
The major problem highlighted by Boshoff is the fact that the real damage to the local feed industry comes to light when the poultry meat volumes are converted to feed equivalent.
The total volume of dumped imported poultry amounts to more than 2.1 million tons of broiler feed, which equals the annual production of 22 average sized feed mills with an annual production of ± 100 000 tons.
This possible additional feed production has the potential of increasing the current production utilisations to 91%, from its current 70%. These feed mills would also have had the opportunity to create an additional 3 330 jobs within the feed industry, which is much needed, as stated by the National Development Plan.
Furthermore, this could have increased national feed sales by an additional 17.6%, with total growth amounting to 18.3% in 2016.
The AFMA presentation was received positively by the PPC of dti, illustrated by the number of questions and enquiries received from the Committee as well as the Chairperson’s invitation to AFMA to attend future meetings due to the positive contributions AFMA has to offer to this process. – De Wet Boshoff, Executive Director, AFMA