Rainbow Chicken on a knife edge

schumi

schumi

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Durban - One of South Africa’s biggest chicken producers is selling 15 of its 25 farms in Hammarsdale to stay afloat after fighting years of dumping by importers.

Because of the cutbacks Rainbow Chicken, renamed RCL Foods, is retrenching 1350 workers from the end of the month.

Mike’s Chickens (Limpopo), a family-run business in Polokwane for 38 years, has already closed, putting more than 1000 people out of work.

Country Bird (Free State and North West), the country’s third biggest chicken producer behind Astral Foods (Mpumlanga, Gauteng, Western Cape and KZN) and RCL, is retrenching 1 500 workers.

Kevin Lovell, chief executive of the SA Poultry Association, said about 53 0000 tons of chicken were imported last year - one and a third of what was produced annually by Astral Foods.

This week, Scott Pitman, managing director of RCL Foods, said he no longer knew what to do to save jobs.

“Letting 1 350 people go at the end of the month will be the saddest day in my career. How do you get rid of people who have given you loyal service, some as long as 40 years?” he asked

A bitter Pitman said the government was doing nothing to tighten import controls on frozen chicken, and the EU and Brazil, especially, were capitalising on this with large-scale dumping.

Pitman said European countries consumed mainly “white portions” (the breast), which they deemed to be the best cut.

The “brown portions” (the thighs and drumsticks) were then sold off at cut price - finding their way to developing world markets such as South Africa, where they were sold cheaper than what was locally produced.

“Our company’s troubles could end and jobs saved overnight if the government placed tighter regulations on imports,” said Pitman.
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More at: http://www.iol.co.za/news/south-africa/kwazulu-natal/rainbow-chicken-on-a-knife-edge-7354387
 
Who is retailing these imports? We should be aware of that.
 
The saddest part is that we're paying full price for this dumped chicken.:mad:
 
NiTeD said:
The saddest part is that we're paying full price for this dumped chicken.:mad:
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And just making international companies rich.... So sad actually. Making international companies rich, creating jobs in other countries and all at full price.... sad
 
That is what the world wanted. When SA was mostly self sufficient, exporting surplus it wasn't good enough. Now more are being put out of work. Nice move world, US, UK, AUs, SWEDEN ETC.
 
saturnz said:
many on this forum support dumping and imports because they feel our local producers are inefficient and ripping us off
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Unfortunatly price is king especially for people in the low income bracket and chicken is the cheapest available protein.

The local chicken industry cannot compete when it comes to price, this is mainly due to the high imput costs.
 
R/SGT said:
Unfortunatly price is king especially for people in the low income bracket and chicken is the cheapest available protein.

The local chicken industry cannot compete when it comes to price, this is mainly due to the high imput costs.
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foreign industries won't be able to compete too, if they didn't receive subsidies

I've said it many times before, our farmers receive little to no support or protection from the government, it is a major failing especially when you consider the support and protection these foreign dumpers receive
 
Saturnz farmers in SA get tax breaks & vat exemptions. I don't know how it competes with international subsidies but it's not nothing as you imply.
 
We're starting to see the wider effects of the BRICS agreement and our economy sellout.
 
Vegeta said:
Saturnz farmers in SA get tax breaks & vat exemptions. I don't know how it competes with international subsidies but it's not nothing as you imply.
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perhaps do a google, I don't think you want me to start posting numbers, foreign farmers receive similiar tax breaks in addition to the subsidies and protection
 
Heavyonthemagick said:
Who is retailing these imports? We should be aware of that.
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I too would like to know who retails these foul birds. What label should I be looking for? The cost of lost jobs in the economy isn't something that can be quantified. It's impact ripples far wider than our clown-led government will acknowledge. Why else would other world leaders be so vociferous about protecting jobs in their economies.

What a wretched bunch of swine they are :mad:

NiTeD said:
The saddest part is that we're paying full price for this dumped chicken.:mad:
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+1
 
R/SGT said:
The local chicken industry cannot compete when it comes to price, this is mainly due to the high imput costs.
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Is the input cost in sa higher than europe or is the pricing skewed due to eu farming subsidies?
 
Gotta ask...how much of this is an attempt to pressure gov into protection?

ponder said:
Is the input cost in sa higher than europe or is the pricing skewed due to eu farming subsidies?
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Its not EU...think it was US or someone last time there was chat about dumping chickens.
 
HavocXphere said:
Gotta ask...how much of this is an attempt to pressure gov into protection?


Its not EU...think it was US or someone last time there was chat about dumping chickens.
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Although the EU does subsidise and protect its farmers on a similar scale to that of the US
 
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