While neglecting to mention her clear interest or organisational bias in her letter “Chicken dumping probe a farce” (The Star, February 20), Jean Schwarz uses several “examples” relating to the International Trade Administration Commission (Itac) processes and accuracy of information used for the investigation that are so factually incorrect they cannot go unchallenged.

The Itac investigations were initiated based on information obtained by comparing the normal value of retail prices of whole chickens and chicken pieces with the export prices of the same products from Brazil as determined by import statistics obtained from Sars during 2010.

Several of the so-called “poultry giants” referred to by Schwarz are, in fact, listed companies, whose information and figures supplied are audited for accuracy.

These figures were able to clearly demonstrate not only a significant loss of market share, but also clear material harm to their businesses as a result of dumping.

Official figures show that poultry imports made up 16 percent of the total poultry consumption in SA in 2010.

The figures for last year, yet to be finalised, reveal that imports in all likelihood exceed 300 000 tons, representing about 19 percent of local consumption and the most since our markets were opened up to foreign imports in 1994.

This is certainly not the “negligible” figure Schwarz would have us believe.

In terms of the information supplied to Itac that enabled them to make a determination that dumping did indeed take place, the commission clearly sets out the manner, format and structure in which information should be presented.

That several submissions from Brazilian producers and local importers did not adhere to these rules while other accepted submissions did, speaks of the incompetence of these authors rather than the integrity of the Itac process.

Note that as the Itac ruling is a preliminary finding, the affected parties now have a further period in which to make representations and we hope that they will take the opportunity to do so – and do so correctly.

The negative effects of dumping are well documented in terms of damage to the local industry and a consequent loss of jobs, with clear proof of material injury and a causal link between dumping and the losses suffered by the local poultry industry.

As the poultry industry is the biggest single agricultural sector in SA in rand value and protein supply terms, thousands of jobs are at risk.

In approaching Itac, the Southern African Poultry Association did not seek protectionism; rather the intention is to create a level playing field where local producers – and the thousands of people who depend on this industry for their livelihoods – are able to compete fairly in the open market.

Marius Gericke

Chairman

The Southern African Poultry Association