THE NUMBER of job losses in the poultry industry – fed to the media by South African Poultry Association (Sapa) chief executive Kevin Lovell because of the African Growth and Opportunity Act (Agoa) agreement – are pure myth.
Either he is making the figures up – and has misled Parliament – or he has a deep misunderstanding of the industry and the effects imports will have on it. Speaking at a Department of Trade and Industry presentation on May 20, Lovell claimed local poultry was responsible for 48 084 direct jobs and 59 696 indirect jobs. This is a total of 107 780 jobs.
Earlier this year in March, Lovell told the portfolio committee for agriculture, forestry and fisheries in Parliament that for every 10 000 tons of chicken imported, there would be a loss of 1 000 direct and indirect jobs to local industry.
Based on current import volumes, that would mean that in just over four years, all the direct and indirect jobs he claims local poultry generates would be eliminated.
South Africa has been importing an average of 100 000 tons a year of bone-in chicken cuts over at least 20 years. During this same period the local industry has grown from producing around 5 million birds a week to current production figures of approximately 20 million.
There is a huge contradiction here.
Either Kevin Lovell has lied to Parliament by wildly over-exaggerating the impact imported chicken has on local jobs, or his calculations are out.
In the wake of the partially resolved Agoa chicken negotiations, Lovell has again made a noise about the supposed negative impact US imports will have on the South African industry. His latest claim is that local poultry stands to lose about 6 500 jobs because of the Paris deal last week. Based on his previous predictions, one can only assume he is again fabricating figures or is out of touch.
The serious question is why the local poultry industry feels the need to adjust the facts as it goes along. Are they actually hiding something – or do they merely have a paltry regard for the truth and the public of this country?
DAVID WOLPERT
CEO ASSOCIATION OF MEAT IMPORTERS AND EXPORTERS OF SA
US deal must hinge on Agoa renewal
It is good to see that the Sapa has agreed to a settlement with its American counterparts. I believe they have done this in good faith for the benefit of South Africa’s economy. I hope they have made this agreement contingent on Agoa’s renewal.
John Drake
Winklespruit