Summary
Despite initial setbacks linked to Avian Influenza outbreaks and Covid-19 linked demand effects, EU poultry meat production is projected to increase in 2021, with this growth continuing through to 2031 (though be it at almost half the annual rate of the preceding decade). Despite average EU poultry meat prices being substantially above Brazilian prices, the EU continues to increase exports of frozen and fresh meat and offal from Gallus poultry to sub-Saharan Africa. This increase has continued despite a major slump in EU exports to other non-sub-Saharan African markets. While overall EU poultry meat exports are projected to stabilise up to 2031, the likely further collapse in exports to the UK will increase export pressures on sub-Saharan African markets. If African governments wish to boost local poultry production in response to growing consumer demand and Covid-19 supply chain disruptions, greater use will need to be made of non-tariff measures in regulating imports, including a more precautionary approach in response to AI outbreaks. This could then provide the market space for expanded local production if this forms part of comprehensive poultry sector development strategies. Read more “The Halting of the Decline in EU Poultry Production and Open Sub-Sharan African Markets, Fuels Continued Growth in EU Poultry Meat Exports to SSA”
Category: Poultry
Given rising food demand the poultry sector offers considerable cope for rural transformation. This arises primarily not through the formal wage employment generated on poultry farms and in poultry processing facilities but through the development of local poultry feed supply chains. However these opportunities for transformation are being undermined by growing exports of residual, low cut poultry parts to mainly African ACP markets. The EU plays a major and expanding role in this trade, with the preferential treatment negotiated for EU exporters under reciprocal trade agreements with African countries playing a major role in the expansion of EU poultry meat exports. The EU’s restrictive poultry import regime also plays a major role in promoting EU poultry meat exports. This raises important issues of policy coherence for the EU.
Consideration should be given to the promotion of the responsibly interpretation and application of the commitments entered into by ACP governments with regard to the use of non-tariff trade policy measures and the establishment of a ‘Code of Conduct for Responsible Trade in Poultry Parts’, aimed at addressing both the adverse developmental and health effects of the current EU trade in poultry parts.
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Decline in EU Poultry Meat Exports to South Africa Provides Space for Renewal of the Domestic Poultry Sector
Summary
EU poultry meat exports to South Africa continue to decline, but illegal and mis-reported imports from Brazil continue to put pressure on domestic producers. While progress is being made on the domestic dimension of the Poultry Sector Master Plan, serious challenges remain in curbing illegal import from Brazil. Given the curbing of imports from the EU is largely based on SPS measures taken in response to AI outbreaks in Europe, the South African poultry Association is urging the South African government not to lift AI based import restrictions until six months after the last reported AI outbreak in the EU. With EU governments declaring their countries free of AI, this could heighten EU-South Africa poultry sector trade tensions. The South Africa experience highlights: the importance of appropriate trade policy responses to AI outbreaks in major exporting countries; the need for joined-up action across all relevant government services; and the need for active stakeholder engagement in elaborating Poultry Sector Development Strategies. AI outbreaks and Covid-19 linked freight disruptions, could provide opportunities for the expansion of domestic poultry production across Africa, if appropriate comprehensive poultry sector development programme can be set in place Read more “Decline in EU Poultry Meat Exports to South Africa Provides Space for Renewal of the Domestic Poultry Sector”
EU Frozen Chicken Exports to Ghana and Wider West African Region Continue to Rise
Summary
In the face of AI related import restrictions for other major destinations for EU frozen chicken and general poultry meat exports, EU exports to Ghana and other major West African markets have grown strongly. West Africa has now become a key market for exports of frozen chicken meat, particularly when difficulties are faced on other markets. This raises critical issues over the role of poultry sector trade policy in West Africa in supporting efforts to expand domestic poultry production, as part of wider poultry sector development initiatives. Read more “EU Frozen Chicken Exports to Ghana and Wider West African Region Continue to Rise”
EU Poultry Meat Exports to Sub-Saharan African Markets Surge at Beginning of 2021 Suggesting Trade Diversion is Underway
Summary
Trade diversion to ACP poultry markets, as a result of Brexit related disruptions to the EU/UK poultry trade appears to be underway. This situation of trade diversion is likely to get worse before it gets better, given full UK border controls on imports from the EU are only scheduled to be introduced in 2022. For those ACP countries seeking to develop their domestic poultry production on national food security grounds, this gives added importance to poultry sector trade policy. Here lessons can be drawn from South Africa’s current poultry sector trade policy review, which seeks to draw inspiration from EU policy practice in the poultry sector as opposed to EU policy prescriptions. EU trade protections in the poultry sector serves not only to protect the domestic EU market, but also support EU poultry meat exports. These low-priced EU exports of poultry parts are in turn serving to undermine efforts aimed at developing both domestic African poultry production (in response to heightened food security concerns) and intra-African trade in poultry meat. Read more “EU Poultry Meat Exports to Sub-Saharan African Markets Surge at Beginning of 2021 Suggesting Trade Diversion is Underway”
Can European Parliament Concerns Over the Application of the EU Entry Price System for Tomatoes Hold Lessons for South Africa’s Poultry Sector?
Summary
Parliamentary calls are being made for the EC to revise the use of its entry price system for tomatoes, to enhance the effectiveness of this trade policy tool in the face of low-priced imports which undermine the commercial viability of EU tomato production. A similar entry price system could usefully be deployed to protect South African poultry meat producers when applying safeguard measures. This should be duly considered as part of the ongoing South African poultry sector tariff policy review. Read more “Can European Parliament Concerns Over the Application of the EU Entry Price System for Tomatoes Hold Lessons for South Africa’s Poultry Sector?”
EC Urged to Ensure Greater Reciprocity in SPS Protocols and More Effective Enforcement
Summary
Freshfel Europe has called for the EC and member states to develop ‘a concrete EU SPS strategy’ to improve access for EU fruit and vegetable exporters to 3rd country markets. ACP governments will need to take a nuanced approach to such overtures, paying careful attention to the practical operational policy implications of any commitments entered into, especially in regard to the possible impact on their relations with other major third country trading partners and regional trade integration initiatives. Read more “EC Urged to Ensure Greater Reciprocity in SPS Protocols and More Effective Enforcement”
South Africa to Undertake Comprehensive Poultry Sector Tariff Review
Summary
The South African International Trade Administration Commission is undertaking a comprehensive review of South Africa’s poultry sector trade policy in light of the objectives of the South African Poultry Sector Master Plan. This review could usefully draw on the EU’s experience of designing and applying trade policy tools in support of wider public policy objectives while respecting international trade policy obligations. Read more “South Africa to Undertake Comprehensive Poultry Sector Tariff Review”
Implications of the Veterinary Constraint on UK Export Health Certification
Summary
UK trade related veterinary inspection and certification services are facing serious problems of recruitment and retention as demand sours. There are calls for both a greater government role in the organisation and conduct of trade related veterinary inspection services and the establishment of para-professional veterinary support staff for the conduct of trade related inspection and certification activities. However, unless changes designed to address staffing constraints are introduced in close consultation with trade partners such changes could disrupt trade, creating a dual system of EU and non-EU accepted health certification. While there are also calls for new UK electronic EHC systems which are compatible with EU systems and for the UK to negotiate a veterinarian equivalency agreement with the EU, the current political atmosphere and evolving situation on the ground are not conducive to early progress in these areas. This could potentially give rise to UK export surges of livestock products to ACP countries and even EU export surges to ACP countries, if the UK enforces equivalent controls on imports from the EU, to avoid undermining the competitive position of UK livestock product producers. Read more “Implications of the Veterinary Constraint on UK Export Health Certification”
Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries
Summary
UK meat exports to the EU are down 50% in the first six weeks of 2021, with the decline in poultry meat being initially most pronounced. In the long term it is expected UK exports will be down between 230% and 50% depending on the product and size of the exporting enterprises. Particularly in the poultry meat sector this could lead to a surge in exports to non-EU markets, with African and Caribbean markets for frozen poultry parts likely to be targeted. This could easily double current levels of UK exports to targeted African and Caribbean markets. The eventual level of UK trade diversion in the poultry sector will be determined by the nature of the controls placed on mainland UK to Northern Ireland poultry trade. Read more “Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries”
The Implications of the EUs More Assertive Trade Policy: The EU Trade Policy Review Part 2
Summary
The EC is proposing a ‘more assertive’ trade policy, emphasising the need for partner countries to fully live up to commitments entered into under trade agreements their governments have signed on to. There are concerns the more assertive promotion of EU trade and economic interests will dominate other EU trade policy objectives. The EC’s ‘Open Strategic Autonomy’ concept seeks to reconcile the EU’s ‘managed trade’ import regime applied in sensitive agri-food sector, with the need for more open markets for EU exporters. There is a contradiction at the heart of EU agri-food sector trade policy, with the EC seeking to deny ACP EPA signatories the right to use trade policy tools to regulate imports in trade with the EU which the EC itself routinely uses to manage imports from other major agri-food sector competitors. This contradiction is likely to come to the fore in the coming years as the EC seeks to operationalise its ‘more assertive’ trade policy. This will be especially the case if the application of full UK border controls on goods crossing from the EU, generate the kinds of agri-food sector disruptions which have affected UK exporters since 1 January 2021. This could then see surges in EU exports to ACP markets for livestock products such as poultry meat and milk powders. Read more “The Implications of the EUs More Assertive Trade Policy: The EU Trade Policy Review Part 2”