Latest EC Projections Show Growing Export Orientation of EU Poultry Sector

Summary

The EU poultry sector trade is composed of low value exports and high value imports, with the EU being a net exporter in volume terms but a net importer in value terms. In recent years the export of frozen poultry parts has risen dramatically, with the importance of sub-Saharan African markets to EU exporters growing significantly. In the coming years continued growth in EU production, in the context of a slowing down of consumption growth, will see the importance of export markets to the EU poultry sector grow significantly. This will see greater importance being attached to maximising revenue flows from the export of residual poultry parts. In the context of EPA implementation this could see increased pressure on African governments to remove all forms of trade barriers to EU poultry meat exports. This could then carry serious consequences not only for domestic ACP poultry producers but grain producers who supply feed to the poultry industry. Read more “Latest EC Projections Show Growing Export Orientation of EU Poultry Sector”

Timelines and Pitfalls in the Brexit Process

Summary
The timeline for the negotiation of both the EU27/UK transitional trade arrangement and the long term framework for future EU27/UK relations are now clearer. What remains unclear is the legal basis for the transitional arrangement under EU and UK law as well as under WTO rules. This could lead to delays and a hiatus in trade relations.

Similar uncertainties arise in relation to transitional UK ‘roll-over’ trade arrangements with groupings of ACP countries engaged in EPA processes with the EU. This is not solely a UK issue but will require the agreement of the EU given the UK will continue to be subject to EU rules and regulations during the transition period. In addition there is the question of the WTO compatibility or acceptability of any transitional UK trade arrangements with groupings of ACP countries. Considerable technical and political challenges will need to be addressed in the coming months if the UK governments’ commitment to ACP countries in regard to ensuring continuity of market access is to be realised in practice. Read more “Timelines and Pitfalls in the Brexit Process”

South Africa and Ghanaian Poultry Industries to Joint Forces Against EU Dumping of Poultry Parts

Summary
Poultry producers and trade unions in South Africa and Ghana have joined the FairPlay anti-dumping movement in opposing dumping of EU poultry parts on African markets. In West Africa, the EU poultry trade is seen as fuelling migration pressures. Given the scale of EU exports to 38 sub-Saharan African countries, this is a pan-African issue. Pressures on EU exporters to find new markets beyond the EU’s borders will increase in the coming years driven by expanding EU production, accelerating export growth and possible Brexit related trade disruptions. The experience under the EU-South Africa trade agreement suggests action by African governments will need to reach beyond tariff measures, although the use of non-tariff measures will increasingly be constrained by the obligations entered into by African governments under the EPAs concluded with the EU.

More broadly EU trade practices (e.g. the import of live chickens from Ukraine for slaughtering in the EU) suggests a need for stricter traceability requirements and the enforcement of rules or origin requirements under trade agreements with the EU. Read more “South Africa and Ghanaian Poultry Industries to Joint Forces Against EU Dumping of Poultry Parts”

EC Communication on CAP Reform Could Potentially Have Some Lessons for ACP Countries

Summary
There are two areas of the EC communication on CAP reform which could have a bearing on ACP-EU agro-food sector relations: those aspects dealing with the external trade dimensions of the CAP (given the EU is the single largest farm exporter in the world) and those aspects dealing with internal EU policies on managing price volatility and market crisis situations. The EC continues to pay no attention to the impact implementation of EU agricultural policy measures have on ACP markets on which ACP agricultural producers and agro-processors depend.  The EC focuses on how EU trade policies will open up further opportunities for EU agro-food exporters, ignoring African aspirations for the structural development of their own agro-food sectors. The EC could usefully extend it current regulatory initiatives to combat unfair trading practices (UTPs) along agro-food supply chains to of ACP-EU agro-food product supply chains. It could also usefully extend some of its innovative models of loan financing for on-farm investment to ACP producers. Read more “EC Communication on CAP Reform Could Potentially Have Some Lessons for ACP Countries”

Brexit and Trade Displacement: Areas of Concern for ACP Countries

Summary

An additional area of impact of Brexit which has to date been neglected when considering the consequences for ACP countries arising from the trade displacement. This would arise from two inter-related development: firstly the possible introduction of MFN tariffs on mutual EU27/UK trade in agro-food products; secondly the impact of new UK trade deals on the market position of EU27 suppliers on the UK market. Both of these developments could see export drives targeting ACP markets in the most seriously affected products, from sugar and dairy products to beef and poultry meat. Read more “Brexit and Trade Displacement: Areas of Concern for ACP Countries”

EU poultry meat production rising despite avian flu outbreaks

Summary

Avian flu outbreaks have left overall EU poultry meat production largely unaffected. Although AI related restrictions reduced EU poultry meat export volumes in the first half of 2017, particularly to South Africa the largest single export destination (-63%). Export growth to Gabon, DRC and Ghana while extremely high (+120%;96% and 69% respectively) could not outweigh declines in EU exports to South Africa and Benin. Beyond the current AI crisis in the EU, expanding imports of whole birds from Ukraine, the impact of lower feed costs on EU production and possible Brexit related disruptions of the EU27-UK poultry trade, could all fuel a further expansion of EU exports to Africa. This could continue to inhibit efforts to promote local poultry sector development across Africa. Patterns of Belgium poultry meat exports suggest African governments need to pay closer attention to the origin of poultry meat imports nominally originating in particular EU member states. Read more “EU poultry meat production rising despite avian flu outbreaks”

Report highlights vulnerability of EU poultry sector to liberalisation of trade in poultry meat

 

 

Summary

A January 2017 report on the relative competitiveness of the EU poultry sector highlights the importance of continued tariff protection and managed trade (using TRQ access) to the future of the EU poultry sector.  This EU policy practice contrasts markedly with EU policy advocacy in its dealings with ACP countries. Without trade protection competitive third country poultry producers would gain a strongly competitive position in the EU market, exporting far higher volumes of poultry meat to the EU. However, EU tariff protection cannot be justified on the basis of higher EU standards, which are small relative to the differences in price competitiveness between EU and major third country poultry exporters. Read more “Report highlights vulnerability of EU poultry sector to liberalisation of trade in poultry meat”

Analysts call for greater export focus for South African poultry sector

 

Summary

The South African poultry sector is being advised to promote exports as part of the solution to the challenge arising from the rapid expansion of imports of poultry meat form the EU. However, the EU is also expanding exports of low priced poultry parts to other sub-Saharan African markets, exporting to no less than 38 sub-Saharan African countries, with these markets now taking 47% of total extra-EU poultry meat exports. Neighbouring African governments are also seeking to develop their own poultry industries and are using various non-tariff trade policy tools in order to do so. 

Read more “Analysts call for greater export focus for South African poultry sector”

Agriculture to be a Focus of the Renewed Africa-EU Partnership

Summary
Supporting African agro-food sector development given its employment, food security and rural development effects is nominally a focus of the proposed renewed Africa-EU partnership. However differences of opinion over what constitutes an appropriate ‘regulatory and policy framework’ for African agro-food sector development, alongside unacknowledged tensions between EU agro-food sector export objectives and African agro-food sector development aspirations, could pose serious challenges for a renewed Africa-EU partnership in this area.  Read more “Agriculture to be a Focus of the Renewed Africa-EU Partnership”

EC rejects SAPA allegations of dumping of poultry parts

Summary
In the face of an ongoing campaign against poultry meat imports from the EU led by SAPA, the EC continues to deny accusations of ‘dumping’, placing a very narrow construction on the concept. While the AI outbreaks have provided some short term relief to the South African poultry sector, this is not seen as providing a long term solution. Calls by the South African authorities for an international initiative to address the structural surplus of ‘brown meat’ on international markets, continue to be ignored by the European Commission. Read more “EC rejects SAPA allegations of dumping of poultry parts”