Poultry industry needs protection

18/06/2015 10:28 - 595 Views

The future operations of Namibia Poultry Industry (NPI), the biggest broiler investor in the country, will depend on the state’s imposition of Infantry Industry Protection (IIP) legislations against poultry importers as government’s way of protecting local producers.

Namibia’s poultry industry currently operates without notable support measures from government, widely needed in the growth of the local industry.

South Africa is the only Southern African Customs Union (SACU) member to have taken steps towards the implementation of anti-dumping and general tariffs on the importation of chicken, leaving an uneven playing field for other SACU members with regard to the prevention of predatory pricing from the larger South African producers.

NPI managing director Gys White says as investors in a complex green fields industry, local producers agree that government should impose legislation that creates a fair environment for newly-established Namibian industries and to prevent the importation of products at dumped, subsidised, or predatory prices.

“The local poultry industry competes against outside competitors who trade in Namibia at prices lower than in their respective countries because of subsidised prices due to huge market shares. The anticipated support measures will ensure that the local industry will not have to compete against this kind of detrimental pricing practice,” says White.

In the achievement of international best practices and efficiency, White says the local poultry industry needs a strong and sound capital base to compete against South African and overseas manufacturers that have had the opportunity to create a solid capital base, since these businesses have lower debt levels that contribute to a lower manufacturing cost per tonne.

In addition, White says, Namibian industries will need to invest in the training and development of the local work force, the foundation of well-known Namibian brands and establishment of strong relationships with traders.

“IIP will support measures that will grant the local industries these opportunities which go in line with international free trade agreements. Government will be the watchdog in preventing unrealistic price levels by businesses in industries which will benefit from legislation like the implementation of Infant Industry Protection,” White concluded.

Trade and Industry Minister Calle Schlettwein yesterday confirmed to Informanté that Cabinet is in the process of finalising negotiations to grant IIP to the Namibian poultry sector as a whole.

“I can’t say much, but that’s where we are at the moment,” Schlettwein said.

Tuesday, 19 March 2013 19:50

Written By Edson Haufiku

Source: informante.web.na