QUESTION

Argue whether the chicken farming industry or cement industry in SA should have been
protected from cheap imports.

Note: Your answer must cover the benefits and possible drawbacks in respect of state
implemented protection policies that could have been implemented.

Length of answer: maximum of 600 words.

Reference guide: At least 3 references.

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ANSWER

1. INTRODUCTION
The chicken farming industry is the second largest consumer of maize; and supports many
peripheral businesses, including the feed industry, this forms the value chain that is efficient
especially to the interconnected industries that are also benefiting. For an example, the
poultry industry plays a substantial role in the South African agricultural economy (South
African Poultry Association, 2022).

In 2019, chicken farming faced unreasonable increases in animal feed prices which then later
affected the consumer spending, due to that fact there were cheap chicken imports and egg
producers, chicken industries found themselves in a situation of oversupply and decreasing
returns, this led to jobs loss which could have created locally, those jobs were then indirectly
outsourced to European Union, Brazil and the US (South African Poultry Association, 2019).

Poultry farming in South Africa has experienced consistent declines, with many farmers
opting to lay off employees as a means to maintain their businesses. Nonetheless, over time,
those who have lost their jobs and are unable to contribute to the struggling economy may
end up relying on state social grants, which have become a significant expenditure for the
government (Agriculture, Land Reform & Rural Development, 2022).

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The South African government ought to enact policies aimed at enhancing and broadening
domestic chicken production, thereby fostering job growth within the maize and soybean
sectors. This expansion should be coupled with initiatives to enhance skills among the
workforce and promote economic empowerment in black communities (Madibana, 2024).

2. BENEFITS OF STATE IMPLEMENTED PROTECTION POLICIES

Job Preservation and Creation

According to the South African Poultry Association (2019) the chicken farming industry is a
significant employer, providing direct and indirect employment to over 110,000 individuals. By
protecting the local industry from cheap imports, the government can preserve existing jobs
and potentially create more employment opportunities, particularly in related sectors such as
maize and soya production.
Economic Stability
Protecting the chicken farming industry helps maintain economic stability by preventing job
losses and reducing reliance on state social grants. A thriving local poultry sector contributes
to the overall health of the economy, promoting growth and development.

Support for Smallholder Farmers

According to the South African Poultry Association (2022) the Egg Organization introduced
its fresh transformation model, Amakip-kip, in 2021, with initial farmers reaping its rewards by
2022. Protection policies can benefit smallholder chicken farmers who may struggle to
compete with large-scale international producers.

3. POSSIBLE DRAWBACKS OF STATE IMPLEMENTED PROTECTION POLICIES

Higher Consumer Prices

South Africans remain optimistic that inflationary pressures will stabilize soon, however,
consumer price inflation has surpassed the Reserve Bank's target (South African Poultry
Association, 2022). Consumers could face increased costs, which may disproportionately
affect low-income households. Balancing the interests of consumers with the needs of local
producers is crucial to avoid negative consequences for vulnerable populations.

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Dependency on Government Support
While protection policies may provide short-term relief for the chicken farming industry, they
could also foster a dependency on government intervention. Supporting and offering direction
for the transformation of the wider poultry sector in accordance with relevant government
policies, goals, and laws (South African Poultry Association, 2022).

4. CONCLUSION
In conclusion, while there are potential drawbacks to implementing protectionist measures for
the chicken farming industry in South Africa, the benefits of preserving local jobs, ensuring
economic stability, and promoting food security outweigh these concerns. Therefore, it is
evident from the above discussion that the chicken farming in South Africa should have been
protected from cheap imports as they provide direct and indirect employment, those who lost
jobs cannot contribute to the economy which is in deep decline.

WORD COUNT:
594

REFERENCES:
Agriculture, Land Reform & Rural Development, (2022) A profile of the South African Broiler
Market Value Chain. Available: http://webapps1.daff.gov.za/AmisAdmin/upload/Broiler
%20Market%20Value%20Chain%20Profile%202022.pdf (Accessed 23 April 2024).
Madibana M.J., (2024) African Journal of food, Agriculture, Nutrition and Development.
Available:
https://www.researchgate.net/publication/378591702_CHICKEN_DUMPING_IN_SOUT
H_AFRICA_AND_THE_LONGTERM_EFFECTS_ON_LOCAL_COMMERCIAL_CHICK
EN_FARMING_INDUSTRY_A_REVIEW (Accessed 23 April 2024).
South African Poultry Association (SAPA), 2019. South African Poultry Association 2019
Industry Profile. Available: https://www.sapoultry.co.za/pdf-docs/sapa-industry-
profile.pdf (Accessed 23 April 2024).
South African Poultry Association (SAPA), 2022. South African Poultry Association 2022
Industry Profile. Available:
https://www.sapoultry.co.za/wp-content/uploads/2024/02/SAPA-INDUSTRY-PROFILE-
2022.pdf (Accessed 11 May 2024).