IDEAS home Printed from https://ideas.repec.org/a/taf/ragrxx/v54y2015i1p70-95.html
   My bibliography  Save this article

Evaluating the effect of proposed tariff protection for the South African broiler industry

Author

Listed:
  • P. Davids
  • F.H. Meyer
  • M. Louw

Abstract

Following the application in March 2013 by the South African Poultry Association for increased tariffs to ensure the sustainability of South African broiler production, this article critically evaluates the effect of increased tariffs on broiler producers and chicken meat consumers in South Africa. Arguing beyond the level of tariffs, it highlights some of the deeper underlying drivers of competitiveness in the industry. From a self-sufficiency perspective, the need to support broiler producers is clear, yet the cost to consumers as well as the segment of the population that would have to bear the cost of higher tariffs is questioned. The proposed tariffs as well as two other possible scenarios are simulated within a partial equilibrium framework in order to determine the effect on the fundamentals of the South African broiler industry. Simulations highlight the difference in outcomes when imports originating from the EU are also included in the general tariff increase. Under the basic scenario that simulates the impact of the current tariff application by SAPA, consumer prices for whole frozen chicken will increase by 2.6% while producers will enjoy an increase in producer prices of approximately 5%. On average, local production will increase by 16 000 tons per annum in the long run. Although 5% is a significant margin on the bottom line for broiler producers and a 2% increase in the average consumer price seems to be digestible, one has to take a step back and ask the question why our chicken producers cannot compete against imported chicken.

Suggested Citation

  • P. Davids & F.H. Meyer & M. Louw, 2015. "Evaluating the effect of proposed tariff protection for the South African broiler industry," Agrekon, Taylor & Francis Journals, vol. 54(1), pages 70-95, March.
  • Handle: RePEc:taf:ragrxx:v:54:y:2015:i:1:p:70-95
    DOI: 10.1080/03031853.2014.995190
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/03031853.2014.995190
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/03031853.2014.995190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. T. Davids & F.H. Meyer, 2017. "Price formation and competitiveness of the South African broiler industry in the global context," Agrekon, Taylor & Francis Journals, vol. 56(2), pages 123-138, April.
    2. Lawrence Edwards & Zaakirah Ismail & Godfrey Kamutando & Simbarashe Mambara & Matthew Stern & Fouche, 2022. "TheconsumerpriceeffectsofspecifictradepolicyrestrictionsinSouthAfrica," Working Papers 11036, South African Reserve Bank.
    3. Haya Hoja & Pei Yu, 2022. "Developing and Enhancing the Competitiveness of the Palestinian National Product: The Leather and Footwear Sector—Analysis and Evaluation of Government Interventions," Sustainability, MDPI, vol. 14(13), pages 1-29, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ragrxx:v:54:y:2015:i:1:p:70-95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ragr20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.