The consequences of chicken dumping
EU trade agreements that favour the import of agricultural products with no import penalties allow the EU nations to flood markets in developing countries at very low price.
This practice is often referred to as dumping.
Dumping because the exporting nation is simply getting rid of its surplus for rock bottom prices.
Diners in Europe prefer white meat from chicken breasts, there is little market for legs and thighs. These are then "dumped" on other nations with these clauses specifically negotiated into their reciprocal trade agreements.
The effects of this dumping are devastating.
Here as some statistics relating to the dumping of cheap chicken on certain African states.
- Senegal has lost 70% of its local commercial chicken production
- It is estimated that 120 000 workers in the chicken industry in Cameroon have been laid off
- Ghana chicken processing has reduced to a quarter of what it used to be and feed mill capacity has been reduced by more than half.
Ironically many of the economic migrants to Europe would have been employed in these sectors but cannot due to the tonnes of frozen chicken being dumped on their shores.
Europe is getting rid of its excess or undesirable agricultural produce and making a few quick bucks but is importing destitute migrants in return with all of the problems that go along with that.
European trade agreements that support the import of agricultural products allow a fine for imports to the EU countries to lower the markets of developing countries at a very low cost.
The South African chicken industry, a significant portion of the country’s maize industry, and tens of thousands of jobs are under threat because huge quantities of surplus chicken are being dumped in this market by other countries at prices way below their cost of production.
The cause of the problem is that some foreign producers are selling cuts of brown meat that are unpopular in North America and Europe below cost in South Africa. The preference in North America and Europe is for chicken breasts and wings, and these premium cuts can be sold there at a price high enough to cover the production cost of the entire chicken. This leaves the brown meat – leg quarters of drumsticks and thighs – which becomes surplus offcuts which are classified as waste and then sold in any market that will take them for any price the exporters can get. They are sold below the cost of production, which is the trade definition of dumping and against the rules of the World Trade Organisation. As local producers cannot compete with dumped products at artificially low prices, they are left with no options other than to shut operations, cut jobs and eventually go out of business.
This is sad. My country is a victim here! Really sad that i cannot do much to change things. Thanks though for your post.
Yes, very true. I honestly feel ashamed to live in a country that has all these horrible practices going on, yet only a few people know about this. What our media is doing is just blinding us with superficial crap to keep us busy from whats really important...we are all just dumb consumers who better shut up and do what they tell us to do. Best not think, best not protest. let the rich get richer, let the poor get poorer, let nature die, let's just keep watching tv and dream of a perfect world, while everything around us falls to ashes...we need to stand up, change can only happen if the masses awaken. where do we start? any suggestions? .Greetings Embu :)
Very sad to know :( Thank you for sharing this great post!
Great information, thanks for this
good post.
chicken dumping but market fail, but you deserve done awesome post on this topic,i like it very much.
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