South Africa's trade benefits under the African Growth and Opportunities Act (Agoa) will be suspended from 15 March 2016, effectively setting a new deadline for American poultry to be allowed into the country.
AgriSA's Thabi Nkosi said that the local poultry industry will be displaced in the South African market, if the American import agreement is renewed.
Nkosi advised that local poultry producers needs to be competitive in the global market to counteract the negative impact of the drought and rising maize prices.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:
The costs to produce a chicken in South Africa is much higher than other markets in the world - and that is the real concern for the poultry industry.— Thabi Nkosi, Senior Economist at AgriSA
Trying to protect the local market against imports is an unsustainable solution.— Thabi Nkosi, Senior Economist at AgriSA
The discussion should be about making them competitive, creating economies of scale and seeing how we can bring down feed costs.— Thabi Nkosi, Senior Economist at AgriSA