The Animal Feed Manufacturers Association (Afma) wants a reduction in regulatory costs that are harming the competitiveness of the animal feed industry. De Wet Boshoff, Afma general manager, said they wanted the safeguard duty on the importation of lysine [an amino acid that limits milk production] and the import duty of 6,6% on soya oilcake removed.
I n May this year a 160% import duty on lysine was introduced in reaction to a sudden surge of lysine imports into South Africa. “This will add an estimated R120 to R130 million to the costs of Afma members,” Boshoff said. Afma lodged a complaint against the safeguard measure with the International Trade Administration Commission of South Africa (Itac). After investigations, Itac’s preliminary findings caused this duty to be reduced to 27%, to be scaled down in three years. However, Afma will press to have the duty removed completely. “Afma still finds this preliminary duty unacceptable and too high,” he said.
S imon Streicher, CEO of the African Pork Producers’ Organisation, said he was pleased the duty had been reduced so much. “This will have a big impact on the feed costs for the pork industry,” he said, adding that the duty costs the industry about R35 to R40 a ton on feed. Afma members import more than 75% of the local demand for soya oilcake. From January to December 2006, 790 403t were imported, most of which was used in animal feed. Boshoff said if the soya oilcake price was taken at R2 200 a ton at the normal inclusion rate, calculated on the sales volumes of 2005/2006, Afma members could save about R60 million on broiler feed alone. f these regulatory measures stay in place, said Boshoff, it could cost the animal feed industry R190 million. He said decreasing these costs would also benefit the broader livestock industry and ensure consumers did not pay more for food. – Wilma den Hartigh
