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South Africa: food security at risk due to lack of water and energy

Review the zero-interest basket, asks the largest national poultry producer

The crisis into which the industry falls is deepening: in the absence of water and electricity supplies it will become difficult to cultivate corn and soybeans for feed intended for local poultry, the main source of protein in the country

Astral, South Africa's largest integrated poultry producer, in the face of the ongoing series of blackouts which has been paralyzing the country for years and which "seriously threatens national food security", is asking the government to remove VAT from agricultural products, or that the latter be included in the zero-interest basket (which already contains VAT-exempt eggs, dried beans and cornmeal), in order to alleviate the pressure on both the industries and consumers. And also to protect jobs in the sector, as Francois Baird , founder of the FairPlay Movement, recently underlined, declaring: "The poultry sector and the government must draw up a plan to ensure that the industry and its jobs are protected" and that the poultry supply is not disrupted. The industry directly employs more than 50,000 people. "The plan should lend support by immediately reintroducing anti-dumping duties and cutting VAT on local chickens and chicken feed".

“Removing VAT from any food product will also affect state revenues”, added Mervyn Abrahams , coordinator at the Pietermaritzburg Economic Justice and Dignity Group, which tracks food prices. “For the first time in South Africa, the Food security is seriously threatened due to agriculture's dependence on failing infrastructure and basic services. The rising cost of the food basket, which includes poultry as a basic protein, will subject the consumer to extreme financial stress - added Abrahams pointing his finger at a long-standing and unresolved problem-. The disappearance of South Africa's basic infrastructure, especially the electricity and water supply sectors, makes profitable trade nearly impossible. I don't think the government understands the gravity of the situation and the massive impact that cutting electricity and water has on ordinary citizens and businesses".

Astral, which has already warned that its half-year profit could fall by as much as 90%, has suspended its 2023 fiscal year expenditures of around 40 million euros (737 million South African rand), but said it will divert funds towards reserve energy sources which will cost over 21 million euros (400 million rand) in the first half of the year alone. In the face of this, comments Baird again, “small poultry farmers without the means to use alternative energy are in serious difficulty. Corn and soybean farmers who feed chickens cannot irrigate their crops. Next year, there could be a shortage of poultry feed, with further increases in both production factors and the final price paid by the consumer".

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EFA News - European Food Agency
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