The Deputy Director-General of Industrial Policy Development at the Department of Trade and Industry (the dti), Mr Garth Strachan says the South African government is committed to ensuring that jobs in the poultry sector are saved. Strachan was speaking during the public hearings on the poultry sector challenges hosted by the Portfolio Committee on Trade and Industry in Parliament today.

“It is in the national interest for government to defend jobs, prevent closure of factories and to defend the poultry sector across the entire value-chain. Jobs and food security are enormous considerations by government.  But at the same time we have to balance the interests of consumers,” said Strachan.

He added that the government recognised challenges associated with competitiveness in the poultry sector particularly in the mechanically deboned meat. However, he acknowledged that the challenges also present a perfect opportunity for government and the industry to work together to secure investment in the necessary capital equipment and to raise the sector’s competitiveness. In addition, initiatives responding to the challenges will also enable government to address issues of transformation.

“The entire approach is based on the fact that there are going to be trade-offs when government looks at supply measures, agro-processing incentive and industrial financing. We are also discussing with Land Bank in relation to transformation and land in the value-chain,” added Strachan.

“In addition to the supply side measures, the demand measures are also equally important. We are working closely with the National Treasury regarding the new regulations of the Preferential Procurement Policy Framework Act to ensure that we raise the aggregate demand for locally produced products through procurement.  We will also be addressing market access challenges through our export promotion work at the dti,” said Strachan.

He stressed to parliamentarians that there were no easy, overnight answers to the challenges facing the country’s poultry sector.

“We need a multi-faceted approach similar to the one we are applying in the steel industry. It is only by working together that we can save the jobs in the poultry sector,” he emphasised.

Issued by Department of Trade and Industry