The end of South African tariffs on the import of American chicken could be a huge boon for Georgia’s poultry industry, U.S. Sen. Johnny Isakson said Thursday.
The South African government had imposed a 100 percent tariff on U.S. poultry for nearly 15 years, essentially blocking American farmers from reaching that market.
But Isakson, R-Ga., said the new deal will soon have Georgia poultry headed for South African, although an exact timeline isn’t known.
"This is a huge plus for Georgia poultry and the Georgia chicken industry," Isakson said in an interview with AccessWDUN. "This deal will add 65,000 metric tons a year of potential new markets for Georgia-based poultry. It's very substantial, and it's a long-term proposition. This isn't a one-year deal."
Representatives from the two countries agreed to remove the tariff after negotiations in Paris earlier this month. Isakson and Sen. Chris Cooms, R-Del., and chairman of the Senate Chicken Caucus, pushed for the deal.
Georgia’s poultry farmers will certainly benefit now that they are able to access a growing market in South Africa. Data for the USA Poultry & Egg Council, a national trade association, estimated that sales could reach 65,000 metric tons of chicken per year. A metric ton equals about 2,205 pounds.
The Poultry & Egg Export Council estimates U.S. chicken growers could reap $65 million annually from selling their products to South Africa.
Officials in Georgia celebrated the deal, although some details – such as when the exports can begin – remain to be worked out. Mike Giles, president of the Gainesville-based Georgia Poultry Federation, said the industry must continue to look for ways to open new markets.
“Exports really are our future, in terms of growth,” Giles said. “We are for fair trade, free trade and the removal of trade restrictions. This deal does that for us.”
Giles said that when the poultry industry first began to seriously expand overseas in the early 1990s, only about 6 percent of sales were exported. Today, that number is about 20 percent. In Georgia, he said, it’s probably slightly higher because of the proximity to the port of Savannah, the country’s largest poultry exporting port.
South Africa first imposed the tariffs shortly after the United States passed the African Growth and Opportunity Act, a trade programs that provides duty-free treatment to U.S. imports of certain products from eligible sub-Saharan African countries.
For years, the American poultry industry has pushed to have the tariffs eliminated. On at least two occasions in the last three years, deals were nearly struck, only to have the South African government walk away from negotiations.
Isakson said AGOA has overall been good for both the U.S. and Africa.
“It’s been a good deal for the U.S., don’t get me wrong, but it’s been a particularly good deal for Africa because it opens access to U.S. markets without tariffs on African products, which helps build their economy,” Isakson said. “Africa is the continent of the 21st century. That’s where the growth is going to take place.”
Although it is not clear how much of the revenue to South Africa will eventually find its way to Georgia, Isakson said there is no doubt the state will benefit.
“I’m sure the chickens will be flowing out of the port of Savannah in the not-too-distant future headed to South Africa,” he said.
