Poultry Production In Sub-Saharan Africa Case Study

892 Words 4 Pages
We have all heard the old adage “Why did the chicken cross the road”. This saying has existed for year and apparently is true. The chicken has been crossing the road. Consequently, the road leads from the United States to Sub-Saharan Africa. The United States is the world’s leader in poultry exports to that region (Taha, 2016). Thus, the United States poultry industry is booming at $523.6 million dollars in Sub-Saharan Africa (SSA) alone in 2014 (Taha, 2016). The poultry production in SSA however, is on the decline due to the surge of poultry imports from the United States. In international business, competition can be a health undertaking (Russell, 2015). However, when employment in your country is hindered and international business …show more content…
This action caused a drop of United States poultry exports from 25,027 tons the year prior to only 2,688 tons by 2001. However, due to a lack of poultry production this amount slowly increased to 31,705 by 2011. Hence, even though the United States saw an initial drop in revenue they slowly rose back to prominence in the region (Taha, 2016). However, in 2011 the amount of poultry shipment reduced again as even greater tariffs were instituted within in South Africa (Taha, 2016). The additional tariffs were created due to a drop in poultry production within the SSA (Steyn, 2013). Thus, a lack of the poultry product hindered jobs and created a need for tariffs in order to foster greater international business within the region. However, unlike the first tariff imposition in 1999, this time the poultry industry in the region did see …show more content…
As this country is the most stable nation in the region with the most diverse economy, it was able to handle the need for higher poultry production to meet the needs of neighboring nations. Moreover, the stable economy of South Africa coupled with the fact that it had tariff protection allowed it to undercut the United States chicken prices (Russell, 2015). This caused the United States chicken to lose ground in local markets. Some have argued that the tariffs imposed will be good for the grown of the SSA and continue to push for further restriction on imported poultry products (Styen, 2013). Although, there are those in the United States that oppose this view point and are pushing to have poultry tariffs changed (Russell, 2015). Furthermore, the antagonists threatened to remove South Africa from African Growth projects if the tariffs are not lifted. The outcome of these debates have led to the tariffs remaining. However, the tariffs that were imposed focused on whole chicken as those are more often purchased by the rich and the country did not want tariffs that raised the price on the poor (Steyn, 2013). This has caused the tariffs to not affect the United States as much as anticipated. As the United States mostly exports chicken in processed or butchered pieces the tariffs have caused a smaller effect on the United States then it did countries such as Brazil that ship whole chickens

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