Things to Crow About...

In the previous edition of Things to Crow About, we highlighted the situation with imports of poultry products, mainly frozen leg quarters, into Trinidad & Tobago.
We demonstrated the impact that this was having on the local industry, which was expected to show negative growth for the first time in over twenty years. The Poultry Association of Trinidad & Tobago (PATT) in conjunction with the CPA had made representations to several Ministers of Government, demonstrating the negative impact of the imports on the local industry and requesting appropriate actions through Government policy in the budget, which was to be presented in September 2009. Specifically, PATT had requested inter alia the following:

1.    Reintroduction of the CET of 40% on a category of
       frozen poultry imports classified as Other
2.    Reintroduction of surcharges on leg quarters

None of the actions proposed by PATT were implemented in the budget that was presented on 07 September 2009, despite statements in the budget about diversifying the economy and actions to stimulate agriculture.

Import of Frozen Parts:
During September, the CPA was made aware of a similar situation in Barbados, where the import of frozen turkey parts was having a negative impact on the local Barbadian poultry industry. We have also been informed that a similar situation exists in Suriname.

Imports of frozen poultry into the Eastern Caribbean territories has long been of concern and have stymied the growth of a vibrant poultry industry in these countries.

The Caribbean is in the invidious position of being sandwiched between Brazil and the USA, the two largest exporters of poultry in the world. Together these two countries are expected to export 7.3 million metric tons of poultry products in 2009. The export tonnage from Brazil (3.8 million metric tons) and the USA (3.5 million metric tons) account for some 72% of the poultry that gets into international trade (10.2 million metric tons in 2009).

Poultry Industry recognised as a Strategic Agro-Industry:
Policy decisions in various parts of the world regarding the growth of the poultry industry, which is increasingly being viewed as being a strategic agro-industry are having a dramatic impact on the directions of international trade. Russia, long a major importer of leg quarters from the USA, have begun limiting imports and have taken major steps to become self sufficient in poultry by 2012. The Chinese are also limiting poultry imports, both as a trade negotiation ploy and also because China itself wishes to become a major poultry exporter.

US Poultry Products - What it means to us in the Caribbean?
In the USA, which is of particular interest to us in the Caribbean because of traditional trade and other ties, the poultry products most in demand in the domestic market are breast meat and wings. Since the broiler that is only breast and wings is not yet a reality, leg quarters, feet (paws) and backs & necks are in surfeit and markets need to be found for these products. Subsidies of one kind or another and stimulus programmes combined with the fact that these latter products are classified as residual products, mean that such products can be unloaded on markets at whatever prices the markets can bear.

We in the Caribbean, need to be on our guard lest imports destroy an industry that we have laboured long and hard to build and develop.

The Poultry Industry and Caribbean Development
Our industry in CPA member countries supply much needed animal protein to our peoples (over 80% of animal protein and 60% of total protein), generate direct employment for over 200,000 persons and indirect employment for another 100,000 persons, employs capital in excess of USD500 million, saves on foreign exchange (by the time that our products are sold, the foreign exchange components of the products has fallen to below 25%) and is a huge generator of SME entrepreneurship.

Additionally, the industry continues to be on the cutting edge of technology with significant new annual investments in tunnel-ventilated housing (as seen in image below), new processing technologies, automation, IT, R&D into new products and investments in further poultry processing products.

The poultry industry in the region which receives no subsidies of any sort, needs to be defended against subsidised imports and residual products. More than ever, we in the Caribbean must demand a level playing field if we are to maintain our WTO commitments. In fact where the WTO is concerned, while every country that is signatory to the WTO continues the search for windows of opportunity within the agreement, we bury our collective 'heads in the sand' and try to be holier than thou.

Learning lessons from the past
We need to learn from the impact of rice imports from the USA into our fellow Caribbean country, Haiti.

Once Haiti had a vibrant rice sector mainly peopled with small rice farmers. Today that industry is no more, devastated by subsidised US rice imports during the Duvalier regimes. That has exacerbated rural poverty in Haiti and has continued to contribute to Haiti as the poorest nation in the Western Hemisphere.

In 1981, Vidia Naipaul, then a nominee for the Nobel Prize in Literature was asked on BBC TV:

BBC TV: Sir Vidia, what is to be the fate of the Caribbean?

Sir Vidia: Haiti

Are there persons in the region working assiduously to make Sir Vidia look good?