Trends in poultry exports to Pacific ACP countries
26 January 2014
The latest Global Poultry Trends 2013 report highlights a more than tripling of chicken meat imports into Pacific ACP (PACP) countries between 2000 and 2011 (the latest year for which data is available), from 9,609 tonnes to 34,791 tonnes. Tonga and Samoa together accounted for almost 58.6% of these imports in 2011 and, together with Papua New Guinea (PNG), 76.3%.
Chicken meat imports to Pacific ACP countries (tonnes)
2000 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Percentage change 2006–11 |
|
Cook Islands | 520 | 784 | 857 | 729 | 637 | 878 | 1,538 | +96 |
Fiji | 707 | 1,948 | 1,082 | 1,408 | 1,116 | 1,419 | 1,137 | -42 |
Kiribati | 570 | 1,008 | 957 | 757 | 762 | 617 | 492 | -51 |
Niue | 50 | 79 | 82 | 547 | 45 | 60 | 25 | -68 |
PNG | 1 | 986 | 1,305 | 2,269 | 3,881 | 3,779 | 6,169 | +526 |
Samoa | 4,100 | 4,445 | 6,022 | 7,191 | 7,489 | 9,660 | 10,859 | +144 |
Solomon Islands | 100 | 295 | 459 | 657 | 817 | 879 | 2,801 | +849 |
Tonga | 2,531 | 3,768 | 3,934 | 3,475 | 5,376 | 7,156 | 9,512 | +178 |
Tuvalu | 290 | 190 | 243 | 234 | 286 | 336 | 325 | +71 |
Vanuatu | 740 | 1,037 | 873 | 1,169 | 1,243 | 1,720 | 1,933 | +86 |
TOTAL | 9,609 | 14,540 | 15,814 | 18,436 | 21,652 | 26,504 | 34,791 | +139 |
Annual percentage change | +8.9 | +16.6 | +17.4 | +22.4 | +31.3 |
Source: FAO, cited in Thepoultrysite.com, 13 November 2013 (see below), Table 5
The figures show an accelerating rate of growth of imports of chicken meat into the Pacific since 2006, with imports increasing 139% for the nine PACP countries covered by the review. The picture varies, however, from country to country, with imports in one of the larger markets, Fiji, down 42% between 2006 and 2011. This reflects an increase in poultry production “from approximately 11 million chickens per annum in 2008 to over 15 million” by the beginning of 2012. This followed investment by Goodman Fielder New Zealand (see Agritrade article ‘ Fiji poultry sector to expand amid regional tensions’, 18 June 2012). Among PACP countries, Fiji is the only one reportedly involved in the chicken meat export trade, with exports of 61 tonnes in 2011 (for Fiji’s aspirations in this regard see Agritrade article ‘ USDA publishes review of Timor-Leste poultry sector’, 9 August 2011).
Chicken meat imports into PNG once again came in for criticism in November 2013. The Poultry Industry Association (PIA) accused poultry traders of profiting at the expense of poultry producers. On average, importers were paying AU$1.12/kg for frozen and chilled fresh chicken, with a landed value of AU$2.74/kg, while the production costs in Australia were approximately AU$3.18/kg. With traded poultry products being exported at significantly below the average cost of Australian poultry meat, it was argued that PNG had become a “dumping ground”. However, these poultry exports consist “primarily of low quality, high fat and dark meat portions”, which find no ready market in Australia and New Zealand.
PIA representatives rejected accusations that high feed costs accounted for the industry’s lack of competitiveness, maintaining there were a variety of causes behind the local industries’ high production costs, including high electricity, security and transportation costs. This prompted a call for government action to reduce the costs incurred by industry in all of these areas, to stimulate domestic production and eventually exports.
Editorial comment
The decline in imports into Fiji can be attributed to the government’s quest for self-sufficiency and associated policy measures, including general improvements in the enabling environment for private sector operations; the use of price controls on wholesale and retail prices of poultry products; and the granting of tax holidays and tariff concessions on inputs (day-old chicks and feed). The measures are justified on the grounds of the investments made to promote self-sufficiency in poultry production, including the establishment of a new breeding facility, hatcheries and packaging plants.
More recently the government has also sought to address supply-side constraints on expanded poultry production by developing production at two prison farms to supply inputs to the sector.
However, despite these support measures the target deadline of 2011 for 85–90% self-sufficiency was missed; in the first half of 2012 a self-sufficiency rate 80–85% was reported. By the end of 2012, however, a self-sufficiency rate of 97% in poultry meat and 100% in eggs was being claimed.
While the current policy is seen as producing good results in terms of rural development, rural entrepreneurship, job creation and food security (chicken is a cheap source of protein under the government’s Food Voucher Scheme), there is a need to reflect on the overall balance of benefits, in terms of the opportunity cost of pursuing the current policy measures.
An objective assessment of the Fijian experience would appear to be relevant to the situation in PNG, as pressure mounts from local producers for increased levels of protection against imported chicken products.