Abstract
The South African poultry industry significantly contributes to the country's food security and economy. However, it is characterized by high concentration levels and reliance on trade protection measures. This study aimed to evaluate the effects of trade protection in a highly concentrated market using the poultry industry as a case study. The research methodology involved a comprehensive examination of the South African poultry industry, including evaluating its competitiveness, market structure, and the effects of trade protection. The study employed a mixed-methods approach, combining quantitative and qualitative analysis. This comprehensive methodology enables a significant understanding of the broader economic ramifications of trade policies and market dynamics in the poultry sector. The research approach is explanatory because it clarifies the underlying relationship between market concentration, trade protection measures and different market outcomes.
The key findings indicated that the industry's competitiveness is constrained by high feed and day-old chick prices, exchange rate volatility, and global commodity price fluctuations. The study also revealed that the South African poultry industry is highly concentrated at the inputs level (feed and day-old chick), with a few dominant players controlling substantial market share. This high level of concentration, coupled with trade protection measures, has resulted in higher input costs, stifled competition, and limited consumer choice. The study concluded that the market outcomes of trade protections are significantly shaped by the high concentration levels in South Africa’s poultry industry. Based on these findings, the study recommends improving the industry's performance and enhancing consumer welfare by increasing competition in input markets, lessening dependency on trade protection, assisting small-scale farmers, and improving consumer protection.