For the second time, European producers and exporters of frozen chips are facing anti-dumping duties on their products in South Africa. The Netherlands, Belgium and Germany have to deal with hefty import tariffs in order to protect the potato industry in the country.
The rates are set by the government service ITAC. In 2013, South Africa imposed a 62% import tax on French fries from the EU. The export level then dropped almost to zero, never to really recover. This levy expired at the beginning of 2021, after which exports could resume at the old pace. In the last twelve months, the export level of frozen chips increased by 40%. Belgian and Dutch factories in particular saw their opportunity and benefited from very good demand. Exports were again carried out at highly competitive rates.
Belgian and Dutch processors
As in the previous case, it was McCain South Africa – together with two local partners – that filed a complaint with the International Trade Administration Commission of South Africa (ITAC). At the end of July, the government service ruled that this was the case again antidumping on the South African market. The report mentions the Belgian processors Agristo, Mydibel, Clarebout and Lutosa and the Belgian-Dutch Aviko and Farm Frites. No names are mentioned for Germany, but research has been done into Agrarfrost.
The import tariffs they face differ per company and country. Mydibel receives a levy of 22%, Farm Frites 25% and Aviko 10%. For other Belgian processors this is 24% and for Dutch companies 121%. In Germany, an import tax of 190% applies to all processors. This anti-dumping measure applies for a period of six months.
Belgium largest market share
The period examined runs from July 1, 2020 to June 30, 2021. In that time frame, 22.440 tons of frozen fries were imported, of which Belgium accounts for the largest volume at 71%. The Netherlands follows with 14% and Germany has a 16% market share.
ITAC has not announced the prices paid for fries. The harmonized trading system shows that Belgium consistently supplies the cheapest fries, followed by the Netherlands and Germany. The price of Dutch products in particular has risen. Other countries serving the South African market are the United States and India, but the role of both countries is small compared to the EU.