Chicken Exports: Europe plucks Africa!

A campaign for the right to protect agricultural markets

BELGIQUE

LUXEMBOURG

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Chicken Exports: Europe plucks Africa!

A campaign for the right to protect agricultural markets launched jointly
In Belgium by

Summary
Chicken trade, the saga of international trade with disastrous consequences p 3 Panorama of world markets p 4 Situation in African countries p 5 Poultry farming in Africa p 5 Cameroon, the front line p 7 Senegal: chicken at 250 FCFA/kg p 8 Political context in African countries p 10 Poultry markets in France and in Europe p 13 Newcomers in international trade p 14 The European context: Economic partnership agreements p 16 A campaign with many facets p 17

Gresea: Groupe de Recherche pour une Stratgie conomique alternative www.gresea.be SOS Faim Action pour le Dveloppement www.sosfaim.be
In France by

Agir Ici www.agirici.org CCFD: Comit catholique contre la Faim et pour le Dveloppement www.ccfd.asso.fr CFSI: Comit franais pour la Solidarit internationale www.cfsi.asso.fr GRET: Groupe de Recherche et dEchanges technologiques www.gret.org
In Luxembourg by

SOS Faim Action pour le Dveloppement www.sosfaim.org with the support:

At the European level of:

APRODEV: Association of World Council of Churches related Development Organisations in Europe www.aprodev.org
In Switzerland of:

IRED: Innovations et Rseaux pour le Dveloppement www.ired.org

In Cameroon of:

ACDIC: Association citoyenne de Dfense des Intrts collectifs www.acdic.org SAILD: Service dAppui aux Initiatives locales de Dveloppement www.saild.org
In Benin of:

ANAB: Association nationale de lAviculture bninoise

In Ivory Coast of:

IPRAVI: Interprofession avicole ivoirienne

Authors of document: Caroline Dormus-Mege (Agir Ici), Catherine Gaudard (CCFD), Denis Horman (Gresea), Bndicte Hermelin (GRET) and Jean-Jacques Grodent (SOS Faim Belgique).

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Chicken trade, a saga on international trade with disastrous consequences

Since 1996, imports of deep frozen chicken are exploding in a great number of African countries. The consequences of these developments are becoming clear today: thousands of jobs are threatened, or even disappear, in Africa as in Europe; security of food supplies for African populations is in jeopardy; poultry,unfit for human consumption,is sold on African markets; the environment suffers from intensive breeding practices in the poultry business; working conditions in industrial breeding centres are deteriorating in Europe as well as in countries of the South. Furthermore, many agribusiness companies relocate their production sites, thus forcing many breeders to close down in Europe and contributing to the rise of new exporting countries,like Brazil. Just as in a carefully planned scenario, these phenomena are linked. The facts are known. Mobilization is on the way, first in Africa (Cameroon and Senegal a.o.), then in Europe (France, Belgium, Luxembourg, Netherlands, Germany). Analyses are made, practices denounced, alliances are formed and the goals made clear. The European Union (EU) bears a triple responsibility: today,it is the greatest exporter of deep frozen chicken; it plays a major role when it comes to define the rules of international trade; it defends a Common Agricultural Policy (CAP) which privileges intensive farming as well as exports to already fragile countries The chicken saga covers problems of agriculture, environment, society and commerce. Thus it bears on the fate of farmers in the South as well as on that of farmers and workers in the North,on the environment of Brittany as well as in northern Brazil; it affects food security and safety of consumers and citizens, be they Africans or Europeans ! Are chicken exports just an isolated case, an example of concentration of possible failures within a system of free trade with farm products ? Production and marketing of poultry certainly are emblematic,but cereals,tomatoes,onions or milk are as many threats to fragile food markets in African countries. The present document tries to show what is at stake in this chicken saga.It is the result of joint efforts of seven European organizations,supported by a number of African organizations,which are directly involved in awareness and mobilization campaigns in Africa.

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Chicken Exports: Europe plucks Africa!

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Panorama of world markets

After pork, poultry meat is the most produced and most eaten meat in the world (12 kg/head/year in 2003) (1). Wide spread battery farming or off the ground breeding methods have reduced production costs and, more important, breeding time. It also introduced standard production methods and products, making relocation an easy choice. Chicken meat accounts for about 85% of poultry meat produced world-wide (2).

Development of world markets. Growth of world-wide chicken meat production is spectacular. It can be explained by
rising standards of living in certain countries, as in China, which has led to rising per capita consumption of meat. Rationalization of production methods is another reason. The worlds meat production rose by a factor of 1,5 between 1970 and 2003; production of chicken meat by a factor 4 during the same period, whereas exports rose by a factor 13 between 1970 and 2000.

million tons carcass equivalent 1970 1985 1994 2000 2003 FAO data

production all categories 100.606 154.388 200.487 235.156 253.528

progression

production chicken meat 13.132

progression

exports chicken meat 482

progression

153% 130% 117% 126%

27.530 43.589 58.992 65.015

210% 158% 135% 149%

1.451 3.785 6.889 not available

301% 261% 182%

In 2003, 4 countries covered 2/3 of the worlds poultry production: USA (23%), China (19%), EU (12%) and Brazil (11%). 4 countries cover 90% of the words poultry meat exports: USA (36%), Brazil (31%), EU (15%), and Thailand (8%). To meet world wide demand, exporters engage in an intensive trade war on an extremely competitive market. Brazil and Thailand manage to snap larger shares of the market thanks to their lower production costs. Major importers are Russia (20% of world imports), Near and Middle East (15%), EU (12%), Japan (9%), China (8%). The EU is loosing market shares on all export markets, except for sub-Saharan Africa, which absorbs about 25% of European exports (3).

Position of the EU During the CAP reform of 1992, cereal prices came down, and so did prices for chicken feed, the
most important element of poultry production costs. Since then, European exports have grown 150%. Following the implementation of the Agricultural Agreement of the World Trade Organization (WTO),subsidies for poultry exports have declined.Only 25% of exported quantities are subsidized, i.e. deep frozen whole chicken exported to the Near and Middle East. But lower feed prices triggered a fall of export costs to West Africa of 25% (4).

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Position of Africa Sub-Saharan Africa covers only about 1,5% of the worlds chicken production (FAO 2003).Its role on
international poultry markets is insignificant: only South Africa is developing exports of whole or cut-up chicken, mainly for neighbour states (Tanzania!) However,Central and West Africa import rising quantities of poultry from the EU,mostly deep frozen chicken parts.

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Situation in African countries

In the majority of developing countries poultry breeding,as an activity of poor family farms,in rural or urban areas, is a vital element, when it comes to promote family farms, to create jobs and to enhance food security (5). Now, in Africa, poultry imports keep growing since 1999 at a rate of 20% a year, threatening local productions in their existence. This promising African market is invaded by multinational groups, who control fully integrated industrial chains (breeding processing-marketing). Among those, European companies, which increase their production, relocate it in Brazil or Thailand, to reduce costs and prices. The logic of lowest possible costs is the dominating rule. African countries have to open their markets for imports of farm products, and they have few possibilities to protect their local producers. Result: imports of frozen chicken cuts, which the European consumer does not want, virtually explode. These products are thrown on African markets at knockdown prices, causing the overall price level to decline sharply. The majority of local producers can no longer sell their products with a profit. Their poverty ends up in malnutrition and hunger. Many abandon their farm, or breeding facilities, and move into towns, where they increase the number of those suffering from urban misery. Moreover, marketing conditions of frozen chicken cuts do not allow for safe conservation: salmonellae and other bacteria quickly invade products offered for consumption.

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Poultry farming in Africa

In Africa, as in many other developing countries, we find three different kinds of poultry farms: the traditional hen house, improved small poultry farms, and semi-industrial poultry farming. Each sector has its strong and weaker sides. The traditional hen house,which still covers about 70% of the production,is usually a womens business. Chicken breeding often is a complement to other farming activities of the family. Chicken meat is an additional protein supply in the daily diet,but,for a number of cultural practices,

Chicken Exports: Europe plucks Africa!

Europe increased exports of cut-up chicken,which account for 65% of export volumes.The European consumer prefers chicken breasts and to a lesser degree, chicken legs. Other minor parts (wings, necks, carcass, and rumps) are either processed into pet food, or deep frozen, and exported to West African markets.

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C H I C KE N E XPO RTS: E U R O P E P LU C KS AF R I C A!

fowl is part of a dowry, or is used in funerals. Moreover, traditional chicken breeding is a walking savings accountor a feathered credit card,which generates additional vital income,when it comes to cover health costs or childrens school fees. Production costs are very low: only complementary feed is needed as chicken roam freely and eat what they can find. Local chicken varieties are appreciated by consumers, who usually live in the producers neighbourhood: he or she would attach the village chicken or bike chicken to a bicycle and sell them on the local market. So much for the positive elements; there are disadvantages as well: deficient management: cash flows are not properly mastered. Marketing is hardly developed: the areas are too small and growing demand in towns cannot be met. Support from public authorities: it does not exist for this form of poultry breeding.
Improved small poultry farms are generally promoted by local or international development organ-

izations as a means to fight against poverty. These farms, in rural areas or in urban suburbs, give an opportunity to young people, women, small farmers, poor urban citizens, often grouped in cooperatives, or else, to retired people who want to invest their savings, to launch their own business. With a few hundred birds per unit, this form of poultry farming requires only reasonable funding. Production as well as income is higher than in traditional breeding farms. There are no negative impacts on the environment, nor on the quality of the chicken produced (improved local varieties, feeds and health conditions are under control). Although improved poultry farming may cover a large part of urban demand,a number of restraints confine this activity to a marginal role. One problem is financing: hardly any support from state authorities, bank credits are out of reach.Another difficulty concerns insufficient processing equipments and marketing facilities, especially in rural areas.
Semi-industrial poultry farming has been developing above all in South Africa, in Egypt and. to a

lesser extent, in Morocco and Algeria. More recently it also appeared in other states of West Africa (Ivory Coast, Cameroon, and Senegal) close to urban centres, where demand is high. Quantities produces are obviously higher than in both preceding forms of farming (in Senegal it covers 4o% of the overall domestic production). A great number of jobs are created,directly and indirectly: hatcheries, industrial incubators, feed production units, breeding farms, slaughter houses etc. This sector,however,has to rely on foreign companies to import improved varieties,feeds and expensive medicines; this dependence is one of the sectors weaknesses. Furthermore, semi-industrial poultry farming requires important funds, in reach only of businessmen, big traders, state officials, or sometimes, smaller businessmen who are lucky enough to receive state aid. Lack of professional know-how is frequent; it hampers proper management of intensive farming. Problems of energy supplies often occur and marketing circles often fail. Finally, risks of environmental hazards certainly do exist, just as the danger of producing poor quality chicken, which are so familiar to Europeans. In West and Central Africa, no country is able to produce enough poultry to be self- sufficient. The development of this sector is therefore an important challenge. However, despite difficulties and until now, the activity has been a profitable one in all three poultry farming sectors. Starting in the mid-nineties the massive imports of frozen chicken became a real catastrophe for

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Cameroon in the front line!

I started breeding in 1993, when I learned that chicken meat is essential for celebrations and that there was a high demand for broilers on the market. Customers came to buy them at the farm, and I had no problem to sell the rest on the market. At the beginning of 1999, I noticed that for the big celebrations, the organizers no longer passed their orders to us And they still served chicken to their guests. Thats when I learned about imported chicken. Very soon I had to watch,as frozen chicken invaded my village. Mr. Jean Wakap, farmer in Cameroon, testimony received by SAILD.
The impact of massive imports of frozen chicken into Cameroon, where more than 2/3 of the population depend on breeding and/or farming, has been analysed in depth by two local associations working together: Service dAppui aux Initiatives de Dveloppement (SAILD) and Association citoyenne pour la Dfense des Intrts collectifs (ACDIC) (6). The data quoted hereafter stem from their study (7).

It all began in 1997. The first chicken imports started in 1995, but in 1999 they really began to soar. In 1966
Cameroon imported 978 tons of frozen chicken; in 2003, 22.154 tons, which means an annual average progression of roughly 300%. Theoretically chicken imports to Cameroon need to be authorized for well defined quantities (quotas). Imported volumes, however, systematically and largely exceed quotas as authorized by the authorities.According to the SAILD/ACIDIC study, for every 100 tons authorized, 300 tons are actually imported.
Cameroon: chicken imports
25 000
22 153,58

20 000 15 000
11 946,25 14 746,07 13 480,97 9 376,66 7 593,35

10 000 5 000 0
59,86 490,75 978,31

3 286,27

Source: DOUALA harbour administration (ACDIC-SAILD study)

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Chicken Exports: Europe plucks Africa!

farmers, womens associations and investors who had a stake in this business. Industrial poultry farming was hit hardest; it had to reduce production sharply; traditional and improved farms are in jeopardy, their development, and even their survival are as well. Be they big, medium or small farmers, they all feel united by a common cause. Side by side they fight to defend and save their national productions, to safeguard food sovereignty and the development of their countries.

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These imports have a direct impact on local production.Between 1997 and 2000,as imports of frozen chicken rose from 3 300 to 13 500 tons, national poultry production decreased from 26 500 tons to 19 500 tons, a fall of 26%. In 2003, production fell another 40%, down to only 10 500 tons roughly. For Cameroons producers this is a financial catastrophe, the situation also generates health problems for the populations. Analyses of the Pasteur Institute in Yaound prove it. 200 probes of frozen imported chicken cuts have been taken by civil officers in 28 markets in 6 towns in Cameroon: 83, 5% of the probes do not match sanitary criteria; 15% are infested by salmonellae, which cause gastro-enteritis and food intoxications; 20% carry campylobacter, which can cause infectious enteritis.

Quick results After these studies SAILD and ACDIC launched a vast campaign to inform and mobilize
Cameroons population: international press conferences, audiovisual press reports, meetings in the region, seminars, information in foreign countries etc. A number of means have been used to pass the information, and to try to reverse the course of things in Cameroon, with the aim of helping local poultry farmers to resume production. A first decision to temporarily suspend imports has been taken in the 3rd quarter of 2004. It could be extended to several months. Production of 1 day chicks rose by 25% and frozen chicken can no longer be seen on market stalls. The citizens of Cameroon are on the lookout from now on: frozen chicken might well be the first case of a series that will shape the countrys future development.

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Senegal: chicken for 250 FCFA per kilo

Poverty is worsening in Senegal: 44% of a 10 million population are poor; 3/4 of them live in rural areas where hunger is a regular experience. Agriculture employs 70% of the active population; still, daily life means growing hardship for the great majority of farmers. The peanut and cotton crises, two major export commodities,and the fact that the government is no longer active in these two sectors, left rural populations in a state of misery. More and more the country has to rely on food imports: their value tripled between 1992 and 1999, from 80 to 250 billion FCFA (8), while the countrys foreign currency assets are dwindling. Developing a national food production is an important challenge, and poultry would be one of the major strategic sectors.

Increasing demand for poultry. Growing towns and weakening purchase power have increased consumption of poultry, which is cheaper than other meat. From 1990 to 1997 it rose from 1,5 kg to 2,5 kg per person and year.Development of local production would give Senegal an opportunity to create jobs and to reduce its dependence of food imports. Traditional family production cannot match rising urban demand because of inexistent support and insufficient infrastructures. Instead, semi-industrial farms developed around major towns (Dakar, Ziguinchor, Saint-Louis, Kaolak, Touba and This) with the help of private funds estimated at 30 billion FCFA (46 million ) during the last ten years. In 2000, this modernsector produced 8000 tons of poultry, on top of a traditional production of about 16 000 tons.

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Local poultry production Imports of poultry meat

14 000 12 000 10 000 8 000 6 000 4 000 2 000

1999

2000

2001

2002

2003

Despite of this potential, low priced import literally soared! A tenfold increase in 5 years,reaching 11 950 tons in 2003.

Comparing prices is a revealing exercise: the country chickenlocally produced in family farms costs between 1.500 and 2000 FCFA/kg (2,30 to 3 /kg) locally marketed chicken is bought at 1.250 FCFA/kg from producers(1,9 ) and sold at about 1,486 FCFA/kg (2,30 /kg) on the market place. imported chicken is landed at 250 FCFA/kg (0,38 ). After taxes and import margins, it is sold for less than 1000 FCFA/kg (1,50 /kg) on the market. The local commercial sector is more vulnerable and is the first to be hit by cases of bankruptcy. Producer organizations estimate that about 70% of commercial farms have disappeared (9),and with them, 1 500 to 2 000 jobs. Traditional poultry farming did also suffer, although the result is hardly visible: official statistics are scarce, and unsold chicken remain at the farm; the families concerned are loosing part of badly needed income. The case of Senegal is certainly not unique in West Africa. In Togo imports rose 410% between 1992 and 2003, whereas local production declined by 25% from 2000 to 2002 alone (10). In Ivory Coast, the quantity of imported frozen chicken and giblets rose from 2 152 tons in 2001 to 5 676 in 2002 and reached 15 400 tons in 2003, destroying more than 15 000 jobs in the local poultry sector (11).

To protect the sector is difficult Customs tariffs on cut-up chicken decreased from 55% in 1998 to 20% in 2002.Senegal
is still entitled, within WTO rules, to impose a 150% customs tax. But it does not use that right, as it is a member of the West African Economic and Monetary Union (UMEOA), and because of constraints imposed by plans for structural adjustments of the International Monetary Fund (IMF). Conflicting interests do exist in this area. On one side, some producers make a comfortable profit, selling frozen products,and of course,are opposed to any reduction of the flow of goods.On the other, associations of poultry breeding women, small farmers and the industrial sector, represented by the National Federation of Poultry Producers (FAFA), request stronger customs protection, combined with measures to support the development of the sector (credits, investments etc).

Chicken Exports: Europe plucks Africa!

From: Direction of forcasts and statistics and Directorate of cattle breeding Senegal.

10 000 jobs have been created (incubators, feed production, slaughtering etc) as well as a market for locally produced cereals,as the sector bought about 50% of corn crops needed by the country.(57 000 tons of corn in 2002).These modern farms however generate problems of product quality, environment hazards and working conditions.

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The political context in African countries

The European Union had been able, during 40 years, to develop its agriculture, protecting it from imports coming from more competitivecountries.For a number of reasons,African countries have no possibility to do the same.

Structural adjustment plans. Room for manoeuvre in agricultural or trade policy had been strongly reduced since the
80s. The decline of commodity prices on world markets, combined with failing macro-economic policies and budgetary laxity,caused the decline of the economic situation in West African countries. Their exterior debt rose sharply. The IMF and the World Bank (WB) imposed the implementation of structural adjustment plans as a precondition for loans with preferential rates and debt reducing measures. The recipe was the same everywhere: adaptation to the rules of market economy, in other words, economic and financial liberalization and growth. In fact, African countries have been forced to lower their customs barriers, to reduce aid to agriculture, to abolish monitoring of prices, or to promote exports of some goods which enjoyed a comparative advantage. After severe criticism about the socially and politically disastrous consequences of such plans, the IMF and WB say that the fight against poverty is now at the centre of their mission, and that policies must be adapted to specific contexts. Each country must now design its own national strategy to reduce poverty. These are certainly praiseworthy intentions, but those nationalstrategies, under the decisive influence of such institutions, will hardly do anything else but follow the adjustment plans. Anyway, an increase of protection at the borders is not on the agenda.

Regional integration: UEMOA as an example. Imitating the EU, several adjacent countries have engaged in cooperation policies,notably in the commercial field,to take advantage of complementarities,to enlarge the scale of their economy and to create bigger, more attractive markets. In West and Central Africa, regional cooperation was facilitated by the existing common currency, the FCFA, stemming from colonial times (12). The creation of UEMOA in 1994 (Benin, Burkina Faso, Ivory Coast, Guinea Bissau, Mali, Niger, Senegal, Togo) promoted convergence of economic policies through the creation of a common market, based on freedom of movement for people, goods, services and capital. UEMOA is expected to improve competitiveness of economic and financial activities. It is a follow-up of efforts to promote economic integration, made for years by several countries of West as well as Central Africa. In 1975 already, the Community of West African States ( CEDEAO) formed a group of the present 8 members of UEMOA plus Cape Verde Islands, Gambia, Guinea, Liberia, Nigeria and Sierra Leone. Economic integration in all fields of activity (including agriculture), did not succeed, really; and is even less advanced today than it is for UEMOA. It is making faster progress, though, as an economic partnership agreement is negotiated with the EU.

Customs duties within the UEMOA One of the important achievements of UEMOA is the creation of a customs union,
with a Common External Tariff consisting of 4 different rates of customs duties:

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Rates rise with the degree of processing of the product, in logic of protecting the national processing industry.Classification of goods in one or the other of the above categories is not always clear,though, especially not for farm products.Milk powder for instance,falls in the first category,which allows for imports competing with national productions. The 20% rate, applied to frozen poultry cuts (wings, rumps, legs) imported from the EU, is to low, as it allows these products to be marketed at 1/3 the price of locally produced chicken.

And WTO? The Agricultural Agreement of WTO entered into force on 1 July 1995.Its implementation was spread
over a period of 6 years for developed countries and 10 years for developing countries.Renegotiation started on 1 January 2000. It intends to bring some discipline into international trade with farm products, limiting the use of agricultural policy instruments with negative or distorting effects on the world market. Three sectors are covered: access to markets (imports) national aid to agriculture and export competition (export subsidies). Market access covers farm product imports into third countries. Border protection measures (13) are replaced by fixed customs duties, which are then liable to reductions. Developed countries have reduced their duties by 36%; developing countries by 24%; Least Developed Countries (LDC) (14) are exempted from reductions. On the other hand, national markets must offer minimum openings equivalent to 5% of the product consumption. When prices of imported goods fall sharply, and imports threaten national production, a country may rely on special safeguard clauses,which allow it to temporarily protect its market with additional duties of 30%. However, developing countries are free to determine the level of their customs duties (so called ceiling rates). The majority of countries preferred this option and may not use the special safeguard clause: it is estimated that they would choose rates high enough to protect their markets efficiently. Some of Africas ceiling rates:

Benin: 79% Burkina Faso: 150% Cameroon: 230% Ivory Coast: 200% Nigeria: 150% Senegal: 150% Togo: 80% These rates do not apply, as structural adjustment plans impose a decrease of trade barriers. On top of these customs barriers, some countries adopt various measures to avoid massive imports into their national markets: anti-dumping measures for instance. Cameroon claims that dumping exists when the selling price of imported goods is lower than the price normally asked for in the country of origin (law 98/012). The country concerned, however, has the onus of proof, and must notify WTO before it reverts to anti-dumping legislation; in such a case, rates must not exceed the price difference found.

Chicken Exports: Europe plucks Africa!

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0% on corporate assets 5% on staples, raw materials, equipments, farm inputs, 10% on semi finished goods 20% on finished consumer goods; this rate applies to poultry cuts

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Safeguard measures may be considered if a product is imported in such quantities as to cause, or to threaten to cause, important damage to national production of the same product. In such a case, Cameroon resorts to raising its duties for a maximum of 200 days (law 98/012). Such action, including the law, must also be notified to WTO. In the case of poultry, the use of anti-dumping measures rarely occurs. Poultry meat is not subsidized in Europe. Strictly speaking, there is no unfair competition. For the EU, it rather is an escape market.As a consequence, the only possible responses are those which are limited in time. Countries choose to protect themselves. Nonetheless, some countries have chosen to protect their local production, sharply raising their customs duties, even banning poultry imports. In 2004, Nigeria and Mali simply have prohibited imports of European frozen chicken into their territories. Burkina Faso had done the same in 2002. These three countries deliberately decided to disregard WTO rules. Theoretically, the EU would be entitled to launch a procedure before the WTO dispute settlement body (DSB), but is unlikely that it will do so, for several reasons: Should the DSB decide in its favour, the EU would be entitled to use commercial retaliation, for instance, raise duties on imports from Mali, Burkina Faso, or Nigeria. Exports from these countries are too insignificant to do so. Costs for such actions are high, compared to modest advantages, or even possible damages. Exports of poultry cuts cause enormous damage in receiving markets, but they are only a drop in the ocean of European economy. It would be difficult for the EU to provide political justification for such a procedure against these countries, which are among the poorest of the world.

Opinions of other operators in Africa: consumers and importers.

It is the price of poultry meat which makes it a hit among consumers. The economic crisis, devaluation of the FCFA and privatization has eroded households purchase power. Imported meat, though less tasty, which can be bought by weight according to the needs and purse, is an opportunity. Local poultry, traditional chicken or improved varieties, is sold alive, and is often out of reach, except for outstanding occasions. Slaughtering and plucking comes on top. Easy cooking is an additional advantage; snobbishness drives some customers to buy European chicken only. However, the quality of this meat, which is often circulated in disregard of the refrigeration chain, poses a serious problem. African importers of frozen meat claim that competitiveness is the master trump.They do not appreciate rising duties, and fight to keep them on low levels. They hardly ever share efforts to protect or develop local production.

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European poultry farming: export at any price! Within Europes poultry industry, exports became the major goal
(mainly chicken and turkey) in the 1970s, when production as well as exports rocketed. France became the first producer in Europe, raising production from 238 000 tons in 1980 to more than 2 million tons in 2001. It covers almost 25% of Europes production. France also is the first exporter to third (outside EU) countries and the second (after the Netherlands) for exports to other Eu members. With a total production of 9 million tons today, the EU tries to keep its leading role in international trade, doubling its chicken exports between 1990 and 2001, from about 400 000 tons to more than 1 million tons. Exports of frozen chicken and turkey cuts kept rising and represent about 2/3 of total exports today. European production and exports are on the decline though. France, in particular, is affected by this development.

Intensive poultry industry in France and Europe Throughout the world,poultry production and consumption reach
about 25 million tons, which is a source of fierce competition between Europe, the USA, Brazil and Thailand. This logic of cut throat competition pushed the French and European poultry farmers to intensify their industry. The production sites, mainly concentrated in Brittany ( Morbihan, Ctes dArmor, Finistre, Ille et Vilaine) and Loire country, have an important impact on the environment (nitrate pollution) and the economy of these regions (dependence on market fluctuations). Moreover, concentration of breeding sites in limited zones increases risks of spreading diseases like avian flu. In the Morbihan region, the top department for poultry breeding (187 000 tons of Chicken, 156 000 tons of turkey and 12 540 tons of ducks), the number of breeders fell from 1 724 in 1988 to 1 550 in 1997, while the average size of breeding units rose considerably (from 1 689 m2 in 1988-1989 to 2 030 m2 in 1999-2000), as did production figures (chicken: 126 000 tons in 1985; 187 000 tons in 1995) In Belgium the supply rate of standard meat chicken (production + imports exports) is high. It turns around 170% making the Belgo-Luxembourg Economic Union (UEBL), all things considered, one of the greatest exporters of the EU. Belgium exports more or less 50% of its production of standard meat chicken, 2/3 of it to EU countries. (Holland about 50%, France about 25%, the rest to Germany and United Kingdom). Belgian exports mainly come from farms in the North of the country. Imports into the UEBL mostly come from the same countries (France and Holland). In the last few years though,poultry imports from third countries (Brazil and Thailand) have been rising,as import duties on these products (marinated and uncooked preparations) are lower and production costs are much lower as well. As an example, the UEBL increased its imports from third countries by 1/3 in 2001 compared to 2000. Opening markets to Asia will not go without problems, notably because of relocations, which are certainly to come.

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The poultry sector in France and in Europe

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Consequences of this frantic competition Poultry breeding in Europe is deeply integrated in ever more concentrated food processing conglomerates. Despite intensive breeding (average of 25 units per m2) and higher productivity, gross annual revenues continue to decline (-31, 8% per m2 between 1981 and 2000) In the food processing sector of the industry (slaughter houses, for example) working conditions are difficult, jobs are insecure and badly paid. The economic situation forces many sites to close shop while others are relocated in Brazil, Thailand or China. These countries do better on the world markets as they offer lower production costs. The bigger companies obtain up to 60% of their turnover in these countries. Meanwhile, European imports grew at a very fast rate: 330 000 tons in 1999, more than 700 000 tons in 2001. In 2003, chicken meat imports from third countries covered 10% of consumption in Europe. Two countries alone accounted for 88% of these imports: Brazil (55%) and Thailand (33%).

Agribusiness and relocations. Low cost imports,coming from relocated production sites,worsen the crisis of the French
poultry sector. Insisting on the higher competitiveness of their production sites abroad, some agribusiness groups ask their breeders to revise their annual contracts downwards, while breeders investment needs keep growing and their prices keep falling Moreover,multinational groups sometimes take advantage of European export subsidies,when their exports go to non EU countries, to the Middle East for instance.

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Newcomers in international trade

When it comes to dealing with international trade, of farming products in particular, it is tempting to consider developing countries as one group. They differ though, in many aspects, and these differences exist in the poultry sector as well. The poorest countries, in Africa above all, still have traditional productions; they suffer from outside competition caused by imported goods. It is not the case for so called emerging countries, whose production structures are radically different. In Brazil, China or Thailand, the development of agriculture can be compared with Europes development during the 1960s.Poultry production growth is very high; several factors help to explain this.

Urban demand progresses. The development of industry and service sectors has triggered the expansion of urban areas
and the emergence of well paid middle class.Rising standards of living change eating habits,the proportion of meat in diets increases. Poultry meat is the cheapest ( faster growth, faster transformation of feeds into meat) and this meat becomes the first choice of consumers. It is considered to be a low fat meat,which confers a favourable image.Urban demand stimulates production and,in the case of Brazil and Thailand, promotes exports as well

Using modern farming techniques. In emerging countries traditional poultry farming and family farms coexist with
highly intensive off ground production sites, similar to those in Europe or the USA. Such production units are imported, ready to start and integrated as in developed countries. This certainly is the case in China and Brazil. Negative consequences of intensive production have been highlighted many times: Besides pollution problems linked to quantities of droppings, the concentration of fast grow-

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Competitive production costs In 1999 already, a study of the French Aviculture Institute demonstrated that production
costs of a Brazilian chicken ( leaving the breeding station) was 45% lower than the costs of a French chicken. Such differences, which have been confirmed meanwhile, show the advantages of Brazils poultry breeding sector: cheap corn and soybean supplies; low labour costs; lax environment protection rules; and a weakening Real, Brazils currency, which boosts competitiveness as it lost 38% of its value during the first 9 months of 2002. Today production costs for one kilo of standard French chicken are 70% higher than in Brazil (1, 25 /kg in France against 0, 74 /kg in Brazil).(16)

Very liberal countries Brazil and Thailand are more and more present on world markets of farm products, especially with chicken meat. During trade negotiations within WTO, they jointly defend (within the G20 group) very liberal positions, asking for a faster opening of markets and lower supports for farm products in developed countries. These positions differ from those of African countries, who adopt a rather defensive attitude, and who wish to protect their agriculture from low priced imports. Brazil and Thailand actually sell these types of products on African markets: frozen chicken cuts from Brazil and broken rice from Thailand. The development of chicken meat production in Brazil was spectacular, rising from 200 000 tons at the beginning of the 70s to 1, 2 million tons in the 80s and to more than 4 million tons today. 14% of this production is exported. Production developed mainly in the South of the country, in a region of small family farms, where battery breeding allows to generate higher income without increasing surfaces. Chicken are fed with corn and soya from local production (30% of Brazils corn is fed to chicken).The sector is highly integrated, 5 companies share the market.(17) In 1999 the French company Doux, the first in Europe and 3rd in the world, set foot in Brazil, buying FrangoSul.In 2002 its production in Brazil accounted for about half of the Doux groups turnover. Of its total staff of 15 000, 7000 work in Brazil, 8 000 in Europe.

Chicken Exports: Europe plucks Africa!

ing birds favours the outbreak and propagation of infectious diseases. In Thailand, which exports some 90% of its poultry production,and where the majority of poultry farms are concentrated in the biggest agribusiness companies, the outbreak of the avian flu was a terrible blow for the national economy. To avoid the disease to spread further, authorities imposed the construction of closed breeding facilities. Such investments are out of reach for thousands of small family farms, working side by side with giant groups.A great number had to give up farming (15).

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The European context: Agreements for an economic partnership

Africa, the Caribbean and the Pacific, granting privileged trade relations to the latter: products from ACP countries were allowed to enter European territory without limitations or customs duties,except for sensitivefarm products (European production, or products under CAP rules, as some fruit and vegetables, sugar, bananas and beef). These trade preferences have been confirmed during later renewals of the Lom Convention. The Cotonou Agreement, signed in June 2000 after 18 months of negotiations, radically changes EU-ACP trade relations. As a matter of fact, the Lom Convention disregarded two major WTO principles: the principal of reciprocity: Normally the EU is not allowed to grant trade preferences the principal of the most favoured nation: normally the EU can grant trade preferences only to ACP countries among developing countries. In order to restore compatibility between EU-ACP relations and WTO rules, Economic Partnership Agreements (EPA) are to be adopted about 2008.

Trade relations EU-ACP In 1975 the Lom convention set the frame for cooperation between the EU and countries of

Economic Partnership Agreements These agreements stipulate the creation of free trade zones (covering a large part
of trade currents 18) between the EU and effective regional common markets among groups of ACP countries. These EPAs shall be organized for 1 January 2008 at the latest. There is no obligation for ACP countries to join the system; but if the do not, they will be submitted to the general rules, which the EU applies to other developing countries, and they would lose a number of commercial advantages. What are the consequences for ACP countries? EPAs are the bridge for reciprocity between ACP and EU For ACP countries, which already enjoy wide access to European markets, the benefits are minimal. On the contrary, they would be forced to open their markets for European products. In the farming sector, already suffering from competition of European products (from farms with greater productivity and supported by CAP) consequences would be dramatic, if no protective measures were taken. Moreover, access to European markets means that more and more public health requirements must be met, which ACP countries are hardly able to cope with. Finally, ACP countries are facing a two-fold negotiation: create regional common markets among themselves first, and then launch free trade zones with the EU. This would be the time to negotiate exceptions to free trade rules. The timetable The first year of these negotiations, which started in September 2002, has been dedicated to discussions between EU and APC countries. The EU pleaded in favour of the greatest possible compatibil-

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In September 2003, the negotiations between EU and ACP regions were launched. The agenda of these negotiations have been established for several regions, West Africa and Central Africa, for instance.A precise timetable for these negotiations has been set up.They are to be concluded in 2007 and should be applicable as of 1 January 2008.A transition period granted to ACP countries, to allow for progressive liberalization, could be extended until 2020.

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A campaign with many facets

The debate on massive imports of European chicken to Africa touches on many elements.One cannot avoid considering ethical problems as well, regarding the directions for economic development of African regions, as well as relations between NGOs, in the North and in the South.

An ethical problem? Exports of frozen products to countries, which are known to lack in infrastructures needed for a
competitive local production, give reason for concern. Sending cast-offs, which the European consumer does not want, to third countries triggers highly ethical interrogations: the companies concerned will be held responsible for their practice and professional ethics. If they do not react, consumer-citizens will, no doubt, be entitled to launch campaigns to have them face the problem.

Protectionists? Far from being protectionist, to protect national borders in order to lay the foundations for development, is a basic right and an adequate policy. Has not the EU, for more than 40 years, protected its agriculture against imports from more competitive countries? This attitude helped to develop trade within the community as well as the European agriculture. Africa must be allowed to follow the same road, to choose its own rhythm and priorities. This is the goal and the reason why regional integration in Africa must be promoted. It will generate regional agreements, which will favour trade within one given area.

North and South? The present campaign came into being because civil organizations in African society called for it. It
is a concrete example of a dialogue, of exchange and encounters between North and South. Opinions and analyses in this document do not always correspond to priorities chosen by African organizations,and criticism may choose different angles.Our exchange of ideas will therefore be more fertile, our common mobilization more efficient. The global character of the question must be stressed, though. Changes of the CAP in Europe will have impacts in countries of the South; multilateral negotiations are the only road towards international trade regulations, which could bring greater fairness and justice. European organizations take their part in this campaign, operating in the North, putting pressure on governments and institutions dominated by the richer countries. Similarly, organizations of civil society in Africa call upon their own authorities to have them consider this question, and to put an end to a situation which generates growing poverty. This two-fold action, in the North and in the South, must aim at common objectives. The problem of frozen chicken imports provides both African and European civil organizations with an opportunity for joint action. And that is not the least goal in such a campaign.

Chicken Exports: Europe plucks Africa!

ity between EPAs and WTO rules. The ACP countries underlined the need to take into account the costs for adjusting their economies.

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What about farmers in the North? Poultry farmers and the staff of chicken processing companies live through a major
crisis these days. They have to face similar questions as those African farmers are confronted with. European farmers are themselves affected by high geared liberalization. Relocations reduce employment; intensive production methods damage the environment; overproduction is the reason for dumping practices in countries of the South. Are the problems of the North destined to be exported to the South as well? Essential questions must be asked in both hemispheres of the globe: how to manage production outputs to avoid selling surpluses on other markets? How to secure sustainable production while respecting people and their environment?

And about consumers in the South Frozen chicken is a source of food for the poor. The trouble is that opening markets
for massive imports will create greater poverty for greater numbers, not only in the poultry sector, but upstream and downstream as well. Imports of chicken cuts are symptomatic of the need to regulate international trade in favour of the poorest countries, but also to respect the right of people to choose what they want to eat. This right and the right to choose their own development are part of their basic freedoms. Food sovereignty is one element that helps to rid oneself of imposed dependence. Farmers from North and South have a common interest to unite and to preserve a model of agriculture which respects man, which is based on sustainable family farms, and which is able to provide food and development to all. These goals are defended by farmers organizations and NGOs in the North and in the South,notably in the Dakar Declaration of May 2003 (19) and the European Platform on food sovereignty.

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Chicken Connexion,le poulet africain touff par lEurope,agrobusiness,dumping,souverainet alimentaire, GRESEA. Impact of import surges, country case study results Senegal, FAO, avril 2004, CCP:ME 04/2. Impact des importations de volailles en Afrique de l'Ouest, enqute ralise par le rseau Syfia International pour le CCFD, avril 2004. La souverainet alimentaire lpreuve de la mondialisation, Bndicte Hermelin, Cahier de la Solidarit, CRID, juin 2004. African poultry farming facing imports of deep frozen chicken, Farming dynamics n4, may 2004, SOS Faim. Les importations de poulets de chair au Togo en provenance de lUnion europenne, De Coster et Tchalla, aot 2004. Sngal,coup de froid sur la basse-cour,Faim et dveloppement magazine - CCFD,n197,octobre 2004. Stop dumping, promote food security, Germanwatch, 2004.

Notes
1 2 3 4 5 6 7 8 9 OFIVAL, 2004 Le march des produits avicoles en 2003. FAO stat, 2003. OFIVAL, 2004 Le march des produits avicoles en 2003. Agritrade, Quoi de neuf? n30, septembre 2004. Food security: exists when any individual has access anytime, anywhere to healthy and sufficient food to cover his/her needs, taking into account eating habits. To know more about SAILD: www.saild.org; or on ACDIC: www.acdic.org Limportation massive de poulet congel au Cameroun: Etat des lieux, enjeux et alternatives. SAILD/ACDIC, avril 2004, disponible sur: http://www.aprodev.net/trade/Files/JAP/Poulet_congele.doc Devaluation of the FCFA (1994-1995) reduces this increase in foreign currency. Effets pervers de l'importation de poulets congels en Afrique le cas du Sngal, Momar NDAO, ASCOSEN.

10 Les importations de poulets de chair au Togo en provenance de lUnion europenne, De Coster Tchalla, aot 2004. 11 Evaluation IPRAVI. 12 The CFA Frank, tied to the Euro, is the currency in two sub-regions: UEMOA with Benin, Burkina Faso, Ivory Coast, Guinea Bissau, Mali, Niger, Senegal and Togo) and CEMAC: Cameroon, Centrafrique, Congo, Gabon, Equatorial Guinea, Chad). 13 Quotas or import licences, various taxes. 14 Among them many African countries, like Senegal, Mali, Burkina Faso, Benin, Togo, but not Cameroon nor Ivory coast. 15 Isabelle Delforge, En Thalande, les sacrifis de la grippe aviaire, Le Monde Diplomatique, juillet 2004. 16 Itavi, 2002. 17 Mmo ProsPER Cne Sud, CIRAD. 18 Article XXIV du GATT. 19 Available on: http://www.roppa-ao.org

Chicken Exports: Europe plucks Africa!

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