Poultry In Zambia - AgriProFocus
Investors GuidePoultry in Zambia
Investors Guide on Poultry in ZambiaForewordAs a strategy to contribute toimproved investment and competitiveness of the Zambian poultryindustry, the Embassy of the Kingdom of the Netherlands in Hararein conjunction with AgriProFocusZambia and the Poultry Association of Zambia commissioneda market study on investmentopportunities to inform the Dutchbusinesses that have interest ininvesting in the Zambian poultryindustry.In the poultry sector lie differentinvestment opportunities. Thisguide highlights these opportunities, the costs of investments,expected returns and the Poultry2Companies seeking the differentinvestment opportunities.Notwithstanding lack of data onZambia’s poultry imports andexports, the market study established that the Zambia poultryhas been growing steadily for thepast five years averaging around 8% and 20% for broilers and layersannual production respectively.The rapid poultry productionincrease is attributed to a number of factors such as nationalpopulation increase, disposableincome rise buoyed by growingmiddle income class, investmentin poultry breeding, productionand processing as well as incre-asing poultry feed ingredient ofmaize and soybeans.For more information, you canvisit ormation/doing-business-in-zambia.html .The full market study on theInvestment Opportunities in thePoultry Sector in Zambia can beaccessed on the AgriProFocusZambia website: www.agriprofocus.com/zambia
Investors Guide on Poultry in ZambiaOverview ZambiaZambia has had a long period ofpolitical stability. Independentsince 1964, Zambia has experienced five successful multipartyelections since the return tomultiparty politics in 1991. Withstrong growth in the last decadethe country has reached lowermiddle income status1.Investor confidence has been highand Zambia’s economy has beengrowing rapidly due to expansionof copper mining industry, government investment in infrastructure, and expanding private sectorinvestment in construction andservices and agricultural diversification. Zambia’s GDP grew atan average annual rate of 6.4%between 2010 and 2014, whichwas more than the average over1Worldbank.orgall growth rate of Sub-SaharanAfrica. However, in 2015 it felt thepinch of reduced export earnings,due to large drops in commodityprices and slowdown of Chinese economy, resulting in a GDPgrowth rate of 5%. This is thoughtto go back to 6-7% growth whencommodity prices start to stabilize.Even though agriculture only accounts for 8.6% of total GDP, theagricultural sector employs 60%of total labour force. Of the totalagricultural sector 48% is relatedto the livestock.Government Type:RepublicPopulation:15.47 millionCapital: LusakaLanguage: EnglishCurrency:Zambian Kwacha (1US ZK11.4)Average GDP growth rate:6.4% (2010-2014)GDP per capita (PPP): 4.300Population below poverty line:62%Arable land:31,7%Member of:SADC and COMESAMain industries:Mining, agriculture,tourism and manufacturingAgricultural Products:Maize, Cotton, Wheat,Soya – Livestock: cattle, pigs, goats andpoultry3
Investors Guide on Poultry in ZambiaThe Poultry Sub-SectorIn 2005/07 poultry, after beefis the most consumed meat inAfrica, at 2.9 million tonnes. By2050 consumption of both meatsis estimated to increase. withthe total market size for poultryreaching 11.8 million tonnes. In2050, the egg market is estimatedat 5.9 million tonnes. Consumption of all livestock products isanticipated to grow rapidly inthe coming decades, with annualgrowth rates estimated at 3.3percent for poultry. Out of thefive African regions, the SouthernAfrica (SADC) market is expectedto remain to have the largest forpoultry market share at 29.8%.For eggs, SADC market share isexpected to be at 19%, just afterWestern Africa2. Large potentialthus for the poultry sector, alsofor Zambia.The Poultry Association of Zambia(PAZ) 2014 annual report revealsthat the poultry sector providesdirect and indirect employmentto 80,000 people with 50,000 inpermanent jobs and 30,000 seasonal employees. This report further records that poultry production in 2014 reached over 1 billioneggs and 73 million broilers. Thepoultry industry has been consistently growing since 2000 atannual rates of 8% and 10% forbroilers and layers respectively.This phenomenal growth is attributed to the demand and supplyside factors. The demand factorsinclude; increasing human population, rising disposable incomeconsolidated by the expandingmiddle income class, and rapidurbanization with higher tastefor chicken meat. The supplyside factors are the tremendousadvances in poultry breeding,2Investing in AfricanLivestock: business opportunities2030-2050 (FAO, March 2013)4production and processingpropelled by the introduction ofmodern technology. The poultryindustry anchors on the small andmedium enterprises that operate60% of poultry production farms.However, these small farmers lackinvestments to increase and modernize their production as wellas value addition.BROILERSAverage Broiler live weightAverage Broiler Dressed weightConsumption per capital% of live Broilers soldTotal Broiler Production in 2015Market price of broilersMarket price for frozen chickensAverage Cost of productionEstimated availability for export1.8 kg1.2 kg4.8kg/year80%79,000,000USD 4 - 4.7/birdUSD 2.3 - 2.6/kgUSD 3.4/bird18,500,00/kgEGGSEgg consumption/capita/yearEstimated total demandTotal Annual ProductionEstimated availability for exportTotal Annual Consumption66 00FEEDTotal National Poultry Feed ProductionConsumption by BroilersConsumption by layersCost of Broiler FeedCost of Layer FeedCost of MaizeCost of Soybeans320,000 MT259,000 MT162,000 MTUSD 459/tUSD 405/tUSD 180/tUSD 310/t
Investors Guide on Poultry in ZambiaValue Chain ActorsInput suppliersThe major supplier of inputs isLivestock Services, which runsa one-stop-shop for inputs andfeed. It also offers training. Mostsuppliers source their importsfrom South Africa. Zambia maintains a ban on imports of parentstock. This has created a captivemarket for the 8 locally established largest breeding companies.Zambia allows importation offeed ingredients and premixes.Corporate firmsThis group is dominated by ahandful of integrated companiesnamely; Zambeef (Novatek),Zamchick, Eureka chicken, Olympic Stock Feeds, Nam Feeds,Hybrid Poultry, Ross Breeders,Tiger Chicks, Copper Belt chickensand Golden Lay. They importtheir inputs from South Africa. Inrecent years, there has been minimal entry into this segment savenotable developments like thenewly created venture betweenZambeef and Rainbow of SouthAfrica. Many corporate companies are interested in further vertical integration of their poultrybusinesses. Next to expandingtheir production capacities (e.g.Feed production, broiler and eggproduction), they are interestedin investing in other activities likeproduction of day old chicks, andslaughtering and further processing of broilers.Medium/Small poultry farmersThere are about 1.1 million smalland medium poultry farmers inZambia and medium and 0.1 commercial farmers. Small and medium poultry farmers produce thebulk of the poultry meat and eggsin Zambia. Poultry is kept in simple, open houses. Manual feedingis employed. Simple water bowlsare used while heating is undertaken through wood or charcoal.Some small farms produce maizeand soy for stock feed. To reach the pace set by large scaleproducers, small scale farms mustoptimize their production interms of feed efficiency to lowerproduction costs. They can formproduction clusters to reap benefits accruing from scale. Small andmedium scale farms offer mostscope for improvement. They usesimple manual equipment, smallamounts of feed additives, drugsand vaccines and do purchasesmall amounts day-old chicks.These inputs are purchased fromlocal suppliers.Feed millersThere are seven major feedmillers in Zambia who produceabout 320,000 MT poultry feedper year. These feed millers are:NamFeeds, Choma Milling, Pembe Milling, Tiger Animal Feeds,Novatek (Zambeef), Nutrifeeds,Olympic Stock Feed. Most ofthese compound feed suppliershave their own poultry production facilities (like day-old chicks) aswell, except for Choma milling.5
Investors Guide on Poultry in ZambiaThe millers use maize and soybeans produced by local farmers(or their own farms) and premixes imported largely fromSouth Africa. Maize is producedby small scale and commercial farmers and but small scalefarmers produce about 80% ofthe country’s total yield. Forthe 2013/2014 farming season,around 3,350,600 MT of maizewas produced. Soybean is produced predominantly by commercial farmers who churn outabout 139,000 metric tonnes peryear. Zambia produces GMO-freemaize and GMO-free soybeans.In 2015, droughts have affectedthe harvest volumes. In response,the millers compete for maize andsoy.Wholesalers and importersof poultry house equipment/drugs and vaccinesImporters and wholesalers areZambeef Products Ltd, Copperbelt Chickens Ltd, Country ChoiceChicken, Crest Chicken, Eureka Chickens, Zamchick. Thesewholesalers do sell fresh slaughtered poultry carcasses, furtherprocessed poultry meat (likedrumsticks, chicken wings andchicken breast). Being member offully integrated companies theydo import most of the inputs,like slaughtering and processingequipment, poultry housingequipment, feed additives, poultry drugs and vaccines)Traders and retailersThe informal market is largely forsmall scale producers and involves sale of live chickens, unpackaged and ungraded eggs. Thismarket system is predominantlyfound in local markets and bythe roadside stalls in both urbanand rural areas. The sale of livebirds is still a significant channelfor broilers in Zambia taking upabout 30 % of broiler meat (MAL,2013). The second type of marketsystem is well developed, modernand dominated by a few but largeproducers that have the capacityto process their products. Themain channels for this market6system include retailers, hotelsand lodges.Table eggs in Zambia are soldthrough formal and informalmarkets. Formal markets comprise chain retail outlets such asShoprite, Spar, Pick n Pay, as wellas supermarkets like Melisa inLusaka. Informal markets includeopen markets, roadside sellingpoints, cross border selling pointssuch as Kasumbalesa border (DRCborder). Generally, table eggsare not graded accordingly eggweight and sold per kind (mostlyper egg tray of 30 eggs).Challenges in the ZambianPoultry SectorTo keep up with the growing demand for table eggs and poultrymeat the Zambian poultry sectorplayers are continuously investingin up-grading their productiontechnologies/systems to investin new production capacity. Tosecure the further developmentof the Zambian poultry industryattention should be paid to thefollowing challenges.High cost of production andfinancing: Zambia faces a power crisisthat is not likely to improveor even worsen on the shortterm. Therefore, there is astrong dependency on alternative energy sources High cost of labour (set minimum wage) High interest rates 15%Knowledge: Low level of extension services especially by governmentextension staff Marketing of poultry products is a big challenge especially for small scale farmersInput supply: Lack of inputs especially in rural districts (feeds and poultrydrugs) Low grade input materials Inconsistent raw materialsuppliesCompetition: Threat of cheap illegallyimported poultry productsentering the domestic market Chain stores mounting pressure on government to allowimport of frozen chickens IQF Competition from rival firmsfrom South Africa Competition from increasedpoultry imports to SouthAfrica e.g from USGovernment regulations andcontrol Disease control and testingcharges, uncontrolled localgovernment poultry levies Inadequate legislation toguide the growing industry’sconduct and development High taxation for companiesthat do not have investmentlicenses. An investment license can be obtained and thiswould lower tax liabilities andprovide import incentives. Ban by local district councilson backyard poultry rearing
Investors Guide on Poultry in ZambiaInvestment OpportunitiesPoultry Housing EquipmentIt is generally recognized bypoultry farmers that improvingthe poultry house climate is oneof the most critical issues, inorder to improve the productionefficiency. Installments of newtechnology to improve the livingconditions of birds is therefore anecessityThis will require investments insmall/medium scale feed manufacturing equipment (Approx. 1– 3 tons/hr.), ventilation systemsand climate control equipment,Non gas heating/brooding systems (solar heating), water supplysystems, including water treatment systems)Incentives schemesDutch companies selling equipment can use Atradius, the exportcredit insurance agency to increase the attractiveness of theiroffer. Atradius facilitates sales toparties that might not have all themoney required to pay upfrontfor required capital equipmentFeed Manufacturing EquipmentMore small and medium sizedpoultry farmers are going toproduce their own compoundfeed by using their own feedingredients, like maize, soya, sunflower, wheat etc. To produce optimal balanced compound feeds,they need high quality premixesand feed additives. Currentlymost of the premixes and otherfeed additives are imported.Hatching EquipmentWith the poultry industry growingand with the trend being observed that farmers start to organizethemselves more (e.g clusters,cooperatives) interest has increased in own hatching equipment.As mentioned poultry farms aregenerally small, therefor thecapacity that is being asked for isabout 10 – 20.000 day-old-chicks/wk.Poultry Drugs and VaccinesTo optimize the poultry production efficiency and to guaranteea healthy poultry production, theuse of high quality vaccines anddrugs is essential. Currently mostof the poultry drugs and vaccinesare importedPoultry expertiseTo meet the national demand ofpoultry products and to increasethe export to the neighboringcountries, the poultry sector hasto improve its efficiency. To achieve this, the Zambian poultry valuechain will need more professional,well trained poultry professionals.At this moment there is not agood professional poultry education infrastructure in Zambia.Currently 65% of the 1.1m poultryfarmers have limited access tospecific knowledge on poultry.Incentive schemesDutch training service providerscan use the Tailor Made Trainingfacility in conjunction with Zambian partners to offer customizedtraining to Zambian poultry sectormembers. TMT is a Dutch government funded instrument.7
Investors Guide on Poultry in ZambiaInvestmentincentives andregulations toconsiderZambia being a member of boththe Southern African Development Community (SADC) andCommon Markets for Eastern andSouthern Africa (COMESA) tradesunder these regional bodies offree trade area and promotion ofeconomic integration. In addition,an agreement was reached withthe East Africa Community (EAC)to collaborate with both COMESAand SADC to enhance economicintegration across these three regional economic groupings. Beinga member of the two regionaleconomic bodies, Zambia doesnot imposed tariff on poultryproducts either imported into thecountry or sold to other countries.government such as to promote,facilitate and enhance the participation of the private sectorin production, processing andmarketing of quality livestockproducts. However, the Ministerof Agriculture and Livestock hasthe power to impose import orexport bans whenever deemednecessary forth benefit of domestic producers and consumers. Thepoultry industry has been citedas an infant industry in Zambia,hence, protectionist tendencieshave been advanced by majorstakeholders that have seen thegovernment impose a ban onimportation of poultry productssuch as broiler meat and tableegg.Zambia maintains the followingagriculture incentives to spur sector investment and growth: Zero rating agricultureproducts and supplies whenexported Income Tax rate of 10% Reduced Customs Duty at 5%on pre- mixes, being vitaminadditives for animal feed Farm improvement allowanceat 100% on fencing, brick orstone wall and an allowanceof K10,000.00 for farm occupied by farm workers Property transfer tax rate onland sales of 5% Customs duty is not leviedon green houses and roseseedlingsZambia has signed bilateral tradeagreements with Angola and DRCongo. These agreements facilitate market access for Zambianproducts.The National Agricultural Policy(2004-2015) sets specific roles of8
Investors Guide on Poultry in ZambiaSources of furtherinformationExtension Services ProvidersMinistry of Agriculture andLivestock: The ministry hasdepartments for livestock (including poultry) and for veterinaryservices which are responsiblefor providing extension services to farmers. The ministry isunderstaffed and operates on atight budget which constrains itsprovision of extension services forthe vast and spread out farmingareas.Livestock Services Co-operativeSociety (LSCS): Livestock Servicesis primarily an input supplier. Inaddition, Livestock Services alsoconducts outside and on-farmtraining in poultry management.Chicks and Stock Feed producers:Hybrid Poultry, Tiger Feeds, National Milling, Pembe Milling andNovatek provide extension to theclients of their products.Training Providers MAL Agricultural Colleges(NRDC, ZCA- Monze and Mpika, Cooperative CollegeUniversity of ZambiaMulungushi UniversityFaith-Based Training Institutions ( e.g. Chipembi FarmCollege)Training and extension activitiesare offered by several institutes,organizations and corporatefarms. They do offer very short(1-2 days) training programs.Poultry industry - relatedinstitutionsZambia National Farmers Union(ZNFU): A farmer organizationwhich existed already beforeZambia’s independence in 1964.Its aim is to safeguard the interestof farmers. It provides farminginformation to farmers and advocates for better farming policies.It has commodity associations9
Investors Guide on Poultry in Zambiasuch as poultry (PAZ), dairy andcotton which focus on specificsub- sectors.Poultry Association of Zambia(PAZ): It was established in 2000and advocates for conducivepolicies for poultry farmers. Italso gathers critical poultry information e.g. prices and policieswhich are disseminated to poultryfarmers and co corporate companies.Transporters (road and rail line):Transportation of poultry inputsand products require efficientand reliable transport. Delivery ofpoultry feed due to its bulkinessrequires appropriate transport.Eggs, day- old chicks, vaccinesand drugs as well as dressedbroiler meat require refrigeratedtrucks to provide the right temperature during transportation.Import and Export Facilitators/RegulatorsZambia Development Agency (ZDA): It is the governmentagency which is responsible forinvestment promotion in Zambia.It provides information on investment opportunities available,incentives offered and scrutinizesforeign investment offersZambia Revenue Authority (ZRA):This government agency which isresponsible for collecting applica-10ble taxes on products and services, imports and exports. It alsoadvises potential tax payers onapplicable taxes they should pay.Foreign investors are also advisedon what tax they are eligible topayMinistry of Commerce, Trade andIndustry: This ministry is responsible for promotion of investmentand trade in Zambia. It also issuesexport and import permits afterrelevant national standards orsanitary and phytosanitary requirements for goods have beenfulfilled by the applicants. Theministry has Zambia DevelopmentAgency as its wing for conductinginvestment promotions with andoutside the countryZambia Bureau of Standards. Thisis a government institution underthe Ministry of Commerce Tradeand Industry which is responsiblefor checking commodities beingmanufactured and imported intoZambia meet the set nationalstandards. Poultry feeds manufactured in Zambia are checkedfor quality and standards co
Investors Guide on Poultry in Zambia 2 As a strategy to contribute to improved investment and compe-titiveness of the Zambian poultry industry, the Embassy of the King-dom of the Netherlands in Harare in conjunction with AgriProFocus Zambia and the Poultry Associ-ation of Zambia commissioned a market study on investmentFile Size: 476KB
supply of quality poultry feeds, high veterinary and poultry feed costs and lack of poultry processing industries. The poultry sector is also suffering from chaotic and unorganised distribution system and lack of third-party logistics cold chain for poultry and poultry pro
poultry site news 2009). In poultry production small-scale poultry production represents one of the few opportunities for saving, investment and security against risks. It accounts for approximately 90% of total poultry production (Branckaert 1999). Despite the acknowledge importance of poultry production Akanni (2007) opined that it is .
Constitution of Zambia (Amendment) [No. 2 of 2016 9 An Act to amend the Constitution of Zambia. [ 5th January, 2016 ENACTED by the Parliament of Zambia. 1. This Act may be cited as the Constitution of Zambia
Delphy B.V. AgriProFocus Zambia Linda Calciolari, Martine de Jong Lawrence Shonga, Yvonne Mtumbi Postbus 7001 7 Nkanchibaya Road, Rhodes Park 6700 CA Wageningen, Netherlands Lusaka, Zambia
Sep 18, 2017 · Midwest Poultry Show Nutrition. Midwest Poultry Show Preview Space Closing: Jan 10, 2018 Materials Deadline: Jan 16, 2018 AUG Processing. Space Closing: Jul 10, 2018 Materials Deadline: Jul 13, 2018 MAR Midwest Poultry Show. Top Poultry
Small scale poultry coops seem to be built in almost every possible shape and size. Those building a new coop often ask for plans for the perfect chicken coop. However, few plans for small poultry houses are available. Many existing buildings can easily be adapted to accommodate poultry. Poultry housing
Backyard Poultry’s Main Coop Backyard Poultry P.O. Box 566, Medford, WI 54451 www.countrysidenetwork.com Subscriptions (u.S. funds): 24.99 per year Backyard Poultry Subscriptions P.O. Box 1848, Carson City, NV 89702 (970) 392-4419 Backyard Poultry (ISSN 1559-2251, USPS 023-374) is published bi-monthly by Countryside Publications, P.O. Box .
The Dissident Daughter chronicles Sue’s process as she re-writes this narrative, and she maps the journey in four stages, shown here only in the most cursory of summaries: the recognition of a “feminine wound” and her struggle to conceive a “feminine self” (Part One: Awakening); her introduction to the
