Zim faces poultry price hike

HARARE - Zimbabwe's poultry prices are set to rise following the imposition of a compulsory licence for importers by government, the African Development Bank (AfDB) warned.

In order to control the influx of cheap chickens that are threatening the domestic industry, poultry importers now require a licence from the Industry ministry in addition to the one issued by the ministry of Agriculture.

“The move is meant to reduce poultry imports and, thus, protecting local producers,” AfDB said, adding, however, that Zimbabwe’s industry faced challenges.

The local poultry industry is facing problems including high cost of doing business, unreliable power supply and poor disease control.

AfDB said the local producers may face challenges in increasing production levels, “which may lead to increases in poultry prices”. Zimbabwe imports around 3 000 tonnes of chickens per month worth about $60 million.

While local suppliers sufficiently produced for the domestic market previously, high production costs and stock feed shortages, among other impediments, have also had a severe knock on output.

Capacity among local chicken producers has therefore plunged to 1 900 tonnes per month against an estimated demand of 3 500 tonnes.

Zimbabwe imports most of its chicken from South Africa.

Two Brazilian abattoirs and one each from Argentina and Uruguay have also been exporting chickens into the country.

Brazil has capacity to slaughter up to five million birds per day, which is in sharp contrast to the 700 000 chickens slaughtered by South African producers.

Locally, the major poultry producers include Irvine’s Chickens.

 

Comments (9)

protecting the local poultry industry is neccesary cause it creates oppotunities for job creation and wealth creation.what idbz must do is to support the local producers so that we grow from current capacity.

moses - 14 April 2014

Closing our economy to imports will only encourage local producers/manufacturers to increase prices exploitively and market inferior quality goods and services. Our economy requires robust competition.

Daniel Didi - 14 April 2014

ugh moses vano supotwa neiko cash yacho nyika isina. hapana imboripo apa, kungoda kuti huku dza gono dzitengwe chete

bonie - 14 April 2014

This is a wise move as not only will it encourage more local chicken producers to enter the Industry and therefore create employment, it will also reduce cases of cancer caused by chemicals used in the preservation of those chickens.

Dr Know - 15 April 2014

protecting the industry will discourage innovation and efficiency local producers should be exposed to competition so as to find efficient wayz of doing business remember the local industry should not only focus on serving the domestic market but also serve exports markets implying that they must produce competitive products

tyc - 15 April 2014

A step in the right direction the local market should be enjoyed by locals we have the capability to do even better once such moves are pushed into law. shuwa chinotikonesa kuchengeta huku chii

fortune hove - 15 April 2014

This is not a wise move - as it is increasing complexity in the business. to require two liences just is not right when you want a one stop situation like Rwanda does.

xx - 16 April 2014

Itovharai huku dzisapinde paBoarder zvachose. Brazil ngavadye huku dzavo.Ndokuti Zimbabwe ibudirire

sekemutema - 16 April 2014

Surely this is an opportunity for new entrants to start producing chickens in partnership with major importers. Large retailers in RSA promote small producers of vegetables, herbs etc

saundy - 16 April 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.