March 28, 2005

Mozambique's government to counter imported poultry by making local feed cheaper

Vast amounts of Brazilian frozen chicken are imported into Mozambique. Poultry farmers there are protesting this unfair dominance and insisting that the government take measures to protect the industry.

Minister of Industry and Trade, Antonio Fernando argues that protection is really not viable in light of the impending creation of a southern African free trade area.

He imagines that the situation is good for consumers since Brazilian chickens are extremely cheap (cheaper than the local produce, and cheaper than chickens imported from South Africa), but admitted that should the Mozambican poultry industry collapses, there will be nothing to prevent sharp increases in the price of imported chickens.

His solution to the problem is to ensure the availability of cheap, locally produced feed, thus making Mozambican chickens more competitive.