Zambia's poultry sector reports 40% decline in revenue

The Poultry Association of Zambia (PAZ) has said the high cost of feeds and low poultry consumption trends, as a result of the economic meltdown, brought down the industry revenue by 40%.

According to the annual financial report for 2009, the industry suffered from high transport costs, which is making intra-trade difficult.

Despite the challenges, chick production was high: 20 million chicks were hatched; 1.5 million died or were destroyed leaving 18.5 million chicks to be sold.

The total annual egg production remained relatively stable but not only profitable at 324 million eggs. The demand for layer pullet chicks dropped 30% and so were the pullets in the rearing.

The association also recorded a decrease in income by 30% from the Poultry Development Fund (PDF) compared to 2008 as a result of reduction in day-old chicks being sold nationwide. The budgeted deficit from PDF income was supplemented with an increase by 40% in members' subscriptions.

"As with many businesses in Zambia, 2009 has been a difficult year for PAZ and the poultry industry as a whole with production costs recording an all time high," PAZ report says.

It also said in 2009, the availability of raw materials failed short of meeting the industry needs and it caused an upswing in the cost by 100%. The stock feed industry uses close to 10% of the corn needs of the nation and 80% of the soy production.

The increase in domestic demand for corn and soy raised the prices of the two commodities to the detriment of the industry.