November 26, 2012
 

Zimbabwe's poultry imports hurt poultry industry
 

Amid the revelations that the country is spending US$65 million a month in chicken imports, the Zimbabwe government has swiftly moved in to protect the poultry sector from surging imports.


Zimbabwe imports about 3,000 tonnes of chickens per month mainly from Brazil and South Africa, which are cheaper than those bred locally. Major retail shops sell a two kilogramme-packet of imported chicken cutlets at around US$4 against the US$7.30 for the local birds.

The new gazetted tariff regime was prompted by Reserve Bank of Zimbabwe governor Gideon Gono disclosure that the imports were killing the local poultry industry.


"Would you believe it that as a country, we are spending on average of no less than US$65 million a month to import chicken gizzards, livers, feet, heads intestines and that kind of thing," Gono said a fortnight ago.

"We even have to import chickens without breasts and yet we are a country that has gone through a major land reform programme, which is supposed to see us being self-sufficient".

Under the new tariff regime, meat and edible offal of poultry fresh, chilled or frozen now attracts a customs duty of US$1.50 per kilogramme or 40% whichever is greater.

In his 2013 Budget last week, Finance minister Tendai Biti said stiff competition from cheap imports for both table eggs and meat was threatening the viability of local poultry businesses.

Local producers have had to contend with rising input costs, particularly corn and soymeal, due to poor harvests and high volumes of illegal imports being sold in the domestic market at sub-economic prices. Due to stiff competition from imports of chicken, local breeders are cancelling orders for day-old chicks as they fail to secure customers for their chicken as imports from outside the Sadc/Comesa region retail at prices significantly lower than locally produced chicken.


Capacity among local chicken producers has plunged to 1,900 tonnes per month against an estimated demand of 3,500 tonnes. To bridge the deficit through imports, government has licensed a number of companies to import chicken with varied monthly quotas.


Some of the firms include, Innscor which has a 100-tonne monthly quota, Zenith Distributors 50 tonnes, Seedex Enterprises 50 tonnes and Fresh Pro among others.