February 28, 2017
Rabobank report: Modern poultry industry taking shape in Africa
A growing middle class in Africa has resulted in a shift in diet from vegetable-based to one that is more protein-rich, giving the poultry industry an advantage, according to a Rabobank research report released in February.
The RaboReseach report, entitled 'Time for Africa: Capturing the African Poultry Investment Opportunity', said that in this shifting diet, poultry and eggs are the protein of choice for African consumers not only because these are affordable and available, but also because consumers prefer the taste of chicken and eggs over other proteins.
It said supermarkets and quick-service restaurants have responded to the opportunity of a rising African middle class and are expanding across the continent, pulling new investments into the region.
'Driven by a rising middle class and rapid urbanisation, a more modern poultry industry is taking shape in Africa', Rabobank Senior Animal Protein Analyst Nan-Dirk Mulder said.
Short payback times
Mulder noted that the short payback times for poultry and egg production make poultry production easier to start up and expand.
The report said many Sub-Saharan African countries like Nigeria, Angola, Zambia and Zimbabwe have the potential to further increase their feed-ingredient supply, which could support a more competitive supply of poultry in these countries, as feed costs make up around 70% of total costs.
It said modern poultry supply chains are attracting investors to set up feed mills and hatcheries. 'We see a trend of building a smarter poultry value chain, encompassing breeding, grow-out farms and processing facilities. In some cases, companies are also investing in distribution, through butcher shops and restaurant chains', it added.