A REPORT ON THE POULTRY INDUSTRY IN ZAMBIA, GABORONE, BOTSWANA

1. BY MATHEWS NGOSA EXECUTIVE DIRECTOR (PAZ) A REPORT ON THE POULTRY INDUSTRY IN ZAMBIA, GABORONE, BOTSWANA

2. Industry vital to the Zambian economy Contributing products of high nutritional value and at low cost Currently contributing 42% to the Livestock GDP Has attracted heavy investment in operational infrastructure Has contributed significantly towards the generation of new jobs in the economy. INTRODUCTION

3. Commercial layers (millions) 2 Commercial broilers (millions) 36 Stock breeders (millions) 0.5 Egg production (trays)(millions) 17.28 Poultry meat production (million tonnes) 0.045 Poultry feed production (million tonnes) 0.17 Annual growth Layer industry 20-25% Broiler industry 30% Source: PAZ studies assembled from published reports of the PAZ AGMs Poultry and feed production

4. Has become more scientific, better organized and progressing towards modernization compared to other livestock in the livestock sector Breeding, & nutrition has improved through training, competition, expansion and survival instincts. Production now stands at over 500 million eggs and 36 million broilers annually Poultry production

5. Growing at the rate of 25% for the layer and 30% for the broiler annually Figures still low compared to RSA but developing economically due to growing consumption The country has developed capacity of 1.8 million chicks and 41, 000mt feed per week Currently going through a phase of integration in broiler and layer production continued

6. Exporting table eggs, fertile eggs and DOCs to Congo DR, Kenya and Tanzania s being modernized with pure-line breeding, latest vaccines and medicines, environmentally controlled housing, latest poultry abatoirs and chicken meat processing units and excellent feed. The industry has 8 hatcheries at the moment out of which four are the major ones with integrated breeder operations. continued

7. Currently self sufficient in poultry feeds with excess for exports Produces slightly over 200,000mt of poultry feeds annually Has a total of 11 mills producing animal feeds out of which 5 are the major ones 80% of the animal feeds produced and marketed are poultry feeds Poultry Feeds

8. Maize is the most important cereal used in poultry feeds Annual maize production is about 3 million tonnes Country Maize consumption as stands at 1.3 million tons. 10% of it is used in animal feed production out of which 80% is used in poultry feeds No subsidy on commercial maize production but there is subsidy on small scale production through a food security program continued

9. Soybeans is the most often used protein ingredient in poultry feeds The industry uses slightly over 100,000mt of the soybeans All soybeans and cake produced is GMO free Currently the country produces on average of between 100-120,000mt soybeans annually The demand for agroproducts is great and need to augment our production by 100% if were are to remain self sufficient continued

10. Nutritional stds have been prepared with respect to genotype, environment and quality of available materials, maintenance methods, production and reproduction reqts, production capacity and phase of production. Minimum stds are developed for poultry by the Zambia Bureau of Standards (ZABS) in collaboration with the Poultry Association of Zambia Feed standards and specifications

11. The minimum stds though covered by law are only guidelines and their use as standards is not mandatory Feed business is competitive and feed producers therefore endeavor to produce performing feeds and of highest possible quality in order to remain in the market. Continued

12. Population growth rate is expected to double in the next 20 years The economy is growing at the rate of 6-7% annually The purchasing power of the middle class is growing as the economy grows Food habits are skewing towards greater consumption of poultry and poultry products FUTURE PROJECTIONS

13. Consumption is likely to increase from 36 to 55 and from 3.6Kg to 6.0 Kg per capita per year for eggs and broiler meat respectively in the next five years. The country has adopted a free market economy hence opening up to foreign investment , liberalised imports and removal of public sector business. continued

14. In view of continued increase in consumption, poultry production and productivity will be stimulated The industry is now developing towards vertical integration. Though live bird market accounts for 65% of the total poultry market, consumption of dressed chicken is expected to grow by 35% or more in both the urban and rural towns in the next five years continued

15. Cold chains, branded chickens, chicken cuts are being improved upon with consistent quality meaning consumer preference for these products is growing. • The next decade will see significant changes in the industry such as; • Mergers • Acquisitions continued

16. Amalgamations • Joint ventures • Diversification • Integration and efficient chains • E-commerce and use of latest information technology in global tenders • Improved trading; exports, imports and other commercial activities continued

17. At the root of all these the country is moving towards; • scientific development of feed manufacturing technology • Improved hatchery and mill technology in order to meet the growing demand for chicks and feed • Increased use of more scientific formulations continued

18. The Zambian laws at the moment do not permit use of GMO maize and soybeans in the feed industry but with such expected growth a review of policy will become inevitable. Thank you for your attention and God Bless continued