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- Jul 4, 2022
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Despite the massive opportunities created by the poultry industry, the sector is facing numerous challenges that eclipse its benefits to the country and individual citizens.
The available opportunities include investment opportunities in the areas of poultry feed manufacture, poultry storage, distribution, value addition, slaughter abattoirs, the processing of poultry products and by-products, and the manufacturing of equipment that facilitate efficient livestock keeping.
These opportunities can not only employ hundreds of thousands of Tanzanians, but they can also significantly reduce poverty and support the country’s economic growth.
Prime Minister Kassim Majaliwa recently directed the protection of investments in the sector instead of frustrating both domestic and foreign investors.
The Premier said this during a recent livestock stakeholder’s meeting, citing a recent incident where a Moshi-based investor set ablaze thousands of cartons of live chicks after traditional buyers declined to purchase them.
This may only be a fraction of the industry’s problems, as players say the main issue is arbitrary importation and smuggling from neighbouring countries.
Other challenges include illegal breeding of grandparent stocks, higher poultry feed prices, a glut of frozen chicken meat imported from other countries, and a lack of coordination among the ministries of agriculture and that of livestock and fisheries.
Others are the lack of subsidies and appropriate investment in the sector that could address the shortage of animal feeds and drinking water, especially during the dry season.
In his presentation to livestock stakeholders in Dodoma recently, Prof Hezron Nonga, the Director of Veterinary Services in the Ministry of Livestock and Fisheries, said Tanzania had 9,109,150 households, of which 3.2 million, or 35 percent, engage in livestock keeping, according to the 2012 Population and Household Survey.
He stated that chicken farming accounted for 53% of all livestock-keeping revenues and accounted for 18% of all meat produced in Tanzania.
“However, while 92,800 tonnes of chicken meat are produced annually, consumption stands at 2.07 kilogrammes per person per year, compared to the Food and Agriculture Organisation (FAO)’s recommendation of 50 kilogrammes per person per year,” he said.
“About 4.9 billion eggs are produced in the country annually. But, consumption stands at 166 eggs per person per year as compared to 300 eggs per person per year recommended by FAO,” he added.
He said Tanzania produces 92,092,000 chicks; 52,344,000 broilers; 32,364,000 hybrids (Kuroiler and Sasso) and 7,384,000 layers.
“However, broiler production has reached 1.007 million a week as compared to the 2.000 million demand, leading to a 50 percent deficit. The same is true for eggs, where 142,000 are produced weekly versus 300,000 demand, resulting in a 52% shortfall,” he explained.
Outlining further opportunities, Prof Nonga said people could invest in the production of crops useful in the manufacturing of animal feeds such as yellow maize, and soya.
He said the investment could also be directed toward the chicken value addition industry, including the construction of modern abattoirs, and the processing of chicken products into egg powder, sausage, ground meat, etc.
“Investment could be made in turning bones, blood, feathers, chicken oil, and manure into useful products. Factories could be established to manufacture chicken-keeping equipment such as cages, drinkers, feeders, egg trays, incubators, placers, etc,” he said.
Furthermore, he said the investment could be extended to the construction of modern warehouses with cold room facilities for the storage of chicken products.
lllegal importation, chicks smuggling
A reliable source told The Citizen on condition of anonymity that illegal importation and smuggling of chicks from neighbouring countries was a huge challenge that not only sabotaged the country’s economy, but also that of individual investors.
“There are reports of importation and smuggling of thousands of chicks from neighbouring countries. Unauthorised dealers also engage in breeding grandparent stocks, therefore sabotaging registered dealers who spend about $6.5 for purchasing a grandparent stock,” said the source.
According to the source, illegal importation and smuggling of chicks also negatively affects the quality of chicks in the country.
High cost of poultry feed
The source said there are several dealers who have suspended involvement in chicken rearing following a recent staggering increase in price of animal feed from the previous Sh75,000 to the present Sh90,000 per a 50 kilogrammes bag.
“Worse enough, the increase in the price of poultry feeds has been coupled with a decrease in the price of broilers from an average of Sh7,000 to Sh8,000 to between Sh4,500 and Sh5,500,” said the source.
“The government’s permission to allow farmers to freely export agricultural crops such as maize, soya, etc has greatly affected the livestock sector.
This is unlike cereals reserved by the National Food Reserve Agency (NFRA) for human consumption,” added the source.
The source appeals to the government to extend the provision of subsidies to the livestock sector like it is doing in crop production, where it is subsidising the accessibility and distribution of seeds and fertilisers.
Furthermore, the source said providing subvention to the sector would improve access to grandparent stocks, the construction of modern drinking water reservoirs, and the production of fodder.
The Prime Minister, Kassim Majaliwa addresses livestock sector stakeholders during the opening of a two day meeting at the PSSSF hall in Dodoma recently. PHOTO | COURTESY
Imported chicken meat saturation
The source said the idea to import chicken meat started in 2014 when the so-called investor expressed the intention that was gravely opposed by the Tanzania Commercial Poultry Association (TCPA).
TCPA’s letter directed to the Ministry of Livestock and Fisheries welcoming the so-called investors would turn the Tanzanian market into the dumping site of chicken products from foreign countries.
TCPA says in a letter seen by this paper that Ghana and South Africa are now struggling to revive the sector that was severely devastated by the influx of imported chicken meat.
“The number of people directly or indirectly depending on the sector to support their lives has grown to millions, taking into account that maize, sunflower, and soya bean farmers greatly rely on the poultry sector for their market,” says TCPA.
“Fishermen also rely on the sector to market their sardine, but imported chicken products don’t consume any of these products,” adds TCPA in the letter,
TCPA observed that allowing importation would lead to the total exclusion of locals from the country’s economic process.
“The sector serves the government with approximately $100 million a year that would have been used in importing the same quantity of chicken that would be produced locally,” says TCPA.
“We are firmly convinced that all the benefits the poultry sector is bringing to Tanzania will be wiped entirely out within a few months if the government was to allow the so-called ‘investors’ to go ahead with their project to import chicken from the USA,” stated the association.
“We have all clearly seen the outcome of such decisions in countries like Ghana, Angola, and Zanzibar, where the local poultry industry was literally destroyed,” adds the association.
But, in another letter submitted in June last year, TCPA said it was aware of the ongoing discussion between the Commercial Department of the US Embassy to Tanzania and a private company in Zanzibar, Zan-Chick, to presumably increase the volume of imported processed chicken in the domestic market.
“As members of the Tanzanian Poultry Association, we believe it is critical to emphasise the devastating consequences for the local poultry industry if such an initiative is allowed to proceed. Similar impacts have been witnessed in other parts of Africa, and that needs to be avoided in Tanzania,” insisted TCPA.
Data from the Zanzibar Ports Corporation show that 16,561.37 metric tonnes of chicken meat worth Sh14.995 billion at the customs value has been imported into Tanzania Mainland and Zanzibar between 2019 and 2021.
They include frozen chicken leg quarters, frozen whole hen, frozen chicken gizzard, whole naked hen, frozen chicken leg quarters medium, frozen chicken griller, frozen chicken grillers giblet, frozen chicken upper back, frozen chicken boneless breast, frozen chicken whole, etc.
Another source told this paper that the lack of harmonisation between the Ministry of Agriculture and that of Livestock and Fisheries after splitting from the former Ministry of Agriculture, Livestock and Fisheries was another challenge that impedes the sector’s prosperity.
“The Livestock and Fisheries Ministry has remained like a department in the Ministry of Agriculture. “Look at decisions like providing subsidies for seed and fertiliser and ask yourself why similar measures are not extended to the livestock and fisheries sectors,” the stakeholder said on condition of anonymity.
According to the source, subsidies would allow the livestock sector to cover the costs of importing grandfather stocks, produce livestock seeds that would eventually lower prices, and build infrastructure for drinking water and feeding that would address the issue of animal deaths during drought.
Government’s reaction
When reached for comment, the Director of Veterinary Services in the Ministry of Livestock and Fisheries, Prof Hezron Nonga said no permit for chick importation has been issued since August 1, 2022, noting however that Covid-19 had negatively impacted the sector.
“Only two firms have been given permits to import chicks, which will expire at the end of this month. The country is currently producing more chicks compared to demand. Some companies are annoyed to the extent of setting live chicks ablaze.”
He said some people in Dar es Salaam have stopped raising chickens, especially broilers, due to the current economic crisis that has led to a decline in customers.
“When production costs are compared to market prices for broilers, farmers incur an average loss of Sh1,500. “Breeders like Interchick, which produces two million chicks per year on average, only sell half of that,” he said, blaming chick traders for spreading false information on social media.
“These are just rumours. Anyone who knows ministry officials issuing permits should bring them to us with evidence for us to take disciplinary measures.”
Regarding smuggling, he said yesterday (Friday), 62,720 chicks had been seized at the Julius Nyerere International Airport. They were being imported into the country without permits.
He said the rising price of cereals due to prolonged drought has led to hiked prices of livestock feeds, noting that stakeholders are being mobilised to cultivate, harvest and store cereals for manufacturing animal feeds.
“NFRA is also being mobilised to store the cereals for livestock feed in some of its warehouses. “During the drought, the same should be released for manufacturing poultry feeds,” he said, adding that the mobilisation extends to the private sector as well.
He said livestock development wasn’t among the issues of the union, saying Zanzibar has allowed the importation of chicken meat.
“If the meat imported in Zanzibar enters the market in Mainland Tanzania, then it is being smuggled, which is an offense. Regarding subsidies to players in the sector, Prof Nonga said the government has waived taxes on imported hatchery equipment and animal feed.
“This is a huge incentive. The government is protecting investors in the sector from unnecessary competition, unlike their counterparts in Kenya and Uganda,” he said.
Source: Citizen
The available opportunities include investment opportunities in the areas of poultry feed manufacture, poultry storage, distribution, value addition, slaughter abattoirs, the processing of poultry products and by-products, and the manufacturing of equipment that facilitate efficient livestock keeping.
These opportunities can not only employ hundreds of thousands of Tanzanians, but they can also significantly reduce poverty and support the country’s economic growth.
Prime Minister Kassim Majaliwa recently directed the protection of investments in the sector instead of frustrating both domestic and foreign investors.
The Premier said this during a recent livestock stakeholder’s meeting, citing a recent incident where a Moshi-based investor set ablaze thousands of cartons of live chicks after traditional buyers declined to purchase them.
This may only be a fraction of the industry’s problems, as players say the main issue is arbitrary importation and smuggling from neighbouring countries.
Other challenges include illegal breeding of grandparent stocks, higher poultry feed prices, a glut of frozen chicken meat imported from other countries, and a lack of coordination among the ministries of agriculture and that of livestock and fisheries.
Others are the lack of subsidies and appropriate investment in the sector that could address the shortage of animal feeds and drinking water, especially during the dry season.
In his presentation to livestock stakeholders in Dodoma recently, Prof Hezron Nonga, the Director of Veterinary Services in the Ministry of Livestock and Fisheries, said Tanzania had 9,109,150 households, of which 3.2 million, or 35 percent, engage in livestock keeping, according to the 2012 Population and Household Survey.
He stated that chicken farming accounted for 53% of all livestock-keeping revenues and accounted for 18% of all meat produced in Tanzania.
“However, while 92,800 tonnes of chicken meat are produced annually, consumption stands at 2.07 kilogrammes per person per year, compared to the Food and Agriculture Organisation (FAO)’s recommendation of 50 kilogrammes per person per year,” he said.
“About 4.9 billion eggs are produced in the country annually. But, consumption stands at 166 eggs per person per year as compared to 300 eggs per person per year recommended by FAO,” he added.
He said Tanzania produces 92,092,000 chicks; 52,344,000 broilers; 32,364,000 hybrids (Kuroiler and Sasso) and 7,384,000 layers.
“However, broiler production has reached 1.007 million a week as compared to the 2.000 million demand, leading to a 50 percent deficit. The same is true for eggs, where 142,000 are produced weekly versus 300,000 demand, resulting in a 52% shortfall,” he explained.
Outlining further opportunities, Prof Nonga said people could invest in the production of crops useful in the manufacturing of animal feeds such as yellow maize, and soya.
He said the investment could also be directed toward the chicken value addition industry, including the construction of modern abattoirs, and the processing of chicken products into egg powder, sausage, ground meat, etc.
“Investment could be made in turning bones, blood, feathers, chicken oil, and manure into useful products. Factories could be established to manufacture chicken-keeping equipment such as cages, drinkers, feeders, egg trays, incubators, placers, etc,” he said.
Furthermore, he said the investment could be extended to the construction of modern warehouses with cold room facilities for the storage of chicken products.
lllegal importation, chicks smuggling
A reliable source told The Citizen on condition of anonymity that illegal importation and smuggling of chicks from neighbouring countries was a huge challenge that not only sabotaged the country’s economy, but also that of individual investors.
“There are reports of importation and smuggling of thousands of chicks from neighbouring countries. Unauthorised dealers also engage in breeding grandparent stocks, therefore sabotaging registered dealers who spend about $6.5 for purchasing a grandparent stock,” said the source.
According to the source, illegal importation and smuggling of chicks also negatively affects the quality of chicks in the country.
High cost of poultry feed
The source said there are several dealers who have suspended involvement in chicken rearing following a recent staggering increase in price of animal feed from the previous Sh75,000 to the present Sh90,000 per a 50 kilogrammes bag.
“Worse enough, the increase in the price of poultry feeds has been coupled with a decrease in the price of broilers from an average of Sh7,000 to Sh8,000 to between Sh4,500 and Sh5,500,” said the source.
“The government’s permission to allow farmers to freely export agricultural crops such as maize, soya, etc has greatly affected the livestock sector.
This is unlike cereals reserved by the National Food Reserve Agency (NFRA) for human consumption,” added the source.
The source appeals to the government to extend the provision of subsidies to the livestock sector like it is doing in crop production, where it is subsidising the accessibility and distribution of seeds and fertilisers.
Furthermore, the source said providing subvention to the sector would improve access to grandparent stocks, the construction of modern drinking water reservoirs, and the production of fodder.
The Prime Minister, Kassim Majaliwa addresses livestock sector stakeholders during the opening of a two day meeting at the PSSSF hall in Dodoma recently. PHOTO | COURTESY
Imported chicken meat saturation
The source said the idea to import chicken meat started in 2014 when the so-called investor expressed the intention that was gravely opposed by the Tanzania Commercial Poultry Association (TCPA).
TCPA’s letter directed to the Ministry of Livestock and Fisheries welcoming the so-called investors would turn the Tanzanian market into the dumping site of chicken products from foreign countries.
TCPA says in a letter seen by this paper that Ghana and South Africa are now struggling to revive the sector that was severely devastated by the influx of imported chicken meat.
“The number of people directly or indirectly depending on the sector to support their lives has grown to millions, taking into account that maize, sunflower, and soya bean farmers greatly rely on the poultry sector for their market,” says TCPA.
“Fishermen also rely on the sector to market their sardine, but imported chicken products don’t consume any of these products,” adds TCPA in the letter,
TCPA observed that allowing importation would lead to the total exclusion of locals from the country’s economic process.
“The sector serves the government with approximately $100 million a year that would have been used in importing the same quantity of chicken that would be produced locally,” says TCPA.
“We are firmly convinced that all the benefits the poultry sector is bringing to Tanzania will be wiped entirely out within a few months if the government was to allow the so-called ‘investors’ to go ahead with their project to import chicken from the USA,” stated the association.
“We have all clearly seen the outcome of such decisions in countries like Ghana, Angola, and Zanzibar, where the local poultry industry was literally destroyed,” adds the association.
But, in another letter submitted in June last year, TCPA said it was aware of the ongoing discussion between the Commercial Department of the US Embassy to Tanzania and a private company in Zanzibar, Zan-Chick, to presumably increase the volume of imported processed chicken in the domestic market.
“As members of the Tanzanian Poultry Association, we believe it is critical to emphasise the devastating consequences for the local poultry industry if such an initiative is allowed to proceed. Similar impacts have been witnessed in other parts of Africa, and that needs to be avoided in Tanzania,” insisted TCPA.
Data from the Zanzibar Ports Corporation show that 16,561.37 metric tonnes of chicken meat worth Sh14.995 billion at the customs value has been imported into Tanzania Mainland and Zanzibar between 2019 and 2021.
They include frozen chicken leg quarters, frozen whole hen, frozen chicken gizzard, whole naked hen, frozen chicken leg quarters medium, frozen chicken griller, frozen chicken grillers giblet, frozen chicken upper back, frozen chicken boneless breast, frozen chicken whole, etc.
Another source told this paper that the lack of harmonisation between the Ministry of Agriculture and that of Livestock and Fisheries after splitting from the former Ministry of Agriculture, Livestock and Fisheries was another challenge that impedes the sector’s prosperity.
“The Livestock and Fisheries Ministry has remained like a department in the Ministry of Agriculture. “Look at decisions like providing subsidies for seed and fertiliser and ask yourself why similar measures are not extended to the livestock and fisheries sectors,” the stakeholder said on condition of anonymity.
According to the source, subsidies would allow the livestock sector to cover the costs of importing grandfather stocks, produce livestock seeds that would eventually lower prices, and build infrastructure for drinking water and feeding that would address the issue of animal deaths during drought.
Government’s reaction
When reached for comment, the Director of Veterinary Services in the Ministry of Livestock and Fisheries, Prof Hezron Nonga said no permit for chick importation has been issued since August 1, 2022, noting however that Covid-19 had negatively impacted the sector.
“Only two firms have been given permits to import chicks, which will expire at the end of this month. The country is currently producing more chicks compared to demand. Some companies are annoyed to the extent of setting live chicks ablaze.”
He said some people in Dar es Salaam have stopped raising chickens, especially broilers, due to the current economic crisis that has led to a decline in customers.
“When production costs are compared to market prices for broilers, farmers incur an average loss of Sh1,500. “Breeders like Interchick, which produces two million chicks per year on average, only sell half of that,” he said, blaming chick traders for spreading false information on social media.
“These are just rumours. Anyone who knows ministry officials issuing permits should bring them to us with evidence for us to take disciplinary measures.”
Regarding smuggling, he said yesterday (Friday), 62,720 chicks had been seized at the Julius Nyerere International Airport. They were being imported into the country without permits.
He said the rising price of cereals due to prolonged drought has led to hiked prices of livestock feeds, noting that stakeholders are being mobilised to cultivate, harvest and store cereals for manufacturing animal feeds.
“NFRA is also being mobilised to store the cereals for livestock feed in some of its warehouses. “During the drought, the same should be released for manufacturing poultry feeds,” he said, adding that the mobilisation extends to the private sector as well.
He said livestock development wasn’t among the issues of the union, saying Zanzibar has allowed the importation of chicken meat.
“If the meat imported in Zanzibar enters the market in Mainland Tanzania, then it is being smuggled, which is an offense. Regarding subsidies to players in the sector, Prof Nonga said the government has waived taxes on imported hatchery equipment and animal feed.
“This is a huge incentive. The government is protecting investors in the sector from unnecessary competition, unlike their counterparts in Kenya and Uganda,” he said.
Source: Citizen
