Farmers Review Africa Sept/Oct 2019 Farmers Review Africa September - October 2019 dig | Page 37

POULTRY AFRICA Poultry Farming - Africa’s love for chicken and eggs P oultry farming in Africa is one the biggest business opportunities on the continent. Africa’s love for poultry meat and eggs has grown at a staggering pace. Every year, the continent imports more than two million metric tons of poultry products valued at nearly US$3 billion to meet domestic demand. In 2012 alone, more than five million tons of poultry meat and two million tons of eggs were consumed in Africa. Africa’s love for chicken and eggs is increasing with the size of its rapidly growing population. Chicken and eggs are a rich source of animal protein for millions of Africans. The young population, who make up more than 70 percent of the continent’s people are the highest consumers of poultry products. Although it is home to 13 percent of the global population, Africa provides just 4 percent of the world’s poultry products. The average African eats one egg every five or six weeks, while the average Japanese person eats eggs almost daily. The same holds true for poultry meat consumption. In one year, the average African consumes only 3.3 kilograms of poultry meat, compared to 28 kilograms for the average French person, and 14 kilograms worldwide. Poultry products remain a luxury in many sub-Saharan African countries, despite substantial animal protein needs. Africa’s poultry market is experiencing a boom as a result of its rapid population and economic growth. Brazil and China have become the largest exporters of frozen chicken to our markets and have made it nearly impossible for local poultry farms to thrive. African poultry production is dominated by South African companies, as four of the top six broiler producers are headquartered in South Africa. RCL Foods and Astral Foods are by far the continent’s largest two poultry companies, having slaughtered 260 million and 228.3 million broilers annually in 2017, according to the Poultry International Top Poultry Companies Survey both are South African companies. Coming in at a distant third is Cairo Poultry, headquartered in Egypt, which slaughtered 75 million broiler chickens in 2017. Africa, which imports nearly 83% of the food it consumes, has a real chicken and egg problem. The continent is caught between pressure from imports in some countries and an inability to meet demand in others. Africa’s chicken crisis is an expression of overall weaknesses in its agricultural system. If Africa cannot raise its grain production it cannot expect do well in increasing its chicken output. It is a complex problem. Producing chickens requires low-cost feed such as corn. Yet producing grain to meet human needs remains one of the continent’s most pressing challenges. Africa’s urban populations, for example, are growing faster than the continent can produce grain. This has contributed to Africa’s shift from being a net food exporter to being a net food importer. The inability to ramp up grain production has affected Africa’s ability to feed its people as well as its chicken. Its imports for grain as well as chicken have been rising as a result. Its import of poultry products is estimated at $3 billion a year. Inability to meet demand Population growth, urbanisation and changing diets have over the last 20 years shifted African meat consumption away from beef to pork and poultry. According to some estimates, chicken now accounts for nearly half of the meat consumed in Africa. The supply of poultry has not kept up with the demand, which is in turn pushing up prices. The demand for chicken in countries such as Ethiopia, Ghana, Nigeria and Tanzania is projected to rise significantly over the next decade. Chicken prices July - August 2019 | 35