Africa's agriculture and value addition magazine

Currency hurts poultry products

Posted in Poultry & Fish

ZAMBIA - Poultry Association of Zambia (PAZ) says poultry products have continued to rise due to the devaluation of the Kwacha and the increase in the cost of production.

The development has resulted in national average prices to range between K38.00 to K45.00 and K55.00 to K70.00 for broilers and village (free-range) chickens respectively, while the price of eggs per tray is costing between K28.00 and K30.00.

While the Kwacha has experienced significant depreciation during the last quarter, it appreciated last week by 6.6 percent and closed the week at an average of K10.58 against the dollar after President Lungu outlined the economic recovery plan on his first press conference last Thursday.

In an interview over the weekend, PAZ executive manager Dominic Chanda said the local currency is expected to gain some grounds in the short-term but, not enough to have a significant impact on reduction on the prices of inputs in the poultry industry.

He said the price of stock feed in most of the major towns has risen in the last quarter causing shocks in the industry.

“But some prices on other brands of feed remained stable leading to lower average prices in some of the major towns observed.

Further not all  feeds  are  available  in  each  town,  therefore,  some  towns  are  not  affected  by  some  of  the  price adjustments  made  on  some  brands  of  feed.

“However,  generally  the  price  of  feed  is  now  very  high  in  all towns, and as a result,  the margins of farmers have been reduced  since there has been a resistance from the market to let the price of poultry products such as chicken  rise,” Mr Chanda said.

Since last month, the average price per 50kg of broiler starter, grower and finisher has risen by 23 percent (K285.00), 22 percent (K265.00) and 21 percent (K245.00) respectively.

December 9, 2015;