Gov't moves to ease poultry monopolies
Pauline Dikuelo | Friday March 26, 2021 14:20
Small scale poultry farmers have previously raised concerns about their industry noting that it has grown into a vertical integration model where large scale producers are partaking in all stages of the value chain.
It has also been observed that the relationships between the poultry abattoirs and processing plant with contract growers place smaller farmers in a challenging position as they appear to be set up to fail. The cost of poultry feed in the country and the apparent monopolies dominating the sector are also a cause for concern.
Agricultural minister, Kabo Gare recently assured small scale producers that the ministry has been working on interventions aimed at addressing the monopoly issue, such as enhancing small scale farmers’ access to imported feeds. “We have also facilitated through clusters to register at PPADB and supply government institutions thus gaining market access,” he said. Another intervention is the citizen hatchery with a 3,000-strong parent stock, which has been established in Letlhakane. The hatchery, which started production in January, has contracted seven outgrowers who will raise day-old chicks to the point of the lay stage, which is 18 months.
The ministry further noted an increase in poultry meat and egg production in the past financial year, with the poultry meat growing from 35,443 tonnes to 38,407 tonnes.
“The growth is the result of the increased poultry projects as a result of subsidised feed prices under the 35% subsidy. The (the coronavirus) COVID-19 food basket programme has also provided a market for produce during the lockdown, which stimulated local production,” he said. The Competition and Consumer Authority (CCA) previously published an article entitled ‘Market Study Reveals Competition Concerns in Botswana’s Poultry Industry’, which indicated that ownership in the local poultry sector was unique and complex.
“The largest poultry producers in Botswana had ties to South African producers, and domestic producers were no match to those huge firms at the breeder and processing levels. “Tight trade restrictions protected these dominant players from the competition,” the study noted.
According to the minister, this means the restriction on the importation of pullets will be effected in the near future, as farmers will be required to buy locally-produced pullets and only import when the local production cannot meet the demand. Pullets are young hens mainly less than a year-old.