Analysis of the animal feed to poultry value chain in Zambia

Figures & data

Figure 1. Trends in animal feed and poultry prices. Source: Poultry Association of Zambia; Zambia Central Statistical Office.

Figure 2. Zambia’s broiler value chain. Source: Authors.

Table 1. Industry capacities.

Industry	Installed capacity	Notes
Broiler processing	64 715 metric tons per month	Among the major processing companies, Southern Chicken and Supreme Chicken are the most recent entrants.
Oilseed crushing^a	161 616 metric tons per annum	For all oil seed crushers, capacity utilisation was estimated at 91% in 2013. From our interviews, we find that capacity utilisation for animal feed firms ranges from 70–80%.
Primary Production (breeders and hatcheries)	1 363 000 per week	Zamhatch is the most recent entrant with current capacity not determined but expected to equal that of the two market leaders (i.e. Hybrid Poultry and Ross breeders).

Sources: Author’s illustration using ^aChisanga and Sitko (2013); Poultry Association of Zambia.

Table 2. Trends in production of poultry and animal feed (2010–2014).

Year	Day-old chicks (millions)	Broiler meat (metric tons)	Animal feed (million metric tons)
2010	30.7	52,222	171.4
2011	41.9	71,274	222.3
2012	58.5	99,476	310.0
2013	69.0	117,360	372.4
2014	73.9	125,691	372.3

Source: Poultry Association of Zambia, 2016.

Figure 3. Zambia’s animal feed trade in US$ millions (2010–2014). Source: ITC (2015).

Figure 4. Trends in maize and soya bean yields and production.

Source: Central Statistical Office Crop Forecast Surveys (2003–2015).

Table 3. Export destinations for animal feed, day-old chicks and hatching eggs.

	Animal feed	Day-old chicks and hatching eggs
Botswana	X
Burundi	X
The Democratic Republic of Congo	X	X
Ethiopia
Kenya		X
Malawi	X	X
Mozambique		X
Namibia	X	X
Rwanda	X
South Africa	X
Tanzania		X
Zimbabwe	X	X

Source: Central Statistical Office.

Table 4. Export parity prices for soya beans and maize.

Country	Soya beans (export parity price) US$/ton^a	Maize (export parity price) US$/ton	Soya meal (export parity price US$/ton)^a
Zimbabwe	480	330	550
Malawi	–	310	–
South Africa	–	176	–
Tanzania	–	201	–
Kenya	–	112	–
Uganda	–	72	–
Mozambique	–	193	–

Sources: Chisanga and Chapoto, (2016); ^aGrain Traders Association of Zambia (GTAZ), ^aExchange rate $1 = ZMW8.6.

Table 5. Cost build-up, 2012 and 2015 (US$).

	South Africa		Zambia
	2012	2015	2012	2015
Feed cost	0.54	0.39	0.58	0.39
Feed conversion ratio	1.67	1.54	1.67	1.65
Size of bird	1.8	1.8	1.8	1.8
Feed cost per broiler	1.61	1.08	1.74	1.16
Day-old chick	0.37	0.38	0.85	0.52
Other costs in broiler production	0.24	0.24	0.25	0.15
Live chicken (1.8 kg) cost	2.22	1.7	2.84	1.83
Live chicken (1.8 kg) price	2.64	2.02	3.9	2.44
Live chicken cost per kg	1.23	0.95	1.58	1.02
Abattoir cost/processing per kg	0.29	0.29	0.3	0.3
Processed chicken, per kg, cost	1.52	1.24	1.88	1.32
Processed chicken, per kg, cost, producer price	1.64	1.33	3.01	2.11
Brining levels	30%	30%	30%	30%
Producer price, per kg adjusted for brining	2.13	1.73	3.01	2.11
Fresh poultry producer price (portions)	2.88	–	–	–
Processed chicken, per kg, retail price (frozen portions)	2.93	–	–	–

Source: Ncube et al. (2017).

Table A1. Primary data sources.

Firm	Interview Date	Interviewer(s)
Hybrid poultry	21 October, 2015	Paul Samboko
Zamhatch/Zamchick	27 September 2015	Paul Samboko, Olipa Zulu
Navajo Agro minerals	September 2015	Paul Samboko
Tiger chicks	30 September 2015	Paul Samboko
Tiger animal feeds	30 September 2015	Paul Samboko
Nutrifeeds mill	24 September 2015	Paul Samboko, Olipa Zulu
Ross breeders	24 September 2015	Paul Samboko, Olipa Zulu
Novatek animal feeds	26 September 2015	Paul Samboko
National milling corporation	September 2015	Paul Samboko
Poultry association of Zambia	8 September 2015	Paul Samboko, Olipa Zulu
Outgrower	18 September 2015	Paul Samboko, Olipa Zulu

Source: Authors

Chisanga, B & Sitko, N, 2013. The national consumption requirement study for edible oils in Zambia. ZNFU/IAPRI, Lusaka. http://www.znfu.org.zm/download/file/fid/588 Accessed 10 September 2015

 Google Scholar

ITC, 2015. Trade Map. Retrieved July 2015, from www.trademap.org

 Google Scholar

Chisanga, B & Chapoto, A, 2016. Maize outlook and regional analysis 2016/17. IAPRI, Lusaka.

 Google Scholar

Ncube, P. et al., 2017. Identifying growth opportunities in the Southern African Development Community through regional value chains: The case of the animal feed to poultry value chain. WIDER Working Paper 2017/4. UNU-WIDER, Helsinki.

 Google Scholar