Ethiopia chicken and poultry industry: opportunities in this sector

Ethiopia chicken and poultry industry: opportunities in this sector

Investment opportunities in the poultry sector in Ethiopia

Over the last few years, the Ethiopian Government has prioritized the transformation of the agricultural sector of the country. The country has devoted time and effort to craft the Livestock Master Plan (LMP) which will serve as the roadmap to develop their livestock sector.

The value chains within the Ethiopian livestock sector are:

  • Crossbred dairy cow
  • Red meat-milk
  • Poultry

Livestock Master Plan objectives

According to the LMP, livestock value chains were identified through market research to meet the socio-economic objectives which are to:

  • Reduce poverty
  • Achieve food and nutritional security
  • Contribute to economic growth
  • Contribute to exports and foreign exchange earnings
  • Contribute to climate mitigation and adaptation

The 2 primary objectives, however, are to match the national consumption level of poultry products with production levels and boost chicken consumption as compared to other meats, from the current 5% to 30% by 2030.

Opportunities in the Poultry sector

The poultry sector, as indicated by market research, has wide room for development and opportunities in order to meet the wider objectives outlined by the Livestock Master Plan.

Lack of knowledge

One challenge in the poultry sector are the various components of the hatching process. In a survey conducted, the concerns of the respondents include a shortage of knowledge of machinery operation, maintenance, and repairing skills. Furthermore, the expensive feed was also cited as being one of the main reasons to not perform at full capacity.

While this is a major problem for the farmers, it can be an opportunity for investors and businessmen. They can set up a feed businesses which can create more competition and eventually lower the prices of the feed.

Lack of veterinary production

Moreover, veterinary medicine in Ethiopia is very limited. Currently, only one company is producing veterinary products in the country. This aspect can also be a great opportunity for investors. According to Dr. Yohannes Getinet of Equatorial Business Group, “The veterinary pharmaceuticals manufacturing sector is in its infancy stage; this is one area where multinational or foreign companies can come and create joint ventures with local business counterparts.”

Opportunities for Ethiopian farmers

Some small-scale farmers still rely on intermediation to sell their produce as they lack the appropriate market research needed. The people acting as intermediaries add extra pricing to the produce when selling it to the market.

Pieter Swanepoel, Manager of Ethiopia for Astral Foods, once mentioned that the middlemen have complete control over the supply and demand of the product. This situation is an opportunity for investors by finding business ideas that will close this gap between the market and the farmers.

The Livestock Master Plan communicates very ambitious targets for its livestock production. Hopefully, more investors will see the advantages of investing in Ethiopia’s poultry sector. For a detailed insight into this sector, utilise market research reports devised by field professionals.

This entry in Africa & ME was updated on August 3, 2017 by specialist.