The prime minister of Uganda, Robinah Nabbanja on November 24, 2023, officially launched Kenchic Uganda, adding to the competition already in the market.
In an interview with Timothy Nsubuga, the general manager of Kenchic Uganda, NOMSA MUFANDAUYA, explains why the market for chicken products is still big enough for more player
What does Kenchic Uganda deal with?
Kenchic Uganda is a poultry producer driven by an unwavering passion for empowering poultry farmers and enhancing their livelihoods. Our purpose is to enable shared prosperity through sustainable food production. Our commitment to sustainability is at the core of our business, and we take responsibility for preserving the environment in all areas where we operate.
We integrate sustainable practices throughout our entire value chain, creating a positive impact for generations to come. This philosophy touches every component of our value chain, supporting different players by adding value to farmers; suppliers; government agencies; distributors; agents, and veterinary departments. We pursue innovative digital approaches to poultry farming, granting farmers immediate access to support, training, and guidance in their farming, and securing sustainable livelihoods.
Why has Kenchic decided to launch in Uganda?
Opening a state-of-the-art hatchery in Uganda was a natural next step as it would bring us closer to the customers and deliver the freshest day-old chicks in the market. We have essentially responded to what our customers have told us.
Looking at the metrics, Kenchic has chosen to launch in Uganda due to the rapid growth of the poultry industry. With Ugandan poultry production projected to increase significantly, reaching 76,000 tonnes by 2026 from 70,500 tonnes in 2021 — an average yearly growth of 1.2 percent — the market presents a promising opportunity for expansion.
Additionally, there’s a noticeable trend among poultry farmers in the country toward heightened awareness of animal welfare and a commitment to delivering the best-quality chickens to the market. Kenchic aims to tap into this growing market demand while contributing its expertise in maintaining high standards of poultry farming and product quality.
There are some who say that the market is already saturated. Is this assessment fair? What are some of those numbers that motivated you to decide to launch in Uganda?
While some may argue that the market is saturated, we at Kenchic believe in setting new standards. Our commitment to producing day-old chicks of the highest quality, bred through the safest practices, positions us uniquely in this landscape.
The numbers that motivated our decision to launch in Uganda reflect not just the current market conditions but our confidence in meeting the increasing demand. Despite perceived saturation, we have observed a growing segment of discerning customers seeking premium poultry products. Our projections indicate a clear trajectory for growth, where our focus remains on delivering unparalleled quality and innovation in the industry.
There are a number of high costs of production for this kind of business. How do you intend to limit your costs?
For us, reducing production costs is primarily focused on the farmer. Our focus at Kenchic is in supporting farmers purchasing day-old chicks across the value chain; from production to marketing.
This is guided by our purpose as Kenchic: Enable shared prosperity through sustainable food production. To achieve this, we prioritise equipping local farmers with top-notch farming practices, fostering growth in both subsistence and commercial poultry farming.
Implementing a cost-effective hatchery vaccination procedure significantly reduces labour costs, minimising human errors, and expediting the vaccination process. All this benefits our farmers in terms of reduced operational expenses. Our initiatives extend beyond mere corporate social responsibility; they represent our steadfast commitment to uplifting farming standards, not only within our purview but also across the sector, ultimately enhancing the livelihoods of our stakeholders.
We acknowledge that implementing these support structures has increased our production costs. However, as a responsible business, we firmly believe in not compromising the health and safety of our consumers for quick profits.
How long have you been in the Ugandan market and how is it different from other East African markets?
Kenchic Uganda’s group of companies has been on the market for more than 25 years. We are one of the oldest suppliers of chicks in Uganda and the region.
The Ugandan market is the hub for opportunities. The population is invested in the tradition of utilising their traditional land for production and, as Kenchic Uganda, we would like to promote poultry production from small scale to large scale, starting with what each farmer has on the ground.
If we compare with the markets where we already exist, Uganda is going through the transition to becoming its own producer for poultry and poultry products, hence the investments we are making.
Where do you see Uganda’s poultry industry in the next 10 years?
In the next decade, Uganda’s poultry industry seems poised for significant growth and evolution. The projected increase in demand for poultry aligns with a global trend of seeking healthier and more affordable protein sources. This surge in demand presents an opportunity for the poultry sector to expand and meet the needs of a growing population.
The shift towards sustainable practices in chicken production reflects a positive trend in consumer consciousness regarding animal welfare and food safety. This shift is pivotal as it aligns with global concerns about ethical farming practices and safe food consumption. Our initiative to train and work closely with farmers, particularly those collaborating with Kenchic, puts them ahead in this paradigm shift.
What export markets are you looking at, and why?
While we recognize the potential of export markets, our immediate priority lies in consolidating our presence locally, ensuring that our farmer partners trust and benefit from our products and services. This approach aligns with our purpose. We believe that building the local front will be key in laying a strong foundation for potential future expansions into export markets
How much local content are you looking at in this business line?
As we embark on our journey in Uganda, our commitment to local engagement stands firm. Our vision for the first year involves more than just numbers; it’s about building a thriving community ecosystem. To kick-start this, our goal is to create employment opportunities for 1,000 individuals, directly and indirectly, within the community.
One key aspect of our plan involves sourcing from local producers. By doing so, we aim to not only bolster our business but also support the growth of local enterprises. This approach not only ensures quality sourcing but also contributes to Uganda’s economic development.
