According to the Poultry Association of Zambia, the current scenario for poultry farmers and traders is quite challenging. Due to the depreciation of the kwacha, the cost of feed has significantly increased, causing both farmers and traders to face huge losses.
The Association’s Executive Manager, Dominic Chanda, has reported that the impact of increased feed prices is not being transferred to consumers due to stiff competition in the industry. The poultry industry operates on a market-demand basis whereby prices are adjusted upwards if the cost of feed or chicks increases. However, the challenge lies in the resistance from customers, which makes it difficult for traders and farmers to pass on the increased costs. Consequently, the industry is experiencing deteriorating profit margins, and farmers and traders are continuing to incur losses.
Mr Chanda has stated that the industry looks forward to a time when the local currency stabilizes, allowing industry players to maximize their profits. However, currently, the cost of inputs is continually rising, while the prices of chickens have remained static. The industry is hoping for a solution to this problem, which would enable them to adjust prices accordingly and recover their losses.
