The poultry sector in Kenya could be in for a rough ride. Strong opposition has been expressed by local producers to a rumored US drive to enter the Kenyan market for finished poultry products. This occurs in the middle of continuing discussions between the two countries to establish a new Strategic Trade and Investment Partnership (STIP).
Leading this protest is the Poultry Breeders Association of Kenya (PBAK), which is the representative organization for hatcheries, breeders, and meat processors. They claim that the Kenyan government has not been transparent. The association asserts that it was only at a State Department of Trade-hosted stakeholders’ conference that they became aware of the US goal to export finished poultry products.
The possible threat to the domestic chicken sector is PBAK’s main concern. They contend that permitting unfettered importation of US-made, cheaper final poultry products will bankrupt regional farmers. Because of government subsidies and economies of scale enjoyed by the US chicken sector, Kenyan producers find it challenging to compete on pricing. Cheaper chicken from America may cause farm closures, employment losses, and a drop in total investment in Kenya’s poultry industry.
Fears of what occurred to Kenya’s maize sector after trade liberalization with other African countries was stoked by this proposed trade pact. Both domestic production and farmer income fell as a result of the flood of less expensive maize imports. Concerned about the poultry sector’s potential demise, PBAK notes that it is essential to Kenya’s food security and economic expansion.
On the other hand, proponents of the trade agreement contend that more competition will help Kenyan consumers. They think that less expensive American chicken would result in lower costs for customers, particularly those who are having financial difficulties. Furthermore, others contend that exposure to global competition may encourage Kenyan manufacturers to increase their productivity and enhance their output.
The Kenyan administration is caught in the midst of things. It is difficult to negotiate a trade agreement that is advantageous to both countries. Preserving the native chicken sector is of paramount importance, even as expanded access to the US market for Kenyan exports is desirable. The possible effects of the agreement on regional producers, consumers, and the general state of the economy must be carefully considered by the government.
Being open and honest is crucial during this negotiating process. Concerns raised by PBAK about not having access to draft proposals show how important it is for the government to notify interested parties. A successful outcome requires open discussion and a dedication to identifying a solution that safeguards national interests while promoting economic progress.
Both Kenya and the US have a lot to gain from the STIP negotiations. But avoiding the possible hazards calls for a measured approach, especially when it comes to delicate industries like poultry. A successful trade agreement will depend on finding a solution that promotes fair competition, safeguards Kenyan farmers, and benefits consumers.
