Poultry Development in Eastern Africa, a regional perspective: Phase October 2017, Poultry Africa, Kigali.

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1 Poultry Development in Eastern Africa, a regional perspective: Phase October 2017, Poultry Africa, Kigali.

2 Why this study? To provide insights in prospects for poultry development per country, depending on regional interdependency. Asses which country will have best prospects to competitively develop poultry industry. To advice on more efficient economic and development policies for poultry value chain development in the region. 2

3 Three major trade regions in Sub Sahara Arica: Kenya, Uganda, Rwanda, Tanzania. 3

4 Cost price mainly determined by feed, and DOC s. Market of ingredients for poultry feed: complex, inadequate statistics. complex: many different ingredients, seasonal availability, statistics: unreliable, high percentage of non recorded informal trade, also across borders. Therefore, focus on maize value chain and DOC s in Eastern Africa as major cost components. 4

5 Regionalisation in poultry development East Africa, who is producing the maize? Production of maize in Kenya stable to 10 % in volume in past decade, but 1 M ha s more were needed in past decade to produce this. Arable land per country: Rwanda 1.8 M ha arable land Kenya 6 Uganda 9 Tanzania 10 Maize production Ethiopia, Tanzania en Uganda rose by 70 % ( ) against population rise of 27 %. 5

6 Regionalisation in poultry development East Africa: grain trade in practice. Source: BettaGrains. 6

7 Regionalisation in poultry development East Africa: Price of feed Price/ Kg of Feed in USD ($/kg) UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO 7

8 Markets, average price of day old chicks Price/ head of Day old chicks in USD ($/head) UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO Average price of day old chicks (layers) Average Price of day old chicks (broilers) 8

9 Source: FAO, Final draft report on study of poultry sub sector in Rwanda 9

10 Markets, Effects of interdependecies 10

11 Regional Trade Policies, Highlights Drivers for growth of intra regional trade in poultry products Land productivity Public agricultural expenditure Efficiency of customs clearing Quality of port, rail and connections between countries Road density Streamlining of regulatory environment Enforcement of laws and regulation Obstacles to regional trade Number of checks per 100km on road travel Corruption 11

12 Regionalisation in poultry development East Africa: Current situation in interregional trade. Africa: 17 different trade blocks in total Four major ones: EAC SADC COMESA ECOWAS Since 2015: TFTA, Tri Partite Free Trade Area 12

13 Common Market Protocol in EAC. Monitoring through: Common Market Scorecard Compliance scorecard: Non traditional trade barriers > traditional (tariff) Some reforms undertaken, but new measures announced 13

14 CMP: Liberalisation measured in legal compliance with commitments. Four most persistent NTF (Non Trade Barriers) in EAC: (1) The lack of harmonization of the working hours for customs authorities (2) Lack of coordination among institutions involved in testing goods (3)Lack of harmonization of road user charges/ road tolls (4) Numerous monetary charges required by various agencies in the EAC Partner States for exports of milk 14

15 Next step: further development of a competitiveness index for poultry production in the region and other African countries. Taking into consideration and work from existing indexes. Dutch African Poultry Platform 15

16 Regional Trade Policies, Highlights Next phase: Longitudinal study into actual feed (market) prices, to establish insight into differences in competitiveness between countries. Project phase 2: feed prices in East Africa phase 3: feed prices in other countries. 16

17 Regionalisation in poultry development East Africa. Thanks for your attention. Questions? 17