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Poultry sector in peril as feed costs double

The poultry industry is facing severe challenges as the cost of chicken feed has doubled from K75 000 to K150 000 per 50kg bag.

A note from ProtoFeeds, a leading poultry feed supplier, shows that effective 24 February 2025, the price of broiler feed (starter) has gone up to K160 000 per 50 kilogramme while starter feed for layers has gone up to K150 000. This is approximately double the previous prices.

This surge is driving poultry farmers to raise chicken prices, which may reduce consumer demand and worsen food insecurity in a country already struggling with inflation.

Poultry farmer Chikondi Kasambara described the financial strain as “depressing and defeating,” highlighting that the costs of day-old chicks, vaccines, and bedding have also doubled.

She said in a WhatsApp response: “To produce a chicken, it is only logical to double the price, which roughly means charging up to K25 000 per bird.

“Consequently, many farmers are reducing their profit margins to remain competitive against large-scale feed manufacturers, who can sell chickens at lower prices due to their economies of scale.”

While some farmers have explored the possibility of producing their own feed to offset rising costs, Kasambara described this option as economically unviable.

 “Feed manufacturers benefit from bulk purchasing, which lowers their costs. Buying ingredients in small quantities offers no savings, especially when considering transportation and mixing costs. Without the correct expertise, improper feed formulations can cause hormonal imbalances, stunting chicken growth,” she explained.

The rising feed costs are expected to have far-reaching economic consequences.

Christone Nyondo, a research fellow at the Mwapata Institute, highlighted the inflationary effects, noting that food comprises a significant portion of household expenditure in Malawi.

“Higher chicken prices will worsen food price inflation and reduce household affordability of a vital protein source. This is particularly concerning given Malawi’s already low per capita chicken consumption of 3.16 kg per annum compared to regional counterparts,” he said.

The poultry sector’s contraction could disrupt Malawi’s interconnected agricultural value chain, which includes the maize and soyabean industries.

A decline in poultry production would lead to higher chicken prices, job losses, and reduced rural income opportunities. Additionally, Malawi’s potential to export poultry to neighbouring Mozambique and Tanzania could be undermined, affecting foreign exchange earnings.

To mitigate the problem, Nyondo said in the short-term, removing the value-added tax on soyabean cake and imported veterinary products could help reduce feed costs, as well as implementing temporary subsidies for chicken feed to prevent further price increases.

For long-term sustainability, Nyondo called for measures to increase maize and soyabean production.

“Boosting maize yields from the current average of 1.9 metric tonnes per hectare to 2.9 metric tonnes through improved seeds, soil health, and agricultural extension services would help stabilise feed prices. Expanding irrigated maize farming would further mitigate seasonal price fluctuations,” the research fellow said.

Additionally, Nyondo advocated for expanding credit facilities tailored to smallholder poultry farmers to help them manage production costs and scale their operations. Investing in local production of essential feed ingredients would also reduce dependence on imports, although achieving economies of scale in the short term remains a challenge.

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