Government has lifted the suspension of the issuance of export permits for day old chicks, stock feed and hatching eggs with immediate effect. The ban on the issuance of export permits came into effect in July 2021 due to the high prices of stock feed and day old chicks as well as reduced availability on the local market.
This follows a Zambian Business Times – ZBT reports of increased drowning of excess day old chicks and the expanded production capacity that could not be taken up by the local market. ZBT had earlier reported that the Zambian government had failed to make a decision despite calls for resuming of export by the Poultry Association of Zambia – PAZ. See earlier report https://zambianbusinesstimes.com/over-1-1-million-day-old-chicks-drowned/
And the Zambia National Agribusiness Development Strategies Technical Group Vice Chairperson Munyaradzi Mulonda has welcomed government’s move stating that this will earn the country the much needed foreign exchange that will help stabilize the Kwacha.
Mulonda noted that there is more money in the export of the two commodities as a bird fetches around $1-$1.50 on the export market, adding that fertilized eggs are also fetching good prices therefore the need to take advantage of the export market.
He explained that this development will allow the industry to grow and companies that have been operating at 50%-60% capacity due to reduced demand on the local market can now produce at full capacity noting that this will also encourage more players to venture into the business
“The lifting of the ban on export of day old chicks and fertilized eggs is very good because it’s going to allow us to expand our production for chicks and eggs. It also creates an alternative market which can also bring in foreign direct investment so it’s a very good initiative by government to lift that ban, we support that”, he said.
Mulonda who is also the Founder and President of Sub-Sahara African Farmers Organisation (SSAFO) however said government should give producers of day old chicks and fertilized eggs an export quota in order to avoid creating shortages and price hikes of the commodities on the local market.
He added that government should regulate the exports in order to ensure that the local market is satisfied first and exporters only truck out the excess, as this will keep the prices on the local market stable.
“Exports should not be left open, government should give export quotas as it is done with milling companies, see how much they produce and allow them to export a certain quantity. Do not let them export more than the demand on the local market”, he said.
“Leaving it open can bring shortages on the local market. We do not want to see a situation like what was happening last year where you order in June and you are told you will collect your order in September or October. Chicken prices can go up due to market forces such as supply and demand where demand increases and outweighs supply, prices go up as hatcheries will concentrate on exporting at the expense of the domestic market as they will have a higher earning there”, he said.
