Overview Of Poultry Farming Sector In Zambia By Analysing Hybrid Poultry Farms Company

Introduction

One of the most important sector of the Zambian economy is Agriculture and particularly important but not looked much upon is the poultry industry. A poultry farm is simply a place where domesticated birds are raised, and poultry farming involves raising these animals for consumption purposes. Farms have chickens, turkey, geese, and ducks. The animals are mainly raised for their meat and eggs, chickens being the most popular choice. Chickens raised for meat are called broilers while those raised for eggs are called layers. This assignment will focus on the agricultural sector particularly poultry farming of one of the major companies Hybrid Poultry Farms and a further look at this section in Zambia specifically.

Background of Hybrid

Hybrid Poultry has been in operation for atleast 60 years. It first started out as a broiler farm and has since expanded into one of the leading vertically integrated firms. It participates at three main levels; that is as a primary producer, processor and animal feed manufacturer as obtained from Samboko, Zulu-Mbata, Chapoto (2017).

Primary Producers

Hybrid Poultry having started in the 1960’s while other primary breeders only started operating in the early 2000’s. Total installed capacity at the primary producer level is 1, 363, 000 birds per week. “In terms of market shares, 70 per cent of the market is shared between Ross Breeders, Hybrid Poultry, and Quantum Foods” as written by Sutton and Langmead. With rising competition from the company Zamhatch, the market has been split. Though Hybrid and Ross breeders are one major competitors their share capital and profits have been reduced.

Processors

According to Samboko, Zulu-Mbata, Chapoto (2017) “In 2016, the installed processing capacity in Zambia stood at 64, 715 metric tons per month. However, in 2015 only 3. 3 per cent (2, 125 metric tons per month) was utilized by the major processing firms”. Zamchick is the largest processor in Zambia followed by Verino - which is co-owned with Hybrid. Other competitors include Southern Chicken, Crest Chicken and Supreme Chicken. Thou these companies have recently entered the market. Animal feed manufacturer”.

Key firms producing animal feed in Zambia include: National Milling Corporation (NMC), Novatek Animal Feeds, Tiger Animal Feeds, Nutrifeeds, Pembe Milling, Simba Milling, Olympic Milling, and Emmans Feed Enterprises, ” as written by Samboko, Zulu-Mbata, Chapoto (2017). Some feed firms are owned by producers of broilers, so as to feed their chicks and keep them healthy and grow steadily. Samboko, Zulu-Mbata, Chapoto (2017) also gives examples like, “Nutrifeeds which supplies to Ross Breeders, Tiger Animal Feeds supplies to Tiger Chicks, while Novatek is Zamhatch’s (and Zambeef’s) feed supplier. ” while NMC has partnered with hybrid and provides them with feed.

Below are the forces affecting hybrid in their industry as show by the potters five forces.

Zambian Poultry Industry

The poultry sector has various investment opportunities, expected returns as well as Companies seeking the different sources of revenue. “Notwithstanding lack of data on Zambia’s poultry imports and exports, a study established that the Zambia poultry has been growing steadily for the past five years averaging around 8% and 20% for broilers and layers annual production respectively” as recorded by Agro Pro Focus Reports (2014). Poultry production increase is attributed to a number of factors such as national consumer disposal income, increase in population. Buoyed by growing middle income class, poultry breeding investment, processing and production as well as increasing poultry feed ingredient of maize and soya beans. According to Agro Pro Focus “Even though agriculture only accounts for 8. 6% of total GDP, the agricultural sector employs 60% of total labour force. Of the total agricultural sector 48% is related to the livestock. The poultry industry anchors on the small and medium enterprises that operate 60% of poultry production farms”. However, small scale farmers in Zambia lack investment opportunity to increase income further and develop new technological farming methods.

Changes in the Industry

There are many changes taking place in the industry in Zambia and the main factor that has caused these changes are economic fluctuations. “Another factor to consider is climate change. More than 60 per cent of Zambians live and work in rural areas largely depend on agriculture sector which is largely weather dependent, ” as researched by Zengeni. Climate change leads to increased food insecurity and poverty. One major impact on this industries development (i. e poultry sector) is the constant fluctuating exchange rate of Kwacha. On every occasion this reflects on the cost of farm inputs and feed raw materials. “Since maize and soy beans are integral part of feeding poultry their cost and availability make a huge difference in poultry production dynamics in the country. Government policies on import and export do have a direct bearing on the industry. Besides agriculture and livestock development, health of mining industry is cardinal to Zambia’s prosperity” as highlighted by Anthony Chacko. Thou such feet's as increase in technology have made poultry breeding increase. Hybrid ships about 20000 chickens to its processing plant Verino daily which processes about 18000 chickens on average daily to consumer stores. Such is only possible by increase in technology which has led to good profits.

Conclusion

The poultry farming sector is a huge contributor to the agricultural industry. Especially in Zambia there are various companies that compete to gain customers and hybrid is one of the largest companies that participate intensively in this industry. It raises chicks until fully grown, then ships them to its partner company Verino and also forms a contract to get feed from NMC. Thus the company has been able to diversify and is well known for its brands. It greatly contributes the country's economic development by job creation and providing daily health chickens, sausages and eggs.