High soybean prices in Zambia and Malawi are significantly impacting poultry production costs in the region. Climatic conditions contributed to reduced soybean output, leading to soaring feed prices. Small-scale producers are particularly affected due to lack of price leverage. Addressing market concentration is necessary for maintaining poultry industry’s competitiveness and resilience.
Poultry serves as a vital protein source for the increasing populations in East and Southern Africa, making soybeans essential for poultry feed. High soybean prices threaten poultry production in Zambia and Malawi, as these costs comprise 60%-70% of production expenses. Independent small-scale poultry producers particularly struggle as they are reliant on open market feed prices and lack the scale to influence costs, unlike large producers who source their own.
The challenges faced by soybean production in Zambia and Malawi due to climate impacts and market concentration have significant implications for the poultry industry. High soybean prices jeopardize food security by making poultry production more costly, especially for small-scale producers. To ensure sustainability and competitiveness, a regional approach to monitoring market dynamics and competition is crucial.
Original Source: theconversation.com
