THE poultry industry in Zimbabwe tumbled by 8% in the first half of 2016 after producing 37,2 million broiler day-old-chicks compared to the prior year, an industry official has said.
BY MTHANDAZO NYONI
In an industry update, Zimbabwe Poultry Association (ZPA) chairperson Solomon Zawe said the sector was facing challenges such as shortage of cash, delays in salary payments for civil servants who form the largest block of formally employed workers in the country and competition from low priced beef coming onto the market due to drought-induced destocking.
As such, the industry was facing a gloomy future, he said.
“The reduced demand is likely to continue exerting pressure on the industry for the rest of the year. Production is being reduced in response to the declining demand and already, there are signs that producers are deflocking and reducing point-of-lay placements,” Zawe said.
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“This is reflected in the drop in demand for layer feed as well as a decline in the price of point-of-lay pullets. Some breeders have also reduced production of point-of-lays and are selling them for as low as $5 per bird.”
Zawe said while production of hatching eggs was 3% higher in the first half of 2016, imports were 39% lower, resulting in 10% less total hatching eggs.
“This is reflected in a reduction of 8% in broiler day old chick production (6,2m per month) compared to the same period in 2015. Chick prices also continued to decline and averaged $61 per 100 chicks in June,” he said.
Zawe however, said formal broiler meat production increased to 3 719 metric tonnes in June from 2 551 metric tonnes in January.
The monthly average number of birds slaughtered and total dressed weight of broiler meat in the large scale chicken abattoirs in the first half of 2016 was 1,8 million birds and 3,050mt, 6% and 2% lower than the same period in 2015, respectively, Zawe said.
He said average monthly production of 3,331mt in the second quarter of 2016 was accompanied by an increase in average stockholding of 1,078mt per month and reduced producer prices to $1.81/kg live weight.
“Total broiler meat production in the first half of 2016 is estimated at 9,507mt per month, 5% lower than the same period last year and is largely due to decreased activity in the smallholder sector,” he said.
Zawe said broiler wholesale prices in the period under review remained soft and were between 9 and 14% lower than the same period in 2015. The average producer price was 1% lower and the whole bird price was 7% lower, he said.