They also argued the chickens were produced from genetically modified methods that were outlawed in the country. Government responded to the calls by introducing a protectionist policy barring imported chickens. ZPA chairman Solomon Zawe followed up on the ban saying it was good for the local industry, which until the ban was effected, had been facing unfair competition from relatively cheaper imports mainly from South Africa and Brazil.

Imported chickens were selling at prices as low as US$5 for a 2kg bird while local producers demanded as much as US$7 for the same bird. Zawe also acknowledged that there would be shortages of poultry products in the short term that would result from a high demand that came after the ban.
He added that the ban gave them confidence although some of their members were not fully geared to meet the high demand at the time of the ban.

But hardly two months down the line there was virtually no chicken in most shops and where it was available, the price (of full chicken) had shot from US$4 to US$8 dollars. Even Finance Minister Tendai Biti whose Ministry had effected the ban found himself wondering if the harsh pricing that had suddenly come to be associated with poultry products was what the poultry industry had been pestering Government to allow them to do.

In the absence of competition retail prices had risen while there was also a sharp decline in the uptake of the local chickens. Zimbabwe’s chicken producers had gone far off the mark in servicing demand.
There was an outcry from the public. The chicken products were just not there and when they were available, the prices were out of this world. Once again, Government was forced to intervene and lift the ban to allow the poultry imports to come in.

Finance Minister Tendai Biti defended Government’s decision saying the trade restriction had resulted in shortages and had seen prices shooting to unacceptable levels. In reaction, ZPA complained the decision should have been delayed to give the industry time to prepare for competition against cheaper genetically modified (GM) livestock.
The industry had not realised the full benefits of the ban, Zawe complained. Part of Zawe’s argument was also that the country was importing GMO fed livestock products, which were cheap and had 30-40 percent bran solution. He blamed some retailers for putting “unrealistic mark-ups” saying the average producer price for a chicken per kilogramme was between US$2, 16 and US$3.

Zawe further argued that some producers were still improving capacity utilisation following a scaling down of operations during the hyperinflationary period of 2008 when stock feed supplies were erratic.
ZPA was therefore not happy with Government’s decision to lift the ban on poultry imports and had wanted the trade restriction to stay in force until it recovered from the crisis that had seen production tumbling, triggering an acute shortage of poultry products. They felt the move was ill timed and threatened to erode the capacity gains the industry had achieved during the period of market protection.

Zawe said producers had managed to acquire new hatchery machines, which helped the industry to increase monthly egg output to three million eggs and to resume exports – a move that had seen weekly shipments rising to 500 000 eggs at some point.
The lifting of the ban argued ZPA had opened the market to low-cost genetically modified (GM) chickens from South Africa and Brazil making it difficult for local players to compete for orders. The cost of producing poultry is significantly high in Zimbabwe due to the country’s high cost of capital to finance operations and other contingent costs, for instance, the use of generators for power generation in the wake of recurrent power cuts.

While it is true that imports are unfairly competing against local products it is also a fact that the local producers are failing to satisfy demand. They are doing their best but at the moment they are still few, as most poultry producers are doing it on very small scales, which leaves them only meeting demand for a fraction of the population. Imports may need to be gradually pushed out of the market through raising duty while the local producers also pull up their socks and broaden their scale of production to commercial levels. Consumers are always keenly following the slow developments in the poultry industry – something that tends to tamper with their patience.

It is true that a watched kettle never boils so waiting for the industry to fully recover without accessing the poultry products is something that is difficult for people. Maybe it may make sense for citizens to make their own discretion – those who do not want the imports can opt for the local products with their higher prices while those who can not afford that can still go for the imports.

On the other hand, Government may need to review its policy on GMOs and maybe allow the technology also to come in gradually so that farmers can hold their own when competing against their regional counterparts.

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