The stock feeds industry is operating at 29 percent capacity utilisation which has resulted in high fixed costs per unit of feed produced, the Livestock and Meat Advisory Council (LMAC) has said.

In an industry update, LMAC economist Dr Chrispen Sukume said players in the sector could soon face a challenge in acquiring raw materials as Zambia could have overestimated production.

“The intense competition in the stock feeds sector has kept prices relatively stable however capacity utilisation at 29 percent is still very low, leading to high fixed costs per unit of feed produced.

“The impending drought will make raw material acquisition a challenge as Zambia, a reliable supplier of GMO-free maize and soya may have over-estimated production.

‘‘This is further compounded by the fact that there is competition from other countries in the region that are also looking at Zambia for supplies,” he said.

Dr Sukume said there has been an increase in the supply of slaughter animals in the beef sector due to the current drought which has resulted in prices falling to record lows with beef economy grade now wholesaling at $2,80/kg.

He said this has put a downward pressure on other meats such as pork and chicken as beef is the preferred meat.

He said the pork sector is showing signs of recovery following de-stocking in the 2012-2013 period.

He however said there is renewed stress in 2015 due to competition from depressed prices of beef and chicken as well as the outbreak of African Swine Fever which has the potential to wipe out the whole industry.

Turning to the poultry sector, Dr Sukume said the broiler industry continues to grow from strength to strength with setting of new monthly and yearly records.

“Day old chick production peaked at 8,4 million in September 2014 compared with the previous peak of 6,2 million in October 2013.

‘‘Total chick production in 2014 was 78,4 million, a 22 percent increase over the record of 64,4 million achieved in 2013,” he said.

He noted that the dairy sector has started recording positive results from the private-public sector Dairy Re-vitalisation Program funded by a 10 cent per litre surtax on milk imports aimed at building the national dairy herd.

In the fish sector, he said production has increased to10 000mt from 8 300mt in 2013, adding that there has been increased interest in aquaculture in the smallholder sector with the launch of the Zimbabwe Fish Producers Association last year.

Dr Sukume noted that there is encouraging interest in small livestock such as goats, sheep and rabbits, especially among the newly resettled farmers with the Goat Producers Association being launched in July 2015 and the Rabbit Producers Association launched in August 2015. — Wires

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