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Zimbabwean shops have been relying on selling imported goods including meat products, some of which pose a health risk to customers. Some of the hazardous meat products include ‘Chicken Cuts’ that are packed in unlabelled packaging that only shows the date of expiry date of November 2015.  The accepted international standard expiry date of poultry is only one year from the date of processing.

There is no indication of the country of origin, registration details of the processing plant, date of processing and expiry date, as required under the packaging laws and regulations of Zimbabwe.

The chicken meat is being sold in clear plastic packets, also devoid of information regarding source, plant of origin, production dates.
Furthermore, portions are loose in the packet (which suggests that the chicken was not frozen in the packet and was repacked into these clear bags) and shows yellow skin (indicating that the birds were fed on yellow maize, which is not the norm in Zimbabwe). This demonstrates the fact that:

a) the product has been imported;
b) the product has been repacked to avoid identification of the country of origin; and
c) there is no date of manufacture and the expiry date is in doubt.
The above raises serious concerns as these chicken meat imports are not reflected in ZIMSTAT data.
It is apparent that description of the product is being altered between export and import, presumably to evade payment of duties on poultry.

The SARS data show that approximately 2 000 tonnes of chicken was imported in the first six months of 2014 which was not reflected in the ZIMSTAT data, suggesting that a total $3 million in duties may not have been collected;
Chicken products appear to have been repackaged. If this is being carried out before being imported into Zimbabwe, then this would suggest that imports are either:
i) not being accompanied by Veterinary Health Certificates (which are completed by veterinary authorities in the country of origin, supported by non-manipulation certificate from the port); or,
ii) are being accompanied by fraudulent certificates; and
iii) are not being subject to Veterinary Release Certificates in Zimbabwe.

The purpose of the certificates is to safeguard the consumer and the livestock industry with regards to food safety and disease threat to the livestock industry. Only eight poultry processing plants in the United States of America, Brazil, Argentina and Uruguay have been cleared for exports to Zimbabwe by veterinary officials.

The questionable date of expiry raises concern about the actual date of processing and hence the safety and wholesomeness of the product. If the product, as indicated by the low price, has reached its expiry date, then the addition of a fictitious expiry date 15 months beyond the actual expiry date is of serious concern; In the same manner there are no permits being issued for the import of polonies; however, there is an abundance of imported polonies on the market.

The local industry cannot compete against the prices and volumes of these imported products which are being landed in the country at less than US$1 per kg.
Not only do these imports threaten the health and safety of the consumer and the livestock population, they also represent significant outflows of foreign currency, exacerbating the negative balance of payments.

These imports also jeopardise the viability of livestock production operations (including local value addition in the manufacture of sausages and polonies), particularly those in the smallholder sector, thereby threatening local employment, job creation and investment in the local industry.

Due to substitutability among meat proteins, the influx of imports affects the whole livestock sector.
Already prices are showing significant softening. In the past month, the wholesale price for whole chickens has decreased from $3,10 to $2,60 per kg, which has driven producer prices below cost recovery levels. Wholesale price of chicken breast meat has declined from $4,80 to $3,70 per kg.

Live commercial grade cattle prices have declined from $1,80 to $1,54 per kg live weight.
Wholesale pork prices have reduced from $3,90 to $3,70 per kg.

Wholesalers of locally produced meat products have also reported a 30 percent decline in sales since July 11. The influx of cheap imports has a detrimental effect on the Zimbabwe poultry industry which, however, continues to show tremendous growth since January 2009 and has surpassed previous peaks in production. In 2013, production of broiler day old chicks was 64,4 million compared to 37,5 million achieved in 1999, representing a massive 72 percent increase over the previous figure. In January 2009, broiler day old chick production was 0,7 million and has increased by 100 000 chicks per month to reach 7,4 million in June 2014.

Finance and Economic Development Minister Patrick Chinamasa acknowledged that. . . the poultry industry has become a source of livelihood for many households, including rural communities” and that “poultry rearing has offered income generating opportunities for our farmers, including those with limited land”.

He added that “various challenges have continued to undermine poultry production” including indications “that chicken imports are either smuggled or are grossly under-valued for duty purposes” and that “in instances of smuggling, the necessary veterinary and health hazard permit controls are undermined”.

To this end, the Minister noted “in order to level the playing field between imported and locally produced chicken, I propose to review customs duty from 40 percent to $1,50 per kg or 40 percent, whichever is higher, with effect from 16 November 2012.”.

Following the imposition of this duty, formal broiler meat production increased and averaged 2,600mt in 2013. While production of broiler meat from the large-scale sector has remained relatively static, estimated total production of broiler meat production, based on broiler chick sales, has continued to show month-on-month linear increases and is projected to have reached a mammoth 12,200mt in June 2014 .

From a study carried out in late 2013, it has been shown that half the broiler day old chicks are being purchased by over 17 000 small-scale operators per month in batches of less than 200 chicks at a time.

This suggests that more than 35 000 smallholder producers are active in the chicken industry in any one month. This study highlighted the importance of the small scale sector to poultry production and is the principle driver of the growth in day old chick sales. It is now estimated that the small-scale sector accounts for 70 percent of the broiler industry.
Up and down-stream investments in the poultry industry

The growth in the poultry industry has been accompanied by increased investments across the value chain, including the new establishment, and expansion, of current breeding and hatching operations; the construction of rearing houses (including environment controlled housing); retooling; construction of new abattoirs and expansion of existing structures as well as the revamping of distribution facilities and networks.

Each broiler bird consumes approximately 4kg of feed to reach market weight (2,6kg maize and 1,5kg soya beans), and therefore the growth in poultry meat production has been accompanied by significant growth in the stockfeed industry. Poultry feeds account for seventy-five percent of all stockfeeds manufactured.

Production volumes of stockfeeds have increased 85 percent on a monthly basis from 16,500mt/month in early 2012 to 30,500mt/month in June 2014. This increase has also been accompanied by significant local investments in terms of expansion, retooling and the establishment of new feed manufacturing plants.
The poultry industry is now estimated to consume 15,000t maize and 10,000t soya beans per month.

The single and most important cost driver in poultry production is the cost of feed. This accounts for a significant portion of the cost of day old chick and approximately 70 percent of the cost of rearing the bird to market weight. The two most important factors in determining the cost of feed are the cost of maize and soya. As Zimbabwe is not self-sufficient in the production of these grains, the stockfeed industry relies on GM-free imports and bears the significant added costs of transport and permits to acquire these grains.

Investment by the smallholder producer in the broiler industry
The cost of a day old chick is $ 0,70, approximately half of which represents feed costs to maintain parent and grand-parent stocks.
As already noted, each bird requires 4kg feed at an average price of $0,64/kg to reach market weight.

The smallholder farmer is estimated to be taking up 3.5 million day old chicks per month, an outlay of $2,5 million per month, and assuming 10 percent mortality, will invest a further $5,6 million per month on feed. Hence the estimated total monthly investment by the smallholder producer is estimated at $8,1 million per month.
In the first six months of 2014, Zimbabwe imported 5,193mt of meat at a declared value of $6,2 million.

This is equivalent to importing 3,9 million day old chicks and 13,800mt feed (9,000mt maize and 6,500mt soya beans)and represents a significant loss in business for local day-old chick producers and stockfeed manufacturers.

In conclusion, it is fair to note that apart from the phenomenal growth in the tobacco industry led by the small-holder sector, no other sector of the Zimbabwean economy has recorded better growth than the poultry sector.

Most of this growth has also been recorded in the small-holder sector which bodes well for achieving the objectives of the ZIMASSET development blueprint.
However, failure to address the issue decisively about the illegal and unfair importation of poultry products will:
Discourage investment in the livestock sector and reverse these gains;

Exacerbate the unnecessary drain on scarce national foreign currency reserves;
Raises concerns regarding the wholesomeness of the products being marketed; and
Places the health of the Zimbabwean livestock industry at risk.