2014 E.C. (2021-22 G.C.) has been a rather rough year for those engaged in poultry farming, a newsletter by Precise Consult shows. The main culprit was identified to be the shooting price of poultry feed, of which maize is a primary component and is perhaps key to overcoming the problem.

Poultry feed is made up of 65-70% maize, 25-30% soybean, 3% premix (vitamins and minerals), and other ingredients such as limestone, wheat bran, and other protein cakes. Feed costs account for 70% of poultry production, and these prices are determined by the cost of the necessary raw materials.

The newsletter reveals that 100 kg of poultry feed has gone from around Br.1100 in April 2021 to about Br. 5000 in April 2022, an astounding fourfold rise. This among other minor reasons has resulted in over 15 poultry farms halting their operations, according to the Ethiopian Poultry Producer and Processors Association (EPPPA). Furthermore, the rise in feed prices has pushed up the cost of eggs and chickens. During Easter 2022, the price of chicken increased by 82% over the previous year, while egg prices increased by 50%.

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Ethiopia’s leading producer of day-old-chicks and poultry feed, EthioChicken Group is set to acquire a US$10 million loan from IFC to enable it implement its 5-year program.

Under the company’s growth plan, it seeks to construct two new breeding farms with a capacity of 60K bird each and one new hatchery facility, expected to cost US$16.2 million. The two new breeding farms will be built in SNNPR region and Amhara region, while the new hatchery will be built in SNNPR region. In addition, the group will utilize the financing to boost its working capital for purchase of parent stock birds; and refinance an existing long-term loan.

EthioChicken Group consists of three operating companies in Ethiopia i.e., AGP Poultry PLC, Mekelle Farms PLC and Andasa Poultry PLC; and two holding companies in Mauritius i.e., Agflow Ventures and Agflow Poultry.

For IFC loan, the three operating companies will be co-borrowers and the two holding companies will be guarantors.

Other than the financing, IFC will undertake standard setting assisting the group to develop Environmental Health and Safety (EHS), and social practices in line with international standards.

To read the full article follow this link IFC seeks to issue US$10m financing to Ethiopia’s leading poultry company EthioChicken Group