Angola’s poultry production expected to rise by 17% in 2023 on improved economic environment

ANGOLA – Angola’s poultry production is expected to increase by 17% to 42,000 metric tons (MT) in 2023, driven by the appreciation of the local currency since the beginning of 2022 due to rising oil prices.

According to data released by the Angolan Ministry of Agriculture and Fisheries, poultry meat production in 2021 was 36,348 MT, a 21.7 percent increase from the previous year.

Since most production inputs need to be imported, the strengthening of the kwanza against the U.S. dollar has supported expanded purchases by poultry producers, and commercial banks have expanded lines of credit for the sector.

Expansion of Angola’s poultry sector has faced steep challenges, including a lack of domestic animal feed production, insufficient availability of veterinary medicine, limited numbers of chicken feedlots, generally poor infrastructure, and the prohibition of imports of GE feed products.

Despite these constraints, the Angolan government has expanded investment in national production as it seeks to diversify the economy.

For example, in July 2018, the government launched the Production Support, Export Diversification, and Import Substitution (PRODESI) program, the main objective of which is to reduce the country’s high economic dependence on the oil sector.

Another tool to boost national production is the Credit Support Project (PAC), launched as an instrument to facilitate the financing of private investment projects in PRODESI’s productive lines of goods and services.

It is important to note that the existing production infrastructure in the country is geared towards egg production, as it is a more competitive product than chicken meat.

The National Association of Poultry Producers of Angola (ANAVI) estimates egg production of 65 million to 70 million eggs per month.

Some of the companies operating in the sector include Aldeia Nova, a public/private partnership between the Vital Capital Fund and the government; Fazenda Filomena, Aldeia Nova, and Emirais.

There are a few large poultry processing facilities and several small-scale ones serving local producers including Avikuxi, Sociedade Avícola da Munenga, and Aldeia Nova.

During the period under review, Angolans are expected to demand more poultry products, with consumption expected to reach 312,000 MT in 2023, up from 306,000 MT in 2022.

With the consumption rate exceeding production, the country is expected to turn to the import of white meat.

However, according to a GAIN report by USDA, 2023 imports will remain stagnant at the 2022 estimated volume of 270,000 MT.

Angola’s poultry imports are guided by price, though chicken meat is the most affordable animal protein available in the country.

Under the PRODESI import substitution scheme, the Angolan government seeks to reduce its reliance on imports for a variety of products.

The government identified 54 products (mainly agricultural) for which importers must prove that there is insufficient local production before they are granted an import permit.

Poultry is on the list of products, but because demand is so high and production is limited, poultry imports have not been restricted thus far.

However, the new requirements have created additional bureaucratic hurdles for importers.

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