Kenyan poultry industry faces economic threat as US chicken imports loom
KENYA – Kenyan poultry businesses are sounding the alarm, warning of potential economic losses amounting to Sh172 billion annually if the United States begins exporting finished chicken products to Kenya under a proposed new trade agreement.
The Poultry Breeders Association of Kenya (PBAK) conveyed their concerns in a statement dated April 29, as reported by Business Daily Africa.
The poultry sector anticipates a significant 75% decline in demand for local chicken should the Kenyan market be flooded with imports from the US under the proposed Strategic Trade and Investment Partnership (STIP) between the two nations.
According to PBAK, the surge of American products poses a direct threat to the competitiveness of local poultry products, which are grappling with structural challenges such as high production costs.
This potential scenario could potentially result in an annual economic loss of Sh172 billion, impacting not only farmers but also the entire poultry value chain, including feed suppliers, hatcheries, processors, transporters, and veterinary services.
In a united stance against the influx of American poultry imports, the collective voice of Kenyan poultry stakeholders, comprising cereal growers, feed millers, breeders, farmers, distributors, suppliers, and experts, is vehemently opposing the move.
“We are facing challenges in competing with American suppliers who benefit from advanced technology and lower production costs,” explains the association.
They point out that the price of corn, a primary ingredient in poultry feed, stands at $190 per tonne in the USA, significantly lower than the $380 per tonne in Kenya.
This cost disparity translates to approximately a 50% reduction in chicken production costs in the USA compared to Kenya.
If the US gains access to the Kenyan market for poultry products, PBAK warns that local demand could plummet by 75%, resulting in an estimated shortfall of nearly Sh172 billion ($1.3 billion) annually.
Data from the Kenya Agriculture and Livestock Research Organization (KALRO) reveals that local production currently meets about 60% of chicken meat requirements and 50% of egg requirements in Kenya. To bridge the gap, the country relies on imports from neighboring nations such as Ethiopia, Tanzania, and Uganda.
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