By Kingsley Jassi:
Malawi’s poultry exports have grown fivefold in three years, reaching $10 million in 2024 from $2 million in 2021.
However, concerns persist over industry monopoly, limiting benefits to small-scale players.
Speaking on the sidelines of a visit to one of the players in the poultry sector on Tuesday, Trade Minister Sosten Gwengwe said while the growth was impressive, the concentration of benefits among a few dominant players raised concerns about inclusivity.
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“The poultry industry is on the rise. In 2021, total exports were at just over $1 million but, by the end of 2024, it hit $10 million. But the question is, who is benefitting from this growth? That’s where dominance becomes an issue of interest at the ministry,” Gwengwe said.
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The ministry plans to open up value chain opportunities to ensure more inclusive industry growth, addressing long-standing concerns about companies strengthening their grip across the entire poultry value chain.
Recent research by Mwapata Policy Institute suggested that the industry could contribute up to $31 million to the economy annually, so long as there were requisite interventions.
The institute recommends removing value-added tax on soybean cake and veterinary products, expanding maize production and improving export processes, particularly for products destined for Mozambique, to reduce feed costs and boost industry growth.
Meanwhile, the Competition and Fair Trading Commission has halted CP Feeds’ proposed price adjustments for chicken feed pending an investigation into the company’s pricing practices.
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CP Feeds, one of the largest companies in the sector, cites numerous production bottlenecks leading to high operational costs and market prices.
The Mwapata study projects that proposed reforms could lift nearly 580,000 people out of poverty through affordable protein access, increased employment and enhanced food security.
The research also suggests that irrigation expansion and removing minimum farmgate prices for maize were crucial for ensuring stable maize supply and reducing price volatility in the feed sector.
Meanwhile, small-scale poultry farmers say the industry’s growth has not translated into benefits for them, citing challenges in accessing inputs and market opportunities due to vertical integration by large companies.
In a separate interview, Smallholder Poultry Association Chairperson Ernest Wyson said dominant players controlled the entire value chain, from feed production to retail markets, making it difficult for small-scale farmers to compete.
“For small poultry farmers to grow, it’s very difficult. We struggle to access chicks—you might book 500 chicks but only receive 50. We can’t even supply products to local markets effectively because large companies are bringing their products into our locations,” Wyson said.
He proposed the government’s intervention through policies that could restrict large companies to specific segments of the value chain, similar to South Africa’s model— where major players focus on hatching while smallholder ones handle chicken rearing.
“The government should introduce policies where big poultry farmers focus on hatching, leaving the growing of chickens to small-scale farmers. This would give smallholder players better access to inputs at lower prices and help them grow their businesses,” Wyson said.
The association further proposes reserving local markets for smallholder farmers while allowing larger companies to focus on national and export markets, thereby creating a more balanced industry structure.
