An increase in soya prices could affect the poultry industry in Malawi and other countries, an analysis by the African Market Observatory (AMO) shows.
A publication by the institution indicates that spiralling feed prices, driven by a combination of climate challenges and market concentration, could lead to a surge in chicken prices.
Its recent research reveals that poultry feed accounts for 60 percent to 70 percent of total production costs, making soya pricing critically important to chicken affordability.
It further indicates that the situation has been exacerbated by environmental and economic challenges, with soya prices in Malawi surging by 48 percent between May and November 2024.
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“Despite Malawi experiencing a 20 percent drop in soybean production due to the worst drought in a century, prices dramatically escalated to nearly $900 per tonne by the end of 2024.
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“This price increase cannot be explained by production shortfalls alone, but also market concentration among soybean traders and processors,” the publication reads.
This is coming at a time chicken prices and prices for feed have rocketed in the past 12 months.
Our snap survey found that one of the feed suppliers in the country increased prices of feed mid this month to between K112,000 and K137,000 for a 50-kilogramme bag.
For example, starter feed was fetching at K137, 000 representing a 124 percent rise from K61, 000 in March 2024. Grower feed is now sold at K128,000 from K58,000 in March last year, Finisher feed is at K126,000 from K57,000 whereas Layers is at K112,000 from K47,000.
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Similarly, chicken prices have risen by about 150 percent to K15,000 from K6,000 in March last year.
In an interview Chairperson of the Smallholder Poultry Association Ernest Wyson said the current chicken production landscape is becoming increasingly challenging.
“The association is exploring innovative alternatives to traditional soybean feed to help farmers survive,” Wyson said.
