Market Assessment

Poultry Sector Study, DFID 2019

    Summary of results
    Rural household food security – Investments in health systems that deliver quality medicines and vaccines to backyard farmers can yield the largest benefits in this area. Up to 80% of households in rural areas keep some indigenous chickens, and simply helping these farmers to “hang in” by improving their flock’s overall health can help translate into improved household food security and nutrition1. However, attempting to commercialise indigenous poultry systems is not recommended, and providing options for farmers to “step up” to small commercial poultry requires a shift in sophistication with the addition of hybrid genetics and commercial feed, and won’t be appropriate for every farmer in every location.

    Widespread provision of low-cost protein – All consumers will benefit simply by having greater access to low-cost, high-quality chicken and eggs with poor households benefiting the most. Supporting large-scale commercial farms to increase their efficiency and distribution will bring prices down and increase consumption with accompanying increased nutritional outcomes for poor households. There are many avenues available from financial assistance for scaling-up output to promoting innovative slaughter and processing technologies and policy assistance on issues such as reduction on input and output VAT for stock feed production. As many large-scale companies struggle to access sufficient quantities of quality soybeans at a competitive price, investing in feed inputs production can stimulate growth in this segment which can have knock-on benefits for small crop farmers that can sell to this growing market. In addition to these ‘trickle down’ benefits to the poor, there are models of serving the needs of poor consumers more directly / deliberately by offering lower quality parts of chicken to them, especially as by-products from production of ‘dressed chicken’ for higher end markets.

    Sustainable inclusive growth - There is an exciting opportunity for DFID to play a major role in developing a “medium” model that supports SME producers as well as a range of SMEs providing services to the sector (such as vaccine distributors and brooding houses). This area leverages new research and technology (especially the rapid growth and success of dual purpose hybrid poultry across SE Asia and Africa) and focuses on markets, skills and finance as intervention areas. While the tendency to focus directly on the poorest farmer is understandable from a development point of view, it is important to keep in mind the whole system and job creation via SMEs as well as the knock-on impact they have for the rest of the chain.