Ban on poultry imports; an opportunity to boost local capacity

The private sector should exploit the ban on poultry products from Uganda and Europe as an opportunity to recapture and strengthen their presence in the market, experts have said. They say the development presents a challenge for Rwanda to increase production and reduce dependence on imported chicken products, a situation that may also help cut the growing import bill, says Gael Murara, the founder and chief executive officer, GroceWheels, an online grocery delivery service in Kigali. Last week, government banned the importation of poultry products from the neighbouring Uganda and Europe following an outbreak of bird flu or avian influenza, a viral infection spread from bird to bird. Dr Geraldine Mukeshimana According to Dr Geraldine Mukeshimana, the Minister of Agriculture and Animal Resources, the intervention is meant to prevent the importation of the disease into the country to safeguard Rwanda’s nascent poultry industry. “Placing orders of chickens and related products (eggs and meat) from Uganda and European countries where the disease has been reported is suspended,” said Mukeshimana in a statement. However, some local entrepreneurs see a silver lining to the ban. “The ban may translate into high prices for poultry products in the long-run especially if Rwanda farmers don’t come in to fill the gap. However, all is not gloom as the development also creates an opportunity for local farmers to regain the market by increasing production and quality, said Murara in an interview. Murara added the ban also challenges Rwanda to rethink its position on local poultry production and marketing. “First all, the poultry industry in Rwanda is currently characterised by the co-existence of two systems, the rudimentary village poultry keeping and industrial poultry segment that is still in its infancy stage,” Murara said. The entrepreneur said this why production is low locally, calling for imports to meet demand for poultry products. Rwanda has placed a ban on poultry imports from Uganda and Europe following an outbreak of avian influenza. / File. Though this poses a serious challenge, especially for suppliers, it also creates opportunities for the private to invest in what has become a lucrative business, according to Jean Baptiste Musabyimana, the general manager of Agri-Business Solutions, which deals in poultry farming in Bugesera District, Eastern Province. Musabyimana said Rwanda is still a net import of poultry products including eggs and chicken, which offers a great investment opportunity for enterprising farmers and business community to exploit and become major players in the sector. Analysts, however, say that without alternatives, the price of chicken products could increase further and push up the country’s inflation. Emmanuel Nkusi, an agronomist, said government should step in and give farmers more support to fill the gap in the short to long-term. “There is no reason Rwanda should be importing eggs and chicken when we can support our poultry sector and help players to increase production to meet demand,” Nkusi said. He added that there is need to produce sector inputs locally as part of efforts aimed at supporting the sector to improve output and quality. The country still lacks a well-developed poultry industry, posing investors a challenge; experts say the shortage presents immense opportunities for the private sector. What current figures say About 80 per cent of imported poultry products are from Uganda, according to the Ministry of Trade, Industry and East African Community Affairs estimates. Quality challenges Meanwhile, importers have expressed concerns over poor quality of some of the poultry products sourced locally. They say among the many reasons they import from neighbouring countries is because “local suppliers are not meeting quality and face issues of sustainability”. Janet Munyaneza, an importer and supplier of eggs said, the ban has impacted on her sales and business profitability “because you can’t find farmers with enough eggs to supply to our clients”. “We have contracts with hotels and restaurants, so the ban will definitely impact on the business,” she told Business Times over the weekend. Boosting local capacity Sector experts believe Rwanda should leverage technology to boost poultry production and reduce dependence on imports. According to Musabyimana, one can produce 18,000 eggs per day from about 20,000 birds by harnessing technological means of production. “What farmers need is the right agronomical skills and technology to produce quality poultry products that are competitive on the market,” he noted. Singaporean-based investor Shumei Lam, who is also the managing director and proprietor of Poultry East Africa Limited in Bugesera, said the firm is able to produce 5,500 birds per week and sells one tonne of broilers in different hotels across the country by harnessing technology. She urged government to attract more investors into the sector as the best solution for Rwanda that will also have a multiplier effect on the economy. “It may help lift Rwanda from being a net poultry importer to a key producer in the region that can eventually become a net exporter of poultry products,” she noted. Both government and the private sector have been working to boost poultry production. Minister Mukeshimana said the ministry is working with poultry farmers to enhance skills and capacity and hence increase productivity. Last year, government leased the Rubirizi National Hatchery to Flow Equity, an American firm, for 25 years as part of efforts aimed at availing day-old chicks locally and at affordable prices. Flow Equity is expected to revamp the facility to increase production, which may help reduce importation of day-old chicks and, eventually chicken and eggs. Another modern hatchery owned by South African businessman Themba Mashinini was last year inaugurated in Musanze District, Northern Province with the same objective. Murara said, however, that whatever the situation Rwandan farmers and the business community should be in position to satisfy the local market going forward. He noted that expanding local production will save the country’s foreign exchange and also create more jobs for Rwandans along the value chain.

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Ban on poultry imports; an opportunity to boost local capacity