Piggery and poultry market roadmap for sustainable value chain development
The poultry and piggery sector in Uganda provides significant opportunities for the Dutch private sector, knowledge institutes and investors. Demand for both products is rapidly growing, due to an increasing population and a growing middle class. Both chicken meat, eggs and pork meat are popular proteins, whose consumption is benefiting from an increasing consumer demand for ready to eat products. To map the opportunities for the Dutch private sector to contribute to the development of these sectors, the Dutch Embassy commissioned a piggery and poultry market roadmap report.
The poultry and piggery sectors in Uganda, although having common features, are in significantly different stages of development. Where piggery is still in a primary stage of development, the poultry sector is advancing to a more professional value chain.
There are number of large players in poultry whose production processes and methods are at near European standards. Overall, poultry production is estimated to be significantly higher in the country than official figures indicate. Within the layer sector, a segment of growing middle-size farmers has been identified. However, in order to not be outcompeted by the large integrated players, middle-size farmers will have to intensify their production and adopt modern technologies.
The pig value chain is characterized by many breeders and a limited number of commercial pig fatteners or slaughterhouses. Traders wield high market power, lowering market prices and profitability for farmers. Key interventions to spur growth are investments in slaughtering facilities coupled with awareness creation of the benefits of quality pork meat among pork joints owners and farmers.
Both sectors are highly influenced by the fluctuations in maize prices, which is the primary component of feed. This leads to over- and under-supply throughout the year, disrupting effective capacity usage in all segments of the value chain. As well, increased foreign demand for soy is increasingly limiting the domestic availability of available proteins for feed input.
In response to the challenges in the sector, ten comprehensive interventions have been identified. These present opportunities for the Dutch private sector, education institutes and investors to contribute their expertise. These are as follows:
- Improving the maize value chain;
- Improving vocational livestock education;
- Increasing production of alternative proteins for feed;
- Improving locally available poultry genetics;
- Investment in local feed production;
- Promoting semi-intensive production for poultry farmers;
- Leveraging slaughtering investment for piggery value chain development;
- Promotion of nutritious and safe poultry products;
- Improving locally available piggery genetics;
- Key regulatory reform.
In conclusion, the report offers detailed information for private sector players to identify opportunities. However, most importantly it forms the foundation for a call to action of businesses, government and academia to work together towards sustainable value chain development. The next steps will include a Dutch and Ugandan round-table with stakeholders interested in these market to disseminate information.
If your company is active in the poultry or piggery sector, is interested in further developing its presence in Uganda or would like to participate in the round-table, please feel free to reach out.