Rabobank: African poultry sector primed for investment

The bank finds the African poultry sector needs investors to strengthen the value chain linking grains, feed and meat.

Poultry demand will increase by more than 60 percent over the next 20 years, according to a report by Rabobank.

However, investment in response to this growing demand has been disproportionately concentrated in Asia, Europe and the Americas, while demographic trends and consumer preference are driving a large increase in poultry and egg consumption in Africa.

The report finds the African poultry sector needs investors to strengthen the value chain linking grains, feed and meat.

Poultry and eggs have seen the biggest increase in demand compared with other protein sources. Poultry operations are easy to start and expand compared with other protein sources, due to short payback times. As a result, it tends to have higher availability than other protein choices.

Investors in an African poultry sector that is less crowded than those in Asia, Africa or the Americas also stand to gain from global increases in consumption, as poultry markets shift away from national and regional markets and become more globalised.

Olam’s chief executive for Africa, Venkataramani Srivathsan, told Agri Investor in April that Nigeria, where his company has set up a feedmill and breeding operation, has an underserved poultry market and a dearth of quality feed sources.