Reduce chicken feed prices, business owner urges govt

MANDE Chicken managing-director Tim Numilengi says the Government needs to start looking into options to reduce the prices of chicken feed.
“The cost of feed is massive,” he said.
“The first thing the Government should be doing is to reduce import tariff or totally remove import tax on ingredients used for chicken feed manufacturing.
“Do it to support private enterprises to set up additional feed mills in country, instead of reducing or removing import tariffs on frozen chicken.”
Numilengi was responding to the Independent Consumer and Competition Commission (ICCC)’s call to the Government to reduce import tariff on imported frozen chicken to make it affordable to consumers.
“We are experienced in chicken farming, slaughtering and processing, so we know what we are talking about,” he said.
“The Government can also look into subsidising electricity consumption for the local chicken farming industry. Help the local poultry industry with the option of having green energy (solar, wind turbine etc).
“Electricity cost is 5-10 per cent of our production costs.”
Numilengi added that logistic and transport were challenges to the business operations as well.
“Logistics and transportation cost, either by road or sea on shipment of frozen chicken meat is very expensive,” he said.
“Again, the Government can helping us cut the cost which is 10-15 per cent of production.
“Considering the profit margin alone after payment of 10 per cent Goods and Services Tax (GST), we are left with less than 20 per cent profit, a very minimal margin.
“Therefore, this call by ICCC does not have substance and is a call that will greatly affect the economy of this country.
“The ICCC needs to wake up and start doing its own research into
the poultry industry or any other local industry to see how best cost-saving can be applied by the Government.”