In its latest industry report, the Zimbabwe Poultry Association (ZPA) advised that egg production grew by 27% to 15.09 million eggs in the first quarter of this year compared to the same period last year largely buoyed by small scale producers. 



The good news..

In a statement, ZPA Chairman Solomon Zawe said small-scale table egg producers increased production by 17% to 3.10 million dozen per month in the first quarter, an increase of 59% over the first quarter of 2019.

The update also revealed that egg production by large scale producers remained static at 1.93 million dozen per month in the first quarter compared with the fourth quarter of 2019.

The report noted that the importation of poultry products was limited largely due to the low domestic retail prices in US dollar terms.

Prices of table eggs

Prices of eggs also increased as the wholesale price in local currency for a tray of 30 table eggs rose by 55% in the first quarter. Indexed in US dollar terms, the price of a tray of table eggs increased by 11% in the first quarter of 2020 and over the period of April and May to US$2,69.



Sector challenges

The report acknowledged the effects of coronavirus-induced national lockdown and movement restrictions as factors that disrupted production as farmers could not have access to feed and chicks. Despite the relaxed restrictions, the demand for broiler meat and table eggs is expected to remain subdued in the second half of the year due to hyperinflation and resultant restrictions on mobile money payments. Traders requiring payments in US dollar will also further strain demand for poultry products, the report noted.

Price of feed is expected to remain high due to poor maize and soya bean harvest locally and regionally. The ban on the importation of soya beans and meal will also put pressure on feed costs. 

Mr Zawe noted in his report that such pressures may result in other players in the sector pulling out due to viability challenges.

However, going forward the reduced viability of local production is likely to lead to withdrawal from the poultry sector, especially by small to medium scale farmers who depend on purchased feed, he said.

The net effect would be reduced production and an upsurge in the importation of cheap poultry products.