eBusiness Weekly
Oliver Kazunga
The price of chicken and its products increased by margins between six percent and 48 percent in US$ in May 2022 compared to the corresponding period last year, official figures show.
In its Poultry Industry Market Price Bulletin for the month ended May 30,2022, the Livestock and Meat Advisory Council (LMAC), reported that a similar trend was also noticed for all the poultry products in local currency with prices ranging between 288 percent and 415 percent.
The advisory council attributed the rise in prices to several factors including rising fuel prices, volatile exchange rate, high production costs, marketing inefficiencies and low factor productivity, Zimbabwe’s annual inflation which continues to firm relative to other countries in the region.
“The market analysis for the month of May 2022 was primarily focused on a year-on-year comparison. The analysis showed an increase in US dollar prices of chicken ranging between six and 48 percent across all product lines, while Zim dollar prices reflected the same trend for all chicken products with an increase of 288 to 415 percent.
“Prices of poultry stockfeed told a similar story as well. On the 9th of May, the Central Bank introduced the interbank rate in a bid to slow down the climbing parallel market rate.
“The parallel market exchange rate continued on an upward trend at $390 to US$1, compared to the slower moving interbank exchange rate of $299 to the US dollar, at which the month of May 2022 closed,” said LMAC.
“However, in comparison to the previous year, the rate of inflation was higher at 161,9 percent.
“Month-on-month inflation doubled, from 15,5 percent in April 2022, to 31 percent in May while May 2021 recorded a month-on-month inflation rate of 1,8 percent,” it said.
The Food and Non-alcoholic beverages inflation for May 2022 was recorded as 25,95 percent, gaining 7,5 points from the previous month, relative to 0,47 percent in May 2021.
Zambia’s annual inflation decelerated to 10,2 percent, down from 11,5 percent in April 2022.
“On the other hand, South Africa’s annual inflation rate gained 0,6 percent from April 2022, coming up to 10,2 percent for May 2022.
“Wholesale prices of the most preferred retail product line, Individually Quick-Frozen chicken pieces, recorded a 26 percent increase in US dollar terms year-on-year, while formal wholesale Zim dollar prices increased by a whopping 352 percent over the year.”
In general, LMAC said the year-on-year wholesale prices of almost all chicken products increased by margins indicated earlier.
Of note, is whole chicken weighing between 900 grammes and 1,1 kilogrammes which recorded a significant jump on wholesale price of 414 percent and 48 percent in Zim$ and US$ respectively over the one-year period under review.
The average producer prices offered to small-to-medium chicken producers by poultry abattoirs and wholesalers was low with a 191 percent increase in Zim$ terms while US$, the price plummeted by 25 percent from US$2,29 to US$1,70 per kg dressed weight in May 2022 compared May 2021.
Prices of live birds ranged from US$5 to US$6 per bird and remained constant at US$4,50 for birds bought in bulk on cash terms.
The US$ prices of table eggs rose by 32 percent and 35 percent year-on-year while Zim dollar prices increased by between 250 percent and 295 percent.
“However, US$ wholesale prices on the open market remained static at $3,50 per tray. The US dollar prices of broiler day-old chicks, year-on-year recorded a 15 percent decline. Day-old chicks’ prices tend to fluctuate depending on seasonal market uptake trends, cost of importing hatching eggs and numbers placed.
“In comparison to May 2021, Zim$ prices of layer day-old chicks went up by 283 percent and six percent in US$ terms, while point of layer hens recorded a 3 percent decline in US dollar relative to a 248 percent increase in Zim$,” said LMAC.
As assessment of the monitored lines of broiler stockfeed indicated a 3 percent to five percent increase in retail prices quoted in US dollar barring one product line, that is, grower concentrate whose price came down by seven percent.
“Out of the eight monitored lines of layer feed, three of them recorded a significant decline of 2 to 7 percent with the rest of the lines recording a 1 to 9 percent increase in US$ retail prices in the month of May 2022 relative to May 2021.
“Year-on-year prices of all feed in domestic currency climbed by 247 to 307 percent.
“Prices for beef firmed, recording a 352 to 429 percent Zim$ price increase, and 3 to 12 percent rise in US$ wholesale prices was recorded across for the three monitored grades,” said the advisory council.
It said wholesale prices of pork declined by 36 percent relative to May 2021, similarly, the price of tilapia bream fish followed suit, decreasing by 19 percent.
“In the period under review, the retail market rate of exchange between a kg of chicken mixed portions at US$4,72 was 1,7 kg of pork or 1,3 kg of fish or 0,9kg of goat meat compared to 0,83kg of pork, 0,86kg of fish or 0,89kg of goat for May 2021.
“Wholesale price of goats in US$ per kg grew by 32 percent per kg relative to May 2021,” said LMAC.
