Namib Poultry Industries is aiming for 95 percent of Namibia's poultry market share with its new brands, saying that a 46 percent excise duty placed on all poultry products coming into the country will make imports less competitive.
Namib Poultry Industries' first poultry plant, a N$500 million (US$59.9 million) investment, will be operational on June 1. The project will enjoy the Namibian government's protection status for the next eight years, with the 46 percent levy active for the next four years, 30 percent for two years after that and 20 percent in the last two years.
The price of chicken is not expected to go up, however, even with the import levy. Our benchmark will always be the import parity price," said Namib Poultry Industries General Manager Gys White. "The price that you get in South Africa plus 1 percent for the additional VAT plus transport cost, which is on average N$1.20 (US$0.14) per kilogram."
The poultry plant is currently slaughtering 40,000 to 50,000 birds per day, and is expected to produce 2,000 metric tons of chicken per month by the end of June. The facility has the capacity to expand production to 500,000 birds per week.