The continuing rise of the modern African poultry producer

Increasing urbanization, rising living standards, an increasingpopulation and strongly growing economies are all signs that bode well forpoultry production and consumption. For poultry producers in Africa, this is the outlook.

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Increasing urbanization, rising living standards, an increasing population and strongly growing economies - all signs that bode well for poultry production and consumption. For poultry producers in Africa, this is the outlook.

Africa and Asia will account for 89 percent of the world population growth between 2010 and 2050.

Albeit starting from a relatively low level, since 2000, Africa has been the world's third fastest growing region, allowing more people to climb the economic ladder and putting poultry meat ever more within the population's reach. This strong performance is forecast to continue. The African economy has been achieving unprecedented growth rates. In 2012, it grew by 5 percent and this growth is expected to continue over the coming years.

By 2020, Africa's GDP is expected to reach US$2.6 trillion, up from US$1.6 trillion in 2008. The workforce is growing, as are disposable income and consumer spending. By 2030, half of the continent's population is expected to live in cities, and Africa is already home to 52 cities with a population in excess of 1 million.

Modernizing poultry production

Continent-wide there is a huge variety in poultry production and most is still carried out on a small scale, but this does not mean that Africa is without large, modern poultry producers.

Nigeria, Morocco and South Africa may have the largest national flocks, and the most modern producers may be concentrated in the North and South of the continent, but companies employing modern sophisticated production methods can increasingly be found across Africa.

The World's Top Poultry Companies database contains details for 49 companies active in Africa, almost all primarily concerned with chicken production rather than other poultry meats, although there is some turkey and goose production and some chicken meat producers also produce table eggs. Some poultry producers listed are part of much larger agro-industrial groups, some are purely private enterprises, while others have significant government participation to help ensure food security.

Almost half of these have their own feed mills, and some are involved in processing and further processing. Some of these companies are highly sophisticated with their own hatching facilities, grow out houses, and slaughter operations.

Two African chicken meat producers would be ranked among the 30 largest broilers in the word when measured by head slaughtered, while others are inching their way towards inclusion in the top 50. As investment continues, technology is applied and disposable income rises, increases in production can only be expected to quicken.

And African companies are not only focused on their home markets, there companies that export, and not only to their neighbors, but outside the continent. Given cheap labor costs and an abundance of land, it may not be too long before African producers are increasingly competing in international markets.

 

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