Zambia’s poultry sector, long seen as a cornerstone of food security and rural livelihoods, is falling short of its potential as market concentration and pricing distortions drive up costs for both producers and consumers.
A recent inquiry by the Competition and Consumer Protection Commission (CCPC) estimates that inefficiencies and anti-competitive practices in the poultry value chain are costing the economy at least US$20 million annually.
Consumers are paying roughly 20% more for chicken, placing added pressure on low-income households, while small-scale farmers face rising input costs that are eroding profitability.
At the centre of the issue is the structure of the poultry market, where a small number of vertically integrated firms dominate key segments including breeding, feed production, processing and distribution. Many of these companies operate across southern and eastern Africa and are linked through overlapping ownership structures, enabling significant control over pricing and supply.
The impact is most visible in the cost of day-old chicks (DOCs) and feed, the two most critical inputs for poultry production. Since 2019, the price of day-old chicks in Zambia has tripled, making it the most expensive market in the region, ahead of countries such as South Africa, Malawi and Uganda. This is despite Zambia being a major regional supplier, exporting around 70% of its chicks, often at lower prices than those charged domestically. Exports have surged by 170% between 2020 and 2024, highlighting a disconnect between local pricing and supply availability.
Feed costs have followed a similar trend. Between 2019 and 2023, poultry feed prices doubled, rising significantly faster than in global benchmark markets such as Brazil, even though Zambia benefits from relatively lower maize and soybean production costs.
The CCPC inquiry also found that feed producers in Zambia are paying up to 33% more for soymeal than export prices, with some suppliers reportedly achieving margins exceeding 80% on domestic sales. In some cases, reduced domestic supply linked to export strategies may be contributing to sustained high prices.
These dynamics have placed small-scale poultry farmers, who form the backbone of the sector under increasing financial strain, limiting their ability to expand production and participate competitively in the market.
The inquiry calls for regulatory intervention at both national and regional levels. Domestically, it recommends reviewing licensing arrangements for breeding stock to ensure fair access, as well as strengthening oversight of vertically integrated firms. At the regional level, the COMESA Competition Commission (CCCC) is being urged to investigate whether exclusive supply agreements and territorial restrictions in the breeding and feed markets are distorting competition and trade.
The CCCC is also expected to assess whether information sharing practices among dominant firms are contributing to coordinated pricing behaviour.
Regulators argue that addressing these issues could unlock significant benefits, such as lower consumer prices, improved food security, stronger participation by small and medium enterprises and greater investment in the poultry value chain. The findings underscore broader concerns about concentration in agricultural markets, where a lack of competition can undermine both producers and consumers. Without intervention, the report warns, small-scale farmers and low-income households will continue to bear the cost of a system that limits growth, restricts opportunity and keeps poultry products unnecessarily expensive.
