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During a press conference leading up to the 13th Ethio Poultry Expo (ETHIOPEX), the 9th Africa Livestock Exhibition and Congress (ALEC), the 4th Apiculture and Aquaculture Ethiopia Trade Show, and the newly launched Bio-Energy Trade Show, Dr. Demeke Wondimagegn, Technical Sales Manager of Turow Nutrition, raised concerns about an imminent rise in chicken meat and egg prices. The events are scheduled to take place from October 31 to November 2, 2024, at the Millennium Hall in Addis Ababa, Ethiopia. Prana Events, in collaboration with Sudanese Expo Team for Service Co., Ltd., is organizing the exhibitions.
Dr. Wondimagegn attributed the anticipated price hike to the new VAT Proclamation No. 1341/2024, which removes tax exemptions on key inputs for poultry production, such as feed and medication. He noted that these inputs were previously exempt from VAT, but with the new proclamation, the added cost burden will likely push prices higher for both poultry farmers and consumers.
Poultry production in Ethiopia is already grappling with several hurdles. Feed costs, which constitute approximately 70% to 75% of the total production costs, have been steadily rising, making chicken farming less profitable. In addition to feed, other essential inputs like medication and equipment have also seen price surges due to inflation and logistical challenges. Dr. Wondimagegn emphasized that the VAT change will worsen these issues, potentially driving many small-scale farmers out of business and limiting the growth of the sector.
Moreover, the Ethiopian poultry industry is still in its infancy, contributing only a small fraction to the nation’s agricultural output. While the government seeks to raise revenue through taxation, Dr. Wondimagegn questioned the timing and appropriateness of imposing taxes on such a vulnerable sector. He urged the government to reconsider the VAT changes, especially given the industry’s critical role in providing affordable protein to a growing population.
The Ethio Poultry Expo and other upcoming events are expected to gather stakeholders from across Africa to discuss these and other pressing challenges faced by the livestock sector, including opportunities for investment and innovation in feed technology, disease control, and sustainable farming practices. The expo will also serve as a platform to showcase new technologies and products aimed at enhancing productivity in Ethiopia’s evolving poultry, livestock, apiculture, and aquaculture sectors.
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