Chicken in Senegal: assessment of a well-developed local sector

As part of the study carried out On public policies in favor of agricultural sectors in Africa, the FARM Foundation and the Avril Foundation have focused on the Senegalese poultry sector. In 2005, in a global context marked by avian flu, the State decided to almost completely close imports of chicken meat in order to stimulate local production. More than 15 years later, what conclusions can be drawn?

History of a dynamic sector

Poultry farming is one of the most dynamic branches of Senegalese agriculture. Its dynamism is due to the expansion, over the past fifteen years, of egg and broiler production carried out in intensive or "industrial" farms, which is tending to take precedence over traditional production, known as "family" or "village" production, carried out in backyards.

A major factor in this success has been, since October 24, 2005, the suspension by the public authorities of imports of poultry products into Senegal motivated by the risk of contamination of the country's farms by avian flu. The measure targets live poultry, including day-old chicks (excluding breeder chicks), poultry meat and cuts, as well as eggs and egg products intended for consumption. Hatching eggs are not affected by this ban.

The rise of local production

This health measure is also unofficially a response to the increase in imports of chicken cuts and spent hen carcasses – by-products of the European, American, and Brazilian sectors – that occurred in the early 2000s. In 2004, these imports constituted more than a third of Senegalese consumption. Intensive chicken meat production has increased significantly since the border closures, with significant beneficial effects on employment, both direct (in the livestock and processing sectors) and indirect (particularly through the increase in poultry feed production). The total number of jobs generated by the sector was around 60,000 in 2018.

A sharp increase in production

Most Senegalese "industrial" farms are of modest size (around 1,000 birds per 45-day production cycle), but there are also some large units (more than 10,000 birds)[1] equipped with their own slaughterhouse. A large integrator, Sedima (120,000 birds), is present at all stages of the supply chain, from hatching to processing. It has its own poultry feed factory and also produces chickens under contract, supplying breeders with the required inputs (chicks and feed).

According to FAO data, Chicken meat production in Senegal has almost quadrupled since 2005 to reach 114,200 tonnes in 2019. This tonnage includes both village and industrial production. The latter increased eightfold between 2005 and 2018, when it represented, according to our estimates, around 80,% of total chicken meat production[2]Almost all production is intended for the domestic market, with exports to neighbouring countries being marginal.

Despite everything, The Senegalese poultry industry has suffered greatly from the Covid-19 crisis. Emergency measures taken by the government have helped reduce the impact of the health crisis on the poultry sector. However, the closure of hotels, restaurants and markets, as well as the ban on urban traffic, have had drastic effects on all segments of the sector. According to a preliminary assessment, the turnover of poultry meat has decreased by 25 % approximately in 2020More recently, the war in Ukraine, which led to an increase in the price of animal feed, has also severely weakened the sector.

Other African countries have restricted imports

Senegal isn't the only African country protecting its poultry sector. Cameroon restricted its imports of chicken cuts between 2005 and 2016. This measure encouraged the development of local production, which increased by half between 2005 and 2019, creating thousands of jobs. Similarly, since 2005 in Côte d'Ivoire, the implementation of an import tax of €1.50 per kilo on chicken cuts has allowed the poultry industry to take off (+83 % between 2005 and 2019).

Conversely, African countries that did not follow the trade policies of Senegal, Cameroon or Ivory Coast quickly found themselves overwhelmed by competition from low-cost, directly or indirectly subsidized imports from Europe, the United States and Brazil.

Ghana is perhaps the most emblematic example in West Africa. The Ghanaian poultry industry, which was one of the key sectors of the economy before liberalization in the early 2000s, has lost significant market share to frozen chicken from the European Union, the United States, and Brazil.[3]Imported quantities have tripled in the space of 15 years, causing the disappearance of a large number of farms. In 2019, they were around 150,000 t, more than double Ghana's production.

A policy and its limits

The beneficial impact of the import ban on chicken meat production in Senegal should not mask some drawbacks and pitfalls.

First of all, the dependence on chicken meat imports has, in fact, become a dependence on imported inputs induced by the development of the sector. These are animal feed and hatching eggs, the prices of which have increased sharply since 2005.

Then, the lack of foreign competition helps maintain chicken prices[4] at a relatively high level and does not provide incentives for producers to improve quality[5], which is hampering demand and market expansion.

Finally, although legally authorized by the ECOWAS or WAEMU treaties and legitimate in terms of health protection, this import restriction measure clashes with trade liberalization efforts within regional economic communities and the African Continental Free Trade Area (AfCFTA).

But a sector with a future

Although chicken remains a relatively expensive source of protein, it has become the most consumed meat, contributing to improving the population's food and nutritional security. According to our estimates, individual consumption of chicken meat in Senegal, including family poultry, has practically doubled over the past ten years, increasing from 3.6 kg per person in 2010 to around 7 kg in 2019.^[6] (compared to 28.5 kg of poultry in France in 2018, of which 19.5 kg of chicken). The breeding farms set up by Sedima also strengthen the sector's autonomy, whereas until now the majority of hatching eggs came from abroad (France, Brazil, Morocco, etc.).

This success is mainly due to the increase in average household income, linked to the emergence of the middle classes, more sensitive to a segmented offer and to the labels that are developing, and to urbanization which is changing eating habits. The growing role of large-scale distribution also encourages the demand for chicken, particularly from larger farms.

Chicken farming remains a key sector for Senegal and poultry farmers are well aware that they must prepare for a reopening of borders, but are calling for transitional measures to be implemented to improve the competitiveness of their sector in order to prepare them for this deadline. This would include modernizing slaughterhouses and helping to build freezing infrastructure to store chickens and regulate the quantities sold.

To learn more about the role of public policies in favor of agricultural sectors in Africa, download our full study.

[1] This remains modest compared to breeding in Europe. The average capacity of a professional French workshop is 30,000 animals, but 60,000 in Germany and 90,000 for the British (source ITAVI 2014)

[2] According to official figures, industrial and family chicken numbers represented 64,% and 36,% respectively of the total number of chickens in Senegal in 2019. The share of industrial chicken in chicken meat production is even higher, due to the better productivity of intensive farms.

[3] In 2003, imported poultry was 72 % from the EU, 24 % from Brazil and 2% from the USA/CANADA Bame/MP (bameinfopol.info)

[4] In 2003, the retail price of imported chicken was 1400 FCFA/kg and of local chicken was 1900 FCFA/kg Bame/MP (bameinfopol.info) – in 2021, the price of local chicken is around 3000 FCFA/kg

[5] For example, by segmenting the offer with labels: farm chicken, red label, organic, free range, etc.

[6] Estimate obtained by dividing chicken meat production (source: FAO) by the population of Senegal. It is unclear whether the quantity of chicken meat is expressed by FAO in carcass equivalent, ready-to-cook equivalent, or in another unit.