Chicken

Poultry Production

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Poultry Production

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Zero Hunger (SDG 2) No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Gender Equality (SDG 5)

Business Model Description

Raise chickens for commercial purposes in buildings divided according to age and function, reproduction, incubation and fattening, to ensure at regular intervals the group sale of chickens on the local market. This business model can benefit from the support of the State provided in the poultry sector through the protection against imports and health surveillance.

Expected Impact

Contribute to food security, poverty reduction and replacement of food imports.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Togo: Maritime
  • Togo: Centrale
  • Togo: Plateaux
  • Togo: Kara
  • Togo: Savanes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Poverty is slowly decreasing with a rate going from 55.1% to 45.5% between 2015-2019, far from a complete elimination of extreme poverty targeted for 2030. In rural area, the poverty rate is 76.1% (1). Chronic, acute malnutrition and underweight affect respectively 27.5%, 6.5% and 16% of children under five years old particularly in the regions of Savanes, Kara and Plateaux (21).

Policy priority
Making agriculture a real engine of growth and job creation is one of Togo's ten strong ambitions (2). The Agricultural Plan aims to “modern, sustainable and high value-added agriculture serving national and regional food and nutritional security; a strong, inclusive, competitive economy that generates decent jobs and stable by 2030 and reduction of poverty and rural vulnerability (21).

Gender inequalities and marginalization issues
Women are poorly empowered and confined to agricultural activities. Mostly women (53.46% compared to 46.54% of men) carry out agricultural activities, notably in the activities of weeding, sowing, harvesting, storage, processing and marketing of products. The agricultural sector, with its low productivity and low income, plunges agricultural workers, particularly women, in high levels of poverty (1).

Investment opportunities introduction
Investment opportunities are due to both the expansion of local and foreign markets for many agricultural value chains and the land reform Togo initiated, which establishes equal rights of access to land for both women and men. Food crops have significant growth and employment potential, while livestock products and cash crops have additional growth effects (3).

Key bottlenecks introduction
Several constraints affect agricultural value chains like, limited production capacities to satisfy expanding and competitive markets, financing constraints for farmers, lack of long-term credit, and transport costs and constraints. Land issues also exacerbate the situation of farmers, particularly women and young people (3).

Sub Sector

Food and Agriculture

Development need
The agricultural sector does not provide sufficient production. Various agricultural subsectors are involved, including crop, livestock, agri-food industries as well as fish production (21). In 2022, Togo imported USD 17.28 million of meat products and meat preparations without exporting any. For dairy products and birds' eggs, the deficit was less pronounced (exports of USD 31.36 million against imports of USD 34.99 million) (4).

Policy priority
In March 2024, Togo launched a new project for the development of the integrated poultry sector aimed at promoting the livestock sub-sector, in particular the poultry industry, through the modernization of the sector with particular emphasis on intensification local production of quality poultry at an affordable price (22).

Gender inequalities and marginalization issues
Women are engaged in individual activities to the point where the majority of them are in the informal sector (54%), commerce and services (53.46%) as well as agricultural activities (5). The new land code allows women to have access to land to be able to carry out agricultural and poultry activities. At least 30% of developed agricultural zones (Zaap) are allocated to women (6).

Investment opportunities introduction
With a view to encouraging exports, Togo has engaged in liberalization characterized by measures to harmonize legislative and regulatory frameworks with treaties and agreements. Making way for the private sector, Togo inaugurated the Adétikopé Industrial Platform dedicated to the transformation of Togo's natural resources and agricultural exports (6).

Key bottlenecks introduction
The factors slowing down the poultry farming in Togo include the high cost of feed; dependence on the outside world for the importation of improved breeds, food and veterinary products at high costs; lack of professional qualification; environmental and poultry quality issues; and the low capacity of local industry (23).

Industry

Meat, Poultry and Dairy

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Poultry Production

Business Model

Raise chickens for commercial purposes in buildings divided according to age and function, reproduction, incubation and fattening, to ensure at regular intervals the group sale of chickens on the local market. This business model can benefit from the support of the State provided in the poultry sector through the protection against imports and health surveillance.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

As an example indicating large scale opportunities, the Integrated Poultry Complex in Avétonou will have a site with a poultry slaughterhouse with a capacity of 10,000 chickens per hour and seven breeding farms with a capacity of 50,000,000 chickens per year in phase 1 and 100,000,000 chickens per year in phase 2 with expected sales of USD 125 millions / year (24).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

An estimate carried out for a poultry farm project estimated an internal rate of return pf 16.5% (26).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

For a poultry farm project with an investment of approximately USD 500,000, having conclusive profitability indicators, a recovery time of 4 years 11 months for the invested capital is estimated. This duration could be longer for a project that integrates the production of livestock feed (25, 27).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Constraints in the supply of livestock feed and veterinary products in terms of availability, quality and affordability may affect the poultry production process (22, 23).

Business - Supply Chain Constraints

The volatility of poultry production activities linked to avian epidemics and other environmental vulnerabilities requires financing under incentivised conditions (22, 23).

Market - Highly Regulated

Poultry production is not subject to specific production standards likely to guarantee product quality and consumer health (22, 23).

Impact Case

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Sustainable Development Need

According to PNIASAN, the trade balance of agricultural and food products presents an average annual deficit of USD 99.083 millions over the period 2010-2014 (7). Food import included cereals, particularly rice, and meat products reached USD 454.167 million in 2022 (6).

The need for meat products in Togo is significant and growing, but their satisfaction depends in part on imports. The meat deficit was covered by imports of meat and meat preparations amounting to USD 17.28 million with a smaller amount for dairy products and eggs (4).

Enhanced poultry production will require overcoming the constraints facing this activity, including the high cost of livestock feed and the limited quality of species (23).

Gender & Marginalisation

Women working in Togolese agriculture are subjected to poorly paid tasks which plunge them into poverty (1). Women experience difficulties accessing land and financing, forcing them to set up less productive production and processing systems for agricultural products (8).

Around 25.21% of women and even fewer in rural than urban areas compared to 38.3% of men have access to a bank account (8). This situation limits the ability of women to invest and implement more productive processes due to lack of adequate equipment and inputs like improved seeds (8).

The limitation of women's opportunities in rural areas, materialized by their poor access to land and financing, forces them to set up systems of production and processing of agricultural products that are not very productive and poorly remunerative (8).

Expected Development Outcome

Poultry production, based on high productivity and quality standards, will provide abundant and nutritional meat products to meet the growing needs of the population and strengthen food security.

Poultry production will provide better remuneration to workers engaged in the sector and contribute to increased income and foreign exchange savings (22).

Poultry production will create increased opportunities for the valorisation of poultry and eggs, particularly in various processed food products, while limiting imports.

Gender & Marginalisation

Poultry production improves the remuneration of workers in the poultry activity, particularly many women who work there, and allows them to escape precariousness and poverty.

Poultry production improves the technical and financial capacities of women in agricultural activities and allow them to improve their financial assets and capabilities for enterprise and fully seize their opportunities.

Poultry production allows women, including young people, to develop their technical skills on proven processes for processing aquaculture products with increased value added.

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size

Current Value

N/A

Target Value

10% productivity gain in livestock farming by 2025 (1).

Zero Hunger (SDG 2)
2 - Zero Hunger

2.5.1 Number of plant and animal genetic resources for food and agriculture secured in either medium- or long-term conservation facilities

Current Value

The number of genetic resources intended for food secured in medium or long-term conservation facilities is set at 8 over the period 2018 to 2021 for animal resources (1).

Target Value

N/A

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

26.6% in 2021 (9).

Target Value

N/A

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Gender Equality (SDG 5)
5 - Gender Equality

Directly impacted stakeholders

People

People purchasing fresh products from local poultry farming for their consumption will benefit from fresh products for their nutritional balance.

Gender inequality and/or marginalization

Women and girls working in poultry farming will benefit from income to improve their individual and family well-being.

Planet

The recovery of waste from poultry farming activities will help avoid environmental impacts and health problems while providing additional income to those involved in the activity.

Corporates

Companies engaged in poultry production as well as their suppliers will know the development of their activities subject to the existing market margin in the face of competition from imports.

Public sector

Public authorities, at national and local levels, through the development of poultry farming will be able to benefit from the taxes generated by the activities carried out for the production and marketing of poultry.

Indirectly impacted stakeholders

People

People living in poultry farming areas have various opportunities including those to develop their close livestock farming through imitation and accumulated information.

Gender inequality and/or marginalization

Market gardeners, particularly women, will find in chicken droppings the raw material for the manufacture of their composts to improve the productivity of their market gardening activities.

Planet

The environment can be preserved by the involvement of companies and actors involved in poultry farming in the management and recovery of waste.

Corporates

Traders will find fresh products for their customers and an opportunity to develop their business.

Outcome Risks

Low compliance with quality standards in poultry production could have a negative impact on the products, potentially impacting the health of consumers.

Poultry production not based on sustainable processes could affect the environment and constitute a harmful factor for ecosystems and climate change.

If poultry waste is not recycled, it can promote the development and proliferation of insects, pests, and pathogenic micro-organisms (36).

Impact Risks

The technical requirements linked to the production of poultry production could attract personnel from elsewhere to the detriment of less qualified young people, particularly women living in the production area.

Faced with very competitive poultry production, women without land or capital and unable to find financing will be confined in unprofitable activities.

Impact Classification

B—Benefit Stakeholders

What

An increasing supply of poultry production will improve household supplies of meat while enabling poultry workers, women and youth to contribute to the reduction of imports of meat products.

Who

Businesses, farmers and trade associations involved in poultry production, including the Ministry of Agriculture, help boost food production and meet nutritional needs.

Risk

While the model is proven, technical production requirements and land access for women requires consideration for increased involvement in poultry farming.

Impact Thesis

Contribute to food security, poverty reduction and replacement of food imports.

Enabling Environment

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Policy Environment

Poultry farming as the main source of animal protein production is one of the sectors selected to implement objective 2 of the National Plan for Agricultural Investment, Food and Nutritional Security aiming to improve productivity, production and the valorisation of products in the sectors (19).

The construction of poultry value chains should contribute enormously to getting Togo out of its food dependence in terms of meat products. The measures that can be highlighted in the Investment Plan are between facilitating access for value chain actors to inputs and financial services (19).

Togo seeks the development of a integrated poultry sector aimed at promoting poultry industry, through the modernization of the sector with particular emphasis on intensification local production of quality poultry at an affordable price (22).

Financial Environment

PNIASA proposes a smart subsidy aimed at encouraging local insurers to offer an insurance product offering that covers the risks specific to the development of priority value chains. Banks are also encouraged to offer financial services adapted to companies active in priority value chains (19).

PNIASA provides other financial incentives linked to the Guarantee Fund for Shared Cost Subsidies and Credit Lines intended to stimulate relations between value chain actors and financial service providers with subsidized interest rates (single-digit rates) (19).

Regulatory Environment

Public support in the poultry sector concerns: protection by subjecting imports of poultry products to prior authorizations; health surveillance against avian flu and other epidemics affecting poultry and other animals (29, 30).

The State is also implementing, in partnership with the private sector, an integrated poultry sector development project capable of supporting the entire poultry sector and including: a feed mill for the production of livestock feed; day-old chick production units; a poultry slaughtering unit (22).

Poultry production benefits from protective measures, even temporary, against competition from imports of chickens, chicken legs and wings and other poultry products, by making any import of poultry products subject to the issue of prior authorization (25, 30, 35).

Marketplace Participants

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Private Sector

Agro Tech Das, ETS God Grace, Kpogan, Mon Elevation Poultry Farm, Nakpagli Farm, Terre des Volailles, Open Poultry Farms, Portea-Graine (as new arrival that announces significant production capacities), (22, 28).

Government

Ministries of Agriculture, Livestock and Rural Development; The Livestock Directorate and its departments: the Livestock Promotion Division; the Animal Health and Laboratories Division; the Hygiene and Control of Foodstuffs of Origin Division, Animal Disease Surveillance Network (34).

Multilaterals

European Union (EU), Food and Agriculture Organization of the United Nations, World Bank, African Development Bank, United Nations Development Programme (UNDP) (29).

Non-Profit

Interprofessional Council of the Poultry Sector of Togo, National Synergy of Poultry Breeders of Togo, National Association of Poultry Producers of Togo, Village Poultry Farming and Local Animal Health in Togo, German Society for International Cooperation (GIZ) (31, 32, 33).

Public-Private Partnership

Partnership between the government and the PORTO-GRAINE group for the financing and construction of the infrastructure of the Integrated Development Project for the Poultry Sector for the creation of a poultry complex on the Avétonou site in the Agou prefecture (25).

Target Locations

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country static map

Togo: Maritime

semi-urban

Togo: Centrale

The Central region is the third production region in the poultry with 7 million heads out of a total of 35.7 million heads in 2023 (15, 28).
semi-urban

Togo: Plateaux

The Plateaux region is the main poultry production region with 12 million head out of a total of 35.7 million head in 2023 (28).

Togo: Kara

semi-urban

Togo: Savanes

The Savanes region is specialized in livestock farming and the main entry point for transhumant livestock (18). The Savanes region is the second largest poultry production region with 8 million heads out of a total of 35.7 million heads in 2023 (28).

References

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