Sustainable Poultry Production
Sustainable Poultry Production
Business Model Description
Build sustainable poultry farms with an emphasis on prioritizing the integration of local smallholders, their training, implementing organic farming practices reutilizing poultry litter for local agriculture, and procuring local animal feed, mostly maize and soy. The locally-based circular production model is used for eco and fair trade purposes to compete at international markets.
Expected Impact
Enhance agricultural productivity, sustainability, and income equity among small poultry farmers.
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
- Angola: Luanda
- Angola: Kuanza Sul
- Angola: Malange
- Angola: Kuanza Norte
Sector Classification
Food and Beverage
Development need
Investing in sustainable agriculture is pivotal for tackling poverty and climate change. It is significantly effective in raising incomes among the poorest, with the World Bank highlighting its power to boost shared prosperity and meet future food security needs (1).
Policy priority
The government is prioritizing family farming, providing access to essential inputs for fundamental products, while also promoting commercial farming to foster innovation and productivity (2).
Gender inequalities and marginalization issues
Nearly 50% of family farm heads are in the 35-45 age range, with a significant representation of women, though they have lower educational levels. This indicates the need for gender-focused development in agricultural employment and education (28). Women have lower quality jobs than similarly-skilled men; 86% of employed women engaged in vulnerable jobs (defined as own-account workers and contributing family workers) compared to 67% of men (29). Given the global patterns in agriculture, it is likely that issues of access, equity, and income affect women, who often make up a large proportion of the agricultural workforce (30).
Investment opportunity introduction
Domestic consumption is growing and neighbouring countries can be a target market for export. Moreover, the country is rich in water sources. In 2022, the country exported beer, juices, and soft drinks for over USD 10 million (3).
Key bottlenecks introduction
Key bottlenecks in the agricultural may include vulnerability to climate change and climate shocks, low productivity and market access (4).
Food and Agriculture
Development need
Angola has a favourable climate and vegetation conditions in practically all provinces that support poultry farming, a staple food source and a key contributor to food security (5). Most of the needs for poultry are currently satisfied through imports.
Policy priority
The Government of Angola's efforts in fostering economic diversification and its emphasis on the agricultural sector, particularly through the National Plan for the Promotion and Development of Livestock (PLANAPECUARIA).
Gender inequalities and marginalization issues
Angola’s poultry industry comprises of smallholder farmers that are often excluded from profitable parts of the value chain (8). Although women are normally in charge of poultry farming and trading, they do not necessarily control the incomes from poultry trade.
Investment opportunity introduction
Poultry is the main animal protein consumed nationally. However, Angola is still a net importer of poultry. The opportunity for Angola is to shift from importing hatching eggs and day-old-chicks to parent stocks (6).
Key bottlenecks introduction
Bottlenecks may include lack of animal feed, veterinary medicine, chicken feedlots, general infrastructure, and the prohibition of genetically engineered (GE) feed products (7).
Meat, Poultry and Dairy
Pipeline Opportunity
Sustainable Poultry Production
Build sustainable poultry farms with an emphasis on prioritizing the integration of local smallholders, their training, implementing organic farming practices reutilizing poultry litter for local agriculture, and procuring local animal feed, mostly maize and soy. The locally-based circular production model is used for eco and fair trade purposes to compete at international markets.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
< 5%
Poultry production in Angola is forecasted to increase by 3% annually for 2022 to 2026 (22). To calculate the market size, a proxy is considered based on the size of the country's poultry imports from 2017 to 2021, which had a value of over USD 3.3 billion (9). Using poultry import data as a proxy helps in accurately estimating the market size due to its direct reflection of domestic demand.
Indicative Return
20% - 25%
A feasibility study on the modernization and capacity increase project for AngolAves, Angola's oldest poultry company, has been carried out and financial projections indicate that the project will have an IRR of more than 20% (10).
Investment Timeframe
Short Term (0–5 years)
A timeframe for a poultry farm to start generating returns in the context of Angola's poultry sector is around 3-7 years, considering all phases from initial investment to reaching a stable, profitable operation (11).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - Volatile
Impact Case
Sustainable Development Need
According to the World Food Programme's HungerMap, more than 4 million people in Angola live on insufficient food, and 38% of children under five years of age suffer from chronic malnutrition (31). In addition, Angola relies heavily on imports to meet its demand for food products, including poultry, which has an impact on levels of self-sufficiency and food security (8).
Loss and degradation of habitats pose significant challenges to biodiversity in Angola. Conventional farming methods contribute to soil degradation and biodiversity loss as local communities frequently clear hectares for subsistence agriculture. The deforestation rate is estimated at 0.4% annually (32).
Gender & Marginalisation
Angola’s poultry industry comprises smallholder farmers that are often excluded from profitable parts of the value chain (8).
Poultry production in Angola is a traditional domestic activity practiced mainly by women and children (26). Women often have poorer access to, and control over, resources such as land, credit, labor, technology and in many cases, they do not have full ownership of the birds, or hold decision-making powers regarding them or income from their sale (27).
Expected Development Outcome
Sustainable poultry production contributes to reduced poverty through income generated by poultry small farmers.
Sustainable poultry production leads to increased food security through poultry local production and local development.
Sustainable poultry production helps consolidating adopted sustainable practices in the poultry value chain.
Gender & Marginalisation
Sustainable poultry production contributes to farmers' integration into the poultry value chain, namely the poor and vulnerable, including women.
By engaging both men and women in all aspects of poultry production, from resource allocation to decision-making, the intervention can promote gender equality. This can help to break down traditional roles that may limit women to tasks like providing drinking water, cleaning coops, and caring for sick chickens (15).
Primary SDGs addressed
2.4.1 Proportion of agricultural area under productive and sustainable agriculture
For 2020, 10% of the country’s arable land was under cultivation (24).
N/A
8.3.1 Proportion of informal employment in total employment, by sector and sex
Proportion of informal employment in total employment for 2021 was 90% (25).
N/A
12.4.2 (a) Hazardous waste generated per capita; and (b) proportion of hazardous waste treated, by type of treatment
Ongoing activities to collect data on hazardous waste (8).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Public sector
Outcome Risks
Resource depletion: Intensive farming may lead to water scarcity and soil degradation, harming local ecosystems and future agricultural productivity.
Labor exploitation: Rapid expansion could lead to poor working conditions, exploitation, especially of vulnerable groups, if labor regulations are not strictly enforced.
Greenhouse gas emissions may incur as a consequence of improper management practices of poultry litter, the feed production, the energy use in poultry farm operations, the transportation of inputs as well as the distribution of poultry products.
Impact Risks
Lack of necessary skills among workers could hinder employment opportunities, impeding poverty reduction efforts.
Without proper skills, farmers may not effectively adopt sustainable practices, risking productivity and environmental harm.
Impact Classification
What
Increased sustainable production of poultry, enhancing food security and economic growth.
Who
Local farmers, women, marginalized groups, private sector, and public institutions, focusing on rural communities.
Risk
Insufficient skills and technologies among workers and farmers could impede employment opportunities, poverty reduction, sustainable practices, productivity, and environmental health.
Contribution
Sustainable poultry farms contribute by enhancing sustainable agricultural practices, supporting local economies through fair trade, and reducing environmental impacts through organic methods and waste reutilization.
How Much
In the mid-term, the initiative aims to train thousands of smallholders, increase organic poultry production, and reduce agricultural waste by reutilizing poultry litter.
Impact Thesis
Enhance agricultural productivity, sustainability, and income equity among small poultry farmers.
Enabling Environment
Policy Environment
The National Plan for the Promotion and Development of Livestock (PLANAPECUÁRIA) aims to promote the production of eggs and poultry meat. The state will invest USD 300 million (18).
The USD 300 million are being invested to encourage private investment in the various value chains of meat and other livestock product production, enhance herd health control and improve the resilience of livestock production systems and develop a comprehensive system for surveillance, prevention, and control of animal diseases to safeguard the growth and development of national livestock production (18).
Financial Environment
Other incentives: The Angolan government reduced the VAT rate from 14 to 7% for a set of widely consumed essential goods including chicken legs quarters. The move was an effort to increase the purchasing power of families in the face of price inflation (12).
Regulatory Environment
Decree number 23/19, which was issued on January 14, 2019, was another attempt by the government to diversify the Angolan economy. The decree identifies 54 products, including chicken meat, that need to follow guidelines to develop their markets (12).
Decree number 190/12, which was issued on August 24, 2012, sets out the general framework for agricultural practices in Angola, including aspects related to organic farming. It outlines the requirements for sustainable farming practices, the use of organic inputs, and the overall management of agricultural activities (25).
Marketplace Participants
Private Sector
Kikovo, Avicuxi, Cobb, Kenchic, Aldeia Nova, Fazenda Filomena.
Government
Ministério da Agricultura e Florestas (MINAGRIF), Instituto de Desenvolvimento Agrário (IDA).
Multilaterals
World Bank, Food and Agriculture Organization (FAO), African Development Bank (AfDB), United Nations Development Programme (UNDP), International Fund for Agricultural Development (IFAD)
Target Locations
Angola: Luanda
Angola: Kuanza Sul
Angola: Malange
Angola: Kuanza Norte
References
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- (3) General Tax Administration (AGT). (2022) External trade statistics.
- (4) World Economic Forum (2022). Angola's agricultural sector could become Africa's powerhouse. Here's why. Source: https://www.weforum.org/agenda/2022/09/angola-agricultural-sector-powerhouse-of-africa/.
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