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ADVISORY NOTE

THE RIPPLE EFFECT OF MAIZE AND SOYBEAN PRICE FLUCTUATIONS ON POULTRY PRODUCTION AND MARKET PRICES OF POULTRY MEAT

This brief aims to provide insights into the nexus between the prices of yellow maize, soybean and poultry products. Yellow maize and soybean are to a great extent imported into the country. Thus, any external shocks such exchange rate volatility, supply chain disruptions and climate volatility play a critically influence the prices of these imports. Our trend analysis reveals that as prices of yellow maize and soybean rise, the cost of poultry production hikes, culminating into prices of the various poultry products also to rise but in varying proportions, largely driven by soybean. The rising feed costs not only erode the profitability of poultry production but also threaten food security, especially for low-income households which rely on poultry as an affordable protein source. Thus, interventions aimed at stabilizing feed prices need to be prioritised to reduce reliance of imported soybean and sunflower which is also used in the feed industry. For instance, there is a need to further support the domestic production of soybean and sunflower from which oilcakes are extracted to enrich the yellow maize during feed formulation. Moreover, there is an opportunity to explore the use of insects as sources of protein in feed rations.

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