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Mozambique Agri
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    Mozambique Targets Deeper Economic Ties at Porto Summit

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    Mozambique Targets Deeper Economic Ties at Porto Summit

    Mozambique Targets Deeper Economic Ties at Porto Summit

    Mozambique’s Economy Gains Pace, But Security and Climate Risks Cloud Outlook

    Mozambique’s Economy Gains Pace, But Security and Climate Risks Cloud Outlook

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    Mozambique Bets on Value Chain Investment to Transition from Subsistence Farming

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    Mozambique’s Poultry Sector Takes Flight, Targeting Self-Sufficiency

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    African Poultry Sector Demands United Front for Regional Growth

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Poultry Sector Crippled by Post-Election Unrest, Facing US$300 Million Losses

Ian by Ian
January 30, 2025
in Business, Company, News, Poultry, Press Release
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Poultry Sector Crippled by Post-Election Unrest, Facing US$300 Million Losses
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The Mozambican poultry industry is reeling from the devastating impact of the two-month-long violent protests that followed the October 9th election results. The sector was brought to its knees, with preliminary data indicating losses estimated at a staggering US$300 million nationwide. The shutdown has not only crippled production but also cast a long shadow over the future of numerous poultry businesses, threatening widespread job losses and further weakening the nation’s already fragile economy.

Yacub Latif, vice-president of the Agribusiness, Nutrition and Food Industry Department at the Confederation of Economic Associations of Mozambique (CTA), painted a grim picture of the challenges faced by the industry during the unrest. Access to essential raw materials, including eggs and incubators, was severely disrupted, effectively halting production. The situation was compounded by widespread vandalism and looting, with many poultry businesses targeted and their assets destroyed or stolen.

“The industry suffered immensely,” Latif explained. “Retailers were also impacted, as the supply of poultry feed dried up. Even when feed was available, its quality was questionable due to a lack of essential inputs. You may have noticed that live chickens in the Greater Maputo Region in December were smaller than usual – a direct consequence of the disruption.”

The impact of the protests extends beyond immediate financial losses. Latif expressed deep concern about the long-term consequences for the sector’s financial health. He emphasized that the private sector is urgently calling for a swift resolution to the political impasse, warning that continued instability will have catastrophic repercussions for the economy.

“If this situation persists,” Latif cautioned, “companies, both large and small-scale poultry farmers, will suffer even greater losses, and some may be forced to close their doors. We are talking about the potential loss of thousands of jobs, further exacerbating the economic hardship facing many Mozambicans. It is absolutely crucial to bring an end to this unrest to allow our economy to recover.”

The challenges faced by the poultry sector are multifaceted. Beyond the immediate disruption to production and the destruction of assets, the protests have also created a climate of uncertainty that is deterring investment and hindering future growth. Farmers are struggling to access credit, and consumers are wary of making long-term purchasing decisions. The cumulative effect of these factors is a significant threat to the industry’s long-term viability.

The CTA is working closely with its members to assess the full extent of the damage and to develop strategies for recovery. However, Latif stressed that the private sector cannot shoulder this burden alone. He called on the government and political leaders to prioritize dialogue and reconciliation, emphasizing that a stable and predictable political environment is essential for economic recovery and growth.

The post-election unrest has exposed the vulnerability of Mozambique’s economy to political instability. The poultry sector’s experience serves as a stark reminder of the human cost of conflict and the urgent need for peaceful solutions. The future of the industry, and indeed the broader economy, hinges on the ability of all stakeholders to come together and forge a path towards lasting peace and stability.

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