Tanzania unveils US$1.3B poultry plan to cut feed costs

TANZANIA – Tanzania has unveiled a Sh3.5 trillion (about US$1.3 billion) National Poultry Development Strategy for 2026-2036, aiming to lower feed costs, increase domestic production of maize and soybeans, and strengthen small-business participation in the poultry value chain.

Feed is identified as the largest cost facing poultry producers, accounting for about 70% of production expenses. 

The government aims to reduce this share to 50% by strengthening local production of key feed ingredients, particularly maize and soybeans.

Under the strategy, soybean production is targeted to increase from about 25,000 tonnes to 300,000 tonnes by 2036.

Maize production for animal feed is expected to double to 1.5 million tonnes over the same period.

The government also plans to establish a Sh33 billion de-risking fund to encourage financial institutions to lend to soybean producers and support investment in inputs and storage infrastructure.

The focus on soybeans addresses a long-standing supply gap in Tanzania. 

Industry stakeholders have previously estimated annual soybean meal demand at between 130,000 and 150,000 tonnes, compared with domestic production of only 10,000-40,000 tonnes.

Building a stronger domestic feed supply chain

The strategy comes as Tanzania seeks to formalise and expand its poultry industry. 

In May, the Minister for Livestock and Fisheries, Ambassador Dr Bashiru Ally Kakurwa, directed officials to finalise the national strategy and launch it during the 2026 Nane Nane agricultural exhibitions.

The government is also looking to strengthen the wider agricultural value chain by increasing investment in commercial poultry feed production, including yellow maize and soybeans. 

Tanzania’s investment authorities have identified commercial feed production and soybean and maize supply as key opportunities for investors.

The strategy targets increasing poultry’s contribution to Tanzania’s gross domestic product from 1.8% to at least 3%. 

The poultry sector is projected to reach a value of Sh9.03 trillion (US$3.45 billion) as production and market opportunities expand.

Women and young people are also expected to benefit from the programme. 

More than 3,000 small and medium-sized enterprises are targeted for training to provide chick-rearing services and other support to poultry farmers.

The strategy comes amid continuing efforts by private-sector players to address feed affordability. 

In June, Tanzanian researcher and entrepreneur Dr White Frank said his company, Afrimix Animal Feeds, was preparing to commercialise a locally developed poultry feed formulation designed to reduce production costs by about 20%.

Tanzania has also been working to expand its domestic soybean supply. 

The Tanzania Sustainable Soybean Initiative has introduced higher-yielding varieties and established links between farmers and buyers, with 18 major buyers previously committing to source soybeans locally.

The government allocated Sh433.3 billion (US$164.2 million) to the Ministry of Livestock and Fisheries for the 2026/27 financial year, including funding for increased production, market development, investment, research and extension services.

For poultry producers, the success of the 10-year strategy will depend heavily on whether increased maize and soybean production translates into a reliable and affordable supply of feed ingredients. 

Reducing feed costs could improve farm margins, strengthen the competitiveness of Tanzania’s poultry industry, and support greater domestic production of meat and eggs.

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