Chinese expansion in poultry market fueling egg glut – Farmers Warn

The Greater Accra Poultry Farmers Association has raised alarm over increasing foreign involvement in the sector, describing it as a major contributor to the egg glut currently affecting producers across the region.

According to the Association, the situation is already impacting worker salaries and pushing several local investments to the brink of collapse.

The industry, which showed strong promise earlier in the year, began to experience a sharp decline in June when farms—particularly those in Sunyani—started recording rising egg surpluses.

CEO of the Association, Ali Mohammed, said about 38,000 crates of eggs remain unsold, attributing the situation to growing foreign participation, especially by Chinese traders, in the retail market. He believes their involvement is squeezing out local producers.

I believe every sector in the economy has the participant defined and I am not sure I can go to India, China, Ethiopia today and I will be allowed to establish a poultry [farm] without the necessary regulation being checked to start just producing eggs.

“I know the retail sector of the economy is purely meant for locals and even if there is going to be foreign participation, there are clear rules as defined. What we have seen, I am afraid because these are people coming in with huge capitals. I am afraid our locals can’t compete fairly. These are huge poultry farms around Asutuare area, Fetteh. The Chinese are not only in galamsey, they are into poultry,” he said.

A visit to Blessed Farms, which keeps 1,500 birds and produces about 30 crates of eggs daily, highlighted the severity of the crisis. Owner Marian Mensah said demand has dropped sharply, making it difficult to sustain operations and cover daily expenses.

“These days they don’t buy because they said the ones outside is cheaper. The Chinese people are spoiling our market. They said the big ones they sell it GHȼ40-45. If you buy quality eggs it is good because you have to buy quality feed. It affects me [if they don’t buy] because you don’t sell and get money, you can’t take care of your family,” she lamented.

Employees are also feeling the impact. Rita Doglo Venyuye, an employee of Blessed Farms, fears her salary may not be paid this month due to the slowdown.

“Two weeks now into November, I can say it has been difficult. I know that it will delay my payment because the things I will sellout and they will pay me out of it are still the,” she mentioned.

Sector players warn that more farms could collapse if the trend continues. Jerry Otoo Larkai of Larkai Farms, which also manages 1,500 birds, said many businesses are already struggling to survive.

“It will collapse. Most farmers have even sold off their birds because they can’t even feed them. If there is a glut and the eggs are rotting in the farms, at the end of the day the birds are still there and you need to feed them.

“Where are you going to get the money to feed them? This is a big challenge we are facing as an industry. I can count about 10-15 farms that have shutdown,” he remarked.

Although President John Mahama has directed schools to procure local rice, maize, chicken, and eggs, the Association says it is waiting for final implementation modalities. It is calling for stronger government intervention to protect local poultry businesses.

“We are making a follow up and we want to find out from the Buffer Stock and under the modalities how they intend off taking from our members. Is it going to be if I am in central, secondary schools within central region are going to take from us?,” Ali Mohammed said