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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Angola Continues to Import from the U.S.

10/08/2021

The USDA-FAS GAIN Report on poultry production in Angola, AO2021-0004 was released on September 29th. Domestic production will attain 32,000 metric tons in 2022, approximately 6.5 percent higher than in 2021. In the coming year, Angola will rely on imports for 88 percent of consumption, estimated at 277,000 metric tons. Based on a population of 33 million, per capita consumption will be 18 lbs. Given that only 20 million of the population are economically active, effective consumption is in the region of 30 pounds per capita. Major exporters to Angola comprise the U.S. with 54 percent of the market, Brazil at 28 percent, the E.U. at eight percent, the U.K at four percent, and other nations, six percent.

 

In July 2018 the Government introduced a Production Support, Export Diversification, and Import Substitution program aimed at weaning the economy from a dependency on oil exports.  With respect to the chicken industry, this initiative has made little impact on domestic output.  Restraints to expansion include a ban on GM grains and soybeans and a lack of domestic cultivation requiring importation of GM-free feeds.  Virtually all imports, including pharmaceuticals, biologics and equipment are subjected to freight costs and significant markups. This situation increases the cost of production estimated at close to $1 per lb. for a live 3.3 pound bird.  The largest chicken producer has an output of 80,000 broilers per week and is located in Luanda Province close to the capital.  This company dominates domestic production with two other units processing chicken.  Most households in rural areas maintain backyard birds.

 

For the first eight months of 2021, Angola, ranked eighth among importers from the U.S, receiving 80,533 metric tons valued at $66 million with a unit price of $823 per metric ton.  Import volume and value for the first eight months of 2021 exceeded the corresponding period in 2020 by 42 and 54 percent respectively.  In 2020, Angola imported 115,827 metric tons valued at $81 million with a unit value of $699 per metric ton.  Imports in 2020 were 30 percent lower and value was 45 percent less compared to 2019.

 

Angola has a long history of mismanagement and corruption that has not changed materially since the previous dos Santos regime that ruled the country from 1979 to 2017.  According to Transparency International, Angola ranks 142nd in corruption among 180 nations with New Zealand ranked least corrupt and Somalia, along with other failed states, ranked from 150 to 179.

 

President Joao Lourenco is attempting to stamp out corruption  by enacting legislation  aimed at preventing money-laundering, allowing repatriation of stolen assets, imposing transparency in procurement of assets and contracts in the public sector, eliminating the need for foreign businesses to have local “partners” and criminalizing private corruption with severe penalties. It is doubtful whether Lourenco will be able to reverse 40-years of  gasosa conduct of business in Angola within a decade. 


 
Copyright © 2021 Simon M. Shane