Capacity: 1-2 T/H
Date: Dec 30th,2016
Feed accounts for as much as 70 to 80% of poultry production costs in Tanzania. Yet corn prices in Tanzania are currently more than double the average cost due to restrictive import regulations, inadequate infrastructure and resulting limited corn imports. Adding to this high input cost, the Tanzanian government instituted the 18% value-added tax on animal feed sales in July 2016. The cumulative fiscal strain hit the local feed manufacturing industry, resulting in many millers going out of business temporarily or leaving the market permanently. Subsequently, poultry producers also halted production as the high costs and stagnant market price made profitable business impossible.
The removal of the tax on animal feed as of June 2017 allows for some poultry producers and feed millers to re-enter the market and compete in this growing industry. The removal of the tax is a huge relief to the industry at a time when the feed industry was already struggling with a severe regional drought that drove up the price of raw materials. In addition, the removal of the tax will ultimately benefit Tanzanian consumers by lowering the cost of poultry and eggs.
Tanzania customer, a family owned business, was initially established to manufacture and sell customized animal feeds to meet the specifications of its customers, primarily smallholder poultry farmers. As the Company expanded, however, They began producing its own recipe, gradually reducing its customization services. The Company now offers poultry feed products, including feed for broilers and layer birds, as well as veterinary services to its customers.
The Tanzanian customer established a small-scale chicken feed powder manufacturing line in 2016 with an output of 1-2 t/h, which mainly produces chicken feed. The project has been running until now, in good condition, stable operation and low failure rate!