Malawi's Poultry Value Chain Can Unlock Widespread Economic Benefits with Appropriate Policies and Investments

This policy brief examines the potential of Malawi’s poultry value chain to drive economic growth and contribute to the goals outlined in the Malawi 2063 development blueprint. Despite its relatively high per capita chicken consumption compared to neighboring countries, the poultry industry in Malawi faces significant challenges, primarily high feed costs due to elevated maize and soybean prices. This makes poultry products less affordable for consumers and constrains production growth. Using the Policy and Investment Prioritization through Value Chain Analysis (PPVC) approach, the study finds that targeted reforms could unlock substantial benefits across the value chain. Key among these reforms is reducing feed costs by removing the value-added tax on soybean cake and veterinary products, expanding maize production, and improving export processes, particularly into neighbouring Mozambique. Irrigation expansion and removing minimum farmgate prices for maize are also highlighted as critical interventions to ensure stable maize supply, reduce price volatility, and lower feed costs. Implementing these reforms could add $31.5 million to Malawi’s GDP by 2030, improve affordability for consumers, and increase poultry production by 48,000 tonnes. The proposed changes would not only benefit the poultry industry but also create positive spillovers across interconnected sectors, including maize, soybean, and feed production. Additionally, these measures are projected to lift nearly 580,000 people out of poverty by promoting affordable protein access, increased employment, and enhanced food security. The policy brief concludes by emphasizing the importance of comprehensive reforms to unlock the full potential of the poultry value chain for Malawi’s economic development.