Malawi poultry sector is likely to welcome with smiles news that one of the world’s leading companies has clinched a debt investment into a Malawian poultry operator.
The company, Food and Feeds Wholesalers Ltd, which trades as Kapani intends to expand its cold chain infrastructure and build a modern processing unit.
“Kapani will also establish a buying programme from local farmers, providing training and a reliable market. The outreach programme will work with up to 1,000 small-scale chicken producers under contract. Kapani will buy and process the chickens and sell them under a new brand targeting the value segment. Kapani specializes in dressed poultry products for the local market.
“AgDevCo’s investment will help the company expand its market in Malawi and, in the longer term, within the East Africa region,” reads a post by marketwatch.com.
Kapani will embark on this expansion along with AgDevCo Malawi – a social impact company that focuses on agribusiness projects.
But the coming of this means that farmers will now be acquainted with skills and also have a rather wider market.
In its article in 2010, How We Made It in Africa noted that evident to large number of dairy products currently being imported, around 50% of consumption in Malawi, the industry looks not fully developed.
In the 2017/18 national budget, the Malawi government announced it had withdrawn the Value Added Tax (Vat) it imposed on milk.
There was a standing 16.5 VAT on the dairy produce before this was withdrawn.