Namib Poultry Industries bullish – Targets 95% domination of the market
Riding on a 46% excise duty placed on all poultry products coming into the country, Namib Poultry Industries says it is confident that its newly-launched brands will secure a 95% market share in the next three months.
Speaking to the Economist at the launch of Namib Poultry Industries brands in the capital on Monday, general manager Gys White was bullish on his company’s prospects despite fierce competition from well established brands from South Africa and South America. He said: “The 46% import levy will make them (imports) less competitive. Within the next three months we are targeting 95% of the market share because we are able to supply the whole market because of our price, quality and availability.”
The country’s first large scale commercial poultry plant received a major boost from the Ministry of Trade and Industry, after the ministry placed a 46% excise duty on all poultry products coming into the country. The infant industry protection for the N$500 million project is scheduled to be operational by 1 June. The project will enjoy the protection status for the next eight years with 46% in the next four years, 30% for two years and thereafter 20% in the last two years.
But despite the imposition of the import levy, White assured consumers that the price of chicken will not go up saying: “The price of the local chicken is not going to go up. Our benchmark will always be the import parity price. The price that you get in South Africa plus 1% for the additional VAT plus transport cost which is on average N$1.20 per kg.”
Situated on the Klein Okapuka farm, about 30 km from Windhoek towards Okahandja, the poultry plant is currently slaughtering 40 000 to 50 000 birds per day. It is however expected to produce 2000 tonnes of chicken per month by the end of June. The facility has the capacity to expand production to 500,000 birds per week.
The poultry project is expected to directly employ more than 500 people and close to 100 people through service agencies contracted by Namib Poultry Industries. By the end of June 2013, the impact on the countries’ GDP would be close to N$ 590 million per annum or 0.7% of GDP, White said.
It is estimated that the value of import substitution would be in the region of N$350 million per annum.