…as US government injects $31.4 million investment
Mathatisi Sebusi
The US government’s Department of Agriculture (USDA) has awarded Lesotho M589 million ($34.1 million) capital injection to help develop the country’s poultry industry. The investment could not have come at a more opportune time as the country reels from serious shortages of chicken products.
Most of Lesotho’s chicken products are imported from South Africa. A severe outbreak of Avian flu there and the subsequent culling of millions of chickens as well as the government’s ban on imports from SA have spawned a severe shortage of chicken in Lesotho forcing outlets like the world famous KFC’s operations in the country to be temporarily stopped.
The support by the US government was done under the program titled Food for Progress (FFP) which has been supporting efforts to improve agricultural systems and stimulate rural economies around the globe.
This is the first time Lesotho is receiving the FFP funding. The 2023 FFP Program will also invest in projects in Bangladesh, Cote d’Ivoire, The Gambia, Mauritania, Nepal, and Togo.
The FFP funding is intended to breathe life into the country’s poultry sector. Currently, Lesotho imports an estimated M2.1 billion worth of chickens from SA per annum.
After the outbreak of Avian Flu in SA, Minister of Agriculture, Food Security and Nutrition, Thabo Mofosi, on 12 October 2023 imposed an indefinite ban on all imports of chicken products from South Africa.
Permits on poultry and poultry products which were already issued were revoked with immediate effect.
The ban will only be lifted when South Africa has put the influenza under control.
As a result, Lesotho should either source new import markets or capacitate its own poultry sector to meet its demands.
The FFP program is also intended to promote climate-smart agricultural practices, improve food security, and foster economic growth.
The US embassy in Maseru stated that by providing crucial resources and technical assistance, the program would facilitate the establishment of sustainable market linkages and enhance trade opportunities for Lesotho.
“As the world emerges from a global pandemic and faces the challenges of rising hunger and poverty, climate change, and the raging war on Ukraine, more than 190 million people worldwide experience acute food insecurity,” the US embassy in Maseru stated.
Food insecurity had become an issue needing urgent intervention, as its effects were widespread and devastating. Where there was food insecurity, farmers lost their livelihoods, the embassy said.
“Parents spend hours every day trying to secure their family’s next meal. Hungry children struggle to learn, and they suffer irreversible health consequences. Already vulnerable populations are always hit hardest, and food insecurity also holds back broader economic growth and increases the risk of violent conflict and civil unrest,” the embassy’s statement read.
The embassy said commodities produced under the FFP program would be sold in local and regional markets. The proceeds would help strengthen short and long term food security “through development of agricultural value chains and trade-promoting activities”.
Economist Robert Likhang told the Sunday Express the capital injection was a very good boost to Lesotho’s economy as it will enhance local production.
“And the fact that people will be hired locally for the production will also increase money circulation which is a big factor in growing and stimulating economic growth,” Mr Likhang said.
“The capital injection is also possibly going to increase the country’s exports in a sense that poultry products that will be produced will be more than needed for local consumption.”
He, however, emphasized it was important that the value chain be studied and designed properly to avoid challenges that could be created by shortages in the supply chain.
Access to poultry feed was a particular challenge for local producers. Therefore, Lesotho needed to avoid a situation where it would find itself with improved poultry production only to struggle to get the requisite chicken feed.
“The element of supply must also be clear in the value chain to make sure that it does not cause unnecessary risks. It is not just about chicken feed, the value chain in terms of expertise as well, in terms of veterinary doctors, should anything happen….We have to make sure that in the whole business model, those elements in the value chain are guaranteed,” Mr Likhang said.
“Things like logistics are important, to clearly state how the chicken will be stored, how it will be transported and distributed among others.”
He said a clear agreement between Lesotho and South Africa on chicken trade was also important.
Mr Likhang said if the funding goes to farmers, there would also be a need for accounting and business management training.
“Most times we put money into capital expenditure and look into things like materials and logistics but do not give sufficient attention to whether farmers will be able to do proper accounting and manage their operations,” he said.
Another local business executive, Thabo Qhesi, said the ban on SA chicken was negatively affecting local smallholder farmers, and other key stakeholders in the value chain such as transporters and businesses that sell animal feeds and medicines as they no longer had a market to serve.
He noted that Lesotho had the capacity to produce its own poultry products and the funding from America would immensely help.
“Lesotho stands a better chance to produce poultry related products with the support of existing global frameworks such as Enhanced Integrated Framework under the supervision of the United Nations Development Programme Lesotho, SADP II supported by International Fund for Agriculture Development and World Bank, but Lesotho is not able to utilise such due to inadequate planning,” Mr Qhesi said.
