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    An analysis of the regional competitiveness of Zimbabwe’s broiler enterprises

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    Date
    2013-06-04
    Author
    Chikangaidze, Shepherd James
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    Abstract
    The purpose of this study was to analyze the regional competitiveness of Zimbabwe’s commercial broiler industry. The study analyzed the country’s broiler production system and compared it with regional broiler production. The analysis was done to determine the measures of distortions in the local broiler industry and the competitiveness of broiler production in Zimbabwe given that the local broiler industry was protected from regional competition through import restrictions before the STERP. The main tool of analysis was the Policy Analysis Matrix (PAM). The PAM was used to analyse the private and social profitability of broiler production and the effects of distortions in domestic prices. Indicators of comparative advantage and measures of distortions were used in the analysis. Data were collected by survey of retail prices of inputs and output to construct the budgets whilst international prices were obtained from the internet and converted to the US dollar equivalent using the prevailing official exchange rates. The data were collected between March and July 2011. The quantities of inputs used in production were obtained from key industry players as well as the Ministry of Agriculture. In analysing the relationship between world prices and domestic prices for output and inputs, the Nominal Protection Coefficient (NPC) was used to see the extent of protection in the sector. From the analysis, the NPC on output was found to be 1.38, indicating that domestic broiler meat prices are 38 percent higher than world prices. On inputs used, the research indicated an NPCI of 1.264, implying that domestic prices are 26.4 percent higher than social prices. The DRC was found to be 0.56, implying that the country has a comparative advantage in broiler production. The comparative advantage means that it is profitable to produce locally and save foreign currency that is currently being used to import broiler meat. The study recommends the need to improve the institutional environment to improve the competitiveness of Zimbabwe in general and the broiler sector in particular. Improved broiler production can be enhanced by increase in the production of key inputs for broiler production, maize and soyabean.
    URI
    http://hdl.handle.net/10646/1069
    Subject
    broiler
    comparative advantage
    competitiveness
    PAM
    Zimbabwe
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    • Faculty of Agriculture Environment and Food Systems e-Theses Collection [105]

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