Success Story

The A.M.A. (Association of Mozambican Poultry Farmers) brand is widely recognized throughout Mozambique, thanks to a successful marketing campaign TechnoServe helped run.

Mozambican farmer Celestino Manquante had long struggled to support his family of 10. Growing crops such as peanuts and corn rarely yielded enough income to buy the most basic necessities. That all changed three years ago when Manquante got involved with TechnoServe’s poultry program. “My involvement with TechnoServe has been a gift from God,” he says.

In the past, Mozambicans mainly purchased imported poultry. Though TechnoServe research showed that consumers preferred fresher domestic chicken, the majority purchased imported chicken because, having exceeded its “sell-by date,” it was being “dumped” into the market at rock-bottom prices.

TechnoServe concluded that with the right policies and technical support, including integrating best practices in biosecurity and food safety, a revitalized Mozambican poultry industry could thrive, creating jobs, increasing local farmer incomes and providing consumers a safer food supply.

With support from the U.S. Department of Agriculture’s Food for Progress Program in fiscal years 2006-2008, and co-funding from the U.S. Agency for International Development, TechnoServe launched a three-year industry development program to strengthen the sector. The program is helping 750 farmers like Manquante to increase their incomes by $500 a year (average annual income in rural areas of Mozambique is approximately $120).

TechnoServe is taking a comprehensive approach to improving the industry as a whole, focusing not only on producers and farmers, but also on creating a safe food supply. To address immediate concerns regarding avian influenza, prior to support from USDA, TechnoServe leveraged the expertise of Cargill and developed a culling plan and a small-scale farmer compensation plan to implement in the event of a disease outbreak. The plan was approved by the Mozambican government, which earmarked an initial $10 million for the plan in the event of an outbreak.

Under the Food for Progress program, TechnoServe is now working with poultry industry stakeholders to integrate bio-security measures in existing and new poultry operations. TechnoServe is also building the capacity of the national veterinary service to fulfill this function over the long-term.

Improving the policy environment is key to improving competitiveness and “leveling the playing field” for local industry. TechnoServe supported the National Poultry Association’s (NPA) efforts to work with the government to introduce regulations requiring all poultry products be imported within 90 days of slaughter. This has largely eliminated the “dumping” of imported poultry, creating a more level playing field for domestic producers. Domestic production now accounts for 50 percent of overall consumption, up from 30 percent in 2005.

TechnoServe worked with the NPA to develop and run a highly successful national marketing campaign championing domestic chicken. It featured a series of print, television and radio ads (including a popular cartoon ad featuring a Mozambican hen strutting through a roost of admiring male chickens) that ran in eight cities. As a result, brand recognition is high and domestic consumption is increasing.

To strengthen opportunities for small-scale farmers to benefit from the sector’s revitalization, TechnoServe developed a program linking poultry farmers such as Manquante with large integrated poultry producers. The program offers farmers access to a credit system, allowing them to receive chicks, feed and vaccinations up front. The costs are deducted from their income when they sell full-grown chickens back to the commercial producers.

One company that is participating in this program is Novos Horizontes (“New Horizons”). In 2007, Novos Horizontes provided more than 200 local farmers with the technical advice and training to raise chickens profitably.

Novos Horizontes also included training for the families in ways to manage their newly increased incomes. Manquante and his wife decided to use their additional income to register all their school-age children for school for the first time. They’ve also made home improvements and invested in a bicycle, to avoid long treks on foot to the nearest city for supplies.

The gains of the program go well beyond poultry itself. Feed offers a major opportunity to increase rural incomes, especially for small farmers like Manquante. The USDA program has been a major contributor to expanding the market for tens of thousands of small-scale producers of feed grains. The market has grown from $15 million in 2004 to a projected $65 million in 2009—largely from small-scale production.