POULTRY SECTOR ACTION PLAN JANUARY 2009 This publication was produced by Chemonics International under contract 112-C-08-00002 for the United States Agency for International Development (USAID). It was prepared Dr. Tom Fattori of Chemonics International and PSCPE consultant, with input from Dan Cruz-DePaula, PSCEP Chief of Party. Its contents express the views of the author and not necessarily those of USAID. PSCEP – POULTRY ACTION PLAN TABLE OF CONTENTS SUMMARY ................................................................................................................................... 5 AZERBAIJAN AND THE POULTRY SUB-SECTOR .............................................................................. 5 TABLE EGG VALUE CHAIN ............................................................................................................ 5 CHICKEN MEAT VALUE CHAIN...................................................................................................... 6 POULTRY SOCIAL ORGANIZATIONS............................................................................................... 7 POULTRY SUB-SECTOR ENABLING ENVIRONMENT ........................................................................ 8 ACTION PLAN – AND RECOMMENDATIONS ................................................................................... 8 SECTION 1. OVERVIEW......................................................................................................... 10 1A. INTRODUCTION................................................................................................................ 10 1A1. POULTRY SUB-SECTOR ASSESSMENT GOAL AND OBJECTIVES............................................. 10 1A2. ASSESSMENT METHODOLOGY............................................................................................ 10 1A2. CONCEPTUAL OVERVIEW OF A POULTRY SUB-SECTOR TRANSITION ............................... 1011 1A4. POULTRY INDUSTRY TRENDS............................................................................................. 12 1B. AZERBAIJAN – COUNTRY BRIEF ................................................................................ 17 1B1. POPULATION TRENDS ......................................................................................................... 17 1B2. DEMOGRAPHICS ................................................................................................................. 18 1B3. POULTRY SUB-SECTOR STRUCTURE............................................................................... 19-23 SECTION 2. POULTRY SUB-SECTOR ASSESSMENT FINDINGS ................................. 24 2A. MARKET ANALYSIS – POULTRY PRODUCTS.......................................................... 24 2A1. IMPORTS ....................................................................................................................... 24-25 2A2. EXPORTS............................................................................................................................ 26 2A3. INDUSTRY TRENDS ............................................................................................................. 27 2A4. PRICE TRENDS.................................................................................................................... 27 2B. TABLE EGG VALUE CHAIN ........................................................................................... 29 2B1. OVERVIEW ......................................................................................................................... 29 2B2. TABLE EGG MARKET SITUATION......................................................................................... 29 2B3. TABLE EGG VALUE CHAIN MAPPING ................................................................................... 30 2B4. TABLE EGG VALUE CHAIN TECHNICAL ANALYSIS ............................................................... 33 2B5. TABLE EGG VALUE CHAIN SWOT ANALYSIS ..................................................................... 33 2B6. TABLE EGG VALUE CHAIN DEVELOPMENT STRATEGY......................................................... 34 2C. CHICKEN MEAT VALUE CHAIN .................................................................................. 36 2C1. OVERVIEW ......................................................................................................................... 36 2C2. CHICKEN MEAT MARKET SITUATION .................................................................................. 36 2C3. CHICKEN MEAT VALUE CHAIN MAPPING............................................................................. 37 2C4. CHICKEN MEAT VALUE CHAIN TECHNICAL ANALYSIS......................................................... 42 2C5. CHICKEN MEAT VALUE SWOT ANALYSIS .......................................................................... 42 2C6. CHICKEN MEAT VALUE CHAIN DEVELOPMENT STRATEGY .................................................. 43 2D. FEED INGREDIENTS AND MILLING ........................................................................... 43 2D1. OVERVIEW ......................................................................................................................... 43 Page 2 of 62 PSCEP – POULTRY ACTION PLAN 2D2. PRIMARY INGREDIENTS...................................................................................................... 44 2E. POULTRY SUB-SECTOR ENABLING ENVIRONMENT ........................................... 44 2E1. OVERVIEW ......................................................................................................................... 44 2E2. EDUCATION, TRAINING, AND CERTIFICATION ..................................................................... 45 2E3. POLICY AND REGULATORY ................................................................................................. 46 2E4. FINANCIAL SERVICES.......................................................................................................... 48 SECTION 3. POULTRY SUB-SECTOR ACTION PLAN..................................................... 52 3A. ENHANCING THE AZERBAIJAN POULTRY SOCIETY........................................... 52 3A1. OBJECTIVES ....................................................................................................................... 52 3A2. ACTIONS ............................................................................................................................ 53 3A3. BENCHMARKS.................................................................................................................... 54 3B. BUILDING CUSTOMIZED POULTRY BUSINESS SIMULATION MODELS......... 54 3B1. OBJECTIVES ....................................................................................................................... 54 3B2. ACTIONS ............................................................................................................................ 56 3B3. BENCHMARKS .................................................................................................................... 56 3C. DEVELOPING STRATEGIC PLANS .............................................................................. 56 3C1. OBJECTIVES ....................................................................................................................... 56 3C2. ACTIONS ....................................................................................................................... 56-57 3C3. BENCHMARKS .................................................................................................................... 57 3D. INCREASING PRODUCTIVITY...................................................................................... 57 3D1. OBJECTIVES ....................................................................................................................... 57 3D2. ACTIONS ............................................................................................................................ 58 3D3. BENCHMARKS.................................................................................................................... 58 3E. ACCESSING FINANCE ..................................................................................................... 59 3E1. OBJECTIVES........................................................................................................................ 59 3E2. ACTIONS ............................................................................................................................ 59 3E3. BENCHMARKS .................................................................................................................... 59 ANNEX A. ACTION PLAN TIMELINE ............................................................................ 60-62 Page 3 of 62 PSCEP – POULTRY ACTION PLAN Acronyms AI Avian Influenza DOC Day old chicks MDPM Mechanically deboned poultry meat MT Metric Tons PSCEP Private Sector Competitiveness Enhancement Program SPS Sanitary and Phyto-Sanitary TBT Technical Barriers to Trade Terminology • Pullet is a female chicken not yet in egg production • Hen is a female chicken laying eggs • Parent breeder stock, are mixed male and female chickens producing fertile eggs to be set in incubators for hatching • Straight run means mixed male and female chickens • Layer type chickens are a breed with egg production traits • Broiler type chickens are a breed with meat production traits • Dual purpose breed is a breed of chicken with a mix of egg and meat production traits • Spent hens are hens that have finished their egg production