Fresh chicken market keeps Kibwika evolving

Global demand for poultry is climbing at a fast pace. Between 1960 and 2020, global production skyrocketed with Asia leading the way. In fact, over the decades, poultry has become the most-consumed livestock commodity in the world.

In 1960 total chicken consumption was less than 10 million tonnes, and by 2021 it had climbed to more than 120 million tonnes. By 2050, it is predicted to reach 180 million tonnes. That will have been a 1,200 percent increase from 1960 to 2050! That’s more than three times the growth rate of pork and 10 times that of beef. Chicken is on track to account for 41 percent of all meat eaten by 2030. This means that poultry farming was more lucrative with fewer farmers than now.

For Janet Kibwika, a 66-year-old poultry farmer in Wakiso, these trends help her to keep bringing new ideas.

Kibwika embarked on her poultry farming journey in 1994 while working as a transporter at Kyagalanyi Coffee Company. What started as a side hustle with 250 birds in her garage soon became a thriving venture.

“By then, I could get at least Shs90,000 in profits. So it really encouraged me,” she recalls.

Kibwika’s determination led her to save enough money to purchase her first piece of land within just three rounds of poultry sales. She continued to expand, eventually acquiring two acres of land in Wakiso District in 2009. Kibwika’s love for chicken rearing became her daily routine, and she was managing a stock of 1,000 chickens monthly before the Covid-19 pandemic hit.

“It’s the business which I am very much interested in because I do it from home. As you see me, I have my office here. After waking up, I look after my chicken and that is my routine all year,” she says.

The pandemic presented unforeseen challenges as lockdowns disrupted her sales. With 650 birds ready for sale during the first lockdown, Kibwika struggled to find buyers. Her profits dwindled, and she found herself exploring alternative businesses. At this point, Kibwika realised the importance of formalising her business instead of selling to unreliable buyers from major urban markets.

“During the first lockdown, I had 650 birds ready for sell. I had nowhere to sell them because we could not even come out of the houses. That was the first blow ever since I started the business since 1994. I only realised only Shs7m. when I restocked, another lockdown was announced. That put me in a very tricky situation. I started looking around for another business I could do with that little money and I ate most of it,” she says.

Business sense

Kibwika’s journey took a significant turn when she attended a farmer’s meeting in Nansana, where she met a veterinarian officer who referred her to a business training session at Ivory Hotel. This is where she met Jimmy Byaruhanga, a trainer with the ECOS program. ECOS focuses on equipping small and medium-sised enterprises (SMEs) with the skills needed for growth.

Kibwika’s interaction with ECOS trainers emphasised the importance of business registration, financial management, and other essential aspects of running a successful enterprise. She realised that without formalising her business, she was limiting her potential. With guidance from experts, Kibwika registered her business as Jaki Agribusinesses Limited, a name derived from her own, Janet Kibwika. Kibwika formed a board that basically has her four children and now she is fully registered with URSB. She obtained a Tax Identification Number (TIN), setting her on the path to compliance.

The training extended over four months and covered various critical topics, including financial management and price risk management. Kibwika attended every session and opened a bank account for her business. She learned the significance of record-keeping, which she now takes seriously. Separating personal and business finances became a priority, leading to improved financial discipline.

“Now I write down everything and I have learnt to separate my own money for domestic expenses from the business. Now I realise, it is not my own now but for us. You see with us farmers, documenting is a very big problem. For instance, when you buy chicken feeds, you postpone it to another day because you are tired. When it continues like that, you forget,” she says.

Possibilities

Kibwika’s journey has opened her eyes to possibilities she hadn’t explored before. Her immediate goal is to restore her business to pre-pandemic levels, which requires financial assistance. Currently, she manages 250 birds each round and envisions expanding her chicken house into a double-story structure for year-round production. She learnt how to diversify her business by venturing into related businesses.

“I have to be on the market regularly. But even beyond, I have been taught about the value chain. You can do businesses which are in the same line. I have the plan of keeping the layers also. I also have a plan of starting a bakery because I have every done it. I can also open up a shop selling the feeds because I have all the knowledge,” Kibwika says.

Kibwika is now featured on the Uganda Investment Authority (UIA) portal, a significant pathway to business development.