A severe shortage of feed for chickens, coupled with a lack of forex for vaccines imports, threatens the poultry sector.

The price of feed resources has been on an upward climb for months and shows no signs of stabilising. Though about 70pc of poultry feed is generated from maize and soybean, it can contain up to 10 varieties of grain and legume products. A quintal of maize was sold last month for 1,400 Br, but it has since jumped to over 2,000 Br. A quintal of soybean, which was sold at 3,000 Br just three months ago, is up to 4,000 Br.

Industry insiders fear this could potentially drive the already high costs of poultry products up and impacts farms struggling to obtain inputs, including supplementary nutrition necessary to keep their animals healthy.

"Raw materials suppliers might be hoarding to make more profit, thinking that NGOs will buy their products," said Demeke Wondimagegn (DVM), an industry insider with over 12 years of experience.

Ethiopia exports poultry feed, mainly to the Middle East – a significant influence on the business of farms. With shortages due partly to the diverted supplies, it threatens to bankrupt some of the 14 large poultry farms. The bigger farms distribute their products to small-scale poultry farmers, who are unable to keep up with the continually rising costs of feed.

Hope Poultry Farm is a case in point.

Last month, the farm bought 5,000 heads of chicken from EthioChicken, a large-scale enterprise, for 52 Br each. Though the company hoped to sell the chickens raised on its farm at 160 Br, it could only find buyers for 3,000 for 110 Br apiece. Inability to cope with rising feed costs, which have gone up by 500 Br to 2,950 Br a quintal in recent weeks, compelled the managers to sell for a price much lower than what they had hoped to get, according to Eskindir Denberu, the manager of Hope Poultry Farm.

"We use three quintals of poultry feed a day," Eskindir told Fortune. "We can't continue our business with these prices."

Businesses like Eskindir's also have to contend with a lack of supplementary nutrition products to keep the chickens healthy. This combination of vitamins, minerals, and amino acids, dubbed 'premix,' is imported, mainly from the Netherlands. A shortage of foreign currency has curtailed the supply.

A shortfall in parent stock needed to lay eggs is also a challenge facing the farms. These take up to five months to begin laying eggs and remain producing eggs for about a year before they are replaced. The dearth of foreign currency is an issue here, with businesses like Alema Poultry Farm, located in Bishoftu, taking a hit.