Côte d’Ivoire has applied a 9 percent value-added tax (VAT) on animal feed, related production inputs, and packaging materials, under a fiscal reform included in the 2026 finance law, the government announced. The measure, effective January 17, marks a shift from the previous full exemption for feed and associated inputs.
Until 2025, livestock and poultry feed, along with key production inputs, were exempt from VAT. The 2026 finance law removed these exemptions, bringing the products into the tax system. Although the initial draft proposed the standard 18 percent rate, authorities opted for a reduced 9 percent rate to limit the impact on stakeholders in the livestock and poultry sectors.
Feed and related inputs account for more than 60 percent of total production costs in livestock farming. Analysts say the introduction of VAT is likely to increase costs across the value chain, affecting feed manufacturers, breeders, and processors of animal products. The reform also raises questions about its potential effect on the growth ambitions of Côte d’Ivoire’s animal feed industry.
Balancing growth and fiscal revenue
The VAT measure follows a series of initiatives launched by the Ministry of Animal and Fisheries Resources in April 2025 to support the livestock sector. These included partial exemptions from customs duties and other taxes, ranging from 7 percent to 15 percent, on products used in animal feed. The government had signalled an intent to foster a favourable environment for domestic feed production while maintaining supply and quality.
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Private sector investment in the sector has accelerated, reflecting confidence in the market’s growth potential. In September 2025, Dutch company De Heus announced plans to build a new animal feed production facility in Korhogo, northern Côte d’Ivoire, aimed at strengthening its local market position. Details on capacity and investment costs have not been disclosed.
In the same month, Société ivoirienne de productions animales (SIPRA), the country’s leading poultry producer, secured US$23.5 million in equity investment from Norway’s Norfund. The funding is earmarked for expanding production capacity in feed manufacturing, livestock farming, and processing of animal products, while supporting innovation in animal nutrition and operational efficiency.
Implications for the feed industry
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Industry observers say the 9% VAT will increase input costs for producers and could put pressure on retail feed prices. The challenge for authorities will be to balance revenue mobilization with industrial competitiveness, ensuring that the new tax does not slow the sector’s expansion or undermine investment incentives.
Côte d’Ivoire has ambitious targets for its poultry industry. According to the country’s poultry association, Ipravi, the government aims to nearly double annual chicken meat production to 200,000 tons by 2030, up from 114,000 tons in 2024. Achieving this target will require a corresponding increase in animal feed demand, highlighting the importance of a stable and predictable cost environment for feed inputs.
The VAT reform coincides with broader efforts to strengthen domestic livestock production, reduce import dependency, and support food security. While the tax will contribute to government revenues, authorities are expected to monitor its impact closely and may consider complementary measures, such as subsidies or targeted support, to avoid burdening small-scale producers.
The Ivorian animal feed sector relies heavily on imported raw materials, including corn, soybeans, and wheat. Continued investment, both domestic and foreign, alongside strategic policy measures, is seen as essential for sustaining growth in production, feed efficiency, and the wider livestock value chain.
As the industry adapts to the new 9 percent VAT, stakeholders will be watching how the balance between fiscal reform and sectoral competitiveness is managed, with potential lessons for other African countries aiming to modernize their agricultural and feed production sectors.
