Ivory Coast’s poultry industry has raised alarm over a government decision to impose an 18 percent value-added tax on poultry feed from early January, warning the move could sharply raise production costs, weaken local producers and threaten national output.
From January 2, 2026, poultry feed will fall under the standard VAT regime after years of exemption, following the adoption of the 2026 tax annex attached to the state budget. The measure has sparked concern across the sector, which is already grappling with rising input prices and intense competition from imported poultry products.
The decision marks the end of a fiscal exemption long regarded by industry players as strategic to the stability and growth of domestic poultry production.
Kindo Kouadio Armand, president of the Ivorian Poultry Interprofession (INTRAVI), said discussions with authorities had failed to reverse the measure.
“The tax annex for the 2026 fiscal year ultimately maintained the application of the 18 percent VAT on poultry feed as of January 2, 2026, despite the consultations held within the interprofession,” he said.
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The VAT decision forms part of Ivory Coast’s 2026 state budget, set at 17,350.2 billion CFA francs (US$28.8 billion). While authorities have not publicly detailed their justification for the move, the removal of the exemption is expected to boost tax revenues at a time when the government is seeking to finance infrastructure, social spending and public services.
For poultry farmers, however, the timing and scale of the tax are causing deep unease.
Feed accounts for nearly 70 percent of poultry production costs, making it the single largest expense in the sector. Producers fear that applying VAT will immediately push up operating costs and squeeze already thin profit margins.
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“This is a hard blow for a sector where feed represents the bulk of our costs,” said Jean-Marc Kouadio, a poultry farmer in Songon, near Abidjan. “This tax will inevitably have an impact on the price of poultry.”
Such price increases could ripple through the food chain, affecting both producers and consumers in a country where purchasing power remains a sensitive issue and poultry meat is a key source of affordable protein.
Beyond short-term price pressures, farmers are also worried about the longer-term implications for national production.
In Dabou, west of the commercial capital, poultry farmer Arthur Esmel warned that the new tax could undermine the competitiveness of local producers and revive painful memories of past market disruptions.
“When taxes on poultry imports from outside ECOWAS were lowered, the price per kilogram fell to 400 CFA francs, which weakened local producers,” he said. “With this VAT, many farmers could abandon the sector.”
Industry representatives fear that higher production costs could open the door to cheaper imported poultry, often frozen and mass-produced, undercutting domestic output and eroding years of investment in local capacity.
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The poultry sector plays a significant role in Ivory Coast’s economy, providing thousands of direct and indirect jobs across farming, feed production, transport and distribution. It is also considered strategic for food security, reducing reliance on imports and stabilising supply in urban markets.
INTRAVI has signalled it will intensify efforts to persuade authorities to reconsider or adjust the measure. Its leadership has announced plans for renewed dialogue with the government in search of what it describes as a “balanced solution” that safeguards public finances without endangering the sector’s viability.
Options under discussion within the industry include a phased introduction of the tax, targeted subsidies, or compensatory measures to ease the burden on producers.
With only weeks before the tax comes into force, the stakes are high. Producers warn that without mitigation, the VAT could trigger higher consumer prices, business closures and a decline in domestic production capacity.
“The challenge now is to ensure that this fiscal reform does not undermine a strategic sector for employment, food security and national production,” an industry source said.
For Ivory Coast, one of West Africa’s fastest-growing economies, the debate highlights the delicate balance between expanding the tax base and protecting sectors deemed vital to social stability and economic resilience.
