Cost Advantage of Biofortified Maize for the Poultry Feed Industry and Its Implications for Value Chain Actors in Nepal

Abstract

Abstract Feed constitutes a significant cost of poultry production. We assess the cost-reducing effects of using Quality Protein Maize (QPM) in the poultry feed industry in Nepal. We also assess market structure of the poultry feed industry. Key informant interviews and short surveys were conducted with actors in the feed industry and maize value chain. We formulated a least-cost diet for broilers and layers with regular maize and QPM using a linear programing model. The results indicate that a ton of feed produced using QPM instead of regular maize reduces feed cost by at least US$7.10 for broilers and at least US$4.71 for layers of different ages. With the cost saving, the feed industry can pay a maximum of 4% price premium for QPM over regular maize. A strong linkage between feed industry and maize value chain actors is required for the feed industry to benefit sustainably from the use of QPM.