• Animal feed, inputs, and packaging now subject to a reduced 9% VAT

• Measure replaces a full exemption removed under the 2026 finance law

• Industry faces higher costs despite strong growth ambitions

Côte d’Ivoire has introduced a 9% value-added tax on animal feed, related production inputs, and packaging materials, under a fiscal reform included in the 2026 finance law. The measure, announced in a statement by the General Directorate of Taxes, took effect on Saturday, January 17.

Until 2025, feed for livestock and poultry, as well as production inputs, were exempt from VAT. The fiscal annex to the 2026 finance law removed these exemptions, bringing the products into the VAT system.

Although the initial draft provided for the standard VAT rate of 18%, the authorities ultimately opted for a reduced rate of 9% to limit the impact of the new tax on stakeholders in the livestock sector.

With feed-related inputs accounting for more than 60% of total production costs in livestock farming, the introduction of VAT is expected to increase pressure across the value chain, from feed manufacturers to breeders and animal product processors.

Beyond the immediate effect on production costs and feed prices, the measure raises questions about its potential impact on the growth ambitions of Côte d’Ivoire’s animal feed industry.

A challenge for feed industry development

Before the VAT announcement, the Ministry of Animal and Fisheries Resources had unveiled, in April 2025, a set of measures aimed at supporting the livestock sector and optimizing feed-related production costs. One of the key measures included a partial exemption from customs duties and taxes, ranging from 7% to 15%, on products used for animal feed.

This tax relief signaled the government’s intention to create a favorable environment for the development of the local feed industry, which relies heavily on imported raw materials such as corn, soybeans, and wheat, while ensuring sufficient supply in both quantity and quality.

At the same time, private sector investment in the value chain has been accelerating to expand production capacity.

Dutch group De Heus announced in September plans to build a new animal feed production facility in Korhogo, in northern Côte d’Ivoire. While details on the exact location, capacity, and investment cost have not yet been disclosed, the project confirms the company’s strategy to strengthen its position in the Ivorian market.

In the same month, Société ivoirienne de productions animales (SIPRA), the country’s leading poultry group, said it had secured a $23.5 million equity investment from Norway’s Norfund. The funding is intended to expand production capacity across SIPRA’s core businesses, including animal feed manufacturing, livestock farming, and animal product processing, while supporting innovation in animal nutrition and operational efficiency.

With the introduction of a 9% VAT on animal feed in 2026, the challenge for Ivorian authorities will be to balance tax revenue mobilization, industrial competitiveness, and input price control, to avoid slowing the sector’s development.

As part of its national strategy to develop poultry production, Côte d’Ivoire aims to nearly double annual chicken meat output to 200,000 tons by 2030, from 114,000 tons in 2024, according to Ipravi, the country’s poultry industry association. This target is expected to drive further growth in demand for animal feed over the period.

Stéphanas Assoclè