Côte d’Ivoire applies 9% VAT on animal feed, raising cost concerns for livestock and poultry value chain
Until 2025, animal and poultry feed and production inputs were exempt from VAT.
CÔTE D’IVOIRE – Côte d’Ivoire has introduced a 9% value-added tax (VAT) on animal feed, production inputs and related packaging, placing the measure at the center of its fiscal and agricultural policy at the start of the year.
The decision directly affects a sector that is critical to food and nutritional security, as livestock farming and fishing supply a large share of the animal protein consumed in the country.
According to a press release from the Directorate General of Taxes (DGI), the 9% VAT came into effect on Saturday, January 17, under the tax reform provisions of the 2026 Finance Law.
Until the end of 2025, animal and poultry feed, as well as inputs used in their manufacture, were exempt from VAT. The tax annex to the new finance law removed these exemptions, bringing the products into the VAT framework.
Although the initial draft of the reform provided for application of the standard 18% VAT rate, the authorities opted for a reduced rate of 9% to limit the impact on operators across the sector.
Even so, the measure is expected to increase pressure along the livestock value chain.
Input costs already account for more than 60% of total expenditure in livestock farming, meaning any additional tax burden is likely to affect feed manufacturers first before being passed on to farmers, processors and, eventually, consumers.
Beyond the immediate impact on production costs and selling prices, the new VAT raises questions about its effect on the growth trajectory of the local animal feed industry.
The timing is particularly sensitive given recent policy initiatives aimed at reducing feed-related costs and encouraging domestic production.
In April 2025, the Ministry of Animal and Fisheries Resources announced partial exemptions from customs duties and taxes ranging from 7% to 15% on products intended for animal feed.
These measures were designed to support the sector by lowering the cost of imported raw materials such as corn, soybeans and wheat, which form the basis of industrial feed production in Côte d’Ivoire.
At the same time, private investment has been expanding. Dutch animal nutrition group De Heus announced in September plans to build a new animal feed production unit in Korhogo, in northern Côte d’Ivoire, confirming its intention to strengthen its presence in the local market.
While details on production capacity and investment costs have not yet been disclosed, the project reflects expectations of sustained demand growth.
In the same month, the Ivorian Society for Animal Production (SIPRA), the country’s leading poultry company, secured a US$23.5 million investment from Norwegian fund Norfund.
The financing targets capacity expansion in animal feed manufacturing, livestock farming and processing, alongside innovation in animal nutrition and operational efficiency.
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