11 February 2013

KFC goes to Africa

WSJ | Drew Hinshaw | As KFC Goes to Africa it Lacks Only One Thing: Chickens

Accra, Ghana — To make American fried chicken daily fare in Africa, Ashok Mohinani wants to bring this West African country nearly two dozen KFCs over the next couple of years. First, he needs a chicken farm.

The plastics-mogul-turned-restaurateur opened four KFCs last year, two short of what he planned when he opened his first franchise in 2011. The problem: Ghana's chicken farmers aren't professional enough to satisfy the chain's requirements so Mr. Mohinani has been forced to import chicken.
I was a little confused by poultry farmers not being "professional" enough to satisfy demand. What does that mean? Turns out they don't do the little things like refrigerating butchered meat. Wow.
For starters, chicken feed also is imported, raising costs, because Ghana's cornfields have suffered from foreign competition.
I don't understand how both of these things can be true. If imported corn is more expensive, how can it be hurting domestic corn growers? If imported corn is less expensive it could hurt the corn growers, but not poultry farmers. Are domestic corn growers comparatively better or worse than foreign ones?

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