Big US-funded chicken project shuts down in Lesotho

A $31.4 million (about R562-million) United States Department of Agriculture (USDA) project aimed at transforming Lesotho’s poultry sector has been terminated.

The five-year initiative, launched under the American Food for Progress programme, planned to grow 28,000 poultry enterprises in Lesotho, boosting meat production by 40% and egg production by 30% by 2028.

Dubbed the Sustainable Transformation of Enterprises in the Poultry Sector (STEPS), the project was also designed to reduce Lesotho’s heavy dependence on imported poultry products by empowering local farmers through access to quality inputs, financial training, and market linkages. The broader aim was to improve food security and increase incomes along the value chain.

Announcing the project, the USDA said in 2021 that Lesotho had imported poultry products worth $39-million, with more than 80% of poultry meat sourced from neighbouring countries. The country also imports inputs such as fertile eggs, day-old chicks, livestock feed, services, and veterinary products.

In an October 2023 statement, the US Embassy in Maseru said Land O’Lakes Venture37, an American company, had been selected to implement the programme in Lesotho. It partnered with the International Research Institute, the World Poultry Foundation, and the locally based Rural Self-Help Development Association.

But less than two years after its launch, the STEPS project has been terminated.

Reuters reported earlier this month that the USDA had notified grantees on 14 May 2025 that their Food for Progress awards had been ended. Speaking to GroundUp, Rural Self-Help Managing Director ‘Mampho Thulo confirmed the news, saying her organisation had been notified of the decision by its partner Land O’Lakes last week.

Land O’Lakes technical advisor Tsoteli Kuleile told GroundUp that the company had been told to suspend the project and to refer all communication to the company’s country director, Fidel O’ Donovan. However, O’ Donovan has not responded to questions sent to him by GroundUp.

'WE DIDN'T SEE IT COMING'

Thulo said their association had been worried after the US withdrew funding from other initiatives, such as USAID and PEPFAR projects, and the recent R6-billion Millennium Challenge Account. However, she had believed agricultural projects would be spared.

“We still had our fears, but we were over 90% confident that it would not be terminated… We thought they would be careful not to cut agriculture grants, especially those that transform agricultural products,” Thulo said.

She said the STEPS project was still in its early stages. A training curriculum for farmers was being finalised and tenders were being prepared for construction projects.

According to Thulo, Rural Self-Help was responsible for a $1.2-million budget under the STEPS project.

The sudden halt has left thousands of poultry farmers in limbo. While Land O’Lakes focused on national-level commercial farming, Rural Self-Help was actively engaged with grassroots farmers across seven districts, according to Thulo.

The targeted districts were Botha Bothe, Leribe, Berea, Maseru, Mafeteng, Mohale’s Hoek, and Quthing, with Rural Self-Help focusing on broiler and egg layer production.

In those districts, Thulo said the organisation was working with farmers ranging from those raising chickens for subsistence to farmers keeping 500 chickens. “The plan was to support 23,000 to 28,000 businesses by 2028,” she added.

Thulo said she had to break the news to beneficiaries. “This beautiful project, meant to transform your poultry enterprises, is no more. We are shocked, and the farmers are shocked too.”

The association plans to meet with farmer representatives this week to chart a path forward.

Thulo said more than 10 staff members had been sent home.

Limpho Salai, chairperson of the Basotho Poultry Farmers Association, whose members were primary beneficiaries of the project, told GroundUp that Land O’Lakes technical advisor Kuleile had instructed him not to speak to the media and to refer all inquiries to him.

GroundUp asked for comment from the US Embassy in Maseru but no response had been received by the time of publication. Previously, the Embassy has referred similar inquiries to the US foreign affairs administration in Washington.