In Europe, chicken breast is primarily consumed while other parts, such as legs and wings, along with spent laying hens, are exported—often to African countries like Benin. Benin is among Africa’s largest importers of frozen chicken, much of which is informally re-exported to Nigeria due to trade restrictions there. These exports help the European poultry industry maximize value but pose challenges to local producers in Benin. This study examines the impact of European chicken imports on Benin’s fragmented, low-productivity poultry sector and investigates whether imports substitute or complement local production. It explores farming systems, consumption preferences, policy frameworks, and value chains through literature reviews, surveys (421 consumer and 117 farmer responses), 38 qualitative interviews, and a stakeholder workshop. Findings show that while consumers favor local chicken for quality, imported meat dominates due to price, availability, and convenience—especially among younger, low-income, urban consumers. Competition exists primarily between modern and imported chicken, suggesting substitution. Traditional systems face high transaction costs, while modern systems are constrained by costly inputs. Policy, trade, and institutional frameworks complicate sector development, but stakeholders are motivated to professionalize. Recommendations include organizing farmer associations, improving processing and marketing, supporting input affordability, and adopting protective trade policies. International development partners are urged to align practices with sustainability goals. While imports compete with local products, especially modern chicken, strategic interventions can strengthen Benin’s poultry sector and enhance food sovereignty.