The rising high costs of soybeans and maize, two basic components of Poultry feed, are posing serious hurdles to Nigeria’s poultry industry. Over the past year, the price of soybeans has increased by 68 percent to ₦714,000 per metric tonne while the price of maize has increased by 89.6 percent to ₦910,000 per metric tonne. Low Productivity driven on by Insecurity and Climate Change is responsible for this price increase, which has a notable effect on the industry and Food Security in the country. According to the Poultry Association of Nigeria (PAN), the industry’s value dropped to ₦5.5 trillion from ₦10 trillion in 2022, a 45 percent decline.
Rising prices of feeds pharmaceuticals and vaccinations, as well as fluctuations in foreign exchange rates and the periodic outbreaks of diseases like avian influenza is further straining the industry. Farmers now face an even greater financial constraint as imported feed ingredients also increased due to the lack of foreign exchange. heightened insecurity in vital agricultural regions is affecting farming operations which further lowers maize and other crop production. A drop in the demand for eggs and supply chain disruptions affects the industry growth.
23.29% decline recorded in the first quarter of 2024.
Beyond the economic sphere, the industry’s crisis ramifications could impact the people’s wellbeing. The shortage of poultry products, particularly eggs, jeopardizes the nutritional equilibrium of consumers. Since eggs are a scarce resource of protein and other important elements, there may be nutritional gaps in the diets of many Nigerians. Malnutrition may worsen as a result of this circumstance endangering Nigerians’ consumption of protein, particularly among the marginal populations. Data released by the National Bureau of Statistics (NBS) revealed that the industry declined by 23.29% in the first quarter of 2024.
Currently, a kilogramme of frozen chicken currently costs ₦5,000, and a crate of eggs is selling for ₦5,500. Experts pointed out that many poultry businesses are closing down operations due to inflation, continuing hikes in prices for feed and products, and other operational difficulties. Significant employment losses and business closures have occurred in the industry, which was a major contributor in the agricultural economy. PAN disclosed that more than thirty percent of the nation’s poultry businesses closed in the first half of the year.
Poultry Association called for feed subsidizing.
Majority blamed their closure on multiple challenges, particularly the extraordinarily high operating costs. A few months ago, the Poultry Association’s Ikorodu chapter in Lagos State urged the federal government to consider subsidizing Poultry Feed in order to bring down costs for Nigerian consumers. It emphasized that doing so would contribute to increasing the affordability of protein alternatives for the populace, highlighting the crucial nature of guaranteeing Food Security in Nigeria and the need for wide-ranging approaches.
Other issues bedeviling the industry are insufficient government support, climate change, increasing production and transportation costs, insecurity, and present inflationary pressure. Although the lack of necessary raw materials for the production of chickens standout as the key challenge, which has a detrimental effect on supply and jeopardizes the future growth of the industry. Nevertheless, there is still a lot of opportunity for expansion, as the demand for poultry products is expected to rise in the coming years due to population growth. Revamping and expanding of the industry depend heavily on initiatives to enhance industry Infrastructure and increase local production.
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It is anticipated that Nigeria will produce over 269,000 metric tonnes of chicken by 2028, up from about 256,000 metric tonnes in 2023. This indicates a 0.7% yearly growth rate. Experts stress the need for holistic approaches, which include encouraging domestic production of feed components, putting strong Biosecurity controls in place, and increasing government support for the industry through policy interventions and subsidies. Building a robust supply chain in the industry can potentially aid in promoting food security, save about 25 million jobs, as well as grow local and regional economies in Nigeria and across Africa.