To help its members with production costs, the Lagos State chapter of the Poultry Association of Nigeria (PAN) is applying for a license to import maize. The production expenses have increased dramatically since the start of the year, which is why the association is requesting a direct import license, according to Mr. Mojeed Iyiola, the head of the PAN Lagos State chapter. He bemoaned the existing state of affairs, in which import licenses for maize are restricted to a small group of people who put their own interests before helping chicken producers and driving up the price of vital Poultry feed.
Iyiola contended that PAN’s Manufacturing expenses would be reduced if they could import maize directly and offer it to their members at a lesser cost. He emphasized that the state of the market has caused the price of chicken feed to increase, with prices going up every few days, driving up the cost of poultry goods like eggs. Grower feed, for instance, used to cost N3,500 for a 25kg bag at the beginning of the year, but now it almost costs N13,000 each bag.
Importation policy may inhibit local maize production.
In response to questions about the rising cost of eggs, Iyiola stated that the current cost of feed makes any reduction in price unfeasible. Increasing feed prices have a direct impact on the cost of eggs, making them more expensive, particularly for the impoverished, as he clarified that the cycle of egg production is fixed. The current state of affairs is framed by a federal policy implemented recently to combat food inflation. This policy permits a 150-day duty-free import window for wheat, husked brown rice, and maize. Some people have praised the strategy, while others have expressed concerns that it would reduce local agricultural output. These responses to the policy have been conflicting.
Nigeria uses maize extensively, not just for human consumption but also for animal feed, including that used for poultry. There are concerns that the importation policy may inhibit local maize production even though its goal is to temporarily alleviate the high prices. Farmers worry that lower-priced imported maize may undercut domestically grown varieties, hurting the agricultural industry in the long run and reducing profitability for domestic growers. In their comments, agricultural economists emphasized the necessity for a careful balance between bolstering regional output and resolving the current food crisis.
Gov’t officials contend that the importation window is essential.
Imports can help temporarily, but relying too much on them could harm local agriculture, stressed Dr. Akinwumi Adesina, President of the African Development Bank and a former Minister of Agriculture in Nigeria. He added, “Nigeria must prioritize boosting local production through improved access to inputs, infrastructure, and market linkages to ensure long-term Food Security and self-sufficiency.” To stabilize prices in the face of rising food inflation, which is reducing household purchasing power, government officials contend that the importation window is essential.
Nigerian maize prices have historically been erratic, frequently rising during planting and harvest seasons as a result of supply chain interruptions. Rising demand from the cattle industry and pressures from the global market caused maize prices, which had been over N140,000 per metric ton at the beginning of 2023, to soar to over N220,000 by the middle of the year. The effect on chicken feed has been striking; in only a single year, feed costs almost tripled.
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A 25 kilogram bag of grower feed, for example, Retail for about N3,500 in January 2023, but by mid-2024, it was selling for N13,000. Many chicken producers are small-scale businesses that are finding it difficult to stay profitable in the face of these growing expenses, and this price hike has put them under pressure. Growing government assistance for domestic maize production is one substitute for the importation policy. Input Subsidies for fertilizer and seeds, Irrigation system improvement to lessen reliance on rain-fed agriculture, and storage facility development to reduce post-harvest losses are a few examples of how this might be done.