According to the Poultry Association of Nigeria (PAN), over the last half year, a significant number of poultry farms in the country have shut down, with more than 30 percent attributing their closure to various challenges within the sector. In an interview on July 2, 2024, in Lagos, Mr. Godwin Egbebe, the National Publicity Secretary of PAN, revealed this information. He believed that the reason for the closures was due to the extremely high expenses of running the business.
This high expense has resulted in increased costs for eggs all across the country. During the first six months of the year, approximately 30 percent of poultry farmers across the country have been forced to close down their farms as a result of the challenges they have encountered in the industry. It is also crucial for the government of Nigeria to understand the extent of the challenges that poultry farmers are currently dealing with.
Farmers exit the sector due to the financial burden of running farms.
They are not seeing a reduction in sector issues despite the distribution of palliatives. Their focus is on finding long-lasting solutions to address the challenges faced in the sector. Often, the aid intended for farmers ends up in the hands of the wrong people, rather than reaching those who truly need it. The majority of farmers are exiting the industry due to the financial burden of running their farms, which they are unable to maintain.
He mentioned that there were those who had traded their cages for freedom and others who had exchanged their farms for a new beginning. Furthermore, Egbebe pointed out that the increasing expense of feed in the country is a major obstacle that the industry is currently dealing with. His statement highlighted how the rising costs of feed has created significant challenges for poultry farms, causing operational Sustainability to become a struggle for many in the industry.
Rise in price is negatively impacting the industry.
Also, the continuous rise in the cost of poultry products can be attributed to the frequent increases in the price of feed, which seems to happen every two weeks. A couple of weeks ago, they purchased 25 kilograms of feed for ₦14,300. However, over the weekend, the price has increased to ₦14,800. At the beginning of the year, they purchased a bag for ₦12,000, a bag which was sold for ₦9,000 the previous year. The rise in costs is negatively impacting the industry.
Furthermore, he mentioned that transportation poses a significant challenge in the industry and is a contributing factor to elevated costs associated with poultry produce. In an earlier report, it was stated that there was a significant 25 percent rise in egg prices over the past few months. The rise in prices of feed is being linked by farmers and traders to a lack of supply due to the closure of numerous poultry farms in the country.
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Additionally, the cost of maize and soybean, which are essential ingredients in Poultry Feed production, has seen a notable increase contributing to the higher prices. The rise in egg prices is just one example of the overall increase in prices seen across various food items, indicating a widespread trend. Between April and May 2024, there has been a significant price surge in beans, with a staggering 70% increase on a monthly basis. Additionally, staple foods all over the country have experienced a doubling in prices, reaching a 100% increase.