How Operational Cost Is Driving Collapse Of Nigeria’s Poultry Industry

Nigeria’s poultry industry is recognised as the most commercialised component of the livestock subsector, contributing significantly to the overall agricultural GDP.
Despite the government waivers for maize importation, the production cost for chicken feed remains high, pushing the poultry industry further into collapse.
Maize is one of the primary ingredients used in the production of feed for the birds.
Recently, the Poultry Association of Nigeria (PAN) raised the alarm, lamenting that the high cost of maize was pursuing farmers to close down their farms due to inability to feed their birds and sustain businesses.
PAN director-general, Onallo Akpa warned Nigeria of losing over 25 million jobs including billions of naira in the value chain if the industry collapses.
Its gathered that the federal government has granted the importation of about 100,000 metric tonnes of maize from Argentina to support the poultry industry but farmers said the cost of feed and poultry drugs remains the biggest challenge facing the sector despite the intervention.
The United Nations database shows that in 2023, Nigeria imported maize worth $631.11 thousand from Argentina.
However, poultry farmers criticised the current importation system, alleging that only a few individuals are granted licenses with the importers prioritising their own profits.
Due to pressure of feed cost, the farmers have asked the federal government to grant them a direct license to import maize to ease the rising production costs faced by its members.
The chairman, Poultry Association of Nigeria(PAN), Lagos chapter, Mojeed Iyiola in a report noted that, “The licenses for maize importation are given to a select few, who import for selfish gains. Even when they sell to poultry farmers and feed processors, they offer the same prices as the open market.”
Meanwhile, the president of All Farmers Association of Nigeria (AFAN ) Kabir Ibrahim confirmed that the sector was assisted with the importation of about about 100,000 metric tonnes to ease the scarcity of maize in the market.
Additionally maize was among the grains the federal government recently granted zero tax waiver on importation.
In contrast, despite such interventions, there has been a noticeable increase in the prices of chicken and chicken products over the past two years.
Market price indicates that a crate of egg is being sold between N5, 00and N6, 000 while a piece of egg goes between N150 to N200 depending on the size.
Similarly, chicken feed prices have surged beyond expectations with prices ranging between N19, 000 to N25, 000 per 25kg. While the price of Growers Mash (Hybrid Brand) has increased from N5,000 to N8, 000.
Speaking on the current challenges affecting the sector, AFAN president, Kabir Ibrahim highlighted the cost of feed production and poultry drugs as well as sales and the biggest.
Ibrahim called for sustainable subsidy on feed and drugs as well as the reactivation of school feeding programmes to drive the sector.
He said, “The biggest challenge around poultry production is the cost of feed and poultry drugs as well as sales, there is a support window around importation of maize to impact feed costs.”
On sustainability of the sector, Ibrahim said, “Sustainable subsidy on feed and drugs as well as the reactivation of school feeding programs sprouting from the need for children and milking mothers to eat atleast an egg aday as a right to nutritionally balanced meals leveraging on the “right to food Act.”
A poultry farmer, Jeremiah Emmanuel lamented lack of meaningful programme benefiting the poultry industry at the moment.
Citing his example, Emmanuel expressed disappointment with the Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) of the previous administration, calling it a ‘sham.’
According to Kucha, many poultry farmers are shutting down operations due to soaring costs and a range of other factors, including diseases, inflation, and dwindling consumer demand.
He believes that controlling the cost of raw materials like maize, soybeans, and groundnuts, and making these more accessible to feed manufacturers, could help lower feed prices and sustain the industry.
He suggested that improving the exchange rate, strengthening the naira, and addressing the high cost of fuel would significantly reduce operational expenses for farmers.
He said, “It is true that so many poultry owners are shutting down their businesses due to high costs in running the business and losses caused by the above mentioned factor and other factors like diseases, low patronage due to inflation and high cost of living etc.
If government can control the cost in producing few raw materials like maize, soya beans, groundnut etc; make its access to manufacturers of poultry feeds at lower rates, this will in turn lower the cost in poultry feeds drastically and sustained the sector.”