Poultry farms nationwide are facing the worst crisis ever. The progress recorded by the poultry industry in about two decades, which ensured that its contribution to the Gross Domestic Product, GDP, rose to over 25 per cent and also made Nigeria a leading contributor to egg and meat productions in Africa is fast being eroded.
Besides, the poultry sector’s strides include the provision of direct and indirect employment to more than 20 million Nigerians. The jobs are gradually being lost as small and medium scale poultry farms are selling off their birds and facilities and shutting down, owing to unfavourable operating conditions.
The Poultry Association of Nigeria (PAN), has been shouting itself hoarse since the crisis started but the sector remains at risk and on the verge of total collapse.
The poultry industry crisis began early last year when the Federal Government, through the Central Bank of Nigeria, placed a ban on the importation of maize and soybeans. Both grains constitute about 75 per cent of ingredients for livestock feed production.
The government hinged the ban on the notion that Nigeria can produce enough quantity of maize and soybeans, not just for local consumption but for export.
It is believed that the ban would boost local production of maize and soybeans as well as deepen the government’s drive to encourage more Nigerians to invest in agriculture.
The ban was also intended to eliminate the drain the importation of the grains place on foreign exchange.
President Muhammadu Buhari restated the ban on maize and soybean importation at the beginning of 2021, stressing that the CBN must not make forex available for importers of the grain.
President Muhammadu Buhari restated the ban on maize and soybean importation at the beginning of 2021, stressing that the CBN must not make forex available for importers of the grain.
With the ban on grains importation, the maize price per ton rose from about N85,000 to between N130,000 and N150,000 currently. Soybeans price also skyrocketed.
The increase in the prices of both grains forced feed millers to jack up feed prices with grower mash feed, which sold for about N2,600 in early 2020 now selling for between N5,100 and N5,850.
The situation was compounded by the COVID-19, the lockdown and restriction of movement, which affected feed production, egg distribution, delivery of day-old chicks and other poultry inputs such as drugs and vaccines.
The crisis in the industry is also impacted negatively by the exportation of maize and soybeans by those desirous of earning foreign currency. The exportation, if it remains unchecked, would make recovery by the industry a pipe-dream.
The insecurity in the northern parts of the country where the largest quantity of grains is being farmed has also compounded the problem.
The insecurity in the northern parts of the country where the largest quantity of grains is being farmed has also compounded the problem.
The Federal Government, in its effort to mitigate the adverse effects on the industry, gave four companies waivers in September last year to import maize to meet the shortfall.
The government has also released grains from the national reserves to major feed millers and leading farms but these and other palliative measures have yet to yield a positive impact.
We urge the Federal Government to take the crisis in the poultry industry more seriously to save more farms from shutting down and workers losing their jobs.
With the increasing price of poultry feed, farmers have been increasing the prices of chickens and eggs to the extent that consumers can hardly bear, and the demand reduction will lead to losses and forced closure of farms.
With the increasing price of poultry feed, farmers have been increasing the prices of chickens and eggs to the extent that consumers can hardly bear, and the demand reduction will lead to losses and forced closure of farms.
The appeal for urgent intervention in the industry has become more critical as the glut season in which more eggs flood the markets is here.
When the poultry farmers and their fish and piggery counterparts whose feed components are also mainly maize and soybeans and are also feeling the negative impact lose their businesses, how will the grain farmers sell their grains?
We appeal to the Federal Government to weigh the consequence of leaving more and more poultry farms to shut down against the ban and allow for the immediate importation of maize and soybeans as a stop-gap measure to mitigate the looming collapse of the industry.
The government should also step up its fight against insurgents and bandits to enable farmers to have unfettered access to grow and harvest their produce.
We also urge the government to encourage increased commercial production of maize and soybeans by supporting farmers with agricultural technology and best practices.
