Nigeria poultry feed prices increase 168%. When will it stop?
Average poultry feed prices in Nigeria have increased by at least 168% over the past three years. This highlights the scale of recent food inflation in Nigeria.
According to the Center for Journalism market research, an average of 25 kilograms of poultry feed, made mainly from corn, soybeans, wheat and sorghum, increased from N3,600 in 2019 to N8,000 in July 2022. Increased from 500 to N10,000. and Innovation Development (CJID).
As families pay more for chicken and eggs, the cost is felt at home on a daily basis. The broiler price in 2018 was between N5500 and N7000 compared to N1500 and N2500, and the egg box he went from N800 to N1800.
20.6% Food inflation year on year
Nigerian food prices rose 20.6% year-on-year in June, the fastest pace in the past 11 months, according to the National Statistics Office. Headline inflation reached 18.60%, the highest in five years.
Prices of goods and services in Nigeria are increasing due to several factors. Inflation worsened after the government closed borders in 2019 to discourage smuggling and boost rice and other vital food production.
However, weak domestic production slowed supply in the face of huge demand, pushing prices higher. Pandemic lockdowns, foreign exchange shortages, unrest, high fuel prices and, most recently, Russia’s war in Ukraine have complicated matters.
Related story: South Africa stops anti dumping duty on poultry imports
Nigeria’s poultry industry is worth $4.2bn
Nigeria’s poultry industry, worth US$4.2 billion, is an important source of protein for more than 200 million people, according to the United Nations Food and Agriculture Organization. But the sector, which accounts for 9-10% of GDP, has struggled over the past three years, with many operators forced out of business due to high costs.
Related Story: Saudi’s poultry plan to be self sufficient by 2025
High feed costs
Farmers are complaining about high feed costs and traders are complaining about rising raw material costs. “Since I started his company in 2019, poultry feed has tripled, especially as safety issues have prevented farmers from producing corn, the main ingredient in poultry feed.” said Abuja poultry farmer Juliet Ebere.
Farmers said they need about 1 kilogram of starter feed to feed a broiler from her first week to her third week. Broilers need about 3kg of starter feed for another 3 weeks and broilers need 2.5kg of finisher feed between weeks 7 and 8. This gives him 100 broilers a total of 650kg or 26 bags of feed – 247,000N. 4 years ago he was 93,600N. Abuja poultry feed salesman Ephraim Christopher said his 25kg feed costs between N8500, N9500 and N10,000 depending on the brand. This situation had a big impact on me. Many farmers are forced out of business due to high feed costs. Previously he was selling over 100 bags of feed a day, now he’s struggling to sell 30 bags a day,” says Christopher.
Related story: EU chicken and beef prices hold while pork falls
Not enough local supply
Mr. Christopher said that Nigeria is not producing enough, so suppliers attributed the price hikes to high raw material costs, transportation and uncertainty keeping farmers out of the fields, as well as a lack of corn production. He blamed the lack of dollars needed for imports.
Uyo poultry farmer Annie Udo said the situation did not encourage her to continue her business, even after the poultry farm was scaled back. Very disappointed with the price increase. We used to buy 3600 feed per 25kg bag, now it’s over N9000 depending on the brand.
Initially, I had about 500 birds on my farm, but now he has reduced to 200 due to high feed prices. After the holidays are over, we might manage it seasonally,” Udo says.
Related story: Turkey to open port for “war” grain from Ukraine
Nigeria continues to suffer grain shortages and relies on imports of corn and wheat to meet local needs. The ongoing Russian and Ukrainian crises are exacerbating the situation as these two countries are the world’s largest suppliers of wheat and other grains.
According to the United States Department of Agriculture (USDA), corn production in Nigeria has increased from 12.4 million tons in 2020 to 12.7 million tons in 2021. However, the country still lags behind as it imported 500,000 tonnes of maize in two years.
Governance and development analyst Sam Amadi said the situation would have a major impact on the country’s economy. “A severe food crisis is developing in Nigeria and the political class is not paying attention. , hunger on both sides and so on, ”he said.
Follow us on LinkedIn, Twitter & Facebook.
Source: Premium Times