The poultry sector in Nigeria is facing an unprecedented crisis, with poultry farmers revealing staggering losses exceeding N3 trillion due to the harsh economic conditions prevailing in 2023.
The impact is not only economic but extends to the nutritional well-being of the population, particularly children.
The Poultry Association of Nigeria (PAN) reveals a staggering loss of over N3 trillion in investments among its members. The resulting closure of approximately 50% of poultry farms nationwide has led to a domino effect on the economy, leaving a trail of job losses, debts, and concerns about the accessibility of poultry products.
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PAN’s Lagos chapter chairman, Mojeed Iyiola, said the gravity of the situation is weighing heavily on the members who are incurring massive economic losses.
“Since the closure of about 50 percent of poultry farms across the country, the sector has lost over N3 trillion,” Iyiola said.
This colossal loss is further broken down, revealing a per-state loss of approximately N6 billion, totaling trillions of naira across the poultry sector’s value chains.
Lanre Bello, a former chairman of PAN in Lagos, noted the multifaceted impact of the poultry farm closures. He said job losses, indebtedness, and the overall economic ramifications are highlighted as severe consequences.
“The economic impacts of the massive closure of poultry farms across the country are numerous. One is the massive loss of jobs in the sector. A lot of people also lost their investments and are now indebted because of their inability to pay back their loans,” he said.
He also draws attention to the nutritional importance of poultry products, particularly eggs, which contribute over 50% of protein requirements in the human diet. Bello expresses concern about potential repercussions on children’s health, stating, “In most of our diets, protein is disappearing, and if we allow it to continue, we will be dealing with a much more dangerous problem.”
The rising cost of poultry products is attributed to the surge in key ingredients for poultry feeds, namely maize and soybeans. Poultry farmers, livestock feed processors, and marketers point to a steep decline in the supply of these crops, attributing it to insecurity and fluctuations in foreign exchange rates.
In most parts of the country, the repercussions of the escalating prices of poultry products are particularly evident. A crate of eggs now sells between N3,500 and N4,200, with concerns raised about the affordability and accessibility of these essential protein sources.
With several poultry farms closed in the last year, farmers have attributed their inability to continue the poultry business to the unbearable cost of production.
Dr. Usman Gwarzo, the Kano State chairman of PAN, who spoke to Daily Trust, sheds light on various factors contributing to the scarcity and price hike. He mentioned the increased cost of maize and soya mills, transportation challenges, and a shortage of capable hatchers for chicks are among the issues faced by poultry farmers.
Gwarzo stressed the urgent need for improved security, increased production through effective engagement with real farmers, and the introduction of credible loans with realistic terms to address the crisis in the poultry sector.
The situation demands immediate attention from both government and stakeholders to prevent further deterioration of the poultry industry, safeguard jobs, and ensure the availability of affordable protein for the population. The impact on Nigeria’s economy cannot be underestimated, making intervention crucial to avert a looming crisis.