The exorbitant prices of maize and soybeans, the main ingredients in poultry feed, have put Nigeria’s poultry industry in peril and are about to collapse. The ideal confluence of factors has driven their prices to all-time highs. Crop productivity has been negatively impacted by insecurity, leading to lower harvests in rural areas. Concurrently, crop yields have suffered from unpredictable weather patterns brought on by climate change. Because of the price increases brought on by this shortage of supply, it has become harder for chicken farmers to break even.
The consequences of this crisis are far-reaching. With feed costs accounting for a significant portion of production expenses, farmers are grappling with razor-thin profit margins. Many have been forced to downsize their operations or shut down entirely, leading to massive job losses across the value chain. The Poultry Association of Nigeria (PAN) estimates that the industry has shed a staggering 25 million jobs in just four years.
Beyond the employment crisis, the soaring cost of poultry products is a major concern. As farmers pass on increased costs to consumers, the price of eggs and chicken has skyrocketed, making these essential protein sources less accessible to the average Nigerian. This situation is particularly alarming given the country’s already high poverty rate.
To compound the challenges, the poultry industry is also contending with other headwinds, including foreign exchange scarcity, which hampers the importation of essential inputs, and the threat of avian influenza. These factors have collectively eroded the industry’s resilience, making it increasingly vulnerable to shocks.
The Nigerian government is under immense pressure to address this crisis. While efforts to boost maize production and facilitate imports have been initiated, they have yet to yield tangible results. To save the poultry industry, a comprehensive approach is required, encompassing improved security in farming areas, investment in climate-resilient agriculture, and support for poultry farmers through subsidies or credit facilities. Without urgent intervention, the ripple effects of this crisis could be devastating for the Nigerian economy and food security.
