Rising feed costs have become a major threat to Nigeria’s chicken sector, pushing farmers to the brink of disaster. With the price of chicken feed rising from N25,000 ($16.65) per bag in December 2023 to N27,800 ($ 18.49) per bag, farmers’ financial burden has become unbearable. Despite increased production costs, poultry processors have not modified their buyback pricing to reflect feed cost increases, leaving farmers with little room to boost output prices. This has resulted in razor-thin profit margins that are untenable for many chicken growers.
The crisis in Nigeria’s chicken sector is not unique; it is part of the country’s bigger economic challenges. The elimination of gasoline subsidies in May 2023 worsened inflation and resulted in sharp increases in transportation and food expenses, further exacerbating the situation for farmers. Furthermore, the price of major chicken feed materials like maize and soybeans has risen. These necessary supplies have become more expensive, raising production costs for chicken farmers across the country.
To preserve local poultry industries, the Nigerian government banned poultry imports. While the objective was to boost domestic production, rising feed and other input costs are now jeopardizing the viability of local agricultural enterprises. Farmers, who previously relied on modest profit margins, are suddenly seeing their earnings fall to unsustainable levels. On average, farmers earn N200 per bird. For example, a farmer rearing 1,000 birds can only expect to earn N200,000 after two months of output. This makes it increasingly difficult to cover operating expenses, let alone turn a profit.
As a result, many poultry farmers are reducing their operations due to financial constraints, and there are rising concerns about a poultry shortage in the coming months. Supply chain interruptions, inflation, and climate change are all contributing to rising chicken feed prices. The fact that many of the basic ingredients needed in chicken feed, such as maize and wheat, are imported or sold at high local rates due to currency volatility exacerbates the problem. Some farmers, seeking higher profits, have chosen to export their food rather than sell it domestically, adding to a shortage of supplies on the local market.
The Chairman of the Poultry Association of Nigeria (PAN), Mojeed Iyiola, confirmed that the soaring prices of raw materials have made the production of poultry feed more expensive. PAN has called for government approval to allow direct maize imports, arguing that middlemen inflate costs and further burden farmers. Meanwhile, poultry processors, who handle slaughtering, processing, and distribution, continue to impose price controls that restrict farmers’ ability to charge prices that reflect their rising production costs. Some processors have entered exclusive agreements with feed suppliers, securing feed at subsidized rates and reselling it to farmers at lower prices, which further locks farmers into fixed, often unfavorable, sales agreements.
In the face of these obstacles, many poultry farmers have turned to other sources of income, such as selling discarded feed bags and poultry waste. However, these measures are unlikely to give lasting relief. Farmers are now seeking the government to act by providing subsidies or enforcing price controls to stabilize the industry.
In the face of these obstacles, many poultry farmers have turned to other sources of income, such as selling discarded feed bags and poultry waste. However, these measures are unlikely to give lasting relief. Farmers are now seeking the government to act by providing subsidies or enforcing price controls to stabilize the industry.
Considering nearly half of Nigeria’s poultry producers are already out of business due to rising expenses, immediate action is essential to avoid further collapse. Without action, the Nigerian poultry industry could face substantial setbacks, potentially resulting in a shortage of locally produced poultry products, exacerbating the country’s food security issues. Government support has never been more important in safeguarding farmers’ livelihoods and ensuring the industry’s long-term viability.
