NIGERIA – The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria is scrutinising the activities of cartel-like groups that have been inflating poultry prices to maintain an artificially high market rate.
Following extensive investigations, the FCCPC reported that dominant players in the poultry sector are implementing restrictive trade tactics to limit supply, consequently raising the cost of essential poultry products, including eggs and chicken.
This practice, the commission noted, not only limits consumer access to affordable poultry options but also disrupts the profits of poultry farmers, who are often forced to operate under the unfair pressure imposed by these influential groups.
The FCCPC has highlighted that this price manipulation occurs at multiple points within the poultry supply chain, ranging from the procurement of feed and other key inputs to the distribution channels that deliver products to consumers.
Investigations revealed that major players with significant control over the market are deliberately regulating the supply of poultry goods, ultimately influencing prices across the industry.
This situation is impacting Nigeria’s economy, as poultry represents a crucial protein source for many households.
A major factor in these price manipulations is the rising cost of poultry feed, which constitutes a significant portion of overall production expenses.
Large feed manufacturers—some of whom are linked to the groups under investigation—have reportedly been limiting feed supplies or altering prices to force smaller poultry producers into raising their own prices or, in some cases, leaving the market altogether.
Nigeria’s poultry industry has its ups and downs, but it remains a vital part of the country’s food supply.
With around 180 million birds, the industry produces an estimated 300,000 tons of poultry meat and 650,000 tons of eggs each year.
Of this poultry population, 80 million birds are raised in open, extensive systems, 60 million in semi-intensive setups, and 40 million in intensive farming conditions.
The industry is heavily concentrated in Nigeria’s southern region, which accounts for 57% of total production.
Despite these figures, domestic production meets only about 30% of the country’s total demand for poultry, underscoring the gap in supply that enables market manipulation.
Per capita, Nigerians consume roughly 3.5 kilograms of eggs and 2.5 kilograms of poultry meat annually, highlighting the demand that cartels continue to exploit by constraining supplies and inflating prices.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
