Rising feed costs push Nigeria’s poultry farmers to the brink

NIGERIA – Soaring chicken feed prices in Nigeria are driving poultry farmers toward financial distress, with many struggling to sustain their operations.

The cost of a bag of chicken feed has jumped from US$16.65 in December 2023 to US$18.49, significantly increasing production expenses.

Despite rising costs, poultry processors have not adjusted their buyback prices, leaving farmers unable to raise their selling prices and forcing them to operate on unsustainable profit margins.

The poultry crisis is part of broader economic challenges in Nigeria, where inflation and high transport costs, worsened by the removal of fuel subsidies in May 2023, continue to strain businesses.

Essential chicken feed ingredients such as maize and soybeans have become more expensive, adding further pressure on farmers already dealing with supply shortages and price fluctuations.

The government’s poultry import ban, aimed at protecting local producers, has not provided relief as the high cost of feed and other inputs threatens the survival of many farmers.

Currently, farmers earn approximately US$0.13 per bird, meaning a farmer raising 1,000 birds can only expect about US$130 in profit after two months, barely covering operational expenses.

With little financial relief, many poultry farmers are scaling down their businesses, raising concerns about a potential chicken shortage in the coming months.

Currency instability has made it difficult to import maize and wheat, which are key components of poultry feed, while some farmers are opting to export their produce for better returns instead of selling locally.

Farmers call for government intervention

Chairman of the Poultry Association of Nigeria (PAN), Mojeed Iyiola, says the rising cost of raw materials is making poultry feed unaffordable for many farmers.

PAN is advocating for direct maize imports, arguing that intermediaries are inflating costs and worsening the financial strain on farmers.

Poultry processors, who control slaughtering and distribution, continue to enforce price restrictions, preventing farmers from adjusting their prices to match rising production costs.

Some processors have exclusive agreements with feed suppliers, allowing them to buy feed at reduced rates while reselling to farmers at lower prices, limiting farmers’ ability to negotiate better deals.

With few options, some farmers are trying to supplement their income by selling poultry waste and empty feed bags, but these measures provide minimal financial relief.

Farmers are calling for government intervention, including subsidies or pricing regulations, to stabilize the poultry sector and prevent further industry decline.

Niger State invests in poultry farming

Meanwhile, Niger State Governor Mohammed Umaru-Bago has announced a US$2 million poultry farm project in Bosso Local Government Area, part of the federal livestock development program.

Deputy Governor Yakubu Garba has urged residents to support the initiative, while local leaders emphasize that Bosso LGA is designated as a Special Agro-Industrial Processing Zone to create jobs.

Additionally, businessman Mr. Kure has pledged US$1.3 million to supply fertilizers and essential farming inputs to support local farmers.

Nigeria consumes approximately 1.5 million metric tons of meat annually, averaging 7.3 kilograms per person, a figure below the global average.

Data from 2021 shows the country’s poultry meat consumption was around 1.13 kilograms per person, reflecting a 2.59% decline from the previous year.

Annual poultry consumption in Nigeria stands at about 400,000 metric tons, with a slight downward trend observed since 2017.

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