High cost of chicks, feeds pushes broilers off Kano market

From Aminu Adamu Naganye, Kano As Nigeria’s economy grapples with the challenge of inflation, which is reported to be the highest in 17 years, at 20.77 per cent, the effect is being felt in every facet of the economy, which is manifesting in businesses and personal lives.  Poultry farmers in Kano said the instability ravaging […]

From Aminu Adamu Naganye, Kano

As Nigeria’s economy grapples with the challenge of inflation, which is reported to be the highest in 17 years, at 20.77 per cent, the effect is being felt in every facet of the economy, which is manifesting in businesses and personal lives. 

Poultry farmers in Kano said the instability ravaging the industry in the state had already forced many farms to shut down, amidst struggling to supply the commercial state with protein. 

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Although there are no reliable statistics on the number of people that are in the chain of poultry farming in Kano, there are thousands of people whose sources of living are tied to the industry. From chick, feed, and drug supply to on-the-farm workers, vets, egg and chicken distributors, numerous people earn a living in the process.  

The acute scarcity of broiler chickens in Kano is not only threatening this source of protein to residents of the ancient city but also shaking the foundation of the poultry industry. 

“Many poultry farmers are at crossroads thinking of alternative means of survival because the entire industry is facing a serious existential threat,” a Kano-based farmer, Bala Idris said.

The poultry farmers told Daily Trust on Sunday that prices of chicks and feeds go up annually at ember months, but this year’s case is totally different as the prices have hit rooftop, a situation that has never been seen in the past.  

Stakeholders narrated their excruciating business experiences. 

Yakubu Ibrahim, whose Albarka Poultry Farm now operates at a reduced capacity, said poultry business had never witnessed this kind of challenge in Kano. He noted that there were many issues associated with the current high cost of chicks and feeds in the state, which is forcing many farmers out of the business. 

 

“There is acute scarcity of chicks in the North because we don’t have enough hatchers here. All these chicks you see here are transported from the South. However, there are one or two companies that hatch here. 

“Broilers are the most affected because their price has skyrocketed to such a level that we have never seen before. This is largely due to the ember months and people in the south keeping the birds for Christmas. They keep the birds for long, up to three-four months so that they would grow bigger around the Christmas period. So, currently, there is high demand over there, which automatically affects supply to the North. 

“Day-old chicks now cost N800 and above in some companies. We have never witnessed this. Two-week-old cannot be purchased now because each will cost over N1,000 to raise, so nobody would agree to buy it at N2,000. Everything has gone up and we are no longer enjoying the business. People are actually leaving the business till probably when the prices stabilise.

“Poultry farmers are suffering because of the high cost of feed and almost everything needed in the industry. Some people have already shut down their farms and workers have been laid off, while others are struggling with reduced capacity. Some are now relying on layers because the egg market is bouncing back, unlike in the last few months. But broilers business now is very difficult and at its lowest ebb,” Ibrahim said.

For Mansur Shehu Kiru, whose Rahama Agro Business Centre’s 2,000 capacity has been reduced to 400 birds, the cost of transportation (from Ibadan to Kano), as well as drugs, are the major issues that added to the usual end-of-the-year demands, which made this year’s situation peculiar.

“A broiler chick was N500 on the average last year around this period, but today, it is between N800 and N850,” he said.

He also lamented that the broiler starter feed used to be N3,500 in the past but now costs between N8,000 and N9,000.

“This has drastically affected the number of birds we keep. For instance, I used to keep between 1,000 and 2,000 birds, but now, it is with much struggling that I keep between 300 and 400.”

He called for government’s intervention in form of soft loans to the farmers to be able to survive the current challenge and keep their employees engaged.

Abdullahi Musa said the business now gave them sleepless nights.

Another farmer, Zaharaddin Yakasai, who owns Yaks Poultry Farm in Kano, attributed this year’s peculiar challenges to many factors that are largely out of their control and influence.

He said, “Feed is generally now expensive due to the country’s economy. Suppliers would rightly say they import some of the ingredients with dollars. At least 50 per cent of the ingredients are shipped into the country. That will naturally make feed expensive. Then, our weather (here in the Kano) also contributes to our problem. Heavy downpour this season has affected my chickens; I lost some.”

He further said it had become very difficult to run a profitable business at the moment.

“If you calculate your expenses you would see that you are just doing business for them and to feed producers. So, because of these people are leaving the business. Others are in the business but they reduced their capacity,” he said.

Yakasai said there was the need for government at all levels to support the industry because of its significance as a source of cheap protein, adding that it provides millions of direct and indirect employments in the state.

He lamented that despite the current challenges of running the business, local governments and state revenue collectors still ask for revenues of N100,000 to N300,000.”

Feed suppliers also lament

Like poultry farmers, feed suppliers are also going through tough times in their business due to mass exodus and reduced capacity of farmers.

Abdurrahman Suleiman Tarauni, a dealer in various kinds of feeds in Kano, told Daily Trust on Sunday that the business is no longer booming.

“We sell feeds now between N8,000 and N9,000 but people, hardly patronise us although the price did not increase significantly. Those we sold at N8,000 is now N7700, while a bag that currently costs N9,000 was N8,500. I used to sell 30 to 40 bags per day on average last year by this time around. Unfortunately, at most, I sell 5 to 10 bags a day now.  We are really affected by this because the only people buying feeds now are mostly those that are preparing for Christmas,” he said. 

Another feed distributor in Kano, Shazali Hotoro, said poor performance in poultry farms across the states had dwarfed their business, which entirely relies on rearing of birds. 

Consumers, chicken roasters lament 

Amidst this crisis of short supply of broilers in Kano, chicken roasting, which is very popular, especially in the evening through the night in almost every axis of the commercial city, has been hard hit. Some roasters told Daily Trust on Sunday that getting both the broiler chickens and customers are becoming tough. 

Muktar Isyaku said, “Things were cheaper and customers were just buying. Some would even call you to package and deliver to their doorsteps, but now, it is just God’s mercy that is sustaining the business.”

Abdulkarim Muhammad said the acute scarcity of broilers in Kano had forced him to move to villages in search of local chickens to sustain his roasted chicken business. 

He said, “If we get five to six-week-old broilers, we sell them N3,000 and N3,500 each. By this time last year, it cost N1,500 and N1,700. 

“Due to the change in prices, customers have drastically reduced patronage. People that were used to buying six or five now manage to buy two or three and infrequently, unlike before.”

A resident, Bashir Sani, told Daily Trust on Sunday that high prices of chickens and weak purchasing power made him patronise chicken sellers once in a blue moon.

“Chicken of whatever type has become a money-draining source, and the money isn’t readily available. So, I only come here to get roasted chicken once in a while. I used to buy 3 to 4 at a time, but now, I buy one, and sometimes, half,” Sani said.

With the festive period of Christmas and New Year fast approaching, residents said they feared that the price of chicken may continue to soar and force more people to reduce their protein intake as alternatives to chicken are also not affordable.