Poultry feed crisis: Why more interventions are needed

The crisis in the feed industry hit its peak late last year when many poultry farmers started shutting down their farms due to a jump in operation cost, mainly caused by the high cost of feeds. The leadership of the Poultry Association of Nigeria, an umbrella body of poultry farmers in the country, held an […]

The crisis in the feed industry hit its peak late last year when many poultry farmers started shutting down their farms due to a jump in operation cost, mainly caused by the high cost of feeds.

The leadership of the Poultry Association of Nigeria, an umbrella body of poultry farmers in the country, held an emergency meeting in Abuja, warning that if something urgent was not done, the poultry industry might fold up.

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The director-general of the association, Onallo S. Akpa, while calling for immediate intervention by the federal government, raised an alarm that maize that cost N80,000 per ton and soybeans N120,000 per ton in January 2020, cost N200,000 per ton (maize) and N250 per ton (soybeans) as of January 2021.

Apparently, in a move to avert a crisis in the feed value chain, the Central Bank of Nigeria quickly moved in by agreeing to release, in tranches, about 300,000 metric tons of maize to the industry.

The gesture, which the stakeholders believe was timely, seems to have reduced tension in the sector.

The target, according to the bank, is to ensure the poultry industry’s sustainability, job retention, circular flow of income, cheaper nutrition and poverty alleviation.

Last month, about 50,000MT was said to have been allocated to stakeholders in the feed milling industry, with others set to be released in due course. Stakeholders believe the quick release of the remaining tonnages will further redress the feed challenges in the sector ahead of the forthcoming Easter celebration.

The ongoing intervention is being executed in collaboration with players like AFEX Commodities Exchange Ltd, which are facilitating the release of the grains.

The shortfall in maize production has been one of the major challenges in the agricultural sector as according to the PAN DG, the produce is the most highly consumed in northern Nigeria.

This is why many feed producers and other stakeholders are advocating for more interventions by the apex bank in the area of maize and soybeans production.

The General Manager of Premier Feeds Ltd, Austin Daylop, a beneficiary of the intervention, noted that as the new farming season for maize and soybean approaches, decisive actions needed to be taken to meet the demands of the growing population and prevent Nigeria from getting into a cycle of shortfalls.

“The Anchor Borrowers’ Programme by CBN in partnership with the Rice Farmers Association of Nigeria (RIFAN) is one such solution. A similar scheme should also be introduced for maize and soybean production.

“It will definitely help to mitigate rural-urban migration by the farmers brought on by the insecurity challenges, especially in the Northern states where maize and soybeans are cultivated.

“Continuing the collaborative partnerships between the relevant government authorities and industry stakeholders such as the Maize Growers Association of Nigeria (MAGPAMAN) and Poultry Association of Nigeria (PAN) will help to provide critical field data so that policymakers can understand the input required to expand the yield capacity of local farmers,’’ he said.

Ayodeji Balogun, CEO, AFEX, said: “By facilitating the release of the 300,000MT maize, leveraging support from credible players in the ecosystem, including our team at AFEX, the CBN will offer over 35,000 farmers and agro-processors a channel through which they can trade maize at a subsidized rate, and thereby reduce the adverse effect of the maize price hike, increase local demand and also improve farmers’ livelihoods.’’