Nigeria’s poultry farmers struggle as feed costs surge

NIGERIA – The soaring cost of chicken feed in Nigeria is pushing poultry farmers to the brink, with many struggling to keep their businesses afloat.

The price of a bag of chicken feed has risen from US$16.65 in December 2023 to US$18.49, significantly increasing production costs. 

Despite these challenges, poultry processors have not adjusted their buyback prices, preventing farmers from raising their selling prices and forcing them to operate on unsustainable profit margins.

This poultry crisis is part of broader economic challenges in Nigeria, where inflation and rising transportation costs—exacerbated by the removal of fuel subsidies in May 2023—continue to strain businesses.

Key poultry feed ingredients like maize and soybeans have become more expensive, adding further strain on farmers already facing supply shortages and price volatility.

Although the government has banned poultry imports to protect local producers, the policy has offered little relief. 

The high cost of feed and other inputs threatens the survival of many farmers, with some scaling down operations to stay afloat.

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

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

Chairman of the Poultry Association of Nigeria (PAN), Mojeed Iyiola, warns that 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 financial strain. 

At the same time, poultry processors—who control slaughtering and distribution—continue to enforce price restrictions, preventing farmers from adjusting their prices to reflect rising production costs.

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

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

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

Niger State’s poultry investment

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

Deputy Governor Yakubu Garba has urged residents to support the initiative, while local leaders emphasise 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 fertilisers and essential farming inputs to support local farmers.

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