Poultry feed prices in Nigeria jump 164% in three years
The average price of poultry feed in Nigeria has risen by at least 168% over the past three years, a considerable increase that underlines the extent of food inflation in Nigeria in recent years.
On average, 25 kg of poultry feed, mainly made from corn, soybeans, wheat and millet, has gone from 3,600 naira in 2019 to between 8,500 and 10,000 naira in July 2022, according to market research conducted by the Journalism Centre. and Development of Innovation (CJID).
The cost is felt daily in households as families pay more for chicken and eggs. A broiler sells for N5,500-7,000 now compared to N1,500-2,500 in 2018, while a crate of eggs has gone from N800 to N1,800.
Food prices in Nigeria rose 20.6% in June from a year earlier, the fastest pace in 11 months, according to the National Bureau of Statistics. Headline inflation rose to 18.60%, a five-year high.
Prices of goods and services have soared in Nigeria, fueled by several factors. Inflation worsened in 2019 after the government closed borders to control smuggling and boost production of rice and other essential food production. But weak domestic production has slowed supply in the face of huge demand, pushing up prices. Pandemic shutdowns, shortage of foreign currency, insecurity, high fuel prices and lately Russia's war in Ukraine have complicated the issue.
Nigeria's poultry industry, worth $4.2 billion according to the Food and Agriculture Organization of the United Nations, is a major source of protein for over 200 million people . But the sector, which contributes 9 to 10 percent to GDP, has struggled over the past three years and many operators have dropped out due to high costs. Farmers bemoan high feed costs and traders complain about ever-rising ingredient costs.
"Poultry feed has tripled since I started the business in 2019, especially as safety concerns have prevented farmers from producing maize, which is a major component of poultry feed. poultry," said Juliet Ebere, a poultry farmer in Abuja.
Farmers say they need about a kilogram of starter feed to feed a broiler from the first to the third week. They need about 3 kg of starter feed for another three weeks, and between the seventh and eighth week a broiler needs 2.5 kg of finisher feed. This totals 650 kg or 26 bags of feed per 100 broilers - N247,000. It would have been N93,600 just four years ago.
Ephraim Christopher, a poultry feed vendor in Abuja, said a 25kg bag of feed costs between 8,500, 9,500 and 10,000 naira depending on the brand.
“The situation has really affected me; many farmers have gone out of business due to the high cost of feed. but now I struggle to sell even 30 bags a day,” Mr. Christopher said.
Mr. Christopher said suppliers attribute the price hikes to the high cost of raw materials, transportation, insecurity that has kept farmers away from their fields and the scarcity of dollars needed to import maize, as Nigeria doesn't produce enough.
Anny Udo, a poultry farmer in Uyo, said the situation did not encourage her to continue her business even after reducing the size of her poultry farm.
“The increase in the price of poultry feed is very disheartening to me. I used to buy feed at 3600 per 25kg bag but now it is N9000 and up depending on the brand. I originally had around 500 birds on my farm but now due to high feed prices I have reduced it to 200 birds and even hope to stop breeding once I can sell what I I have now, maybe I'll grow it seasonally depending on the festivities,” Ms. Udo said.
RISKSNigeria continues to struggle with insufficient quantities of cereals and depends on imports of maize and wheat to meet local needs. The current crisis between Russia and Ukraine has aggravated the situation, as the two countries are the world's largest suppliers of wheat and other cereals.
According to data from the United States Department of Agriculture (USDA), Nigeria's maize production in 2021 fell from 12.4 million metric tons in 2020 to 12.7 million tons. Yet, the country is still lagging behind as the country imported 500,000 metric tons of maize between two years.
Governance and development analyst Sam Amadi said the situation will have huge implications for the country's economy.
“There is a serious food crisis brewing in Nigeria and the political class is not...
The average price of poultry feed in Nigeria has risen by at least 168% over the past three years, a considerable increase that underlines the extent of food inflation in Nigeria in recent years.
On average, 25 kg of poultry feed, mainly made from corn, soybeans, wheat and millet, has gone from 3,600 naira in 2019 to between 8,500 and 10,000 naira in July 2022, according to market research conducted by the Journalism Centre. and Development of Innovation (CJID).
The cost is felt daily in households as families pay more for chicken and eggs. A broiler sells for N5,500-7,000 now compared to N1,500-2,500 in 2018, while a crate of eggs has gone from N800 to N1,800.
Food prices in Nigeria rose 20.6% in June from a year earlier, the fastest pace in 11 months, according to the National Bureau of Statistics. Headline inflation rose to 18.60%, a five-year high.
Prices of goods and services have soared in Nigeria, fueled by several factors. Inflation worsened in 2019 after the government closed borders to control smuggling and boost production of rice and other essential food production. But weak domestic production has slowed supply in the face of huge demand, pushing up prices. Pandemic shutdowns, shortage of foreign currency, insecurity, high fuel prices and lately Russia's war in Ukraine have complicated the issue.
Nigeria's poultry industry, worth $4.2 billion according to the Food and Agriculture Organization of the United Nations, is a major source of protein for over 200 million people . But the sector, which contributes 9 to 10 percent to GDP, has struggled over the past three years and many operators have dropped out due to high costs. Farmers bemoan high feed costs and traders complain about ever-rising ingredient costs.
"Poultry feed has tripled since I started the business in 2019, especially as safety concerns have prevented farmers from producing maize, which is a major component of poultry feed. poultry," said Juliet Ebere, a poultry farmer in Abuja.
Farmers say they need about a kilogram of starter feed to feed a broiler from the first to the third week. They need about 3 kg of starter feed for another three weeks, and between the seventh and eighth week a broiler needs 2.5 kg of finisher feed. This totals 650 kg or 26 bags of feed per 100 broilers - N247,000. It would have been N93,600 just four years ago.
Ephraim Christopher, a poultry feed vendor in Abuja, said a 25kg bag of feed costs between 8,500, 9,500 and 10,000 naira depending on the brand.
“The situation has really affected me; many farmers have gone out of business due to the high cost of feed. but now I struggle to sell even 30 bags a day,” Mr. Christopher said.
Mr. Christopher said suppliers attribute the price hikes to the high cost of raw materials, transportation, insecurity that has kept farmers away from their fields and the scarcity of dollars needed to import maize, as Nigeria doesn't produce enough.
Anny Udo, a poultry farmer in Uyo, said the situation did not encourage her to continue her business even after reducing the size of her poultry farm.
“The increase in the price of poultry feed is very disheartening to me. I used to buy feed at 3600 per 25kg bag but now it is N9000 and up depending on the brand. I originally had around 500 birds on my farm but now due to high feed prices I have reduced it to 200 birds and even hope to stop breeding once I can sell what I I have now, maybe I'll grow it seasonally depending on the festivities,” Ms. Udo said.
RISKSNigeria continues to struggle with insufficient quantities of cereals and depends on imports of maize and wheat to meet local needs. The current crisis between Russia and Ukraine has aggravated the situation, as the two countries are the world's largest suppliers of wheat and other cereals.
According to data from the United States Department of Agriculture (USDA), Nigeria's maize production in 2021 fell from 12.4 million metric tons in 2020 to 12.7 million tons. Yet, the country is still lagging behind as the country imported 500,000 metric tons of maize between two years.
Governance and development analyst Sam Amadi said the situation will have huge implications for the country's economy.
“There is a serious food crisis brewing in Nigeria and the political class is not...
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