Egg prices soar as Nigerian poultry farmers grapple with feed costs and scarcity
The poultry sector in Nigeria is reeling under the impact of skyrocketing feed costs and scarce production, driving egg prices to unprecedented levels and making them a luxury for many Nigerians. Industry stakeholders, including the Poultry Association of Nigeria (PAN) Lagos State Chairman, Mojeed Iyiola, have highlighted these challenges in discussions with the News Agency of Nigeria (NAN).
Egg Prices Surge Amidst Feed Shortages
Egg prices have soared dramatically, placing a staple protein source out of reach for many households. As of mid-June, a crate of eggs costs between ₦3,800 and ₦4,000 at the farm gate and over ₦4,500 in retail outlets. This marks a steep increase from ₦3,200 to ₦3,500 per crate just a month ago in May.
The cost of key feed ingredients has surged, exacerbating the crisis. A tonne of maize, a crucial feed component, now sells for ₦800,000, a significant jump from ₦400,000 in January. “The reason for the current hike in the price of eggs is that eggs are very scarce now,” said Iyiola. “Most farmers have sold off their old layers, and to get new stock is very expensive as the price of a day-old chick is becoming unbearable.”
The High Cost of Feed and Production Challenges
The relentless increase in feed costs has driven many local farmers out of business. A kilogramme of maize now costs ₦850, up from ₦400 to ₦500 at the year’s start. Similarly, prices for soya and groundnut cake, other essential feed ingredients, have surged.
Iyiola pointed out that the increase in egg prices is not proportionate to the rise in feed costs, leaving farmers struggling to break even. “Most farmers are running at a loss. Even if a crate of eggs sells at ₦5,000, the farmers will only be managing to get by,” he explained. He noted that logistical expenses further compound the financial strain, suggesting that a crate should be sold for ₦4,500 at the food hub to cover costs adequately.
Calls for Government Intervention
The poultry sector’s plight has prompted calls for urgent government intervention to prevent a total collapse. “It seems consuming eggs have become a luxury in our diets,” Iyiola lamented. “We have scheduled a meeting with the government to tackle the situation because there is nothing an individual can do on this issue.”
Godwin Egbebe, the National Publicity Secretary of PAN, echoed these sentiments, attributing the price hike to the escalating cost of raw materials. “Early this month, a tonne of maize sold for ₦720,000, but as of today, it sells at ₦800,000. During the former President Buhari’s administration, a tonne of maize was sold at ₦80,000,” Egbebe said. He emphasized the need for immediate and long-term solutions, including securing farmlands to boost grain production and alleviate feed shortages.
Egbebe also highlighted the ongoing financial losses faced by farmers. “Every day we go to buy feeds, the price changes. Farmers are actually selling at a loss. Most farmers are not breaking even, so they are folding up,” he noted.
Impact on Local Farmers
Local poultry farmers like Theresa Muyi in Alimosho are feeling the squeeze. “Poultry feed has gone up, and we now sell a crate of eggs from the farm gate between ₦3,800 and ₦4,000. The retailers sell from ₦4,500 and above,” she said. Muyi described the volatility of feed prices, which seems to increase almost weekly, further destabilizing egg prices.
The current scenario has made eggs a luxury item for many Nigerians. “Eggs seem to have become a luxury to the common man as a piece of egg now sells at ₦200 and above,” Muyi noted.
The Broader Economic Context
The economic strain on Nigeria’s poultry sector is part of a broader economic challenge facing the country. Inflation, driven by various factors including exchange rate instability and supply chain disruptions, has significantly impacted food prices. The poultry sector, heavily reliant on imports for feed ingredients, is particularly vulnerable to these fluctuations.
Efforts to boost local production have been hampered by insecurity, deterring farmers from cultivating essential grains. The persistent threat of armed groups in agricultural regions has forced many farmers to abandon their lands, further constraining supply and driving up prices.
Industry’s Plea for Comprehensive Support
Stakeholders insist that piecemeal palliatives are insufficient to address the crisis. “Palliatives cannot solve the problem; it is like a drop in an ocean. It makes little or no impact,” Egbebe stated. The sector needs comprehensive support, including policy interventions to stabilize feed prices and enhance security in farming areas to encourage production.
The poultry industry is also calling for subsidies and incentives to lower production costs and make poultry farming more viable. Such measures could include subsidizing feed ingredients, providing low-interest loans to farmers, and investing in infrastructure to support efficient feed production and distribution.
