As Christmas approaches, NURUDEEN ALIMI, IFEDAYO OGUNYEMI, VINCENT KURAUN and FUNMILAYO AREMU-OLAYEMI examine the prevailing economic challenges confronting poultry farmers and sellers.
The arrival of the Christmas festive season is usually welcomed with joy and excitement, transforming cities into vibrant displays of colourful Christmas decorations which creates a shared sense of anticipation and celebration among Nigerians.
However, this year, a gloomy tone hangs in the air as the festive season approaches. The usual excitement and anticipation that hitherto characterise the festivity are overshadowed by the harsh economic realities facing many Nigerians, stifling any remnants of festive cheer.
The rising cost of living has placed a heavy burden on many families’ income and the once-affordable rice and chicken that grace their festive table now seem like a luxury. The prices of essential celebratory items like cooking oil, chicken and rice have skyrocketed, leaving many families grappling with the decision to sacrifice tradition for financial prudence.
As the countdown to Christmas continues, Sunday Tribune embarked on a visit to poultry farmers and sellers to investigate the current economic situation and how it might impact the affordability of traditional holiday staples like chicken, rice and oil, for Nigerians.
While speaking with Sunday Tribune, a chicken farmer in Ilorin, Lawrence Kehinde, painted a gory picture of the challenges faced by those in the chicken business, adding that this is not the best of times for anyone in the business because of the rising cost of chicken feed.
He also said many chicken farmers have either closed down or sold off their chickens because of plummeting patronage.
Kehinde noted that the prices of eggs also went up because of the high cost of feed, among other things, adding that this forced many people to stop buying eggs.
He explained that “the cost of chicken feed has been on the increase for a while. In a week, they added N1,100 to the cost of a bag. The cost of a bag as of today is N11,000. When you factor in the cost of vaccines, salaries, power use and generation with diesel, how is the farmer expected to break even?
“There are no sales, even eggs are now expensive and people are not buying them. Some time ago, we would have lots of eggs and want to push them out to make quick cash, but we can’t do that now. Where do we want to push it to?
“There’s no saving grace for farmers in the country right now. Some have closed down, and many are already selling off their chickens so they can have something to hold on to for December. If they don’t, the chickens would drop dead one after the other or produce less eggs as a result of reduced feeding and remember we’re presently experiencing a heat wave.”
At the Ogere Cattle Market where many residents of towns and cities in Ogun State throng for cheap pepper and livestock, only a few traders can boast of increased end-of-the-year sales.
“Things are expensive now. Not that we don’t see customers but we haven’t seen the huge rush of patronage we used to see. It is probably because of the high cost of foodstuffs.
“A bag of onions is now N100,000. A big basket of tomatoes sold for around N40,000 in May but it is now N14,000, tatashe (red bell pepper) is now N11,500, rodo (scotch bonnet) is N27,000 from N17,000 it was sold earlier in the year,” Mrs Grace Balogun, a tomato seller at Ogere Cattle Market, said.
A frozen food dealer at Imalefalafia, Mrs Bola Ayedun, told Sunday Tribune, that Christmas and end-of-the-year sales have yet to pick up, lamenting that the cost of frozen foods had been high for a while, contributing to reduction in patronage.
“A kilogramme of soft and hard chicken and turkey presently sells for N3,000, N3,500 and N4,000 respectively. 10 KG of groundnut oil sells for N15,000. A bag of rice is now around N60,000,” Ayedun said.
In Lagos, Sunday Tribune visited Ebgeda and Tinubu markets both in Alimosho Local Government Area of the state.
At Tinubu market, Sunday Tribune spoke with Mr Ade, a chicken seller and Mr Hamza, a pepper seller. They both lamented the low level of patronage but remained hopeful that it will pick up as Christmas approaches.
Ade said the price varies depending on the size of the chicken. According to him, “the ones I have available now go between N6,500 to N13,500.
“We are expecting new supplies soon for Christmas and New Year sales. What I can tell you categorically is that, come next week, the price would not be the same as what I have now.”
Hamza who sells pepper, tomatoes and onions said “sizes of the baskets are not always the same but the big basket of tomato is between N 22,000 to about N30,000. The same goes for pepper.” He explained that the price of onion has skyrocketed because it is a seasonal crop. He said “This is not the season for onions. Though we are expecting a decrease in the price of onions as soon as we have enough supply.”
At Egbeda market, Sunday Tribune also spoke with Uche, a food seller who also lamented the low level of patronage. According to him, “the level of patronage is not encouraging compared to the previous years. Even when customers are buying, the amount they buy is not much because the prices are very high.
“For instance, a customer, who usually buys a half bag of rice, cannot afford to buy that much now because of the price increase. A small paint bucket of rice now is between N 4,500 to N6,500. The prices might still go up next week because rice is essential during this season.
Some chicken sellers in Idi Oya Community, Ibadan who spoke with Sunday Tribune also lamented the high cost of chicken as patronage has lessened in the days leading up to Christmas.
Mrs Biola disclosed that Layer chicken which sold for N4,000 a few months back, is now sold for between N5,000 and N6,000 while Broilers which sold between N8,000 and N10,000 are now sold within the range of N12,000 and N15,000.
While she is hopeful for an increase in patronage as Christmas draws near, she said she will not be too disappointed if she doesn’t make increased sales as she is quite aware of the economic situation of the country.
“Customers usually buy chicken a few days before Christmas, so we are hopeful that patronage will improve then, but if it doesn’t, it is understandable. Things are very difficult in the country. Many people find it difficult to feed and it is only a person who can put food on their table comfortably that will bother to buy chicken for Christmas. People who are not so comfortable go for other alternatives like beef, fish or even cow skin (ponmo),” she said.
Another chicken seller in the area corroborated Mrs Biola’s claim on the prices of chicken and added that these prices are the current prices which can increase in 24 hours and by the day before Christmas, chicken will be sold at even higher rates.
Another poultry trader in Abeokuta, Olaniyi Igbekoyi, said many poultry traders cannot boast of sales during this festive period because people have other financial obligations, adding that some people will have to resort to alternatives because of the high cost of chicken.
According to him, “I won’t be surprised if people choose eggs for the festivities because of the high cost of chickens. The cost of chickens from the farm is high because of the feed. Broiler is sold for N15,000.
“Hardly can anyone boast of sales this period because people have other financial obligations. I am sure many farmers will sell off their products as frozen chickens after the festivities, if their low sales continue. The economy is bad and people are only trying to survive.”
Why poultry products are expensive
The Chairman, Folhope Nigeria Limited, a renowned agricultural company headquartered in Ibadan, Oyo State, Chief Emmanuel Folorunsho Ogunnaike, while speaking on the subject matter noted that: “We have to expect prices of poultry products will go up like all other commodities.
“The cheapest animal protein in the country is poultry products despite the high cost of production.
“What this means is that poultry producers are producing almost at a loss. Poultry farmers still have enough products to go around during the Christmas and New Year festivals.”
He noted that the problems facing the masses are cash crunch and the lack of capacity to buy due to low income and earnings.
Corroborating the claim, the Head of Operations, Mikebal Farms, Ogun State, told Sunday Tribune that: “With feeding and overhead cost, the production cost is on the high side while the economic situation in the country will not give buyers the willpower to buy.
“Many farmers bring the selling prices down to encourage patronage since they can’t afford to keep their products beyond December.”
Speaking on the cost of poultry products, Chairman, Poultry Association of Nigeria (PAN), Ijebu Zone, Ogun State, Mr Femi Gafar, stated that: “Old layers from the farm is sold for N4,000 but the feed is N11,400 per bag compared to last year when it was N3,400 and feed was N6,550 per bag.
“Now, Broilers range from N6,000 to N15,000 depending on the weight. Local Turkey ranges from N25,000 to N35,000, while foreign ones are sold between N40,000 and N60,000.
“There is already scarcity due to the rising cost of feed. Most farmers are closing their farms after this season. Let us use the old layers for example. If a farmer sells at N4,000, he or she won’t be able to replace the stock because to raise a bird from day old to layer, you’ll spend nothing less than N6,000.
“There will be scarcity of chickens this season, farmers do not have money to raise birds,” he said.
Also speaking with Sunday Tribune, Alhaja Aminat Wahab of Jejeola Farms confirmed that only a few people with capacity patronise chicken farmers and sellers as of today. According to her, “It’s true that chicken and turkey are now expensive and that’s because the cost of chicken feed is too expensive. A bag of chicken feed was between N5,000 and N8,000 but now it is over N15,000. The average-sized chicken now goes for N8,000 and then we have that of N15,000. We also have turkeys of N12,000, N15,000, N20,000 and N30,0000 depending on its size.
“These prices were not like that before now. The cost of maize went up. It used to be N26 per kilogramme, it is now N420 per kilogramme. Soya is now sold for N510 per kilogramme. Those are the reasons for the high cost of chickens and turkey,”
On the level of patronage so far received towards the fast-approaching Christmas festival, Alhaja Wahab said only a few people with capacity still patronise chicken farmers and sellers.
“It is not like it used to be. It is low and it is because of the high cost of feeding and unit cost of chicken. Our customers have pruned down their spending on chickens now. Some have even focused on using fish as alternatives.
“The number of poultry farmers has reduced drastically because many of them have closed down their businesses. For the few that are still in operation, they have reduced their production capacity. It is only the few that you can rear that you’ll eventually sell.
“Those who get 2,000 chickens from the major farms have reduced it to around 500. I used to get around 3,000 to 5,000 chickens before I reduced it to 1,000. If we don’t rear according to our capacity, we’ll run at a loss.
“The cost of feeding and the closure of businesses by poultry farmers also contributed to the high cost of eggs in the market,” she explained.
She added: “A crate of egg is now N2,600 from the farm, the retailers sell it for N3,000 or N3,5000 when you factor in transportation costs and that is why a unit of egg now sells for N150 on the street.”
She urged the government to assist farmers with grain production and exportation which will, in turn, positively affect the cost of feed.
Why government must intervene
Giving an overview of the poultry sector in the country, a poultry veterinarian, Dr Temitope Ige, said the sector has been bedevilled by a serious crisis since January when the cash shortage hit the country, adding that the problem was compounded by the foreign exchange challenges that followed.
“The industry has been facing big challenges since January and the industry is yet to come out of it. The situation is getting worse as time passes.
“The major reason for the hike in the prices of chicken at this time is the cost of feed which is on the high side. Feed marketers/vendors increase their prices almost every week and it is not their fault. The raw material used for the production of feed is maize, constituting about 70-75% of the feed. Maize is presently being sold at N380 per KG. The highest we bought maize before now was N200 per KG. That’s the major issue that has impacted the cost of poultry products.
“Forex also affected the industry. Most of the vaccines and feed additives are imported and you can’t sell below the cost price,” he explained.
On the current level of patronage, Ige said: “People are struggling to market their products now despite the marginal profit they stand to make from it. They can’t put too much differential on it, yet the patronage is so low. Currently, 4-4.5KG of broiler chicken is between N15,000 and N20,000. A layer chicken is N4,500 from the farm, but at the market, it should go for about N5,500. The economy is bad and the purchasing power is not even there. I just hope farmers will be able to sell their products and not run at a loss.”
He, however, believed that the cost of chicken and its feed may not change positively as the year ends because of the dry season.
“It is not possible for the price of feed to come down now because of maize which is the raw material. There is presently a scarcity of maize. Farmers who planted towards the end of the rainy season are already harvesting what we are supposed to depend on in January and February before the onset of the rainy season. Things may get worse next year. I don’t want to be pessimistic but then we should be prepared.
“If the government can intervene in the situation, particularly in the area of maize, by releasing grains for farmers or allowing major stakeholders to import more maize. If not, it is going to be terrible.
“We are doing well with the production of maize but it is not enough to meet the local demand. Sometimes we need to import to meet up. That importation is one of the key issues affecting the sector majorly.”
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