The Chairman of the Poultry Association of Nigeria (PAN) in Oyo State, Mr Omidokun Oyekunle, has revealed that nearly half of the poultry farmers in the state have gone out of business due to the ongoing crisis in the sector.
Oyekunle made this alarming disclosure during an interview on Wednesday in Ibadan.
He emphasized that the poultry industry contributes about 25% to Nigeria’s GDP, warning that the continued collapse of poultry farms could have a severe impact on the nation’s economy.
He called on both the Federal and State Governments to address the challenges faced by poultry farmers, urging them to provide soft loans with interest rates not exceeding 5%, alongside other interventions, particularly in the supply of critical raw materials like maize and soybeans.
Oyekunle identified the high cost of poultry feeds, especially maize and soybeans, as one of the primary challenges crippling the industry.
He noted that despite the rainy season, maize prices remain steep, with new maize selling at between N650 and N700 per 200kg.
However, most farmers avoid using new maize due to its high moisture content, which negatively impacts egg production. Instead, they rely on old maize, which costs around N850 per kilogram, further driving up production costs.
“This situation presents a major problem for us,” Oyekunle explained.
“When you compare the cost of production with the current selling price of eggs, the profit margins are so thin that many farmers are forced to close their operations, leading to higher egg prices.”
He also pointed out that the importation of frozen chicken is undermining local poultry prices, urging the government to curb such imports to protect local farmers.
Despite the challenges, Oyekunle commended the federal government for allowing the importation of maize, which he believes will eventually help lower production costs and revive the struggling industry.
“Currently, a 25kg bag of broiler feed costs N25,600, which barely feeds 200 birds. This is the harsh reality we are facing,” he said.
“However, the government’s recent decision to allow maize imports should help reduce production costs and bring more farmers back into the business.”
