Despite its status as the leading maize producer in Africa, with an annual yield of over 12m metric tonnes per annum, Nigeria is presently grappling with a shortfall in maize production. The predicament could be attributed to the growing challenges of climate change, worsened by insecurity and multifaceted disruptions occurring in the food supply chain. Consequently, the market has witnessed an abrupt surge in maize prices. The average price of maize in Nigeria has witnessed an over 100% rise in the last two months. The Poultry Association of Nigeria has reported a major rise in the cost of maize, with the product rising from N227,500 in June to N480,000 per tonne as of August. In contrast, the international market reflects a price of US$216.82 for a metric tonne of maize, as stated by the International Grain Council. Using the black-market rate, the domestic price of maize is higher than the international price. Feed expenses constitute a substantial 70% of the total production costs borne by poultry farmers. Any escalation in the prices of critical ingredients such as maize and soybean can potentially elevate these production expenditures substantially.
Analysts are concerned about the repercussions on household consumption of poultry products, particularly the challenges of rising egg and chicken prices. The fourth quarter of each year traditionally witnesses heightened consumption of poultry products, driven largely by the festive season. However, analysts anticipate a decrease in household demand due to heightened price points amidst the ongoing economic crisis. Furthermore, the supply from poultry farmers is expected to fall due to the considerable expenses associated with poultry feeds, coupled with the prevailing inflationary pressures. This confluence of factors could potentially exert a notable strain on the poultry industry.
