Covid-19 — A loss or gain for Nigeria’s poultry sector?
A friend with 10,000 crates of eggs is struggling to get a market for his product. As a result, he was recently admitted into the hospital due to high blood pressure — Salam Habeeb Abayomi
Nigeria’s poultry industry is one of the agricultural sectors feeling the shock of precautionary measures taken to flatten the curve of Covid-19.
Prior to the advent of Covid-19, Nigeria had already prohibited some imported goods to curb the importation and smuggling of products such as poultry, while promoting local production. The success of this action, implemented in October 2019, helped the country to raise its poultry population to an estimated 180 million, and an annual output in excess of 700,000 metric tonnes of eggs. This translates to about 450 million crates of eggs and 300,000 metric tonnes of meat.
While the boost to local production is estimated at over N50 billion naira, this pales in comparison to potential losses from Covid-19 control measures, with poultry farmers expected to lose upwards of N3 trillion naira in sales.
As the lockdown of major cities and states continues, demand for poultry products such as chicken and eggs has reduced drastically. Many households have changed their consumption pattern and food preferences in response to the changing economic reality.
On the supply side, most poultry farmers are unable to get essential inputs such as feeds, day-old chicks and vaccines. They are also finding it difficult to sell their existing stock of eggs and market-ready broilers. Nevertheless, a few farmers and serial entrepreneurs are using social media platforms to market their excess stock of eggs and chicken.
It is not only the large poultry farms that are facing the heat of the pandemic on their annual production cycle and investment. Small- and medium-sized poultry players are also not excepted. Two young farmers with thriving small- and medium-sized enterprises (SMEs) in Akure and Osun states of Nigeria shared their challenges amidst the pandemic.
Young entrepreneurs facing losses
Femi Adesina, Founder of Food Trust Integrated Farms, explained that his farm has lost about 200 out of 800 birds in the brooding section due to a viral infection. Although, the outbreak was noticed on time, this coincided with the declaration of total lockdown by the Nigerian government. The lockdown also prevented the veterinary doctor from visiting the farm as most vet drugs are out of stock.
Salam Habeeb Abayomi, Founder Ottab Synergy Farms Ltd, highlighted the impact of the lockdown on the cost of inputs. “In the past weeks, the price of the day-old chicks has reduced from NGN300 (0.77 USD) to NGN140 (0.36 USD),” he lamented. He added that this has forced him to raise the price of his broiler chicken, which has in turn disrupted his supply chain. ”Most families now see broiler meat as a luxury item and the regular restaurants, hotels and weekend Owambe parties have stopped due to lockdown.”
Adesina estimates that his egg sales have dropped by a massive 90% as consumers scale down their food choices to focus on essential items like rice and garri. “The egg industry is the most hit during this pandemic, and we are grappling to sell eggs as supply links have been disrupted and confectionaries are on lockdown,” adds Abayomi.
As if to add insult to injury, already struggling poultry farmers are facing harassment by law enforcement agencies who are said to be extorting those seeking to deliver eggs to consumers, Abayomi pointed out.
In spite of these challenges, Adesina is exploring ways to adapt his business model to focus on home delivery services and online markets. This revised strategy is already paying off, he says, helping the farm to raise a small amount of money to pay for poultry feed.
An assessment of the impact of Covid-19 on small and emerging agribusinesses indicates that entrepreneurs need recovery plans that ensure that their businesses stay on track during, and after, the pandemic. Abayomi advises farmers to continue seeking alternative market opportunities, and sell at break-even prices, while joining forces to aggregate their produce to service high-demand areas like Lagos.
While strategic actions must be taken at all levels of the poultry industry, emerging players like Adesina are hoping that the government will prioritize the poultry industry and make arrangements for a stimulus package to support SMEs.
Written by John Agboola
This article is part of Covid-19 Food/Future, an initiative under TMG ThinkTank for Sustainability’s SEWOH Lab project (https://www.tmg-thinktank.com/sewoh-lab). It aims at providing a unique and direct insight into the impacts of the Covid-19 pandemic on national and local food systems. Also follow @CovidFoodFuture, our Video Diaries From Nairobi, and @TMG_think on Twitter. Funding for this initiative is provided by BMZ, the German Federal Ministry for Economic Cooperation and Development.
