Nigeria: As price of eggs soars…

The increasing price of goods and services has left its mark in the Nigerians poultry industry where farmers continue to lament its effect on consumption and sales; JOHN OBA writes  

One of the common means of protein for Nigeria across classes is egg. It is said to contain about six grams of protein, as well as helpful amino acids. Proper daily share of protein for each citizen, according to nutritionists can help with weight management, increase muscle mass, lower blood pleasure and help our bones, as well. Yet this source of protein is gradually becoming unaffordable to the masses.

Though, Nigeria’s poultry industry has expanded rapidly in recent years. Local production only meets 30 per cent of demand for chicken eggs and meat, thus there is huge potential for the industry to expand. Annually according to the Poultry Association of Nigeria, poultry farmers in Nigeria produce about 30 billion eggs, yet the price of egg especially in 2021, continues in its upward trajectory.

The National Bureau of Statistics (NBS), in a report about poverty and inequality between September 2018 and October 2019, said about 40 per cent of people in the continent’s most populous country lived below its poverty line of 137,430 naira ($381.75) per year which represents about 82.9 million people. This has further been mired by current economic challenge that has further driven up the price of items in the market.

Poultry farmers still sells at lost

Despite the high cost of egg, the Poultry Association of Nigeria laments that its members are selling at a loss, saying with the cost of services, egg should be sold at N2500 per crate.

“Egg at the moment is still undervalued, considering the cost of productions vis-a-viz the prices of maize, soya beans, micro ingredients that are completely imported into the country, when you put together all the factors of productions, ranging from sourcing of raw materials, importation, access to finance and loans taken from the banks with the high interest rate being charged, you will see that price of egg at the rate its being sold now is undervalued. With all the inputs from farmers and considering other charges like the power bill, labour, water bills, security etc, a crate of egg should not be sold less than N2500. The price of items in the markets has gone up 400 per cent over the last few months.”

He said when the current price is compared with how much it was being sold in the past; there is the need for Nigerians to cry out. Currently, most of the poultry farmers are running at lost, that is why most small-scale poultry farmers have stop operations. The price of egg is not in isolation of other materials. Many poultry farmers to save cost preferred to sale their layers after few weeks because they would run at lost if they leave them until they start to lay.

High price maize

The Director General also pointed out that the level of insecurity has further aggravated the price of maize which is one of the major ingredients in poultry feeds. As at today, the price of new maize is as high as N150,000 – N160,000 per metric ton, this is even with the high mixture content of 15 to 17% and in some area it is N170,000. It’s never been witness like this at harvest period. And the price is not showing any signs of abating, the same with soya beans.

He said: “Last year November, the Federal Ministry of Agriculture and Rural Development gave poultry farmers 5000 metric tons of maize for 36 states and the FCT with the population of over million poultry farmers in Nigeria. That quantity is a drop of water in an ocean. Notwithstanding, it assisted us. Because, immediately it was announced that poultry farmers have been given maize, those huddling maize quickly release theirs. Also in June, through the Central Bank of Nigeria maize intervention programme, gave us 10,000 metric tons of maize, that amount of maize can only last for 15 days. And we were also given 5000 metric tons early this month.”

He said the poultry farmers need about 4.5 million metric tons of maize annually to meet their demand. Adding that, over 20 billion pieces of eggs has been produced in Nigeria since the beginning of the year which makes the country the number one egg producing nation in Africa but one of the lowest egg consuming countries per person per annum.

Also, a poultry farmer in Abuja and Chief Executive Officer (CEO) of Plumage Farm Limited, Ms Temidayo Lydia Ojomo, said the high cost of feed for the birds remains one of the major cause of rising price, as according to her, most materials required for the production of the feeds are imported and this has been affected by the high exchange rate.

Temidayo said the cost of egg will still go up as the cost of feed increased thrice in the two weeks.

“This time last year, the price of feed was N3500 for layers and over N5000 for broilers, but today the price of feed for layers is N5,510 while that of broilers has gone up to N7150 and still rising. This is aside the cost of vaccination, security, fumigation, transportation,    

High cost of maize

Speaking on the high cost of maize, the National President, Maize Association of Nigeria (MAAN) Dr. Bello Abubakar acknowledged the increase in maize production this year, but said the activities of middlemen, insecurity, hoarding and the rise in the cost of inputs has made it impossible for farmers to sell at a cheap rate.

According to him, “this year, there is an increase in the production of maize, but if you look at it globally, there are increase in prices of all agricultural products, not only maize, right from early 2019 which was further compounded by the global pandemic that affected every economic in the world. 

“Secondly is the problem of insecurity in Nigeria and the challenges of middlemen who horde and illegally export our maize outside the country through the local borders. So, the high cost is not because of lack of production. In 2020, maize farmers product about 20 million metric tons and this year our target is between 22 to 25 million tons despite the challenges of insecurity, flood in most part of the country and draught in other parts.

“But note that the high cost is not peculiar to maize, currently the price of soyabean is high being sold as high as N38000 per 100 kg instead of N17000 previously while sorghum is being sold N24000 instead of the previous N4000 per 100kg. The same is applicable to cowpea which not more than N28,000 to N30,000 before but now is about N60,000 per 100kg,” he said

On the problem of middlemen, he said “though no one can stop others from doing their business” but that the association is ready to work with the government if it would introduce the Guarantee Minimum Price to regulate the cost.

“This will help solve some of these problems. As it is today, the farmers are still investing in their farm, despite the increased services for mechanization, that is why price is still high but we hope by December after harvest, it will come down,” he said.