As the festive season heats up and demand for poultry reaches a fever pitch, farmers are caught between a rock and a hard place.

Skyrocketing production costs —driven by rising feed prices, energy expenses, and supply chain disruptions —have pushed many large-scale poultry farms to the brink. Industry experts warn that unless swift interventions are made, the industry could see a wave of farm closures, leaving holiday tables emptier and pockets lighter.

Isaac Iordye, CEO of Franbensac Integrated Farms and farm manager at BADAU Agricultural Services in Adamawa State, shared concerns that poultry farming is no longer the profitable venture it once was, noting that 60 percent of profit is lost due to high production costs.

The steep rise in prices of essential raw materials such as poultry feed (which makes up 75 percent of farming costs), day-old chicks (DOCs), drugs, and vaccines has significantly strained the sector. This financial pressure is threatening the sustainability of poultry farms across the country.

Gbenge Alfred, a young poultry farmer, expressed concerns over the escalating insecurity in the region, along with rising production costs and the poor quality of inputs, which have become significant barriers to the growth of his poultry farm.

He highlighted that between 2019 and 2020, a 25kg bag of poultry feed was priced between ₦3,500 and ₦4,500. However, by 2024, the cost of the same 25kg bag of feed has surged to ₦26,000.

In 2023, the Poultry Association of Nigeria reported that the increasing costs of raw materials had led to the closure of over 30 percent of poultry farms in the country, with large farms experiencing a 50 percent reduction in production capacity.

The situation remains unchanged, with the association recently using its social media platform to announce that, without support from relevant authorities, they would have no choice but to raise the prices of their products, especially eggs. As of now, a crate of eggs is being sold for almost ₦10,000, a significant increase from ₦3,000 in 2022.

Read also:Poultry farmers groan as feed prices soar

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Experts say that in the poultry business, the quality of input directly impacts output. They emphasise the need for monitoring and regulation of prices and quality of raw materials, such as feed, drugs, and day-old chicks.

Low-quality feed, in particular, negatively affects the quality of both eggs and birds, resulting in slower bird growth and reduced egg production. This inefficiency leads to increased costs, higher profit losses, and lower overall yields, making it harder to achieve the desired standards.

Alfred noted that persistent insecurity in the country must be addressed to enable farmers to cultivate essential food crops like soy and maize for feed production.

Pius Aminu, chairman, Poultry Association of Nigeria, the Federal Capital Territory Chapter, told BusinessDay recently that skyrocketing cost of eggs threatens to deepen Nigeria’s food insecurity and nutritional deficiencies.

“The current decline in egg production is alarming, and the country cannot afford to rely on egg importation,” Aminu said.

Experts suggest that adopting agricultural innovations such as dry season farming and the use of early and extra-early seed varieties can help to reduce competition for vital crops, ensuring a more stable supply of maize and soy.

He said that many farmers have been forced out of business, leading to job losses.

“The poultry industry employs a significant number of people, especially in lower-income groups. Each farm typically has at least four to five staff, so the closure of 100 farms directly translates into a higher unemployment rate,” Aminu said.