Agribusiness News Review: Kano Poultry Farmers Adopt New Measures to Beat High Feed Cost

In response to the sharp rise in poultry feed costs across Nigeria, poultry farmers in Kano State are adopting innovative strategies to sustain their operations. One such approach is a partnership between larger poultry producers and smallholder farmers. Farmers purchase day-old chicks from hatcheries, raise them for two to three weeks, and then sell the young birds back to the hatcheries to complete the production cycle.

This cost-sharing model helps both parties to reduce feed expenses, which have skyrocketed in recent months. According to a poultry farmer, Malam Shehu Caji, a 25kg bag of starter feed that cost less than N10,000 last year now sells for N20,700. Many farms have shut down due to these rising costs, but this new cooperative approach offers a lifeline for both large and small-scale poultry operations.

Moreover, local chicken breeds, which are cheaper to feed but take longer to mature, are also becoming popular among poultry farmers in Kano. Halliru Bashir, a local farmer, highlighted that feeding local breeds is significantly less expensive than rearing layers and broilers, which require more intensive management and higher input costs.

This shift to cooperative poultry farming and the return to local breeds marks a significant adaptation for the industry, ensuring that some farmers remain in business despite the ongoing challenges.

Source: Dailytrust

Expert Review for Agri-Food Stakeholders

The rising cost of poultry feed, as reported, is a clear signal for stakeholders to reconsider traditional production methods in favor of more adaptive strategies. Kano’s poultry farmers have demonstrated resilience by adopting cooperative models and shifting toward cost-effective, local breeds.

Key Implications for the Poultry Value Chain:

1. Cooperative Production Models: The practice of smallholder farmers rearing day-old chicks for two to three weeks before returning them to larger farms for finishing is a practical solution for reducing overhead costs. This model could be scaled and formalized into contract farming agreements, which would provide clear terms and pricing for both parties. Such models can also reduce risk, as feed costs are shared, and farmers are not solely responsible for raising chicks to full maturity.
2. Local Chicken Breeds as a Resilient Option: The shift towards rearing local chicken breeds offers a valuable diversification strategy for farmers struggling with high input costs. Local breeds are hardy, less reliant on expensive commercial feeds, and are often more resistant to local diseases. However, their longer growth cycle may affect cash flow, so stakeholders must develop market strategies to account for the extended production time.
3. Feed Cost Crisis: The report highlights the critical issue of feed prices in the poultry sector. Feed constitutes over 70% of the cost of production, and the doubling of feed prices in under a year is unsustainable for most smallholder farmers. This crisis underscores the need for local feed production initiatives, such as the use of alternative feed ingredients (e.g., cassava peels, agro-industrial by-products), which could reduce dependence on expensive commercial feeds.
4. Opportunities for Input Suppliers: Input suppliers, particularly those focused on poultry feed production, can tap into this demand by innovating and developing more cost-effective feed options. In addition, promoting feed efficiency technologies (such as precision feeding systems or locally formulated rations) could help reduce overall feed consumption and mitigate the impact of rising feed prices on producers.

Strategic Recommendations:

1. Develop Contract Farming Models: Stakeholders, including agri-business consultants and associations, should facilitate formal agreements between hatcheries and smallholder farmers to sustain this shared production model.
2. Invest in Alternative Feed Production: Opportunities exist in promoting alternative feed sources, such as crop residues or HQCP (High-Quality Cassava Peel) products, which are more affordable and accessible for farmers.
3. Support for Local Breeds: Extension services should promote the benefits of local breeds and provide guidance on managing these birds for small-scale operations.
4. Policy Advocacy: Stakeholders should push for government interventions to subsidize poultry inputs, particularly for smallholder farmers, to prevent further closures of poultry farms across the country.

This news signals a critical need for stakeholders to innovate and adapt, ensuring long-term sustainability in Nigeria’s poultry industry amidst fluctuating feed prices.