Sharp practices pushing us out of business–Poultry farmers

The Nigerian poultry industry, once considered a promising sector, is facing a growing crisis that threatens its sustainability. Farmers in Edo State have raised concerns over challenges ranging from high feed costs and market uncertainties to sharp practices by middlemen and lack of government support.

Umugbe Augustine, a poultry farmer in Benin City, lamented the widespread pilfering of eggs and birds by farm attendants, leading to significant losses. He also highlighted the difficulty in accessing government-backed loans, stating that while funds are allocated for agriculture, they rarely reach grassroots farmers. Despite securing approval for a ₦10 million loan through the Bank of Agriculture, his cooperative has been waiting for disbursement for over eight months.

Mrs. Agege Ejime, owner of Two Sisters Poultry Farm, decried the exploitation by middlemen who take birds on credit and delay payments, sometimes reneging on agreed prices. She further noted that the rising cost of feed, now at ₦19,000 per bag, is eating into farmers’ profit margins, making poultry farming increasingly unsustainable.

Kingsley Imasuen, Chairman of the Uhunwonde Poultry Farmers Association, emphasized the lack of a hatchery in Benin City, forcing farmers to source day-old chicks from Ibadan. However, middlemen engaged in fraudulent practices often mix broilers with cockerels or crossbreeds, reducing productivity and causing financial losses. Additionally, feed millers have been accused of underweight and poor-quality supplies, further straining farm operations.

Isiah David of Jansolid Poultry Farm stressed the need for long-term financing, arguing that short-term loans do not align with the production cycle of poultry farming. He also pointed out that fluctuating feed prices and reduced quality negatively impact egg-laying performance.

Mrs. Overy Juliana Alake echoed concerns over the absence of hatcheries in Edo State, highlighting how middlemen exploit the situation by supplying mislabeled or incorrect breeds. Similarly, Aziegbe Pius described the poultry market as unstable, making it difficult for farmers to find reliable buyers, particularly amid Nigeria’s economic downturn.

In addition to financial constraints, farmers expressed concerns about the lack of extension services, leaving them reliant on private veterinary doctors for farm management advice. Many fear that without urgent intervention, more poultry farms will shut down, leading to increased food insecurity.
Source- Daily Trust

Expert Review for Agri-Food Stakeholders
The issues raised by poultry farmers in Edo State reflect broader challenges within Nigeria’s poultry value chain. For the sector to thrive and meet local demand, stakeholders—including government agencies, financial institutions, and private investors—must address these pressing concerns.

1. Access to Finance:
   – The slow disbursement of approved agricultural loans highlights the inefficiencies within financial institutions. The government should implement a transparent and direct financing system that ensures funds reach the intended beneficiaries without undue delays.
   – Interest rates and collateral requirements should be restructured to accommodate smallholder farmers, allowing them to expand their businesses.
2. Supply Chain and Middlemen Exploitation:
   – The reliance on middlemen for inputs and market access is a major weakness in the sector. Establishing cooperative buying groups and direct farmer-to-market linkages can help poultry farmers negotiate better prices and reduce exploitation.
   – Edo State should explore setting up its own hatcheries to eliminate dependence on distant suppliers, reducing costs and mitigating fraudulent practices.
3. Feed Quality and Pricing:
   – The high cost of feed remains a critical concern, with farmers struggling to break even. The government and private sector should invest in alternative feed sources such as insect-based protein, local grain production, and feed formulation technology.
   – Regulatory agencies must enforce strict quality control measures to curb fraudulent practices by feed millers.
4. Pilfering and Workforce Management:
   – Theft by farm attendants signals a need for better security measures, including farm surveillance systems and employee accountability structures.
   – Training programs on proper farm management and business ethics can help farmers improve staff supervision and minimize losses.
5. Market Stability and Demand:
   – Poultry farmers face declining purchasing power among consumers, making it difficult to sustain profits. Policies that promote local consumption, such as government-backed poultry procurement for schools and institutions, could help stabilize demand.
   – Strengthening cold chain infrastructure would enable farmers to store products longer, preventing distress sales.
6. Extension Services and Veterinary Support:
   – The absence of extension officers leaves farmers without adequate guidance. Public-private partnerships should be established to provide consistent advisory services and disease control strategies.
   – Digital solutions, such as mobile advisory platforms, can bridge the knowledge gap and improve farm productivity.

Conclusion
The poultry industry remains a vital part of Nigeria’s agricultural economy, but urgent interventions are needed to address financial, structural, and operational challenges. Collaborative efforts between policymakers, financial institutions, and private investors will be critical in ensuring the sector’s long-term sustainability. Without strategic reforms, Nigeria risks further farm closures, increased import dependence, and food insecurity.”