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Tag: livestock

  • Invest in livestock, African countries urged

    • ‘Sector’s global value hits $1.4 tr

    A Livestock expert and Executive Director of Forum for Agricultural Research in Africa (FARA), Dr. Yemi Akinbamijo, has challenged African countries to invest in livestock.

    He spoke as a guest lecturer at the  yearly lecture of  the Department of Animal Science with the Directorate of International Programmes, University of Uyo (UNIUYO), Akwa Ibom State.

    He decried the low level of investments and lack of interest by most African countries, including Nigeria, in the sector, saying the situation was pathetic.

    Akinbamijo said the major challenge that livestock investors face in Africa is  low capacity for innovation.

    On why African countries must take action, Akinbamijo said total asset value of the global livestock market stood at $1.4 trillion and the sector globally employs about 1.3 billion people with Africa gaining or contributing very little.

    He said of the five highest value global commodities, four are livestock.

    The FARA chief said by 2040, 70 percent of global beef and milk will be produced in developing countries by small holders.

    On global food production, Akinbamijo said by 2050, the meat and milk markets are projected to increase 145 percent and 155 percent, respectively, over 2005/07 levels.

    He said over this period, Africa’s increase in volume of meat consumed will be at par with that of the developed world and Latin America and gains in the size of Africa’s milk markets will be stronger than in any other region except South Asia.

    He said further that the yearly growth rates in both meat and milk consumption are projected to be higher in Africa than in any other region except in South Asia. In both volume and value, beef, milk and poultry will provide business opportunities for Africa’s livestock producers, sellers and investors, the FARA Boss submitted.

    He however regretted that since livestock do not get the attention it deserve in most part of Africa, its potential to contribute to economic well-being of the continent is under-exploited.

    According to him, three quarters of Africa’s rural households, who possess livestock, employ about 50 per cent of agricultural labour force. He added that the trend accounts for about one third of agricultural Gross Domestic Product GDP (contributes about 10 per cent of GDP).

    He said that livestock which is the fastest growing agriculture subsector, provides food; employment and income; soil fertility improvement; traction (ploughing and transport), including capital accumulation to cope with food crises and major life events.

    He, however, advised African governments and investors in livestock to add value to their stock for greater markets outreach.

    The lecture with the theme “Livestock and the economic wellbeing in Africa” was sponsored by by Dantata Foods and Allied Products.

  • ‘Livestock identification ‘ll reduce spread of diseases’

    ‘Livestock identification ‘ll reduce spread of diseases’

    Livestock expert, Dr Ademola Adeyemo, said the establishment of a livestock identification programme will help the government to track livestock in cases of disease outbreaks.

    Having recovered from the attack of Ebola and bird flu, Adeyemo,who is Deputy Director, General Management,Agricultural and Rural Management Training Institute(ARMTI), said there was  the need for a registry to track animals’ movements so that agriculture and health officials can quickly establish quarantines and take other steps to prevent the spread of disease.

    He said livestock producers need to affix identification to their animals, while there should be records of medical treatments such as vaccinations, medications and feed requirements.

    At the nation’s stage in development, the don said animal identification should be required and producers accept the concept to save the industry from diseases occurrences.

    According to him, tracking cows should be a concern as identification will make investigations faster and easier.

    Meanwhile, Sub-Saharan African countries have adopted a declaration on animal identification and recording, a move that is expected to improve food security, livestock genetics and better flock management as well as manage animal health and disease control.

    “By adopting the Pretoria Declaration on Animal Identification and Recording Systems for Traceability and Livestock Development, the countries have affirmed their commitment to identification of animals and recording of their movements and health and put in place measures such as surveillance, early detection and notification of outbreaks, rapid response, control of animal movements, and zoning or compartmentalisation,” said Food and Agriculture Organisation( FAO) Representative in South Africa, Tobias Takavarasha.

    Livestock is one of the most important and fastest growing agricultural subsectors in developing countries, fuelled by increasing demand for animal products. Livestock accounts for 37 per cent of agricultural Gross Domestic Product and it continues to grow. Despite the rapid growth globally, animal production (meat, milk and eggs) in Sub-Saharan Africa is   increasing at a slower pace.

    A substantial and sustained increase in animal production and productivity is therefore required and animal identification, performance recording and traceability can significantly contribute to the much needed growth. The Comprehensive Africa Agriculture Development Programme targets an annual growth rate of 4.2 per cent for the livestock sector by enhancing the role of livestock in agricultural intensification and promotion of market-based livestock development.

    Animal Identification and performance recording systems are also key to genetic improvement and to better herd and flock management and, thus, enable sustained productivity gains. This has  been demonstrated in many countries where decades of performance recording and selection have resulted in remarkable improvements in animal productivity, particularly in the commercial sector. “Africa needs investment in animal identification and performance recording to become competitive in the markets for breeding animals as well as animals for consumption,” said Irene Hoffmann, Chief of FAO’s Animal Genetic Resources programme.

    Presentations and group discussions during the Symposium provided ample examples for the integrated approach and multipurpose benefits from animal identification and recording.

    “This holistic approach is nicely illustrated in the FAO guidelines for the development of integrated and multipurpose animal recording systems that were designed to support countries in the development of such systems”, said Badi Besbes, FAO Animal Production Officer.

    About 130 participants from 30 countries met in Pretoria, South Africa, at the occasion of the international symposium on ‘Animal Identification and Recording Systems for Traceability and Livestock Development in Sub-Saharan Africa’.

  • How to improve livestock production, by expert

    Nigeria will  improve its  livestock industry by  increasing its seed stock, building larger capacity slaughterhouses and launching information systems for animal identification and traceability, an  expert, Dr Ademola Adeyemo  has  said.

    Adeyemo, the Deputy Director, Directorate of General Administration, Agricultural and Rural Management Institute (ARMTI), stressed  the  need   to  increase the seed stock of commercial cattle which  could be  distributed to livestock farmers across the country.

    He  explained that  farmers were not making  much  because of the low proportion of pedigree animals , the low productivity of its commercial cattle population, small number of dedicated feedlots, and a lack of technical regulations for the production of livestock products  to meet world standards.

    While  cattle slaughter rate is increasing ,he  added that the number of  standard slaughter  houses are  small  to  take  care of  increasing  population  nationwide.

    According to him,  slaughter houses should be made  to  operate under international health and safety standards.

    He   said  operators  should  be  encouraged  to  use  modern technology, that could  led to higher-value product for  customers.

    With increased demand for beef, he  said   the cattle population has declined as farmers are having to sell more beef than is required to maintain or grow the population.

    He called  on the  government  to create favourable conditions for farm business, where raising cattle on a farm would be more beneficial than selling them, “and to import cattle population from other countries in order to achieve an increase in seed stock in the country” as soon as possible.

    With  insecurity in the North, he  said  the nation could experience  beef deficiency ,urging  the  government to raise  to the challenge  by  creating  the  conditions necessary for the development of the  cattle sector, which included low-cost feed production, high genetic potential and the availability of marketing outlets.

    In terms of genetic potential, he  said  the  sector  needs  to develop premium cattle, which is  key to the competitiveness and profitability of the sector.

  • How to improve livestock production, by expert

    How to improve livestock production, by expert

    How can Nigeria improve livestock production? It is by  increasing its seed stock, building larger capacity slaughterhouses and launching information systems for animal identification and traceability, an  expert, Dr Ademola Adeyemo  has  said.

    Adeyemo,  Deputy Director, Directorate of General Administration, Agricultural and Rural Management Institute (ARMTI), stressed  the  need   to  increase the seed stock of commercial cattle which  could be  distributed to livestock farmers.

    He    explained that  farmers were not making  much  because of the low proportion of pedigree animals, the low productivity of its commercial cattle, small number of dedicated feedlots, and the lack of technical regulations for livestock to meet world standards.

    Cattle slaughter rate, he said, is increasing, but the number of  standard slaughter  houses are  small  to  take  care of  increasing  population.

    According to him,  existing  slaughter houses should be made  to  operates under international health and safety standards.

    He   said  operators  should  be  encouraged  to  use  modern technology, that could  led to higher-value product for  customers.

    With increased demand for beef, he  said   the cattle population has declined as farmers are selling more beef than is required to maintain or grow the population.

    He called  on the  government   to create favourable conditions for farm business, where raising cattle on a farm would be more beneficial than selling them, “and to import cattle population from other countries to achieve an increase in seedstock in the country.”

    Also, he  said  the nation could experience   beef deficiency, as a result of the insecurity in the North, urging  the  government to raise  to the challenge  by  creating  the  conditions necessary for the development of the  cattle sector, which included low-cost feed production, high genetic potential and the availability of marketing outlets.

    In terms of genetic potential,he  said  the  sector  needs  to develop premium cattle, which is  key to the competitiveness and profitability of the sector.

  • Zimbabwe to invest in livestock

    Zimbabwe to invest in livestock

    Russia and Zimbabwe look set to forge ties in the livestock industry as a delegation from the Eastern European nation is expected in Harare in the coming weeks to discuss opportunities.

    Zimbabwe’s Agriculture, Mechanisation and Irrigation Minister, Dr Joseph Made, said: “Very soon we will have a delegation from Russia, exclusively for the livestock sector and it is going to be wide ranging.”

    It is thought that the two countries will explore areas including vaccine manufacturing, infrastructure and new technology.

    Livestock production in the African nation is centred on beef, pork and poultry, with its cattle herd increasing by 2.3 per cent to 5.36 million in the 2013/14 season. The poultry sector is also growing, up by 400,000 tonnes in the 2012/13 season.

    However, milk production remains below the national demand by a factor of half after several years of hardship in the industry.

    Dr Made said Russian investment could be with state-owned companies, such as Cold Storage Company or private arrangements, and looked at how Russia has been instrumental in developing and mechanising the Chinese livestock industry.

  • Livestock Feeds launches Aquamax fish feed

    Livestock Feeds Plc (LSF), a subsidiary of UAC of Nigeria PLC (UAC) has launched its Aquamax Fish Feed in Lagos.

    Aquamax Extruded Catfish Feed, which is in granules or pellets, provides nutrition in a stable and concentrated form, thereby enabling fish to feed efficiently and grow to their full potential.

    According to the company, “with Aquamax, the maximisation of aqua resources is guaranteed. Testimonies from fish farmers that used this product during the test-marketing phase have attested to a Feed Conversion Ratio of 0.75kg feed to 1kg of flesh.”

    Speaking at the launch in Lagos, the Group Managing Director of UAC, Mr Larry Ettah, justified the introduction of Aquamax into the  fish feed market, saying: “Our investment in fish feed is borne out of the strong and long-term fundamentals of the animal nutrition and fish feed markets. We are committed to a strategy of increasing profitability through innovative and sustainable nutritional solutions, while leveraging our position and capabilities to meet global standards in the industry. We are also confident that we have the right strategy and the right people to drive our vision.”

    Ettah, who was represented by Mr Joe Dada, Executive Director, Corporate Services of UAC, stressed that with Aquamax, fish farming would be revitalised in the country:”

    ‘’As a people, our drive towards sustainable food security lies in transforming agriculture into a profitable and competitive endeavour that can attract our best hands.”

    The Managing Director of LSF, Mrs Modupe Asanmo, highlighted some of the exceptional qualities of Aquamax, saying: “We have produced an extruded fish feed that is fresh, affordable, with exciting aroma, attractive packaging and longer floating period to meet the nutritional requirements of catfish. ‘’

     

  • Combating threat of toxins on plants, livestock

    Combating threat of toxins on plants, livestock

    The quality of feeds is critical to improved livestock production. Achieving this is becoming difficult because of the threat of natural toxic contaminants in feeds known as aflatoxins which affect crops and animals. Combating this menace was the focus of experts at a forum organised by the International Institute of Tropical Agriculture (IITA) in Lagos. DANIEL ESSIET reports.

    Mohammed Musa (not real name) was happy when he saw his acre of lush green and well-arranged field of corn and other arable crops.

    His happiness  was  shortlived when   few  months  later,  he saw  somethings that were strange  during  harvest.  The  crops  were  eaten  by  aflatoxins, a fungi which  affects cereal  crops. Though the damage was not much, it still took him a long time to separate the few crops affected  by aflatoxins.

    All over the country, the economic consequences of aflatoxins contamination are profound. Crops affected by it often have to be destroyed or alternatively, they are sometimes converted into animal feed.

    Giving contaminated feeds to susceptible animals can lead to reduced growth, illness and even death.

    One   victim of this misfortune is Olatunde Raheem, a poultry farmer in  Ketu, a Lagos suburb.  He  was  a big  time  farmer and  one of  the biggest  player  in  the  poultry business. All through his  business life, his  birds never suffered   from any  epidemic. He was not expecting it either but like a thief in the night, an aflatoxins tsunami   struck his farm overnight.

    In one fell swoop, he   lost  about  N600,000. The cause  was  attributed  to  aflatoxins.

    Raheem is just one out of the many poultry farmers that have lost their entire life savings to the ravages of aflatoxins.

    Several livelihoods have been lost, tonnes of staple food destroyed and  millions of naira have been lost.

    This development has elicited the attention of experts who are poised to proffering solutions to the problem.

    Speaking during a forum organised  by  the  International  Institute  of Tropical Agriculture(IITA) in Lagos, the    Head of  Technical Laboratory Services,  Animal Care Laboratory, Ogere Remo, Ogun State,Dr  Dotun  Oladele, lamented that poultry farmers in the country have lost substantial investment to aflatoxins attack.

    He  said there were  appalling circumstances where  farmers lost  millions  of  naira  within few  days  of  aflatoxins attack . He told participants that the threat of aflatoxins is real and must be tackled headlong.

    Oladele said aflatoxins affect animal performance and health. Described as  mycotoxins because  they cannot be detected except  through  laboratory  tests, the  veterinary expert  said  aflatoxins  weaken  the animals’ immune system, disrupt   the normal functioning of major organs such  as  the rumen, intestinal tract, liver, kidneys, reproductive system and  nervous system.

    He   said  poultry farmers suffer a  great  deal  from  aflatoxins  threat, adding that  all species of birds are susceptible. According to him, globally, aflatoxins attack is one of the most common poultry threats.

    When crops are attacked, the common symptoms include watery eyes, persistent coughing and gasping. The condition affects egg production and quality with brown broiler eggs turning to white.The consequence is huge financial losses and higher veterinary costs.  His concern, however, was that the situation was likely to get worse as most farmers are still not aware of the problem.

    According to him,  the  threat  is particularly hard to contain once there is an outbreak but added that to prevent it,  poultry farmers have to test feed raw materials, especially sources of protein, carbohydrate and fibre for aflatoxins  level. This would help classify samples for rejection or acceptance.

    Where there are outbreaks, however, he advised that steps be taken to eschew colossal losses. These involve taking a complete history of the case, performing a post-mortem examination and noting the lessons observed.

    On regular intervals, he said farm owners must analyse feed consumed by birds to know the aflatoxin level.

    He said: “There may be need to totally withdraw such feed or change a major raw material which was responsible for high aflatoxins level in finished feed.”

    Indeed, aflatoxins have become a challenge for livestock farmers’ quest  to  optimise production and remain profitable over the long term. Between January 2012 and December 2012, he said a total of 2,403 samples were tested for total aflatoxins  levels at the Animal Care Laboratory, Ogere Remo, Ogun State. The type of samples included,  maize, wheat, rice and corn offal, poultry and fish feed,  indomie waste among  others.

    For  him,  if the livestock  industry is to  tackle  the  threat  of  aflatoxins  and  remain  profitable,  it is imperative for farmers get as much help as possible. On the whole, he said  it was worth testing for in both grain and pelleted feedstuffs.

    A food safety expert and  former chairman, Mycotoxicology  Society  of  Nigeria, Prof Stephen Fapohunda said farmers face difficulties  controlling the  threat as they are not easily noticeable on  time.

    He  said  carrying  preventive measures  during planting makes  it  easy to control, adding that   farmers needed to get their risk assessments right ahead of harvest. Fapohunda said  compulsory tests at mills would  help  to  control the  impact  of the  fungi. He noted that it was important growers recognise the value of the risk assessment as it will continue to play an important part in managing the risk of aflatoxins. In particular, he said risk assessment during pre-harvest would   ensure that the likelihood of any  aflatoxins  problem is accurately taken into consideration.

    He said  procedures to be followed at different steps of processing in the plant such  as  receipt of materials, storage, distribution, pest control, maintenance of plant and machinery, personal hygiene, training , traceability, labelling, various critical points  among  others were also vital.

    He warned that farmers could lose their farm assurance status if tests indicate high aflatoxin levels.

    Fapohunda stressed the need   to spread awareness among  processors, traders, exporters and farmers to control quality of crops during production, storage and processing and sensitise them about aflatoxin contamination in the supply chain.

    Leader, AgResults Aflasafe Team, IITA, Ibadan, Debo Akande said when crops become infected, they show symptoms of head blight and  may have individual bleached spikelets or partially bleached ears. At harvest, this could result in pink or white shrivelled grains. However, he said it was possible for aflatoxins  to be present without  discoloured grains.

    In Nigeria,  he   said  an  between 40 to 60 per cent  of maize has unacceptably high levels of aflatoxin. The contamination, he noted, has harmful health effects for consumers and growers.  Akande  said  a  bio control product, Aflasafe, developed by IITA and other partners has  reduced aflatoxin contamination of maize by between 80 and 90 per cent.

    According  to him, the   AgResults Aflasafe Project is providing incentives to small farmers  adopting  the  biological control innovation. It focuses on consumption  and production impact of aflatoxin reduced maize.

    So far, he   said  few maize-producing organisations and farmers are aware of the aflatoxin problem or unwilling to invest without confidence that there will be a market for aflatoxin-free crops. At the same time, he said regulators are constrained in their ability to enforce limits on aflatoxin contamination. He   said  the  Aflasafe Pilot was implemented across  the country by four different aggregator entities, with varying results.  He  explained  that  the  United  States (U.S.) acceptable limit for aflatoxin concentration is 20ng/g. He said: ”Every implementer’s average was well below this limit, except for one Babban Gona sample, two Kaduna CADP samples, and one Kano CADP samples that exceeded this limit. On average, Aflasafe effectively kept Aflatoxin levels well below the U.S. acceptable limit contrary to sampling trends in previous analyses.”

    He   said  10 implementers  are   working with  more  than 4000 farmers this  year; 24 implementers  with more than 18,000 maize farmers next  year and 36 implementers with more than 36,000 maize farmers in 2016.

    He said  the  project   expects   80 tonness of aflasafe will be applied to an average of  8000 hectares of farmland this  year; 540 tonnes to an average of 54000 hectares of farmland in 2015 and 10800 tonnes of aflasafe to an average of 108000 hectares of land in 2016.  This year, Akande said  the  project  is  working  on  producing  29,000 tons of aflasafe treated maize.  As  multiplier  effect,  he  expects  490,000 tonnes of low-aflatoxin maize to  be produced over a four -year period by  36,000 small farmers.

    A group, Alliance for Green Revolution (AGRA) said  premature harvesting and poor storage techniques of grains are the main causes of the aflatoxin poisoning in maize.  AGRA has now teamed up with local cereals boards in an initiative dubbed ‘storage and post harvest management.’ The initiative educates farmers on handling grains before and after harvesting and advises on the right conditions to store them.

    The AGRA initiative will also sensitise farmers on gauging the right moisture content before harvesting their grains. “At harvest the grain’s moisture content shouldn’t exceed 13.5 percent,” the  organisation said.  However, most farmers unknowingly harvest early when the moisture content is over the 13.5 per cent mark or end up storing maize in damp environments.

     

  • Cut use of antibiotics in livestock, expert tells farmers

    The Dean Faculty of Agriculture, University of Ilorin, Prof Abiodun Adeloye, has called on farmers to reduce the antibiotics  given to their livestock.

    The advice follows the practice of giving substandard antibiotics to healthy livestock to force animals to put on weight faster.

    Speaking with The Nation, Adeloye said there was need to reduce the use of antibiotics in raising livestock to avoid major outbreaks of food-borne illness with resistance which were reported.

    Report also  said some people are falling sick from antibiotic-resistant infections, causing some deaths.

    He said livestock production is a key incubator of antibiotic resistance and that producers  of poultry and livestock  should commit them to the judicious use of medicines for the care and well-being of healthy animals.

    To this end, he said farmers would need to work with their veterinary doctors to fashion alternative strategies to keep their animals healthy.

    Supporting the global move to  phase out the use of some antibiotics in animals to curb the growing their resistance to human disease, Adeloye said drugs contribute to rise of untreatable bacteria in humans – though farmers say production would be ‘impossible’ without them.

    He noted that though between human and animal pathogens antibiotic resistance has not been  proven, there is a need  to take precautionary measures to ensure that antibiotics are only being used on sick animals.

    But farmers, who routinely add antibiotics to animal feed and water to avoid illness among livestock and boost growth rates believe  that if antibiotics for animals were banned, it would make production pretty much impossible. But it emerged that health authorities  do not know which antibiotics are being used in which animals and where the resistance problems  are.

    Meanwhile , the United  States   Food and Drug Administration has asked pharmaceutical firms to relabel their drugs to prevent them from being used in healthy animals.

    In the United States food supply, antibiotics are routinely fed to healthy livestock to enable them gain weight faster. As many as 23,000 Americans a year die from antibiotic-resistant infection.

    But it is unclear how much of the problem is related to meat. “Because all uses of antimicrobial drugs, in both humans and animals, contribute to the development of antimicrobial resistance, it is important to use these drugs only when medically necessary,” the Food and Drug Administration (FDA) said in a statement.

  • Livestock Feeds: Improving yields

    Livestock Feeds: Improving yields

    Livestock Feeds Plc recorded impressive performance in the immediate past year as the animal nutritional-products company optimized appreciable growth in sales to deliver substantial returns. The profit and loss accounts and the balance sheet underscored a well-rounded performance, which highlighted early gains of the company’s membership of the UAC of Nigeria (UACN) Group.

    Audited report and accounts of Livestock Feeds for the year ended December 31, 2013 showed that 12.5 per cent growth in sales magnified progressively into 18 per cent increase in gross profit, 28 per cent growth in profit before tax and 46 per cent increase in net profit after tax. The positive profit outlook of the company was strengthened by improved underlying profitability indices as well as considerable improvements in financing structure and liquidity. A lower financial leverage, better equity funding and larger working capital underpinned a major balance sheet restructuring, putting the company in better stead to further drive its profit and loss performance.

    However, Livestock Feeds remained substantially leveraged, especially for an agricultural sector that faces relatively more unpredictable variables. It also needs to further unlock its intrinsic value to justify its current share pricing.

     Financing structure

    Livestock Feeds’ paid up share capital increased by about 67 per cent from N600 million in 2012 to N1 billion in 2013. This implied an increase in number of issued and outstanding shares from 1.2 billion ordinary shares of 50 kobo each in 2012 to some 2.0 billion ordinary shares of 50 kobo each, representing additional 800 million ordinary shares of 50 kobo each. Shareholders’ funds jumped by 173 per cent from N633 million to N1.73 billion. Total assets rose by 77 per cent to N3.67 billion as against N2.07 billion. The assets base was driven by 94 per cent increase in current assets from N1.51 billion to N2.93 billion and 32 per cent growth in long-term assets from N560 million to N740 million. Total liabilities stood at N1.94 billion in 2013 as against N1.44 billion in 2012.

    The financing structure became stronger in 2013 with improved equity funding and financial leverage. The proportion of equity funds to total assets increased from 31 per cent in 2012 to 47 per cent in 2013. Debt-to-equity ratio improved to 50 per cent in 2013 compared with about 147 per cent in 2012. Long-term liabilities/total assets ratio stood at 53 per cent in 2013 as against about 70 per cent in 2012 while current liabilities/total assets ratio improved from 67 per cent to 52 per cent.

     Efficiency

     The performance outlook showed dual benefits of improved productivity and cost efficiency. The company optimized modest increase in average cost into substantial improvement in average productivity, resulting in wider margin for value creation. Total costs of business, excluding financing charges, reduced to 94.2 per cent of total sales in 2013 as against about 95 per cent in previous year. While average cost per staff increased from N1.34 million to N1.66 million, average contribution of each employee to pre-tax profit also trended upward from N2.15 million to N2.60 million.

    The company had increased its workforce marginally from 103 persons in 2012 to 109 persons in 2013. Aggregate staff cost meanwhile increased from N138.38 million to N180.94 million.

     Profitability

     Livestock Feeds recorded considerable improvement in profitability in 2013 with double digits growths in sales and the bottom-line. Livestock Feeds single business line is production and marketing of animal feeds, with operations in the four regions of the country-Aba, Ikeja, Benin and Kaduna. Total sales rose by 12.5 per cent from N5.43 billion in 2012 to N6.11 billion in 2013. The top-line growth was driven by increased sales across the four principal locations. Sales in Aba increased from N1.80 billion to N1.91 billion. Ikeja remained the largest sales point with its segmental turnover rising from N1.88 billion to N2.29 billion. Benin witnessed modest growth with N1.38 billion in 2013 as against N1.36 billion in 2012. Sales within the Kaduna division improved from N402.43 million to N536.83 million. Total cost of sales rose by about 12 per cent from N4.85 billion to N5.42 billion. Gross profit thus increased by 18 per cent to N690 million in 2013 as against N585 million in 2012. Marketing and distribution expenses rose from N185.6 million to N190.9 million while administrative expenses increased from N124.6 million to N146.3 million. Total operating expenses indicated marginal increase of 8.7 per cent at N337 million in 2013 as against N310 million in 2012. While interest and other incomes rose by 47 per cent from N86 million to N127 million, finance expenses increased by 41 per cent from N140 million to N196 million.

    Profit before tax rose by 28 per cent to N283 million in 2013 as against N221 million in 2012. Profit after tax grew by 46 per cent to N211 million compared with N144 million in previous year. Basic earnings per share remained almost flat at 12 kobo but net assets per share increased by 64 per cent from 53 kobo to 87 kobo. However, the company did not declare any dividend, deciding to plough all its net earnings into its operations.

    Besides, underlying profitability indices showed a largely positive outlook. Gross profit margin increased from 10.8 per cent to 11.3 per cent. Pre-tax profit margin also inched up from 4.1 per cent to 4.6 per cent. However, with the larger growths in assets and capital base, return on total assets dipped to 7.7 per cent as against 10.7 per cent. Return on equity also slipped from 22.8 per cent to 12.2 per cent.

     Liquidity

    The liquidity position of the company improved substantially during the period with better coverage for emerging liabilities and increased working capital relative to operations. Current ratio, which indicates the potential ability of the company to meet emerging liabilities, improved to 1.54 times in 2013 as against 1.09 times in 2012. The proportion of working capital to sales improved from 2.4 per cent to 16.9 per cent while debtors/creditors ratio stood at 55.5 per cent in 2013 as against 22.6 per cent in 2012.

     Governance and structures

    Incorporated as a limited liability company in March 1963, Livestock Feeds converted to a public limited liability company and was quoted on the Nigerian Stock Exchange (NSE) in 1978. UACN completed the acquisition of majority equity stake in Livestock Feeds in 2013, thus bringing the company in as a subsidiary of the conglomerate. Current shareholding analysis showed that UACN holds 51.01 per cent equity stake. First Capital Trust Limited holds the second largest equity stake of 8.02 per cent while Cashcraft Asset Management Limited holds the third largest stake with 5.06 per cent. Sundry minority shareholders hold the balance of 35.9 per cent equity stake. The change in shareholding structure in 2013 led to significant reconstitution of the board of directors. Mr Larry Ettah, the group managing director of UACN, was appointed the chairman of Livestock Feeds in 2013 while Mrs Modupe Asanmo remained the managing director. Three other non-executive directors were appointed while two directors resigned. On the basis of available information, Livestock Feeds complied with the extant code of corporate governance and best practices.

     Analyst’s opinion

     The performance of the company shows a reassuring outlook. With growing top-line and improving bottom-line, Livestock Feeds appears to be on a promising growth trajectory, which could become more prominent in the years ahead. The livestock feed industry is estimated to have significant headroom for growth. With ongoing initiatives to boost its revenue and diversify its earnings, Livestock Feeds appears on a steady growth path. It is launching its own fish feed while the installation of the 12 metric tonnes per hour feed milling machine in its Ikeja Mill is planned for completion this year. The synergies from the membership of UACN-including shared services such as warehousing, haulage and finances, would further impact the performance going forward.

     

     

     

  • Livestock farmers confront rising costs of feed

    Rising feed demand has pushed up costs of livestock production forcing producers to explore new feed ingredients, the Vice-President, Association of Small Business Owners (ASBON),Mr. Stephen Oladipupo has said.

    He said livestock farmers are trying to substitute commercial feed for cheap alternatives and forages.

    According to him, growth in feed consumption has increases and livestock farms transition to a more concentrated mode of operations that uses commercial feeds more intensively.

    He said combined use of corn and soy meal for animal feed has   risen as animals consume a variety of grains, protein meals, bran, and hulls  and growing use of these commodities is pushing livestock producers sorely on imports of feed concentrates.

    On the issue of high cost of feed, he said the challenge is low production of soya beans  used alongside the excess maize being produced in the country .

    He described high cost of poultry feed as the main challenge facing the local industry.

    The livestock sector, Oladipupo,   said was under pressure from rising costs, disease, environmental regulations and resource constraints.

    He attributed the situation to the high cost of production and high cost of energy.

    He called on the Federal Government to make effort to boost local production and cut down the country’s importation bill.

    Oladipupo urged the government to ensure that raw materials and drugs imported for the poultry and livestock industry met standards.

    He called on the Federal Government to provide maximum support for the poultry business as it currently cannot satisfy the volume of demand for poultry products in the entire country.

    According to him, the sector needs transformation, but  the  internal and  external reasons that its industrial potential has not been reached can be attributed mainly to the failureof policies.