A member representing Illorin East/South Federal Constituency in the green chambers, Dr Abubakar Amuda-Kannike has called for a constructive approach towards addressing challenges facing the poultry industry to save jobs and promote economic growth.
Amuda-Kannike , a former Kwara state Commissioner for Works and Transport said the poultry industry is the largest segment of the agricultural sector, contributing more to the nation’s gross domestic product and providing employment for many Nigerians throughout its value chain and related industries.
Addressing the National Poultry Show in Abeokuta, Ogun State, Amuda-Kannike said the industry supports many businesses and provides a strong platform for rural development, as well as the government’s zero-hunger goals, as it is the main supplier of a protein diet.
The inability of the industry to meet growing national demand, he noted, reflected the need for more investment to improve efficiencies and competitively.
According to him, the value chain is filled with small scale players and a few large companies.
This, he explained is not helping the industry to explore the benefits associated with the economies of large-scale production, as well as integrated supply chains that reduce production costs, ensure high throughput levels and diversify products to improve risk management.
Though the number of broilers slaughtered and poultry meat produced have increased in recent years, he noted that Nigeria still does not produce sufficient quantities to satisfy demand, with the shortfall addressed through imports. Poultry imports, particularly chicken, have posed a major problem for the domestic industry, especially in recent years and particularly for smaller producers.
Technically, he said broiler growers are efficient compared with international producers. But when feed costs are introduced into the equation, he said the growers are generally found to be less competitive. As a result, within a global context, he said the economic efficiency of local producers does not compare as well as their technical efficiency, largely due to higher production costs.
To this end, he said the industry is struggling to remain competitive.
According to him, the industry faces several significant challenges that have hindered its competitiveness and growth potential. The principal ones pertain to rising feed costs, rising electricity tariffs and access to reliable supply, access to finance and markets exchange rate fluctuations and, among others.
Considering its pivotal role in the economy, particularly employment and food security, he said the industry’s long-term sustainability needs to be prioritised.
He said it is vital to improve the competitiveness of various segments of the value chain, especially those aimed at lowering feed costs.
Strong emphasis, he noted, must also be placed on industry transformation to enable producers and processors attain economies of scale, gain market access and achieve sustainable competitiveness.
A member representing Illorin East/South Federal Constituency in the green chambers, Dr Abubakar Amuda –Kannike ,says revamping the poultry industry will save jobs and promote economic growth.
Dr Amuda-Kannike was addressing the National Poultry Show in Abeokuta, Ogun State .
He said poultry industry is the largest segment of the agricultural sector, contributing more to the nation’s gross domestic product and providing employment for many Nigerians throughout its value chain and related industries.
Amuda –Kannike, a former Commissioner for Works in Kwara State, said the industry supports many businesses and provides a strong platform for rural development, as well as the government’s zero-hunger goals.
The inability of the industry to meet growing national demand, he noted, reflected the need for more investment to improve efficiencies.
Currently, he observed that the value chain is filled with more small scale players and a few large companies,thereby hampering the industry from exploring the benefits associated with the economies of large-scale production.
Though the number of broilers slaughtered and poultry meat produced have increased in recent years, he noted that Nigeria still does not produce sufficient quantities to satisfy demand, with the shortfall addressed through imports.
Poultry imports, particularly chicken,he noted,has posed a major problem for the domestic industry, especially smaller producers.
According to him, the industry faces several significant challenges that have hindered its competitiveness and growth potential. The principal ones pertain to rising feed costs, rising electricity tariffs and access to reliable supply, access to finance and markets exchange rate fluctuations and, among others. Within a global context, he said local producers do not compare with their international counterparts due to low level of technical efficiency, and relative higher production costs.
He said it is vital to improve the competitiveness of various segments of the value chain, especially those aimed at lowering feed costs,adding that industrial transformation will enable producers and processors attain economies of scale, gain market access and achieve sustainable competitiveness.
Local poultry producers are struggling to compete with smuggled cheap chicken, Chairman,Poutry Association of Nigeria (PAN), Oyo State chapter, Mr Banji Akanji, has said.
He spoke at a workshop by state PAN at the Civic Centre, Ibadan.
He urged the the government to ‘end chicken meat import, saying it is undermining local production and could lead to the collapse of the local poultry sector.
He condemned “the dumping of cheap imported poultry products, calling for steps to be taken to ‘create fair competition for the local poultry industry”.
Though they are cheap, Akanji said, smuggled chicken had excessive antibiotic residue and chemicals that are unhealthy.
He said solving the problem required a three-pronged approach: diplomatic channels, international laws and providing security at the borders.
He asked the government to enforce the regulations to deter smuggling. He challenged the association’s members to embrace mass production of broilers, saying this would bring benefits of economy of scale, help to meet local demand for poultry products.
Akanji praised the Nigeria Customs Service men for intercepting and destroying smuggled poultry products in the state recently, saying it would send a strong signal to smugglers that smuggling would not be tolerated in any form.
Permanent Secretary, Ministry of Agriculture, Mr Gabriel Kehinde, praised the Customs for effecting the ban on some poultry products and measures being put in place by PAN to rev up productivity, saying the government had been sensitising the public against patronising smuggled poultry products.
Chairman, Nigerian Veterinary Medical Association of Nigerian (NVMA) in the state, Mr Ibrahim Adekunle, lauded the efforts of the association for its efforts to feed the country with poultry products as one of the most affordable sources of protein to Nigerians.
A guest speakers at the workshop, Dr Jimoh Famoyin, said poultry farmers should ensure that they feed the public with hygienic and fresh poultry products, for all members of the public must be food safety conscious.
Representative, National Agency for Food, Drug Administration and Control (NAFDAC), Mrs O. Dosumu, said procedures for approval of poultry processing and packaging centres in the country.
Among the registration procedures, she said, are certificate of incorporation; labeling information, including name of products, pack size, expiry date, manufacturing date, batch number, factory location; quality control mechanism; distribution chain and professional production manager. Comptroller in charge of Oyo and Osun command, Mr M. S. Bawa, described smuggling as an act of economic terrorism aimed at killing the Nigerian economy by enriching cartels behind the illicit behaviour.
Poultry farmers have decried the importation of frozen poultry products into Nigeria and are advocating a stop to the trend.
The Chairman, Poultry Association of Nigeria (PAN), Plateau chapter, Mr John Dasar, expressed concern at a sensitisation workshop organised for stakeholders. Dasar explained that the health hazard of consuming such imported poultry products was high.
The workshop themed: ‘’Economic and Health Implications of Smuggled Poultry Products’’, was jointly organised by PAN, National Agency for Food and Drug Administration and Control (NAFDAC) and the Nigeria Customs Service (NCS).
The chairman said the rationale behind the workshop was to sensitise the public to consume only wholesome poultry products reared locally in Nigeria.Dasar said the major bane of the poultry industry was the unwholesome smuggling of frozen poultry products despite the ban by the Federal Government.
According to him, the total fight against this illegal activity would not only make the industry experience rapid growth, but would create more jobs for the teeming youths.
‘’The importation of these poultry products into Nigeria is really killing our business and it is also a major drawback for the industry.If we are able to totally stop the consumption of imported poultry products, the local industry, within a short time, will thrive. It will create a lot of jobs for the unemployed.
‘’So, we will not sit down and allow things go wrong; we stand firmly to ensure that this ugly activity is nipped in the bud,’’ he said.
In a keynote address, NAFDAC’s Director General, Dr Paul Orhi, represented by Mrs Josephine Dayilim, said the consumption of imported poultry products has high health implications. She said the buying of smuggled products does not only encourage economic sabotage, but damages the human system, hence warned the public to desist from consuming it.
Commending the chapter for organising the sensitisation programme, PAN national president, Mr OnaloAbbah said the chapter was the first in the North-Central zone to replicate the campaign against the importation of smuggled products.
The president said the poultry industry in Nigeria was doing well, as it was the largest producer of eggs, but however, decried the activity of smugglers.
‘’We must collectively fight this menace, package our local products with some sense of decency, otherwise we will continue to go down the drain,’’ he urged.
Abbah further charged poultry farmers to take bio-security measures very seriously so as to save the industry from total collapse.
In a goodwill message, Co-Chairman, Plateau House Committee on Agriculture, Peter Ibrahim, assured the farmers that the Assembly would enact laws that would enable poultry business remain viable in the state.
The Federal Government may suspend the payment of compensation to poultry farmers whose farms were infected by Avian Influenza (AI) pending when substantial progress on bio-security and other containment measures are put in place by the Poultry Association of Nigeria (PAN) and state veterinary services.
The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Arc. Sonny Echono who spoke at a meeting held with stakeholders in the poultry industry at the Ministry’s Headquarters in Abuja, said about N380million had already been paid to about 138 farmers, while N643million has been totally committed as compensation to 246 poultry farmers. He said the sum of N476million is still required for the payment of compensation to the remaining 250 poultry farmers.
A statement endorsed by the Director of Information, Tony Ohaeri expalined that the Federal Government has noted with concern the unencounraging disposition of the PAN in the states in assisting the state officials in all the efforts aimed at curtailing the spread of the disease. He said such co-operation was needed in the creation of adequate sensitisation and awareness among the poultry farmers.
Echono strongly emphasised the need for sensitisation on the control of AI in birds, proper adherence to on farm bio-security, registration of farms with State Directorate of Veterinary Services, non-transportation of birds indiscriminately without the authorisation of the state veterinary services. He insited that poultry farmers must adhere to government policy of non-vaccination against the disease and enforcing the restocking policy on affected farms.
The Permanent Secretary said the ministry in collaboration with USAID and Food and Agricultural Organisation (FAO) had conducted series of trainings and capacity building workshops on AI for federal, state and local government officials, state extension workers, private veterinarians, surveillance agents as well as poultry farmers and PAN officials.
Echono solicited the support of stakeholders in the renewed efforts aimed at controlling the spread of the AI virus, saying the role played by each stakeholders in the industry in controlling the disease becomes very critical to the overall success in the containment effort. He therefore called for an effective and efficient state veterinary service and enforcement of mandatory regulatory functions to contain Bird Flu outbreak and other zoonotic diseases in the country.
Echono attributed the new outbreaks of between July and September in Lagos, Oyo, Ogun, Enugu, Abia, Rivers and FCT to non-compliance to bio-security measures in farms, disregard to public policy on the citing of poultry farms and other enforcement protocols which he said were expected to be implemented by the state veterinary services.
He said the ministry plans to come up with modalities that will ensure that the burden of payment is borne by both the federal, state and local government areas and the farmers.
He advised poultry farmers to safeguard their investment through the adoption of insurance policy as a way forward since Federal Government now sees agriculture as a business.
The answer to the above question is not farfetched when you look around you. The cold stores that sell imported frozen poultry in your neighbourhood, are they still in business?
Those known warehouses that house cold rooms where both market women/men and other people make bulk purchases of imported poultry, have they been shut down or run out of business?
Do you encounter queues in front of cold stores selling locally processed poultry and for those who eat out, what kind of poultry meat are you served, not just in fast food joints but in restaurants?
Exactly on the 15th of June this year, we were invited to the National Agency for Food Drug and Administration Control (NAFDAC), Lagos for a press conference/presentation of the study on prevalence, quality and acceptance of frozen poultry meat in major cities in Nigeria.
According to the study conducted by Professor OlumideTewe and his colleagues, consumption of smuggled frozen poultry meat, spells doom for the health of consumers.
Consequently, the NAFDAC Director General, Dr. Paul Orhii, vowed to deter consumers from the unhealthy meat by enforcing the already placed ban on the importation of frozen poultry.
Less than a week after the press conference in Lagos, a workshop on the same matter was held in Abuja where all the stakeholders spoke at length, sensitising the public on the attendant dangers of the consumption and the negative effects on the economy, etcetera.
The media was awash with the news as poultry, especially the imported frozen one, is about the second largest consumed meat in the country.
However at the press conference in Lagos, I recall that though we appreciated government’s efforts in trying to shield consumers from dangers, we still expressed fears that the fight may not succeed if there are no alternatives, no serious efforts to increase local production. Some of the journalists pointed out that the fight to enforce the ban without enough indigenous poultry meat will only, more or less, increase the price of the imported poultry, thereby placing more demands on the average consumer who is already weighed down with financial pressure.
Dr. Ayoola Oduntan, the President, Poultry Association of Nigeria (PAN), had disclosed in an interview that while the local demand for poultry is about two million metric tons annually, Nigerian farmers, though with the capacity of producing 700-1million, metric tons, were only producing 300,000 metric tons leaving a wide gap of more than 1.7million metric tons.
“Out of this figure, smuggled poultry accounts for 1.2 million metric tons annually,’’ noted Dr. Oduntan.
Already the NAFDAC DG had said the agency was going to work closely with the Nigerian Customs to enforce the ban on imported and smuggled poultry. As part of efforts to ensure that the ban is enforced, a special anti-smuggling operation, ‘Operation Hawk Descend’ was launched in Seme precisely on July 7th by the former Comptroller General of Customs, Alhaji, Abdullahi Dikko.
During the launch, the former Customs helmsman assured Nigerians that within three months of the campaign, which would target the south western axis, importation of smuggled poultry would be curtailed.
“I can assure you that with this operation, smuggled poultry products will be stopped within the next few weeks but we are giving it three months so that we can sustain it on regular basis,” said Abdullahi who was represented by Deputy Comptroller General, Enforcement, Investigation and Inspection, Musa Tahir.
No doubt like the former Comptroller General promised, in the first week of the operation, NCS seized a total of 1,803 cartoons of banned poultry products estimated to be worth over N12million. This, according to NCS, was seized mainly in the south western axis of the Nigerian-Benin border.
Most of the seizures were made when the commercial vehicles conveying them into the country were apprehended by customs officers.
By the second week of the onslaught against the smugglers, 6,206 cartoons of poultry valued at N21.8 million was seized and destroyed. In the 3rd week, 5,915 cartoons worth N28.6million were destroyed and by the 4th week, the NCS again seized up to 5,472 cartoons of poultry. By now the smugglers of the poultry have begun to count their losses as millions of naira worth of smuggled imported frozen poultry were repeatedly being seized.
In the fifth week of the operation, the NCS recorded another seizure of 13,960 cartoons of frozen imported poultry valued at N45.5million. All of these seizures were made by customs officers at Badagry Creeks, Seme axis, Idiroko axis of Ogun State, Agbeji/Ife axis of Osun State.
The seemingly successful exercise even provoked commendations from PAN. The Director General of the Association, Onallo Akpan, said that the leadership appreciates the excellent performance through various acts of onslaught, arrests and confiscation of smuggled poultry products into the country.
“This is very unprecedented, we can boldly say that Operation Hawk Descend is a highly successful exercise,” he, however, added albeit prematurely.
At this period, the prices of the product went sharply up. Not only did it go up, some retailers of the locally produced ones also decided to take advantage of the situation to increase their own price. A cartoon of 10kg of the imported frozen chicken and turkey previously sold for N5,500/N6,000 went up to N9,000/N10,000. A kg of the locally processed one sold for N700 went up to N1,200. The live fowls also attracted appreciable increase in price.
However, all these only lasted for a short while. The little head way being made by NCS could not be sustained. What is the reality on ground now? Instead of curbing the activities of the smugglers, it seems that they only succeeded in driving the price of both the imported and locally produced poultry up from what it was before the launch of Operation Hawk Descend.
Barely three months after the launch of Operation Hawk Descend with all the media hype and noise, investigation by Consumer Watch has revealed that the smugglers are no longer encountering resistance from government officials and as such retailers are buying the smuggled poultry just like they were doing before the onslaught.
The price has gone back to the normal price. As at the time of filing this report, importers or should we say smugglers were selling a cartoon of 10kg chicken for between N5,800-N6,300 while retailers then sell at N700 per kilo. The price of turkey which went viral at the early days of the onslaught has also come down to N6500 per a cartoon of 10kg. The price of the locally processed ones which also went up because of the increased demand has also come down from N1200 per kg to N800-N850 per kg.
Investigations by Consumer Watch showed that the markets are filled again with the smuggled poultry which of course is being served in restaurants.
Interview with some consumers revealed that a majority of them preferred the locally grown free range and semi free range poultry which they said is more succulent and tasty but far more expensive. Even the locally processed broilers, old layers are more expensive than the smuggled ones. Besides, while the smuggled ones are retailed almost everywhere, the locally processed ones are not too easy to come by. In some cases consumers will have to take transport to buy it, making the cost even more expensive.
The way forward? For government to successfully wage this way against the smuggling of poultry, like the Chairman, Agriculture and Non- Oil Group, Lagos Chambers of Commerce and Industry (LCCI), Wale Oyekoya, said, “federal government has to enhance the development of the poultry sub-sector to meet the nation’s consumption needs.”
According to him, government should do more to encourage the local farmers than just enforce ban on poultry products.
Nigeria has banned frozen chicken import. The move has provided local producers with an opportunity to gain a bigger market share, but it has also presented stakeholders with some challenges, DANIEL ESSIET writes.
The ban on frozen chicken imports would have been a boom to local producers, allowing them to enlarge their market share and boost sales. But, so far, the policy has proven successful only in boosting domestic output. The problem is partly the mismatch between the high demand for poultry products, the productive capacity of the local industry and the harsh operating realities.
Indeed, the mood in the industry is lukewarm. Smuggling continues; high feed costs and red tape threaten growth. The sector that could have turned out to be a huge asset for the growth of the national economy remains a todler.
While the international community may see Nigeria as a fading import market for chicken, stakeholders see the inability of the domestic poultry industry to respond adequately to expanding demand for poultry products, as opening up a market for smuggling.Nigeria is losing about $2.7billion (about N399.4billion) yearly in revenue to smuggling of poultry products, the Poultry Association of Nigeria, has said.
“The supply of corn is not adequate to meet expanding feed use, and restrictions on corn imports could combine to constrain growth in both the poultry and egg industries, raising production costs and consumer prices and slowing consumption.”
The President of the association, Dr. Ayoola Oduntan, said at the Nigeria Poultry Summit that local production of chicken has fallen short of the demand for the product, thereby creating an avenue for smuggling.
According to Oduntan, while the local demand for frozen chicken is above two million metric tonnes yearly, Nigerian farmers produce 300,000 metric tonnes, leaving a wide gap of more than 1.7 million metric tonnes.”Out of this figure, smuggled chicken accounts for 1.2 million metric tonnes annually,” he said.
The industry still appears unprotected, a state of affairs that is being exploited by smugglers. Oduntan said smuggled chicken and rising costs of production are forcing local poultry producers to shed a bigger chunk of the chicken industry. The local poultry industry, experts maintained, has seen the demise of some of smaller poultry producers. In the last couple of years, some of small producers have either gone under, or scaled down production.
According to the PAN President, though the ban on import is supposed to boost production, yields are lower, and the viability of poultry is reduced by its high production costs and increased chicken imports.
To this end, Oduntan said local producers must be committed to increasing output and supplying fresh chicken to limit the import of chicken. While local producers are making efforts to produce more chicken, he said the industry is bewildered by the negative impacts of higher input costs, especially maize, soya, power, labour and fuel.
Feed costs
The high price of feed raw materials is an issue everywhere. Since the high feed costs are felt throughout the industry, operators have found the business less competitive. Feed is the single biggest input cost, making up 60 to 70 per cent of total input costs. Inputs and costs have presented the poultry industry with huge challenges, he said, highlighting the fluctuations in feed ingredients prices.
“Many farmers have complained that the industry doesn’t have the capacity to facilitate smooth movement of poultry products from the farms to supply points. While there are marginal investment in infrastructure, not so much have been recorded to make specialised chick delivery vehicles commonplace”
For the Vice- President (Agriculture), Association of Small Business Owners of Nigeria (ASBON), Mr. Stephen Oludipupo, the sector is not moving forward as it battles soaring feed costs and rising electricity bills. He believes if poultry and egg production are sustained, growth in demand for corn and soybean meal is likely to outpace gains in domestic production.
Farmers like him also complained that the supply of corn is not adequate to meet expanding feed use, and restrictions on corn imports could combine to constrain growth in both the poultry and egg industries, raising production costs and consumer prices, thereby slowing consumption. The same thing is said about soybean meal, which the industry cannot guarantee local surpluses and ready availability.
Currently, the poultry industry accounts for about a third of local maize consumption and almost all the soya consumption in the country, its sustainability and future development are also in danger. This scenario represents an “industry in distress” as acknowledged by experts who are considering measures that help producers to remain in business.
The concern is that Nigeria is on the verge of becoming a major importer of soymeal, thanks to the country’s surging poultry production, boosting feed demand. The layer industry is also expanding rapidly as it is able to provide a relatively cheap protein source compared to other sources of protein. However, poultry feed manufacturers are also finding a ready growth market in livestock, for which production of suitable rations is increasing at an accelerated pace to meet the demand .This has resulted in a shift in demand of soymeal by feed millers from the traditional poultry farmers.
The increased demand for soymeal is driving feed mills beyond their typical origin and supplies also suffer from consistency in quality.
Already, like the Chairman,Lagos Chairman,Dr Dotun Agbojo once disclosed, local operators have demanded permission to import soybean meal, to help them deal with the impending competition of cheaper smuggled chicken. Producers think this will help the poultry industry to get cheaper raw material and reduce its cost of production, which is three times the cost of production of imported ones.
He said corn supply was important because the commodity was the main material used in poultry feed, which currently consumes 90 percent of national corn production.
However, as he said, it is not only feed prices that present challenges to producers. The sector now faces a number of issues and difficulties including water, food, electricity and other major problems. As a result, the economic efficiency of local producers does not compare as well as their technical efficiency, largely due to higher production costs. Therefore, the industry is struggling to remain competitive. Many farmers have abandoned commercial poultry production because it was uncompetitive, and instead focus on other things. In addition to the challenges posed by the various pathogenic diseases, the farmers also face the problem for low capital. Unfortunately, lack of financial support and incentive packages for players in the industry has, over the years, led to the gradual collapse of the industry and the retrenchment of a large number of employees in it. Due to the high-risk nature of poultry farming, many commercial banks shied away from giving loans to operators in the industry.
Foreign direct investment (FDI)
Foreign direct investment (FDI) has, so far, not been a major factor in the development of poultry sector. But to watchers the nation’s competitive, and potentially large industry offers investment opportunities in input activities, such as breeding, medicines, feed, and equipment, as well as vertical integration and processing. While the country permits FDI in these activities, investments are constrained by market and policy uncertainty, poor power and transport infrastructure, and high taxes on processed food.
Capital and infrastructure for future production is a concern. Very little investment in infrastructure has been made in the last 10 years because of poor returns, restricted access to credit because of the economic situation, the difficulties in obtaining planning permission and the new requirements for environmental permits. Currently, the poultry business is still kept by smallholders.
The poultry production system is a mix of family businesses and commercial operations, from the small- to large-scale with varying degrees of modern technology. This has clear implications for rising demand for poultry meat.
Bird flu
There have been four more outbreaks of highly pathogenic avian influenza in Nigeria. The outbreaks were of the H5N1 subtype, and all four involved layers of different ages between 20 and 60 weeks.
“Except there is a development plan for the poultry sector to boost production of chickens and eggs, the import ban on frozen chicken meat may not achieve its goal”
There were 668 deaths from the disease out of a susceptible population of 3600. The remaining birds were destroyed to prevent the disease spreading. The disease report to the World Organisation of Animal Health (OIE) commented that the one farm and three backyard operations involved displayed poor biosecurity. Help from the side of the government and other investment institutions, is all that is needed by them for ensuring health growth and development conditions for the domesticated animals.
Power
Meanwhile, as far as poultry farmers are concerned, a more reliable supply of electricity is needed if food security is to be truly enhanced. Some frozen food traders in Ijora-Olopa, Lagos, lost approximately N10 million worth of product to spoilage in late May, following a electric grid blackout compounded by a scarcity of petrol to power backup generators.
Inefficient supply chain
A major concern is the inefficient supply chain in handling poultry production and distribution is another of those sob stories which still poses a big question mark on management skills.
Oduntan said cold chains , a crucial part of the supply chain infrastructure in poultry production is not sufficient to support massive production. His concern is that not only is the industry lacking in the issue of storage facilities but other vehicles such as refrigerated vehicles. For him, the cold chain is essential. This is because it is the conduit for the flow of poultry products.
He is not alone sharing this concern. Other stakeholders believe the cold chain segment plays a critical role in the poultry supply chain. Most of the domestic poultry business is in chilled product, but freezing is necessary for longer journeys. Stakeholders believe the industry operators of cold chain transportation need to pay close attention to market trends and best practices as continuous temperature monitoring is also of growing importance to the industry. Many farmers have complained that the industry doesn’t have the capacity to facilitate smooth movement of poultry products from the farms to supply points. While there are marginal investment in infrastructure, not so much have been recorded to make specialised chick delivery vehicles commonplace. These differences in infrastructure and logistics performance translate into real costs for supply chains. To overcome these constraints, government intervention is required, for instance, to build infrastructure such as roads, which need to be improved to allow heavy feed trucks and chicken transporters move around easily in rural areas.
Day-old chicks and broiler producers
The industry’s challenges also include lack of large quantities of day-old chicks and broiler producers or even farmers who could move into poultry. Though the number of broilers slaughtered and poultry meat produced have increased, the industry does not produce sufficient quantities to satisfy demand, with the shortfall addressed through imports.
Opportunities for sector expansion
There are various opportunities available to commercial poultry producers, and chief among these are production of further processed products, expansion of broiler breeding facilities to meet hatching egg requirements.As foreign nationals are not involved in production, partnerships between current medium-size producers and foreign companies with access to capital and technology are the way forward. There are good opportunities for the poultry industry, which Oduntan summarised as the growing demand for foods and those produced to higher welfare standards, as well as cost savings.
The business environment
Watchers have expressed concern that the once flourishing small-scale poultry industry has over the past two decades undergone a severe deterioration as a result of fortunes that have diverted the industry from near self-sufficiency to a net importer of poultry products. The market has followed a steep and uncontrolled influx of cheap poultry meat from subsidised poultry producers from advanced countries. A multiplicity of factors have accounted for the decline and mortalities of the domestic poultry industry. These include unfair competition from subsidised smuggled poultry from advanced countries, unfavourable and indifferent government’s policy direction, escalating costs of production, inefficient methods of production, lack of funds and credit, inadequate knowledge in poultry management, lack of information needs on the part of small-scale poultry farmers, inadequate access to market, lack of processing facilities, and high rates of perishability. The business environment for the poultry industry has been challenging in recent years. For Oladipupo, if the challenges are overcome and poultry production and industry are enhanced, the industry has the potential of employing more people and thereby helping to reduce the problem of unemployment in the country.
Watchers believe if Nigeria creates a more friendly business environment, the poultry industry will grow and attract more investment.
Technical training and assistance for farmers
More specifically, poultry producers face multiple challenges such as inefficient feeding practices and low quality of baby chickens-the two key inputs that together represent a large percent of their costs.
Another issue is disease management, which are critical to the sustainability of the industry.
To address a lot of issues, stakeholders canvassed training programmes to provide awareness to the famers on various diseases, health conditions, strategies and techniques to ensure the quality of poultry products and for the better health of the chickens, ducks and other domesticated animals.
Training and mentoring on poultry production and business are also needed. Small poultry farmers need the services of specialist extension officers who are continually assessed and up-skilled. Gaining market access is a common problem. The poultry sector has lost a lot in profits over the years. This loss is primarily due to the fact that local SMEs lack formal training on farm management and struggle to stay profitable.
Prospects for change
The outlook for the future is unclear. The plight of the poultry industry comes to the fore with regular cries for help from the industry, followed by regular promises from the government and answered with regular accusations of insufficient government support. The solution lies in the hands of the government.The other issue is that watchers are not anticipating any major industry investments in the short-term, given the country’s economic situation. A lot of farms are facing challenges due to limited access to bank credit and operating funds. For farmers, food security will be put at risk if the chicken business is not well funded. The one thing that might change this picture again could be future developments. To observers, except there is a development plan for the poultry sector to boost production of chickens and eggs, the import ban on frozen chicken meat may not achieve its goal. Oladipupo urged the government to provide incentives for poultry farmers, such as support for those who import poultry feed and other inputs, so that those items can be obtained at affordable prices. He wants commercial banks encouraged to give favourable responses to the funding of the poultry industry by devising innovative products to meet the needs of poultry farmers. For him, there is a compelling need for such interventions to restore the vibrancy of the poultry industry and create jobs, which will also help realise the government’s dream of reducing the rate of unemployment. There is need to work with Small and Medium Enterprises (SMEs) and farmers in the poultry sector to strengthen their technical skills, increase profitability, and expand access to markets. The government needs to build the capacity of local poultry companies and poultry farmers, address industry-wide challenges, such as lack of veterinarian skills and bio-security standards, low production efficiency, and limited farm management skills.
For sure, the ban calls for further action and reaction. On the whole , producers in the poultry industry are welcoming a government ban on poultry products imports. The ban was imposed following ongoing concerns about potential health threats.Farmers say, the ban will boost business for local poultry producers by giving them an increased foothold in the local market.Poultry farmers had been advocating for a ban to protect the local industry . They say the ban will support hard working small holder farmers. They also say the ban is good news for small and medium enterprises and will provide more job opportunities in the community. They said the ban is a step forward in the right direction towards improving policies that will protect local produce and increase trade
It has been lamentations and cries of woe from sellers and consumers of imported frozen poultry in the country following government’s clampdown on the smugglers of the outlawed products. Findings conducted by our correspondents revealed that poultry products, which used to be in abundant supply in Lagos and adjoining states, have become unusually scarce and expensive on account of the war that Customs officials are waging against their smugglers, raising fears in many quarters that the products could soon get beyond the reach of the poor.
The imported products, which are mostly smuggled into the country, are placed on the import prohibition list of the Nigeria Customs Service (NCS). Their consumption had been severely criticised by concerned health experts who claimed that formalin, a substance used in preserving dead bodies, was being used to keep them fresh.
If that indeed is the case, many innocent lives might have been saved from possible outbreak of lethal illnesses that could have resulted from the consumption of such products, following the recall of close to 2 million pounds worth of toxic frozen chicken and allied products by Aspen Foods, one of America’s leading producers of the products. The recalled products were suspected to have been contaminated with salmonella.
Salmonella is a food-borne infection usually caused by consumption of contaminated foods. It is a bacterium that lives in the intestines of humans and animals. The infection causes gastrointestinal symptoms, including diarrhea, abdominal pain, nausea and vomiting. The symptoms develop between 12 and 72 hours and lasts between four and seven days.
The United States Department of Agriculture (USDA) Food Safety and Inspection Services announced that the recall came after the USDA received reports of three people in Minnesota who became sick from mid-April to l ate June after eating Aspen products.
Yahoo Health reported that the recall by Aspen Foods came few days after a near-identical recall by Barber Foods, another leading American company, of more than 1.7 million pounds of similar products. The recall by Barber Foods reportedly occurred after the USDA received reports that people in Minnesota and Wisconsin became sick during the same period after eating Barber products.
Many consumers of poultry products in the country are however not perturbed by the aforementioned dangers. Rather than celebrate the ban, they are lamenting that it would deny them the chance of relishing the products.
Adurayemi Ositelu, a youth corps member is unhappy with the fact that the scarcity of turkey, a delicacy she cherishes a lot, has led to a rise in its price.
Ositelu said: “I could not even get Turkey to buy when I went to the market last week. The price has risen outrageously. This has left those of us who like it to make do with alternatives from which we can’t derive the same amount of satisfaction.
“The development is also not good for the masses because some of the marketers are already out of business. They said it is harmful, but if you cook it well, the bacteria would be killed in the process. It is a punishment when what you enjoy eating is taken away from you.”
“As a consumer, I believe that choice is paramount. So I believe that government should allow us make our choices and not treat us like babies who do not know what is right or wrong.
Heaps of smuggled poultry products seized by officers of Western Marine Command
“The ban on the importation of frozen turkey and chicken will limit the choice of consumers. What I expected the authorities to do is to create awareness about the harmful effects but leave us to make our decision. Taking it out of our reach without options is like a cruel sanction. I don’t like it at all.”
Another consumer, who gave her name as Ngozi, described the ban as anti-masses. She believes it is a ploy by the rich to prevent the poor from enjoying certain meals they see as exclusively theirs.
Ngozi said: “Before now, the consumption of chicken and turkey was strictly enjoyed by the rich. But all that changed since we had some kind hearted people importing these products and selling them to the poor at affordable prices.
“Without being told, I know it is the handiwork of the rich. They want to use the opportunity to engage in poultry business and sell at cut-throat prices to the masses. They did the same thing in the area of education and made it difficult for the masses to get qualitative education.
“Meat is very expensive. If chicken and turkey are taken away from the reach of the masses, what would we depend on as meat?”
Retailers of poultry products are not left out of the outrage. They say the move is tantamount to depriving them of their means of livelihood.
One of them, Ceaser Ituah, said: “The development is affecting our sales. The companies supplying frozen chicken and turkey in Nigeria cannot meet up with the population. In fact, they can’t even cover Mushin alone not to talk of the whole of Lagos.
“They can ban other imported frozen foods but allow us to sell chicken and turkey. It is not everybody that eats red meat.
“Right now, meat sellers in parts of the state are fighting. If this persists, what do you want the people to fall back on? The likes of Zartech and Obasanjo farms are incapable of producing enough meat for the people.
“We have been eating these frozen products for more than 10 years and we did not die. If indeed, the chicken and turkey are contaminated, the effects would have shown within a year or two. It is what is inside that kills; not what you eat.
“My advice to the government is that they should open the boarders because our customers—the masses—are complaining. A carton of chicken, which used to sell for N6,500 is now N10, 000. Turkey has moved from N8, 000 to N11, 000. Things have changed and the consumers are complaining bitterly.”
Another retailer, who identified himself as Michael Bassey, opined that banning the importation of chicken and turkey is a negative development.
“It has affected our sales and our customers are complaining bitterly,” he said.
“A kilogramme of turkey which used to sell for N850 is now N1,200. Nigeria is not a country that can produce everything it needs, so we still have to rely on importation.
“They said the chemicals used in preserving them are bad, but we have been eating these products for years and nothing has happened.
“The high price of the dollar is already affecting the economy and now they are closing the borders. Are they telling us to steal?”
It is however a different tune from local poultry farmers who see the ban as a welcome development. Andrew Adedeji, a poultry farmer based in Ibadan, the Oyo State, said: “I am happy with the new policy because it will help to promote our own agriculture and enhance the economy of the nation by opening doors for indigenous farmers. It will provide us the opportunity to sell our products and this will boost our income and generate more revenue for the government.
“I am sure it will also help to create unemployment as some graduates who are without jobs will now be forced to look into birds farming as a viable source of income. It will also help to reduce health problems and improve the health conditions of the people because the poultry products that are smuggled in usually spend many weeks on the sea and are preserved with harmful chemicals.”
The Administration Secretary of the Ogun State Chapter of Poultry Farmers Association of Nigeria, Temitope Oguntola, allayed the fears that prices of poultry products would become high as a result of the ban.
He said: “It is not true that poultry products would go beyond the reach of the masses as a result of the ban. I went to the market and found that a kilo of imported frozen poultry costs between N800 and N900. Our farmers can produce and sell below that if all the necessary support is put in place.”
Officers of FOU Zone A off loading frozen food concealed in a tanker recently.
The ban is also being celebrated by men and officers of the Nigeria Customs Service (NCS). Investigation conducted at their various offices revealed that a lot of the products were being seized and destroyed. For example, more than 2,000 cartons of the products were seized and destroyed by the Zone A of the Federal Operations Unit during the week.
The Public Relations Officer of the zone, Uche Ejesieme, attributed the seizures to the Operation Hawk Descend recently launched by the zone to intensify its fight against the smuggling of the products into the country.
Ejesieme said: “The operation was meant to be the first shot in our war against smuggling of frozen chicken, turkey and allied products. It is intended to cover the southwestern axis, covering our commands and patrols in Lagos, Ogun and Oyo axis.
“It underscores the importance and seriousness of the NCS to ensuring zero tolerance for importation of such products. The driving objective is to achieve natural food security and protection of the country’s economy from the destructive activities of saboteurs.
“It is not as if the operation had not been going on. The only difference is the emphasis we are putting on it. We have the responsibility to protect the local industries and the farmers.
“We also have the responsibility to make sure that these products don’t come into the country, as directed by the Federal Government’s fiscal policy. So, we don’t only checkmate, we also enforce compliance with the fiscal policy of the government.
“Like I said earlier on, we have been doing this for a very long time, but we are only consolidating on what we have been doing. Practical zero tolerance is the key word now.”
Ejesieme noted that smuggling is a global phenomenon, saying that Nigeria is not an exception. But what were are doing is to reduce to the barest minimum the illicit activities of smugglers,” he said.
“We are therefore making a clarion call to all patriotic Nigerians to support the service in this crusade. We are calling on people who have genuine information about these people (smugglers) to oblige the NCS with useful information that would assist us in tackling the menace.
“For the ones you are seeing in the market, I can assure you that their days are numbered. I can assure you that with the kind of renewed spirit that the Service is coming out with, sooner than later, it would become history and you won’t see them in any of our markets again.
“Right now, they are crying of scarcity out there in the markets. They are in real crisis because they can’t access these products from anywhere any longer.”
Justifying the call for information from members of the public, Ejesieme said: “Security operatives cannot operate anywhere in the world without the assistance of informants. They are key to the success of our operations because, granted that we have our security operatives, granted that we have our undercover officers and men nosing about for information, we also need informants to excel.”
Recalling Customs’ running battle with smugglers, Ejesieme said that many officers of the NCS had sustained gunshot injuries while trying to suppress the hoodlums.
“You should bear in mind that the task of suppressing smugglers is a herculean one. But the good news is that the NIS under the leadership of the Controller General, Alhaji Abdulahi Dikko Inde, and with the competence of the area controller, Turaki Usman Adamu, are resilient in this assignment.
Reacting to the allegation that Customs officers are overstepping their bounds by invading individuals’ shops to seize frozen foods, Ejesieme said: “We will stop at nothing in ensuring that these people are crushed. Importation of poultry products is totally prohibited. It is not about paying Customs due or not. Remember that we are not the ones that made these laws. They are part of the Federal Government’s fiscal policy and ours is to implement it. If tomorrow the government says that poultry products are removed from the prohibition lists, we would have no problem with doing the needful.”
He dismissed allegations of bribery being levelled against the Service in some quarters as mere ploy to give a dog a bad name in order to hang it.
“Customs’ operations in the past few years have changed. The present CGC has affected the lives of the officers and men positively. So, if anybody, for any reasons, decides to descend to that level of mediocrity, woe betides that officer that connives with smugglers to perpetrate crime. We have our internal mechanism for dealing with recalcitrant officers,” he said.
The Public Relations Officer of Western Marine Command in Lagos State also said: “The waterways are no-go areas for smugglers of all prohibited products. We have been seizing the products from time to timer and would not hesitate to do so in the interest of the people, our economy and the country.
“We have spread our dragnets all over the waterways and would not be deterred by anything in carrying out the task.”
An agric-economist, Mr. Michael Nnaji, says it is necessary to apply integrated approach in implementing the ban on importation of frozen foods.
He said: “I must first of all say that as a patriotic Nigerian who should always believe for the best in his government, I have no doubt that the intentions for which the ban was placed are perfect. Nevertheless, the policy should be backed with some necessary programmes that should have been implemented before the ban’s hammer deals its vicious blow on the economy, the people and the country at large.
“Already, the prices of these commodities are high and almost beyond the reach of the masses. It is really taking a toll not only on the pockets of the poor Nigerian but also on the health of the nation’s majority. This is because protein is a very important and necessary part of any correct human diet.
“Though one could talk about other protein sources like fish and plant protein, it is good to know that meat protein is to an extent irreplaceable by other protein sources. This is especially when we are considering the long-term health benefits. And that variety is not only a spice of life but our food too.
“In any way, the negative effects do not accrue only to the consumers but also to the producers to whom initially the ban may seem to favour, because we need to consider that they would be put under pressure by the economic incentive this opportunity would bring to them.
“Another negative effect on the producer is that since the average Nigerian could ill-afford the products because of high price, he would have no choice but to turn to other protein sources. So, even the producers’ sales are reduced as the perceived increase in demand is non-existent.
“The ripple effect is that in all, the agricultural economy of the nation is affected, thus making it impossible to achieve the regime’s aim of agricultural self-sufficiency. The domino effect on the general economy is that it will eventually not be diversified as being hoped, and thus we would remain a fuel-run economy, deceiving ourselves.”
“My point is that we should design relevant programmes that should already be in place before the commencement of the ban, which could be announced beforehand in order to get every stakeholder and aspiring stakeholders to sit up and prepare for the change.”
Explaining the health benefits of fresh poultry products over the imported ones, Mrs. Temitope Sikiru, a senior nutritionist at Massey Street Children Hospital, Lagos Island, said: “It is a known fact that fresh products are better, healthier and, to a reasonable extent, safer for human consumption. On the other hand, consumption of frozen products, especially chicken and turkey could be dangerous to health, because they can easily get contaminated through the use of preservatives, process of packaging and transportation from one country to another.
“Therefore, the consumption of these contaminated frozen chicken and turkey can easily damage one’s health by predisposing our vital organs to dangers such as development of lung and liver disease (inflammation of the liver and lungs), kidney disease and certain types of cancer.
“The preservative believed to be used for this chicken and turkey is a commercial solution of Formaldehyde, popularly called formalin, which is used in embalming human bodies and also as a disinfectant.
“The method of cooking is another important factor, because if the frozen chicken or turkey is not allowed to defrost thoroughly before cooking, it will encourage bacterial growth. If it is also not cooked for the right length of time, it could pose a danger to health.
“Inasmuch as the nutrient expected from chicken and turkey is protein, consumers should note that once the products are contaminated, the benefit is as good as lost.”
The importation of frozen poultry was banned by the Federal Government but despite this ban since 2003, the smuggling has remained unabated. Recently however, considering the health issues arising from the consumption of the smuggled meat and the loss of revenue to the Government, Government through the National Agency for Food, Drug, Administration and Control [NAFDAC] and the Nigerian Customs launched Operation Hawk Descend to combat the activities of these nefarious smugglers.
However, with the Operation Hawk Descend, the price of both the smuggled and indigenously produced poultry has gone almost beyond the reach of the average Nigerians. Many people are asking questions; With the large population of Nigeria, which is still increasing, Can the poultry farmers in Nigeria produce enough poultry to meet demand of consumers?, As the Government is enforcing this ban, what policies has it put in place to grow the Nigerian poultry?.
In this interview with Dr. Ayoola Oduntan, National President, Poultry Association Farmers of Nigeria, he tried to address these issues including the current price of poultry meat, the many challenges facing the poultry industry, how Government can grow the Agricultural sector through poultry and what is expected from consumers at this transitional period among many things.
There are so many speculations, we will like to know the exact annual demand of poultry meat in this country.
Local demand of poultry is about 1.5million metric tonnes, while Nigerian farmers can produce about 700-1million metric tonnes but right now we are only producing about 300,000 metric tonnes.
So, do the poultry farmers in Nigeria have the capacity to feed the Nation.
Our capacity as it is, is between 700- 1 milliontonnes and we can grow that capacity quickly as the Government is willing to support, and determined to grow the poultry industry. Our capacity utilization is about 46% but all that can increase within 2years.
Within that two years, how do you intend to bridge the gap between the demand and supply of poultry. As you said, the local demand is about 1.5million metric tonnes while local farmers are producing 300,000 metric tonnes now, creating a shortfall of 1.2million metric tonnes of supply.
We shall activate all the abandoned farms, use the existing major players as hubs around which we would develop smaller farming groups. In the area of trainingwe shall mobilize organized knowledge sharing plateforms and Government will of course come in with infrastructural support targeted at farms. A situation where most farmers in this country are borrowing money at 20%-30% is not encouraging. In most places where Government is determined to turn Agriculture around, farmers borrow money at between 3%-6%.More farmers should have access to development finance initiatives.
How can poultry industry grow other economies in the country?
Poultry Industry is so unique because it can stimulate other economies down the line. That is why many countries around the world will actively promote their Poultry Industries. In doing that Government will now need to focus on the activation of Maize, Rice, Soya, and Wheat, farms, Quarries, palm kernel and palmoil because all these industries feed the poultry industry thereby creating millions of jobs. So you can imagine how much jobs will be created if Government focuses on growing the industry.
Since the campaign of Operation Hawk Descendstarted, has the Government come up with new policies to support poultry farming.
The response from the Customs, NAFDAC and Ministry of Agriculture has been great. NAFDAC has done a great job in identifying the fact that this imported poultry is in direct opposition to their mandate of safe guarding the health of the Nation.
But what more can Government do to encourage indigenous poultry farming
Yes, there is so much more that can be done. Ministry of Information can launch a campaign encouraging the consumption of eggs. The Health Ministry should educate pregnant women on the impact of egg meals as they can get the needed Folic acid for the growth of the baby. Ministries of Internal affairs, Education should insist that egg be inculcated in Government school meals. An egg a day is recommended in most countries as part of healthy nutritious diet. Government should use it’s propaganda machinery to increase and generate demands for our products. It will cost them nothing but the impact will be huge in the economy.
When you say an egg a day is recommend as part of a healthy diet, are you referring to children or adults.
For everybody. We all know that the egg is probably God’s best gift in terms of food for us because of the nutrient contents. We have one of the lowest per capita egg consumption in the world.
Maybe the cost is what is discouraging the consumption and the believe that it has high cholesterol content. An average sized egg sells between N25 to N30.
Egg is not expensive compared to other food items especially when you consider the nutritional contents. The wrong information from the Americans in the 70s that egg is high in cholesterol has been demystified by new scientific facts which says that the cholesterol in egg is the good and healthy one and that there is no direct relationship between dietary cholesterol and blood cholesterol.
Since the recent enforcement of the ban on imported frozen chicken, the prices of both the imported ones and the indigenously produced ones have gone up by about 50%.
The price of the locally produced chicken has not gone up.
No, from my research the price has gone up. The local producers are taking advantage of the shortage of the smuggled ones to fleece the public.
I have spoken to the Chief Executives of most of the farmers and we have agreed not to raise prices for now. It is the traders, the Channels that are raising the prices.
So how do you intend to monitor and control these traders.
Now that government policy is being enforced and is here to stay, any increase will just be for a while and supply will soon meet with the demand as much as possible. The increase will only be for a short while as a lot of supply will eventually come into the market.
When exactly should people expect this more supply.
Is a process and we need to remain committed. The demand for day old chicks has gone up and people have started talking to their banks about reactivating their abandoned farms again.
Why do you think that smuggled poultry has persisted despite previous efforts to stop it even with the health challenges
Most people were ignorant of the health implications but now that they are realizing the negative health issues they will desist from patronizing it.
What parting words do you want to leave with the consumers .
Right now we have pride to consume made in Nigerian products that are good for our health and our economy and it should continue. What we are envisaging in the Poultry Industry now is only a transition that will stabilize in due course. People should not panic and take the wrong decision when the solution is just round the corner.
The Federal Government has been urged to provide financial protection for poultry producers against possible losses as a highly pathogenic strain of avian influenza forced producers to kill millions of chickens.
Deputy Director, the Department of General Management, Agricultural and Rural Management Training Institute (ARMTI), Dr Ademola Adeyemo, said avian flu is causing significant supply chain problems and that it could affect farms delivering strong financial performance.
He said producers need to be empowered to step up efforts to keep their chickens from getting infected and prevent spreading the disease.
He said the government should establish a special fund for poultry farmers to mitigate the effects of disaster, and also provide buffer for animal health programmes and farm services.
According to him, though the government has compensated poultry producers for losses following Avian Influenza (AI) outbreak earlier in the year, he said the industry needs more to take the brunt of the impact with several losing chickens.
He said the government fund would help farmers recover from flocks hit by bird flu, adding that poultry farmers hit hard by the disease will struggle to get back to business He said disaster loans will help them, in part, to rebuild their operations and revitalize their industry.
He urged the government to fund the fight against AI on immediate and long-range needs.
He urged poultry owners have been urged to be vigilant for signs of AI following the outbreak in England.
He said poultry owners need to keep a look out for any signs of the disease. These include respiratory distress, diarrhoea, fewer eggs being laid, loss of appetite and blue discolouration of neck and throat.
He urged poultry keepers should continue their efforts to monitor their birds for any signs of disease. Avian influenza is a notifiable disease, and so any suspicion should be reported immediately.
