The Feed Millers Industry Practitioners Association of Nigeria (FIPAN) has delivered promising news for Nigerian consumers, forecasting a decrease in egg prices due to the declining cost of poultry feeds. This positive trend is attributed to the Federal Government’s agricultural policies, which are finally starting to bear fruit. While the agricultural sector typically experiences a delayed market impact, the effects of these policies are now becoming evident. Although some sellers are still holding onto stock purchased at higher prices, the overall downward trajectory of feed costs is gradually influencing chicken prices, and FIPAN anticipates a subsequent drop in egg prices, bringing much-needed relief to consumers.
While acknowledging the positive strides made by the government, FIPAN has also identified areas requiring further attention to ensure the continued stability and growth of the poultry industry. Dr. Ayoola Oduntan, National President of FIPAN, has appealed to President Bola Tinubu to review the tariffs on essential imports within the livestock sector. He points to the high duty charges and value-added tax (VAT) imposed on imported feed additives and raw materials as significant contributors to production costs. These added expenses ultimately burden farmers and can translate into higher prices for consumers. Lowering these tariffs would create a more conducive environment for livestock production and contribute to more affordable food prices.
FIPAN has also outlined key strategies that can further bolster the industry. Supporting local farmers of crucial crops like maize, soya, and groundnuts is central to this approach. By investing in these farmers, the government can ensure a consistent and affordable supply of essential raw materials for feed production, reducing reliance on expensive imports. Furthermore, funding research into the utilization of local raw materials can unlock the potential of readily available resources, further diversifying the feed supply chain and enhancing its resilience to external market fluctuations.
Addressing the challenges of double taxation, bureaucratic bottlenecks, and delays at airports is also critical for the long-term health of the livestock sector. These logistical hurdles add unnecessary costs and delays to operations, hindering the industry’s efficiency and competitiveness. Streamlining import processes and eliminating redundant taxation would significantly ease the burden on livestock farmers, enabling them to focus on production and contribute to a more stable and affordable food supply. Failure to address these issues could result in job losses within the industry, decreased protein availability for the population, and increased reliance on costly food imports.
Despite the challenges, FIPAN commends the Federal Government for the implementation of policies that have contributed to the stabilization of feed prices. The improved security situation, the ban on maize and soya exports, and the establishment of the Ministry of Livestock Development are all recognized as positive steps. These measures have collectively created a more favorable environment for domestic production and have helped to curb price volatility. The recapitalization of the Bank of Agriculture is also lauded as a vital contribution to strengthening the overall agricultural value chain, enabling greater access to finance for farmers and supporting investment in the sector.
To solidify these gains and ensure long-term sustainability, FIPAN recommends strategic partnerships with agricultural agencies to implement contract farming for feed-grade maize. This approach would not only guarantee a consistent supply of maize specifically for animal feed but also reduce competition with maize intended for human consumption. By fostering collaboration and implementing targeted strategies, Nigeria can create a robust and resilient livestock sector that contributes to food security, economic growth, and improved livelihoods for those involved in the industry. This collaborative approach will not only benefit the poultry sector but also contribute to the overall development of the Nigerian agricultural landscape.
