Ilorin Poultry Farmers Lament Rsing Production Cost, Vanishing Income Margin

News in Brief:

— Ilorin Poultry farmers complain about the increasing cost of production, making it difficult to earn from their business.

— Farmers are unable to increase egg prices without losing customers, even as they find it hard to absorb high production costs.

Rising poultry production costs are making farmers in Nigeria lose more than they gain from the business. They lament that while input costs rise, farmgate egg prices remain the same, cutting their income margin. 

A poultry farmer in Ilorin, known as Adebayo Farm on Facebook, says he is finding it difficult to continue the poultry business.

“Almost everything we need to keep this business running is becoming more expensive. Yet, the moment we increased our egg price by just ₦100 per crate, moving from ₦4,700 to ₦4,800, some customers reacted as if we had committed a crime!” he said in the post.

Absorbing Higher Production Costs

Many poultry farmers face a similar dilemma and struggle to either absorb the increased cost to keep their customers or increase prices at the risk of losing customers.

Another poultry farmer in Ilorin, who spoke to The Junction on a phone call, confirmed the trend of higher production costs and how it is eating into their profit. Gift Ogunleye, a poultry farmer in Zango, Ilorin, said it now costs her more to raise birds than when she started the business in 2022.

“When I started, we usually got day-old chicks of broiler birds for about ₦500; now it's between ₦1,500 and ₦2,000 each. Regular vaccines for 100 birds only cost ₦1000 back then; now it is about ₦4000 to ₦5000. Many other things, like feed and antibiotics, also cost more now than they used to,” she said.

Ogunleye explained that these rising costs, coupled with the lingering effect of the 2023/24 poultry sector crisis that forced many farms to shut down, have made it difficult for many farmers to operate optimally.

She explained that while she has lowered her poultry capacity to about 20-30 birds per cycle, it still costs her around ₦100,000 to raise 20 broiler birds to the six-week mark, something she could do with half the money before.

Ogunleye explained that the situation is even harder on egg-producing poultry farmers because it requires more resources to raise birds to egg-laying age and sustain them.

One comment under Adebayo Farm’s post, Mercy Oghenetega, who owns Anja Farm Poultry, complained about customers' reaction to the pricing situation.

“For instance, my farm sells the small egg size at ₦4,500 and medium ₦5,000 before the increase and low production, but now that there's a reduction in production and feed price on the high side, transportation too is also killing, so I just added ₦100 to the medium size only; the small size remains the same ₦4,500. Still, customers are lamenting as if it's a deliberate act,” Oghenetega said.

Rising production costs and fair pricing are persistent problems, and stakeholders are exploring different solutions. The Poultry Association of Nigeria (PAN) urged the government and other stakeholders to intervene. The Egg Sellers and Distributors Association of Nigeria (ESDAN) recently launched an app to sell eggs directly to customers, eliminating exploitation and price manipulation.