February 11, 2021

Nigeria's poultry industry faces spike in soybean prices

The price of soybean in Nigeria, a major ingredient used for poultry feed, has almost doubled in 2020, according to a market survey by Premium Times.

The survey showed that 100 kilogrammes of soybean that was previously sold last year for N12,000-13,000 (US$31.48-34.10) has risen to N24,000 (US$62.95) this year.

"Getting soybeans has not been easy. Every single time we go to buy, the price increases, and the issue is that soybeans and maize constitute about 75% of poultry feeds. VD&S farms' managing director, Folake Aina, said in an interview with Premium Times. "The price (previously) was N245 (US$0.64) per kilogramme excluding transportation to your location. (Now) it has increased to N290 (US$0.64) per kilogramme."

Poultry Association of Nigeria's director general, Onallo Akpa, lamented the current shortage of soybean in the poultry business.

Akpa explained that in October last year, a tonne of soybean, that was previously sold for N160,000 (US$419.67), has now jumped up to almost N300,000 (US$786.89) in less than four months.

"Most of the poultry farms are closing down because of the high cost of production, especially because most people cannot afford to even buy the feed. It is affecting the industry negatively, as soybean and maize constitute almost 80% of raw materials in feed production," Akpa said.

 - Premium Times