July 24, 2023

 

High corn price sparks shutdown of poultry farms in Delta State, Nigeria

 

 

The prohibitive cost of corn, which is a major component of poultry feeds, is forcing farms to shut down in Delta State, Nigeria.

 

The development is coming with the inevitability of workers being laid off which may result in youth restiveness in the oil rich state. The cost of corn rose from ₦225,000 (US$377.78) to ₦405,000 (US$680) per tonne with the potential of further increase.

 

As a result, about 600 poultry farms are in line to be closed as owners can no longer sustain their respective enterprises.

 

Addressing journalists in Asaba on July 19, the chairman of Delta State chapter of Poultry Association of Nigeria (PAN), Eric Tomfawei, stressed that despite the recent increase in the cost of corn, farmers in Delta State are unable to increase prices as many farmers are already experiencing gluts in egg and broiler production.

 

Tomfawei appealed to relevant government agencies to release adequate quantities of corn from the Strategic Food Reserve to the poultry industry at discounted rate to address the spiraling cost of corn.

 

"There is also the need for the Federal Ministry of Agriculture and Rural Development to release enough quantity of maize to the poultry industry through the association at discounted prices to address this situation," he said. "Apart from the direct impact on hunger crisis, more youths, who are engaged by the poultry industry will be thrown back into the labour market with attendant security implication."

 

He claimed that poultry farmers are being frustrated by the Nigeria Commodity Exchange (NCX) and the Strategic Maize Reserve (SMR) of the Central Bank of Nigeria (CBN) by its cancellation of allocations of 40,000 tonnes of corn meant to assist poultry farmers.

 

Tomfawei accused officials of the Nigeria Commodity Exchange and the Strategic Food Reserve of CBN of hoarding of corn and urged Nigerian President Bola Tinubu to set up an investigative panel to get to the root of the problem. He urged support for the poultry industry to prevent its imminent collapse and warned that Nigeria could become a dumping ground for imported poultry products, if  the right steps are not taken.

 

Tomfawei also urged Sheriff Oborevwori, governor of Delta State, to address the issue of egg and broiler glut crisis affecting poultry farmers in the state.

 

- The Sun