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Rising input cost, forex crisis take eggs off breakfast tables: Agriculture : Nigerialog.com - Nigeria's Premier Online Forum

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Rising input cost, forex crisis take eggs off breakfast tables

By: dayan (M) |Time : March 06, 2017, 09:07:08 AM



The Federal Government’s plan to make every Nigerian child to eat at least an egg a day, is mow turning into a day dream with the price of the commodity soaring beyond the reach of many families.

Like a fiery tale, many Nigerian families can no longer afford eggs or crates of eggs as the price keeps increasing at an alarming rate despite Nigeria’s rating as the largest producer of eggs in Africa and 19th in the world with annual production of 10.3 billion eggs.

As at 2014, a crate of eggs sold for about N400 to N500, while an egg sold for N20 and two pieces of eggs sold for N50. But between 2015 and 2016, a crate of eggs increased to N650, while an egg was sold for N25.

At a period in 2016, the price moved from N650 to N870 and N900, while the price of an egg rose to between N30 and N35. As at today, a crate of eggs goes for N1,200 and N1,400 while an egg goes for N70 depending on the price.

The increase in price of eggs between these periods was attributed to some factors like high cost of inputs for poultry feed, including maize and soybean, high cost of raw materials, high cost of running the operation and lack of access to foreign exchange to import basic poultry materials for production.

Maize and soybean are basic ingredients of production of livestock and fish feeds. The prices of these produce have also skyrocketed as some West African countries, which had their maize farms destroyed by worm and locust pests, are now mounting pressure on Nigerian maize.

At his second meeting last week with representatives of the poultry industry at the Presidential Villa, Acting President, Yemi Osinbajo, promised that the Federal Government was planning urgent relief to poultry farmers in the country to save the industry from collapse, adding that the poultry industry is a local industry that needs to be protected urgently.

He said the industry should be a major plank of the agriculture sector and as such the Buhari administration would ensure that it got help regarding the challenges being faced by operators of the sub-sector.

At the meeting, the President, Poultry Association of Nigeria, Dr. Ayoola Oduntan, said that poultry presently contributes 25 per cent of the agricultural Gross Domestic Product (GDP) of the Nigerian economy, amounting to N1.6 trillion.

Daily Sun investigation reveals that poultry farmers are currently groaning over their inability to purchase maize in the market, following a biting scarcity. It was reported that those who even planted it last season sold out the produce to neighbouring countries, where they earned more revenue.

Farmers from the North, who have species of maize rich in protein and valuable for production have been reportedly diverting the produce to neighbouring countries where they sold it in foreign currencies because of the depreciating naira.

The development, some industry watchers said, had resulted in more profit for the farmers, who would have earned less for the same risk and distance to bring down their produce to the South.

Speaking with Daily Sun, the Director General of Poultry Association of Nigeria (PAN), Mr. Onallo S. Apka, said that the factors responsible for the increase in price of eggs and other poultry products are the same as those responsible for the increase in prices of other products in Nigeria.

He explained: “The economy, high exchange rate, rising prices of raw materials like maize, soybeans and high prices of inputs into the production of poultry feed; high cost of running the operation itself – we run generator 24/7, you take loan from the bank at 27 per cent interest rate and harsh operating environment – so all these factors are responsible for the high cost of production, invariably translating into the high cost of poultry products.

“With the coming down of exchange rate of the dollar and promise of government to intervene in the sector, we believe in the next few months, the prices of poultry products will also crash because government has promised that it is going to give us incentives to ensure that local poultry industry does not die.”

Meanwhile, the owner of Segtin Farm, Dr. Olusegun Makanjuola, said the inputs for poultry feed like maize and soybeans have become very expensive, lamenting that the situation is really telling on farmers.

He added: “In fact, farmers are not really passing the whole cost of production to the consumer, otherwise, the price would have been higher than what we are facing. It is really a tough time for farmers now because maize that sold around N30 and N40 now goes for over N120 and N135. And then, consider the cost of production, which is very exorbitant and basically, it is the production cost that determines pricing.

“So the increase in the price of inputs and non-availability, including the high costs of raising birds now, have a lot of implications for farmers. If you go to banks, the interest rate at which they loan to farmers is very high. So these are factors that are responsible for the high cost of poultry products.”

He said the Federal Government keeps promising support for farmers without actually doing so even as input cost is not considered.

Makanjuola stated: “We are pleading that government should intensify the production of maize and soybeans. If they should do that, the price will come down and the cost of production will as well come down. Not only that, some of our inputs are imported and we buy forex from the black market, so the cost of those things we import with the black market rate will be high.

So we are pleading with government to also give us some forex relief so that we can access the Central Bank of Nigeria (CBN) rate for foreign exchange and we are pleading with the Federal Government to give us enabling environment.”

Source

Re: Rising input cost, forex crisis take eggs off breakfast tables

By: dayan (M) |Time : March 06, 2017, 09:11:04 AM
Quote
Farmers from the North, who have species of maize rich in protein and valuable for production have been reportedly diverting the produce to neighbouring countries where they sold it in foreign currencies because of the depreciating naira.
 

It is precisely because of things like these that it would have been fair if all the farms in the north are nationalized like the oil in the south east and south south. Imagine if that oil were to be hoarded and exported when the local demands have not been met; imagine the uproar it would cause.
This is why Nigeria should be restructured so that sections can do with their local assets whatever they want.

Re: Rising input cost, forex crisis take eggs off breakfast tables

By: princepoint |Time : March 06, 2017, 11:38:22 AM
Awkward moment when diminishing returns is taken place 

Re: Rising input cost, forex crisis take eggs off breakfast tables

By: Gideon |Time : March 06, 2017, 03:15:43 PM
This is not good!... Eggs that are so common now getting out of reach of common man... A good time to make it big for those who are in poultry business...

Re: Rising input cost, forex crisis take eggs off breakfast tables

By: alagbe003 (M) |Time : March 06, 2017, 06:36:46 PM
one of the meal considered to be very available to all is now moving away from the reach of an average Nigerian

Re: Rising input cost, forex crisis take eggs off breakfast tables

By: alagbe003 (M) |Time : March 06, 2017, 06:40:18 PM
This is not good!... Eggs that are so common now getting out of reach of common man... A good time to make it big for those who are in poultry business...
They are not making it like that their  inputs also experience a  price hike

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