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Half of Poultry Farms in Oyo State Have Shut Down – Association’s Chairman

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Chairman of the Poultry Association of Nigeria (PAN) in Oyo State, Mr. Omidokun Oyekunle, has revealed that nearly half of the poultry farms in the state have shut down. Speaking to the News Agency of Nigeria (NAN) on Wednesday in Ibadan, Oyekunle provided a stark overview of the current crisis facing the poultry industry in the state.

Oyekunle described the situation as dire, noting that the poultry industry, which contributes around 25% to Nigeria’s Gross Domestic Product (GDP), is facing severe challenges. He warned that if the trend of business closures continues, it could have serious negative impacts on the nation’s economy.

The Chairman called on both the Federal and State Governments to step in urgently to assist those who have already left the industry and to support those who are still trying to stay afloat. His plea includes a call for the government to provide soft loans to poultry farmers at interest rates no higher than 5%. Additionally, he stressed the need for better access to raw materials like maize and soybeans, which are essential for poultry feed.

One of the major issues highlighted by Oyekunle is the soaring cost of poultry feed. Maize and soybeans, which are key ingredients in poultry feed, have become increasingly expensive. This has placed a significant financial burden on poultry farmers.

Oyekunle explained that many farmers are now using old maize, which is problematic due to its high moisture content. This moisture affects both the production process and the quality of the eggs. To mitigate this, farmers often grind the maize, spread it out, and add preservatives, but these measures are less effective due to unfavorable weather conditions.

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The high cost of feed is further exacerbated by the low profit margins in the poultry business. The current economic conditions mean that farmers are struggling to cover their production costs and make a reasonable profit. As a result, many are being forced to shut down their operations, contributing to the rising cost of eggs and other poultry products.

Another issue affecting local poultry farmers is the importation of frozen chicken. Oyekunle pointed out that the influx of frozen chicken is putting downward pressure on the market price of locally produced chicken. He argued that if this trend continues, it will further threaten the viability of domestic poultry farms.

Despite these challenges, Oyekunle praised the federal government for permitting the importation of maize. He believes that this policy will eventually help to lower production costs and encourage more people to re-enter the poultry industry.

Oyekunle provided specific figures to illustrate the financial challenges faced by poultry farmers. A 25kg bag of broiler feed now costs around N25,600. This amount is insufficient to adequately feed more than 200 birds, highlighting the unsustainable nature of the current feed costs.

However, he expressed cautious optimism that the recent government policy allowing maize imports could ease these financial pressures. By reducing the cost of raw materials, this policy has the potential to help lower overall production costs and support the struggling poultry sector.

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