POULTRY SECTOR STUDY NIGERIA

Commissioned by the Netherlands Enterprise Agency

POULTRY SECTOR
STUDY NIGERIA
 2 3

Executive Summary

Nigeria’s poultry production has grown steadily this century,

despite the myriad of challenges faced. According to
Rabobank’s 2017 report (A Time for Africa), the four West
African countries of Ghana, Nigeria, Côte d’Ivoire and Benin

35%
show the most potential for poultry sector development,
in terms of increasing local demand and the incentives
available, both fiscal and non-fiscal.

A
of Nigeria’s GDP’s is from s part of its response to the prospects presented by that information,
Agriculture. the Dutch Government is showing increasing interest in West
Africa’s poultry sector, with a view to stimulating entrepreneurship,
agricultural development and innovation in the sub-region. It is in this vein
that the Dutch Government commissioned this study.
This study was commissioned to provide deeper insight into Nigeria’s
poultry industry; to understand the needs of both the public and private
sectors, and to understand how these needs can be met by Dutch private numerous new investments are appearing in the poultry value chain.
sector capabilities, knowledge sharing, technologies and skills.
Enthusiasm regarding economic opportunities in the poultry sector must, however, be balanced with an

25%
Agriculture accounts for 35% of Nigeria’s GDP. Before the ascendancy of awareness of the challenges. A major source of concern to stakeholders in Nigeria is the sourcing and
oil, agriculture was the country’s major earner of foreign currency. Now structuring of credit finance for the poultry business in Nigeria. Within a short period, many commercial
that oil is on the decline, there is great clamour for diversification of the farms have started with enthusiasm but soon collapsed, for reasons that are more financial than technical.
Nigerian economy. This has redirected attention to agriculture and now the
of Nigeria’s poultry business The size, cost and repayment structure of the financing made available to poultry farmers often do
government of Nigeria is paying unprecedented attention to agricultural
not suit the schedule / cycle of the business, so farmers end up defaulting on payments and losing
contribution to GDP development – both as an instrument for reducing the nation’s import bill
their investments. In this report, we identify five key issues that would need to be addressed to secure
and as a potential leading source of foreign currency.
continued growth for Nigeria’s poultry industry.
The Nigerian poultry industry contributes approximately 25% to agricultural
Improved access to finance, especially for medium- and small-holder farmers, with better financing costs
GDP. Since about 2008, there has been a deliberate national drive to
and structures for all poultry farmers. Work on financial training for banks working with the agriculture
promote agriculture as business. The federal government encouraged
sector.

farmers to upgrade from subsistence to commercial agriculture. In fact, a

financial intervention scheme was launched in this regard, the Commercial Stabilise the policy and regulatory environment to encourage long-term planning and investments while

Agriculture Credit Scheme (CACS). The Nigerian poultry industry, being the boosting investor confidence. In addition, make room for refurbished poultry equipment.

most well-organised sub-sector in the agriculture sector and contributing
Develop local markets to further incentivise production and minimise fluctuations caused by speculator

25% of the total agricultural contribution to GDP, was well positioned

activities.
to benefit from this and other measures. The poultry industry has also
witnessed tremendous technical improvement over the last decade and Encourage / Promote all-year round availability of good quality and cost-efficient inputs and / or raw
continues to contribute to achieving Nigeria’s food sufficiency and economic materials for feed manufacturing; veterinary inputs; good quality DOCs, technology and equipment.
growth.

More sector-specific training and education, especially at lowest (poultry attendant / secondary school
This study covers Production systems and processes; Policy and Regulatory
leaver) and highest (expert / specialist) levels. Develop practical training courses / curriculum for farm
environment; Capacity, knowledge, technology, training and education hands and farm managers.
Poultry production offers gaps, and Markets for poultry products and by-products. It also examines
Dutch companies are already active in Nigeria and it is the Dutch Government’s desire that their
a very fast and. healthy how Nigeria’s agricultural policies in recent times have affected the poultry
investments and those of other Dutch companies not yet active in Nigeria will contribute to continued
business. The importation of poultry meat and table eggs into Nigeria
approach to meeting growth of the sector.
has been banned for at least two decades, but the enforcement has only
the growing demand for become effective over the past four years. This has had a major positive
animal protein. impact on poultry production in the local market.
Disclaimer COVID-19
With an ever-growing urban population, an expanding middle class and The whole content of this report is based on information collected before the outbreak of the COVID -19 pandemic. Although
an improving rural economy, demand for meat is sure to increase over the potential of the poultry sector in Nigeria remains high, it is likely that the measures against the virus will bring structural
changes in the market predictions and market structure in the country and the global economy. The influence of the COVID -19
the years. Poultry production offers a very fast and healthy approach outbreak and corresponding measures are however not cooperated in the report.
to meeting the growing demand for animal protein. With government
protection for the local producers against unfair international competition,
the Nigerian poultry industry is likely to maintain a positive trajectory. Thus,
4 5

TABLE OF CONTENTS List of Acronyms

CACS
List of Acronyms 5 Commercial Agriculture Credit Scheme
DAPP
1. Introduction 7 Dutch Africa Poultry Platform
1.1 Background to the study
8 DOC
1.2 Methodology
9 Day Old Chicks
EUR
2. Nigeria Poultry sector 11 Euro
FAO
2.1 Development of the poultry sector
13 Food and Agriculture Organization
2.2 Stakeholders in the poultry sector
14
FIPAMAT
Funtuna Institute of Poultry and Aquaculture Management
3. Inputs 20 Technology
3.1 Feed
20
3.2 Vaccines and drugs
24 FMARD
Federal Ministry of Agriculture and Rural Development;
3.3 Hatcheries, Breeding and DOC’s
25
3.4 Challenges and opportunities
26 FUNAAB
Federal University of Agriculture Abeokuta
4. Production systems 29 GDP
Gross Domestic Product
4.1 Layer Production
31
4.2 Broiler Production
32 IAR&T
4.3 Bio-security conditions for production
33 Institute of Agricultural Research and Training
4.4 Housing and Equipment
34 LBM
4.5 Challenges and opportunities in Production
35 Live Bird Market
L-MIRA
5. Policy and regulatory environment 37 Livestock and Micro reforms in Agribusiness
5.1 Import of inputs
37 MMT
5.2 Drugs & Vaccines
37 Million Metric Tonnes
5.3 Live birds
38
NABC
5.4 Feed, Concentrates, premix and supplements
38 Netherlands Africa Business Council
6. Training, education and knowledge gaps 38 NAFDAC
National Agency for Food and Drug Control
6.1 Current status of poultry training and education
38
6.2 Existing gaps
39 NGOs
Non-Governmental Organisations
7. Market 40 NIAS
National Institute of Animal Science
7.1 Poultry value chain
41
7.2 Trade in poultry inputs
42 NIRSAL
Nigeria Incentive-Based Risk Sharing Scheme for
7.3 Marketing poultry products
45
7.4 Ban on imports and its effect on market
47
Agricultural Lending
7.5 Waste and offal
48 PAN
Poultry Association of Nigeria
8. Swot Analysis of poultry Trade and Investment 49 PPP
Private Public Partnerships
9. Opportunities for Partnership 50 PS
9.1 Opportunities for investments in Nigeria’s Poultry Sector
52 Parent Stock
9.2 Involvement of the Dutch sector
53 RVO
Netherlands Enterprise Agency
SON
Standards Organisation of Nigeria
USA
United States of America
VCN
Veterinary Council of Nigeria
6 7

1. Introduction

To safeguard the economy, the Nigerian government has put in place several
policies to promote local food production (including poultry). The ban on the
smuggling / importation of poultry products has been increasingly enforced

7bn People over the past few years.

The government has also rolled out several stimulus packages for the poultry
The world population is increasing, with already sector. It was no surprise, therefore, to see Nigeria was listed in Rabobank’s
more than 7 billion people on the planet. The report of 2017 as one of the countries set to grow its poultry sector by 6-10%
year-on-year between 2015 and 2025 (Time for Africa, Rabobank 2017).
population is expected to increase to 9.7 billion
Nigeria is seen as one of the nine countries More recently, there has also been more emphasis on educating stakeholders
people by 2050. A large part of that worldwide
where the increase in the world population to look beyond mere production and to focus rather on developing or
growth will take place in Africa, where the will be concentrated. It is expected that the upgrading the entire poultry value chain.
population in sub-Saharan Africa is expected to population there will double from 201 million.
double by 2050. In 2019 tp 401 million in 2050 Though it is agreed that there is knowledge and experience deficit, more
resources are now being deployed by government and non-governmental
Table 1: Nigeria’s Population organisations to develop capacity across the poultry value chain. All these
measures can only lead to improved fortunes for the industry and all the
Year 2000 2005 2010 2015 2020 2025 2030 stakeholders.

Nigerian population (millions) 122.28 138.87 158.5 181.14 206.14 233.34 262.98 The Netherlands is very active in poultry development in Africa. Private
companies, educational and research institutes, NGOs and the Dutch
Urban (%) 38% 41% 43% 48% 52% 57% 61% government are all involved in various aspects of developing the poultry sector
in many countries across the continent. The private sector works together
Rural (%) 62% 59% 57% 52% 48% 43% 39% through the Dutch Poultry Centre ([Link] and
is strongly represented in Africa by the activities of the Netherlands Africa
Annual Growth Rate 2.54% 2.64% 2.67% 2.59% 2.48% 2.39% **1 Business Council (NABC) through the DAPP (Dutch Africa Poultry Platform).
Source: [Link]

This population growth is also accompanied by rapid rural-urban drift and an

expansion of the middle class. This has meant an increasing demand for meat which
has outstripped supply. In addition, the contradictions surrounding the production,
movement and supply of other sources of protein, such as beef, have further
awakened interest in poultry as a convenient source of animal protein. Consequently, “ The Netherlands is very active in poultry development
many traditional backyard-based poultry farms have given way across Nigeria to
medium-sized integrations and a sizeable number of commercial farms. In fact, the in Africa. Private companies, educational and research
poultry industry in Nigeria is reputed to be the most organised Industry group in the
animal production sector.
institutes, NGOs and the Dutch government are all
involved in various aspects of developing the poultry
sector...”
A Nigerian consumes on average
only 65 eggs per annum

whereas in the. The situation is similar with

Eggs poultry meat, as Nigerians consume on average
Consumption USA the average
consumption is 279.8 only 1.9 kg per capita, compared to 49.3 kg for
the USA, 32.98 kg for South Africa and 7.67 for
Ghana.

Despite these low per capita consumption rates, there is currently a supply deficit.
Meanwhile, with economic growth among both urban and rural populations, the
demand for poultry products is going to rise as a natural consequence of improved
purchasing powers.
8 9

1.1 Background to the study The second activity was a field visit conducted in December 2019 by a combined team of one Dutch and two
Nigerian team members. The team visited private and public poultry sector stakeholders, whose comments and
The aim of this study is to gain better insight into one of the focus sectors of the Embassy of the Kingdom of the opinions are reflected in this report. We applied the following classification for farmers in this study:
Netherlands in Nigeria; to understand the needs of both the public and private sectors, and to understand how
these needs can be met by Dutch private sector capabilities, knowledge sharing, technologies and skills. As such
the main objectives of this study are to:
• analyse the Nigerian poultry subsector;
• identify ways to strengthen the local private sector with Dutch knowledge, technology and expertise;
• identify potential market opportunities for Dutch businesses; and
• map opportunities for bilateral collaboration between the Dutch and Nigerian governments.

Toealise those objectives, sub-themes have been identified to support the research methodology and report
structure, as shown in Table 2 below. Small-scale farms: Medium-scale farms: Large-scale farms:
capacity of
capacity of 2,501 to 10,000 capacity of over 10,000 birds
1 to 2,500 birds
birds
Table 2: Detailed description of the sub-themes selected.
No. Theme Description
The study was carried out in the three broad regions of Nigeria namely South West, South East / South South
The objective here is to identify current practice and how it and North West / North Central. Farmers were sampled from 25 states across the country. The visits can be
1. would relate to the technology and knowledge available in categorised / enumerated as follows:
Production systems and
the Netherlands. It includes the identification of the location Table 3: Sample size and Geographical scope of the respondents
processes
of all major stakeholders in Nigeria’s poultry-related products
production. Zone States Sampled Layer Broiler Total
Farms Farms
This question extends to import regulations and all duties due
on any imported goods required for production and processing Oyo, Osun, Ogun, Ondo, Ekiti and
2. Policy and Regulatory of poultry products. The challenge is to identify also what South West 90 60 150
Lagos
environment regulations exist and how they are enforced in Nigeria. At the
national and regional levels, such regulations play a significant
Abia, Akwa Ibom, Rivers, Anambra,
role, as they can make or break a business.
South East & S/South Bayelsa, Ebonyi, Edo, Delta, Imo and 45 30 75
Better insights into these issues, i.e. available capacity, levels Enugu States
3. Capacity, knowledge,
of skills across the value chain, technology currently in use,
technology, training and Benue, FCT, Kaduna, Kogi, Kwara,
etc., would give a good indication of market maturity and the
education gaps North West & N/Central 45 30 75
opportunities for developing the sector. Narawa, Niger, Plateau and Sokoto
4. The question regarding markets was limited to inputs for Total 180 120 300
Market
production and market prices for the finished products.

1.2 Methodology
This data collection was undertaken over a period of two months and consisted of two
main lines of activity. The first activity was data gathering, carried out from November to
December 2019. It started with selection and training of enumerators, who then went into
the field for data gathering. Data on production and major players was gathered in five out
of the six geo-political zones of the country (excluding North-East Nigeria, which is affected
by the Boko Haram crisis and where there is no significant poultry activity).
10 11

2. Nigeria Poultry sector

Nigeria’s population is currently estimated to be approximately 200 million people, while

the nation has a land mass of 910,770 km2. Of that population, 49.52% live in urban
areas, with 50.48% living in rural areas. Lagos, the commercial nerve centre of the nation
and Nigeria’s mega-city, is home to about 20 million people; most of them live in urban
settlements. The meaning of this is that at least 20% of Nigeria’s urban population is
domiciled in the Lagos area.

Table 4: Nigerian States

No. State Population per state (2016) % share of total

Kano 13,076,900 7%
Lagos 12,550,600 6%
Kaduna 8,252,400 4%
Oyo 7,840,900 4%
Katsina 7,831,300 4%
Rivers 7,303,900 4%
Bauchi 6,537,300 3%
Borno 5,860,200 3%
Jigawa 5,828,200 3%
Benue 5,741,800 3%
Delta 5,663,400 3%
Niger 5,556,200 3%
Anambra 5,527,800 3%
Akwa Ibom 5,482,200 3%
Imo 5,408,800 3%
Ogun 5,217,700 3%
Sokoto 4,998,100 3%
Osun 4,705,600 2%
Ondo 4,671,700 2%
Zamfara 4,515,400 2%
Kogi 4,473,500 2%
Kebbi 4,440,000 2%
Enugu 4,411,100 2%
Adamawa 4,248,400 2%
Edo 4,235,600 2%
Plateau 4,200,400 2%
12 13

Agriculture is a major economic preoccupation in Nigeria. Agriculture accounts for 35% of Nigeria’s GDP. The
Cross River 3,866,300 2%
Nigerian Poultry sub-sector contributes about 25% of the total livestock and fisheries contribution to GDP. The
Abia 3,727,300 2% poultry sub-sector employs about 14 million Nigerians in direct and indirect employment. Commercial poultry
production is more developed in the south-western part on the nation, but with rapidly increasing investments in
Federal Capital 3,564,100 2% the North West and North Central geo-political zones.
Territory
Yobe 3,294,100 2% Table 5: Nigeria’s GDP growth (USD)
Ekiti 3,270,800 2% Year GDP (Billion USD) GDP Real growth rate (USD) GDP per capita (USD)
Gombe 3,257,000 2% 2000 46.39 5.3% 379
Kwara 3,192,900 2% 2005 112.20 3.4% 808

Taraba 3,066,800 2% 2010 363.36 7.8% 2,292

Ebonyi 2,880,400 1% 2015 464.28 2.7% 2,563

2020 492.29 *2 2,388
Nasarawa 2,523,400 1%
2025 559.70 * 2,399
Bayelsa 2,278,000 1%
2030 636.34 * 2,420
Total 193,500,500
Source: [Link]

46.5%
Nigeria currently has the second largest chicken population in Africa, with a standing stock of about 180 million
birds. Annually, 454.000 tonnes of meat and more than 14 billion eggs are produced. The poultry sector
contributes 6-8% of GDP, which is about 30% of the total agriculture contribution3. Over 13 million households
keep livestock at their homes and receive (at least part of) their income from it.
Nigeria has a large youthful population (42.54% between ages 0 to 14) spread across
36 states. Though Nigeria’s poverty rate is estimated at more than 46.5% (a majority of
which are young people and women), the demographics of poverty in Nigeria suggest
that poverty is more prevalent in the North West and North East. 2.1 Development of the poultry sector
The Nigerian poultry industry has a long history. Commercial poultry farms sprang up in
Figure 1: Nigeria’s 36 States
Nigeria in the early post-independence years. In fact, a few modern farms existed before
Source: Sunnewsonline
Nigeria gained independence. In the oil boom days, Nigeria witnessed an expansion of her
poultry and dairy industries, but this progress was reversed during the economic depression
of the 1980s.
After the restoration of democracy in 1999, a new wave of renewed efforts to develop agriculture (including
poultry) began in Nigeria. One of the major incentives for growth was the ban on importation of poultry products.
From about 2005, several intervention agencies and funds for the development of agriculture were introduced.
Notable among them was the Commercial Agriculture Credit Scheme (CACS), which enabled many of the leading
commercial poultry producers to expand dramatically from 2008 to about 2013.
Another innovative scheme of note was the NIRSAL (Nigeria Incentive-Based Risk Sharing Scheme for Agricultural
Lending), which aimed to de-risk agricultural lending and thus make commercial banks more willing to lend to the
agricultural sector. The NIRSAL scheme was particularly helpful to the Poultry Sector because the bird flu scares
of 2005 / 2006 and 2009 heightened their perception of risks associated with the poultry business, thereby
discouraging banks from lending to poultry farmers.
Nigeria’s current political leadership expressed a desire to reduce importation and promote local production in
2015. Against this background, the government further strengthened the enforcement of the ban on smuggling.
With improved control of smuggling, broiler farmers were able to penetrate the market and expand their
production. The government also strengthened the Anchor Borrowers Programme, which enabled small- and
medium-scale farmers to participate in agricultural lending schemes by being linked to off-takers whose guarantee
enabled small farmers to access funding.

3 The World Bank, Livestock Productivity and Resilience Support Project

14 15

The consumption of poultry in Nigeria is relatively low compared to other 2.2.2 Private Sector Players
countries. It is estimated that on average Nigerians eat 1.9 kg of chicken meat
per capita in a year, whereas in South Africa and Ghana the figures are 32.98 The poultry industry in Nigeria is private sector driven, with sizeable numbers of players across the various
and 7.67, respectively. Although demand for poultry had been increasing categories. In the past few years, the private sector has been growing rapidly in terms of diversity, maturity
yearly, there was a decline in the last couple of years. This decline has been and the number of players setting up to provide very specific products and or services, i.e. branded eggs and
linked to the economic crisis in the country caused by low oil prices4,5,6. The chickens, breeding, feed, vaccines, machinery, etc. The more the sector develops, the more businesses will
increase in specialisation to ensure that they serve a specific niche in the market. In table 7a the stakeholders of
economy seems to have been recovering recently and it is assumed that
Nigeria are listed. These are the stakeholders that came up during the interviews and the validation workshop
economic growth in Nigeria will cause an increase in the consumption of and were mentioned by the participating companies. Table 7b shows an overview of the NABC members of the
chicken meat per capita7. poultry sector active in Nigeria and the African continent.
Although it is expected that the demand for poultry products will increase fast,
the Nigerian government has kept the ban on imported poultry products in
Table 7a: Sector stakeholders
place8. Further, it tries to discourage the export of poultry products. It is said
that these regulations will protect Nigeria’s foreign currency balance. It should No. Category Stakeholders
also encourage the domestic poultry sector to develop so it can contribute to
feeding the growing Nigerian population in the coming years9. 1. Veterinary products Animal Care
Adamore
2.2 Stakeholders in the poultry sector Turner Wright
The Federal Ministry of Agriculture and Rural Development is the main organ Diversay Solutions
of government responsible for overseeing the poultry industry in Nigeria. Zygosis
In addition, there are other government organisations or parastatals which Thlala Kolo
regulate various aspects of the poultry value chain. Jubaili
1.9kg 2.2.1 Government Institutions
FDH Pharma
FTN Standard
The Federal Ministry of Agriculture and Rural Development is organised into Agrited
on average Nigerians eat
six service and eleven technical departments. Soptimal
chicken meat per capita in
a year Table 6: Government Institutions
2. Feed producers Topfeeds
No. Department Names Olam
Service Finance and Account Grand Cereal
Planning & Policy Coordination Animal Care
Human Resources Amo Byng
General Services Hybrid
Procurements Livestock Feeds
Reform Coordination & Services Improvement Breedwell
New Hope
Technical AgriBusiness & Marketing Terattiga
Agricultural Land & Climate Change
Federal Department of Agriculture 3. Equipment suppliers Vencomatic
Farm Input Support Services Big Dutchman
Fisheries and Aquaculture Facco
Animal Husbandry Services Petersime / CHI
Rural Department Priority Poultry
Agriculture Extension Services Farm Support
Cooperative Agriprojects
Food and Strategic Reserve Premier Agribusiness Academy
4. Service Providers
Veterinary & Pest Control Services World Farmers Centre
GlobalWyse Limited
NAFDAC: NAFDAC (National Agency for Food and Drug Administration and Control) is the main
government institution responsible for the enforcement of standards in food production in Nigeria. SOA Vet
NAFDAC maintains a close relationship with Nigeria’s Standards Organisation, the agency responsible AgroInfotech Africa
for setting the standards which NAFDAC enforces.
African Harvesters

4 Evaluation of Poultry egg marketing in Ikwuano locan government area of Aiba State, Nse-
Nelson et al, 2018
5 Financial times, Nigeria economy suffers first annual contradiction in 25 years
6 Country economy, Nigeria GDP
7 Sahel, An assessment of the Nigerian Poultry sector
8 Rabobank, Time for Africa, capturing the African poultry investment opportunity
9 Zootecnica international, Outlook of Nigeria’s poultry feed market
16 17

5. Processors Zartech
CHI Table 7b: Dutch poultry network of NABC active in Nigeria and the African continent.
Obasanjo Farms
Natnudo Chicken No. Category Stakeholders
NPG Farms Veterinary products / Pas Reform Hatchery Technologies
1.
Lakatabu Farms laboratories Royal GD
Green Pasture
Taghini
Valentine 2. Feed/Additives/concentrate/ Agraplan B.V.
Big Sam / Globus premix producers Cagemax
Champrix B.V.
6. Hatcheries CHI Darling ingredients (Sonac & PRO Ingredients)
Amo Sieberer Koudijs Animal Nutrition B.V.
Zartech Trouw Nutrition
Olam
Yammfy 3. Parent stock and genetic Hendrix Genetics B.V.
Farm Support improvement Verbeek Hatchery Holland
Agrited
NPG Farms
4. Housing equipment Impex Barneveld B.V.
Tosam / Supreme
Jansen Poultry Equipment (JPE)
Obasanjo Farms
VDL Agrotech
Sunchicks
Vencomatic group
Globus
Folhope Processing equipment Foodmate B.V.
PC Onuhuoha
5.
Geerlofs Refridgeration
GI-OVO B.V.
7. Laboratories Animal Care
Marel Stork Poultry Processing B.V.
Zoetis / CHI
MOBA Group
Zoetis / Vetco
Ottevanger Milling Engineerings
Diversay Solutions
TransNational Agri Projects B.V.
Zygosis
Celtic Coolings
8. Premix/Feed Additives producers HiNutrients enterprises Ltd.
Terattiga
6. Management software I Grow Chicken (EBIT+)
Agro bar Magen
Farm Support
Turner Wright
Novus / Norgem 7. Training Aeres Training Centre International (ATCI) &
Agrited Aeres University of Applied Sciences
Rostal Resources
Nutrivitas Ltd.
Bio-Nutrients systems Ltd.
Animal care
Agro-BarMargen
DSL Pharma

9. Higher education institutions 9.1. Federal university of Skure

9.2. Uthman Dan Fodia university Sokoto
PAN: PAN (Poultry Association of Nigeria), the umbrella body for poultry industry stakeholders in Nigeria, was formed to mobilise farmers to act
together for poultry sector growth. Its main objective is to act as a lobby group to advance and defend the interests of poultry industry stakeholders
in the polity. The Association also spearheads several cooperative activities that promote / support the industry, while working to ensure that the
sector takes full advantage of opportunities to grow the industry and the respective businesses of its members. The Poultry Association of Nigeria has
several sub-associations that are active in the poultry sector. They include:
HON (Hatchery Operators of Nigeria)

DOCMAN (Day Old Chicks Marketers Association of Nigeria)

CEPAN (Commercial Eggs Producers Association of Nigeria)

TEPAN (Table Egg Producers Association of Nigeria)

FEPAN (Feed Producers Association of Nigeria)

ANVAI (Association of Nigerian Veterinary and Allied Industry)

18 19

3. Inputs
3.1.1 Feed ingredients
Poultry feeds need to have enough protein, fat, carbohydrates, vitamins and minerals for optimal production. A
Nigeria prohibits the import of poultry products. Even though there is an unspecified formulation of the feed ingredients is made so they can be mixed in a feed with an optimal content. During this
volume of illegal poultry products smuggled in through Benin every year, the population is formulation, the price and quality of the ingredients are important factors to take in account, as is the number
predominantly dependent on local production10. The main concerns for the majority of the of hectares used for cultivation15. Maize is a major source of energy for animal feed. Across Africa, maize is the
farmers interviewed and for the industry in general with regards to inputs were availability main crop grown predominantly for human consumption (see Table 8 below). Despite the amount of its land under
cultivation, Africa is still a net importer of maize.
and price. In view of the border closure and the government’s plans to promote local
production for eventual self-sufficiency in both poultry meat and egg production, some of Table 8: Major crops grown in Africa
the required inputs have to be produced locally. No. Crop Area (ha) Production (t) % of total production
The government plans to incentivise the production of soya, maize and other raw materials for feed production Maize 34,075,972 70,076,591 43%
to ensure sufficient supply for the industry, but this must be coupled with disincentives for imports, so the right
balance is needed between imports to compliment local production and outright protectionism. To this end the Millet 19,998,008 16,008,838 10%
Nigerian government has, for instance, strict agreements with importers to ensure that imports compliment local
production rather than being the norm when it comes to soya, for instance.
Rice, paddy 11,206,813 28,798,202 18%
That is also the case for all the other inputs the industry needs for efficient and cost-effective production, so the Sorghum 23,142,595 23,350,064 14%
government needs to work very closely with the entire industry to ensure it aligns its regulatory agenda with the
Wheat 10,224,952 24,704,201 15%
industry’s demands.
Total 98,648,340 162,937,896 100%
Source: FAO stats, FAO Statistics Division, 04 October 2015

3.1 Feed Nigeria has scope for producing sufficient amounts of maize, but, due to its price compared with other
Feed is the most important input in production, accounting for over 70% of the total cost 11 commodities, such as soya, most farmers would rather not grow it. The main ingredients for poultry feed can be
found in Table 9 below, together with their estimated current production levels and land use.
of production. The essence of the poultry sector is to transfer a lower and cheaper grade of
protein into a higher, more valuable, grade of protein. The feed which is the lower grade of
protein will have a large impact on the quality of the end-products - the meat and eggs. A Table 9: Cultivation of main ingredient poultry feed in Nigeria
better quality of feed will give a better end-product and the amount of feed produced can No. Crop Surface used (Ha) Production (MT)
limit production in the poultry sector.
Soybean3 952,381 1,000,000
The costs for feed strongly depend on the ingredient prices, which can fluctuate throughout the year. The most
economically efficient way for production in the poultry sector is, therefore, a balance between the following Maize (corn)4 5,564,223 10,700,000
factors: feed, housing, breed and climate (as all these factors contribute to the FCR – Feed Conversation Ratio).
In 2017, approximately 5.3 million tonnes of animal feed was produced in Nigeria; 80% of which was for the Wheat5 60,000 60,000
poultry sector12. As no poultry feed is imported, the sector depends entirely on local production13. Most of the
Cassava6 3,700,000 50,000,000
small-scale farmers use commercial feeds. Some of the medium-sized farms produce their own feed and almost
all of the large-scale farms produce their own feed.
These figures require some further clarification. About 60% of all soybean production is currently used for poultry
Due to the Nigerian poultry sector’s economic prospects, the feed industry is under development. In 2016, OLAM feeds. Nigeria is currently the largest soybean producer in Africa. The yield on average is 1.05 MT/ha, which is low
international commissioned a new, modern milling operation that will be able to produce 720,000 MT annually. compared to other countries, where the yield can reach up to 5 MT/Ha, although it is not clear what the maximum
Both mash and pelleted feeds can be produced. It is expected that more feed mills will be needed to manage the yield in Nigeria is16. About 60% of all Nigerian maize is processed into animal feeds. Another 800,000 MT is
growth of the poultry sector. imported and 200,000 MT is exported. The current average yield is 1.69 MT/Ha. It is possible to reach yields up to
4 MT/Ha, as is achieved in southern Nigeria17.
More accessibility to higher quality feeds can also lower the FCR and reduce the production cost14. Nigeria has
made remarkable progress towards local sourcing of inputs for poultry production, especially in respect of bulk Most of the wheat supply in Nigeria comes from imports, with approximately 5,200,000 MT imported annually.
feed ingredients like maize and soya been. Most feed-mills in Nigeria use locally produced bulk raw materials, The yield of domestic production is around 1 MT/Ha. It is reported that wheat can be harvested with a yield of
but specialty ingredients, such lysine, vitamins, toxin binders and other additives are not produced locally and over 4 MT/Ha, but it is unclear what the maximum yield in Nigeria currently is18. Table 10 below gives a summary
need to be imported. There are several commercial feed producers (some with integrations in the poultry value of other cereals currently produced in Nigeria.
chain) that produce commercial poultry feed in the country. There are also several local producers of premixes and
concentrates, but imported premixes and concentrates are often preferred for reasons of quality.

10 Rabobank, Time for Africa, capturing the African poultry investment opportunity
11 Feed formulation problem in Nigerian poultry farms: a mathematical programming approach oladokun, 2012 15 Feed formulation problem in Nigerian poultry farms: a mathematical programming approach oladokun, 2012
12 USDA, Nigeria animal feed sector 16 Ad Lewisraylaw, Current price of Maize per ton in Nigeria 2019
13 The Nigerian aquafeed industry potentials for commercial feed production 17 The Nigerian aquafeed industry potentials for commercial feed production
14 Feed formulation problem in Nigerian poultry farms: a mathematical programming approach oladokun, 2012 18 Trading economics Nigeria wheat yield
20 21

Table 10: Nigerian Cereal Production limiting factors in the growth of the poultry sector. It has been thought that bringing more expertise to Nigeria’s
feed mills could lower the feed price. The feed mills do not always have an optimal nutrient balance in their
Cereal 2014-2018 Average 2018 2019 Forecast % of total cereal production feeds, leading to a higher FCR, slower growth and higher feed costs. It is also often the case that there is often no
effective biosecurity plan in place. This means significant micro bacterial growth can take place, causing potential
Maize 10,431,000 11,034,000 11,000,000 40.27% health risk for the birds.
The raw materials do not currently undergo sensitivity analysis, so market price fluctuations or variations in
Rice (Paddy) 7,762,000 8,899,000 8,000,000 29.29%
nutrients are not properly taken into account during the formulation, resulting in higher feed and production
Sorghum 6,158,000 6,026,000 6,300,000 23.07% cost23.
Others 1,775,000 2,263,000 2,013,000 7.37% The above-mentioned factors could be solved with more expertise in Nigeria’s feed mills and feed production.
When all processes are optimised, the costs of the raw materials will still, however, have a significant impact on
Total 26,126,000 28,222,000 27,313,000 100%
the final feed price. If certain ingredients increase in price and no cheaper alternatives are available, the feed
Source: FAO GIEWS Cereal Country balance Sheet [Link] price will also have to be increased to make the business profitable for the feed miller. Current prices and the
Nigeria’s cassava industry is more developed and currently the biggest in the world. The national average yield of fluctuations of the main raw materials used in poultry feed can be found in Table 11 below.
cassava is estimated at 13.63 Mt/Ha. The amount of agricultural land has increased rapidly in recent years, with
the area used for farming doubling in the last 38 years. Currently 77.7% of the land in Nigeria is being used for
agricultural purposes19. Although no exact data was found, it is clear that the local production for premix in Nigeria Table 11: Price of main feed ingredients
is developing fast. Premix contains all the essential vitamins and minerals for animal feeds. A lack of crucial
Ingredient Most recent price Price USD/kg Fluctuations in price
vitamins can cause early mortality and slow growth in animals, causing extra costs for farmers. Local producer
(US dollar/100 kg) reported in the last
Hi Nutrients recently received an investment from French company Neovia. With this joint venture they want to
year
increase the production of premix in Nigeria20.
Soybean7 46.07 0.47 30%
Maize (Corn)8 30.30 0.30 40%
3.1.2 Quality of feed
Wheat*9 40.00 0.40 0%*
The quality of feed can strongly influence the production time for broilers and the quantity of eggs produced. A Cassava10 20.00 0.20
longer production time means more costs for housing and labour for the farmer. The quality of feed also has a
*To discourage wheat import, feed millers are required to buy local wheat at a fixed price.
strong impact on the feed conversion ratio (FCR). Feed with a high FCR means that the farmer needs more feed
to produce 1 kg of meat or eggs than feed with a lower FCR.
The Nigerian Standard Council approved new standards for poultry feeds in 2018. The previous standards had The table above requires some clarification. As can be seen, soybean is the most expensive ingredient, which
been set in 2003. The renewed Nigerian Industrial standards pay more attention to nutrient balances in the feed, can be explained by it providing the largest protein contribution to the feed - proteins are usually the most
quality assurance, the right methods of testing and ingredient selection. In Nigeria, feed quality is regulated / expensive ingredient in animal feeds. The significant fluctuations in soybean and maize prices could be caused by
monitored by NAFDAC. A few years ago, commercial feed manufacturers were mandated to state expiry dates on various factors, such as higher market demand or scarcity of supply. The lack of a sensitivity analysis can result in
the labels accompanying feed bags. There has been remarkable compliance with that regulation. significant increases in feed prices.

The new standards include a list of which testing methods should be used. All these methods in accordance with As such, in addition to efforts to lower the cost of feed ingredients, a more important initiative would be one
the international Organisation for Standardisation guidelines. Further guidelines for nutrient requirements for both seeking to stabilise prices or that could cushion the industry against sharp price fluctuations (specifically for maize
layers and broilers are given in different life stages. These guidelines can help feed manufacturers produce better and soya).
quality feeds with better digestibility. These feeds can increase yield while lowering production costs21. Maize prices have doubled during the last decade, thereby encouraging, at least to some extent, increased maize
The Nigerian Standard council further demands that every feed mill in the country have an animal scientist. It has production. Since 2017, however, cases of armyworm disease have affected production. Furthermore, maize is a
also implemented strict regulations on the storage and record keeping of raw materials. In this way the quality of rain-fed crop in most production areas and, as such, the price is affected by seasonality (tied to the rainy season).
feed can be improved together with poultry production in Nigeria22. Maize prices in Nigeria are highest at the onset of the wet season (April to June) and often lowest between
October and December. Soya is grown in Nigeria, with some integrators and quality conscious feed mills recently
A Standard Operating Procedure manual for feed millers was developed by the Nigerian Institute of Animal starting to produce their own soya.
Science, as a first step towards ensuring that a common standard is established for operators in the market,
especially for complete feed. With this, medium- and small-holding farmers can get the most out of the feed they
use. Commercial farms often employ an in-house vet / nutritionist, who develops the feeding regime and rations,
optimised for the bird development stage, be they broilers or layers. Such professionals sometimes prepare their
23 Feed formulation problem in Nigerian poultry farms: a mathematical programming approach oladokun, 2012
own feeds, so quality is maintained and checked at every juncture.

3.1.3 Cost of feeds

Feed in the poultry sector currently accounts for 70% of the total costs. Feed production is seen as one of the

19 CABRI, the role of government in developing agriculture value chains, 2019

20 Trading economics Nigeria wheat yield
21 Nigerian industrial standard, Standard for Poultry feeds
22 Zootecnica international, Outlook of Nigeria’s poultry feed market
22 23

Table 12: Maize & Soya Requirement for Poultry – MMT

3.3 Hatcheries, Breeding and DOC’s
2013 2014 2015 2016 2017 2018 2019 2020
The availability and quality of Day Old Chicks (DOCs) have been considered a weakness in
Total feed MMT 2.588 2.865 3.14 3.426 3.70 3.979 4.262 4.552 the Nigerian poultry sector25. Table 14 below gives a summary of DOC production in Nigeria
Total Maize@ 50% 1.294 1.432 1.57 1.713 1.850 1.989 2.131 2.276 up to 2019.
Total Soya @ 20% 0.518 0.573 0.628 0.685 0.740 0.796 0.852 0.910

Table 14: Hatchery production in Nigeria (broilers and layers)26

The above analysis includes the 4 main raw materials in poultry feeds. Although some of the other raw materials
can have a significantly higher price, they have less effect on the price of the feed because they are used in small 2013 201411 2015 2016 2017 2018 2019
amounts.
During the field visit we collected prices for various feeds (shown in Table 13 below). Variations in prices were
Broiler DOC 171.37 156.72 166.39 175.77 179.55 189.98 199.80
relatively significant, which is testament to the strategy applied by various feed producers to ensure they are
(million)
prepared for price fluctuations in raw materials prices (as shown in Table 11 above). The main factor affecting price
is the cost of ingredients and that varies from one supplier to the next. In addition, due to the lack of standards or Layer DOC 43.43 44.39 45.78 47.02 48.03 49.44 50.63
definition of quality, the formulation can differ, thereby affecting the final price for farmers and, eventually, their (million)
performance.
Total (million) 214.8 201.11 212.16 222.79 227.58 239.42 250.43

Table 13: Spot prices of poultry feed December 201924 Source: Field research NABC and Premier Agribusiness Academy, December 2019

Country Nigeria Cote d’Ivoire

Poor DOC quality can be caused by several factors - poor genetics, inbreeding and nutrient deficiencies in (parent)
stock can result in birds that are weaker and not resilient to change. This can cause a slow growth rate and / or
Min Max Min Max Min Max a high mortality rate, leading to increased costs for the farmer. It should also be considered that DOCs are more
Type of Feed N/kg N/kg EUR/kg EUR/kg EUR/kg EUR/kg susceptible to diseases. Poor hygiene or infected water cause infections and or diseases in the birds, leading to
poor performance. Importing new Grand parent stock could help to diversify the gene pool and create stronger
Broiler starter Feed 125 173 0.31 0.43 0.44 0.46 birds. Even though companies are certified to import such birds most choose not to because it is hard for such
Broiler Feed 125 165 0.31 0.41 0.40 0.44 businesses to become profitable.

Layer starter Feed 101 133 0.25 0.33 0.36 0.40 Hygiene, water and feed have all previously been identified as causes for poor performance of DOCs27, But no
recent information was found on the DOC market and potential problems. In the last few years some international
Layer Feed 109 133 0.27 0.33 0.38 0.44 parties have invested in hatcheries28.

Source: Field research NABC and Premier Agribusiness Academy, December 2019
Table 15 below provides a summary of projected growth based on the assumptions that growth remains constant
from 2018 onwards and that the ratio of broilers and layers is similar to the ratio between demand for meat and
eggs, taking productivity into consideration.
3.2 Vaccines and drugs
Nigeria has a veterinary pharmaceuticals market with a mix of locally produced and
imported products. Due to Nigeria’s size, every pharmaceutical company of repute anywhere
in the world wants to sell in Nigeria. Thus, the nation is awash with brands of products. The
downside, however, is that there has also been an influx of sub-standard products into the
country, with many smuggled through the land borders.
Nigeria has a veterinary vaccines production unit at the Nigerian Veterinary Research Institute, Vom.
Unfortunately, the vaccine plant is under-utilised and plagued with the usual government bureaucracy, so it cannot
meet the needs of the poultry and livestock industry. Local vaccine production would have given the nation
an advantage, because the laboratory would have access to strains of viruses that are peculiar to the Nigerian
environment (thus making the vaccines more effective), but that is not currently the case. The NVRI Laboratory is
the main animal disease analysis laboratory for Nigeria. It is an FAO certified laboratory. 25 Evaluation of Poultry egg marketing in Ikwuano locan government area of Aiba State, Nse-Nelson et al, 2018
26 About hatchery production a lot of contradicting information is available. During this research the DOC production is calculated by multiplying
the (expected) meat and egg consumption with the (expected) population. After that an average slaughter weight of 2kg per broiler and a
production of 270 eggs per cycle per bird and an average egg weight of 60 gram was assumed. It was also assumed that both layers and broilers
had a mortality rate of 5%. Still there are some irregularities between the data of reported poultry products and the calculated produced DOC. It
is expected that these discrepancies are caused because some sources include smuggled poultry products in their data and others not. This is not
always clearly indicated.
24 [Link] 27 Poultry Production Constraints. The case of Esan West Local Government Area of Edo State, Nigeria Adali et al 2002
Model_Approach 28 OLAM Poultry Feed and day old chicks
24 25

Table 15: Projected growth of the DOC production in Nigeria29 Challenges Opportunities
2000 2005 2010 201512 2020 2025 2030 Low yields of raw materials making some ingredients Feed quality standards: Feed quality standards need
scarce and expensive. to be defined that would protect small- and medium-
Forecast Broiler DOC (million) 84 99.75 173.25 166.39 238.35 257.25 286.13
scale farmers from unscrupulous feed mill owners.
Forecast Layer DOC (million) 30.91 35.10 40.07 45.79 52.11 58.98 66.48 These standards should in turn be enforced and
checked regularly.
Total (million) 115 135 213 214 290 316 353
Enforcement of laws, standards and regulation: Poor Feed testing: The government should, following the
Source: Field research NABC* and Premier Agribusiness Academy, December 2019 or the lack of stringent enforcement of laws relating to definition of the feed standards, engage in random
hatcheries, breeders and other input service providers testing to ensure industry players stay honest.
There are several reputable hatcheries in Nigeria, but others operate without brand identity, with some collecting weakens the sector’s ability to provide the quality
eggs from local farmers who have breeder birds and hatch more. As at January 2020, the average price for broiler inputs necessary for better performance.
DOCs was N260 (EUR 0.64) and N200 (EUR 0.52) for pullets (prices per bird). Tax on raw materials / ingredients for feed Input service providers: Diversification of input service
The policy in Nigeria is to promote and incentivise local breeding, but, as the sector is still growing, import of production: The sector is reliant on soya and maize providers is needed. More independent importers,
hatching eggs is still possible. The most common layer breeds include ISA Brown, Bovans, Hyline and Lohman. for feed production. Growth of the sector will rely i.e. not linked to larger integrations, would also allow
The most prevalent broiler breeds include Ross, Arbor Acres, Cobb, Hubbard and Noiler (a dual purpose breed that on bringing the cost of feed down, which will reduce the industry to benefit from competitively priced feed
is locally). production costs. ingredients and products.
Energy: Reliable energy from the grid is often Financing: The financial sector needs better education
unavailable, thereby inhibiting farmers’ ability to with regards to poultry financing, especially in relation
3.4 Challenges and opportunities improve the technology they have and to manage their to financing medium- and small-scale farmers. It is
inputs better. unclear what influence financial education for bankers
Despite the expected demand for poultry products, there are still constraints on the poultry and financiers in Nigeria would have on access to
finance, but awareness of the cash flows and the
sector’s potential growth. Dealing with these challenges can lead to a faster expansion of challenges farmers face might enable local banks to
the Nigerian poultry market. There are also opportunities in the feed sector that could make develop products suitable for the sector.
it worth further investment. An overview the identified inputs challenges and opportunities
Knowledge, training and education: Most farm Refurbished Equipment: European refurbished
can be found in Table 16 below. managers are self-taught or were apprentices in other equipment seems to be on high demand due to the
farms. Practical poultry training is almost non-existent, guarantee on quality.
so it becomes difficult to address better management
Table 16: Opportunities and challenges, inputs of inputs in circumstances where the knowledge is
lacking.
Challenges Opportunities
Access to finance: Most medium- and small-scale
Costs: The feed is expensive and the performance is Growing market because the population and the farmers have to pre-finance their inputs in cash.
often not optimal, leaving farmers with high costs. average income in Nigeria are increasing. A steep Depending on whether they are layer or broiler
increase in the demand for poultry products is farmers, this can weigh heavily on cash flows, as the
expected. production cycles are relatively long. Most small- and
Quality of feed: Feed is often not mixed well, making New (foreign) investments are done in the poultry medium-scale farmers do not have access to finance
the performance low and / or the price unnecessarily sector. Bringing innovation and expertise to the for their inputs, whereas it is often relatively easy for
high. country. large integrations to get financing for inputs.

Restrictions on import feed premix and concentrates. Education and training: A practical training institute,
Without premix or concentrates it can be harder certified and accredited, is needed to offer poultry-
to produce a high-quality local feed. This can limit specific training suited for modern farming. Such an
farmers’ access to feed. institute must be linked to the industry to encourage
and ensure that the courses and education offered
meet industry standards. This would also improve
the employment prospects for all graduates. Such
a practical college should also be linked to tertiary
education systems offering veterinary training courses.

29 About the hatchery production a lot of contradicting information is available. During this research the DOC production is calculated by
multiplying the (expected) meat and egg consumption with the (expected) population. After that an average slaughter weight of 2kg per broiler
and a production of 270 eggs per cycle per bird and an average egg weight of 60 gram was assumed. It was also assumed that both layers and
broilers had a mortality rate of 5%. Still there are some irregularities between the data of reported poultry products and the calculated produced
DOC. It is expected that this discrepancies are caused because some sources include smuggled poultry products in their data and others not. This
is not always clearly indicated.
26 27

4. Production systems
Source of technical
information
Company and
Associates
Sellers of inputs Sellers of inputs Government
extension service
Poultry production in Africa is traditionally kept at a small scale, usually outside with low Source of finance Banks and Own savings Own savings Own savings
inputs. Due to the growing African population and urbanisation, it is no longer possible investors
for all households to keep chickens themselves. To produce poultry products on a larger Breed of poultry Commercial Commercial Commercial Native
scale and bring food to people in cities, the production systems have been intensified.
Food security of owner High Moderate Moderate From low to
Commercial feed was developed, birds were moved inside and more input was used in the moderate
production. As these developments were applied at different levels, the FAO developed
Source: FAO
guidelines to distinguish between different types of production systems. Those guidelines
can be found in the table below, together with their implications for different parts of the • Sector 1: Industrial integrated system with high-level biosecurity and birds / products marketed commercially
production process. (e.g. farms that are part of an integrated broiler production enterprise with clearly defined and implemented
standard operating procedures for biosecurity), e.g. SIPRA and FOANI.
• Sector 2: Commercial poultry production system with moderate to high biosecurity and birds / products usually
Table 17: FAO definitions of poultry production systems
marketed commercially (e.g. farms with birds kept indoors continuously; strictly preventing contact with other
Sectors (FAO / definition) Systems poultry or wildlife).
• Sector 3: Commercial dual-purpose poultry production system with low to minimal biosecurity and birds /
Industrial and Commercial poultry production Village or products entering live bird markets (e.g. a caged layer farm with birds in open sheds; a farm with poultry spending
integrated backyard time outside the shed; a farm producing chickens and waterfowl).

Bio-security • Sector 4: Village or backyard production with minimal biosecurity and birds / products consumed locally.

High Low
Sector 1 Sector 2 Sector 3 Sector 4 Sectors 1 and 2 characterise the commercial production system; sector 3 describes the more intermediate dual-
purpose production system and sector 4 the local backyard system. According to Ministry of Agriculture and
Biosecurity High Mod-High Low Low Fisheries data from 2011, at that time there were 1,771 poultry farms, 998 resellers and 17 industrial companies
Market outputs Export and Urban / rural Live urban / rural Rural / urban active in the poultry sector30.
urban Historically, poultry-keeping in most parts of Nigeria was on subsistence basis. The local backyard rearing of birds,
Dependence on market for High High High Low feeding them with grain and left-over food was prevalent. Over time, the commercial production system gained
inputs attention as poultry-keeping became a means of livelihood. Commercial farms make use of hybrid birds housed in
specially constructed houses, fed with special rations, and kept under intensive care.
Dependence on goods roads High High High Low
It is estimated that there are about 6.6 million households keeping poultry in an extensive way, i.e. matching the
Location Near capital Near capital and Smaller towns and Everywhere. description of sector 4 in the table above. The average flock size in an extensive system is 12 and they have a
and major major cities rural areas vaccination rate of 4%. These households together hold an estimated 78 million birds31. About 60 million birds
Dominates in
cities are kept in semi-intensive production systems, characterized as sectors 2 and 3 from Table 5. No information was
remote areas
found on the level of biosecurity in these types of production systems in Nigeria, so they cannot be distinguished
Birds kept Indoors Indoors Indoors / Part- Out most of the
between. About 1.3 million households keep poultry in this way, with a vaccination level of 13%32.
time outdoors day
There are about 17,000 intensive farms in Nigeria that in total keep about 45 million chickens. The average flock
Shed Closed Closed Closed / Open Open size there is 2,625 birds per farm. This production method fits the description of sector 1 in Table 5. As described,
Contact with other chickens None None Yes Yes all these birds are vaccinated33.

Contact with ducks None None Yes Yes

Contact with other domestic None None Yes Yes
birds 30 RNPA 2011
31 FAO, livestock and livelihoods spotlight Nigeria
Contact with wildlife None None Yes Yes 32 FAO, livestock and livelihoods spotlight Nigeria
33 FAO, livestock and livelihoods spotlight Nigeria
Veterinary service Own Pays for Pays for veterinary Irregular, depends
Veterinarian veterinary service on govt. vet service
service
Source of medicine and Market Market Market Government and
vaccine market
28 29

4.1 Layer Production

Layer farms in Nigeria are becoming bigger, with many farms having hundreds of thousands is lower than in the Netherlands, possibly indicating a low quality of DOC. Environmental conditions, farming
of layer birds. The number of eggs produced by a hen has also been going up, with some techniques, feed and / or other factors cannot, however, be ruled out as a (partial) cause.
farms producing 320+ eggs (hen housed) in the production cycle. Growing depletions are a The farm gate price in Nigeria is 35% lower than in Cote d’Ivoire, but the production costs are also lower. The
major concern to the layer industry and the impact of the increased number of vaccines is price is more than 50% higher than in the Netherlands. This could affect margins.
evident. Separate brooding and growing areas away from laying units are being adopted as a
“bio-security measure”. The rearing depletions are as low as 2% up to 14 weeks, where “All 4.2 Broiler Production
in All out” and separate brooding are practiced.
In organised farms, almost all the broilers are reared on an “All in All out” basis on deep
All layer chicks are fed with chick feed in the form of crumbles for a better start in well-organised farms and that litter. The market weight is stabilising at 1.2 to 1.40 kg dressed weight. All the chicks are
approach will be copied by others in next 3-4 years. fed with pre starter, starter and finisher feed, with 40% of the birds being fed with steamed
Automation in feeding and egg collection is increasing, with well-developed farms going for movement of feed and crumbled feed in the first 3 weeks of life. Pellet broiler finisher is also being used by
from material unloading to the bird. This reduces the contamination levels through the feed bags. Environmental integrators. Mechanical feeding and nipple drinking systems will be adopted in the next few
issues are becoming important, with manure disposal and fly control needing attention. Bigger flocks on farms years. The effect of summer is enormous on broiler performance. Live bird marketing, huge
and pollution issues will encourage factory-type closed and controlled houses in the coming decade.
capital involvement and power availability are combining to delay changes to EC houses
Eggs are still being sold by the unit, with smaller eggs (pullet eggs) at lower prices, but the industry may change across the country.
to a weight-based approach. Breakages and shell strength are becoming important in choosing the brand of
pullets and in designing feed formulations. These issues will become more important as mechanical egg collection For Broiler PS, the number of chicks produced per parent are low with enhanced commercial broiler performance.
replaces manual collections. Broiler parent placements are going up and cage breeding is gaining momentum. Growing parent birds from day
Designer eggs are also becoming more popular, with eggs enriched with Vit E, Selenium and Omega-3 fatty acids old to liquidation entirely in cages is giving the lowest ever grower depletions in broiler breeders, so cage breeding
being produced and marketed. Supermarkets are marketing packs of 6, 12, 15 and 30 eggs. The use of expiry farms will become increasingly popular during the next 5 - 7 years. Even if the debate on banning such cages
date labels also may appear soon on the eggs sold in supermarkets. Table 18 below compares egg production starts now, it may take a decade to reach a decision. The cage dimensions are changed constantly to get better
costs across three countries. performance, with cage mat designs being improved to reduce the number of breakages.
A trend observed in the last 5 years is that feed manufacturers, hatchery owners and marketing companies are
Table 18: Comparative Analysis of general costs layer production attempting their own broiler rearing. The big companies which started as integrators are strengthening themselves
with bigger feed mills and bigger hatcheries, while going for down the line marketing of both frozen chicken and
Nigeria Côte d’Ivoire34 The Netherlands value-added foods.
Layer starter feed (EUR/kg) 0.29 0.38 0.30 Production efficiencies are improving, with the average FCR being below 2.00 and efficient producers now talking
about FCR below 1.7 and targeting an FCR of 1.6 to achieve 2.00 kg weight. Table 19 below shows a comparative
Layer feed (EUR/kg) 0.30 0.41 0.30
analysis of certain aspects of broiler production.
FCR 2.5 2.1735
Feed price (EUR/kg eggs) 0.75 0.65 Table 19: Comparative Analysis of general costs broiler production
Price DOC (EUR/piece) 0.52 1.07 0.23 36
Nigeria Côte The Netherlands
Min hourly wage 37
0.37 0.57 9.44 d’Ivoire41
Average number of eggs per production cycle 27038 32539 35110 Broiler starter feed (EUR/kg) 0,37 0,45 0,2542
Broiler feed(EUR/kg) 0,36 0,42 0,2543
Price of power (EUR/kWh)40 0.11 0.11 0.10
FCR 1,7 1,7 1,7444
Farm gate price (EUR/kg) 1.13 3.05 1.30 9

Feed price (EUR/kg live weight) 0,61 0.74 0,44

Source: Field interviews NABC 2019, Cote d’Ívoire Poultry Sector Study 2019 and others.
Feed in Nigeria is cheaper than in Côte d’Ivoire, but similarly priced to that in the Netherlands. The FCR is higher, Price DOC (EUR/piece) 0,62 0,76 0,2745
however, which could indicate a quality issue with the feed, making the feed price per kg eggs higher.
Min hourly wage46 0,37 0,57 9,44
As with broilers, the price of the DOC is more than double the price in the Netherlands. Quality issues here might
cause a higher production price on top of the higher purchasing costs. The number of eggs produced per cycle Growth time until harvest weight 6 6 57
(approx. 2 kg) in weeks
34 Poultry Sector Study Cote d’Ivoire, NABC 2019
35 Laying hen performance in different production systems; why do they differ and how to close the gap? Results of discussions with groups of
farmers in The Netherlands, Switzerland and France, benchmarking and model calculations.
36 Bijleveld, Brutomarge legkippen in 2018 lager dan in 2017 41 Poultry Sector Study Cote d’Ivoire, NABC 2019
37 [Link] 42 Horne Productiekosten van vleeskuienvlees, een internationale vergelijking
38 Maoba, S. Production performance and profitability analysis of small scale layer projects supported through CASP in Germiston Region Gauteng 43 Horne Productiekosten van vleeskuienvlees, een internationale vergelijking
Province, 2016 44 Horne Productiekosten van vleeskuienvlees, een internationale vergelijking
39 Poultry Sector Study Cote d’Ivoire, NABC 2019 45 Horne Productiekosten van vleeskuienvlees, een internationale vergelijking
40 [Link] 46 [Link]
30 31

Price of power (EUR/kWh)47 0,11 0,11 0,10 they will cause a problem. New actions are being taken to lower the antibiotic use among farmers. Most farmers
comply with protocols but testing kits are scarce and expensive.
Farm gate price (EUR/kg live weight) 1,49 2,13 0,866
Source: Field interviews NABC 2019, Cote dÍvoire Poultry Sector Study 2019 and others.
4.4 Housing and Equipment
The above table mentions various indicators that influence the production price of poultry meat. The numbers can
fluctuate throughout the year and can be influenced by the efficiency of the farmer, season, production methods, Nigeria has a rich blend of local and foreign suppliers of poultry equipment. Over the
price of the commodities and other factors. The average data for these factors does allow us to study differences years, many local companies have attempted to make local equivalents of imported poultry
between countries and identify potential points of improvement and opportunity. housing and equipment, but the technology gap creates a situation where end-users feel
Feed costs in Nigeria are higher than in the Netherlands, but not as high in Côte d’Ivoire. The FCR is the ratio of that the imported equipment is better, though more expensive.
how much feed is needed to gain the same equivalent of chicken mass. The FCR can, therefore, be multiplied by
the feed price to determine the feed price per kg of chicken, to give a fairer comparison between different feeds In all 3 production system types, birds are kept inside for at least the night. Housing conditions can have an
under similar conditions. important impact on growth. Shelter can protect the birds from rain and unfavourable environmental conditions,
but ventilation temperature and ground cover are needed to achieve optimal production. The buildings also need
The growth time can also affect production costs, as, even if the FCR is low, a longer growth time means
to be designed in a way that decreases the risks of biosecurity threats.
relatively higher expenses for labour, housing and electricity. It takes on average of 2 weeks longer in Nigeria
than in the Netherlands for a bird to reach the harvest weight. Labour is cheaper in Nigeria, however, than in the A recent study49 has shown that there is a need for optimal housing facilities in Nigeria. More information
Netherlands, so it is still possible to reduce production costs. No direct cause can be definitively stated for the is needed in what stocking density can be maintained on large-scale farms. Further optimisation of indoor
longer growth times, as the growth cycle can be influenced by various factors, such as feed, feeding, housing, environmental conditions can also help to improve production. No information was found on the layout of the
genetics farming techniques and many others. stalls, so it is possible that improvements can be made there as well, though it seems that stalls are properly
ventilated. Automatic feeders and drinkers are not currently in use. FAO notes that Hen groups are comfortable
During the interviews, several people mentioned that they have experienced a knowledge gap in the poultry at a stock density of three to four birds per square metre. If more space is allowed, a greater variety of behaviour
sector. It is possible that the efficiency of farming is lower because of these knowledge gaps. Bridging these gaps can be expressed. Less space creates stressed social behaviour, allowing disease vulnerability and cannibalism and
could help in pinpointing where the farming process can be improved, increase the growth rate and, therefore, leaving weaker birds deprived of feed or perch space. Individual birds need more room for normal behaviour and
lower costs. adequate exercise than the 22 birds/m2 (0.5 ft2/bird) density currently used in commercial laying cages. Over
DOC prices seem to differ significantly by country. Price of DOC in Nigeria more than double compared to the recent decades, animal welfare concerns have encouraged research on laying cage structures to make designs
Netherlands but lower than in Côte D’Ivoire. Besides the price, several comments were made regarding DOC better suited to the needs of hens, while retaining cost-effectiveness for production.
quality. Low quality can cause high mortality, high FCR and longer growth cycles, making the production costs
higher than the DOC selling price. Table 20: FAO’s50 proposed stocking density by type of bird per/m2
Although the price for chicken meat is substantially higher than in the Netherlands, the price in Nigeria is 20% Chicken Types Floors Space (birds/ m2) Floor space (ft2/bird) Perch Space (Per Bird)
lower than Côte d’Ivoire. Not enough data is available to make a full cost comparison with Côte d’Ivoire, but it is
possible that this lower price forces farmers to make a smaller margin and, therefore, see their income reduced.
Layer 3 3.6 25cm (10 in)
Dual Purpose 4 2.7 20cm (8 in)
4.3 Bio-security conditions for production
Diseases, parasites and other factors regarding bird health is not monitored on a national Meat 4-5 2.1-2.7 15-20cm (6-8 in)
level. 34% of the farmers mention health issues as a major constraint to poultry production.
Source: FAO
They are aware of the risk and therefore take biosecurity measures. Health issues of birds
therefore seem a problem but data was found to confirm this assumption.
During our interviews, we noted that most poultry farmers use open houses, with only a few large farms using the
Biosecurity has significantly improved among Nigerian poultry farmers. With the losses incurred during the bird flu closed system. Several commercial farms have adopted the high-rise pen house, which is also open sided. These
outbreaks, farmers became aware of the importance of proper biosecurity, with most Nigerian farmers embracing high-rise pens have the advantages of better ventilation, improved waste management and better control of
the basic tenets of biosecurity. Most of the production is concentrated in and around south-west Nigeria. Biosecurity access. Most of the drinking systems on the farms visited are open drinking systems, which seems to be the norm.
concerns are most acute in this part of the country, with intensive information campaigns carried out every year. No reference to or association between production / yield and the quality of water was made, so the advantages
of closed drinking systems were not immediately evident for most farmers interviewed.
Large-scale farms take biosecurity measures, with floors being disinfected between batches and the water being
chlorinated. It was reported during our interviews, however, that most farms do not have footbaths or provide
employees with protective clothing and footwear. Furthermore, no quarantine period is established for new birds
and stalls are built closer together than the FAO guidelines.
Antibiotics are freely available in Nigeria without prescription. It is reported that 86% of all farms use antibiotics48.
Nigeria only recently started testing for residues in the eggs and meat. Although residue’s were discovered if

47 [Link]
48 The Trends and Tides of Poultry Farm Building in Makurdi, Benue State, Nigeria Chia et al 2014 49 The Trends and Tides of Poultry Farm Building in Makurdi, Benue State, Nigeria Chia et al 2014
50 [Link]
32 33

4.5 Challenges and opportunities in Production

These factors are drawn from the field interviews conducted in November and December
2019. The factor most mentioned by farmers is finance, with 41% of respondents expressing
difficulty in finding funding for their business or new projects. Accessibility to affordable
loans is often mentioned as a factor limiting the options for investment and growth. Interest
rates are considered too high, making entrepreneurs reluctant to invest further or start up
6. Training, education and knowledge gaps

any new business. This could cause slower poultry sector growth and limit the chances of The federal government of Nigeria continues to promote entrepreneurship amongst its youth
the sector to produce enough to satisfy demand. population. This also includes promotion of involvement in the poultry sector. One way of
Infrastructure was mentioned as a close second, with respondents saying that bad roads limit limiting
transportation possibilities. This can cause feed to arrive too late, with insufficient feed in turn leading to slower doing this is through the promotion of vocational education and skills acquisition. Many
growth rates, higher FCR and increased stress for the birds. All that results in higher costs for the farmers. Bad of the agencies providing credit to young entrepreneurs in the agricultural sector usually
roads also result in extra stress for live birds during transportation, causing additional health risks. If slaughtered require them to first seek some training in the respective vocation (poultry, in this case).
birds arrive at the customer too late, this can cause deterioration of the product, again resulting in financial losses There are a few private institutions offering short-term, hands-on training for prospective
for farmers. poultry farmers. Monotechnics (such as the College of Agriculture) have also recently
Health issues, such as diseases and parasites, were mentioned by 34% of the respondents. Diseases and parasites commenced short-term training for prospective poultry farmers.
can cause risks for bird health, leading to mortality issues or slow growth. Slow growth increases costs for farmers,
while mortality causes them to lose part of their investment. Furthermore, 15% of the respondents said that it is The training required to improve the overall capacity of the poultry industry must target the entire value chain.
hard to find good quality vaccines for an affordable price. The lack of such vaccines causes further health risks for It should develop the capacity of young people to play their roles as farm hands, farm managers, veterinarians,
the birds. etc. Those who take an interest in the respective value chain activities need to be exposed to technical and
According to 33% of the respondents, the price of feed and raw materials is one of the factors that limits sector management skills that make them sufficiently prepared for the market.
growth. Soya and maize prices can fluctuate throughout the year, making it possible for the feed price to increase
abruptly, which in turn causes production prices to go up.
Another production cost often mentioned is electricity. The power from the grid is often found unreliable, so 6.1 Current status of poultry training and education
farms rely on generators and the fuel they consume, making power costs higher than originally estimated. Farmers
that keep layers say the egg glut is also costing them money, as they cannot sell all of their products, resulting in
lower income than they had hoped. Due to high production prices, 27% of the farmers mentioned that they have
From our interviews, the major areas of educational deficit are education for poultry farm
difficulty selling their products for a price that allows them to make profit. attendants and the expertise of senior specialists / consultants. Many attendants who gain
employment with secondary school certificates are totally ignorant about poultry and have
A lack of knowledgeable staff was mentioned as a problem by 18% of the respondents. It is hard to find enough
knowledge to deal with the problems encountered on the farm. Besides the difficulty of involving local people on to learn on the job – at great cost to farm owners. Youths who have acquired the National
the farm, the safety of the surrounding area is also considered a risk. Thefts are often mentioned in the interviews Diploma in Polytechnics tend to prefer supervisory roles. Furthermore, whenever there are
and conflicts with local people also cause problems for farm growth. complex challenges on the farm, many of those who pose as experts or consultants lack the
The quality of the DOCs in Nigeria was seen by 13% of the respondents as a constraint. Farmers mention early skills to fix the problems or to do so on time. This is sometimes due to a lacking skill set.
mortality and health problems in the early life stages, so optimal growth rates are not reached. The distances At other times it is due to a lack of the necessary technology or tools.
between hatcheries and growing farms are often long, causing extra challenges for the birds. Table 21 below gives
a summary of the issues mentioned by the famers in order of priority. In order to establish a thriving poultry sector (or any other sector), a sound knowledge base of education and
training is necessary at four different levels:
Table 21: Challenges in poultry production
Practical hands-on training - also called informal training: The practical hands-on training can be carried out in
No. Constraint for growth of poultry sector Percentage of respondents that mentioned the constraint different ways: in courses of different lengths; on-farm or at a training centre; by separate institutions or as part
of the work of vocational training institutes or colleges; and for different target groups: farmers, farm workers,
Finances 41% extension officers, students and teachers. Duration of courses can be anything from one day to several weeks,
Infrastructure 40% usually depending on the trainee’s previous education level, the type of technology introduced and the possibilities
for farmers or advisors to be involved in longer-term training courses;
Bird health issues 34%
Vocational / Middle Level Training (Certificate / Diploma level): Vocational training leads to certificate or diploma
Feed quality / price 33% levels, usually in training programmes of two or three years. It provides students with a broad base for a mid-level
Cost of electricity 29% career in the poultry industry;

Marketing / farm gate price 27% Higher Agricultural Education (BSc): University-level training usually prepares students for a future life in advisory
or extension services, with governments, in the private sector or with NGOs; and
Lack of educated staff 18%
Post-Graduate Education (MSc, PhD): Graduate education at university (Master’s degree, PhD) leads to specialist
Price and quality of vaccines 15% functions at research organisations, government services, the private sector or NGOs.
Quality and availability of DOC 13% Many of the formal academic institutions offering training in agriculture are often accused of being more
Safety and surroundings 12% theoretical than practical, many graduates having to then seek relevant practical exposure. This issue is being
addressed through the introduction of practical field work during vacation periods, because most of the schools do
Egg glut 10% not have facilities for students to do practical work.
Availability of water 10%
Other27 4% Table 22: Livestock training institutions
34 35

7. Market

Apart from poultry, other sources of animal protein that are well accepted in most parts of Nigeria include beef,
fish and pork. There is competition for market between these animal protein sources. Given the population of
Nigeria, it could be argued that there is a big market for poultry products.

Figure 2: Projected demand mapped against population growth

1,200,000 70%

Population Rural/ Urban (as % of total popn)

60%
1,000,000

Projected Demand in tonnes

50%
800,000

40%
600,000

30%

400,000
Practical, hands on training, Vocational training Higher Agricultural University Education 20%
also called informal training (Certificate / Diploma Education (BSc)
level) (MSc, PhD)
200,000
10%
Animalcare - Funtuna Institute Leventis Foundation29 Federal University of University of Ibadan32
of Poultry and Aquaculture Agriculture Abeokuta
Obafemi Awolowo
Management Technology (FUNAAB)31 0 0%
University - Institute of 2000 2005 2010 2015 2020 2025 2030
(FIPAMAT)28
Agricultural Research and Source: NABC Analysis of Trade Economics, FAO and World Bank Data
Premier Agribusiness Academy Training (IAR&T)30

The current average per capita consumption is 65 eggs and 1.9 kg of poultry meat per year. When compared with
6.2 Existing gaps
the per capita consumption in the Netherlands (approximately 210 eggs and 22 kg of poultry meat in 2017) and

As a result of the validation workshop and the consultation of experts in the field a list with the global average (150 eggs and 13.8 kg of poultry meat per year), it is obvious that there is a wide gap / gulf
knowledge gaps was established. This list can be found below. These gaps would be best to fill. It is however expected that the poultry meat consumption per capita will increase again to the same level
before the oil crisis (2.1 kg per capita per year) due to the increasing middle class. It is reported that many people
addressed in the context of a PPP with the government, academia and the private sector.
in Nigeria do not believe eating eggs has nutritional benefits. It is therefore expected that the amount of eggs
As stated above, the sector will not thrive if the education and training is weak and fails to consumed per capita will remain the same.
address private sector demands.

Education topics
1. Broiler Management
2. Biosecurity Manual
3. Farm Inspection Checklist
4. Feeds and Feeding
5. Litter Management
6. Rearing Manual
7. Record Keeping in Poultry
8. Poultry Brooding Manual
9. Poultry Disease, Prevention and Management
10. Effective Management of Layers
11. Feed mill Management
12. Precision nutrition as a means of profitable poultry farming
13. Mitigating the challenges of heat stress in poultry production
14. Brooding management for maximum livability in poultry production
15. Wealth creation from waste along poultry value chain
36 37

Table 23 below compares the per capita consumption levels for a number of countries across Africa. Farming Nigeria has mostly layer farmers. Most farmers i.e. for both broilers and layers are relatively
Table 23: Poultry meat Consumption (kg/person/year) 52 (comparatively) large, with the smallest flock size starting from 5,000 birds. Cost of
production is high due to the cost of capital, cost of inputs and inefficiencies in the production
Country 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 process.
Côte d’Ivoire 0.92 1.11 1.05 1.51 1.66 2.00 1.99 2.12 2.15 2.21 Traders Due to the size of the farms, most farmers are linked to off-takers that are often themselves
Ethiopia 0.52 0.59 0.53 0.57 0.58 0.56 0.55 0.54 0.53 0.52 processors or have ready markets for sale of poultry meat. Trading is prevalent in the egg
business where large volumes are sold to neighboring countries, with traders having a
Ghana 4.23 5.39 6.49 7.17 7.70 6.41 5.68 5.93 6.12 6.31 significant role to play.
Nigeria* 1.90 2.10 1.80 1.72 1.75 1.75 1.75 1.80 1.85 1.90
Wet markets / Nigeria has underutilised processing capacity, specifically meat processing. There is limited or
SSA average 2.06 2.25 2.31 2.39 2.39 2.43 2.25 2.14 2.13 2.12 Processing no processing of eggs - Nigeria experienced a glut in 2019 which was not properly managed.
Global average 12.40 12.82 13.15 13.24 13.23 13.31 13.67 13.79 13.86 13.93 There is room for development in this regard.

Source: OECD Data, FAO Data, IPRAVI Data and NABC Analysis (2020) Customer Emphasis is put on production as the assumption is that Nigeria does not lack consumers.
Though this may be true, consumer and shopper behaviour with regards to how and where
they purchase poultry products needs further research. The glut in 2019 was experienced in a
Please note that the per capita consumption figure for poultry meat reported (1,9 kg/capita in 2017) in the
market where per capita consumption is at 65 eggs per year (compared to the world average
market is not substantiated, being based only on feedback received during the field visits. It has been mentioned,
of 150). Understanding why and how consumers buy could generate even more customers
however, by several sources. The marked dip in 2010 could be linked to the drop in oil prices and, as such,
from an already large market.
purchasing power for the bulk of Nigeria’s middle class. It is important to keep this in mind when reading the
rest of this chapter, as the consumption of poultry meat is considered a “luxury” in most of Nigeria, consumed at
parties, weddings and other social events.

7.2 Trade in poultry inputs

7.1 Poultry value chain
Trade in poultry inputs in Nigeria is concentrated around the large production areas (Ibadan,
“Increases in the demand for animal-sourced foods are estimated extraordinarily high in Ilora – Oyo State, etc.), for obvious reasons. Most of the traders and input suppliers have a
Africa over the coming decades” (Livestock Data Innovation in Africa Project, 2013). The presence in Lagos, as the commercial capital, and in Ibadan. A major concern in the trade
reality for Nigeria is that meat consumption, particularly chicken consumption, is growing in inputs is the influence seasonality has on the price of commodities and, therefore, its
so fast that capacity is not meeting demand. Growth in Nigeria’s poultry sector is driven by eventual effect on farmers’ cashflows.
a rapidly modernising value chain and the fact that the market is protected from outside
competition. Figure 3 below shows the characteristics of the value chain in Nigeria. 7.2.1 Feed
Figure 3: Characteristics of Nigeria’s poultry sector value chain Approximately 70% of the 258 farmers interviewed expressed dissatisfaction with the price of feed. When
questioned about the availability and quality of feed, they were, however, satisfied, though it was unclear for a
Value Chain Characteristics that define this section of the value chain majority of the farmers what “good quality” meant for them. The type of feed purchased is directly linked to the
type of farmer.
Grains and Nigeria in recent years did not have to import any significant amount of soya. The production
Oilseeds costs and low yields however are a concern because they could keep the cost for feed high. Most small- and medium-scale farmers prefer buying complete feed from distributors licensed to sell branded
Nigeria has the potential for self-sufficiency in maize production for feed. More knowledge products that also do mixing for the clients, as well as from Toll Millers. Large-scale farmers on the other hand
and expertise is needed to increase the production of these products in Nigeria. prefer buying concentrate and mixing the feed themselves.
Interestingly, due to these differences, we observed a very wide variety of inclusion rates in the market, from 5%
to 40% inclusion. Most feed companies and millers, however, indicated that they would only sell high inclusion
Feed This sector is dominated by 3 to 5 large millers that account for over 70% of total feed rate concentrate to good professional farmers that they had already vetted. Table 24 shows the difference in price
produced in Nigeria. A big concern is the issue of Toll Millers33. Most branded feed is based on the level of inclusion compared to the price of complete feed.
on average 67% more expensive than unbranded product sold by Toll Millers. There are
significant price fluctuations (c.a. 30% to 40%) attributed to the price of raw materials.
Quality is not guaranteed for many small- and medium-scale farmers.

Breeding / Nigeria’s breeding and hatchery market is growing rapidly due significant investments by locals
Hatchery and foreign companies. Costs for hatching are due to relatively expensive cost of electricity
which is unreliable.

52 FAO- Livestock data innovation project, Investing in African livestock Business opportunities in 2030-2050, 2013; Rabobank, Food &
Agribusiness Research and Advisory, 2017; WUR & NABC, Regionalization in Poultry Development in Eastern Africa, 2018.
38 39

Table 24: Price of concentrate and feed Source: Field Research NABC 2019
Over 50% of the farmers interviewed expressed satisfaction with the availability and “quality of DOC”. Though
No. Type SKU Price per 25 Price per their definition of quality was also unclear. Table 27 below gives spot prices for DOCs in 2019 (both layer and
kg bag kg broiler DOC).
Naira EUR Naira EUR Table 27: Broiler and Layer DOC prices

Layer 30% inclusion 25 kg Bag 3,580 8.86 143.2 0.35 DOC Price in Naira / Bird Price in EUR / Bird
Layer 40% inclusion 25 kg Bag 4,010 9.92 160.4 0.40 Broiler N260 EUR 0.64
Finished feed 25 kg Bag 3,010 7.45 120.4 0.30 Layer N210 EUR 0.52
Source: Field research NABC 2019 Source: Field Research NABC 2019

Seasonality is another factor that severely affects trade and the price of feed as inputs for production, specifically Given significant investments in the industry by the private sector, good quality DOCs will be available and will
for crops or raw materials for feed. Fluctuations in the price of soya and maize have in the past year been very likely also be competitively priced in view of the competition on the market. The figure below shows forecast
severe; as high as 30% to 40%. This has by extension affected the price of complete feed. The difference occurs growth of DOCs in Nigeria based on the assumption that the sector continues to grow at the same pace as it has
in the wet and hot / dry seasons. Table 25 below shows an indicative price based on research conducted in 2019. done for the past 3 years.

Table 25: Price as affected by seasonality Figure 4: Forecast supply of DOCs53 in Nigeria
No Product Wet Season Hot Season 400 90%
Naira Eur Naira Eur
350 80%

% Share of DOC (Broiler and Layer)

Concentrate N370/ kg 0.93/ kg N370/ kg 0.93/ kg
70%
Complete feed N160/ kg 0.40/ kg N180/ kg 0.45/ kg 300
60%

Number of DOCSs sold

The industry and the government are making significant investments in the sector to ensure that the cost price 250
is not only lower but stable and more predictable. The Federal government has policies in place to ensure crop 50%
farmers produce enough to cater for both feed and food needs, whilst the private sector is being incentivised to 200
produce concentrates locally at competitive prices. 40%
150
30%

7.2.2 DOCs 100 20%

Good yields both for eggs and poultry meat starts with good genetics. Zartech, CHI, Amo, Agrited and Olam are
5 of Nigeria’s largest players in the DOC sector. In 2019 these 5 companies accounted for about 90% of the birds 50 10%
placed on the market. Table 26 below shows a summary of the top 10 companies with regards to placements of
broilers in 2019. 0 0%
2000 2005 2010 2015 2020 2025 2030
Table 26: Companies that place Broiler DOC in 2019

No. Company
Source: NABC Analysis* of FAO data and research 2019
1 Zartech
2 CHI
3 AMO
4 AGRITED
5 OLAM
6 SAYED
7 GLOBUS
8 CBH/ VALENTINE

9 FARM SUPPORT 53 About the hatchery production a lot of contradicting information is available. During this research the DOC production is calculated by
multiplying the (expected) meat and egg consumption with the (expected) population. An average slaughter weight of 2kg per broiler and a
10 FIDAN production of 270 eggs per cycle per bird and an average egg weight of 60 gram was assumed. It was also assumed that both layers and broilers
had a mortality rate of 5%. Still there are some irregularities between the data of reported poultry products and the calculated number of
produced DOC. It is expected that this discrepancies are caused because some sources include smuggled poultry products in their data and others
not. This is not always clearly indicated.
40 41

7.3 Marketing poultry products 7.3.2 Trade in poultry meat

Most of the large integrations in Nigeria also distribute their own products. All of them have Poultry meat competes predominantly with fish as a source of animal-based protein in Nigeria. Following the
their own logistics and warehousing systems that allow them to distribute the products outbreak of HPAI (Highly Pathogenic Avian Influenza) in 2006, the industry took measures to improve biosecurity
and hygiene across the chain, including the slaughtering process. As such, since 2008, Nigeria has made
country-wide. There is no cold chain to speak of, as most of the logistics network is not significant advances in reducing live bird market (LBM) sales in favour of formal slaughterhouses. A number of
refrigerated. The final stage of transport is undertaken by customised small trucks that then large integrations have underutilised capacity in their slaughterhouse operations. It is estimated that the live
deliver the products to stores, usually owned or franchised by large integrations. market is approximately 15% to 30% of the total meat market.
The border closure (since August of 2019) has had a marked effect on the price of birds (slaughtered and live).
7.3.1 Trade in table eggs Table 28 below shows the difference in price before and after the border closure for both live and slaughtered
Per capita egg consumption in Nigeria is 65 eggs per year. This is relatively low compared to the world average of birds.
150 eggs per capita. Eggs are sold per piece and supermarkets sell them in packs of 6, 12, 15, 24 and 30. In 2019
there was a glut reported and most of the farmers were affected by the oversupply of eggs on the market. Some
Table 28: Price for live birds and slaughtered.
traders sold eggs to various neighbouring countries but a lot of eggs were still buried54. It is, however, odd that
Nigeria experienced a glut despite being way below the global average per capita consumption of eggs. This study Price before border Price after border closure
could not establish the exact reason as to why consumption is low, despite the availability of eggs. Sentiments closure
from some farmers and industry players indicate that the low consumption is due to “health concerns” (i.e. eggs as
a contributor to cholesterol) and lack of awareness as to the benefits of eggs. Naira/ kg EUR/ kg Naira/ kg EUR/ kg

With regard to growing demand, significant investment in consumer and shopper awareness is required. The Live bird N 560 to N 580 EUR 1.40 to 1.45 N 650 to N 700 EUR 1.63 to 1.75
entire industry should be engaged and contribute to efforts that would see consumers become more aware of the Slaughtered N 700 to N 800 EUR 1.75 to 2.00 N 900 to N 1,000 EUR 2.25 to 2.50
benefits of eggs. The figure below shows the projected growth in demand for eggs. The assumption made is that
the per capita consumption of eggs will remain constant. Source: Field Research NABC 2019

The LBM has also changed, as most consumers now buy to slaughter the birds at home, rather than in the market
Figure 5: Project demand for eggs in Nigeria where they were purchased (Please note this still happens in certain areas / markets). Poultry meat is still largely
300,000 600,000 considered a luxury product consumed predominantly during weddings, parties and other special occasions. Rightly
so, as chicken meat is the most expensive option, followed by beef then fish55 (1 kg of chicken is N 1,950; 1 kg of
beef is N 1,850 and 1 kg of fish is N 1,500)56.

250,000 1,000,000
The demand for animal protein and poultry specifically in Nigeria will continue to grow, as shown in Figure 6
below. The key is to ensure that poultry meat is priced competitively so it can be the norm, rather than the
exception, for Nigerian households.

200,000 800,000
Population in ,000

Demand in tonnes

150,000 600,000

100,000 400,000

50,000 200,000

0 0
2000 2005 2010 2015 2020 2025 2030

Source: NABC analysis 2019

55 [Link]
54 In order to dispose of the eggs, farmers bury them in the ground, as it is the most convenient form of disposal for them. 56 Note prices might vary dependent on season, retailer and location of purchase.
 42 43

processing, warehousing, consultancy, etc.). Adequate recognition of all elements of the poultry value chain would
aid effective planning and development of the poultry sector. For example, rapid increase in production without
commensurate increase in storage capacity leads to glut and / or wastage.
There is still room to grow consumption within Nigeria and, given the right incentives and business environment,
the sector can thrive and become truly self-sufficient in poultry products within a short time.

7.4 Ban on imports and its effect on market

For a long time, a high percentage of poultry products offered for sale the open markets

2006, 2008,
Nigeria has made
in Nigeria were smuggled in through the land borders. These products were not
necessarily cheaper for the consumer, but they surely offered higher trade margins for the
intermediaries than locally produced chicken. When necessary, these intermediaries would
the industry took significant advances lower their prices to stave off competition from local farmers.
measures to improve in reducing live bird
biosecurity and market (LBM) sales Even though the government banned the importation / smuggling of chicken and turkey, the enforcement of the
hygiene across the in favour of formal ban only became effective from about 2017. The enforcement of the ban was aimed at encouraging the growth
chain, including the slaughterhouses.
slaughtering process and development of the Nigerian poultry industry.
Of most consequence to the sector are the current trade agreements covering imports and exports of maize,
Poultry meat competes predominantly with fish as a source of animal-based protein in Nigeria. Following the cereals, soya, meat and fish. Table 29 below gives a summary of the significant trade deals to which Nigeria is a
outbreak of HPAI (Highly Pathogenic Avian Influenza) in 2006, the industry took measures to improve biosecurity signatory and their nature.
and hygiene across the chain, including the slaughtering process. Table 29: Trade Agreements Nigeria
As such, since 2008, Nigeria has made significant advances in reducing live bird market (LBM) sales in favour Trade Agreement Description Signatories to the agreement Nature
of formal slaughterhouses. A number of large integrations have underutilised capacity in their slaughterhouse acronym
operations. It is estimated that the live market is approximately 15% to 30% of the total meat market.
ECOWAS Economic Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, the Economic
The border closure (since August of 2019) has had a marked effect on the price of birds (slaughtered and live). Community of West Gambia, Ghana, Guinea, Guinea-Bissau, Liberia,
Table 28 below shows the difference in price before and after the border closure for both live and slaughtered Africa States Mali, Mauritania, Niger, Nigeria, Senegal, Sierra
birds. Leone & Togo
Figure 6: Demand and supply of poultry meat in Nigeria
300,000 600,000 AfCFTA Africa Continental Niger, Rwanda, Chad, Angola Central Africa Economic
Free Trade Republic, Comoros, The Republic of Congo, Djibouti,
Agreement Ghana, Gambia, Gabon, Kenya, Mozambique,
250,000 500,000 Senegal, South Africa, Sudan, Mauritania,
Zimbabwe, Cote d’Ivoire, Seychelles, Algeria,
Demand & Production in tonnes

Equatorial Guinea, Lesotho, Morocco, Eswatini,

200,000 400,000 Tanzania, Tunisia, Benin, Burkina Faso, Democratic
Population in ,000

Republic of Congo, Guinea, Liberia, Mali, Somalia,

South Sudan, Uganda, Sao Tome and Principe, Togo,
150,000 300,000
Malawi, Cameroon Cape Verde, Libya, Madagascar,
Zambia, Egypt, Mauritius, Ethiopia, Nigeria, Namibia
and Botswana
100,000 200,000

With respect to commitments made in this trade agreements, Nigeria must balance the need to protect its own
50,000 100,000 industry to spur growth with a willingness to engage with its neighbours as Africa’s largest economy.

0
2000 2005 2010 2015 2020 2025 2030
0
7.5 Waste and offal

Source: NABC Analysis 2019 Waste (chicken fecal matter) is predominantly used by surrounding farms as manure. Most
farmers collect, dry and store the waste in bags, then crop farmers come to collect it when
The entire poultry value chain has experienced organic growth in Nigeria over the years. Formal recognition they need manure. Offal (chicken intestines) is often sold to pig farmers or those rearing
and documentation, however, is only given attention at the beginning and end of the value chain. Much of the catfish in earthen ponds. The heads and legs are often sold to dog owners through pet
ancillary business activities within the value chain go unrecognised and undocumented (e.g. transportation, shops.
44 45

8. Swot Analysis of poultry Trade and 9. Opportunities for Partnership

Investment Health issues, such as diseases and parasites, were mentioned by 34% of the respondents.
Diseases and parasites can cause risks for bird health, leading to mortality or slow growth.
As can be seen in figure 7 below a Swot analysis is presented about the constrains and Businesses active in the veterinary sector providing consultancy, medicines antibiotics etc.
opportunities in the sector. Clear is that the demand for poultry products will increase could partner in with the sector in order to improve bird health
strongly over the coming years. The increased demand will open opportunities to produce
these products. A risk that must be considered is that the consumption of poultry products The price of feed and raw materials is, according to 33% of the respondents, one of the factors limiting sector
growth. Soybean and maize prices can fluctuate (price can vary up to +30% or even more) throughout the
directly correlates with the GDP. During an economic crisis, the consumption per capita
year, leading to sudden price spikes for production costs. The application of software for feed formulation and
can decrease and therefore the expected demand can be lower. This is a risk for producers equipment for testing of raw materials and feed production could lower these costs
especially eggs producers where currently there is a risk for glut. As egg processing currently
A lack of knowledgeable staff was mentioned as a challenge by 18% of the respondents. The majority of farm
is nearly not existent this can be presented as an opportunity to decrease the risk for glut. hands are not trained or educated in poultry farming. Trainings either at the farms or in educational institutions
Also, this could bring new products to the Nigerian market. can help labourers to be more effective in their work.

Increased production of poultry products will open opportunities for the production as well. Currently the quality The quality of the DOCs in the country is seen by 13% of the respondents as a constraint. Farmers mentioned
of the DOCs, health products, cold chain and infrastructure are considered poor. This means these factors can be early mortality and health problems in early life stages. Optimal growth rates are not achieved, with often long
seen as opportunities as well and open up chances for investment. distances between the hatcheries and farms causing extra challenges for the birds. Improved genetics better
infrastructure and new Grand Parentstock can help improving these issues.
The quality of feed is considered good; however it is considered expensive sensitive to price fluctuations. Better
management of the raw materials could reduce the cost of the feed and therefore reduce the production price of Table 30 below provides a summary of the issues mentioned by the farmers.
poultry products.
The possibilities for loans and investments are limited in Nigeria and as most producers indicate it is difficult for Table 30: Summary of the challenges facing the sector
them to make sufficient profit from their enterprises. Solutions must be found to encourage future investments.
No. Constraint for growth of poultry sector Percentage of respondents that mentioned the
constraint
Figure 7: SWOT analysis
Finances 41%
Strengths Weaknesses Infrastructure 40%
Growing demand Lack of local means for investment Bird health issues 34%
Enough meat processing facilities Low quality DOCs Feed quality/price 33%
High quality feed is accessible Limited accessibility to cold chain Cost of electricity 29%
Government is investing in the sector Egg production is glut sensitive Marketing/farm gate price 27%
Limited accessibility to high quality bird health
Lack of educated staff 18%
products
Price and quality of vaccines 15%
Poor infrastructure
Opportunities Threats Quality and availability of DOC 13%

Processing of eggs Consumption is linked to GDP, when the GDP will Safety and surroundings 12%
decrease so will the consumption of eggs and Egg glut 10%
Improvement of cold chain
meat Feed price and therefore price of the
Demand for eggs and meat will grow along with Availability of water 10%
Product quality and price fluctuates
population Other34 4%
Diseases are present.
Production of high quality of DOC
Products improving bird health
46 47

9.1 Opportunities for investments in Nigeria’s Poultry Sector Encourage / Promote all-year round availability of good quality and cost-efficient inputs and / or raw materials for
feed manufacturing; veterinary inputs; good quality DOCs, technology and equipment.
In order to clearly define the opportunities for synergy between Nigeria and the More sector-specific training and education, especially at lowest (poultry attendant / secondary school leaver)
Netherlands, we have split the opportunities for partnership into three areas, i.e. G2G, B2B and highest (expert / specialist) levels. Develop practical training courses / curriculum for farm hands and farm
and civil society, which could play a part in Nigeria’s poultry sector. See Table 31 below for managers.
further details.
9.2 Involvement of the Dutch sector
Table 31: Opportunities for partnership
Some of the constrains and issues that could limit the growth of the poultry sector in
No. Partners Description Nigeria can be seen as opportunities for the Dutch sector as well. In table 32 below the
Dutch and Improved access to finance, especially for medium- and small-holder farmers, with opportunities where the Dutch private sector can play a role are mentioned together with
Nigerian better financing costs and structures for all poultry farmers. Work on financial the instruments of RVO that can be used to encourage these partnerships.
Government training for banks to enable them offer better services to the agriculture sector.
Table 32: involvement of the Dutch sector
Stabilise the policy and regulatory environment to encourage long-term planning
and investments while boosting investor confidence. In addition, make room for Constraint Opportunity Relation to the Instrument of RVO Dutch companies that
refurbished poultry equipment. Dutch sector could be involved
Introduce complementary legislation on two issues that could support growth in DOCs Improvement of There are several Important here is to Hendrix Genetics B.V.
the sector i.e. regulation on refurbished equipment for production and processing expensive the production, DOC producers and bring the Dutch market
purposes, and regulation on bulk importation of vaccines where applicable. Verbeek Hatchery Holland
and of low genetics and geneticists in the in contact with the
quality specialized feeds Dutch sector that are Nigerian sector. This can *For specialized feeds see
Dutch and Develop local markets to further incentivise production and minimise fluctuations for parent stock capable of improving happen through events row below
Nigerian caused by speculator activities. the production and trade missions.
Businesses
Sector-driven promotion of consumption - national campaigns to drive consumption
of poultry products, both eggs and meat. Educate consumers on the benefits of
poultry as a source of protein and demystify the cholesterol issue. Feed Equipment and Several Dutch feed Trade mission and Agraplan B.V.
produced is training for feed producers are active events can bring the
Encourage / Promote all-year round availability of good quality and cost-efficient Cagemax
considered production. in Nigeria. Also Nigerian sector in
inputs and / or raw materials for feed manufacturing; veterinary inputs; good quality expensive formulation software contact with Dutch Champrix B.V.
DOCs, technology and equipment. is sold in the producers of equipment
Darling ingredients (Sonac
Extend biosecurity awareness to all poultry-related businesses i.e. hatcheries, Netherlands and software
& PRO Ingredients)
processors. Facilitate access to technologies and or equipment that improve
biosecurity across the entire value chain. Koudijs Animal Nutrition
B.V.
Trouw Nutrition
Dutch and More sector-specific training and education, especially at lowest (poultry attendant
Nigerian Civil / secondary school leaver) and highest (expert / specialist) levels. Develop practical Ottevanger Milling
society actors training courses / curriculum for farm hands and farm managers. Engineerings
and sector
Develop a practical Training Farm that would showcase / demonstrate Dutch Cold chains Business Dutch Consultants Events and trade Celtic Cooling
associations.
technology and knowhow whilst improving the capacity and knowledge of local opportunities for can advice and missions can bring the
Geerlofs Refridgeration
stakeholders. construction of excecute construction Dutch sector in contact
new facilities of coldstores, blast with the Nigerian
Target “Telephone Farmers” to improve their knowledge and capacity to influence
freezers etc. sector. DGGF could be
the growth and development of their own farms, usually operated by farm hands.
promoted to attract
investments in the
sector
Health High quality Dutch sector could Trade missions and Pas Reform Hatchery
We have prioritised the issues indicated above, listing those we (the authors) think would catalyse greater change products medicines and provide these events can make the Technologies
in the sector and, we hope, lead to faster growth of a sustainable poultry sector in Nigeria. antobiotics can be products Dutch sector aware of
Royal GD
Improved access to finance, especially for medium- and small-holder farmers, with better financing costs and offered business opportunities in
structures for all poultry farmers. Work on financial training for banks to enable them offer better services to the Nigeria
agriculture sector
Stabilise the policy and regulatory environment to encourage long-term planning and investments while boosting
investor confidence. In addition, make room for refurbished poultry equipment.

Develop local markets to further incentivise production and minimise fluctuations caused by speculator activities.

48 49

Constraint Opportunity Relation to the Instrument of RVO Dutch companies that

Dutch sector could be involved

Housing is Consultancy and There are several Trade missions, events Impex Barneveld B.V.
often open new housing consultants and and DGGF can make the
Jansen Poultry Equipment
materials can be equipment providers Dutch sector aware of
(JPE)
provided in the Dutch sector opportunities and attract
investments. VDL Agrotech
Vencomatic group
Egg glut Processing of eggs Numerous food Trade mission can be GI-OVO B.V.
could increase manufactures that organized specifically
MOBA Group
the demand and process eggs are about egg processing, at
prevent glut present in the the same time through
Netherlands the DGGF programme
investment in the sector
can be encouraged

As can be seen in the table above the business opportunities presented will require Nigerian stakeholder to
encounter the Dutch sector. Trade missions and events can encourage stakeholder to network and B2B business.
Both Nigerian stakeholders and representatives of the Dutch sector were asked which events and trade shows they
anticipate as the right place for their networking. The results can be found in table 33.

Table 33: Nigerian Poultry shows

Poultry show Location

Nigerian Poultry Show Abeokute
NIPOLI Ibadan
Aviana Ibadan
West African Agric Summit Lagos
Agra-Innovate Lagos
Nigerian Veterinary Medical Association National Venue rotates around the country
Conference
Animal Science Association of Nigeria Conference Venue rotates around the country
Agrikexpo Abuja

The nature of these events is to encourage stakeholders to network. They consist of exhibitions, technical
sessions, product presentations and B2B meetings. Visitors come from all over the country and international
participants are starting to find their way as well. This makes it a good place for the Dutch sector to meet Nigerian
stakeholders
50

Mackenzie N. Masaki, NABC

Ivo van der Lee, NABC
Hilde Duns, NABC
Francis Toromade, PremierAgri
Dr. Oduntan Ayo, Amo Group
Cover Photograph by [Link]
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Netherlands Enterprise Agency
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© Netherlands Enterprise Agency | October 2020

Publication number: RVO-153-2020/RP-INT

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