Economic Hardship: Nearly 50% of Oyo Poultry Farms Have Shut Down – Poultry Association Head Laments

Nearly half of all poultry farms in Oyo state have been forced to shut down their operations due to rising costs. This alarming statistic was revealed by Omidokun Oyekunle, the chairman of the Poultry Association of Nigeria (PAN) in Oyo, during a recent interview conducted by the News Agency of Nigeria (NAN) in Ibadan, the state capital.

Oyekunle, who serves as the spokesperson for the poultry farmers in the region, pointed out the significant contribution of the poultry industry to Nigeria’s GDP. Poultry farms account for approximately 25 per cent of the country’s economic output. As such, he warned that if the current rate of business closures in the sector is not addressed promptly by the relevant authorities, it could have severe consequences for the nation’s economy.

Oyekunle called upon both the Federal and State Governments to take immediate action. He urged the government to provide much-needed support to those who have already been forced to exit the business while offering encouragement and assistance to those still struggling to keep their operations afloat.

One of the primary challenges facing poultry farmers in Oyo State, according to Oyekunle, is the skyrocketing cost of poultry feeds, particularly maise and soybeans. These raw materials are essential ingredients in the production process. He revealed that most poultry farmers have stopped using newly harvested maise due to its high moisture content, which can negatively impact the production process and the quality of the eggs laid by the birds.

Alternatively, some farmers have resorted to grinding the maise, spreading it out, and waiting several days before adding preservatives. However, Oyekunle noted that even this method is not highly effective, as the unfavourable weather conditions in the region can still affect the feed quality.

The high cost of poultry feeds has directly impacted the profit margins of poultry farmers in Oyo State. Oyekunle explained that the production costs have risen to such an extent that there is no longer enough profit margin to keep the business running sustainably. This has led to many poultry farmers being forced to close down their operations. The resulting decline in the supply of locally produced chicken and eggs further increases the price of these items.

Oyekunle called upon the government to provide soft loans at interest rates no higher than 5 per cent, along with other interventions such as improved access to raw materials and other essential resources.

The decline experienced in Nigeria’s poultry industry is not an isolated case, as several other sectors have reported similar outcomes. Due to the widespread hardship, many major firms have resorted to scaling down operations in Nigeria or exiting the challenging business environment.

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