Cheaper maize offers route to recovery for poultry farmers

Cheaper maize offers route to recovery for poultry farmers

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Read History Go to My Account Log Out Enhanced by Google Agriculture Cheaper maize offers route to recovery for poultry farmers Nigeria’s poultry industry is showing signs of recovery as cheaper maize-based feed is helping farmers resume production and bring more

Listen to this article Share Nigeria’s poultry industry is showing signs of recovery as cheaper maize-based feed is helping farmers resume production and bring more chicken to market.

The decline in the price is offering relief to households squeezed by high food prices, but sustaining it will depend on whether lower grain costs translate into affordable feed and a reliable supply of locally produced poultry.

Chicken prices fell across the Nigerian markets tracked by SBM Intelligence between June and September 2026, helping drive an 11.5 percent quarterly decline in its Jollof Index to N26,178.

In Kano, traders reported that chicken prices dropped from N7,000 to N4,500 per kilogramme.

The report attributed the turnaround partly to cheaper maize-based feed, reopened farms and improved availability of day-old chicks.

Traders also reported a shift towards locally produced poultry from farms in Oyo, Kaduna, Jos and parts of Kano, reducing reliance on frozen chicken distributed through Lagos.

The recovery suggests that lower production costs can restore supply and improve affordability. But it also exposes the industry’s vulnerability to swings in feed prices and shortages of essential inputs.

Affordable feed alone cannot sustain higher output if farmers lack chicks or the money to complete a production cycle.

BusinessDay reported in March 2026 that day-old chick prices had surged 67 per cent in three months, raising concerns about farmers’ ability to restock. The shortage showed how bottlenecks in hatchery supply can prevent producers from expanding even when feed becomes cheaper.

Maize supplies much of the energy in poultry feed, making its price a major determinant of production costs. Soybeans and other ingredients provide protein, while milling, transport and distribution add to the final price.

BusinessDay reported in July 2024 that maize prices had risen to N910,000 per metric tonne from N480,000 a year earlier, an increase of almost 90 percent. Soybean prices also surged, as insecurity, weaker production and high operating costs squeezed farmers’ margins and forced some businesses to close.

The pressure extended to egg production and other poultry products, making animal protein less affordable for consumers.

However, falling grain prices do not automatically translate into cheaper finished feed. In February 2026, poultry farmers called on feed millers to reduce prices after maize and soybean costs declined, arguing that the savings were not being fully passed on. High energy and logistics expenses continued to weigh on feed production.

Some operators have responded by making their own feed. BusinessDay reported in April 2026 that farmers were switching to homemade blends to control costs and protect margins. This approach can help producers who have the technical expertise and purchasing power to source ingredients in bulk, but smaller farms may struggle to achieve similar savings.

The extent to which cheaper maize benefits poultry farmers therefore depends on how quickly feed prices adjust and whether other operating costs continue to absorb the savings.

Farmers must also finance feed, labour, electricity, vaccines and veterinary care before mature birds generate revenue. High borrowing costs and limited access to working capital can delay restocking, while disease outbreaks and mortality reduce the number of birds available for sale.

These constraints are particularly important for smaller producers, whose limited cash reserves leave them more exposed to sudden increases in input costs.

In June 2026, the Federal Ministry of Livestock Development said it would strengthen oversight of approved poultry import allocations and link them more closely to measurable domestic production outcomes. The policy challenge is to build local capacity without creating supply shortages if domestic output cannot meet demand.

The reported shift towards locally produced chicken in Kano suggests domestic farms can gain market share when prices become competitive, and birds are available. But anecdotal reports from traders do not establish whether Nigeria’s total poultry output is rising or frozen chicken imports are declining.

That requires consistent data on domestic production, hatchery output, imports and sales volumes. Without those measures, lower retail prices cannot establish the scale or durability of import substitution.

Import restrictions alone will not guarantee success. If they encourage investment in hatcheries, feed production and farm capacity, they could strengthen domestic supply. If production remains constrained, however, tighter imports could leave consumers facing shortages or renewed price increases.

The festive season will test the recovery. Stronger demand for chicken towards year-end could encourage farmers to expand output, but only if they can secure chicks, feed and financing early enough. A renewed rise in maize prices or a shortage of working capital could quickly limit the supply response.

Cheaper maize has opened a window for recovery, but it is not a solution on its own. The lasting test is whether producers can maintain output as demand rises, making locally produced chicken more affordable without leaving farms vulnerable to the next feed-price shock.

Obidike Okafor is an award winning, seasoned journalist and content consultant. Obidike has left his mark on the global stage, writing for prestigious publications in Nigeria, the UK, South Africa, Kenya, Germany, and Senegal. He also has experience as an editor, research analyst and podcaster.

📰 Original Source Attribution

Reported by businessday.ng.

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