By Francis Ogwo
There is an expected drop in poultry yield this year with the recent forex ban imposed by the Central Bank on maize importers.
This was disclosed recently by the National President, Poultry Association of Nigeria (PAN), Ibrahim Ezekiel, while fielding questions from newsmen.
This decision, according to observers, is coming at a time when the country is experiencing a shortage in maize supply due to the increasing impact of the COVID-19 on food availability. This resulted to, just like other food items, a hike in the cost of maize, which is an essential ingredient for poultry feed compounding.
According to Ezekiel, there is a huge challenge currently faced by poultry farmers due to the negative impact of the virus and the shortfall in maize supply.
“It has been a difficult moment for poultry farmers since the pandemic and with this action by the CBN to halt access to FX for maize importers; I do not think the poultry industry will survive.
“Our production output is already declining as many poultry farmers are still trying to recover from the initial loss owing to the pandemic,” he added.
He pleaded with the government to permit a window period for poultry farmers to import maize owing to the scarcity and sudden surge in prices.
Recall that in 2016, Nigeria imposed forex restriction on importation of 41 items, of which maize was included but the government in 2016 gave a window for the importation of maize due to invasion by armyworms resulting in a sharp drop in the country’s production and since then, importers have been importing the crop into the country especially through other West African countries.
Currently, from available statistics, the country is faced with a similar situation as 2019 maize production has been estimated to decline by 25%.
The apex bank says it is enforcing the ban to increase local production, stimulate a rapid economic recovery and safeguard rural livelihoods, which had been negatively impacted amid the COVID-19 pandemic.
However, industry players in the poultry subsector have criticized the decision saying that the industry, which is already on the brink of collapse, will not survive the current market situation if the country fails to open a temporary window.
The Chairman of Delta State Chapter of Poultry Association of Nigeria (PAN), Alfred Mrakpor, also added that the poultry industry is in a critical state.
“The rising cost of maize is threatening livelihoods of small businesses in Nigeria. It is not only poultry farmers’ investments that are threatened but other players in the value chain, thus plunging the economy into deeper crisis,” Mrakpor added.
Nigeria, Africa’s second-largest maize producer after South Africa, is churning out 10.5 million metric tons of maize per annum with a demand of 15 million metric tons, leaving a supply-demand gap of 4.5 million MT annually, data from the Federal Ministry of Agriculture states.
A metric ton of maize in Africa’s most populous nation is currently sold for N160,000 as against N100,000 sold pre-COVID-19, indicating a 60% increase in price.
However, maize farmers are commending the CBN for the immediate ban on the importation of maize into the country.
A former National President of Maize Farmers Association of Nigeria, Tunji Adenola, added that “This is a good move by the apex bank as this will now create more market for maize farmers in the country.
“It will spur investments in the maize value chain as more investors will focus on the subsector,” Adenola said.
In another response, the Country Manager of AFEX Commodities Exchange Limited, Ayodeji Balogun, said the situation will be tough for poultry farmers and the country at large but it is for a better tomorrow owing to the FX volatility.
“We cannot continue to export maize to the detriment of our own farmers. We know the situation is difficult at the moment but it will only be for a short term,” Balogun said.
“It is short-term thing for a long-term gain. We need to bear the pains now for the long-term gain especially with the negative impact of the pandemic and FX volatility,” he added.
Many are of the view that urgent measures should be taken in guaranteeing food security and survival not agriculture even as the country grapples with the harsh economy caused by the ravaging COVID 19.
