How Nigeria Can Be Self Sufficient In Poultry Production – PAN President

Dr Ayoola Oduntan, a veterinary doctor and a poultry farmer, is the group managing director of Natnudo Foods. He specialises in poultry and farm animal products. He also heads the Amo Byng companies, which are involved in the poultry value chain. As the president of the Poultry Association of Nigeria, PAN, he spoke with Bukola Idowu on the challenges and capacities of the Nigerian poultry industry.

Some have argued that Nigerian farmers do not have the capacity to meet the consumption demands of the country, how does this appear to you?

All around this country, there are hundreds of abandoned farms, so when people say we cannot meet the consumption demand, I tell them it is not true. Most of the farms in this country are either working in low capacity or have closed down. Almost everyone has an uncle or aunt who used to do poultry, so we need to revive those farms and it is exactly what we are trying to do. There are three kinds of contract farmers, one in which you just buy your products, second in which we supply some of your inputs and buy your products, third in which we give you all your inputs and we buy your products. Right now, to be able to do number two and three, we need the financial sector to actually be prepared to take some risks. Right now, we have not been able to get any bank in Nigeria to be able to provide what is like an anchor borrowers’ scheme. The idea would be that all these abandoned farmers should come back into production, imagine the number of people that it would affect.

Have you reached out to any of the specialised banks for funding?

  

Bank of Industry will say they do not fund primary agriculture. Bank of Agriculture is currently undergoing some restructuring- they have not been active in agriculture. We are hoping that in the post-reorganisation, there would be some improvements; there would be a change of this policy. We are in discussion with Nigeria Incentive based Risk Sharing System for Agricultural Lending (NIRSAL) on an anchor borrowers’ scheme which is between NISRAL and the Central Bank of Nigeria (CBN). If that takes off in collaboration with some of the commercial banks, it should be able to trigger the anchor borrowers’ scheme success and long term growth in the poultry industry, especially the chicken aspect. With that combination, what will happen is that a company like ours will be an anchor. NISRAL will provide a guarantee of the products, CBN will provide the funds, we will supply the products to the farmers; the farmers will groom the birds, mature them and sell the finished products back to us. We will process and sell through our value chain. This is not reinventing the wheel, this is the model that is currently working everywhere in the world where you find successful farmers.

What is the funding gap in the in Nigerian poultry industry?

The industry for chicken is a turnover of N600 million. If we divide that into six cycles a year because broilers will have about five to six cycles a year, we will be looking at a funding gap of about N100 million for broiler which will be the amount of money required to fund one cycle and we say that there are about five or six cycles in a year. We believe that if N100 billion is pumped into the industry, it will yield a global turnover of over a trillion naira.

Any impact of the army worm infestation of corn farms on the poultry business?

The new harvest for maize is not yet out fully. We are expecting it to have huge impact. The size of the impact we do not know yet. The minister of Agriculture said that they are working to contain it, I pray they do because maize is a major problem we have. The price of maize has increased from about N50,000 to N55,000 at the beginning of the season to N110,000 per ton but the price of egg and chicken have remained relatively the same. What it means is that farmers are actually not making money at this time.

What is the level of consumption of maize by the poultry industry?

Our total consumption of maize as a country is about three million tons. The total production of maize in Nigeria is about nine million tons, so we consume between 20 and 30 per cent of the total maize produced in this country. In Nigeria, the statisticians will say an average farming families for maize produces two tons per hectare and the farm has two hectares, so what are we saying, a family producing maize produces four tons of maize. If a family is producing four tons of maize and we are consuming two to three million tons, how many families do we need to produce maize? Out of the four tons they are producing, they are consuming half at home, so we need about a million families to produce maize that is used by the poultry industry. How long will it be for Nigeria to be self-sufficient in poultry products and what can be done to speed up this process?
If we are given the necessary support of funding and raw materials, this industry will be able to provide Nigeria’s poultry needs in a two year period. If there is no support, then maybe two years will become four years. We farmers have managed to stay alive through hard work and commitment, sorrow, tears and blood. We will continue to make that effort. We are working very, very hard to increase capacity across the country. We are replicating our natnupreneur scheme in the different parts of the country over the next three months. We are working very hard, twice as hard as we were working before to be able to bridge the gap. One of the initiatives is the natnupreneur scheme that we have started, on which we are trying to galvanise abandoned farms. We are trying to encourage farmers who were underutilizing their capacity to further improve their capacity. We are trying to encourage farmers who are fully utilizing their capacity to expand, thereby increasing the quantum of chicken available, to be able to bridge that gap.

What is the target of your company in meeting Nigeria’s poultry needs?

We are targeting 10 per cent of the total production over the next five years. We are trying to create a scenario where different categories of people will get to work in the poultry industry. One of the initiatives we have launched is called the “natnupreneur” scheme in which we empower a wide range of entrepreneur farmers. We provide them technical training, business training and then we off take the products. Most of the problems farmers have had over the years is that somebody should buy the products even when they are off season. Now we are setting up a scheme, where they offload the products.  As long as they sign an MoU with us, we give them the chicks at a discount. That helps them grow their businesses faster. We are also trying to empower young new entrepreneurs in selling the products, chicken, sausages and all that. What they need is a freezer, stock, and they will be able to pay themselves a salary of N50,000 a month and there’s a good margin on each of those products. We have the third one for rural which we are working on now for the local farmers in the village. Currently on the rural scheme we have about 250 farmers. On our seller scheme, we only have about 150 to 200 people then we have registrations going to 2000 because there’s a selection process for anybody that applies. It is the selection process that helps. We are not just giving you products to sell; we are training you in business management, customer service which is really why we are anchoring it because we want to ensure that they really become business people. At the end of the day what we expect is they we have 1,000 sellers, 1500 farmers.

Source: Leadership News Paper
http://leadership.ng/business/537607/nigeria-can-self-sufficient-poultry-production-pan-president

Poultry farmers battle high cost of feed, others

The prices of eggs and chickens may rise soon as poultry farmers continue to battle high increase in the cost of production, including feed.

Our correspondent learnt that the crisis in the industry had sent many farmers out of business while some were forced to reduce their capacity by as much as 75 per cent.

The Chairman, Comtrade Group and founder of Ope Olu farms, Mr. Abiodun Oladapo, disclosed in an interview with our correspondent that the business of animal husbandry was becoming too costly because of high cost of feed.

The President, Poultry Association of Nigeria, Dr. Ayoola Oduntan, confirmed this during a recent media briefing to announce the 2016 edition of the Nigerian Poultry Show.

According to the PAN president, the feed makes up 70 per cent of the cost of poultry production, adding that the cost has risen with the high cost of maize and soya beans being used for the material.

“The reason why we have not achieved the level of success we should in the poultry industry is because of the cost of production, 70 per cent of which is accounted for by poultry feed.

“Two years ago, the price of maize was N50,000 per metric tonne, this has increased to N150, 000. Also, soya beans, which sold for N100, 000/MT in 2014, now sells for N150,000/MT.

“In addition to the cost of diesel for generators, prices of pre-mixes keep increasing with the increasing rate of the dollar and many farmers have shut down their businesses because their margins have been wiped out and they cannot transfer the cost to the prices of eggs.”

He anticipated that prices of raw materials would keep rising in the months ahead, compounded by high dollar rate.

A feed mill operator, Alhaji Abdul Kadir, blamed the rising cost on scarcity of maize brought about by exportation of maize seed by farmers.

For soya beans, Oduntan explained that the local demand was 1.2 million MT whereas the country could only produce 700,000MT.

He said the poultry conference, themed ‘Sustaining the poultry industry in an economic recession’, was meant to raise awareness about the importance of poultry and agriculture.

Kadir added that for the first time, the association would introduce a poultry award ceremony to honour journalists and non-governmental organistations and private sector operators that were committed to the agricultural sector.

Rice Revolution Berths in Cross River

Governor Ben Ayade has launched Cross River State into the current rice revolution.

About 18 months ago, precisely May 29, 2015, Professor Ben Ayade, assumed office as the governor of Cross River State, amidst great expectations from the people he was set to lead.

The high expectations were understandably so taking into cognisance the laudable performances recorded by his predecessors, respectively, Mr. Donald Duke and Mr. Liyel Imoke, between May 1999 and May 2015.

The previous administrations anchored their programmes for the economic revival of the state on tourism, and rural development through creation of feeder roads to rural communities; a development which saw to the construction of the multi-billion naira Tinapa Business and Leisure Resort in Calabar, the upgrading of the Obudu Ranch resort, massive urban renewal programmes across the state, and encouraging the private sector investments towards industrialisation and boost in commercial activities.

Despite the promising projections for the state’s economy that heralded the establishment of these projects, especially the Tinapa and the Obudu Cattle Ranch Resort it is doubtful if any dividend has accrued to its coffers since they became operational.

The unforeseen problems associated in running the economic facilities to ensuring profitability aside the dilapidation of infrastructure, especially federal road networks in the state has remained one of the most outstanding socio-economic challenges confronting the state.

From inception, the governor appeared to have good understanding of the monumental task ahead of him, but in his characteristic display of courage he saw the challenges as mere stepping stones towards greater achievements for the state.

“Let me use this opportunity, to announce our signature projects; we shall undertake the construction of a dual carriage super highway from Calabar through Ikom and Ogoja to the Ranch Resort in Obudu. We shall also build a state sea port. We shall do all these and more. In God we trust,” Ayade announced after he was sworn-in at the Calabar International Convention Centre (CICC).

Ayade projects that the road on completion would provide the much evacuation corridor for cargoes from the deep sea port to states in northern Nigeria, and other West and North African countries; apart from opening the hinterland communities from north to south for easier access and economic boom while the deep sea port would create at least 30,000 jobs in the state.

Though not one of the signature projects, the completion of the garment factory, by Ayade’s administration provides hope for the employment of at least 2,000 aimed at adding to wealth creation for the people in an economy caught up by national economic recession.

However, experts have concluded that the future of the nation’s economy resides in diversification from oil to other sources of revenue generation; especially agriculture and solid minerals.

Ayade seems to have bought into this call for diversification hence the decision to launch the state into an unprecedented era of agricultural revolution that would result in food sufficiency for the populace; and enough for use as raw materials for industrial purposes.

For a start, the governor has flagged off a rice revolution in the state which is a major agricultural hub of the country.

On November 4, 2016, Ayade demonstrated what can be described as leadership by example when he inaugurated his rice farm in Obudu and inspected 20,000 hectares of rice farm in Ugboro in Bekwarra Local Government Area in demonstration of a practical approach of launching the state into the league of major rice producers in Nigeria and beyond.

Inaugurating the Ogoja Rice Mill, respectively, in the presence of officials of the Central Bank of Nigeria (CBN) led by the Governor of CBN, Mr. Godwin Emefiele, the governor disclosed that his administration has adopted a policy on rice as propagated by the Federal Government.

“Today, we stand to publicly declare that the people of Cross River support your Rice Anchor Borrowers Programme, and has keyed in fully as a responsive government.

“We support the dream of Mr. President who believes that this country should be self-sufficient in rice production, and he has not only shown reasonable commitment but has followed up with action plans to achieve this vision.”

Ayade who disclosed that his administration has acquired over 18,000 square kilometres of land which it intends to donate to anyone desirous of cultivating rice in the state added: “Taking a cue from Governor of Kebbi State, I have keyed into this presidential initiative by owning my own rice farm today.

“I am sure that by next year, given the number of things we have put on ground, Cross River will have more than enough to feed and export.

“As an extension, I have directed that my 29 commissioners must own at least 20 hectares of rice farm each, while over 1,700 political appointees are expected to own and cultivate at least 10 hectares each to further boost rice production in this state and the country at large.”

Promising that his administration would not fail in its determination to become a major rice producer, the governor said: “We want to assure Mr. President that, with the support of CBN, Cross River State and indeed Nigeria will be self-sufficient in rice sooner than we expected.”

The Chairman, Presidential Committee on Rice and Wheat, who is also the Governor of Kebbi State, Atiku Bagudu, who spoke at the event commended Ayade for his pragmatic roles demonstrated towards making the state and country self-sufficient in rice production.

Bagudu said it was heartening to know that over 73 cooperative groups and 2,183 farmers have already been mobilised in the northern part of the state for dry season farming.

“I am indeed very delighted to see the tremendous work already done by Governor Ben Ayade in Cross River and his strong believe in the programmes of the federal government to reduce poverty and create employment.

“Today, Ayade is leading by example by personally cultivating his own rice farm that will contribute immensely to our effort of becoming self-sufficient.

“The aim of the programme is therefore to create wealth and employment among the citizenry, be major exporter of rice and wheat and ultimately be self-sufficient in rice production before the end of the year,” Bagudu said.

Bagudu recalled the roles played by Ayade while serving in the Senate, stating that he has always been at the forefront of the struggle for better and more prosperous Nigeria.

Promising more incentives for the state, Bagudu said: “Once we see the success achieved, we are ready and willing to bring in more money to the State.

“The essence of the nationwide tour is to determine the level of successes recorded so far since the borrowers programme was launched in Kebbi State last year.”

In keeping with the administration’s policy to create value chain for the state’s rice production, Ayade has flagged off the construction work on a multi-million naira rice mill in Ogoja.

Ayade also performed the groundbreaking for the construction of a rice mill in Ogoja, which he said would be “the first of its kind in Africa, capable of producing wholly vitaminised rice that will incorporate growth hormones for children between the ages of seven and 15, and also enhance their intellectual capacity.

“With the vitamins enhanced plant, specific vitamins and nutrients are going to be incorporated; the vitaminisation process of this mill is going to be bigger business than actually selling the rice.”

Ayade said, “The people of Ogoja are traditionally the number one rice growing people in the South-south of Nigeria, but all the rice cultivated in Ogoja ends up in other states.

“Indeed, it is our rice and we have come to put an end from taking our rice from Cross River to somewhere else and adding to the rice cultivation statistics of other states.”

Ayade said that the product which will be called “Ogoja Rice” will be packaged to reflect the identity and unity of the people.

At the commissioning of the rice mill, Ayade made a clear distinction between the proposed Ogoja Rice Mill and the Calabar Rice City, saying the latter was designed as a research centre for the production of a new hybrid of rice that will have high yield, high disease resistance and targeted at the production of seeds and seedlings.

“The only way we can control the economy completely in a rice value chain is not just to grow rice but to sell seeds, so we need to have a research centre close to the airport because we are hoping to sell seeds to the whole of Africa. But when you produce your seeds, you need to send them to where the heartbeat of rice construction is, which is Ogoja,” Ayade said.

Continuing, he said: “Buhari has demonstrated that if Nigeria can be focused on rice production, we shall indeed, get out of the woods and our continued dependence on foreign rice will be a thing of the past.”

The state Commissioner for Agriculture, Professor Anthony Eneji, who also spoke at the event, stated that the proposed mill would be producing at least five tons of rice per hour, especially for rice farmers and merchants in the northern and central senatorial districts of the state.

Speaking at the event, the Governor of Central Bank, Emefiele, disclosed that CBN has spent over N3 billion, so far, in the programme in the state, stressing that: “Once we see the success achieved, we are ready and willing to bring in more money to the state.”

Emefiele stated that “The essence of the nationwide tour is to determine the level of successes recorded so far since the borrowers programme was launched in Kebbi State last year.”

Commenting on the efforts put in by Ayade towards the realisation of the programme , the CBN governor said ,”Ayade’s effort will serve as a motivational factor to Cross Riverians who are yet to key into this programme to think of owning their personal farms and start growing rice and other essentials produce too.”

Speaking further, the CBN governor said: “This programme is therefore a demonstration of the fact that we can grow our rice, not just the rice, cassava, yam, wheat and even poultry products can also be produced in large quantities because we have the capacity and so, there is no need to spend foreign currencies in importing these items into the country.

“We know, it is not going to be easy but going by the level of successes recorded so far, I can assure you that we shall overcome food crisis in the country.

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1. Stabilizes intestinal flora
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8. Increases the output of production and quality of milk and egg.

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Fertilizer mixing..............................................1-2 sachet/50kg of fertilizer
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Vice President Osinbajo Persuades Russian Farmers to Invest in Local Production

The Vice President, Prof. Yemi Osinbajo, on Thursday, invited Russian farmers to invest in Nigeria, produce and export to Europe to earn foreign exchange.

The Vice President of Nigeria, Prof. Yemi Osinbajo has called on Russian farmers to invest in producing and exporting agricultural produce in the country to earn foreign exchange. Osinbajo implored Russian agric investors during the visit by the Russian delegation led by Mr Alexander Tkachev, the Russian Minister of Agriculture, at the state house in Abuja, that the availability of arable land in Nigeria made the case for improved local agricultural production highly imperative.
According to Osinbajo, “We are just six hours away from Europe by air. Vegetables and Flour can be exported to Europe from here”.
The Vice President asserted that the availability of arable land in Nigeria has made the case for increase in agricultural productivity a realistic and profitable option.

Osinbajo noted that although foreign exchange was a major constraint,  it was more reasonable to produce locally, rather than continue to import, with its significant pressure on dwindling foreign earnings of the country.

“Oil prices have gone down tremendously and yet large amount of foreign exchange is used to purchase food abroad and we have large arable land for agriculture. It won’t make sense if we don’t use the land”, he stated.

Speaking further, Osinbajo highlighted the financial benefits to be accrued if Russian technology is deployed locally, adding that there are better opportunities for economic co-operation between both countries which should not be left untapped.
Both the vice president and the delegation agreed that Nigeria and Russia should deepen the existing diplomatic relations, especially economically, would be mutually beneficial to both countries.

Earlier, the Russian agriculture minister had expressed his country’s willingness to enhance the existing trade relations with Nigeria.
 

Tkachev, who is also the Co-Chair of the Nigeria-Russia Joint Commission, observed that Nigeria-Russia trade volume as at the end of 2015 exceeded 300 million dollars, adding, however, that there were potential for improvement in the years ahead.

The News Agency of Nigeria (NAN) reports that the delegation included the Russian Ambassador in Nigeria, Amb. Nikolay Udovichenko, Russian Deputy Minister of Agriculture, Mr Evgeny Gromyko and officials of Russian firm United Company (Rusal).