Poultry farmers seek increased financing to boost production capacity in Lagos

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 Key points

• Poultry farmers cite lack of access to finance as a major barrier to expanding production capacity.
• Rising costs of day-old chicks and feed are eroding profit margins.
• Industry stakeholders blame increased imports of frozen poultry for declining local patronage.

Main story

Poultry farmers in Lagos State have called for increased financing and targeted government intervention to enhance production capacity and stabilise the sector.

The farmers, who spoke in separate interviews with the News Agency of Nigeria (NAN) on Monday, highlighted funding constraints, rising input costs, and declining patronage as key challenges affecting the industry.

A poultry farmer based in the Shasha area of the state, Mrs Queeneth Kingsley, identified limited access to capital as a critical factor hindering expansion. According to her, the cost of scaling operations—particularly stocking pens with point-of-lay birds—has become prohibitive for many operators.

She explained that farmers often spend over ₦1 million to stock their pens, noting that she invested ₦1.9 million in January alone. However, such capital, she said, is not always readily available, leaving some poultry facilities underutilised.

Kingsley added that many farmers have resorted to raising day-old chicks to maturity as an alternative, but warned that the rising cost of chicks and feed continues to squeeze profitability.

Providing current market insights, she stated that a day-old chick now costs about ₦3,315, up from ₦2,950 just days earlier, while three cartons of approximately 250 birds sell for over ₦400,000.

Despite these challenges, she maintained that poultry farming remains viable if farmers can scale up operations. According to her, a farm stocked with 1,000 birds could produce about 27 crates of eggs daily, with farm-gate prices currently at around ₦5,300 per crate, offering potential for profitability.

The issues

Farmers point to a combination of structural and market challenges, including limited access to affordable financing, rising feed prices, and increasing costs of day-old chicks. These factors have constrained production capacity and discouraged investment in the sector.

Additionally, the influx of imported frozen poultry products is undermining local producers, leading to reduced demand for home-grown chicken and forcing farmers to lower prices to attract buyers.

What’s being said

Mr Shittu Asimi, an elder statesman in the Poultry Association of Nigeria (PAN), Lagos State chapter, attributed the sector’s struggles largely to the massive importation of frozen poultry products.

He noted that while the cost of inputs continues to rise, local producers are forced to sell at lower prices due to weak demand, creating an unsustainable business environment.

Asimi revealed that the price of day-old chicks has surged from about ₦1,150 earlier in the year to between ₦1,900 and ₦3,000, depending on availability. He added that many farmers are scaling down operations due to high production costs and poor patronage.

He further called for government intervention, particularly in increasing the number of local hatcheries, reducing feed costs, and making agricultural investments more attractive.

What’s next

Industry stakeholders are urging the government to implement policies that will improve access to financing, regulate imports, and support local production through subsidies and infrastructure development.

They also emphasised the need to stabilise input costs and encourage private sector investment in poultry farming to ensure long-term sustainability.

Bottom line

Without urgent financial support and policy reforms, Nigeria’s poultry sector risks further contraction, even as rising demand for affordable protein underscores the need to strengthen local production capacity.