Poultry production challenges, potentials and way forward pan-lagos 2011

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A review of poultry industry in Nigeria and the way forward at Lagos Poultry Association of Nigeria Conference.

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Poultry production challenges, potentials and way forward pan-lagos 2011

  1. 1. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 POULTRY POTENTIALS FOR NATIONAL AGRICULTURAL REVOLUTION 26th Oct 2011 By Dr. Babatunde Bello CIO, PATRA CONSULTPATRA CONSULT Reinforcing the power to excel
  2. 2. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 Objective To review current trend in the Nigerian Poultry industry. To enumerate ways for making the Poultry Industry a cornerstone of National Agricultural Revolution. Outline Historical Overview/Current Trend/Facts Challenges of the Poultry Industry The way Forward. Final OutlookPATRA CONSULT Reinforcing the power to excel
  3. 3. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 HISTORICAL OVERVIEW & CURRENT TREND /FACTS Agricultural Spending of less than 5% of National Budget. The Livestock sub-sector accounts for about 25% of the Agricultural GDP and 5.83 % of the national GDP. (Min of Agric.). Poultry has the greatest potential for growth - Growth projection: Poultry – 10% annual G, Pig= 5%G, Fish=>100%G, Cattle= Flat to 1% Growth. High cost of production, financing and low buying power slowing growth. Demand for animal protein and by extension Eggs/poultry meat will continue to increase. Research favors poultry production over beef/cattle production to meet global protein needs (By economical, environmental and logistic etc considerations).PATRA CONSULT Reinforcing the power to excel
  4. 4. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 HISTORICAL OVERVIEW & CURRENT TREND /FACTS The impacts of Poultry Research (e.g the moribond Shika Breed) and Raw Material Research and Development Council (RMRDC) is yet to be remarkably felt. Import Ban protected local industry from undue competition. Poor data/statistics culture stalls effective national planning. Commercial poultry population Estimates stands at 40 million. Per caput consumption of eggs in Nigeria is abysmally low. Egg Glut persists - Poor marketing activities and occasional “Egg glut” limit growth.PATRA CONSULT Reinforcing the power to excel
  5. 5. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 GLOBAL EGG TOP 5 IN NUMBERS  CHINA – 472.6 Billion PRODUCTION  USA - 90.4 Billion  INDIA - 57.8 (60.0) Billion  MEXICO – 46.7 Billions  INDONESIA- 23.5 Billions COMPARATIVE INDICES- NIGERIA/INDIA NIGERIA INDIA HUMAN POPULATION 155 1210 Millions LAYERS 40 200 Millions EGGS 9,600 60,000 Millions EGGS/CAPITA 61 50 RECOMMENDED 180 180 FEED PRICES /MT #75000(185%) #40500 EGG PRICE FARM GATE #600 (266%) #225/crate of 30. EGG PRICE –CONSUMER #750 #275PATRA CONSULT Reinforcing the power to excel
  6. 6. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 AFRICA EGG /MEAT PRODUCTION – 2008 FAO SOURCE EGG PRODUCTION MEAT PRODUCTION QTY QTY psCOUNTRY ( tonnes) RANK eggs hens COUNTRY ( Tonnes) RANK birds femalesNIGERIA 552,800 1 9213.3 38.4 S.A 974,150 1 487.1 3.9S.A 485,250 2 8087.5 33.7 EGYPT 559,500 2 279.8 2.2EGYPT 240,000 3 4000.0 16.7 MOROCCO 440,000 3 220.0 1.8MOROCCO 195,000 4 3250.0 13.5 ALGERIA 253,000 4 126.5 1.0ALGERIA 190,000 5 3166.7 13.2 NIGERIA 243,250 5 121.6 1.0TUNISIA 89,000 6 1483.3 6.2 TUNISIA 102,500 6 51.3 0.4KENYA 69,000 7 1150.0 4.8 LIBYA 100,000 7 50.0 0.4LIBYA 60,000 8 1000.0 4.2 ETHIOPIA 46,240 8 23.1 0.2BURKINA FASO 48,650 9 810.8 3.4 TANZANIA 45,700 9 22.9 0.2SUDAN 47,000 10 783.3 3.3 MAURITIUS 42,200 10 21.1 0.2 PATRA CONSULT Reinforcing the power to excel
  7. 7. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 COMPARATIVE REVIEW OF THE GLOBAL INDUSTRYTable COMPOUND FEED OUTPUT/PER CAPITA/ PER COUNTRY COUNTRY OUTPUT HUMAN FEED/ (MT)/ANNUM POPULATION CAPITA SOUTH AFRICA 8M 47M 170KG BRAZIL 6M 186M 32KG BRITAIN 9M 61M 147.5KG NIGERIA 1M 148M 6.7KG (UN Estimates) GLOBAL 680M 7.0B (End of Oct. 2011) Sources: Feed Industry Network, Defra National Statistics, Wikipedia Country by Country Population, Feed International and PCPATRA CONSULT Reinforcing the power to excel
  8. 8. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 CHALLENGES OF THE POULTRY INDUSTRY1. RAW MATERIAL LIMITATION: Average 500,000MT Maize, 250,000MT of Soya etccurrently required by the industry per Annum. Should be increasingly available fromfigures below. But NO. Why not? Table.–Commodity production output ‘000MT Maize Millet Sorghum Cassava Soya 2000/1 8188 5839 8365 28473 345 2005 10369 7394 10593 36057 1547 Source – Extract from CBN Statistical Bulletin  ISSUES:  Suboptimal production with future requirement increasing exponentially.  Animals and Humans increase competition for Energy sources/Convectional Feed Ingredients. “Poverty Syndrome”. Maize - Ogi/Akamu, Tuwo, Semovita etc, Soya - Soya Milk, Soya puff, Soya- Iru, Soya-Egusi, Soya meat, Soya-Garri.  Population of Nigerian/Global and Poultry continue to grow: requires a minimum of 100% increase in supply in the out years. Current Level not meeting needs.  Non-Convectional materials have limitation in Commercial quantity/localized availability.  Seasonality = Inconsistency in Availability/Quality  Fluctuating / Escalating Raw Material prices - PATRA CONSULT Reinforcing the power to excel
  9. 9. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 CHALLENGES OF THE POULTRY INDUSTRY 2.LACK OF NATIONAL POLICY ON POULTRY:  Narrow and inefficient focus  Poultry deserve same public executive Species focus as Fish, Cassava etc.  Can the Industry continue to depend on uncontrolled/poorly managed/ill- motivated grain/cereal farming and ‘rogue’ supply chain?  Lack of Subsidy 3.CHANGES IN GLOBAL ENERGY STRUCTURE – Maize for Biofuel and Soya for Biodiesel. International Wheat no longer attractive. How do we cope.? 4.COST OF FUND/INADEQUATE FUNDING – Lending rate must be below 8-10% for Agriculture. How do we make cheap funds and the existing Agric-targeted provisions available for real growth?.PATRA CONSULT Reinforcing the power to excel
  10. 10. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 CHALLENGES OF THE POULTRY INDUSTRY 4. ECONOMIC CHALLENGES LIMITING GROWTH.  Suboptimal Marketing/Conversion of poultry products limit growth. Sales surge limited to Seasonal/festive periods, Recurrent glut, low demand generation, elasticity of demand? – virtually inelastic.  Increased Cost of Production ANTICIPATED.  Low buying power of average Nigerians limit market growth  Poor coordination/collaboration among Stakeholders  Poor processing and storage facilities  Power outage: 20 – 30 % cost adverse.  High unit cost of production.  Can we overcome the cultural fixity and religious bias limiting cattle and piggery respectively.PATRA CONSULT Reinforcing the power to excel
  11. 11. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 CHALLENGES OF THE POULTRY INDUSTRY 5. POOR WORKABILITY AND IMPLEMENTATION OF REGULATORY AND FOOD SAFETY PROVISIONS  Streamlining and Harmonising the Implementation Standards in the Poultry Industry is pertinent against the background of the following -  NAFDAC provisions give Pharmacists statutory roles for sales, distribution, manufacture and dispensing of Veterinary Pharmaceuticals. Including premixes.  Meat Edict empowers the Veterinary officer for meat health or meat hygiene.  Veterinary Surgeon Decree of 1969  The Animal Disease Control decree of 1988.  Animal Science Practice Law.  Sanitary and Phytosanitary Laws  SON Law  How do we streamline and harmonize for effect?  How do we handle the growing concern for Feed borne or Feed related animal and Human Health issues – Salmonella, Mycotoxins, Pesticides, Chemical Residues, Common Source infections etc.  Poor Record Keeping and Disclosure which is keeping the Industry planning process down and regulatory bodies ineffective. PATRA CONSULT Reinforcing the power to excel
  12. 12. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 THE WAY FORWARD 1. Central Planning and Collaborative Process  “Failure to plan is planning to fail”- Brian Tracy  All Poultry stakeholders must teamwork more intensely!  Information System and Database for Planning Purposes  Develop a National Strategic Poultry Plan and sell it to the Federal Govenmnent or go ahead to implement on self regulated private Industry basis. Strategic planning leaves little to chance. Where are we? Where are we going? 2. Strong Advocacy Policy  Budget fund/plan for Influencing policies, Network building.  Third Party Power Negotiation for Reserve Grain Stock Management and Poultry Financing. 3. SecureHeavy subsidy for contract maize and soya production targeted for Poultry Industry.  PAN to form maize farmers into Out-Growers and Cooperatives  Stakeholders to take advantage of Government efforts. Feed-millers to position body as partners to growers.PATRA CONSULT Reinforcing the power to excel
  13. 13. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 THE WAY FORWARD 4. Large Scale Funding and Commercialization of production.  National assembly to promulgate law to Mandate Banks, Oil, GSM and Multinational Companies to invest 5 - 10% of profit directly in Farming.  Agricultural Financial (At less than 8%lending rate) should be more robust to target reducing unemployment.  Adjustment in Land Law to accommodate large scale farming estates and protect Urban/Residential Encroachment. 5. Private sector led and scientific research driven local poultry breed.  Government to establish a poultry development research institute which is to work with PAN’s research unit to coordinate a strategic objective of indigenizing our local poultry breed as is being done in India.PATRA CONSULT Reinforcing the power to excel
  14. 14. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 THE WAY FORWARD 6. Increase Budgetary Allocation to Agriculture  Revolutionize funding of the Agric. Sector, up to 10% of budgetary allocation, and by extension the commercial Poultry. 7. Setting up of Agricultural Commodity and Futures Exchange Commission.  Internalizes and liberalizes Agric. Commodity trading  By/with Government, to domicile and stabilized global raw material market.  Professional Agric/Egg marketing companies. 8. Regulation and Standardization of Poultry Production for export drive  Adoption of Standard Operating Procedure (SOP), Quality Standardization and Trade Regulation, Good Agricultural Practices (GAP) and Inter-farm distances/location and National/local Standards on Animal Disease Control.  Food safety and Introduction of HACCP as minimum standard in feed and poultry production. Standardisation and Regulation (S and R) of Feed Inputs and Products by (1). Standard Organisation of Nigeria (SON) –standard & quality of processes, materials and products (2). National Agency for Food, Drug Administration and Control (NAFDAC) - Pharmaceutical additives, premixes and chemicals. (3). Other supervisory bodies.  Improved the culture of Record Keeping and Record Disclosure must be tackled headlong. All farmers and feedmillers must disclose data through standards format. PATRA CONSULT Reinforcing the power to excel
  15. 15. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 THE WAY FORWARD 9. NATIONAL POULTRY DEVELOPMENT LAW  PAN National (and possibly at state levels) should craft a bill covering the pertinent issues to be presented to the National Assembly.  Self-Regulatory issues, registration, development and surcharging of each stakeholder to fund marketing, research, advocacy (etc) are expected to be captured in the LAW. 10. MARKETING:  Blow your trumpet,  Nobody will blow it for you.PATRA CONSULT Reinforcing the power to excel
  16. 16. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 FINAL OUTLOOK Stakeholders in the poultry and Feed Industry have hitherto left things to chance. The future belongs to those who take their fate in their hands. Rejuvenate PAN National, regional, state and local networks, NOW!!!. Government and stakeholders must come up with an Agriculture policy on poultry industry. A clear-cut policy position is required on the use of biotechnology and genetically modified organisms (GMOs) to support the feed industry, which is entering a very exciting phase of growth for the 2020 economic and food security target. The poultry industry must increasingly use biotechnology, more scientific formulations, new molecules and natural and herbal products to improve animal productivity. Increased regulatory activities and greater involvement of professionals and self regulatory will drive the new level of growth. Commercialization and large scale production (IRRIGATED/OFF-SEASON) to tip economy of scale towards lower cost of production would be crucial. More subsidy (to take care of at least 30% cost of production), More agric-friendly credits and Higher Agricultural spending by Government (minimum 10% budgetary allocation to Agriculture) and other stakeholders would be crucial. Government should forge closer working relationship with PAN and the private sector to move the Industry forward. PATRA CONSULT Reinforcing the power to excel
  17. 17. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 My submissionIsee a bright future.A future right in our hands to shape. THANK YOU.  Dr Babatunde Bello.  Principal Consultant  Patra Consult (Subsidiary of BB PATRA ASSOCIATES LTD), 24 Olayiwola Street, New Oko-Oba. Lagos. Nigeria. Phone: 08023540401. E-mail: bellob@patraconsult.com 26th Oct 2011 at EKO POULTRY SHOWPATRA CONSULT Reinforcing the power to excel
  18. 18. EKO POULTRY SHOW- POULTRY ASSOCIATION OF NIGERIA (PAN) LAGOS: 26th OCT. 2011 BIBLIOGRAPHY  Dr Kotaiah – India  Dr Anand – Amo farm sieberer Hatchery Nig. Ltd  Food situation in the Sahel and West Africa - Sahel and West Africa Club (SWAC/OECD) Feb 2007 publication.  CBN Statistical Bulletin, Vol 16, Dec 2005.  FAO  FEWSNET  FMARD, Crop Department report http://www.ministryofagric.gov.ng/display.php?link=crops  Personal Communication (PC)/Desk Research/Market EstimatesPATRA CONSULT Reinforcing the power to excel

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