ByMr. Akpolu, Ebitari S.

Opportuniti es in the Poultry Value Chain in the Niger Delta

INTRODUCTION World Population is expected to exceed 8 billion people by 2030 up from about 6.1 billion in 2000. With about 5 billion people (75%) living in Urban areas.

Africa with 75% growth will have 1.4 billion people up from 800 million, with an average age of 22 years. Africa is the future; Nigeria is her Giant. The most populous black

nation (7th in the world). World’s 4th fastest growing economy with solid growth –UK Govt. 2011.

Over 170 million potential consumers; with low taxation system – the largest market in Africa. And is still expanding with over N1.3 trillion food imports in 2012, a Demand and Supply shortfall to be exploited.

Nigerians: People who exploit opportunities. Youths who are eager to work, a force for good (POTENTIALS).

THE CHALLENGE of unemployment in the Niger Delta… Unemployment rate is highest in the Niger Delta – NESG 2011 Bayelsa State had the highest unemployment rate of 38% of its

employable population, while Akwa Ibom State had an unemployment rate of 36%, and Rivers State, 32% (BGL Financial Monitor 2011).

• Proportion of people employed– Agriculture (Livestock, Forestry and Fishing Industry): - 44.2% – Trade or selling activities:- - - - 17.4%– Education and Health: - - - - - 7.1%– Services: -- - - - - 9.8%– Administration: - - - - - 5.4%– Transport: - - - - - - 2.2%– Construction:- - - - - - 2.8%– Combination of other activities: - - - 11.1% (Source:

NDRDM).

THE POULTRY VALUE CHAIN COMMODITIES Broilers: effective meat producers…

In 2011, Chicken meat market volume in the Niger Delta alone was well over 43,000 metric tonnes (PIND, 2012).

Market value was estimated at about N32 billion (about $200 million).

Over 75% of this supply came from the South West while another 5% were illegally import (smuggled) frozen chicken.

Percentage demand for the chicken meat was Household :- - - - 60% Fast food outlets:- - - 22% Catering companies:- - - 16% Hotels and others:- - - 2%

LAYERS: efficient eggs producers …Market in excess of 58,000 metric

tonnes of eggs annually in the Niger Delta alone (from available statistics).

Demand is in excess of 38 million crates annually.

Market value estimated at over N27.2b (about $ 170.2m).

Major markets include: Households:- - - 97% Catering companies:- - 2.6% Hotels:- - - -

0.22% Fast food outlets and others:-0.18%

COMMERCIAL HATCHERY BUSINESS – another money spinner…

Over 200 million day old chicks (DOCs) are demanded annually nationwide; over 40 million in the Niger Delta.

The monetary value of this trade in the Niger Delta is put in excess of N6.4 billion (about $40 million) annually.

About 85% of this demand is met by few large hatcheries in the South West.

An estimated 75% of DOC pass to farmers in the Niger Delta through distributors. Thus the farmers in the Niger Delta pay higher for day old chicks.

COMMERCIAL FEED PRODUCTION – the live wire of the poultry industry. All livestock depend and survive on feeds.Over 70% of the cost of production of most

livestock is feed cost.As late as 2000, demand for commercial feed

was well over 4 million Metric tonnes, and has been growing steadily annually.

About 40% of farmers in the Niger Delta depend on their own feed, 60% depend on commercial feed.

Most feed ingredients are readily available in the entire Niger Delta through out the year and also relatively cheap.

2 out of the 10 large branded feed companies are in the Niger Delta.

ANIMAL HEALTH And WELFARE …laboratories, vet. drug stores etc.

Drugs and vaccines production companies. Pharmacists, Animal Scientists

Laboratories and Veterinary clinics Vet. Doctors Para – veterinarians Lab. Technicians etc.

Provides employment for community health workers, sanitary inspectors, animal welfare officers etc.

Products distribution outlets Requires no special equipment and complex skills (except for professional

veterinary practices). Harnessing this item on the value chain can provide employment

for our teaming youths and women.

EQUIPMENT PRODUCTION …another enterprise of its own.

Provide business for engineers, iron mills, technicians, welders, fabricators, plastic companies, carpenters, wood mills, transporters etc.

Products are in demand all-year- round.

Provide employments and enhance skills development and craftsmanship.

Highly profitable and grow the local economy.

PROCESSING, STORAGE, PACKAGING AND MARKETING

Multi disciplinary Employment for workers in the various Processing plants,Branding and Packaging plants Cold rooms, Warehouses,Distribution stores (distributors),Marketers, Other like Plant operators,

Security personnel, transporters,

Challenges of Maximising Opportunities in the Poultry Value Chain

High cost of inputs e.g. feed, DOCs, drugs etc.Lack of quality day old chicks.High cost of equipment.Lack of capital.Lack of laboratories, vaccine failures, inadequate

veterinary personnel and service providers etc.Low level of awareness, due to poor extension

services.Inadequate institutional services and support.Cost of licenses, permits, insurance and certification.Activities of smugglers, middle men etc.

THE WAY FORWARD… Synergy between key players, stakeholders, developmental

partners and actors in the poultry industry which include (but not limited to): Government (Federal, States and local governments). Niger Delta focused MDA and institutions e.g. NDDC, Ministry of

the Niger Delta etc. The Oil and gas companies, oil industry service companies Organised private sector. Financial institutions. Input companies. Agro-allied companies. Multi nationals Research institutions Non Governmental Organisations.

“The only way out of the economic quagmire in Nigeria is for government to stop depending solely on oil and focus on other economic ventures especially agriculture”.– Prof. Charles Soludo

THANK YOU