Nigerian Feed and Poultry Industry challenges nias 2009

NIGERIAN INSTITUTE OF ANIMAL SCIENCE (NIAS) : 30th JUNE 2009

POULTRY INDUSTRY CHALLENGES: THE WAY OUTPOULTRY INDUSTRY CHALLENGES: THE WAY OUT

3030THTH June 2009June 2009By

Dr. Babatunde BelloCIO, PATRA CONSULT

PATRA CONSULTPATRA CONSULTPATRA CONSULTPATRA CONSULT

PATRA CONSULTPATRA CONSULT Reinforcing the power to excel

3030THTH June 2009June 2009By

Dr. Babatunde BelloCIO, PATRA CONSULT


Objective To review the trend in the Nigerian Poultry industry.

To review challenges of the poultry and feed industry in Nigeria and proffersome solutions.

Outline


Outline

Introduction/Overview of Feed and Livestock Industry

Challenges of the Feed Industry

The way out

Final Outlook


QUOTATION "The economy must improve, the salary must go up. The price of

chicken must go down. A day's salary will buy about 32 eggs herein Nigeria, while a minimum wage worker in America can buy 50crates of eggs with a day's salary."

“….total quantity of feeds produced in South Africa is betweeneight and 10 million tonnes for a population of 40 million. That is250 kg of compound feed per capita. In Nigeria , if we say onemillion tonnes for 100 million people, we have 10 kg of feeds perperson. Feed production is low, prices of chicken and eggs arehigh.“ - Dr. Uzoma Acholonu, a nutritionist and chief executive of Bio-

Organics Nutrients System in a recent publication.


"The economy must improve, the salary must go up. The price ofchicken must go down. A day's salary will buy about 32 eggs herein Nigeria, while a minimum wage worker in America can buy 50crates of eggs with a day's salary."

“….total quantity of feeds produced in South Africa is betweeneight and 10 million tonnes for a population of 40 million. That is250 kg of compound feed per capita. In Nigeria , if we say onemillion tonnes for 100 million people, we have 10 kg of feeds perperson. Feed production is low, prices of chicken and eggs arehigh.“ - Dr. Uzoma Acholonu, a nutritionist and chief executive of Bio-

Organics Nutrients System in a recent publication.


HISTORICAL OVERVIEW OF THE FEED AND LIVESTOCK INDUSTRY

Two and a half decades of History of Agricultural Spending lessthan 5% of National Budget.The Livestock sub-sector accounts for about 25% of the

Agricultural GDP and 5.83 % of the national GDP. (Min ofAgric.). Feed is 70 – 80% of production cost.Commercial Feed milling debuted (the Pfizer story) in Nigeria in

1963 jumpstarting the growth of the poultry industry.Strong collaborations in the early days – Commercial feed millers

Association (COFAN), Industrial Feed Millers Association(IFAN), Poultry Association of Nigeria (PAN) has given way topoor Network and poor Collaboration.High cost of production, low purchasing power and fixity in

Pastoralist grazing/use of basic ingredients (characterized by LowProductivity) limit growth of the Feed Industry.Raw material trade dominated by Middle men/Speculators who

cream all the profit.


Two and a half decades of History of Agricultural Spending lessthan 5% of National Budget.The Livestock sub-sector accounts for about 25% of the

Agricultural GDP and 5.83 % of the national GDP. (Min ofAgric.). Feed is 70 – 80% of production cost.Commercial Feed milling debuted (the Pfizer story) in Nigeria in

1963 jumpstarting the growth of the poultry industry.Strong collaborations in the early days – Commercial feed millers

Association (COFAN), Industrial Feed Millers Association(IFAN), Poultry Association of Nigeria (PAN) has given way topoor Network and poor Collaboration.High cost of production, low purchasing power and fixity in

Pastoralist grazing/use of basic ingredients (characterized by LowProductivity) limit growth of the Feed Industry.Raw material trade dominated by Middle men/Speculators who

cream all the profit.


HISTORICAL OVERVIEW OF THE FEED AND LIVESTOCK INDUSTRY

Cycles of Feedstuffs supply gaps – Protein crisis, Energy Crisis, Micro-nutrient Crisis. 1st Protein crisis -1986/87 and subsequent ones subject of poorplanning by stakeholders in the feed business.

Nigerian ANIMAL FEED MARKET (commercial and self-mixlivestock/poultry/fish feed) is estimated at 1.0M metric tons finished feedequivalent, valued at over =N= 30 billion calculated from average =N= 30,000per ton for cost of raw materials. (see Table 2)

Poultry responsible for 80% of Feed. Subsequently, Feed and Poultry industrygrowth has been characterized by mixed fortunes in the last two decades.

Import Ban protected local industry from undue competition

Growth projection: Poultry – 10% annual G, Pig= 5%G, Fish=>100%G,Cattle= Flat to 1% Growth.

Informal Feed Market – Use of Basic Ingredients/Subsistent Cattle Feeding ispoorly defined. LARGELY UNAVAILABLE.

The impact of Raw Materials Research and Development Council (RMRDC)is yet to remarkably felt.


Cycles of Feedstuffs supply gaps – Protein crisis, Energy Crisis, Micro-nutrient Crisis. 1st Protein crisis -1986/87 and subsequent ones subject of poorplanning by stakeholders in the feed business.

Nigerian ANIMAL FEED MARKET (commercial and self-mixlivestock/poultry/fish feed) is estimated at 1.0M metric tons finished feedequivalent, valued at over =N= 30 billion calculated from average =N= 30,000per ton for cost of raw materials. (see Table 2)

Poultry responsible for 80% of Feed. Subsequently, Feed and Poultry industrygrowth has been characterized by mixed fortunes in the last two decades.

Import Ban protected local industry from undue competition

Growth projection: Poultry – 10% annual G, Pig= 5%G, Fish=>100%G,Cattle= Flat to 1% Growth.

Informal Feed Market – Use of Basic Ingredients/Subsistent Cattle Feeding ispoorly defined. LARGELY UNAVAILABLE.

The impact of Raw Materials Research and Development Council (RMRDC)is yet to remarkably felt.


TECHNICAL OVERVIEW OF THE FEED AND LIVESTOCK INDUSTRYLIVESTOCK POPULATION ESTIMATES (1991 – 2004)*

1990 13,947,000 34,495,000 22,104,000 3,210,000 72,480,856 88,000 936,0001991 14,086,470 35,357,375 22,634,496 3,506,400 76,104,899 88,440 931,320

1993 14,369,608 37,147,342 23,733,989 3,835,786 83,505,651 89,327 922,030

1994 14,513,304 38,076,026 24,303,605 3,989,218 88,100,933 89,773 917,420

1995 14,658,437 38,027,926 24,886,892 3,148,786 92,505,980 90,222 912,833

1996 14,805,022 40,003,624 25,484,177 4,314,738 97,181,279 90,673 908,269 ?

1997 14,953,071 41,003,714 26,095,797 4,487,326 101,987,843 91,125 903,728

1998 15,102,600 42,028,806 26,722,096 4,666,817 107,087,235 91,519 899,187

1999 15,253,625 43,079,525 27,363,426 4,853,488 112,441,597 92,036 894,646

2000 15,406,153 44,256,487 28,020,130 5,047,624 105,294,410 92,431 890,237

2001/2 15,560,214 45,260,399 28,692,613 5,249,529 111,856,193 92,956 885,786

2003/4* 15,560,214 45,260,399 28,692,613 5,249,529 121,856,193** 92,956 885,786 ???

Source: Federal Department Livestock and Pest Control Service Departments, Abuja(2002/4)

*Up-to-date Estimates for all species not available.**New estimates for poultry

Cattle Goats Sheep Pigs Poultry Camels Donkeys

Table 1

Fish


1990 13,947,000 34,495,000 22,104,000 3,210,000 72,480,856 88,000 936,0001991 14,086,470 35,357,375 22,634,496 3,506,400 76,104,899 88,440 931,320

1993 14,369,608 37,147,342 23,733,989 3,835,786 83,505,651 89,327 922,030

1994 14,513,304 38,076,026 24,303,605 3,989,218 88,100,933 89,773 917,420

1995 14,658,437 38,027,926 24,886,892 3,148,786 92,505,980 90,222 912,833

1996 14,805,022 40,003,624 25,484,177 4,314,738 97,181,279 90,673 908,269 ?

1997 14,953,071 41,003,714 26,095,797 4,487,326 101,987,843 91,125 903,728

1998 15,102,600 42,028,806 26,722,096 4,666,817 107,087,235 91,519 899,187

1999 15,253,625 43,079,525 27,363,426 4,853,488 112,441,597 92,036 894,646

2000 15,406,153 44,256,487 28,020,130 5,047,624 105,294,410 92,431 890,237

2001/2 15,560,214 45,260,399 28,692,613 5,249,529 111,856,193 92,956 885,786

2003/4* 15,560,214 45,260,399 28,692,613 5,249,529 121,856,193** 92,956 885,786 ???

Source: Federal Department Livestock and Pest Control Service Departments, Abuja(2002/4)

*Up-to-date Estimates for all species not available.**New estimates for poultry

Note*: Includes the commercial Stock


SECTORAL/ECONOMIC OVERVIEW OF THE FEED AND LIVESTOCK INDUSTRY

Are these figures tenable?Commercial Stock Range From 1% – 20% Of Official Population in

Table 1.Commercial Poultry Population Estimates Of 30m In 2005, Up From

<15m Pre 2000. Significant 5 -10% Decline In Population Early 2006, Due To Avian

Influenza (AI).Compensatory >100% growth in Fish business & Fish FeedLocal production and importation of commercial Fish Feed has risen

from <5000MT in 90s to > 100,000MT in 2007. (PersonalCommunication).

Poultry Industry Now Stabilizing After The AI Shock.Egg Glut persists - Poor marketing activities and occasional “Egg

glut” limit growth.

ISSUES IN THE LIVESTOCK POPULATION ESTIMATES


Are these figures tenable?Commercial Stock Range From 1% – 20% Of Official Population in

Table 1.Commercial Poultry Population Estimates Of 30m In 2005, Up From

<15m Pre 2000. Significant 5 -10% Decline In Population Early 2006, Due To Avian

Influenza (AI).Compensatory >100% growth in Fish business & Fish FeedLocal production and importation of commercial Fish Feed has risen

from <5000MT in 90s to > 100,000MT in 2007. (PersonalCommunication).

Poultry Industry Now Stabilizing After The AI Shock.Egg Glut persists - Poor marketing activities and occasional “Egg

glut” limit growth.


SECTORAL REVIEW – NIGERIAN FEED INDUSTRYESTIMATE FINISHED FEED EQV. MARKET SHARE 2007/8*

COMMERCIAL/SELF-MIX FEED MARKET - METRIC TONNES - FFEAVE PER MONTH PER ANNUM SHARE %

Top 11,000 130,000 13 ) Vital 8,500 102,000 10.2) LSF 4,000 48,000 4.8) BFFM 4,000 48,000 4.8) Animal Care 4,000 48,000 4.8) Amo Byng 2,500 30,000 3.0) Other Regional

Compunders 8,000 96,000 10 ) 50% Toll Millers 25,000 300,000 30 On Farm Self-Mix 16,470 198,000 20 50% _______ ______ ______ Total 83,000 1,000,000 100% Estimate ________ _______ ______ ANNUAL OUTPUT FOR MAJOR COMMERCIAL FEED MILLERS = 400,000 MT FFE NOTE* - Personal Communication - 2008 Survey. *IFAN or COFAN or RMRDC should develop credible database for planning purposes.

Table 2


COMMERCIAL/SELF-MIX FEED MARKET - METRIC TONNES - FFEAVE PER MONTH PER ANNUM SHARE %

Top 11,000 130,000 13 ) Vital 8,500 102,000 10.2) LSF 4,000 48,000 4.8) BFFM 4,000 48,000 4.8) Animal Care 4,000 48,000 4.8) Amo Byng 2,500 30,000 3.0) Other Regional

Compunders 8,000 96,000 10 ) 50% Toll Millers 25,000 300,000 30 On Farm Self-Mix 16,470 198,000 20 50% _______ ______ ______ Total 83,000 1,000,000 100% Estimate ________ _______ ______ ANNUAL OUTPUT FOR MAJOR COMMERCIAL FEED MILLERS = 400,000 MT FFE NOTE* - Personal Communication - 2008 Survey. *IFAN or COFAN or RMRDC should develop credible database for planning purposes.

Source: PC- Desk Research/Market Estimates


SECTORAL REVIEW – NIGERIAN PREMIX SUBSECTORESTIMATE PREMIX MARKET SHARE 2007/8*

AVE OUTPUT/MONTH OUTPUT /ANNUM % SHARE

AGRITED 50MT 600 20?

BIOORGANICS 3OMT 360 12?

ATN 30MT 360 12?

Table 4


HI-NUTRIENT 15MT 180 6?

AGRICARE 10MT 120 4?

BIMBA, GODOMIXDARAM, VIVAX, ETC

90MT 1080 38?

IMPORTED PREMIX 20MT 240 8?

TOTAL 245MT 2940MT 100

Source: PC- Desk Research/Market Estimates


COMPARATIVE REVIEW OF THE GLOBAL FEED INDUSTRY

COMPOUND FEED OUTPUT/PER CAPITA/ PER COUNTRY

COUNTRY OUTPUT(MT)/ANNUM

HUMAN

POPULATION

FEED/

CAPITA

SOUTH AFRICA 8M 47M 170KG

BRAZIL 6M 186M 32KG

Table 3


BRAZIL 6M 186M 32KG

BRITAIN 9M 61M 147.5KG

NIGERIA 1M 148M(UN Estimates)

6.7KG

GLOBAL 680M 6.6B

Sources: Feed Industry Network, Defra National Statistics, Wikipedia Country by CountryPopulation, Feed International and PC


CHALLENGES OF THE POULTRY/FEED INDUSTRY

‘000MT Maize Millet Sorghum Cassava Soya

2000/1 8188 5839 8365 28473 345

2005 10369 7394 10593 36057 1547

Average 500,000MT Maize, 250,000MT of Soya etc currently required by the industryper Annum. Should be increasingly available from figures below. But NO. Why not?

Table 5.–Commodity production output

Source – Extract from CBN Statistical Bulletin


ISSUESISSUES:

Suboptimal production.

Animals and Humans increase competition for Energy sources/Convectional FeedIngredients. “Poverty Syndrome”. Maize - Ogi/Akamu, Tuwo, Semovita etc, Soya - SoyaMilk, 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 -

Source – Extract from CBN Statistical Bulletin


Regional Export – Brothers’ Keeper? The Tropical/Warm/Moist Climate/Vegetation Aids

Infestations/Spoilage of Raw Materials.- Mycotoxin Binders called toaction – additional cost.

Post harvest losses sometimes run up to 5 -10% of production. Questions?..... Can we secure the supply of 1.0m MT of Maize and 400,000MT of Soya

to the Industry in the out years? Can the Industry continue to depend on uncontrolled/poorly managed/ill-

motivated grain/cereal farming and ‘rogue’ supply chain? Changes in Global energy structure – Maize for Biofuel and Soya for

Biodiesel. International Wheat no longer attractive. How do we cope.? Lack of Subsidy: How do we make local agricultural production and

economy more competitive?. Cost of Fund - still high for Agriculture. How do we make cheap funds

and the existing Agric-targeted provisions available for real growth?.



Regional Export – Brothers’ Keeper? The Tropical/Warm/Moist Climate/Vegetation Aids

Infestations/Spoilage of Raw Materials.- Mycotoxin Binders called toaction – additional cost.

Post harvest losses sometimes run up to 5 -10% of production. Questions?..... Can we secure the supply of 1.0m MT of Maize and 400,000MT of Soya

to the Industry in the out years? Can the Industry continue to depend on uncontrolled/poorly managed/ill-

motivated grain/cereal farming and ‘rogue’ supply chain? Changes in Global energy structure – Maize for Biofuel and Soya for

Biodiesel. International Wheat no longer attractive. How do we cope.? Lack of Subsidy: How do we make local agricultural production and

economy more competitive?. Cost of Fund - still high for Agriculture. How do we make cheap funds

and the existing Agric-targeted provisions available for real growth?.



CURRENT LENDING RATES:ARE THEY AGRIC-FRIENDLY? Minimum Rediscount Rate (MRR) - Inter-bank - Commercial Loan - Agric Loan - Micro-Credit –Where do Feed millers fit in.? FEEDMILLING should be treated as

solely agricultural business. Not Manufacturing!!!.

So also its funding - to bring downcost of animal protein production.

Figure 3


CURRENT LENDING RATES:ARE THEY AGRIC-FRIENDLY? Minimum Rediscount Rate (MRR) - Inter-bank - Commercial Loan - Agric Loan - Micro-Credit –Where do Feed millers fit in.? FEEDMILLING should be treated as

solely agricultural business. Not Manufacturing!!!.

So also its funding - to bring downcost of animal protein production.

President Umaru Yar’adua.Recently launched another N50BAgric Credit Scheme. Favourableto Agriculture?



FACTORS 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.Poor funding of marketing functionsLow buying power of average Nigerians limit market growthPoor coordination/collaboration among StakeholdersPoor processing and storage facilitiesPower outage: 20 – 30 % cost adverse.High unit cost of production.Can we overcome the cultural fixity and religious bias limiting

cattle and piggery respectively.


FACTORS 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.Poor funding of marketing functionsLow buying power of average Nigerians limit market growthPoor coordination/collaboration among StakeholdersPoor processing and storage facilitiesPower outage: 20 – 30 % cost adverse.High unit cost of production.Can we overcome the cultural fixity and religious bias limiting

cattle and piggery respectively.


MAKING REGULATORY AND HEALTH PROTECTION PROVISIONS WORK

Streamlining and Harmonising the Implementation of S and R in the Feed Industry is pertinentagainst the background of the following -

NAFDAC provisions give Pharmacists statutory roles for sales, distribution, manufacture anddispensing 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 andHuman Health issues – Salmonella, Mycotoxins, Pesticides, Chemical Residues, CommonSource infections etc.

Poor Record Keeping and Disclosure keeping the Industry planning process down andregulatory bodies ineffective.



MAKING REGULATORY AND HEALTH PROTECTION PROVISIONS WORK

Streamlining and Harmonising the Implementation of S and R in the Feed Industry is pertinentagainst the background of the following -

NAFDAC provisions give Pharmacists statutory roles for sales, distribution, manufacture anddispensing 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 andHuman Health issues – Salmonella, Mycotoxins, Pesticides, Chemical Residues, CommonSource infections etc.

Poor Record Keeping and Disclosure keeping the Industry planning process down andregulatory bodies ineffective.


THE WAY OUT

1. Central Planning and Collaboration Process Information System and Database for Planning Purposes Forced or Self Regulation? – Registration, Monitoring and

Standardization. Pursuance of legislative provisions for empowerment andexecution of programs.

Strategic planning – Leaving little to chance. Where are we? Where are wegoing?

2. Advocacy Influencing policies, Network building. Third Party Power Negotiation for Reserve Stock Management and

Financing.

3. Heavy subsidy and Assisted growth for Maize and SoyaFarmers. Form Farmers into Out-Growers and Cooperatives Stakeholders to take advantage of Government efforts. Feed-millers to

position body as partners to growers.


1. Central Planning and Collaboration Process Information System and Database for Planning Purposes Forced or Self Regulation? – Registration, Monitoring and

Standardization. Pursuance of legislative provisions for empowerment andexecution of programs.

Strategic planning – Leaving little to chance. Where are we? Where are wegoing?

2. Advocacy Influencing policies, Network building. Third Party Power Negotiation for Reserve Stock Management and

Financing.

3. Heavy subsidy and Assisted growth for Maize and SoyaFarmers. Form Farmers into Out-Growers and Cooperatives Stakeholders to take advantage of Government efforts. Feed-millers to

position body as partners to growers.


THE WAY OUT

4. Large Scale Commercialization of grains andCereals production. National assembly to promulgate law to Mandate Multinational

Coys to invest 5 - 10% of profit directly in Farming. Oil Companies should invest in Alternative Energy through

growing their grains. Adjustment in Land Law to accommodate large scale farming.

5. Science-Led Cereals Production Biotechnology assisted growth Increased research into development and commercial

production of Alternative protein and energy sources A Challenge to RMRDC and other stake holders


4. Large Scale Commercialization of grains andCereals production. National assembly to promulgate law to Mandate Multinational

Coys to invest 5 - 10% of profit directly in Farming. Oil Companies should invest in Alternative Energy through

growing their grains. Adjustment in Land Law to accommodate large scale farming.

5. Science-Led Cereals Production Biotechnology assisted growth Increased research into development and commercial

production of Alternative protein and energy sources A Challenge to RMRDC and other stake holders


THE WAY OUT6. Increase Budgetary Allocation to Agriculture, particularly

grains and food production. Revolutionize funding of the Crop Department of FMARD. i) Production and distribution of 1.72 tonnes of Foundation stocks of Groundnut

to 16 groundnut growing States;ii) Production of 9 tonnes of Certified Seeds of Cotton(http://www.ministryofagric.gov.ng/display.php?link=crops)- CAN BEBETTER!!!

7. Setting up of Commodity and Futures Exchange should beconsidered By/with Government, to domicile and stabilized global raw material market. Professional Agric/Egg marketing companies.

8. Material substitution/Alternative Feed Ingredients Development– See Table 4

Heavy investment in research, breed improvement and commercialization. Sorghum – research for improved variety? Cassava – Flaking? Pre-Cooking? plus Binders such as oil, molasses? Cotton Seed - Research for improved variety? Cellulose Energy derivatives – Product of DRY STATE FERMENTATION of fibers?

This is a Clarion call on RMRDC! Stakeholders!! And Government!!!


6. Increase Budgetary Allocation to Agriculture, particularlygrains and food production. Revolutionize funding of the Crop Department of FMARD. i) Production and distribution of 1.72 tonnes of Foundation stocks of Groundnut

to 16 groundnut growing States;ii) Production of 9 tonnes of Certified Seeds of Cotton(http://www.ministryofagric.gov.ng/display.php?link=crops)- CAN BEBETTER!!!

7. Setting up of Commodity and Futures Exchange should beconsidered By/with Government, to domicile and stabilized global raw material market. Professional Agric/Egg marketing companies.

8. Material substitution/Alternative Feed Ingredients Development– See Table 4

Heavy investment in research, breed improvement and commercialization. Sorghum – research for improved variety? Cassava – Flaking? Pre-Cooking? plus Binders such as oil, molasses? Cotton Seed - Research for improved variety? Cellulose Energy derivatives – Product of DRY STATE FERMENTATION of fibers?

This is a Clarion call on RMRDC! Stakeholders!! And Government!!!


THE WAY OUT 9. Regulation and Standardization of the Supply Chain and production

Registration of Supply Chain Operators, Quality Standardization and Trade regulation. Comprehensive Poultry and Feed Industry Sanitation – 1oFocus/Primary Objective - Animal and Human Health/Well-being. 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, materialsand products (2). National Agency for Food, Drug Administration and Control(NAFDAC) - Pharmaceutical additives, premixes and chemicals. (3). Other supervisorybodies. Feed Manufacturers – Commercial, Toll Mixers, On-Farm Producers Feed standards and specifications: One Feed Quality Standard for ALL.

Nutritional Labeling, Certificate of analysis, Standardization of processesetc

Accreditation and Certification of Laboratory. Harmonized efforts. State and Individual Laboratories must be certified. May raise “Bar” above minimum

national standard, but not below. Culture of Record Keeping and Record Disclosure must be tackled headlong. All farmers

and feedmillers must disclose data through standards format. – production records etc.


9. Regulation and Standardization of the Supply Chain and production Registration of Supply Chain Operators, Quality Standardization and Trade regulation. Comprehensive Poultry and Feed Industry Sanitation – 1oFocus/Primary Objective - Animal and Human Health/Well-being. 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, materialsand products (2). National Agency for Food, Drug Administration and Control(NAFDAC) - Pharmaceutical additives, premixes and chemicals. (3). Other supervisorybodies. Feed Manufacturers – Commercial, Toll Mixers, On-Farm Producers Feed standards and specifications: One Feed Quality Standard for ALL.

Nutritional Labeling, Certificate of analysis, Standardization of processesetc

Accreditation and Certification of Laboratory. Harmonized efforts. State and Individual Laboratories must be certified. May raise “Bar” above minimum

national standard, but not below. Culture of Record Keeping and Record Disclosure must be tackled headlong. All farmers

and feedmillers must disclose data through standards format. – production records etc.


THE WAY OUT Meeting and supporting regulatory bodies statutory demands/roles and certification

processes. Crop Planting, Harvesting and Storages level – S & S Measures, GMO regulation, Use

of Herbicides, Pesticides – Phostoxin tainting of Maize Feedstuff Production, Distribution, and Marketing – e.g. Affcots, Dalhatus &

Middlemen Feed and Premixes Production, Distribution and Marketing.- All Feed Mills, Distributors

Toll mixers dilemma. Major Issues: Child of circumstance created by cumulative failure of commercial feed-millers and economic

pressure. And of course, failure of regulatory bodies. Unregulated, Quality not guaranteed Low to Non-existent Good Manufacturing Practices (GMP). “Common source” factor in spread of epizootics: e.g. Soiled/Contaminated re-used feed bags

circulating between farms. Must be compelled to use new bags/ washed, disinfected and driedbags/ bulk delivery systems among other quality process demand.

Closing the Self-Mix gap Control of self-mix to be integrated into the Quality, Health and Safety cycle. No stand alone. Buy use only certified Raw Materials/Feed Inputs. SON or NAFDAC or RMRDC’s “Monitoring and Laboratory Certification Program”

BENEFITS – S & S Measures, GMO Regulation and HACCP facilitate export market,Protect Animal and Consumers’ Health.


Meeting and supporting regulatory bodies statutory demands/roles and certificationprocesses. Crop Planting, Harvesting and Storages level – S & S Measures, GMO regulation, Use

of Herbicides, Pesticides – Phostoxin tainting of Maize Feedstuff Production, Distribution, and Marketing – e.g. Affcots, Dalhatus &

Middlemen Feed and Premixes Production, Distribution and Marketing.- All Feed Mills, Distributors

Toll mixers dilemma. Major Issues: Child of circumstance created by cumulative failure of commercial feed-millers and economic

pressure. And of course, failure of regulatory bodies. Unregulated, Quality not guaranteed Low to Non-existent Good Manufacturing Practices (GMP). “Common source” factor in spread of epizootics: e.g. Soiled/Contaminated re-used feed bags

circulating between farms. Must be compelled to use new bags/ washed, disinfected and driedbags/ bulk delivery systems among other quality process demand.

Closing the Self-Mix gap Control of self-mix to be integrated into the Quality, Health and Safety cycle. No stand alone. Buy use only certified Raw Materials/Feed Inputs. SON or NAFDAC or RMRDC’s “Monitoring and Laboratory Certification Program”

BENEFITS – S & S Measures, GMO Regulation and HACCP facilitate export market,Protect Animal and Consumers’ Health.


FINAL OUTLOOK The poultry and feed industry will need to encourage the current trend of increased

crop production (In spite of the break in Progression) and deploy mechanism tosecure stock of ingredients.

The poultry industry must increasingly use biotechnology, more scientificformulations, new molecules and natural and herbal products to improve animalproductivity.

Stakeholders in the poultry and Feed Industry have hitherto left things to chance. Thefuture belongs to those who take their fate in their hands. Revive COFAN!!!.

Government and stakeholders must come up with an Agriculture policy on the use ofbiotechnology and genetically modified organisms (GMOs) to support the feedindustry, which is entering a very exciting phase of growth for the 2020 economic andfood security target.

Increased regulatory activities and greater involvement of professionals and selfregulatory will drive the new level of growth.

Commercialization and large scale production (IRRIGATED/OFF-SEASON) to tipeconomy of scale towards lower cost of production would be crucial.

More subsidy (to take care of at least 30% cost of production), More agric-friendlycredits and Higher Agricultural spending by Government (minimum 15% budgetaryallocation to Agriculture) and other stakeholders would be crucial.


The poultry and feed industry will need to encourage the current trend of increasedcrop production (In spite of the break in Progression) and deploy mechanism tosecure stock of ingredients.

The poultry industry must increasingly use biotechnology, more scientificformulations, new molecules and natural and herbal products to improve animalproductivity.

Stakeholders in the poultry and Feed Industry have hitherto left things to chance. Thefuture belongs to those who take their fate in their hands. Revive COFAN!!!.

Government and stakeholders must come up with an Agriculture policy on the use ofbiotechnology and genetically modified organisms (GMOs) to support the feedindustry, which is entering a very exciting phase of growth for the 2020 economic andfood security target.

Increased regulatory activities and greater involvement of professionals and selfregulatory will drive the new level of growth.

Commercialization and large scale production (IRRIGATED/OFF-SEASON) to tipeconomy of scale towards lower cost of production would be crucial.

More subsidy (to take care of at least 30% cost of production), More agric-friendlycredits and Higher Agricultural spending by Government (minimum 15% budgetaryallocation to Agriculture) and other stakeholders would be crucial.


My submission

I see a bright future. A future right inour hands to shape.

Thank you. - Dr Babatunde Bello. Patra Consult. Lagos. Nigeria.

08023540401


I see a bright future. A future right inour hands to shape.

Thank you. - Dr Babatunde Bello. Patra Consult. Lagos. Nigeria.

08023540401


BIBLIOGRAPHY

Food situation in the Sahel and West Africa - Sahel and West Africa Club(SWAC/OECD) Feb 2007 publication.

Guardian Newspaper 19th Aug. 2007 - by Kayode Oyeleye . Post-harvest technologies in Nigeria’s Livestock Industry: status, challenges

and capacities by Olumide o. TEWE ph.D and Mpoko Bokanga Ph.D. 2001.

Federal Department Livestock and Pest Control Service Departments, Abuja

CBN Statistical Bulletin, Vol 16, Dec 2005.

FEWSNET

FMARD, Crop Department reporthttp://www.ministryofagric.gov.ng/display.php?link=crops

Personal Communication (PC)/Desk Research/Market Estimates


Food situation in the Sahel and West Africa - Sahel and West Africa Club(SWAC/OECD) Feb 2007 publication.

Guardian Newspaper 19th Aug. 2007 - by Kayode Oyeleye . Post-harvest technologies in Nigeria’s Livestock Industry: status, challenges

and capacities by Olumide o. TEWE ph.D and Mpoko Bokanga Ph.D. 2001.

Federal Department Livestock and Pest Control Service Departments, Abuja

CBN Statistical Bulletin, Vol 16, Dec 2005.

FEWSNET

FMARD, Crop Department reporthttp://www.ministryofagric.gov.ng/display.php?link=crops

Personal Communication (PC)/Desk Research/Market Estimates


* FINITO!FINITO! * *QUESTIONSQUESTIONS!!

* * *


* * *

DR BABATUNDE BELLOManaging Consultant

PATRA CONSULT24 LAYIWOLA STREET, NEW OKO-OBA. LAGOS. NIGERIA.

0802-354-0401, 0803-304-2626, 08033201272,

08037163447, 01-4707387, 01-7920621

[email protected]

www.patraconsult.com

ON BEHALF OF WAPSA.

Documents

Nigerian Feed and Poultry Industry challenges nias 2009