Nigerian-based agriculture company Agricorp International has announced investments totaling 4 billion naira (NGN; US$9.75 million) in the country’s poultry sector.
With this investment, the company has acquired production facilities in three states, reports Vanguard of Nigeria.
While its initial focus after launch was on the West African state’s spice sector, Agricorp is now turning its attention to poultry. According to the report, it is looking to widen its portfolio to cover the production, processing and export of livestock.
At the same time under its “Project Eclipse 2025,” the company intends to boost output by the domestic poultry meat sector.
In recent months, the firm reports it has achieved average mortality rates of 5-7% across its broiler premises through its pilot scheme.
Company co-founder and CEO Kenneth Obiajulu said Agricorp’s investment covered 142 poultry pens in three central-southern states — Kogi, Kwara, and Nassarawa. These are expected to boost production by 3 million birds per year. Furthermore, the projects will create 1,500 jobs, as well as reducing pressure on Nigeria’s foreign currency reserves by reducing the need for chicken imports.
By 2025, Agricorp projects annual output to be 40 million birds, according to the firm’s other co-founder, Wale Omotimirin. This is around 4% of the country’s total demand for poultry meat, he said. Already by mid-2022, production will be double its current level.
With an overall investment of NGN20 billion, the ambitious targets for Project Eclipse 2025 also include the direct or indirect employment of 100,000 Nigerian young people, half of whom will be women. In addition, the project will promote sustainable growth for the Nigerian economy, and reduce the financial pressures of importing poultry products.
Nigeria’s poultry sector struggles with high feed prices
In the West African state, corn (maize) and soybean meal form the basis of poultry feeds.
Last week, the Poultry Association of Nigeria (PAN) called for a ban on exports of corn, reported This Day Live. Instead, the organization wants more corn channeled towards the domestic feed companies.
Among the challenges facing the country’s poultry sector currently are insecurity, high feed costs, and the exchange rate. Event chairman Olalekan Odunsi identified these issues at the recent Poultry Show 2021. He added that “a lot of farms” have been forced to close due to high costs of both corn and soybean meal. While these raw materials are grown in Nigeria, most other feed ingredients have to be imported. Currently, the adverse exchange rate is raising their prices, as well as putting under pressure the country’s foreign exchange reserves.
As well as representing an important food staple for Nigerians, around 25% of the nation’s harvest goes into poultry feed. That is according to a recent review of the situation from the USDA Foreign Agricultural Service (FAS). With corn comprising 60-65% of the birds’ feed, FAS also reports that many Nigerian poultry farmers are struggling to stay in business. The situation is hitting particularly smaller producers, as well as egg farmers due to the longer-term nature of that business.
Three times during this year, the government has released corn from its strategic reserves, according to FAS. However, the resulting dip in prices was short-lived.
Domestic poultry production amounts to 300,000 metric tons (mt) of poultry meat, and 650,000mt of eggs per year, according to the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia. This equates to around 30% of domestic demand.
More on Agricorp International
According to the organization’s own web site, Agricorp International was founded with the primary aim to become the leading exporter of spices in Africa. Its mission is to “engage African agricultural stakeholders in the spices sector to increase productivity, reduce post-harvest losses, and deploy optimum market linkages to major processors.
The company was founded three years ago by Kenneth Obiajulu and Wale Omotimirin, reported Ag Funder News. Described as a “tech-enabled agricultural services start-up,” its initial focus was on spice production in Nigeria, starting with ginger.
Recently, Agricorp International raised US$17.5 million in its latest financing round. Investors were attracted, according to the report, by positive developments in its spice business and revenue as a result of the coronavirus (COVID-19) pandemic.
