Nigeria’s potential for an expanded animal feed industry is huge. The country with a massively growing population which is projected to double by 2050, from the current 190 million, there exist a growing demand for livestock and livestock products, thus, opening up an opportunity for growth in Nigeria’s multi-billion animal feed market and returns for farmers.
Buoyed by the favourable policies of the federal government among which is the ban on the importation of frozen chicken and various intervention programs of the Central Bank of Nigeria (CBN) which has helped to stimulate increased local production translating into higher demand for feeds.
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In 2016, the Global Feed Survey said Nigeria’s global ranking for animal feeds has jumped from 51st position out of 130 countries 2015 to 40th position out of 131 countries in 2016.
According to the survey, Nigeria’s animal production in 2016 climbed 5.3 MT with egg production at 3.18MT, chicken meat for 1.07 MT
In response to the federal government’s renewed call for active participation in the aquaculture value chain, feed producers such as Agric-business giant, Olam, have lately reported growth in their production volumes and expansion of their business units within Nigeria, a result of a surge in demand for animal feeds in the country while also creating jobs through capacity building such as vet training, local farmer support programmes, buying corn and soya from farmers and socio-economic development.
With primary focus on Fish feed, which accounts for over 70percent of total farm costs, Olam has invested in Sub-Saharan Africa’s largest and most advanced fish feed manufacturing facility in Ilorin, Kwara State.
Olam’s aquaculture business is expected to employ 150 workers and create additional 200-250 indirect jobs. With an average size of 5,000 per smallholder farmer employing 4-5 people, the company’s fish feed investment could generate close to 70,00-80,000 jobs which could double if the current capacity is improved further.
The United States Department of Agriculture (USDA) estimates Nigeria’s annual fish consumption to be two million tons, with over 20 percent supplied through land-based aquaculture production.
