Transforming Nigeria’s poultry value chain for export market

BY JUNAIDU MAINA

“It always seems impossible until it’s done” — Nelson Mandela

Poultry farming is a dynamic, fast-growing segment of Nigeria’s livestock sector, contributing significantly to food security, job creation, and income generation. While primarily serving the domestic market, with some informal trade in ECOWAS, the growth of this multi-trillion naira industry stems from deliberate government policies, public-private partnerships, and Nigerians’ entrepreneurial spirit.

Initially, most poultry products consumed in Nigeria were sourced from rural family poultry systems. Over time, commercial poultry farming emerged, though quality standards were initially suited only for local franchises and roadside eateries. Through continuous improvements in sanitary and trade standards, Nigerian poultry products eventually met the requirements of KFC, an international franchise, albeit for local operations only. This achievement marked a significant milestone, granting access to premium markets governed by stringent public health regulations.

Venturing into the export market

The next logical step for Nigeria’s poultry industry is to venture into the export market. Achieving this goal requires strict adherence to international food safety standards established by the WTO’s Agreement on Sanitary and Phytosanitary (SPS) Measures and FAO/WHO Codex Alimentarius Commission standards on veterinary drug residues, pesticide use, food additives, and contaminants.

Nigeria’s poultry industry possesses a unique competitive advantage due to the weak Naira, which reduces production costs. This positions Nigerian poultry meat as an appealing option for export, particularly to markets with increasing demand for affordable protein sources. Compliance with international benchmarks will unlock these lucrative export opportunities and establish Nigeria as a leading poultry producer in Africa. What is required is strategic investments in infrastructure, compliance with global standards, and effective marketing.

Fortuitously, Nigeria has signed a $2.5 billion partnership with JBS, the world’s largest meat processing company. According to the memorandum of understanding, JBS will establish six modern factories for processing poultry, beef, and pork. This initiative aims to develop robust meat supply chains across the country. In return, the Nigerian government committed to providing the necessary economic support, and high sanitary and regulatory standards to ensure the project’s success.

In the beef value chain sequence, farmers produce yearlings, which are then managed by backgrounding and feedlot operators who prepare the animals for the market. Aggregators collect and consolidate the livestock, and processors subsequently handle the preparation of beef products for domestic and international markets. JBS, aka corporate scale Sarkin Pawa, represents large-scale meat processing, seamlessly integrating modern butchery operations with the broader value chain. This partnership represents a crucial milestone in positioning Nigeria as a potential key player in the global meat trade.

Strategic blueprint

A newly established African think tank, the Forum for African Animal Resources (FAAR), has recommended in a recent publication that Nigeria draw lessons from Thailand’s successful transformation of its poultry industry. The Thai government facilitated the transition to a vertically integrated poultry production system, linking smallholder rural farms with larger, professionally managed commercial farms. This integration improved oversight and quality control across all stages of the value chain, including feed manufacturing, breeding, rearing, processing, and exporting.

Thailand also adopted Hazard Analysis Critical Control Points (HACCP) and Good Manufacturing Practices (GMP) as standard protocols in processing facilities, significantly enhancing food safety. Furthermore, the country conducts regular inspections and audits of farms and processing facilities to ensure compliance with these standards. This proactive approach has strengthened the confidence of high-value market importers.

Since JBS uses HACCP and is GMP certified, the ministry of livestock development could replicate Thailand’s success by adopting and implementing these strategies:

Strengthen veterinary services

• Enforce strict sanitary standards, conduct rigorous disease surveillance, regular testing, and culling to control disease outbreaks, especially avian influenza (AI).
• Maintain a non-vaccination policy for AI alongside improved biosecurity and enhanced farm management practices.
• Create digital platforms for networking, quality assurance of delivery of veterinary service and animal welfare.
• Develop Standard Operating Procedures (SOPs) for all routine operations.

Strengthen animal husbandry services

• Establish baseline data for participating farmers, farms and companies.
• Promote vertical integration of small-scale farms with larger, well-managed commercial farms.
• Partner with financial institutions to create innovative financing models.
• Facilitate access to livestock insurance to mitigate risks from disease outbreaks and climate-related events.

 Empower Poultry Association of Nigeria (PAN)

• Strengthen its Market Information Systems to provide real-time market data on prices, demand, and consumer preferences through digital platforms and traditional media.
• Enable farmers to make informed decisions, plan production effectively, and reduce intermediaries.
• Promote collective bargaining and access to quality inputs.
• Liaise with stakeholders to address perennial feed shortages.
• Develop mentorship programs to help farmers meet export market requirements.

Effective implementation of these strategies should unlock access to lucrative export markets and associated opportunities, while also serving as a roadmap for navigating the more complex beef market. In the meantime, Minister Mukhtar could showcase successful chicken farmers with fat bulgy pockets as symbols of prosperity, to inspire cattle farmers to foster inclusive growth across the beef value chains.

Dr Maina is the chair of Danwaire Consulting Ltd and vice-president of FAAR