FIPAN Credits Government Measures for Lower Feed Prices

By Timothy Olaniyi

The Feed Industry Practitioners Association of Nigeria (FIPAN) has recognised the positive impact of Federal Government policies on feed prices. However, the association emphasised that additional interventions are necessary to sustain progress and address ongoing challenges in the livestock sector.

Speaking at a press conference in Lagos over the weekend, FIPAN National President, Dr. Ayoola Oduntan, noted that while improved security measures and government policies have contributed to lowering feed costs, more strategic actions are required to ensure long-term stability in the industry.

Oduntan praised President Bola Ahmed Tinubu for implementing policies that have led to significant price reductions in maize and soybean, two critical components of animal feed. He highlighted that restricting the exportation of these essential ingredients has played a key role in stabilizing the industry and reducing production costs for livestock farmers.

“The Federal Government’s policies on agriculture and food security have had a noticeable impact on the availability and affordability of feed materials. However, the livestock sector still requires further intervention to prevent recurring price volatility and ensure sustainable production,” he said.

Despite improvements, Oduntan emphasised that feed accounts for 60-70 per cent of animal protein production costs, and while easing maize and soybean prices is a positive development, inflation, production inefficiencies, and forex-related challenges continue to exert pressure on the industry.

“The government must intensify its support by establishing strategic animal feed reserve silos and providing special intervention funds to stabilise raw material prices. Additionally, contract farming should be piloted to ensure a steady supply of feed-grade maize for livestock producers,”

He urged the government to review tariffs and taxes on imported additives and concentrates, which significantly contribute to high feed production costs.

According to Dr. Oduntan, unnecessary delays and excessive charges at ports further inflate production costs and require urgent attention.

He also called for stronger partnerships with agricultural agencies, research institutions, and financial institutions to facilitate credit access and innovation in the sector.

On the recapitalisation of the Bank of Agriculture, he stressed that while commendable, it must be accompanied by efficient operational processes to ensure seamless financial support for agribusinesses without bureaucratic hurdles.

Dr. Oduntan warned that without sustained government intervention, progress achieved so far may be short-lived, leading to increased food inflation, job losses, and a decline in local meat, poultry, and dairy production.

He urged further investment in research and development to explore alternative feed sources such as insect protein, cassava peels, and palm kernel cake.

“While we appreciate the government’s role in reducing feed costs, there is still much work to be done. The government must continue to refine policies, invest in research, and support industry players to create a stable and thriving livestock sector.

“We hope our request would be considered so that the Ministry of Livestock can provide affordable food for Nigerians. With the reduction in fuel prices we are witnessing, we believe it will help stabilise the price of feed and impact transportation as well,” he added.

Dr. Oduntan concluded by noting that improving market availability and production efficiency will have a significant impact on the agricultural sector.

“The cost of low costing on agriculture will make a significant impact. We are considering the cost of production, market availability, and market potential, among other challenges we had in 2024. But today, things are looking different with the reduction we have in price.”