The continuous rise in the cost of poultry feed ingredients especially maize which translates to increased cost of production without a corresponding increase in the price of table eggs has become a serious source of concern to poultry farmers as many of them are gradually loosing out of business. This development prompted some farmers to come together as Table Eggs Producers Association of Nigeria, TEPAN in a bid to help their unpalatable situation.
The Association identified the activities of middle men and lack of cooperation from individual farmers in determining the appropriate price of eggs as some of their major setbacks. Against this backdrop, the association on Sunday, 19th July 2020 held a webinar meeting to discuss the possible solutions to these challenges.
In his lecture titled The Importance of Cluster Formation in Egg Distribution Network, the head of Agribusiness group of the Lagos Business School, Dr Ikechukwu Kelikume emphasised the need for farmers to come together in clusters to establish egg aggregation centers where eggs produced by individual farmers will move to for sales to final consumers or wholesale buyers.
“The cluster formation will bring about increased suppliers bargaining power, lower unit cost, economics of scale, and low switching cost which will help in price determination thereby eliminating the problem of very low prices offered by middle men to individual farmers. The aggregation centers can even give rise to egg processing factories and even financial institutions”
The Agribusiness expert called on farmers to join hands with TEPAN in ensuring that poultry farmers have good return on their investments. This can be done by involving other stakeholders in the business such as transporters, animal health care providers, e.t.c. The expert predicts an exponential increase in the price of maize by next year due to CBN’s suspension of forex for maize importation. He called on government to reconsider the decision and allow the importation of a certain quota of maize until local production can sustain the industry. He went further to advise farmers to plan ahead of time so they won’t be overwhelmed by the ingredients prices by next year.
TEPAN is an independent association that was established in May 2020 to facilitate knowledge sharing among members and protect the interest of poultry farmers by regulating the price of eggs. The association currently has over 380 members with over 600,000 laying birds. LIVESTONEWS.