Story highlights
- Retail egg prices have increased by 25% in the past three weeks, while farm-gate prices have seen a rise of about 17%.
- Farmers and traders attribute the increase to scarcity following significant closures of poultry farms in the country and also to a renewed increase in the prices of maize and soya, ingredients used in poultry feed production.
- Food prices have generally increased across the country in the past year due to the depreciation of the naira and a rise in transport costs.
In the past few weeks, there have been a noticeable uptick in the price of eggs across the country. A simple survey of egg prices per crate in the last three weeks reveals an increase of around 17% in one month at farmgate.
Currently, an egg retails for N200 in June from N150 a month prior- this represents a 25% increase in the retail price in just one month.
Most traders attributed the increase to scarcity stating there are not enough eggs being produced currently.
The allegation of scarcity due to closure of poultry farm mirrors similar statement by the Chairman of the Lagos state Poultry Association of Nigeria (PAN) earlier in the year stating that around 50% of poultry farmers in the country have shut down due to rise in input prices.
Causes of the hike
Mr. Samuel Adebayo, a poultry farmer in Ogun state confirmed the allegation of drop in production stating that most small holder poultry farmers have closed shop due to the high cost of inputs.
Also, the current Secretary of PAN, Ogun state, Mr. Temitayo Oguntola did not rule out scarcity being responsible for the hike but acknowledged increase in inputs especially feeds. He said, “I attended a conference recently and according to the presentation, the poultry industry has contracted by 23% in the last one year.”
Speaking to Nairametrics, Ms. Isioma Blessing, a poultry farmer and former Chairperson of the Poultry Association of Nigeria (PAN), Ogun state chapter confirmed the price increase saying the farmgate price of a crate of eggs has increased in the past three weeks.
She said, “In April and even in May, we were selling a crate of egg around N3,000 and N3,300 but current we sell around N3,800 and N4,000”
However, she disagreed with the idea that the current hike in prices was due to scarcity. The scarcity resulting from the closure of poultry farms accounts for approximately 15% of the current hike in egg prices.
Ms. Blessing explained that a tonne of maize, which sold for N550,000 in April and early May, now sells for N820,000—an almost 50% increase in one month. Additionally, soybean, another key ingredient in poultry feed, now sells for N720,000 per tonne, up from N600,000 a month ago.
She said, “The foreign exchange situation affected the cost of input and that’s why we are seeing price increase. Even something as little as vaccine for the birds that we buy around N960 per 1000-dose increased to N3,000 the last time I bought. I am currently placing an order now and it is N6,750.”
Increase in poultry input prices
Ever since the Central Bank of Nigeria (CBN) unified the foreign exchange market as part of its reforms in June 2023, the naira has weakened from N474/$ to around N1,500 now. This has increased the cost of imports which passes through on inflation.
Year-on-year, the prices of maize, soya bean and other inputs in poultry feed production have nearly doubled. The NBS food price survey in April reveals a year-on-year increase of around 130% for 1kg of maize from April 2023 to April 2024.
The spike in food inflation also stems from significant increase in transport cost following the removal of fuel subsidy and the near 100% year-on-year increase in diesel prices across the country. The price of petrol has increased by 176% since April last year while diesel has seen
Renewed increase in food prices
It is noteworthy that the spike in egg prices is not an isolated case but cuts across different food products. Month-on-month, the price of beans increased by a whopping 17% between March and April 2024 and there have been a 100% increase in the price of staple foods across the country.
Despite projections earlier in the year that inflation will begin to decelerate in the second quarter, that is yet to materialise as there seem to be a renewed price increase across different commodities. This is reflective in the recent increase in food prices.
Furthermore, monetary policy tightening by the CBN has so far failed to reign in on inflation as the CPI reached 33.69% in May- a 28year high. The apex bank has increased rates by a combined 750 basis points since February, but inflation has continued to rise since then.
What this means
The increase in egg prices is poised to affect not just individuals but businesses especially the baking industry which is under stress from high input cost. Nairametrics earlier reported the 100% increase in the input cost of bread and other food items in the pastry business leading to significant closures of bakeries across the country.
The increase in the price of eggs- a critical protein source could further worsen the spate of malnutrition especially in children across the country. In 2024, around 11 million children in Nigeria face malnutrition making them more susceptible to wasting according to the latest UNICEF report.
This figure compounds the 32 million Nigerians (around 16%) projected to face severe food insecurity in 2024 according to research by the Food and Agricultural Organisation (FAO) and the International Rescue Committee (IRC).
