The livestock sub-sector is an important component of the Nigerian Agricultural Economy. Its importance derives from the fact that it is one of the key contributors to the national economy. For example, using the 1984 factor based data, the sub-sector contributed on an annual basis, a little over 5% of the Gross Domestic Product (GDP) between 1996 and year 2000. According to CBN, the livestock sub-sector is second only to the crop sub-sector under the sub-sector contribution to the general agricultural sector, and represents an average over 13% of agriculture’s contribution during the period under consideration.
Though over 70% of Nigeria’s 923,768 square kilometres land mass is arable and suitable for Agricultural, the nation is a net importer of food products.
In an attempt to tackle the problems facing the Agricultural Sector in Nigeria, Government put in place the National Agricultural Policy, which was jointly formulated by the national stakeholders and International Development Partners and approved by the Federal Government in 2002. Specifically, the National Agricultural Policy assigns supportive roles to the government, while investments in the sector are left to the private sector initiative and in order to encourage investment in the poultry sub-sector, Government approved ban on the importation frozen poultry products and gave other incentives to stimulate investment.
Nigeria, with a population of about 165 million is grossly underprovided with the essential food component, which is protein. For example, data from the FOS, CBN, and FAO indicate that from cattle, less than 2kg of beef is available to an average Nigerian per year and just mere 4kg of eggs per annum is available to each Nigerian.
In fact, milk production has been nose diving or at best has remained constant since 1994.This scenario is compounded more so when the volume of egg supply is very low, being 10.56g per person per day as compared with the usual recommendation that an egg should be consumed by an adult per day. This recommendation would imply a crate of 30 eggs per month. This story also holds for other meat products including, chicken.
The two major events that have been recorded in the industry has been the ban on the importation of frozen poultry product which was introduced in 2003 and deepen the market for poultry product in Nigeria and the Avian Influenza of 2007 which affected the industry on a negative note.
The ban according to on the importation of frozen chicken into Nigeria has not only created jobs in the poultry industry but encouraged investments in poultry production, processing and storage.
Nigeria, with a population of over one hundred and sixty five million (165,000,000) people and an estimated national population growth rate of 5.7% per annum , average economic growth rate of 3.5% per annum in the past five (5) years ,Nigeria is a large ,expanding and sustainable market for frozen chicken.
Generally, there are few taboos, religious or cultural practices that prohibit the use of frozen chicken in human diet. Hence, nearly all members of the Nigerian populace are potential consumers of frozen chicken.
Specifically, there is sustained high demand for frozen chicken for home consumption or as gifts at the time of festivals such as Christmas, New Year, Easter, Id El-Fitri, Id-El Kabir etc. Also fast food operators such as hotels, restaurants, and supermarkets also have very high demand for frozen chicken.
More investment is required in the processing of chickens in order to meet the ever increasing demand for frozen chicken and achieve the desire of government that placed a ban on the importation of frozen chicken in Nigeria
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