The Ghana National Association of Poultry Farmers (GNAPF) has said the current drop in the price of maize – the main commodity for poultry feed – is a sign that the sector will recover in 2024.
It’s a huge relief after years of fretting about the sky-high production costs. The worries were particularly focused on the exorbitant prices of raw materials for animal feed production, especially starting in 2022 and continuing throughout last year. But now, we can finally breathe a sigh of relief.
GNAPF’s President, Victor Oppong Adjei, told B&FT that the price for a 50kg bag of maize, which sold at GH¢280 throughout last year, is now sold at GH¢200.
He mentioned that the decline in maize prices had a favorable impact on the farmgate price of chicken during the festive season. It’s fantastic news for everyone involved in the poultry industry.
“The white-colour broiler, depending on size, was sold at GH¢150 and GH¢70 for the brown colour at the farmgate. These are the highest amounts – which of course are different from retail prices on the market,” Mr. Oppong Adjei said.
The association emphasizes that the persistently high costs of animal feed are a significant concern for players in the poultry and livestock industries. These elevated costs have a domino effect on consumers of poultry and meat products. It’s definitely a matter that needs attention and resolution.
Mr. Oppong Adjei mentioned that there is still some uncertainty regarding whether the price drop will be temporary or if it will persist throughout the majority of this year. We’ll have to wait and see how things unfold in the coming months.
“What normally happens is that some middlemen take advantage of the current price and hoard the commodity for future price increases. These middlemen may in the long-run create artificial shortages, which could bring farmers back to their knees,” he revealed.
In December 2023, Dr. Bryan Acheampong, the Food and Agriculture Minister, had a meeting with the GNAPF. During that meeting, he assured them that the Ministry of Food and Agriculture (MoFA) will implement a price stabilization measure for maize nationwide this year. The aim is to help poultry farmers reduce their production costs.
At the Dakar II Summit in 2023, the government pledged to allocate around US$541 million to enhance the local poultry industry. This commitment was a key resolution that emerged from the event.
This decision is set to give a major boost to the local poultry industry and help it tackle the issue of high imports, which currently exceed over US$600 million per year. As a result of this investment, we can expect a significant increase in local poultry production, with the goal of reaching an impressive 450,000 tonnes annually.
Out of the US$541 million investment, around US$69 million will be used to expand and upgrade feed mills. This will help lower poultry feed costs and improve the overall efficiency of the industry. It’s exciting to see a substantial portion of the investment focused on enhancing the feed infrastructure.
