Examining the effect of 2023 cash crunch on the poultry egg industry in Ogun State, Nigeria

Abstract

The poultry egg industry is volatile, and this study investigates the impact of the 2023 cash crunch on the poultry egg industry in Ogun State, Nigeria. Data from sixty-four poultry egg farmers were collected using structured e-questionnaires and analyzed using descriptive statistics and a paired sample t-test. Results show that 83% of respondents were small-medium scale farmers and 73% used commercial feeds. Total egg production before (12,210 crates) and during the cash crunch (12,391 crates) did not differ significantly. The average feed cost per bag before and during the crunch was ₦7 097 and ₦7 151, respectively. However, the average sales of 2,213,867 crates before the crunch and 199,437 crates during the cash crunch significantly differed. A 36% cumulative decrease in egg price from ₦2472 (December 2022) to ₦1587 (March 2023) resulted in an 83% fall in daily farm revenue. The fall in price did not increase demand for eggs, as demand was not price-dependent but driven by cash scarcity. Coping strategies adopted by farmers to mitigate egg glut included increased delivery to customers (18%), gifting of eggs (56%), and sales of poultry birds (25%). The study recommends that the government provide grants and review loan tenure for farmers while encouraging poultry farmers to collaboratively explore egg processing options. Moreover, the study emphasizes the importance of supporting animal science research to investigate possible ways of halting laying of eggs for a while during periods of economic challenges.