FIPAN Urges FG to Review Tariff on Essential Livestock Import

Oluchi Chibuzor

The Feed Industry Practitioners Association of Nigeria (FIPAN), has urged the federal government to review tariffs on essential imports in the livestock value chain to further reduce the cost of production of feed.

This is as they stressed the imperative of the government to make investments in research, innovation, and infrastructure to stimulate long-term industry expansion.

FIPAN said in the absence of intervention by the federal government, local livestock farmers will continue to face prohibitively expensive feed costs which will find expression in higher food inflation as well as lower domestic production of meat, poultry and dairy.

Speaking yesterday in Lagos, on the state of the sector, the FIPAN President, Dr. Ayoola Oduntan said the prices of major feed products like maize and soybean meal have increased by more than 60 percent.

He noted that these increases over the last one year were due to the effects of inflation, inefficiency of production and exchange rate of CFA, etc.

He said Nigeria imports additives and concentrates, but challenges like delays and additional fees at the ports add to the cost which requires review.

“Review tariffs on essential imports in the livestock value chain to further reduce the cost of production of feed. Make investments in research, innovation, and infrastructure to stimulate long-term industry expansion,” Oduntan said.

He stressed that to address these pressing problems and unlock the potential of Nigeria’s livestock sector, the government must establish strategic animal feed reserve silos for feed maize to reduce competition with human food maize.

According to him, “Establish a special intervention fund for stabilising raw material price and availability to stabilize the price of feeds and Pilot contract farming for feed grade maize. Drive alternative feed sources such as insect protein, cassava peels, and palm kernel cake. Improve research institution, university and private sector partnership to drive feed formulation innovation.”

He warned that in absence of intervention by the federal government, local livestock farmers will continue to face prohibitively expensive feed costs which will find expression in higher food inflation as well as lower domestic production of meat, poultry and dairy.

“Left on its own, the industry may be faced with loss of jobs, declining supply of protein, and excess reliance on expensive food imports,” he said.

Meanwhile, a reportFood and Agriculture Organisation (FAO) has shown that higher sugar, dairy, and vegetable oil prices drive the overall increase in world food price for the month of February.

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.1 points in February, up 1.6 percent from the previous month and 8.2 percent higher than its February 2024 level.

According to the benchmark for global food commodity prices, the surge was largely driven by the FAO Sugar Price Index, which rose by 6.6 per cent from January after three consecutive months of decline, reaching 118.5 points in February. 

“The increase was fuelled by concerns over likely tighter global supplies for the 2024/25 season, particularly due to declining production prospects in India and adverse weather conditions affecting crops in Brazil,” it said.

The rise was the result of higher prices across all major dairy products, including cheese and whole milk powder, as strong import demand exceeded production in key exporting regions.

However, the FAO Vegetable Oil Price Index averaged 156.0 points in February, up 2.0 percent from January and as much as 29.1 percent higher than a year earlier. 

“The increase was largely the result of higher prices for palm, soy, and sunflower oils, driven by seasonal supply constraints in Southeast Asia and robust demand from the biodiesel sector,” FAO said.

Similarly, FAO Cereal Price Index edged up 0.7 percent in February, averaging 112.6 points, while wheat prices increased due to tighter supplies in the Russian Federation and concerns over crop conditions in eastern Europe and North America, though the overall index remained slightly below its February 2024 level. 

“World maize prices continued to rise, underpinned by tightening supplies in Brazil and strong US export demand. By contrast, world rice prices fell by 6.8 percent in February due to ample exportable supplies and weak import demand,” FAO said.

Meanwhile, 2025 Crop outlook varies across regions, FAO said in a new edition of its Crop Prospects and Food Situation report.

“Looking ahead to 2025, in Africa, prolonged dry weather conditions in North Africa are dampening cereal production prospects, while favourable rainfall in Southern Africa is expected to support a rebound in crop yields following significant declines in 2024,” the report said.