Maize crisis hit poultry farmers

Members of the Ghana National Poultry Farmers Association have been alarmed by the sudden skyrocketing of maize prices as a result of inadequate supplies.

They said the rise in the price of maize could affect the production of poultry products and subsequently consumers as Christmas gets closer.

“It is not as yet clear as to what has brought about this sudden rise, but the matter is under investigation,” Kwadwo Asante, Chairman of the Association, told the Business and Financial Times.

“In the meantime, it is clear that frustrations are boiling over amongst members, many of who are contemplating liquidating stocks as an option. This could mean a drop in products coming on to the market over the yuletide period,” he added.

According to him, the cumulative effect of high feed ingredient prices and over the last 8 months has taken its toll. Under normal circumstances, he noted, maize should be at annual lows during the month between Oct –Dec.

“Poultry farmers are generally able to recoup some the losses inured during the high price months; with this occurrence, that hope has been dimmed.”

Presently, Ghana has about five commercial feed mills with a total installed operating capacity of 500 tonnes per day. However, most feed millers are only producing at about 40-50 percent capacity due to slack demand from the industry.

Most of the medium- and small-scale poultry producers are supplied by the commercial feed millers. These feed millers produce mainly mash feed with only a few producing high feed concentrates and only one pelleting feed.

Most small and medium-scale poultry producers prefer the feed concentrate because it is cheaper, convenient and less bulky for transportation. The main ingredients for compound feed are locally-obtained corn or imported yellow corn and wheat bran.

Corn typically forms about 50-60 percent of the total feed formulation, and the poultry industry consumes nearly 30 percent of all corn produced in Ghana.

This is low in comparison to other countries, according to the USDA Foreign Agricultural Service. During the 2010/11 market year, the animal feed industry of the U.S. consumed 127million tonnes of maize, which accounts for 37.5 percent of the overall production.

However, if one excludes the 128million tonnes that went to the subsidised ethanol industry, it accounted for 60.4 percent of the maize grown in the U.S.

Analysts say if Ghana had to grow its own chicken to replace the current imports, it would need approximately 243,000 tonnes of maize and 121,000 tonnes of soybeans per year. This provides a huge opportunity for local grain farmers to increase their production.

Feed prices in Ghana have been climbing, primarily due to the rising cost of corn. USDA forecast for corn production in the 2011/2012 market year in Ghana is 1,700,000 metric tonnes, up from 1,650,000 metric tonnes in the 2010/2011 market year.

This projected increase is due to adequate and timely rains in all the grain-growing areas. Currently, the national average maize yield is estimated at 1.6 tonnes per hectare, according to government sources.

The government introduced a 50 percent subsidy on fertiliser starting 2008 to make it affordable and increase fertiliser use, and to ensure a uniform price across the country.

According to the government, this direct intervention could increase yields to 2.5 metric tonnes in 2011/2012, up from 1.89 metric tonnes in 2010.

Corn is a major staple food crop in Ghana and is the base for several food preparations. Corn is also the main component for poultry and livestock feed, although these industries remain small.

A post-survey estimated data obtained from major feed mills in Ghana indicates that about 225,000 metric tonnes of corn is used for poultry feed annually.

The local wholesale prices of a 100kg bag of white corn in 2009-2010 ranged from GH¢48.00 to GH¢56.00. Traded corn is the most important cereal crop on the domestic market in Ghana.

The challenges are several, but the interventions little; yet poultry farmers believe strongly that a successful broiler industry is one of the keys to growing the agricultural sector in Ghana and creating much-needed jobs.