Egg consumption in Lagos has significantly declined, leaving poultry farmers in a quandary. The Poultry Association of Nigeria (PAN), Lagos State chapter, attributes this slump in patronage to a combination of factors: an overarching low purchasing power among consumers, what they describe as "greedy retailers," and a general dip in consumption habits.

Speaking to the News Agency of Nigeria on Sunday in Lagos, Mojeed Iyiola, Chairman of PAN Lagos, emphasized that eggs remain the most affordable source of protein available in Nigeria. However, he pointed fingers at the high markups by retailers and the prevailing economic hardship as key reasons for the reduced demand.

"The reduced patronage of eggs in the poultry sector is not peculiar to farmers alone. Virtually all consumable goods are experiencing low patronage due to the low purchasing power in the economy," Iyiola explained. He pondered whether "salaries are insufficient to meet the nutritional demands of families, or other expenses take priority over purchasing eggs."

Despite the perception among consumers, Iyiola insisted that eggs are not as expensive as commonly believed. "Eggs are still the most affordable protein you can buy in Nigeria; they are not as expensive as people think," he stated. "The price from poultry farms is less than N5,500 per crate. However, individual consumption patterns vary. The perception that eggs are expensive is simply fixed in people’s minds."

The PAN chairman reiterated his concern about the profit margins of retailers and middlemen, which he believes are excessively high and contribute to the low patronage. "Retailers who buy eggs at N5,500 at the farm gate price are adding higher profits than normal for selfish gains," Iyiola asserted. He argued that "when retailers purchase a crate at N5,500, the maximum profit they should add is no more than N100 or N200. However, some retailers sell a crate for as high as N6,000 or N6,500, thus making more profit than the poultry farmers who do all the work." He concluded that "a profit of N1,000 per crate is excessive, so the price increase or low patronage cannot be blamed on farmers."

Iyiola also touched upon the cost of raw materials for production, noting that while it is "still bearable," it remains a factor. He mentioned that a temporary subvention from the Lagos State Government had previously helped farmers subsidize costs, but it is currently on hold. "We are still expecting palliatives from the government to further cushion production expenses in the sector," he added.

Adding to the discussion, Joel Oduware, a poultry processor, broadly attributed the challenges to the prevailing economic downturn. "Generally, the low patronage of eggs is due to the economic downturn, low disposable income, and reduced purchasing power," Oduware observed. He expressed surprise that even with schools resuming, expected increases in egg consumption have not materialized, particularly in some northern states and other regions.

"Basically, the general economic strain is the reason for low patronage. The global financial situation is also affecting our industry; people cannot afford to eat as comfortably as before," Oduware remarked. He suggested that a slight reduction in egg prices might be considered to address the persistent glut in the sector, but cautioned that "any price reduction must factor in production costs."