Nigerian Journal of Rural Sociology (NJRS), 24( 1): 12 - 17 , 2024

Effects of petroleum subsidy removal on sustainable poultry value chain in Southwest Nigeria

Adedapo O. O., Kolawole, A. O., Adebo, G. M.


The paper provides an overview of the structure of sustainable poultry value chains after fuel subsidy removal in Nigeria. Specifically, the study ascertained the various aspects of the poultry value chain engaged in by the actors (producers, processors and marketers). It determined the price differential in the costs of Input supply (drugs, vaccines and feeds), brooding, rearing, processing and marketing of poultry products before and after fuel subsidy removal. The study used mixed research methods to collect quantitative and qualitative data. Research results showed that the potential short-term impact of removing oil subsidies hard-hit the producers more than the processors and marketers. The cost of inputs skyrocketed, as the average price of brooding charcoal increased from N2,3300 to N5,5500 per bag while feeds increased from an average of N7,302 to N21,900 per bag. The cost of vaccines, drugs, poultry feeds and management sky-rocketed by a 200% rise while the price of a crate of eggs had a 100 per cent increase. Low demand enhances undulating prices of day-old chicks from an average of N500 to N150 and N350 respectively. Likewise, the demands for eggs, broilers, and their prices. The t-test shows statistically significant differences between the average cost of inputs ñ brooding (0.022), vaccines (0.001), drugs (0.001), poultry feeds (0.000), and the cost of processing birds (0.0234) at 1% and 5% levels of significance. Also, there is a significant difference between the sales of broilers (0.019) and crates of eggs (0.001) at a 1% level of significance before and after petroleum subsidy removal. The sudden reduction in the average number of birds reared from 4, 850 to 2, 670 is a signal of unsustainability in the sector. Over the long term, research suggests a decline in innovation and adaptive capacity and a narrowing of the scope of market opportunities. The study concludes that the long-term impact of removing fuel subsidies on sustainable poultry value chains in Southwest Nigeria will be enormous and more prevalent than the short-term impact. The study recommends that policymakers take proactive measures to minimize the impact of removing oil subsidies on sustainable poultry value chains.

Keywords: Fuel-subsidy, poultry production, price instability, sustainability, value chains