View the attached image, it was a question asked by Honorable Oloye Akin Alabi yesterday on Twitter and choose to provide a comprehensive answer here because a lot of people would want to know what is happening in our core sector(Agriculture).
Who is Honorable Oloye Akin Alabi?
He is the founder of NairaBet and author of “Small Business Big Money” a book you should read before you think of going into business in Nigeria.
Currently, Akin Alabi is the National Assembly member representing Egbeda/Ona Ara Federal Constituency in Oyo State.
Akin Alabi is an inspiration to a lot of Nigerian youths and is someone you should follow too.
Let me simplistically answer his question so you can understand, just read slowly.
Question: “Is farming business immune to this shutdown. Discus“
I don’t want to bore you with writings of how bad this virus is affecting our major world food-producing country China.
Let us focus on Nigeria for now because we import almost all the food we eat and now we can’t import, therefore, it is a thing of concern to me.
I see food hunger in Nigeria. Is sad but reality.
For we poultry farmers or livestock producers in general, our major customers are food restaurants and beer parlors.
We operate a B2B system.
Low Patronage is growing hourly
Due to the “Stay At Home” campaign as the best and most efficient way to control the spread of coronavirus, our customers(restaurants and beer parlors) are experiencing low patronage already.
Families are now concern about survival than drinking beer and meat with friends in night clubs, no birthday parties.
Some beer parlors that on a normal day would kill 2 pigs and 20 birds now manage to sell a pig and 10 birds to stubborn customers that still believe coronavirus is a scam.
let’s digress: At DENKOL FARMS, we have some consistent customers that cook for events as a result, they buy birds in large quantity almost every Fridays, Saturdays and Sundays. Due to social distances, birthday parties are at stay still and we are stock with birds and nobody to sell to.
And another set of people who believe that the virus will not reach their community. Such people still come out but with fear, buy hurriedly and rush back to meet their family at home.
Instead of sitting at the bar to eat and drink a bottle of Star that usually pushes to another bottle, another bottle, and more meat, they now drink 1 bottle at home.
Business is slow for farmers(primary producers).
How about the cost of feeding our livestock?
It is not funny.
But let me tell you this reality, we import animals feed worth billions of Naira yearly into our country Nigeria but now, all borders both Land, Water, and Air are closed.
It means, farmers have to depend solely on our home-based feed production companies that can’t and have never meet up with home demand.
Let me inform you that, most feed additives are imported.
So, the cost of production is high for these companies too and some cannot even operate longer if the pandemic persists.
A bag of 25KG of feed that used to be
N3,500- N4,000 is not the same now.
Come to think of it…
Employees in those feed production companies too have life and can contact coronavirus, therefore, they are asked to “Stay Home”.
Some feed production companies have closed indefinitely. I booked for one brand of feed I use for my birds, the feed is not available.
In some communities, a DOC(Day Old Chick) is currently trading as high as
N450 against N250- N300.
For we Agro commodities traders, our business is equally tired down. We can’t send our goods across the States due to restrictions on human movement.
People are looking for what to feed their stomach with not a balanced diet.
We cannot export our foodstuffs again.
Our B2B transaction with food restaurants is slow, people are staying at home and cooking their meal by themselves now. Some restaurants have dismissed their workers indefinitely.
So, farming as a business has been negatively affected just like any other business on planet earth. And foodstuff sellers who depend on daily sales for survival and feeding of their family are suffering from the virus too.
We farmers pray to God Almighty that cure and vaccine for this pandemic should be invented so we can get back to our normal life.
Stay At Home, Stay Safe.
Tsekohol Denison loves you…