Ecomomics of Maize in Nigeria
According to a survey by FAOSTAT in 2014, Maize is the second most cultivated crop in Nigeria in terms of area harvested with 5.8million Ha, second to Cassava’s 7.1 million Ha.
Nigeria and South Africa are the largest producers in Africa. The International Grains Council placed Nigeria’s 2018/19 maize production estimate at 11.0 million tonnes, which equates to a 16.1 percent share of SSA’s maize harvest.
About 50 percent of the maize produced is consumed by the animal feed sector, with poultry claiming as much as 98 percent of the total feed produced in Nigeria.
The aforementioned has proved the importance of maize to the animal industry, especially for poultry farmers.
The price of maize affect greatly the cost of production of animals – a cost that any rational farmer would ensure is kept at the lowest rate.
Maize is a critical component of animal feeds, and at such a hike in price would, therefore, increase the cost of poultry animals and their end products.
This situation on its consequential terms would erode the merits of the ban on the importation of animal products which was very well-intended.
No doubt that the penetrating stripes of scaling price of maize, and its resultant economic effects to the poultry industry, informed the shout for the importation of maize by the Delta state PAN.
Howbeit, is cutting the head an antidote for a throbbing headache?
Maize Importation: An Ill-conceived Messiah
From an economic standpoint, price inflation often occurs when demand for a product is higher than the supply. It then begs the question: Is Nigeria deficient in maize production?
According to the Maize Farmers Association of Nigeria, the production of the commodity increased from eight million tonnes to 20 million tonnes between 2015 and 2018.
Although the discrepancy between the present level of production and the actual demand is unknown, there has been a significant boost in the maize sub-sector,
Maize is highly competed for by both the human population and livestock and it goes without saying that a skyrocketing demand is a present and futuristic reality.
It beckons on the government to strengthen investment in the sector and formulate bespoke policies to increase the production of the commodity and thus close the gap between demand and supply.
This coincides with the minds of Nigerians on AgroNigeria’s Twitter poll: “Should the Federal Government permit the importation of maize to supplement fall in domestic supply, as suggested by PAN?”
“Provide subsidy” received more clicks (42%) from participants. Reactions from contributors suggested that the government provides subsidies to boost farmers’ resolve in increasing production to meet local demand.
Source
https://agronigeria.ng/2020/07/13/maize-production-between-prohibitive-price-and-importation-shouts/