Apart from hydrocarbon of which Nigeria is the sixth largest exporter of crude oil and has the second largest known deposit of natural gas in the world, Nigeria also has comparative advantage in the Agricultural sector, where varieties of crops and animals are produced and reared respectively due to favorable climatic condition, good soil structure and the fact that over 70% of the entire land mass of the country is arable.
Until the late 1970’s when hydrocarbon was discovered in commercial quantity in Oloibiri ,present day Bayelsa state , Agriculture remained the mainstay of the economy contributing over 90% of the Gross Domestic Product (GDP) of the country as against the less than 40% it now contributes. Despite the prominent role of the Petroleum sector, Agriculture still employs about 70% of the entire population both formal and informal.
Though agricultural production in Nigeria has declined over the years factors like high unemployment rate, the crash of the stock market in Nigeria and the global economic recession is having a positive effect on the agricultural sector especially in the production of micro-livestock’s like poultry,snail,fish and goats. This renewed interest in agriculture is creating a large and expanding market for animal feed in Nigeria that is estimated at over four million (4,000,000) MT annually.
Animal feed are required for the proper development of livestock and depending on the type of livestock and the stage of production of the livestock some of the raw materials required in animal feed production includes maize, whole wheat, oyster shells, bone meal, meat meal, blood meal, fish meal, Soya cake, groundnut cake, palm kernel cake and a host of others. Though the investor can make money supply the other products to animal feed millers, the focus of this report would be on oil bearing seed cakes.
Cakes are bye-product gotten from the processing of oil bearing seeds. They form a very important component of animal feeds by providing the much needed protein.
Consequently, there had long been a thriving market for cakes and Foraminifera Market Research seeks to expose the investment opportunity in the supply of the product to local industries in Nigeria through feasibility report.
Nigeria, with a population of over 165 million is grossly under provided with the essential food component, which is protein. For example, data from the FOS, CBN, and FAO indicate that from cattle, less than 2kg of beef is available to an average Nigerian per year and just mere 4kg of eggs per annum is available to each Nigerian.
In fact, milk production has been nose diving or at best has remained constant since 1994.This scenario is compounded more so when the volume of egg supply is very low, being 10.56g per person per day as compared with the usual recommendation that an egg should be consumed by an adult per day. This recommendation would imply a crate of 30 eggs per month. This story also holds for other meat products including, chicken.
To ameliorate this problem of low-level of protein intake, there is the need for concerted effort, among the various stakeholders to bring about the massive production of protein based food items at competitive costs so that they would be affordable to the general masses. Aside from the other necessary economic reforms, massive investment poultry farming is one way of resolving the problem.
It is estimated that about 70% of the cost of production of poultry bird is attributed to the feeding cost. The high figure implies a higher demand for cakes, a product used in the production of animal feeds.
The return on investment on the trading of oil bearing seed cakes is estimated between 10%- 15%.