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Abstract
This study examines the effects of the 2023 cash crunch on the poultry egg industry in Ogun State, Nigeria. Data from 64 poultry egg farmers were collected and analyzed via structured e-questionnaires. Results show 83% of respondents were small-medium scale farmers and 73% used commercial feeds. Total egg production before (12,210 crates) and during the cash crunch (12,391 crates) did not significantly differ. Average feed cost per bag was ₦7,097 before and ₦7,151 during the crunch. However, average sales of 2,213,867 crates before and 199,437 crates during the cash crunch differed. A 36% cumulative decrease in egg price from ₦2,472 (December 2022) to ₦1,587 (March 2023) led to an 83% drop in daily farm revenue. The price fall did not boost egg demand. Coping strategies included increased delivery to customers (18%), gifting eggs (56%), and selling poultry birds (25%). The study recommends government grants and review of loan tenure for farmers while encouraging collaborative egg processing efforts. Additionally, it underscores the need for animal science research to explore methods for temporarily halting egg laying during economic challenges.
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References
- Agbede, J. O. (2019). Alternative Feed Resources: Key to Profitable Livestock Enterprise in Nigeria. Inaugural Lecture Series 109, Delivered on Tuesday May 21, 2019 at the Federal University of Technology, Akure, Nigeria.
- Alabi, O. M. (2020). Perennial egg glut in poultry production in south-western Nigeria: causes and the way forward - a review. Bowen Journal of Agriculture, 7(1), 106 – 111.
- Aladejebi, O. J., Fakayode, S. B., Oronti, O. O., & Sani, T. P. (2019). Post Economic Recession and Agricultural Production in Nigeria: A Case Study of Small Scale Poultry Egg Farming.
- Amuge, O. (2023, March 23).Poultry farmers blame N30bn loss on cash crunch and egg glut. Business a.m. Retrieved from https://www.businessamlive.com/poultry-farmers-blame-n30bn-loss-on-cash-crunch-and-egg-glut/
- Bates, T. W., Kahle, K. M., &Stulz, R. M. (2009). Why do US firms hold so much cash than they used to? The Journal of Finance, 64(5), 1985-2021.
- Central Bank of Nigeria (2022).Redesigning of the Currency.www.cbn.gov.ng
- Chen, Y., Michalak, M. &Agellon, L. B. (2018).Importance of nutrients and nutrient metabolism on human health.The Yale Journal of Biology and Medicine, 91(2): 95 – 103.
- Ekot, N. (2022, Aug 02).Poultry Feed Prices in Nigeria Surge in Three Years. https://www.premiumtimesng.com/news/headlines/546234-poultry-feed-prices-innigeria-surge-164-in-three-years.html/
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- Food and Agriculture Organisation, (2020).Guideline to mitigate the impact of the COVID -19pandemic on livestock production and animal health. Food and Agriculture Organization of the united Nations Rome.
- Food and Agriculture organization. (2019).The future of livestock in Nigeria.Opportunities and challenges in the face of uncertainty.FAO, Rome, Italy.
- Hamidu, J. A., Osie-Adjei, A., &Oduro-Owusu, A. D. (2022). Poultry waste management-manure.
- Masaki, M. N., Lee, I., Duns, H., Toromade, F., & Ayo, O. (2020). Poultry sector study in Nigeria. Netherlands Enterprise Agency (NABC, 2020).
- Muhammed, A. B., &Abdulmajeed, A.T. (2022).Impact of naira redesign and monetary policy on Nigeria economy. International Journal of Research in Finance and Management, 5(2), 226-232.
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- Nmorsi, J., Nkechukwu, G. C., &Asiagwu, H. (2024).Cash crunch and the Nigerian economy. International Journal of Management & Entrepreneurship Research, 6(1), 30-45.
- Nonye, B. (2022). Causes and Solutions to Egg Glut in Egg Production.Poultry, Animal Section, Agric4profits, Nigeria.https:// agric4profits.com/causes-solutions-ofegg-glut-in-egg-production/ Accessed March 27, 2023.
- Ohagwu, V. A., Onwubuya, E. A., & Nwobodo, C. E. (2021). Enterprise training needs of poultry farmers during covid-19 pandemic in Enugu State, Nigeria. Journal of Agricultural Extension, 26(1), 129-137.
- Olowe, R. A. (2018). Financial management: Concepts, financial system and business finance. 4th Eds. Brierly Jones Nigeria Limited.
- Otitoju, M. A., Dirisu, I. H., Ojokojo, P. P., & Abdul, F. (2023). Cashless policy and Naira redesign of the Central Bank of Nigeria (CBN): A review. Journal of Global Economics and Business, 4(14), 45-59.
- Oyadeyi, O. (2023). The proposed naira redesign, the ensuing cash crunch, and their Implications on the Nigerian economy– Evidence from Q1 2023. Available at SSRN 4461208.
- Rewane, B. (2023, Feb 10th). Naira swap policy may affect Q1 2023 GDP by 5%. Channels live TV.
- Sakarombe, U., &Marabada, N. D. (2017).Electronic money or cash?In face of liquidity crisis in Zimbabwe. International Journal of Academic Research in Business and Social Sciences, 7(11), 63-73.
- Tarurhor, E. M., &Aruoren, E. E. (2023). Effects of cash crunch on small and medium scale enterprises in delta state. Finance & Accounting Research Journal, 5(4), 57-64.
- Thijssen, M. H., &Agbara, C. (2023). Progress Report Collaborative Seed Programme Nigeria: Programme under the Nigeria Netherlands Seed Partnership (No. Report WCDI-23-255).Wageningen Centre for Development Innovation.
References
Agbede, J. O. (2019). Alternative Feed Resources: Key to Profitable Livestock Enterprise in Nigeria. Inaugural Lecture Series 109, Delivered on Tuesday May 21, 2019 at the Federal University of Technology, Akure, Nigeria.
Alabi, O. M. (2020). Perennial egg glut in poultry production in south-western Nigeria: causes and the way forward - a review. Bowen Journal of Agriculture, 7(1), 106 – 111.
Aladejebi, O. J., Fakayode, S. B., Oronti, O. O., & Sani, T. P. (2019). Post Economic Recession and Agricultural Production in Nigeria: A Case Study of Small Scale Poultry Egg Farming.
Amuge, O. (2023, March 23).Poultry farmers blame N30bn loss on cash crunch and egg glut. Business a.m. Retrieved from https://www.businessamlive.com/poultry-farmers-blame-n30bn-loss-on-cash-crunch-and-egg-glut/
Bates, T. W., Kahle, K. M., &Stulz, R. M. (2009). Why do US firms hold so much cash than they used to? The Journal of Finance, 64(5), 1985-2021.
Central Bank of Nigeria (2022).Redesigning of the Currency.www.cbn.gov.ng
Chen, Y., Michalak, M. &Agellon, L. B. (2018).Importance of nutrients and nutrient metabolism on human health.The Yale Journal of Biology and Medicine, 91(2): 95 – 103.
Ekot, N. (2022, Aug 02).Poultry Feed Prices in Nigeria Surge in Three Years. https://www.premiumtimesng.com/news/headlines/546234-poultry-feed-prices-innigeria-surge-164-in-three-years.html/
Egbebe. G. (2023, April 13).Egg glut: Poultry farmers seek FG’s intervention, say states’ mop-up not enough. https://punchng.com/egg-glut-poultry-farmers-seek-fgs-intervention-say-states-mop-up-not-enough/
Elumoye D. (2022, Dec 13). President: CBN Has My Backing to Redesign Naira Notes. https://www.thisdaylive.com/index.php/2022/10/31/president-cbn-has-my-backing-to-redesign-naira-notes/
Food and Agriculture Organisation, (2020).Guideline to mitigate the impact of the COVID -19pandemic on livestock production and animal health. Food and Agriculture Organization of the united Nations Rome.
Food and Agriculture organization. (2019).The future of livestock in Nigeria.Opportunities and challenges in the face of uncertainty.FAO, Rome, Italy.
Hamidu, J. A., Osie-Adjei, A., &Oduro-Owusu, A. D. (2022). Poultry waste management-manure.
Masaki, M. N., Lee, I., Duns, H., Toromade, F., & Ayo, O. (2020). Poultry sector study in Nigeria. Netherlands Enterprise Agency (NABC, 2020).
Muhammed, A. B., &Abdulmajeed, A.T. (2022).Impact of naira redesign and monetary policy on Nigeria economy. International Journal of Research in Finance and Management, 5(2), 226-232.
Nnodim O. (2023, March 30). Farmers lose N30bn to naira crisis, says AFARN. Retrieved from https://punchng.com/farmers-lose-n30bn-to-naira-crisis-says-afarn/
Nmorsi, J., Nkechukwu, G. C., &Asiagwu, H. (2024).Cash crunch and the Nigerian economy. International Journal of Management & Entrepreneurship Research, 6(1), 30-45.
Nonye, B. (2022). Causes and Solutions to Egg Glut in Egg Production.Poultry, Animal Section, Agric4profits, Nigeria.https:// agric4profits.com/causes-solutions-ofegg-glut-in-egg-production/ Accessed March 27, 2023.
Ohagwu, V. A., Onwubuya, E. A., & Nwobodo, C. E. (2021). Enterprise training needs of poultry farmers during covid-19 pandemic in Enugu State, Nigeria. Journal of Agricultural Extension, 26(1), 129-137.
Olowe, R. A. (2018). Financial management: Concepts, financial system and business finance. 4th Eds. Brierly Jones Nigeria Limited.
Otitoju, M. A., Dirisu, I. H., Ojokojo, P. P., & Abdul, F. (2023). Cashless policy and Naira redesign of the Central Bank of Nigeria (CBN): A review. Journal of Global Economics and Business, 4(14), 45-59.
Oyadeyi, O. (2023). The proposed naira redesign, the ensuing cash crunch, and their Implications on the Nigerian economy– Evidence from Q1 2023. Available at SSRN 4461208.
Rewane, B. (2023, Feb 10th). Naira swap policy may affect Q1 2023 GDP by 5%. Channels live TV.
Sakarombe, U., &Marabada, N. D. (2017).Electronic money or cash?In face of liquidity crisis in Zimbabwe. International Journal of Academic Research in Business and Social Sciences, 7(11), 63-73.
Tarurhor, E. M., &Aruoren, E. E. (2023). Effects of cash crunch on small and medium scale enterprises in delta state. Finance & Accounting Research Journal, 5(4), 57-64.
Thijssen, M. H., &Agbara, C. (2023). Progress Report Collaborative Seed Programme Nigeria: Programme under the Nigeria Netherlands Seed Partnership (No. Report WCDI-23-255).Wageningen Centre for Development Innovation.