THE PAINS AND GAINS OF POULTRY BUSINESS DURING THE CHRISTMAS SEASON

The Christmas season is here, and with it comes the unmistakable rise in demand for poultry products, particularly chickens and turkeys. For many poultry farmers, this is the most profitable period of the year. However, while the yuletide season offers significant opportunities for the poultry business, it also comes with its share of challenges and difficulties. Here, we explore both the pains and gains of poultry farming during this festive period and discuss strategies to overcome obstacles and maximize profits. This article is based not only on industry insights but also on my personal experiences as a player in the poultry value chain.

The Gains of Poultry Business During the Yuletide Season

  1. Increased Demand: The festive season is synonymous with celebrations, and poultry products are a staple in most holiday meals. From fried chicken to roast turkey, the demand for poultry skyrockets, creating an opportunity for farmers to sell their products at premium prices. Although there is marked decrease in demand this time around when compared to the previous years.
  2. Bulk Purchases: Retailers, hotels, and event organizers often buy poultry in bulk for end-of-year parties and events. These bulk orders reduce marketing and distribution costs, making it easier for farmers to move large volumes of stock. In one instance, a local restaurant chain purchased over 1500 chickens from a colleague’s farm for their Christmas menu.
  3. Market Visibility: Many farmers use the festive season to establish relationships with new customers and expand their market reach. Positive customer experiences during this time can lead to repeat business in the future. For example, a satisfied customer from one of the past Christmas seasons later became a loyal buyer who regularly ordered for family events throughout the year.

The Pains of Poultry Business During the Yuletide Season

  1. High Production Costs: High costs of chicks and feeds are major pain points for the poultry farmers in the festive period due to increased demand. This can eat into the profits of farmers who did not prepare adequately. For instance, increasing feed prices in year 2024 was something the industry has never seen before.
  2. Diseases and Mortality Overcrowded pens and poor hygiene, often a result of scaling up production to meet demand, can lead to disease outbreaks. The risk of losing birds to common poultry diseases like coccidiosis, Newcastle disease or chronic respiratory disease is heightened during this period. One year, I know a couple of famers who lost more than 15% of their stock to sudden outbreaks, thus significantly affecting their revenue.
  3. Intense Competition The influx of poultry products into the market from small-scale farmers and large commercial operations can lead to price wars, reducing profit margins for some producers. Some farmers had to lower their prices by 15% to remain competitive during this particularly saturated season.
  4. Marketing Challenges Despite the high demand, poor marketing strategies have made some farmers struggle to sell their stock. Additionally, delayed payments from buyers, especially wholesalers, can create cash flow issues. For instance, when a bulk buyer delays payment beyond the agreed date, it impacts the ability to reinvest in the business.
  5. Logistics and Distribution The rush of the festive season often results in transportation challenges. Delays in getting products to the market can lead to spoilage or loss of potential sales. One year, road congestion delayed my deliveries, causing stress to the birds and a 5% mortality rate.
  6. Challenges from Government Officials: In many regions, poultry farmers face difficulties from government officials who block roads under the guise of collecting taxes on live animals in transit. These roadblocks often cause significant delays, stress the animals, and lead to increased mortality rates. In one instance, a farmer lost 8 turkeys during a lengthy stop at a revenue collection point in Sagamu, Ogun state; resulting in a loss of both revenue and time.

Strategies to Mitigate Challenges and Maximize Gains

  1. Advance Planning: Farmers should plan their production cycles to align with the festive season. Ensuring that birds reach marketable weight by December can help avoid last-minute rushes. For instance, start preparing Christmas turkeys not later than July/August to ensure they are ready for sale by December celebrations.
  2. Cost Management
    1. Bulk Purchase of Inputs: Buying feed and other supplies in advance can help mitigate price hikes. I know a farmer who saved up to 20% on feed costs by purchasing in bulk during September.
    1. Efficient Feed Use: Employ feed optimization techniques to ensure birds gain weight without excessive waste.
  3. Disease Prevention
    1. Strict Biosecurity Measures: Limit access to farms, sanitize equipment, and isolate sick birds. Implementing these measures can reduce disease incidents the farm significantly.
    1. Vaccination: Ensure all birds are vaccinated against common diseases in advance. Early and timely vaccination will help farmers avoid major outbreak during the yuletide season.
    1. Clean Environment: Maintain proper hygiene in pens to prevent overcrowding and disease outbreaks.
  4. Effective Marketing
    1. Social Media Campaigns: Use platforms like WhatsApp, Facebook and Instagram to showcase poultry products and reach potential customers. A Facebook post by a farmer during the yuletide generated over 50 inquiries and 20 bulk orders.
    1. Loyalty Discounts: Offer discounts to repeat customers and those buying in bulk. For example, we worked with farmers last year on a loyalty program that helped retain 70% of their customers year-round in 2024.
    1. Collaborate with Retailers: Partner with supermarkets, restaurants, and caterers to ensure a steady demand for your products.
  5. Efficient Distribution
    1. Local Sales: Focus on selling to nearby markets to reduce transportation challenges. This strategy reduced transport costs of some farmers by 15% this season
    1. Delivery Services: Invest in or collaborate with reliable logistics companies to deliver products directly to customers.
  6. Advocacy and Partnerships
    1. Engage Authorities: The poultry association of Nigeria (PAN) should advocate for the reduction or elimination of unnecessary roadblocks and taxes. Collaborative efforts of PAN in some states helped reduce checkpoint delays for poultry farmers in the past.
    1. Route Planning: Identify alternative routes to avoid problematic areas and reduce transit time.
  7. Proper Record-Keeping Keep detailed records of expenses, sales, and profits to evaluate the success of your operations and make informed decisions for the next production cycle.
  8. Diversification Consider offering value-added products such as smoked or frozen chicken and turkey. These products can fetch higher prices and attract a broader range of customers. For example, I introduced smoked chicken and turkeys this season and saw a 25% increase in revenue.

Conclusion

The yuletide season presents a golden opportunity for poultry farmers to boost their income and expand their market reach. However, the season’s potential gains are often accompanied by significant challenges. By adopting proactive measures such as proper planning, efficient marketing, strict biosecurity protocols, and advocacy against undue taxes, farmers can overcome these obstacles and make the most of the festive season. With the right strategies, the pains of poultry farming can be minimized, allowing the gains to shine through.

As you round up your poultry business for this Christmas, remember that success lies in planning ahead, maintaining quality, and leveraging opportunities to build a loyal customer base for the future.