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PIG FARM INDUSTRY AND OPPORTUNITIES IN NIGERIA

PresenterBENNY MISTRY

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About NIGERIA

Landmass comparison, Germany, France and Denmark easily fit in

Nigeria, the most populous country in Africa, is situated on the Gulf

of Guinea in West Africa. Its neighbours are Benin, Niger, Cameroon,

and Chad. The lower course of the Niger River flows south through

the western part of the country into the Gulf of Guinea. Swamps and

mangrove forests border the southern coast; inland are hardwood

forests.

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About NIGERIA”Nigeria er enormt komplekst land med en masse muligheder og

selvfølgelig også faldgruber, og det er jo derfor, vi skal være til stede”.

Citat:Torben Getterman - Danske Ambassadør i Nigeria

”Med cirka 170 millioner indbyggere har et land som Nigeria et kæmpe

forbrugerpotentiale” Citat: Margit Thomsen, Danske ambassadør i

Ghana.

Grib chancen og tænk langsigtet - Det er klart, at især libaneserne,

kineserne og inderne har fået øjnene op for mulighederne, fordi de ikke har

noget imod at arbejde i svære miljøer. Men det betyder også, at

Der er en masse nye muligheder, som ingen har prøvet før,”Citat: Jakob

Bejer - General Konsul Nigeria

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MAJOR TRIBES IN NIGERIA

PresenterBENNY MISTRY

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About Lagos State

Lagos State is located in the south western part of Nigeria. It is the most populous city

in Nigeria, is the second fastest-growing city in Africa and the seventh in the world.

Founded: May 27, 1967 Area: 3,577 km².

The population of Lagos is an estimated 21,000,000 making Lagos the largest city in

Africa. The indigenous people of Lagos state belong to the Yoruba ethnic group and

the language spoken in Lagos is Yoruba However, the state is populated by people

from all over the country .The state hosts the nation’s two largest seaports Apapa and

Tin Can Island. There are more than 2,000 industries of various sizes and description

in Lagos State.

Agricultural resources; Maize, Yam , Cassava, Vegetable, Rice, Yam, Cocoyam, cowpea

,Soya bean, pineapple, livestock rearing.

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City of Lagos

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GLOBAL INDICES

• The current world population of 7.3 Billion is expected to reach 8.5billion by 2030, 9.7 billion in 2050 and 11.2 billion in 2100 according toUN DESA report

• India is expected to become the largest country in population size,surpassing China around 2022, while Nigeria population will surpass theUnited States by 2050

• Nigeria will be the world’s 3rd most populous nation by 2050

• United Nations projection by year 2030 Nigeria's population will haverisen by 43%.

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GLOBAL INDICES

• The world’s pork industry has been on the rise since the 1970s, and globalproduction surpassed 110 million tons in 2014.

• Pork is the world’s most widely-eaten meat by a substantial margin,surpassing both chicken and beef. The pork industry includes all forms of pigmeat, including fresh and processed meats

• pork (pig meat) is the most widely consumed meat in the world, followedby poultry and beef. The value of trade in pig products around the worldruns into billions of dollars every year and Africa enjoys less than 5 percentof this action. China, with a fifth of the world’s population, is both thelargest producer and net importer of pig products on the planet!

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GLOBAL INDUSTRY INDICES

0

0.5

1

1.5

2

2.5

3

3.5

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Developed Developing

Beef

Pork

Poultry

Milk

Projected production growth of various livestock products to 2020

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PIG FARMING IN NIGERIA• Livestock production constitutes a very important component of agriculture in

developing countries like Nigeria.

• Nigeria is one of the largest consumers of pork in Sub Saharan Africa. In 1943

Nigeria had the largest pig farm in the world (No longer existing).

• The Lagos State Government Currently has three pig farm estates – The Oke-

Aro Pig Farm Estate, The Gberigbe Pig Farm Estate and Ikorodu Pig Farm

Estate across 120 hectares of land and a proposed new Pig Farm in Badagry

for 2017 sitting on 30 hectares of land with a combined total of 5000 Pig

Famers

• Over years now the Oke–Aro Pig farm has arguably been regarded as the

biggest Pig Farm in all of Africa and has been the source of livelihood for over

3000 pig farmers struggling to meet the demand of 50 million consumers.

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CHALLENGES

• Inability to meet Market Demand

• Sourcing of Feeds for the Animals a major concern to the farmers

• The major source of feed has been and still is ”spent wet grain“

from various breweries in the country.

• Sudden decline in breweries production over the years is slowly

shutting down the Pig Farm industry.

• Absence of a FEED MILL to chatter for 5000 farmers their pigs

• Absence of Exotic breed

• Due to inadequate nutrients in feed in 7 months a pig is only able

to reach 40 – 45kg of weight

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CHALLENGES

• Absence of international Standard Abattoir and Pork Processing

Plant for local consumption and Export Possibilities

• Short fall on local demand for Pork Meat

• Export Potential Unexploited

• Farm structure is poor and primitive

• Poor Reproduction Performance

• Imbalance in feed nutrition causing stunted growth of Animals

• High Mortality rate

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FACTS AND TRENDS

•The Middle class with increased income have doubled the last 10 years.Average life span increased as affordable health care now made available.

•Urban population has developed new habits at the Invent of SouthAfrican Shoprite in shopping Malls in every city. This is more evident inurban areas like Lagos, Ibadan, Illorin, Port Harcourt, Benin, Owerri,Calabar, Abuja etc. In Lagos alone, there are 6 Shoprite shopping mallsand 4 of Shoprite Subsidiary Usave (ten stores) and still NOT enough tocater for increased demand on fresh meats especially pork meat and allforms of Processed Pork.

• There are currently 25 Shoprite Stores and 6 Usave stores (twenty eightstores) Country wide with 5 and 3 (eight) new stores opening in the firstand second quarter of 2017 respectively

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FACTS AND TRENDS

•The United National has projected Nigeria’s population by 2030 will haveincreased by 43%, ie from current about 170 million (2015) toapproximately 244 mio. Inhabitants.

•Shoprite Management and its Subsidiary Usave aim to have a total of117 stores by the year 2025

•Export markets to ECOWAS region - a potential market region awaitingaccess.

•Currently, population of South West Nigeria alone is over 40 million andgrowing. Supply of pork meat from local producers in the region, cannotmeet the fresh pork-meat demand by general population.

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FACTS AND TRENDS •Current exchange rate 1 US$ = Naira 485

•Kampala Agro Allied (Nigerian Company) makes $2.5m annually from the sale ofImported processed pork and is still unable to meet the markets growing demand.• Nigerian Government Policy to Reduce Importation to encourage Home grown

Products especially in he Agric sector has left a BIGGER GAP and WIDEROPPORTUNITY in the Pig Farming and Pork Processing sector to be taken advantageof.

• Shoprite in other to meet its customers demand has set up its own Pig Farm in Ikene(Ogun State Western Nigeria) and is still unable to meet its growing demand. Ikenefarm is currently buying Pigs from Local farmers to reduce shortfall gap. However thechallenge remains that they do not buy Pigs less than 85kg of weight. 95% of localfarmers are unable to meet this demand as their animals are characterised withstunted growth

• Current short fall for Pork Meat is 100,000 tons per week (2016 Statistics for ShopriteStores Demand Only). These Statistics do not include demand from otherdepartmental stores as well as flee markets country wide.

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SURROUNDING MARKET

•Export of both Pork Meats to West African countries and pig feet to Liberiavolumes 48 x 20' cntrs per annum.

•Cameroon, Benin, Togo, Ghana, Sierra Leone, Liberia, Guinea Bissauexcellent are also excellent markets to be developed.

Projected Export Capacity Potentials: Pork Meat 20201. Ghana: 60 x 20' cntrs per annum2. Cameroon: 30 x 20' cntrs per annum3. Benin: 10 x 20' cntrs per annum4. Togo: 30 x 20' cntrs per annum5. Sierra Leone: 15 x 20' cntrs per annum6. Liberia: 10 x 20' cntrs per annum7. Guinea Conakry: 5 x 20' cnrs per annum8. DRC: 30 x 20' cntrs per annum9. Angola: 50 x 20' cntrs per annum10. Sao Tome: 5 x 20 cntrs per annum

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Shoprite Ikeja Lagos and Shoprite Jabi Abuja

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THANK YOU

Ladies and gentlemen the time to make use of this opportunity is NOW.

2017 is the opportunity window.

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THANK YOU

Contact Denmark: Benny Mistry +45 91779800mistrybenny@gmail.com

Contact Nigeria: Mr. Moses Iloh +234 8033242176moses.iloh@gmail.com

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Q&A SESSION