Rising Feed Prices in Maize and Cassava

The diversion of maize and cassava for ethanol production is creating a ripple effect. It is across African markets, driving up feed prices and raising concerns among agricultural stakeholders. Prof. Kola Adebayo, Deputy Vice-Chancellor (Development) at the Federal University of Agriculture, Abeokuta, has highlighted this issue, citing significant challenges for the feed industry and broader agricultural economy.

Impact on Feed Prices and Supply Shortages

Maize and cassava are essential components in animal feed, playing a critical role in poultry, livestock, and aquaculture farming. However, the growing demand for ethanol production is reducing the availability of these crops for feed manufacturers. Prof. Adebayo notes that this shift could lead to supply shortages, ultimately pushing up the cost of animal products for consumers.

The cassava sector, in particular, is facing heightened demand from industrial applications, including food processing and ethanol production, further straining supply. Feed millers now grapple with higher raw material costs, making it difficult to source affordable, high-quality inputs.

Production Challenges and Declining Yields

Nigeria's cassava and maize production is struggling to keep pace with the growing demand. Farmers face numerous obstacles, such as high production costs, limited access to improved crop varieties, and inadequate storage and processing facilities. These issues result in significant post-harvest losses, exacerbating the pressure on feed manufacturers.

The situation is further complicated by a projected decline in maize and soybean production, essential for feed production. The AFEX 2024 Wet Season report anticipates a 13% drop in maize and soybean output, driven by rising fertilizer costs and adverse weather conditions. Maize production is expected to decline by 5.6%, with total output estimated at 11 million metric tons (MMT).

Ethanol Production as a Factor

The push to use cassava, maize, and sugarcane for ethanol production is gaining momentum as countries like Nigeria explore alternatives to traditional fuels. The Major Energies Marketers Association of Nigeria (MEMAN) advocates this shift, citing potential savings of $7.4 billion annually by supplementing petrol with ethanol. While this could reduce energy poverty and emissions, it further strains the availability of cassava and maize for feed production.

Global Developments in Ethanol and Maize Research

Globally, efforts to enhance ethanol production from maize are advancing. In India, the Indian Institute of Maize Research (IIMR) is developing maize varieties with higher ethanol yields. This innovation could improve grain-based ethanol production efficiency while providing farmers with better pricing opportunities.

Conclusion

The rising use of maize and cassava for ethanol production poses significant challenges for Africa’s feed industry. With feed prices climbing and agricultural output under pressure, it is crucial for stakeholders to implement strategies that support farmers, ensure adequate supply for feed manufacturers, and balance the growing demand for ethanol.





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