Livestock Feeds to raise additional capital for business restructuring
Posts N8.9b turnover
Livestock Feeds Plc, a subsidiary of UAC of Nigeria Plc, has unfolded plans to raise additional capital for the restructuring of its operations and improve the company’s performance.
The Chairman of the company, Larry Ettah, who stated this during the company’s yearly general meeting, held in Lagos on Wednesday, explained that the process for raising the capital, which would be issued by way of rights, is ongoing, adding that the firm is currently waiting for the Securities and Exchange Commission’s approval.
He pointed out that once the regulatory authority gives the approval, the company would announce the amount to be raised and other procedures for the rights issue to the public.
Ettah added that the whole exercise is expected to be concluded within this year.
The Chairman explained that the feed milling industry encountered acute shortage of the major raw materials of maize and soya bean meal, noting that the prices of these products increased by 40 per cent during the year under review. .
“The acute shortage of foreign exchange and the worsening exchange rate also affected our business as importation of certain ingredients became difficult and expensive. All these increased costs, which could not be recovered through price increases, led to shrunken margins in the industry.
“Acute shortage and production of poor quality Day Old Chicks (DOC) by hatcheries affected the ability of farmers to restock birds. The breakout of the dreaded avian influenza in the first month of the year, which was thought to be an epidemic that would soon fizzle out, proved to be a major setback in the industry as it persisted for the better part of the year. .
“The disease ravaged many farms all over the country leading to culling of millions of birds and further worsening the decreased poultry population as most of the affected farms are yet to restock. In addition, the industry suffered severe egg glut and weak prices of poultry products leading to the inability to recover the increased costs of yields. This led to the shutdown of many poultry farms as the business was considered to be unprofitable”.
Ettah bemoaned the reoccurrence of Avian Influenza disease especially in the northern part of the country.