A weakening of the naira, as well as ongoing violence and insecurity in the northern regions of the country where animal feeds raw materials are being produced have tipped Livestock Feeds Plc into operational losses.
The company sources soya beans, millet, sorghum, corn, and wheat, which are raw material components in the manufacture of its products, locally.
And that makes it susceptible to a difficult business environment as it is in a much more precarious situation than the coronavirus period where a lockdown imposed by the government disrupted the distribution chain.
Livestock Feeds posted a loss after tax of N326.54 million in the first six months of 2025, from a profit of N1.41 billion the previous year.
Revenue was up a meagre 4.01 percent to N29.76 billion in September 2025 from N28.61 billion as at September 2024.
Sales growth of 4.01 percent in 2025 is lower than the 99.36 percent uptick recorded in the 2024 financial year, which underscores shortages of livestock feeds as poultry farmers continue to groan.
Livestock Feeds have said that it is imperative for the government to curb the insecurity in the north where all the additives used in making animal feeds are produced.
Since feed technically costs 70 per cent of cost of production in animal husbandry, it is not surprising that the input costs have skyrocketed.
Also, currency volatility has made the cost of imported corn to rise while the war between Russia and Ukraine, who are the two largest producers of the grains have exacerbated the already anemic position 0f Livestock Feeds.
Rising transportation and poor logistics also present challenges to this company who spends more to produce each unit of products.
Livestock Feeds cost of sales ratio stood at 87.02 percent, which means it spent N0.87 to produce every N1 unit of the product.
Then removal of subsidy on fuel and the liberalisation of the foreign exchange market added fire to the brazier of business who were reeling under a harsh operating environment.
The deteriorating operating performance of Livestock Feeds discourages investors who may dump shares over bleak future or weak future earnings growth.
Many Livestock producers have closed shops due to rising costs of feed, which aggravates food shortages that are worse than a cataclysmic earthquake in a country where 139 million live in poverty.
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