Theresa42
Well-known member
Not good. If farmers are not properly compensated, what incentive are they going to have to cull their chickens (slaughter their assests)?
Bird flu: Unpaid farmers in Nigeria could lose farms to creditors
Time is GMT + 8 hours
Posted: 15-Jul-2006 23:21 hrs
Poultry farmers in Nigeria whose 300,000 birds were culled this year following an outbreak of the deadly strain of H5N1 avian flu say they could lose their farms to creditors over bank loan default.
About 64 of 160 farmers who lost their poultry to the avian flu outbreak in Kano City were under pressure from banks to pay back loans or have their farms auctioned to enable banks to recover loans.
They complained they had still not been paid the 250 naira (two dollars/1.58 euros) per bird compensation promised by the Nigerian government.
"The federal government has not paid 64 farmers the paltry 250 naira per bird compensation and the farmers are being pestered by their creditors, particularly banks, to either pay their loans or have their farms auctioned," said Auwalu Haruna, secretary of Poultry farmers Association in Kano.
"Most of the farmers affected by the flu took loans from banks. Now that they have lost all their investment to avian flu and the government has not paid them the promised compensation that we feel is grossly inadequate, they are unable to pay back the loans on time," he said.
"If the banks sell off these farms, the poultry industry in Kano will be weakened further and that may even lead to its subsequent collapse," Haruna continued.
The deadly strain of the H5N1 avian influenza was detected on poultry farms in Kano, the commercial hub of the region, last February shortly after the outbreak of the flu virus was confirmed on the first farm in Jaji, 200 kilometres (125 miles) away.
Over 300,000 birds were lost to the flu outbreak from 160 farms in the city, making Kano the worst hit in Nigeria, veterinary officials said.
Ibrahim Mohammed Abdullahi of Godiya poultry farm,yet to receive compensation for his 10,000 flu-infected chickens, said banks have sent several letters asking him to pay back loans or lose his farm.
"I keep requesting more time, hoping that the government will pay the compensation to settle part of the loans and renegotiate with the bank for the payment of the remaining part because the compensation will not be enough to settle the whole loan," Abdullahi said.
"Besides, the interest is getting higher by the day", Abdullahi said.
Haruna blamed the Central Bank of Nigeria and the Kano State government for the farmers insolvency: while the bank has refused to extend a credit guarantee to affected poultry farmers, the Kano State government is foot-dragging in providing financial reliefs.
Kanos agriculture commissioner Ibrahim Garba said he had presented the farmers case before the state government, which would soon decide on the amount it would pay the farmers for every bird lost to the disease.
Bird flu has been detected in 15 Nigerian states, including Lagos, and the federal Nigerian capital Abuja. No human case has been reported.
More than 450,000 chickens have already been slaughtered across Nigeria, mainly in the north where the disease was detected for the first time in sub-Saharan Africa.
The Nigerian government has so far disbursed 876 million naira (6.25 millions dollars/4.95 million euros) to farmers affected by bird flu.
It recently paid 12.6 million naira (900,000 dollars/711,000 euros) as indemnity to poultry farmers in nearby Kaduna, where the H5N1 virus was first discovered. ? AFP
http://www.todayonline.com/articles/130876.asp
Bird flu: Unpaid farmers in Nigeria could lose farms to creditors
Time is GMT + 8 hours
Posted: 15-Jul-2006 23:21 hrs
Poultry farmers in Nigeria whose 300,000 birds were culled this year following an outbreak of the deadly strain of H5N1 avian flu say they could lose their farms to creditors over bank loan default.
About 64 of 160 farmers who lost their poultry to the avian flu outbreak in Kano City were under pressure from banks to pay back loans or have their farms auctioned to enable banks to recover loans.
They complained they had still not been paid the 250 naira (two dollars/1.58 euros) per bird compensation promised by the Nigerian government.
"The federal government has not paid 64 farmers the paltry 250 naira per bird compensation and the farmers are being pestered by their creditors, particularly banks, to either pay their loans or have their farms auctioned," said Auwalu Haruna, secretary of Poultry farmers Association in Kano.
"Most of the farmers affected by the flu took loans from banks. Now that they have lost all their investment to avian flu and the government has not paid them the promised compensation that we feel is grossly inadequate, they are unable to pay back the loans on time," he said.
"If the banks sell off these farms, the poultry industry in Kano will be weakened further and that may even lead to its subsequent collapse," Haruna continued.
The deadly strain of the H5N1 avian influenza was detected on poultry farms in Kano, the commercial hub of the region, last February shortly after the outbreak of the flu virus was confirmed on the first farm in Jaji, 200 kilometres (125 miles) away.
Over 300,000 birds were lost to the flu outbreak from 160 farms in the city, making Kano the worst hit in Nigeria, veterinary officials said.
Ibrahim Mohammed Abdullahi of Godiya poultry farm,yet to receive compensation for his 10,000 flu-infected chickens, said banks have sent several letters asking him to pay back loans or lose his farm.
"I keep requesting more time, hoping that the government will pay the compensation to settle part of the loans and renegotiate with the bank for the payment of the remaining part because the compensation will not be enough to settle the whole loan," Abdullahi said.
"Besides, the interest is getting higher by the day", Abdullahi said.
Haruna blamed the Central Bank of Nigeria and the Kano State government for the farmers insolvency: while the bank has refused to extend a credit guarantee to affected poultry farmers, the Kano State government is foot-dragging in providing financial reliefs.
Kanos agriculture commissioner Ibrahim Garba said he had presented the farmers case before the state government, which would soon decide on the amount it would pay the farmers for every bird lost to the disease.
Bird flu has been detected in 15 Nigerian states, including Lagos, and the federal Nigerian capital Abuja. No human case has been reported.
More than 450,000 chickens have already been slaughtered across Nigeria, mainly in the north where the disease was detected for the first time in sub-Saharan Africa.
The Nigerian government has so far disbursed 876 million naira (6.25 millions dollars/4.95 million euros) to farmers affected by bird flu.
It recently paid 12.6 million naira (900,000 dollars/711,000 euros) as indemnity to poultry farmers in nearby Kaduna, where the H5N1 virus was first discovered. ? AFP
http://www.todayonline.com/articles/130876.asp