Naija Breaking
Business

Jigawa signs $10m hatchery deal with India's Srinivasa Farms

2 min read
The gist
  • Jigawa has signed a $10m agreement with India's Srinivasa Farms to build a modern hatchery.
  • Srinivasa will hold 60 percent of the venture and the state government 40 percent.
  • Officials say local day-old chicks will cut long transport from Kaduna and southern farms.

The Jigawa State Government has signed a $10 million agreement with India's Srinivasa Farms Private Limited to set up a modern hatchery in the state, in a push to fix the supply of day-old chicks to poultry farmers.

The deal was signed at the Government House in Dutse, with Governor Umar Namadi presiding. Under the arrangement, Srinivasa Farms will hold 60 percent equity while the state government owns 40 percent, according to a statement from the governor's Chief Press Secretary, Hamisu Mohammed Gumel.

The two sides describe the paper differently: PM News reported it as a Joint Venture Agreement, while Leadership called it a Memorandum of Understanding. Both outlets agree on the $10 million figure and the 60-40 split.

Governor Namadi said the partnership followed a state visit to Srinivasa's facilities in India and a return visit by the company's officials to Jigawa for a field assessment. He said the hatchery would support the federal government's food security agenda and create opportunities for poultry farmers and young people.

"This project will revolutionize the poultry industry," the governor said, adding that it would end years of struggle by farmers to get quality chicks.

Why it matters for farmers

Poultry farmers in Jigawa and much of the north currently buy day-old chicks from far away. The Commissioner for Livestock Development, Prof. Salim Abdurrahman Lawal, said many chicks come from production centres in southern Nigeria, travelling an estimated 1,200 to 1,500 kilometres.

"This long journey affects their condition and slows their response to feeding," he said. With a hatchery in the state, no location in Jigawa should be more than about 150 kilometres from the facility, he added.

Srinivasa Farms Vice President Senthil Kumar Krishnan said farmers currently depend on supplies from places like Kaduna, and that producing chicks locally would address quality problems. He said the company would also give technical support so farmers raise birds better and earn more.

According to the governor's spokesperson, the agreement covers training and technical guidance for smallholder farmers. Leadership reported that it also includes disease surveillance, monitoring and quality assurance.

Governor Namadi said the hatchery deal is one of five partnerships the state is pursuing after his India trip, and that the company will supply chicks beyond Jigawa.

What happens next

The state says it is committed to ensuring the company takes off as soon as possible, and plans delivery points that will involve young people in distributing chicks. No start date for construction or first supply was given in the reports.

Sources

This story draws on reporting by:

More stories

Unilever Nigeria posts ₦26.4bn profit for nine months, declares ₦11.5bn dividend

Business3 sources

First HoldCo profit rises 65% to ₦744.5bn in nine months

Business4 sources

CBN gives JPMorgan preliminary nod for merchant bank in Nigeria

Business4 sources

CapitalSage marks 10 years with new Ibadan headquarters and free public exhibition

Business2 sources