Jigawa State, Srinivasa Farms Form $10M Poultry Hatchery JV

• The Jigawa State Government has signed a $10 million joint venture agreement with India's Srinivasa Farms Private Limited.
• The partnership aims to establish a modern poultry hatchery in Northern Nigeria, with Srinivasa Farms holding 60% equity and the state government 40%.
• The project seeks to improve the supply of day-old chicks to farmers and enhance food security across the region.
• It will address current challenges posed by long-distance transportation of chicks, which negatively impacts their condition and farmer profitability.
• The agreement includes provisions for training, technical guidance, and support for smallholder poultry farmers to boost production and business operations.

This Jigawa State Srinivasa Farms joint venture exemplifies a significant public-private partnership model, poised to address critical agricultural supply chain deficiencies and foster economic growth in Northern Nigeria.

The Jigawa State Government has formally entered into a significant $10 million joint venture agreement with Srinivasa Farms Private Limited, an Indian agricultural firm. This strategic partnership aims to establish a state-of-the-art poultry hatchery, designed to substantially enhance the availability of day-old chicks for local farmers. The agreement, publicly announced on a Friday by Hamisu Mohammed Gumel, the Chief Press Secretary to Governor Umar Namadi, outlines a clear equity structure: Srinivasa Farms will hold a 60 percent stake, while the Jigawa State Government will retain the remaining 40 percent.

This initiative is poised to introduce the first modern hatchery of its kind to Northern Nigeria, marking a pivotal step in regional agricultural infrastructure. Governor Umar Namadi, who presided over the signing ceremony, expressed strong confidence that this investment would not only create new opportunities for poultry farmers but also significantly bolster efforts to achieve food security across the state and the wider nation.

Governor Namadi articulated that the project is expected to revolutionize the poultry sector, extending its positive impact beyond Jigawa State to encompass Northern Nigeria and the entire country. He emphasized that this endeavor aligns with the Federal Government’s broader agenda on food security. The decision to partner with Srinivasa Farms was a result of extensive engagements, including a visit by a state delegation to the company's facilities in India, where officials observed their advanced poultry operations and successful support programs for smallholder farmers.

This comprehensive approach to empowering smallholder farmers to build sustainable businesses was a key factor in the state's decision to proceed with the partnership. The agreement also incorporates provisions for crucial training, technical guidance, and other forms of support, all aimed at improving production and business operations for smallholder poultry farmers. This hatchery deal represents one of five partnerships being pursued by the state following Governor Namadi's visit to India, reflecting a concerted effort to attract foreign investment, strengthen agricultural value chains, and generate opportunities for young people.

A primary challenge currently faced by poultry farmers in Jigawa and the broader Northern region is their reliance on day-old chicks transported from distant locations, such as Kaduna, or even from production centers in southern Nigeria, often spanning distances of 1,200 to 1,500 kilometers. These prolonged journeys frequently compromise the condition of the birds upon arrival and can impede their subsequent response to feeding, as highlighted by Professor Salim Abdurrahman Lawal, the Commissioner for Livestock Development.

Senthil Kumar Krishnan, Vice-President of Srinivasa Farms, affirmed that the project will directly address these logistical issues by enabling local production of chicks. He noted that the new facility would drastically reduce transportation distances within Jigawa, ensuring that no location in the state is more than approximately 150 kilometers from the hatchery. This localized supply, coupled with the company's commitment to providing technical support on raising birds and improving production outcomes, is expected to enhance the profitability for farmers by ensuring access to quality chicks and better production performance.

This Jigawa State Srinivasa Farms joint venture exemplifies a significant public-private partnership model, poised to address critical agricultural supply chain deficiencies and foster economic growth in Northern Nigeria. By empowering rural communities and improving poultry production through technical services and quality products, the project is set to enhance the livelihoods of countless farmers. The investment directly tackles the high cost and unreliable supply of day-old chicks, which have historically hindered the growth of the poultry sector in the region.

The establishment of this modern hatchery is not merely about increasing chick supply; it is about building a resilient and self-sufficient poultry industry within Jigawa State. This initiative serves as a practical example of how targeted foreign investment, combined with state government support, can drive agricultural transformation and contribute meaningfully to national food security objectives.

This joint venture agreement provides a practical example of a public-private partnership structure (60/40 foreign/state equity) for agricultural development in Nigeria. Lawyers advising foreign investors or state governments on similar projects can analyze this deal for insights into investment incentives, regulatory frameworks, and structuring considerations for large-scale agricultural infrastructure projects in the region.

Source: Original reporting via PUNCH Nigeria