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This is the method or agro practice whereby farmers raise livestock or poultry under contract for a poultry processing company. Contract animal protein farming has existed since the 1930s and is now the industry standard in most parts of the developed world.

Unigold Foods is one of the pioneers of contract farming in Nigeria. We have been working with poultry farmers on a contract basis since 2010, and it’s been a relationship we believe works for both the farmers and Unigold Foods.

Under the Unigold Foods animal protein contract farming program, we supply the birds/animals, feeds, and provide technical advice and assistance (and in some instances, the company provides housing and other key utilities), while the animal protein farmers provide the labor, housing, and utilities. This cooperation increases efficiency and quality while ensuring customers receive our products at the best possible prices.

It enables the farmer to have a regular income as per the terms of the contract. In addition, the contract farming scheme insulates the farmer from the risk of changing market prices as a result of the increase in the cost of inputs such as day-old chicks, feed, and feed ingredients (like maize and soybean meal), which represent the majority of the cost of raising livestock.

Hence, our farmers’ compensation is not dependent on feed costs or prices at the supermarkets. Under most contract farming schemes, especially the type implemented by Unigold Foods, our contract farmer families are happy and maximize their returns by growing their livestock or poultry products as per the terms of the contract.

Our contracts with our farmers are typically 24-36 months and are subject to immediate renewal upon agreement between the company and our farmers.

We provide our animal protein farmers with written contracts outlining how they will be paid. Our farmers are basically paid for how well they take care of the livestock and poultry and how much weight the livestock gains while they are on the farm.

We use a performance-based incentive system that rewards our farmers who effectively convert the feed we provide into weight gain. The payment formula includes factors such as:

• The number of animals produced.
• The amount of feed used.
• The performance of their flock compared to others.
• The weight of the animals delivered to the processing plants.

The performance-based pay program offered by Unigold Foods is very popular in America and Europe. While it is a relatively new process in Nigeria, it has been proven to be one of the most efficient and effective ways to raise animal protein and is gradually becoming popular here in Nigeria and Africa.

Yes. The Unigold Foods Animal Protein contract farming scheme is a relationship extensively regulated by Nigerian Law. Under our contracts, our farmers are entitled to:

• A written copy of their contract with the company.
• Information detailing how much they are paid.
• Information explaining how a contract can be cancelled.
• Right to a 120 days written notice of Unigold Foods' intention to terminate the contract.
• Right of the farmer to terminate the contract by giving a 120 days written notice.
• Right to discuss their contract with outside parties.
• Right to join an association of farmers.

Livestock and poultry farming, like any other business, require funds, and at times people have to borrow money to start, improve, or expand their operations. Each contract farmer must decide on their own the size and scope of their operations and how much debt they are willing to take on.

However, when a contract farmer has had a relationship exceeding 3 years with the company, our finance department has assisted farmers in raising funds from microfinance and commercial banks by acting as a guarantor for such loans.

Other than improvements, maintenance, or repairs to address animal well-being issues, Unigold Foods does not require equipment or housing specification upgrades in the middle of contracts.

However, we require farmers to meet a set of housing specifications outlined in the contracts. This is because modern housing ensures a more comfortable environment with improved ventilation and uniform temperatures, which also saves energy costs for the farmers.

Unigold Foods always works closely with our farmers, including regular visits by our extension workers and animal welfare specialists to provide technical advice, answer questions, and ensure best animal management practices.

If a farmer is not performing up to the estimated output/yield, we all lose. To avoid losses for both the company and farmer, we have a program in place designed to help them get back on track.

All farmers who grow livestock and poultry products for Unigold Foods have rights which are part of their contract. These rights are outlined in the “Unigold Foods Contract Animal Protein Farmers Bill of Rights.”

To be considered and selected as a Unigold Foods animal protein contract farmer, the prospective farmer must have an existing farmhouse for growing the animals, with such property being within a 60-90 km radius of the company-owned feed mills that service our poultry processing complex.

To learn more about contract farming opportunities, please fill out the contact form above with the subject "Contract Farming" or visit the Unigold Foods office nearest to you.