Category: Agriculture

  • Chinese firm to build rice mill, research institute in Akwa Ibom

    Chinese investors are to establish an integrated rice mill in Akwa Ibom State to boost production.

    Chairman, Heilongjiang Hegang Sanjiang Plain Rice Group, Heilongjiang, China, Mr. Wang Jingxin, stated this when the delegation visited the  Commissioner for Agriculture and Natural Resources, Dr. Nathan Matthew Ekaette, in  Uyo, the state capital.

    Accompanied by the Consular-General of Nigerian Embassy in China, Ambassador Ali Ocheni, the Trade Commissioner in the Embassy, Mr. A. Agboluaje, Jingxin  spoke of plans to set up a rice research institute in the state.

    He said they were in the state to scout for investment opportunties in the rice value chain.

    For a start, he said the company is embarking on a pilot production on 500 hectares of farmland, thereafter expand to 10,000 hectares.

    Responding, Ekaette assured the team of government’s preparedness to support them with an enabling environment, adding that Akwa Ibom has a large fertile swamp land of over 100,000 hectares suitable for rice cultivation.

    The Commissioner took group on a tour of the moribund government-owned rice farm at Mbiabet Ikpe, Ini Local Government Area. After an assessment of the farm and its adjoining land, the team said there was no need to take soil samples for testing as the luxuriant nature of rice and grasses were indicators of high fertility of the soil.

    However, the Chinese investors  demanded the construction of a 40-kilometre Odoro Ikpe-Mbiabet Ikpe-Ikot Essiyere Road leading to the farm, clearing of a 500-hectare swamp land and that state government officials undertake a facility tour of the company’s holdings in China to ascertain its capacity as well sign a Memorandum of Understanding (MoU) between the company and the state government.

  • ‘Agro entrepreneurs good for economy’

    National Coordinator, Nigeria Agribusiness Group (NABG), Emmanuel Ijewere, said more agro entrepreneurs were needed to boost growth and employment.

    He spoke at the entrepreneurship forum organised by the Ikeja District Society of the Institute of Chartered Accountants of Nigeria (ICAN) in Lagos.

    Ijewere, who is the chairman, Best Foods, said the role of education and training in nurturing new generations of entrepreneurs could not be overemphasised.

    According to him, the group is making efforts to make agro entrepreneurship “an attractive and accessible prospect” for accountants, urging professionals to come up with new ideas and new ways of looking at entrepreneurship, taking advantage of opportunities within the agricultural value chain.

    If the potential within the sector is explored, he said thousands of new businesses could be added to the small and medium-sized enterprises sector.

    He argued that scaling up agribusiness could be the next growth frontier as it could offer immediate value addition that exploits forward and backward linkages with the rest of the economy.

    The potential growth of the food markets, he added, would only be possible with adequate investment in small and medium-sized agribusiness enterprises.

    He identified agro-processing as a sector with high growth potential, calling for more efforts to improve the efficiency of small processing units handling crops with efficiency.

    ICAN President, Otunba Olufemi Deru emphasised the need for the national education system to promote entrepreneurship as an appealing and viable alternative and prepare young people to take this career route.

    According to him, ICAN is putting entrepreneurship back at the top of the agenda as the nation faced crisis with dwindling oil revenue and growing unemployment.

    He said this would allow it to continue increasing investments in the people, which is crucial to national competitiveness and creating job opportunities.

  • Association urges a rethink

    Association urges a rethink

    The Chairman of Osun State chapter of the All Farmers Association of Nigeria (AFAN), Otunba Gabriel  Ogunsanya, has urged the Federal Government to have a blueprint on sustainable agricultural development that will reduce hunger and poverty and explore partnerships with the private sector.

    Ogunsanya, who is also the owner of the FEG Agro Farms Nigeria Limited, advised the government to retool its agriculture policy to include a greater focus on agribusiness as a critical driver of future developments; and  to give priority to expenditures on public goods that will boost infrastructure.

    He told our reporter that there is the need for investment in agriculture and rural development, adding that these are crucial to improve farmers’ lives and livelihoods.

    He canvassed the implementation of a blueprint that will combine investment in income earning opportunities with social safety nets to promote a better future for farmers.

    Assessing the contributions of the last administration to agric development, he said: “The last administration tried its best which was not enough, because, we are still importing everything. Because of this, the present administration should lay emphasis on the improvement of the agric sector by improving the system to become a major driver of Nigeria’s development.”

    With Chief Audu Ogbeh, a farmer, as minister of Agriculture and Rural Development, Ogunsanya expressed the hope that things would  change for the better. “The Chief  Ogbeh that I know is a good farmer who operates in agro-business. He adds value to what he is producing. He makes sure that all his crops are processed to add value to them; he has been a committed and seasoned farmer.”

    He advised President Muham-madu Buhari to promote agricultural entrepreneurship through the development of sustainable commercial farming. This, he added, will help to provide employment.

    He stressed that there should be huge investments in irrigation, value addition, increased production, human resources, affordable inputs and appropriate loans, besides fertiliser projects and marketing. While emphasising the need for a stable supply of major agricultural produce, he called for coordinated development between urban and rural areas as well as between agriculture, manufacturing and the service sector in rural areas.

  • Ondo farmers count losses of Fulani herdsmen’s attack

    Ondo farmers count losses of Fulani herdsmen’s attack

    Farmers in Ondo State are counting their losses after  the invasion of their farms by Fulani herdsmen.

    The siege led to the destruction of crops worth millions of naira by their cattle. The cattle grazed through the farms, trampling on crops which included maize.

    Rising from its meeting last month, the Ondo State Agricultural Commodities Association demanded N2 billion compensation from the Federal Government for the colossal loss suffered by cocoa and oil palm plantations affected during the raid.

    The meeting was attended by 24 agricultural commodity associations.

    In a communiqué signed by its Chairman, Akinola Olotu and the Secretary, Obaweya Gbenga, the group called for “urgent government assistance” for the affected farmers. The group said the  menace of the nomads had transcended just grazing on crops, with “a new dimension of bush burning, rape and physical attack with machetes, robbery, kidnapping and destruction being recorded across the state.”

    The group called for measures to deal with nomadic Fulani herdsmen. According to the group, the activities of the normads make them more dangerous and destructive as they destroy properties during raid.

    The farmers said they were living in fear due to the activities of the Fulani cattle rearers.

    They said they can no longer entertain Fulani herdsmen and their cattle because they’re not law abiding. According to them, a petition has been sent to the National Assembly to register their concern over the increasing threat to life and properties constituted by Fulani nomads.

    In protest, the group urged Ondo people and the Southwest to boycott or abstain from buying, selling and eating of beef throughout the month of March in solidarity with the farmers.

    The group warned that it would resist any attempt to create any grazing zone in the state, because there is hardly a space of one kilometre between farms across the state.

    “We reject the idea of acquiring land in our state for the purpose of planting grass to feed nomadic cattle. The Federal Government should please restrict this idea to the Northern region and irrigate the grass, like it’s being done to other crops there,” the group said.

  • Expert advises government to grow economy

    A lecturer in the Department of Mechanical Engineering, College of Engineering of the Federal University of Agriculture, Abeokuta, Ogun State Dr. Olayide Adetunji, has called on the government to support ideas and knowledge that would grow the economy.

    Adetunji made the call while speaking on a maize-shelling machine, fabricated by him, through the postgraduate diploma project supervision, which involved the design, construction and performance evaluation in the university during the 2012/2013 academic session.

    He said  the machine was designed to bridge the gap between the highly expensive threshing machine and manual method of hand-shelling, to aid food production and improve farmers’ productivity and profitability, emphasising that the machine was meant for local farmers for personal use on farm settlements and for group of farmers in the form of cooperatives, market-women and house-wives as a means of generating income.

    Adetunji noted that the production cost of the machine was over N100,000 because the materials used in its production were sourced locally, but when commercialised, the cost price could go for about N200,000. Describing the mode of operation of the machine, he said, if well maintained, it could be guaranteed for about two to three years by working efficiently without any fault and could last for about 50 years. He stated that the dual-powered machine uses both fuel and electricity, because most of the people that use it are rural dwellers, so they do not have to worry about electricity.

    When asked about the number of the machines produced so far, he said it is “just the prototype that is available,” stressing that finance had been a major problem in exhibiting the machine and that the machine had been nominated for the African Prize for Young Engineers Research.

    He added that COLENG was planning a conference, where the machine would be showcased, saying “we are also looking forward to the Exibition Day. On his future plans, Adetunji said he plans to construct different types of machines like palm-oil extracting machine, rice milling machine, palm-kernel and fruit juice extracting machine, and block-making machines, as he looks forward to partnering with professional bodies like the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Manufacturers’ Association of Nigeria (MAN) and the Bank of Industry (BoI).

  • GEMS4 partners firm to boost rice production

    GEMS4 partners firm to boost rice production

    Growth and Employment in States – Wholesale and Retail Trade (GEMS4), a United Kingdom-sponsored programme, has signed a memorandum of understanding (MoU) with Popular Rice Mill to increase the production of local rice.

    The target, according to the Deputy Team leader, GEMS4, Mr Olatunde Oderinde, is to produce 50,000 metric tonnes of local rice as well as create livelihoods for 25,000 farmers.

    He said the programme was determined to promote improved rice production system, combined with training and the adoption of innovative approach along the rice value chain that shortens processing time, reduces drudgery, and does not expose  farmers to heat burns.

    According to him, unless rice farmers use improved rice processing technologies that produce marketable products, consumer demand will not be satisfied by locally-produced rice.

    Besides, he said the quality of local rice has to be similar to that of imported rice.

    To achieve this, he said the programme was empowering farmers to improve the quality and competitiveness of locally-produced rice; and  that rice production processes require upgrading by actors in the value chain.

    GEMS4 Senior Intervention Manager Busuyi Okeowo said the programme was introducing measures to enhance the effectiveness and sustainability of  rice production by improving the value contributions among the various actors involved in the rice chain: farmers, millers, input dealers, traders, microfinance agencies and extension services.

    He encouraged farmers and entrepreneurs to participate in the rice value chain and promote the sale and consumption of locally produced rice.

    He said the project was focusing on training in value addition, marketing arrangements, quality packaging/labeling and leadership.

    Okeowo added that GEMS4 has a micro retailing initiative segment aimed at providing access to markets intervention and increasing incomes and employment for retailers.

    The initiative, according to him, works with organisations to create buyer groups, who aggregate purchasing power to order stock collectively, thus negotiating lower wholesale prices from suppliers of fast moving consumer goods. This results to an increase in the sales margins for many micro-retailers who previously, could not access such markets due to economies of scale and scope.

    According to him, urban consumers seldom buy local rice because in comparison to Indian or Thai rice, Nigerian rice is perceived to be a low quality product.

    Under its access to markets initiative, he said the organisation is working to increase brand awareness for local rice through promotion of branding and marketing of high quality locally milled rice.

    The programme, he added, has provided the opportunity to raise the profile and create demand for locally grown rice through improved packaging solutions. By improving product packaging sizes, distribution and marketing of rice in pilot states, Okeowo said it will create jobs and result in increased incomes for local farmers.

    He added that the programme is pursuing a linking rice farmers to commercial mills initiative to facilitate the channelling of locally-grown rice paddy to large commercial mills to enable farmers earn more for their paddy and to help commercial rice mills diversify from importing foreign brown rice at premium rates.

    The General Manager,Agric Business, Popular Farms and Mills Limited, Mr Amit Kumar, said the organisation was determined to support efforts to  help  sustain small scale rice farms.

    Group Executive Director, Stallion Group, Tokunbo Aromolaran said most farm families are smallholder farmers and they undeniably contribute a lot to household, national food security.

  • Transforming rural lives through agriculture

    Young agro entrepreneurs in the rural areas are smiling to their banks. They are changing the age-long perception that agriculture is not a profitable venture. Their story is that of overcoming poverty, DANIEL ESSIET reports.

    For the  Chief Executive, Springboard Entrepreneurship Development Initiative, Lawrence Afere, based in Akure,  Ondo State, the rural areas are precious and deserve to be cherished. They are characterised by diverse landscapes and climate. This also means an advantage to organic agriculture.

    His farm projects create awareness to farmers of new possibilities in practices and techniques that support profitable organic farming.

    Besides this, Afere’s innovative drive and constant experimentation with various crops have resulted  to a rich harvest. He is a farmer who  trained as a business administrator at the Covenant University. He also trained as a social entrepreneur at the Northwestern University, Chicago, International Institute for Global Leadership, Ashville, United States  (online) and from Kanthari International Institute for Social Entrepreneurs in India.

    The mission of Springboard is to create an entrepreneurial and productive community of youths from various backgrounds, who work together to enhance their livelihood and community through sustainable agriculture.

    At the Springboard farms in Akure, they grow plantain, banana and maize. They also produce  chips from plantain. In future, he plans to grow cocoa and all kinds of vegetable.

    For him, successful farmers, irrespective of their locations, require skills to build enterprises. From his experience, learning financial, marketing and other business basics is as helpful as the investment in their projects.

    In addition, the work of farmers  is beyond their products – farmers need to defend the landscape, the soil fertility and the biodiversity.

    For this reason, he has established a training school for those interested in building agricultural businesses. In his training school, young people are exposed to diversified farming programmes.

    Besides this, he has an absentee farmers programme for those who don’t live in Ondo State. His team operates the farms on behalf of investors, saving them the pains of travelling long distances.

    Also, Chief Executive, Niji Group, Mr Kolawole Adeniyi, is setting up a rural farm estate in Oyo State.

    According to him, the project will consist of diversified activities, including facilities for individuals, groups and other visitors. Apart from creating jobs, he said his motive was to encourage farmers to become involved in local development.

    The project will bring an increased level of awareness among the farmers of the need for sustainable development and diversification. It will provide an experimenting zone for creating employment and self-employment opportunities.

    The Provost, Federal College of Agriculture, Akure, Ondo State, Dr Samson Odedina, said there was  the need to provide opportunities for young rural people to develop entrepreneurial skills in agriculture.

    He said the college’s programme  provides young people with the training and support they need to establish businesses. He highlighted the need to give young people opportunities to build their capacities, providing them with skills and technical information to enable them take the lead in agric development initiatives.

    A farmland realtor in Ogbomosho area of Oyo State, Debo Thomas, is looking for young people with serious interest in farming.

    Thomas believes the government cannot afford to continue to underutilise the young people as they are presently. For him, enough education, financing and guidance is necessary for those in the rural areas that want to start a farming project that can lead to greater opportunities in the future.

    Experts say emerging young agro entrepreneurs represent a huge potential resource to their communities. They say many rural communities are ageing because, in the absence of incentives to remain, young women and men leave rural areas to seek opportunities elsewhere.

    They argue that when young people begin to see that smallholder farms can be transformed into dynamic, innovative, modern businesses, they will be encouraged to choose agriculture as a career path. Their skills and talents will thus be harnessed in generating a vibrant rural economy that offers employment opportunities both in agriculture and off the farm.

  • Akwa Ibom collaborates with Ghana on cocoa production

    The Akwa Ibom government has reaffirmed its commitment to making cocoa farmers play a key role in the economic sector of the country.

    The Commissioner for Agriculture and Natural Resources, Dr. Matthew Nathan Ekaette, while exchanging views with the Paramount Ruler of Ini, Ntoeng Effiong Udo Akpan, at his palace last week, said Governor Udom Emmanuel had discovered cocoa which is like gold in Ini Local Government Area.

    Ekaette, accompanied by Dr. Abraham Kay and four technical experts from John Kouffor Foundation, Ghana, noted that the government is committed to changing the investment direction of the state to sustain agriculture and give Akwa Ibom a place in the global production map.

    According to him, a farmer should be one of the financially buoyant individuals in his community; be able to send his children to the best schools and contribute to the society from his resources as a farmer.

    He assured that the Emmanuel administration would reverse the trend, saying that beyond getting cocoa farmers to do their jobs, they would get inputs on how best to handle issues.

    Ekaette said the on-going cocoa revolution in the state promised to be a major source of revenue to the state government because it had brought in experts from Ghana to help the farmers increase their production.

    “Cocoa production in the state is low and the pruning exercise is aimed at improving cocoa yields from the present 300kg per hectare to 600kg per hectare between 2016-2017; from 600kg/hectares to 900kg/hectares between 2017-2018; from 900kg/hectare to 1000kg/hectare between 2018-2019; from 1000kg/hectare to 1500kg/hectare between 2019 -2020,” he stated.

    Declaring open the zoning/mapping exercise, Dr. Kay observed that the potential of cocoa farmers  in the state are far more than what they have in Ghana. During the pruning, farmers who were trained on maintenance operations using Farmers Field School (FFS) model, expressed gratitude to Emmanuel for initiating the training programme for farmers in the 20 cocoa producing communities.

    The pruning covered 13 local government areas.

    These were Ini, Ikono, Uruan, Essien Udim, Abak, Ukanafun, Etim Ekpo, Mkpat Enin Ibiono Ibom, Uyo, Ikot Ekpene, Etinan and Obot Akara. The remaining eight local government areas: Ikot Abasi, Itu, Nsit Ubium, Ibesikpo Asutan, Nsit Ibom, Oruk Anam and Onna will be covered by the end of January 2016, he said.

  • Tackling poor rice yields

    Tackling poor rice yields

    Lack of quality rice planting materials is responsible for poor yields. Stakeholders are canvassing supply of high quality crop planting materials to small-scale farmers for maximum yields, DANIEL ESSIET reports.

    For a rice farmer in Lagos State, Abdul Ghaniyu Alabi Ojolowo, accessibility to high quality rice is the key to achieving better food security and escaping poverty.

    This, however, depends on several factors, including good seeds. For most of the farmers, birds eat some of the crops, leading to losses sometimes. Others lack proper drying facilities, which force them to dry the rice on bare ground, which contaminate it with stones. This lowers the quality of the rice.

    The cost of pesticides they use to spray the rice to control diseases, such as wilt is expensive. The other reason farmers are not making headway in yields is that they don’t have access to high yielding varieties for planting.

    A trained accountant, Ojolowo, who went into rice farming after quitting his job with a private firm, maintained that although the business is well-paying; there are a number of challenges. When he decided to take on the venture, he got some basic lessons in rice growing and relied on the advice of elders in the business. Later on, he got in touch with Lagos State Rice for Job project and was exposed to modern rice cultivation practices.

    As far as rice is concerned, Ojolowo noted that no one could expect domestically grown rice to be competitive. He has confirmed this from his experience. A certain portion of the population prefers imported rice than buying domestically grown rice.

    But for the Deputy Managing Director, Kewalram Chanrai Group and Director, Spring Field Agro Limited, Mr Victor Eburajolo, farmers can only boost their livelihoods by exploiting agronomical practices that improve their yields using improved seeds, pesticides and fungicides. He believes rice production can pull a lot of Nigerians out of hunger because 60 per cent of the nation’s arable land is good for farming.

    While local production has been on the decline, Eburajolo wouldn’t want rice importation to continue under any guise and so canvasses national efforts to equip and empower local farmers.

    To this end, he is in support of the government boosting local rice production and reducing imports of the commodity.

    This attitude, he noted, is motivating the private sector to embark on aggressive and sustained interventions to make Nigeria a food basket, thereby reducing rice importation. For him, governments and private investors’ partnership should enrich rice farmers to deliver good produce.

    However, Eburajolo contended that farmers can only boost their yields by planting high-quality hybrid seeds, and using the recommended amount of fertiliser.

    Currently, the average rice yield nationwide stands at about three tonnes per hectare, which is far lower than the international average of six tonnes per hectare. This is attributed to low hybrid seed uptake amongst the smallholder farmers.

    Part of the blame goes to poor access to quality certified hybrid seed by small-holder farmers. To bridge this gap, Eburajolo said his organisation is partnering with RiceCo, a subsidiary of United Phosphorus Limited of the United States to produce rice dedicated fertiliser and rice hybrid seed as a way of boosting food productivity in the country.

    He said RiceCo was founded to meet the specific technology needs of rice farmers, stating that his company is encouraged to go into rice production by the government’s pledge to create an enabling environment  for agriculture to be transformed into a viable business.

    International Operations Director, RiceCo, Pinky Ghosh, expressed concern that farmers are not making enough money from rice cultivation. This is as a result of not using quality seeds and farm inputs.

    As part of the benefits of the partnership, Ghosh said her organisation will work with Spring Field Agro Limited to enable smallholder farmers’plant hybrid rice seeds and good management practices to boost yields per hectare. According to her, an improved quality of rice is the key to bigger farm incomes and taking the crop to new and more profitable markets.

    For years now, she said her organisation has been producing hybrid rice seed and dedicated fertilisers for use by local communities.

    Experience, she added, has shown that a little capacity building can change the situation within a very short period.

    In addition, she said farmers  need advice on modern farm technologies that will help to expand the production cycle and increase their rice production and profit.

    She said improving on milling is the way forward for the industry. More efficient mills, she noted, will trigger higher productivity and usher in quality improvements at the farm level.

    Ghosh said her organisation has done a lot combining field experience, scientific research and innovative thinking to solve the most challenging crop protection problems domestically and around the world. From small rice mill with traditional rice production machine to state-of-the-art rice production machines and modern rice reprocessing system, she reiterated that her organisation is determined to transform rice production to reduce importation.

    According to her, the organisation’s innovative portfolio of products helps produce cleaner fields, healthier crops and more abundant yields. With more than 330 million acres of rice grown around the world, she said the company is dedicated to helping growers satisfy the growing demand for the world’s most essential food. While accelerating food production has brought more farmland into play, this however without a matching increase in crop yields.

    The Head Africa, United Phosphorus Limited, Mr Nishant Pahuja said his organisation is using seeds as conduit for moving new varieties, giving farmers access to more productive, yield-enhancing traits.

    Pahuja said his organisation uses rice seeds to boost nutrition, with bio-fortified varieties that elevate micro-nutrient levels.

    Typically, he observed that the severe droughts have decimated crop yields. Since climate change-induced droughts have also had a major impact on food production, Pahuja added that his company has produce drought resistant species that can survive for a long time without water. Director of International Regulatory Affairs, RiceCo, Martin Poveda said the organisation is committed to making an impact on the world shortage of food by improving the quality and quantity of rice and help make it available when and where food is needed. He said the company develops, markets, and supplies rice-specific herbicides to maximise grain production and operational efficiencies. RiceCo, headquartered in Memphis, Tennessee,United States, is a wholly owned subsidiary of United Phosphorus Limited (UPL).

    UPL is a global crop protection, chemicals and seeds company, headquartered in Mumbai, India. UPL and its companies have a combined market capitalisation of approximately $2.5 billion. This provides RiceCo with a wide variety of resources to continue our goal of being the premier provider of products and services to the rice industry. So far, the Nigeria has released more than $1 billion to boost local rice production and to reduce imports of the commodity. The money, to be spent through the Presidential Rice Initiative, is to be availed to rice farmers at a single-digit interest rate of nine per cent per annum.

    Some of the money will go to building 200 artificial seed multiplication centres for production of rice seeds.

    Under the Presidential Rice Initiative, the money is meant to strengthen the capacity of banks in agricultural lending to farmers and entrepreneurs in the value chain as well as reduce rice importation.

    The Minister of Agriculture, Chief Audu Ogbeh, said in Abuja that large-scale rice farmers would empowered to ensure the successful implementation of the Presidential Rice Initiative. Nigeria, which is Africa’s largest rice producer, plans to raise production to 300,000 metric tonnes a year. This will reduce its imports by 15 per cent and cut costs by $342 million a year. Estimates are that the demand will be 35 million tonnes by 2050.

    Meanwhile, several ministers of agriculture from Africa will meet in Kampala early next month to discuss rice research and development, production and policy.

    The meeting, known as “the 30th Extra-Ordinary Session of the AfricaRice Council of Ministers”, will appoint a new Director General for AfricaRice Centre.

    The meeting will be held  from February 6-8 and more than 50 dignitaries are expected to attend. Of these, 25 will be ministers of Agriculture or their representatives.

    “Africa consumes a total of 11.6 million tonnes of milled rice per year, of which 3.3 million tonnes are imported. As many as 21 of the 39 rice-producing countries in Africa import between 50 and 99 per cent of their rice requirements,” states the International Rice Commission (IRC).

    In a related development, a group of Thai Investors have disclosed plans to build $4 million rice city in Calabar.

    Managing Director, Thai-African Corporation Limited, Mrs. Pantipa Dhanagon said the rice city will be completed in six months. Mrs. Pantipa Dhanagom, said the scheme will be a rice seedling center with the best rice seeds to be grown in the area.

    According to her, the project will provide a training center and a one-stop service for out-growers in Nigeria and other African countries.

  • How shipment delays cripple agric exports

    How shipment delays cripple agric exports

    Exporters of agricultural products are losing millions of naira to delays in shipment. To remain competitive on the world stage, stakeholders are asking shipping companies to address agro export transit challenges. DANIEL ESSIET reports.

    The past year was tough  for agricultural products shippers – no thanks to delays in shipment.

    One group that was badly hit was cashew exporters, many of who could not get their produce shipped in time to Vietnam and India through the seaports.

    President, National Cashew Association of Nigeria (NCAN), Pastor Tola Faseru, recalled that last year, cashew exports at the seaports  were  delayed  for  weeks — if not months.

    Faseru added that cashew cargo were left sitting, undelivered at the ports for months. He recalled that there were cases cashew cargo, remained in transit for 90 days.

    By the time the produce arrived their destinations, Faseru said they had lost their usefulness. Ultimately, that means farmers and exporters receive a lower price for their produce or had them rejected by importers. He criticised the shipping lines for making cargoes undergo longer waits before moving them abroad.

    As they prepare to harvest cashew and ship to their destinations in Asia and Europe, he maintained that shippers have dramatically lowered their expectations for the shipping lines. They fear that residual delays plaguing the shipping system will worsen as farmers and exporters prepare cashew for export from next month. He called the transit issue affecting cashew shippers a “serious situation.”

    To this end, he announced that the association was going to keep an eye on the situation and put pressure on shipping companies to make sure that they are ready, willing and able to handle what is a very profitable export crop.

    Consequently, he said they were planning, by taking steps to minimise disruptions where possible, by moving more of the commodity at the same time by containers. If shipments fail to arrive their destinations on time this year, Faseru said the shipping lines will be held responsible and made to pay for such delays.

    Faseru expects robust demand from India and Vietnam this year.This year, he said the group intends  to export at least 6,400 40-feet containers of cashew. The aim is to increase it to 20,000 40-feet containers by 2020. Faseru said  the government and all stakeholders in the cashew value chain were making efforts to raise the production from 180,000 metric tonnes yearly to 500,000 metric tonnes by 2020.

    The country is targeting a yearly income of over $700 million (N138 billion) from the export of cashew nuts by that year.

    According to him, “Cashew is Nigeria’s second largest non-oil foreign exchange earner, with a production volume of 180,000MT and an annual income of $250 million.” The crop has been earmarked as one of the five agro-industrial products among 13 products for diversification and it accounts for 200,000 jobs, he added.

    Some exporters suffered so much losses having to withdrawn their shipments from being exports because they stayed longer in the ports. One of them was the Country Manager, 3F Nigeria IPEX Limited, Karamvir Singh,who  said his organisation had many containers of cashew withdrawn from the ports when the shipping line couldn’t move them in time.

    Shipping delays, according to him, cost agricultural  shippers  million in lost revenue between February through August  and there is the potential for more  losses this year, if they  are not able to move the produce in time to their destinations in Asia.

    Fortunately, the demand for cashew is rising because of increasing consumption in Europe.

    Besides, there is  supply shortage in Asia.

    This is an opportunity for exporters from Nigeria to make money.

    However, he fears that without better transit service, exporters won’t be able to get their commodities to market. The risk is that importers of cashew, including India, Vietnam and Europe, could turn to producers in other countries. Asia producers traditionally have had a competitive advantage over Nigeria because of the reliability and cost-effectiveness of their freight network.

    But the shipping firms, however, assured agriculture shippers they have taken steps to prepare for such shipments, citing knowledge gained from last year’s delays.

    On the state of the industry, the General Manager, Pil Nigeria, Mr. Vernaert Mathias, however, said many shipping firms were going through difficult times and were taking hard measures just to remain afloat. While carriers are, mulling cut costs, he said they faced the challenge of delivering the service their customers demanded.

    Since productivity is a crucial metric, he noted that shipping firms are deploying bigger ships in to reap the benefits of economies of scale.

    He explained, however that the small channels provided by Nigeria’s ports made it difficult for shipping companies to deploy large vessels. In his view, however, the Commercial Manager, Transcap, Mr Paulinus Effiong maintained that addressing the causes of transit delay was important since cashew exporters are facing a lot of challenges.

    The most prominent of which is the difficulty of transferring products to export markets in an appropriate period.

    According to him, clearance delays seriously affect the competitiveness of exporters.

    He has called on the industry and regulators to work together in order to avoid any future crises by ensuring better scenario planning and that sufficient supply chain contingency strategies are in place.

    Commercial Manager, CMA COM Delmas Nigeria Limited, Mr Augustine Obagidi observed that export difficulties have to be considered in a larger framework from the moment the goods leave the exporter premises until their shipment. Obagidi said the delays in moving cashew shipments are rippling through supply chains. In the context of the ports in Apapa, he explained, the disadvantage multiplies, in that agro exporters also suffer from delays and extra costs due to Apapa road traffic and trucking.

    According to him, the congestion on the ports’ link roads has been significant. A large factor in the current backups is high numbers in trucks and cargo volume currently going to the ports.

    Trucks, he explained, are stalled for hours in a miles-long line to gain entry to the terminal at Apapa.

    He said several truck drivers are fed up with the congestion. Many truckers are independent operators, meaning they only make money when they complete a delivery. These days, they’re lucky to make two hauls a day, compared with four or five several years ago. The resulting shortage is contributing to increased freight costs.

    He warned about the impact on shipping and the economy if there is insufficient road and rail infrastructure, port capacity and systems in place. He explained that shipping lines cannot be blamed for the congestion happening on the link roads.

    According to him, there is the need for cashew exporters, shipping firms and terminal operators to work more together to the problem. Export Manager, Safmarine, Maureen Okojie said shippers are also part of the problem.

    Okojie said last minutes changes made by shippers on the final destination of the cargoes sometimes make things difficult for the shipping companies due to planned schedules.

    Once the schedule has been published, she explained that it is difficult to change it because of the need to ensure reliability. Shippers, according to her, are not justified to complain in such instances, taking into account the need to ensure reliability in vessel schedule performance.

    Though it is understandable that shippers try to take advantage of  when it suits them operationally and financially, Okojie noted  scheduling is most times sacrosanct  since it would costs them operational efficiency or money to change direction that has been scheduled in the interest of shippers.

    For this reason, she advised cashew exporters to indicate the popular destinations they will like their cargo delivers ahead of time.

    Stakeholders reiterated that the crisis at the oil market has shown the importance of having efficient exporting sectors. Therefore, authorities need to introduce new rules requiring customs to clear the goods aimed to be exported. International customers, they noted, would likely to prefer more secure suppliers, which will affect the competitiveness of the cashew industry.

    Exporters complained about bureaucratic corruption and red tape. Operators also complained about demands for irregular fees.