Though global export of fruits and vegetables is worth billions of dollars yearly, Nigeria has not achieved much in terms of revenue from vegetables.The industry has been impeded by the lack of appropriate preservation technology. In this interview with DANIEL ESSIET, the Chief Executive, Agricultural Fresh Produce Growers and Exporters Association of Nigeria (AFGEAN), Adetiloye Aiyeola, calls for support infrastructure to increase the preservation of fresh fruits, and urges the government to address issues facing producers on value addition to exports.
Let us begin with Nigeria’s position in the global horticulture industry. What opportunity do you see for horticulture in the international market?
The global market is increasing demand for fresh produce. In light of this, the horticulture export sector has been the most dynamic. However, Nigeria’s position in terms of exports is very low. This notwithstanding, in the African space, we have the potential to become a big player in the export of fruits and vegetables. Our potential in terms of horticultural exports is very high. We can produce a lot of fruits and vegetables that can be exported. Nigeria is the second largest producer of ginger in the world. We are also the second largest producer of okra. We are the fourth largest producer of sweet potatoes. In all these, we have the ability to dominate space. I see the prospect of exporting more frozen fruits. In the first quarter of this year, the value of frozen fruits export from Nigeria was $10milion.This is a significant number. This means, the sector is recording huge growth. Nigerians are adding value by freezing the fruits they export. We export a lot of flowers, including hibiscus. We exported N15 billion worth of hibiscus within the last 12 months. That is where we are. I believe we can do better. We have enough arable land that can be cultivated to produce pulses, beans and cowpeas. We can produce things that are making Kenya, Uganda and Tanzania big players in the global horticulture market.There is a continuous shift to meet international demands. We expect the trend to grow over the next couple of years.
The fresh fruit industry has since bounced back after COVID-19 pandemic. How are things in the industry ?
The horticultural space in Nigeria has improved since COVID-19. Farmers and other value chain actors have moved on since experiencing significant volumes of post-harvest losses during those periods. At present, the sector is experiencing significant challenges such as climate change and rising input and production cost due to the disruption in the global supply chain. We are still a long way from full recovery. Logistics plays a major role in local, regional and international trade. Here in Nigeria, inadequate logistical infrastructure has been a big challenge for actors within the horticultural space. What we are experiencing is increased freight costs, shipping delays, among others. Players in part of the supply chain complain of shortage of cold logistics infrastructure. Seriously, inadequate logistics and storage is still a big issue within the space.
What factors will play a role in the growth of Nigeria’s fruit exports? What categories have the potential to grow and why?
One major factor that will improve fruit export is logistics. The ability to safely transport fresh produce from the farm-gate to its destination country, under good condition and cost is very critical to helping us compete globally. It will help the sector’s growth. Another one is the support of regulations. We need a paradigm shift with regards to attitude of agencies involved in the export process. They should begin to see themselves as enablers of trade rather than revenue generation entities. There should a working and mutual synergy to reduce bureaucracy and support exporters.
Nigeria has been impacted by inflation and the challenge of maintaining economic stability. How is this affecting the fresh produce industry?
The sector has been deeply affected by inflation; the cost of input is skyrocketing, leading to higher cost of production. This means that more farmers are producing below their previous capacity which will lead to more food shortages and more inflation. I know of farmers who produce on 10 hectares but downsized to four hectares due to high cost of production. Increase in energy cost, in terms of fossil fuel also negatively impacts logistics cost.
How is the African Continental Free Trade Area (AfCFTA) supporting regional fresh produce exports?
The African Continental Free Trade Area (AfCFTA) presents a big opportunity for African countries involved in fresh produce to do business with them. AfCFTA market’s gross domestic product (GDP) is valued at $3.4 trillion. Its scope is large. It helps African local producers to think about value addition. We can be competitive with processing of fresh produce. Right now, we are not well positioned to make an impact in fresh produce exports continent-wise.Our neighbouring African countries produce horticultural exports cheaply.They can move the produce cheaply to their destinations.
What other trends are you seeing in fresh produce trade? Are there any consumer trends? Which horticulture products are Nigerians exporting to Europe and beyond?
The major horticultural products from Nigeria are coconuts, flowers, hibiscus, chilies, leafy vegetables etc.
There is a massive drive for value addition with the horticultural space. Farmers are no longer exporting fresh pineapples; rather, they prefer exporting dried pineapple chips, concentrate etc. More value chain actors have realised that to earn top forex, value addition is a must. We are also experiencing increased government support for exporters, especially in value addition. Globally, consumers have become more conscious of what they eat, where their food comes from and how it was produced. Traceability, ethical production and standardisation are more important to value actors than previously.
How can we reconnect food production with metropolitan and urban areas with application of innovative technologies, intelligently and pragmatically, in such a way that we can procure a brighter future for the generations to come?
Our entire food system is in need of a massive reorganisation. We need to find more sustainable ways to feed our ever-increasing population. One of such is the urban agriculture; that is, growing food within urban spaces, especially within the city’s limits, empty spaces can be converted into growing and learning environments for young people to learn agricultural skills that will be valuable to the marketplace. We also need to set up cold chain infrastructure and a more robust food distribution networks for smallholder farmers, a system that will ensure adequate post-harvest handling and storage to prevent losses along the value chain. It will be important to create access to market and access to alternative markets for smallholder farmers and encourage value addition through processing to reduce food loss and boost productivity.
Netherlands is, arguably, an example of a food-producing country with a healthy mixture of urban development and farming. What can we copy to promote fresh fruits and vegetables farming in inner city communities and urban farming?
One major reason for success of the Netherlands in food production is the synergy that occurs between research and the private sector, results from research is being made accessible and usable for the improvement of the food system. We need to copy these practices. The private sector and research institutions need to deepen collaboration that will help bring practical solutions to our unique challenges, thereby creating room for innovation and productivity in the space.
Unlike traditional farming, the fresh produce industry is leveraging a lot through technology and innovation. To what extent do you see operators using AI and robotics in the growing process?
I see AI, robotics, IoT play a significant role in boosting productivity within the horticultural space, I see it become the new normal with its application becoming more popular alongside hydroponics, vertical and indoor farming. I see this as the farm of the future where input and conditions can be monitored remotely and would require less resources in terms of water, fertiliser etc. to produce more food. I see vertical farming become more popular. I set abandoned warehouses converted into vertical growing projects. I see more skyscraper farms becoming erected and established within the city’s borders to serve the urban population.
How can we transform the economy from one highly dependent on oil to trading in high value processed goods?
Value addition is a key to helping us make a smooth transition into an agricultural exporter in the area of horticulture exports. We need to emphasise processing and support the smallholder farmers and microprocessors to produce for the export market. We need to develop training programmes that can be deployed remotely. We need to establish standards for the production of various crops. Nigeria is geared to restore its position as one of the leading horticultural exporting countries.
Do we need a Horticulture Export Revolving Fund (HERF) to empower farmers to start horticulture projects, acquire value addition facilities that will enable dehydrating, freezing, canning, bottling, extracting, juicing and concentrating their produce?
Yes, we do. HERF will play a significant role in helping more farmers access the right knowledge and skillet to produce and add value to their products. Our food production system is fundamentally flawed.
What positive measures have been put in place to improve the sector through certifications?
There has been a massive drive for standardisation and certification within the space. More large farming companies are applying for global GAP certifications.
Your organisation consists of exporters of fruits, vegetables and flowers to the United Kingdom and other places. What have you done to bring farmers up to speed on changing market requirements internationally?
We have positively encouraged the development of this industry. AFGEAN is a leading produce export association that is promoting horticulture. We have worked with a number of partners to train and support Nigerians to increase food production for export. We have set sights on becoming a major fresh produce exporter in Africa. We have intensified efforts to boost exports of fruit and enter new markets.
