The Nation Newspaper

Tag: agro

  • Banks eye forex from agro exports

    Banks eye forex from agro exports

    Banks are encouraging their agribusiness customers to explore export opportunities in Asia and Europe to boost their revenue profiles, it has been gathered.

    They took the step because of the naira’s depreciation and drop in revenues following the withdrawal of government deposits. Foreign exchange earnings from agribusiness have grown substantially following the increase in export price and value of some products.

    Weaker naira exchange rate has  improved the competitiveness of agricultural commodity exporters.

    Chairman, Multimix Academy, Dr Obiora Madu, said exporters, especially agricultural producers,   were taking advantage of this. Since naira has weakened considerably against the currencies of some of the nation’s major trading partners, such as Europe, Asia  and  the United States (U.S), agricultural exports have become more competitive in these markets.

    Following this, finance service operators are offering what they claim are better deals in handling money transfers or providing currency brokering advice for a diverse new class of small to mid-sized farm products exporters.

    The situation is encouraged by the fact that government is insisting on agro exporters using banks for foreign currency transactions.

    With foreign exchange becoming  scarce, Madu said agro exports  were proving a to be a lifeline as  global trade volumes continue to rise, as well as earnings by farmers and  exporters.

    He noted that the growth of agric exports is one of the success stories  of the economic crisis. This has prompted banks to assemble teams focused on exporters, with small to medium exporters exploring global markets, Madu added.

    Addressing an agro export seminar in Lagos, Head, Structured Trade and Export Finance at Zenith Bank, Godwin Essien, said agricultural exports would continue to dominate the nation’s foreign trade given the structure of the economy.

    He said farm exports were growing in value as exporters rush to sell a wider choice of produce to growing economies.

    Essien emphasised the need for more efforts at increasing the value of exports as well as the volume.

    To facilitate this, he said the bank was providing agricultural businesses with one-stop banking services, including the issuance of letters of credit and loans denominated in foreign currencies.

    He said the bank had a good understanding of the needs of agro export businesses and would work with them to speed up funds flows to facilitate sales.

    He said the bank had made efforts to expand financing and designing products and services targeted at developing the sector.

    The National Publicity Secretary, National Cassava Association of Nigeria (NCAN), Mr Sotonye Anga, advised farmers and others in the agricultural sector, to position themselves to benefit from agro exports opportunities.

    He said exporters must be alert to take advantage of the growth in global demand for agro produce, stressing that Nigeria was struggling to be cost competitive, particularly against emerging produce exporting nations.

    He advised the government to collaborate with farmers or investors to promote crops that have strong export potential.

    The  exchange rate has had a volatile run in recent months with no signs of abetting.

  • Oyo multi-billion agro diversification to boost employment

    Oyo State government has said its multi-billion naira agricultural initiative partnership with the Heritage Bank will boost employment in the state.

    The state said the partnership is in line with the current drive by the government to diversify the economic and revenue base of the country, hence the partnership is geared  towards reviving agriculture and boost agro-allied businesses in the state.

    Tagged, Oyo State Agricultural Initiative, OYSAI, the state government announced that the project is part of its revolution in the agricultural sector and a massive empowerment programme for both youth and women across the state.

    Speaking at the launch of the project in Paago Village, along Igboho – Okeho road, the state governor, Senator Abiola Ajimobi, explained that the state has successfully secured a viable partnership with some private investors and financial institutions to back up the project in the areas of poultry development, rice production and processing along the value chain.

    The governor thanked Heritage Bank and other partners for deciding to support the project aimed at diversifying the state economy and drive self-sustainability by adding value to the lives of about one million beneficiaries. He added that the project will also reposition the state as the food basket of Nigeria and generate massive revenue for economic emancipation.

    “Farming is attractive; we want to make it more attractive. The programme will create jobs, wealth and socio-economic productivity. It will link agriculture to small business and manufacturing. The programme will also improve the lot of women, youths and small scale businesses,” Ajimobi said.

    The project, according to the governor, will spread across 3,000 hectares of land in 28 out of the 33 local government areas of the state. He added that the project will be in three stages: food crop cultivation, cash crop/horticulture and food processing.

    Under the arrangement, land, improved seedlings, fertiliser, farming equipment will be made available to participants in the projects, while the banks will support willing agro investors with funds and advisory services.

    The bank’s Executive Director, Lagos, South West and Corporate Banking, Mrs. Mary Akpobome, who represented the Managing Director/CEO of Heritage Bank, Mr. Ifie Sekibo, at the launch, stated that the project is in line with the bank’s vision of partnering with individuals, organisations and governments to create, preserve and transfer wealth across generations.

    She said: “We believe that our youths are the future leaders that will positively reshape and reposition our country in the global environment, and Heritage Bank is committed to contributing her unending quota towards grooming them by facilitating enabling opportunities and platforms.

    “This programme will definitely lead to the creation of quality and sustainable employment and livelihood for the youth, which will in turn reduce the crime rate in the society,” she said.

  • ‘Agro allied export, cargo boost to economy’

    ‘Agro allied export, cargo boost to economy’

    If Nigeria needs to turn around its economy, it must rethink its dependence on the export of crude oil and diversify into cargo and agro allied export. Such paradigm shift will guarantee food security and create a window for Nigerian exports to Europe and the global markets where it could earn over $52 billion yearly, in addition to creating jobs. The Managing Director of ABX World, Captain John Okakpu, in this interview with KELVIN OSA-OKUNBOR speaks on these and other issues.  

    There have been calls on the government to convert some airports to cargo airport; because of the availability of agro-allied products in the area where such airports are located. Do you agree with this?

    Who goes to Akure airport? It is not the government that would go there. So, the government can designate more than 100 airports, are they the ones that will fly there? It is the private sector. The government has a lot of role to play in this part, but as far as the 13 cargo airports are concerned, they are blue-sky projects that will not work. The only airport that I can say is fit for a cargo airport in Nigeria is Ilorin. Ilorin is at the entrance and the exit point of Nigeria. But the problem with Ilorin is the road network that will take you to other areas. There is no road network. It is easier for a cargo airline to come into Nigeria, drop its cargo in Ilorin, pick some of the produce and off it goes. If you start taking a European flight to Calabar, that is crossing the airspace, when they get to Calabar, what are they dropping there? Did they have enough cargo from their origin into Calabar to go and carry whatever you say you have there?

    What does Nigeria stand to gain if it invests in agro allied products for export?

    We have over 10 million Nigerians living outside the country. Do not forget that the market is geared towards Nigerians out there, who are looking for home food and products. So, if one Nigerian spends $100 on a particular food item for a day, multiply that by how many items he will need in a week, month and a year, all through, with the amount he will be paying for these food items if they are available. The amount will be unimaginable. Nigeria is a mono-economy country, depending on only crude oil to run its budgets. We need to wake up now that the oil price has fallen to low index. This is the time to diversify the economy and invest heavily in agriculture and agro-allied products. To focus on agriculture, you need huge number of well-trained farmers, who will in turn form co-operative societies. You also need the supply chain that will get the products to their destinations, as well as warehouses, storage and packaging facilities. Our goal is to create 20 million jobs in two years, while Nigeria will be able to generate $52b annually from the export of agro allied products alone. There should not be any reason Nigerians should suffer in the midst of plenty, especially as 70 per cent of all exportable farm produce comes from Northern Nigeria.

    What are your targeted farm produce?

    We have 75 products and out of that, one of the major and the top line product exported out of Nigeria is a leaf called Ugwu, (Pumpkin). You cannot believe that today if you bring a 40-feet container full of Ugwu, it will go on a daily basis. That is one of the high products out of Nigeria. The list goes on; Ugwu is there, bitter leaf is there, sweet potato, ginger, and garlic.

    How do you preserve them for export?

    We don’t preserve them, ours is transportation. We have experts who  do that. For example, ours is to take it from Nigeria to Europe. They get it fresh. If you go to SAHCOL, which is our processing centre, I can proudly tell you that today SAHCOL built first class world standard warehouse. And the cold room they have there today is only ABX world that is making use of it because of the dimension we are taking Nigeria to.

    Preservation is not our goal; our goal is logistics, bring in supply chain, get the farmers, put them together to be trained and certified.

    We all know today that brown beans is banned from Nigeria, you can’t take it into Europe because of the chemical used in preservation. Then in terms of cassava peel, nothing out of cassava is a waste, including the peel. If you bring 100 container of cassava peel, it will go the same day from Nigeria.

    Crude oil prices are failing and one of its spiral effects is the huge cut in revenue accruing to the government. How did we get to this stage?

    Fundamentally, as a government and a people we got it all wrong many years and decades ago when we solely depended on crude oil export as the mainstay of the economy. No reasonable government or a nation will do that considering that it would have attendant effects on her economy. Now, the reality has hit us economically and we are running around. It is time to stop complaining and strategise to move ahead. It is time government launched a serious return to the land campaign, by that I mean agriculture. That is why our firm is interested in the promotion of cargo and agro allied export.

    How does your cargo freighting and handling firm fit into this?

    My goal here is to bring Nigeria back to where we are supposed to be. To stimulate the promotion of cargo and agro allied export. It was a very painful task and journey; it has taken a lot of time and hard work, but the bottom line is that we are here now in Nigeria. In ABX world, our goal is to champion agro airline in Nigeria to create a revolution. Agro Allied has to do with agricultural products, in conjunction with transportation and logistics, mostly in aviation.

    Why did it take us this long to realise we have to go back to agro allied and cargo export promotion?

    You know the price of crude oil in the market today. Nigeria is one dimension economy, mono-economy, crude oil and import, that is it. God wants to redirect Nigeria. That is why we are now facing the issue of crude oil and falling price by the day. People like me will say let the crude oil be zero, one dollar per barrel because that will wake us up from the slumber.

    For Nigeria to balance its budget, crude oil has to be sold at a higher price per barrel. How do we make up for the difference?

    We have no choice than to go back to basics, which is agriculture. At ABX World, we have partners in Europe, around the world, we are here to make a difference, create agricultural revolution whereby we take agricultural products as long as they meet the international standard and requirements to the world.

    What strategies do you have in place to achieve good marketing of Nigerian products in Europe and other continents?

    First of all we have to engage a lot of supply chains around the world, especially in Europe because about 60 per cent of what is going out of Nigeria will target the market in Europe. What we do is to engage a lot of supply chain, bring in the supply chain, then try and liaise with the government, both state and federal and get the farmers, through their co-operative societies because most of these farmers have to be fully registered through their co-operative societies. And these farmers have to be trained on the dos and the don’ts involved in what they are into. When you bring in the farmers, you bring in the co-operative societies, then you put both of them together to be trained and certified to be able to supply the products they are into. Once you get certified you can be guaranteed about three years contract. So there is a need for the training and certification, which is the most basic.

    What is your take on efforts by the government to construct 13 cargo airport terminals across the country?

    There are some airports designated as cargo airports in Nigeria, but to me I will call that blue-sky project. What I mean by blue-sky project is that it will never work. I had some meeting with FAAN officials about two, three times in the past months and I gave them reasons why it will never work. Part of the reasons is that the projects were poorly conceptualised. The world is changing. Most of the aircraft manufacturers are changing their direction. There will be a time you will not have a cargo airline because of the new trend in technology in aircraft manufacturing. For example, Emirate is taking the lead in this direction. Some time ago Emirate ordered for a hundred and fifty Boeing 777-300ER. This aircraft takes over 400 passengers, takes their luggage plus their excess and still have the capacity to carry 30 tonnes of cargo on two engines. If you designate 13 airports in Nigeria as cargo airports, then you have to ask yourself if it is viable for cargo airline to fly there. The world is changing so much so that most of the passenger terminals have to be the cargo terminals because most of these agricultural produce have to be moved on daily basis. When you harvest them they are moved immediately to their destination within 18 hours. You cannot tell me you load a British Airways with full passengers then you tell them to stop at Enugu to carry five tons of cargo because Enugu is designated as cargo terminal. It does not make any sense.

  • ‘Revamp agro-export market’

    ‘Revamp agro-export market’

    National Publicity Secretary, National Cashew Association of Nigeria (NCAN), Sotonye Anga, has urged the government to increase agro exports that can generate more employment, foreign exchange and ensure sustainable economic growth.

    He urged the government to remove trade barriers in export and solve the problems in the sector.

    Anga, who spoke at the just- concluded International Cashew Conference in Dar es Salaam, Tanzania, said the association had taken steps to promote cashew farming as a profitable business.

    He said cashew farming has is being done in all geo-political zones of the country. He listed the major cashew growing states to include Enugu, Abia, Imo, Anambra, Ebonyi, Cross River, Oyo, Osun, Ondo, Ekiti, Ogun, Delta, Kwara, Kogi, Nasarawa, Benue, Taraba, Niger and Federal Capital, Sokoto and Kebbi.

    He said there had been a steady increase in Nigeria’s annual cashew nut production.

    Anga, who is also the coordinator Agribusiness, Community of Agricultural Stakehold-ers of Nigeria, said the country had been listed as one of the top 100 Raw Cashew Nut (RCN) producing countries in the world, with a fbout 150,000 metric tonnes of export grade cashew nuts annually.

    Besides, he  said Nigeria has been adjudged the third largest producer in Africa after Cote d’Ivoire and Tanzania, and seventh largest in the world.

    In 2013, he said cashew was  the third largest agricultural export and foreign exchange earner for Nigeria, and about $110 million was earned by exporters from cashew, which represents about 10 per cent  of the agricultural export by the Nigerian Exports Promotion Council (NEPC). Noteworthy, he added that Nigeria’s cashew export was imported by Singapore, India, Vietnam, UAE, and Hong Kong in 2013 and last year, according to NEPC, this year.

    He said the cashew agribusi-ness in Nigeria is worth N24 billion ($160 million) as at last year and over one million people depend on the industry for their livelihood.

    The conference was attended by delegates from Australia, China, India, Tanzania, Malawi, Ghana, Ivory Coast, Malawi, Mozambique, Nigeria, and other countries.

  • Agro exports need revamp to regain shine

    Amid increasing fears about food safety challenge affecting exports, the National Public Relations Officer of the National Cashew Association of Nigeria, Sotonye has called on the government to cut the contamination rate of agro export produce.

    This follows reports that international inspectors found samples in commodities which are high pesticide residues.

    According to him, the government needs to work with farmers’ organisations to find out where these products came from and take measures to tackle the situation.

    He said government agencies need to test samples of domestic and imported plant protection chemicals to ensure they meet safety standards.

    He urged the government to increase inspections and quarantines and test more samples of fruit and vegetables for the export market.

    Anga said improving the nation’s chances at the export markets will create an opportunity for a big revamp to the sector which is losing shine.

    He said exports of agro products are among the nation’s leading cash earners, but that the situation  could turn upside down bringing the sector’s export value if nothing is done to address the issue of contamination.

    Some agro produce exporters, he noted, would make more money, but added that many export products have failed to meet the quality and hygiene standards of their foreign markets.

    With European Union (EU) warning that many agricultural and food products  from the country violate food hygiene and safety standards, he urged operators to keep an eye on the contaminations in their exports.

    He said exporters would hurt themselves if they continued to do business in the old way, with old manners. He urged relevant agencies to implement measures to ensure food safety and hygiene, tracing the origin of foods of all kinds and focusing on essential farm produce.

    He urged that surveillance be tightened during production. He also urged that food production businesses be encouraged to meet international standards on food safety and hygiene such as ISO (International Organisation for Standardisation) and HACCP (Hazard Analysis Critical Control Points).

    He wants more to extend capacity on technical and phytosanitary barriers to international trade. He said some producers have encountered difficulties in accessing the European Union (EU) market.

    According to him, the government should redirect its strategies to boost international trade to include capacity building for producers, such as agronomists and farmers doing organic farming and addressing practices that hinder demand for indigeneous produce.

    Recently, stakeholders in the  industry called for the establishment of a Cashew Board, to boost foreign exchange earnings  and generate more jobs.

    They also appealed to the Federal Government to assist cashew farmers and processors through the provision of a special fund, to boost cashew production.  NCAN President, Mr Tola Fasheru, decried the high cost of processing a ton of cashew. He said it costs $500 to process one ton of cashew, while it costs about $250 in India and $217 in Vietnam.

    He said for the industry to compete favourably with others, the government should set up a special fund for the industry.

    According to him, the sustainability and competitiveness of the sector may be a mirage if the government did not assist cashew farmers and processors.

  • Farmers explore local agro processing

    Farmers explore local agro processing

    Local farmers are exploring the option of agro-processing of their produce to lessen waste, add value and increase earnings, reports DANIEL ESSIET.

    Chief Executive, Natural Nutrient Limited, Sola Adeniyi, a moringa farmer, has established himself as a successful agro entrepreneur. He focuses on moringa and plantain. His company produces moringa fruits from improved cultivars.

    Over the past five years, he has worked with other farmers to make moringa a tropical, multi-purpose tree grow from being practically unknown, even unheard of, to being a new and promising nutritional and economic resource. The seeds and leaves are rich in proteins, vitamins and minerals. They are widely used in fighting malnutrition.

    But harvesting could be a challenge because a high level of hygiene is required. The leaves have to be harvested at the coolest time of the day: early morning or late in the evening.

    The other thing is that there should be no dew on it before harvesting, especially in the morning, to avoid rot during transport. The farmers strip the leaves off the branches before transporting them to the processing centre or tied together in bunches by their stem or better, thinly spread out on trays or mesh to reduce temperature build up. Once this is not achieved, they face the challenge of post harvest loss. It is estimated that 40 per cent of crops, fruits and vegetables produced goes to waste, with loss mainly occurring during posthar-vest handling. One major effort to reduce food wastage is processing.

    Adeniyi has taken it as another part of his business. He said he processes his produce to power and other forms to reduce postharvest losses and increase shelf life.

    Where there are no adequate application of recommended post-harvest treatments, the solution is processing to minimise losses and maximise profits. After harvest, the produce is transported to processing points where it is treated, sorted and packed, and then transferred to facilities or sent to markets. Processing moringa leaves and the seeds into power and other products helps  Adeniyi to make more money. In all, the potential of agro processing is huge.

    Aside from reducing wastage and enhancing food security, many Nigerians have found employment in small scale food processing, majority of them women.

    This is because many farmers are establishing cottage food processing businesses to turn primary agricultural produce into other commodities for market.

    Indeed, the agro-processing sector is going to play a significant role in terms of job creation and sustainability in the economy.

    Consequently, members of  groups such as Association of Micro Entrepreneurs of Nigeria (AMEN) and Association of Small Business Owners of Nigeria (ASBON) and other farmers organisation have taken to processing cashew, oilseeds, grains, fruits and vegetables, peanuts, cassava rice, maize, fruit canning and juice extraction and animal feed production.

    AMEN President, Prince Saviour Iche said there are promising options for Nigerians to invest in small scale agro processing enterprises.

    He identified agro-processing as a sector with high growth potential, despite the challenges of imports competition, loss of market, and the unstable currency and exchange rate.

    According to him, the agro-processing sector has the potential to become an industrial impetus that can create jobs and answer some of the country’s macro-economic questions.

    Thus, AMEN is encouraging young Nigerians and retirees to undertake ventures in agro food processing.

    Improvement in high-added value means that processors can earn a reasonable income as processed produce can fetch high retail prices than unprocessed produce.

    However, there are major constraints to the development and growth of such enterprises due to inadequate raw material supplies, limited access to appropriate technology, failure by locally processed products to compete against imports, and limited access to credit.

    The President, ASBON, Dr Femi Egbesola agrees with  him.

    According to him, the agro-processing sector is relatively underdeveloped, comprising mainly of small and medium sized enterprises involved in the processing of traditional agricultural products for domestic use and export. There are a number of competitive constraints that currently hinder the expansion of the agro- processing sector, one of which is food safety requirements.

    He added also that local processing industry is being truanted by multinational companies as they enjoy advantage over local players.

    He stressed that agro-processing is important because adding value to the crops produced brings real income and that is where the real job opportunities lie.

    The promotion of agro-processing, he noted, would add value to the nation’s agricultural products, which is an extremely important stream of industrialisation.

    President, Anjorin & Atanda Investment Limited, Sunday Anjorin said it is of paramount importance that food producers compete on the global space. This, he added, can only be achieved through meeting  stringent regulatory or certification needs for international food safety through processing.

    Though, it is expensive to add value to agricultural materials, he added that there are significant benefits to all parties within food processing, for example in jobs created or supply chain efficiencies.

    He said there is potential to enter the international markets for processed agro-produce, including cashew butter and cashew oil.

    To do this, he said small-scale processors must be able to demonstrate that they can produce kernels that can be accepted by international buyers.

    He wants the government to provide local producers with incentives to explore new technologies to increase food production.

    At the moment, experts believe that the cassava boom is largely depended on local processing into wet and dry starch, and higher value food and industrial products.

    As a result, so many local processing activities are taking place across the cassava sub sector.

    This is expected to fuel economic growth and economic development.

    One of them is the Project Director, Cassava Adding Value for Africa (CAVA) phase II, Prof Kola Adebayo.

    He said CAVA supports farmers with machines that allow for quicker processing of raw cassava, which is chipped and dried ready for sale within days.

    The main opportunity for technology to make a difference is in the drying process. A flash dryer dries cassava mash very quickly, preventing fermentation.

    A critical part of the technology transfer process was that CAVA mentored a Nigerian fabricator to produce a flash dryer that meets international standards. As a result, new engineering knowledge and skills are being developed and embedded locally.

    So far, experts from the University of Greenwich and the Natural Resource Institute, United Kingdom have rated made-in-Nigeria flash dryers as a good tool for cassava processing that can be exported. The assessment was made by Dr Andrew Graffham, a food safety and quality expert and Dr Andrew Marchant, a consulting engineer also from the institute, when they visited Nobex Technical Industries in Lagos.

    The experts were in the country to promote the utilisation of cassava in other non-traditional products under the CAVA, funded by the Bill and Melinda Gates Foundation. CAVA involves Nigeria, Ghana, Tanzania, Uganda and Malawi.

    The programme works in collaboration with the Federal University of Agriculture, Abeokuta.

    Graffham said: “In connection with what is going on here today, we’ve been working with a range of fabricators here in Nigeria, particularly with Nobex Industries to try and improve the processing equipment that the company produces, to make it more cost efficient and to get a better output, lower cost per tonne and generally improve the quality.

    “Nobex has exported one of its products to a commercial factory in Malawi and I believe that there will be a lot more export and I think this is very significant, because this is not Nigeria importing products now, but this is Nigerian made equipment being sold in another country and the people there are very happy with the product,” he said.

    He also praised the Bank of Industry (BoI) for partnering with the company under the Cassava Bread Fund Initiative which has procured about 20 flash dryers for small and medium enterprises (SMEs) across the country for the production of high quality cassava flour (HQCF).

    “Under the programme, we are interested in working with the SMEs, of which there are many across the country, processing equipment and improving the efficiency of them is quite an important area for us. And that has been going on now for more than six years, what you see today and what has been done with the Bank of Industry has been a good collaborative effort,” he said.

    According to Marchant, the impact of cassava development in Nigeria was encouraging and has also been felt by the fabricators of the equipment as there are now factories with more machineries and 10 times the number of people that used to work in them.

    “Another good thing we see is that the scale and quality of machinery is increasing, it is bigger and better, it would be a nice thing to display imported machineries with what can be produced here and import only what cannot be made here in Nigeria,” he said.

  • Lack of infrastructure in ports hampers agro exports

    Lack of infrastructural facilities in ports is negatively affecting agro exports as the ports are struggling to cope with commodity traffic.

    National President, National Cashew Association of Nigeria (NCAN), Mr Tola Faseru said ports have serious capacity problems, adding that this has lead to slow processing times. In most ports, he said lack of infrastructure hampers agro exports most as it cause delay in movements of produce in the major ports.

    Though the concessionaires have initiated the modernisation of facilities, most of the improvements, he observed, however, were designed to boost agro exports.

    This, he maintained, made it difficult for agro exporters to ship cargoes and experience waiting period to load the commodities.

    He urged the government to made capacity building a major concern along with improving the rail and road connectivity to minor ports, stressed the need to reposition the ports as a gateway for trade.

    According to him, the potential for agro export growth is enormous, but observed however that the nation’s share in the global market for agricultural products is still severely hampered, by a lack of infrastructure in the ports. Tackling logistics infrastructure deficit, he noted would open up large new trade opportunities both inside and outside the country as well as enhance returns on existing trade.

    He urged stakeholders in the industry to work together to boost exports and strengthen the domestic market by mapping out obstacles to the country’s trade.

    For watchers, high-cost logistics, poor infrastructure and lack of export financing are among the major bottlenecks that have long hindered agro exporters from expanding their reach.

    Currently, exports are still less significant to spur growth in compared to domestic consumption and direct investment, which are the top drivers of economic expansion.

    Another concern to address is the building up of the capacity of small and medium agro enterprises to increase their competitive edge over tighter competition from foreign goods, in the industry.

  • ‘Sound financial sector, agro export competitiveness key to reducing poverty ‘

    ‘Sound financial sector, agro export competitiveness key to reducing poverty ‘

    The Central Bank of Nigeria (CBN) has been advised to focus on finding the right “degree of tightness” in monetary policy to keep the economy stable and boost agro exports.

    Speaking with The Nation, the President, National Cashew Association of Nigeria (NCAN), Mr Tola Faseru said while the bank must implement prudent monetary policy, the government can improve the nation’s balance of payment position by promoting agriculture commodities.

    Noting that the economy has  been exposed to risks stemming from the external environment, fiscal pressures and weaknesses in the  sector, Faseru canvassed implementation of  prudent macroeconomic policies with low fiscal deficits and a flexible exchange rate sheltered from external vulnerabilities.

    For the incoming government to start on a good footing, Faseru said soundness and transparency of the financial sector must remain the main domestic policy challenge, and every efforts must be channeled  towards   addressing credit quality, liquidity and capital adequacy concerns  that would keep financial risks elevated.

    While pushing for strong structural reforms across all sectors, the  NCAN chief said revamping the agro sector is  essential  not  only to improve trade competitiveness, but to encourage more Nigerians to explore new opportunities as the  food sector  gets more integrated into the global economy.

    He said a pragmatic policy impetus by the government will provide the much required stability to agric exports, apart from measures meant to help the government acquire international presence in commodities wherein it has comparative advantage.

    Faseru  stressed  the   need to sustain  the  momentum in agriculture exports in coming few years by  revitalising the Export Expansion Grant(EEG), reducing  transaction costs time, better port gate management and  introducing  fiscal incentives  that  will  contribute  towards  the transformation of the economy.

    In this direction, he called on the CBN to  relax its  position on repatriation of export proceeds, reduce interest rate and  reform the foreign exchange market.

    According to the bank, it will  help the government to achieve more by supporting the agriculture sector with effective and hassle-free agriculture credit, with a special focus on small and marginal farmers, adding that farm credit will underpin the efforts of hard-working farmers.

  • Grooming agro entrepreneurs

    Grooming agro entrepreneurs

    A capacity building forum was held at the Federal College of Agriculture, Akure, Ondo State with the aim of  empowering agricultural training institutions to promote entrepreneurship, increase employment capacities of agro-business and grow the incomes of producers. Daniel Essiet writes that more still needs to be done to achieve the desired results.

    Providing farmers with  tools and knowledge needed to manage farm business successfully and promoting value chain activities to create jobs across the nation’s agricultural sector formed the cornerstone of a forum tagged Capacity Building in Agricultural Education in Nigeria (CBAEN)  held at the Federal College of Education, Akure, Ondo State.

    It was organised by the college and Bern University of Applied Sciences, Switzerland.

    Participants and speakers included eminent scholars and  trainers who have acquired reputation as successful users of agricultural practices.

    After appraising the sector, participants agreed that the government’s move to build a functional agricultural sector was lofty and commendable. They however say it still requires a lot more efforts in terms of measures and incentives to boost sustainable and competitive  farming  practices  capable of meeting growing domestic and export demand for food commodities.

    Setting the tone, Project Consultant, CBAEN, Prof Placid Njoku said  government’s efforts could have produced ‘what may be a working model of sustainable agriculture, resurrect the nation’s local, affordable and accessible food system but that the absence of infrastructure is  hampering transference of functional agriculture to every area of the country.

    He observed that  despite national efforts to achieve strong development of agric industries and services in urban and rural areas, there were considerable gaps.

    These breaks, according to him, have hindered farming business  from growing as expected as farmers lack of knowledge to carry out viable commercial ventures to produce grains, livestock, roots and tubers.

    Njoku also identified weak and inadequate agricultural extension delivery as a shortfall in the nation’s agricultural architecture, adding that Nigeria had experienced a disconnect between developed agricultural technologies and  farm operators.

    He stated that in effect, the huge resources expended on agricultural research seem to have been wasted as research results hardly get to the farmers. Therefore, he lamented that the opportunity of a full exploration and exploitation of the agricultural value chains is not realised.

    Njoku  said though  the nation’s agricultural sector offers great   potential that could be leveraged to  drive economic growth, agricultural performance over the last decades has not been encouraging.

    To reverse this, he said the  government must encourage  agribusinesses through incentives to help them respond to market  demand  for high quality products.

    Canvassing the need for functional value chain across the sector, Njoku said this will not only  empower farmers, but that agric manpower development institutions will direct their efforts at  capacity building and technology  to enable farmers and investors explore the growing commodities market.

    On the CBAEN initiative, Njoku said it is a project between  the Federal Government and  the government of Switzerland designed to develop manpower in the sector.

    According to him, the project is to be implemented by School of Agricultural, Forestry and Food Sciences, Bern University of Applied Sciences (BFH) on behalf of the Swiss State Secretariat for Migration (SEM) at various institutions in the country, including Federal College of Education, Akure.

    According to him, farmers have to be  trained to systematically observe their crops and base their observations on modern farming practices to  make informed decisions.

    The Director of Studies, Agricultural and Rural Management Training Institute (ARMTI), Ilorin, Kwara State capital, Dr Femi Oladunni observed  that agricultural supply chains must be upgraded, deepened and expanded, adding that stimulating innovation and entrepreneurship and offering opportunities to young people within well-functioning farming and agri-food systems can help  them to take up careers in farming.

    He further said  the economy needs to upscale infrastructure level to support farmers and agro businesses to increase food production nationwide.

    To reposition the agric sector, Oladunni  urged  the  government  and  the private sector to address  the  pervading issues  of  lack of  modern  farming  knowledge, poor agricultural practices, depletion and degradation of ecosystems, adding  that  proper response  to  the  challenges of food security  would  increase  production and farmers’ incomes.

    He also called on  the  government to facilitate  easy access of rural youth to the agric sector and provide incentives to halt the rural-urban drift to ensure a sustainable increased production to feed the nation.

    Speaking on Partnering options in training to promote efficiency in harnessing new value chain opportunities hunger, Project Director, Cassava: Adding Value for Africa(CAVA) Phase II, Kolawole Adebayo said  the agric value chain consists of activities from farm, processing and  to consumption.

    Highlighting the importance of  promoting value chain development, he said the outcome will encourage investors to invest in  agric extension, harvesting, rural infrastructure, seeds and other inputs capable of inducing growth in the agriculture/agribusiness sectors.

    According to him, poor infrastructure has impacted negatively on  food security, causing less food availability, loss of jobs and livelihoods which in turn has affected  farmers.

    So far, he  observed that the market was increasingly driving agricultural development.

    International expert, Prof Robert Liehman said Bern University of Applied Sciences (BFH), Switzerland which he represented   is determined  to help Nigeria improve capacities in agriculture manpower development through the project.

    Liehman who is of the Swiss School of Agricultural, Forestry and Food Sciences, said the university has drawn a workable curriculum that would help agricultural training institutes build the capacity of actors along the food chain.

    Value chain expert, Dr. Ingrid Fromm also of Bern University of Applied Sciences (BFH), said agricultural businesses need to learn more about what their customers want in order to develop production strategies.

    She said value chain training affords participants the opportunity to pool resources and gain efficiencies of scale as well as access to information.

    She said United Nations Industrial Development Organisation (UNIDO) commissioned the university to produce a value chain  tool for interventions at country level,adding also the institution  conducts diagnostics of industrial value chains to help grow national agriculture.

    Provost, Federal College of Agriculture, Akure, Dr  Samson Odedina said  the college  has  worked  with  farmers across the Southwest, helping  them to adopt modern farming  practices.

    According to him, the college runs practical entrepreneurship programme that gives farmers a realistic picture of what it takes to run a successful small-scale produce operation—including capital, management, labour and other resources.

    With support from West Africa Agricultural Productivity Programme (WAAPP), he said farmers are receiving training to practice commercial farming.

    Odedina said improving capacities of small scale farmers to manage farms through a variety of methods is essential for ensuring the economic viability of the food sector.

    For youth to be persuaded to take to farming, he said agriculture must be economically rewarding, adding that the development of the services sector will increase income and improve the efficiency of farming.

    As part of the college’s curriculum, he said  students are made to   see how  improved  varieties  boost  yields on demonstration farms ,adding that this has helped the school  to bring about a change in attitudes towards farming.

    While calling for assistance to  help the college sustain youth driven agricultural recovery,  Odedina  said  the institution  now   places  emphasis  on value chain activities that promote prosperous  agriculture.

    He stressed  the  need to complement the government extension machinery and this   needs active participation from all actors, besides the government.

    The Ambassador of Switzerland to Nigeria, Chad and Niger, Dr. Hans-Rudolf Hodel said the Swiss Government is assisting the government to address insecurity through agriculture.

    Represented by the Migration Adviser, Andreas Broger, Hodel said  the  CBAEN project  will  help  Nigeria explore its abundant agricultural potential, reduce unemployment, boost national food security and earn more foreign exchange.

    The Director, Partnership and Linkages Programme, Agricultural Research Council of Nigeria(ARCN), Dr Hassan Ahmed  said  there are tremendous efforts by the Federal Government to use  the college of agricultures to promote profitable agric businesses.

    He  said the government  is paying attention to their activities in order to improve agricultural production in Nigeria.

    Country Representative, Harvest Plus Nigeria, Dr Paul Ilona said  the nation needs to strengthen the  value chain by prioritising modern farming methods, thereby bringing an overhaul of agriculture sector.

    He urged the government  to provide a systematic approach to rethinking food production, adding  there are farming initiatives that could blossom into agri business ideas, at the end attracting  widespread participation.

  • Nurturing the next generation of agro exporters

    A strong agro exports sector has both economic and social benefits. For this reason, stakeholders met in Lagos to discuss ways to boost farmers’ income through agro exports. DANIEL ESSIET reports.

    Jeriedayaro Uwheraka, Chief Executive, Frijay Consult Inc, is an agro exporter.  She began her exports business in 2005, with smoked fish production. She later grew a variety of vegetable crops for export.

    Today, Mrs Uwheraka has turned vegetable export into a multi-million naira business. As a profitable venture,  some Nigerians are taking up vegetable export as business.

    In Lagos, alone, vegetables and other agro exports have transformed the standard of living of many entrepreneurs who  depend on staple crops for food and income.

    Uwheraka‘s experience is an example of how export is improving the income and productivity of small farmers. Every week, tonnes of vegetables are dispatched for export to Europe and the United States. Farmers diligence and timely harvestm help to produce premium crops of high quality. Vegetables have generated higher and more reliable profits than staple crops. The profits from the exports, according to these farmers, have helped them to solve their financial needs including payment for their children’s education and medical bills. Some said they have built houses and made a number of investments in their farms. Uwheraka explained that vegetables and horticultural production is cumbersome especially when done for the export market. Strict international standards relating to vegetables and agro exports, she said, compounds the challenges. For this reason, she said small farmers have to learn how to produce specific crops in accordance with international best practices. The concern of the Lagos State government  is that  there are very few smallholders involved in the nation’s fruit and vegetable exports. Besides,  very few smallholders are experienced in growing vegetables and horticultural crops for exports. A lot of them don’t know how to meet the requirements of exporters.

    Addressing a stakeholders workshop on agricultural produce export  organised by the Lagos State Agricultural Development Authority, its Programme Manager, Mr. Kayode Ashafa said Kenyan vegetables and horticultural exports are cited as a success story in African agriculture when Nigerian farmers can do better . With the  natural potential of the land to support cultivation of exportable fruit and vegetable, Nigerians can do better, he said.

    He said that in Kenya, vegetables and horticulture export is a big business with produce transported overnight in aircraft to reach Europe in the morning.

    His account describes the serial feats of coordination, discipline, productivity and manual labour, which make Kenyan horticulture competitive in global markets.

    Many of the lessons of Kenyan  agro exports success  can be applied here, he said.

    For him, Nigeria has an advantage because fruits and vegetables can be grown on a wide range of different types of conditions, from small farms with less than two hectares using family labour to large-scalecommercial farms with over 100 hectares and advanced technology.

    He observed that the number of smallholders producing for export is relatively small, adding  that Lagos State is ready to support more farmers to explore the European markets.

    According to him, agro exports is  an industry that if well developed  can transform the livelihoods of rural populations in Lagos.

    His conviction is based on the fact  that  flowers, fruit and vegetables from Africa occupy a big place in Europe and the livelihoods of hundreds of thousands of small farmers could be transformed by their hard-won stake in a such emerging global trade.

    He believes that thousands of farming families can been lifted out of poverty if Lagos emerged as a major player in the booming world trade in high-qualitycut flowers, vegetables and agro exports.

    According to him,  Lagos  State  has   a strong long-term interest in ensuring that agro exporters meet international standards by playing a pivotal role in supporting the growth of the  export industry, and enabling  local companies and producing households to sell the ever increasing volumes of agro exports abroad. To achieve that objective, he said the state would want farmers to increase production of high value produce but added that such activity should be done in full respect of the environment.

    He highlighted the challenges of the local export sector, which include: insufficient understanding of the domestic and international markets; logistical issues; and technical challenges such as application of new varieties.

    According to him, exports to highly demanding markets – where insistence on high-quality is paramount, have  increased  worldwide. He reiterated  the readiness of the government to work with   stakeholders to develop an export strategy that will benefit stakeholders across the sector, assist local farmers develop top-quality produce; improve support services – such as customs, quarantines, quality inspection, cooling systems, air and rail transportation and establishing a core group of model farmers and firms.

    Ashafa said the state wants to work with stakeholders to map out the next phase of the industry’s development. This involves finding ways to overcome several  new challenges.

    He said the state government is ready to train smallholders who   can produce a reliable supply of fresh vegetables to meet the stringent quality standards and short inventory period of supermarkets in Europe.

    Ashafa stressed the need for  small farmers to increase their bargaining position by organising themselves through groups. Farming groups enable smallholders to negotiate with a single voice, improving their bargaining position, he added. If one exporter does not offer a fair price, they can try another. Exporters negotiate directly with farming groups to agree on the exact quantities farmers will produce and the price per kilo.

    According to The Technical Adviser, Operations (Value Chain) Office of the Minister of Agriculture and Rural Development, Mrs Toyin Adetunji, the market opportunities offered growers by the European and  United States buyers are some of the most financially attractive but most exacting. However, to access the opportunity requires compliance with a strict regulatory framework of measures designed to ensure human and plant health. The measures, she noted, goes beyond the international requirements set under the sanitary phytosanitary and technical barriers to trade agreements.

    Mrs Adetunji  said many farmers are ill-equipped to take advantage of the opportunities provided by export trade. These include weak infrastructure, lack of capacity and the inability to meet technical product specifications and stringent requirements in terms of quality, safety, health and the environment. These impede their integration into global markets.

    She said farmers and agro exporters need to enhance compliance with technical standards to heighten consumer confidence and gain access to regional and global value chains.

    With the globalisation of production, supply and retailer chains,  Adetunji  noted that ensuring the safety and quality of agro produce is vital. Recent health concerns arising from bovine diseases, bird flu and various toxins entering the food chain, have led to stringent standards and conformity procedures, particularly in the area of agro-food exports.

    According  to her, exporting countries must acquire the capability to conform to requirements in terms of quality, safety, health and the environment if they are to participate fully in global markets.

    Adetunji said developing business in agro commodities represents great potential for growth and employment. The challenge, she noted, however, lies in effective and efficient exporting to the right markets. Capacity building, she stressed, is required along the value chain, from production to export.

    She said challenges are principally operational and practical. The importers want produce delivered in the agreed quality, quantity and price, on time, and to the agreed destination. These requirements have become more complex for producers and exporters over time and they now face additional criteria.

    Domestic challenges for producers include insufficient infrastructure from roads to collection centres, to packing houses and insufficient access to finance. The main difficulties lie with the quality and scarcity of inputs, post-harvest techniques, and pest control, with fruit fly control requiring effective regional cooperation.

    She said while farmers have  shown increasing interest in exploring opportunities in the export markets, it is important, they be encouraged to deepen their understanding of issues that characterise specific market demands.

    She said exporters have very specific quality requirements for crops   variety and so farmers need to work hard to meet international expectations.

    She stressed the need to have agronomists to provide on-farm training to help smallholders to meet international norms.

    The technical standards apply to processors and the rest of the food supply chain to farmers.

    Adetunji said that there are significant costs to be borne for such market access and these are usually paid by the supply chain participants.

    On the whole, it makes sense for more Nigerians to grow crops for export, she said but noted that farmers have to be trained in good agricultural practices, adapting their farming methods to European standards.

    The Head, Component Rural Institution Development, Lagos  State Agricultural Development Authority, Mrs Eunice Adewale said  the  authority was established to improve agricultural productivity, increase the  standard of living of farmers and promote sustainable food production in  a healthy environment through efficient extension service delivery.

    According  to her, the technical  service component of the authority links with research institute and universities for improved technologies on crop protection, livestock, fisheries, farm mechanisation, agro processing and women in agriculture for value addition.

    She said  the Lagos State Government is  ready to work with farmers  to boost exports but want them to register with the cooperative department of the Ministry of Agriculture.