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Tag: FACAN

  • FACAN tackles exports rejections

    The Federation of Agricultural Commodity Associations of Nigeria (FACAN) has said it is working out stringent measures for commodities export to meet international standard and prevent loss of revenue for Nigeria due to rejections.

    Its Deputy Executive Secretary, Mr Peter Bakare, who made the call in an interview in Abuja, said the measures would be put in place on exports because the country had lost significant revenue, while many exporters had suffered heavy financial losses because of the number of rejected export items from Nigeria.

    He said the association was faced with many challenges leading to rejection of its produce in the international market because of inability to provide sanitary standard compliance documentations.

    According to him, years back some notable products like sesame seed, beans, cotton, groundnut, palm oil and cocoa that were illegally exported to the EU were rejected because some of them contained unauthorised substance, which made their quality substandard.

    “Some of the produce were unhygienic, some had broken packages, particles and some contained aflatoxin, a toxic product responsible for liver cancer,’’ he said.

    Bakare, however, said the association was working hard to ensure proper registration of all commodity associations for proper monitoring.

    “ FACAN is also working with other relevant agencies to ensure compliance with the sanitary and phyto-sanitary requirements of the international markets and see that all export produce packaging meet the international market standard and ensure that the transportation of agricultural products meet best practice standard,’’ he said.

    He disclosed that last year, more than 40 containers of hibiscus flowers were rejected in Mexico as a result of impurities because some farmers used lower quantities of chemicals.

     

     

  • FACAN targets 10m jobs through rural agric

    Federation of Agricultural Commodities Associations of Nigeria (FACAN) said it is targeting 10 million jobs yearly with its planned rural agricultural revival campaign.

    The initiative aims to benefit up to 200,000 households in some communities, with special attention being given to ensure that women and youth are included in the scheme.

    Speaking with The Nation, its President Dr Victor Iyama said FACAN is determined to boost farm productivity nationwide to arrest   gross underemployment in rural communities.

    He stressed that agriculture offers great opportunities to drive development and raise living standards for millions of people.

    Since over 70 percent of Nigerians  live in rural area and depend on agriculture for their livelihood, he said FACAN is seeking grants from donors to promote farm economic opportunities to slow social mobility out of agricultural occupations.

    He said the association is seeking funds to enable it provide affordable finance for tractors, threshers, combine harvesters and other equipment to thousands of farmers across the country.

    He said the national rural agriculture renewal campaign will involve the development of farm settlements, alongside implementing various skill development initiatives to cater for the requirements of the sector.

    Iyama said it was important farmers   continue to grow diversity of markets.

    He said the association is going to work with farmers in the rural communities to create a gateway for them connect with the huge opportunities emerging in the market.

     

    He noted that, despite remaining challenges, the Government had taken huge strides in recent years to improve rice production.

    He added, however, that the government needs to join forces with the private sector to enhance rice productivity, by providing equipment and processing machines to improve food security and farmers’ livelihoods.

    According to him, the rice sector needs to increase plant capacity and establish a new position as a rice exporter in the world.

    For this to be achieved, he said farmers must be empowered with processing machines, such as paddy huskers and rice milling machines.

    He said FACAN would help producers, processors and exporters improve their productivity, quality of production, and capacity to biosecurity requirements.

    According to him, export opportunities make an important contribution to the economic growth and the livelihoods of people.

     

     

  • FACAN seeks special economic zones for agric

    The Federation of Agricultural Commodity Association of Nigeria (FACAN) has urged the Federal Government to create  Special Economic Zones (SECs) for agriculture.

    He said this would represent the  ray of hope for a sector acclaimed to be the key to the nation’s fortunes but starved of investments.

    Its President, Dr Victor Iyama said the carving of certain areas as agric zones would attract sustainable industries and individuals, ready  massive  food production projects.

    According to him, the zones would form a major component of the government’s development plan to transform agriculture and the economy.

    By establishing such zones, Iyama said, the government was creating a conducive atmosphere for foreign direct investments aimed at stimulating growth in some parts of the country.

    He explained that many Nigerians were still engaged in primary agriculture production, stressing the need to take it to the secondary level for value addition.

    He said economic zones would work  as  catalysts for local people to invest in productive commercial ventures.

    According to him, promoting rural area-based development would yield results that will improved the living conditions of millions of rural dwellers.

    As a government policy, he reiterated that the area-based approach to rural development would make it possible to empower neglected social groups and turn them into key players in efforts in the areas of social inclusion, economic growth, poverty reduction.

    Because of the country’s huge size and economic strength, he noted that country’s agriculture and rural areas have special characteristics.

  • FACAN advises govt to stop corn import

    FACAN advises govt to stop corn import

    Federation of Agricultural Commodity Association of Nigeria (FACAN) President, Dr Victor Iyama, has urged the government to prohibit corn imports to encourage farmers increase their production.  Calling for the suspension of maize  imports as a way to combat a glut  in the supply of local  maize, Iyama  said  it was not in the interest of the country for poultry  and  feed-meal producers  to  shift  from  local maize to imported one  to save costs.

    Maize has been Nigeria’s primary feed grain, with domestic production gradually being topped up by imports.

    In response, feed millers and poultry farmers have said a lack of maize would need to be made up for by feed maize imports.

    Feed-meal producers said they could not purchase maize at the high price farmers wanted as imported ones were cheaper.

    The FACAN chief hoped the prohibition of corn importation would further improve the welfare of the farmers and increase the country’s corn production.

    Former Chairman, Export Group, Lagos Chamber of Commerce and Industry (LCCI), Dr Obiora Madu said there is need to modernise production-with introduction of new hybrid seeds, irrigation, logistics improvement and education in basic business practices to bring down the cost of local maize.

    In the absence of logistics improvement, he said the prospects for maize production do not seem especially promising.

    According to him, the government needs to figure out incentives for farmers to plant maize crops in the hopes of easing the country’s perennial food shortages and high price of the produce.

  • FACAN seeks measures to boost exports, curb rejections

    The Federation of Agricultural Commodities Association of Nigeria (FACAN) National President, Dr. Victor Iyama, has urged the government to monitor farmers’compliance with international standards to reduce rejections of agric exports.

    Presenting a  paper, titled: The problems of exporting finished agricultural products at a small and medium enterprises (SMEs) forum in Lagos, Iyama said   Nigeria  has the potential to become a major  agric  commodity trading hub,  taking  advantage of rising demand for  agric commodities globally.

    He added that consumption of agric commodities from Nigeria has increased.

    At present, he said the United States, European Union (EU) and Asia were the largest importers of the nation’s agric produce.

    Despite this, he noted that there was a growing awareness about microbial and chemical food safety among consumers  and this has led to rejections of produce due to non-compliance with EU requirements.

    From reports, the EU has created the communication portal Rapid Alert System for Food and Feed (RASFF) by which its food control bodies notify each other when unsafe products have been detected and for which measures have been taken to protect consumers. These alerts are often based on the outcome of risk based inspections and monitoring plans by control bodies.

    Due to rejections, he said huge amounts of produce were discarded which represent high economic losses and food waste.

    To respond to this, Iyama explained that issuance of Sanitary and phytosanitary (SPS) certificates to genuine exporters are importance, if the government is to reduce rejections.

    He reiterated the readiness of the association to work with the government to ensure compliance with internationally approved SPS standards that would help boost international trade, particularly for the  agribusiness sector.

    Iyama has called for incentives such as credit at affordable rates to boost Nigeria’s agric exports.

    He said: “We   need incentives such as   easy access to loans, better infrastructure, tax concessions etc. Most of all good governance, consistency of fairly formulated policies, level playing fields and quick dispute resolution mechanism. We should encourage our private sector to help Nigeria in becoming a trade corridor for the African countries.”

    He said, however, that the agric commodities sector has had to grapple with a challenging operating environment in recent years, and one of them is poor power supply.

    According to him, adequate power supply was critical, adding that the nation needs  constant power supply  to keep the momentum of  exports  growth high, be it large-scale or small-scale food and  agricultural  operations  targeting the exports market.

    He explained that a shift from primary production to modern integrated agribusiness will provide lucrative opportunities to many smallholder farmers.

    This, he added, however, can only be achieved if power supply is adequate. He urged the government to speed up building “all projects that will ensure a modern infrastructure backbone for agric exports growth.

    Meanwhile, the  United Nations Industrial Development Organization (UNIDO) Investment and Technology Promotion Office (ITPO) in Nigeria has initiated a programme to help Nigeria end a decades-long dependence on oil and to diversify its economy.The programme, to be implemented with government institutions and private sector counterparts, encompasses a number of promotional activities to support the development of micro, small and medium-sized enterprise (MSME) clusters and the establishment of industrial parks, including in the agro-processing sector.

  • Farmers grappling with challenges, say FACAN, others

    Farmers’ income will continue to be under pressure as they face challenges, the National President, Federation of Agricultural Commodities Association of Nigeria (FACAN), Dr Victor Iyama, has said.

    Iyama, said there was no “short-term fix” to the problems, saying  the outlook was difficult.

    He observed that though there were a few bright spots, the overall impact had been significant with a lot of producers still looking at how to get through the recession.

    For instance, he noted that young farmers faced challenges getting a foot onto the business ladder, adding that it was having an impact on the entire industry.

    He explained that they are an high tech group who hold a realistic picture of farming in their heads and want a career on the land but are seriously constrained in a number of ways.

    Unless these investments are secured, Iyama said it was unlikely that the economic potential of the young people would be unlocked.

    He urged banks, governments, families, and communities to come together to ensure young farmers receive the support they deserve.

    He  described  agriculture as  a shining light in an otherwise challenging economic landscape ,urging  the government  to partner agribusiness companies to  discuss how they could bring even more investment in the country’s agriculture sector.

    Expressing delight that the budget has finally been signed, Country Manager, Harvest Plus Nigeria , Dr Paul Ilona    added  that it  would be the enabler the government needs to propel economic growth.

    He expressed hope that the budget will not only create an economic revival for the betterment of the country but will also pave the way for sustainable growth.

    Ilona expressed the hope that major changes were introduced into the agric sector as the ministry tries to implement the agric policy.

    Food Safety expert, Prof Stephen Fapohunda,      urged the government, among others, to focus on stimulating entrepreneurial development among young people.

    In the face of a weaker economy, Fapohunda of Department of Biosciences and Biotechnology, Babcock University, Ilishan-Remo, Ogun State expects the  budget  to  focus  on value-addition  and  creating the enabling environment  for businesses to survive and thrive  through  creation of  products and services.

    He explained that adding value and maximising the agriculture sector’s limited resources through targeted investments will strengthen links in the supply chain for food and develop competitive advantages.

  • FACAN elects new executive

    Federation of Agricultural Commodity Associations of Nigeria (FACAN) has elected officers to run its affairs for two years. They are Dr Victor Iyama, who was re-elected President; Alhaji Sheriff Balogun is the deputy president; General-Secretary, Bello Dogondaji; Treasurer, Hajia Rukkayat Ismaila; Financial Secretary, Hajia Jumai Abubakar; Public Relations Officer, Mr Henry Olatujoye; Auditor, Mr Musa Labaran and Assistant General Secretary, Bayo Ajibade.

    Inyama   called for policies that will support farmers to produce food to meet growing domestic and global demands.

    He  sought investment in food surplus storage and promised a market for food surplus produce.

    Nigeria, he said, has enjoyed surplus food production but the challenge is to increase storage.

    FACAN, he reiterated, would empower small-scale farmers and smallholders to ensure food security and use agriculture to drive economic growth.

  • Why Nigeria is not partaking in $80b chocolate market

    The President, Federa tion of Agricultural Commodity Association of Nigeria (FACAN), Dr Victor Iyama, has lamented that Nigeria is not benefiting from $80 billion chocolate confectionery market.

    He  blamed  this on  the inability  of the nation to increase its yearly  production  to  one million tonnes to be  at  par  with  Ghana and Cote d’Ivoire.

    Iyama  told The Nation    that  at 270,000 tonnes, Nigeria  was far  behind  Ghana and Cote d’Ivoire at one million tonnes and 1.5 millions tonnes.

    He recalled  that some years ago,  Nigeria was ahead of Cote when yearly production stood at 400,000, and Cote d’Ivoire 380,000.

    On   the  campaign  to  encourage  local  producbers  to make  chocolate  for export,  Iyama,who  is also the  chairman, Board of Trustees, Cocoa Association of Nigeria (CAN), said European consumers would  patronise  chocolate  made in Africa.

    He  argued  that it  would  be  unrealistic for local  companies  to embark on producing chocolate for export as  such the product would not  secure a better price.

    Right now, he   said   cocoa-processing companies are  facing  high  charges   exporting their products to Europe with  new trade terms introduced by European Union (EU).

    This, according  to him,  makes Nigeria-origin cocoa butter and cake less competitive in the international market and   a direct loss of revenue to the local processing industry.

    According  to him,  the  concern how much money they have to spend  at  the end  to get their products  rejected  at the global market.

    To avoid this,  he  called  on  farmers to increase production of cocoa product for markets in Nigeria and West Africa, adding that the scope for expansion is enormous.He said, however, that local consumption of chocolate was small and as such not encouraging local development of the products.

    He urged the government to encourage local manufacturers to produce chocolate by buying the end products and distributing them to school students, explained that would help to develop local  taste for  chocolate sector.

    For cocoa producers to  make money, he said  the  research institute  should  make  efforts to develop fine/flavoured cocoas species for  farmers to  plant, adding   that  it  attract the  interest  of  producers of premium chocolate brands in ways that enhance their net revenue positions and provide a secure base for long-term investments.

    His words: “Seek ye the kingdom of sizable cocoa production first and every other thing will be added onto you.

    ‘’Except local processing  companies are  ready  to  take  the  beans  and  process   for local consumption, he argued, processing  into flour   is not profitable.

    “Cocoa processing is not a profitable venture for now in this country, if the intention is to export cocoa butter, cocoa cake, the bye products or the products, the factors that are affecting cocoa beans export are also affecting the further processing of cocoa. “You know why, because the same buyers dictate the price at which you sell. “You will know that any business or venture or manufacturing concern that you set up, the ideal thing is for you to sit down compute what your cost of production is, you put a margin and fix your price, but can you do that with cocoa or cocoa butter or cocoa cake?, you can’t.

  • Rising cocoa prices leave farmers poorer

    Even at the global price of about $3,200 per ton, local cocoa farmers are not smiling to the bank because it is has not impacted on their profits, the President, Federation of Agriculture Association of Nigeria (FACAN), Dr  Victor Iyama, has said.

    On the average, he said growers receive about six per cent of the price that consumers in rich countries pay for chocolate.

    The problem, according to him, is that prices have not risen enough to give farmers an incentive to continue producing cocoa.

    Iyama said farmers receive a fixed price from agents of chocolate manufacturers at the season.

    The price offered by agents of chocolate manufacturers, he said, limits their ability to make profit when prices go up.

    While the profits of multinational chocolate companies have increased, he said cocoa farmers receive only a part of the world market price for beans.

    According to him, it is the big companies in chocolate manufacturing that are  making  high profits.

    While the companies are competing for higher market shares and profits, Iyama said  thousands of cocoa farmers bear the costs  by getting less and less share from the revenues.

    Iyama stressed the need for chocolate manufacturers and consumers to pay a fair price for chocolate so  farmers can receive a living wage and have sufficient income to invest in better equipment, seeds, and fertilisers, with potential for expansion.

    He said prices of both imported and local farm inputs used on cocoa farms have been escalating.  These include fertilisers, insecticides, weedicides, pesticides and farm machinery.

    Because of low revenues, he said farmers cannot invest in the maintenance of existing trees or in planting new trees on their plantations. About 40 per cent of the cocoa crop is lost yearly due to incorrect maintenance.

    Declining real producer prices combined with rising costs of production, means shrinking income incentives and consequent reduction in production.

    If the negative economic conditions on cocoa farms persist, he said  the reduction in production and exports is likely to continue in the coming years.

    With limited income, he  said  cocoa farmers and their families are losers in a lucrative cocoa and chocolate industry.

     

     

     

    He said   farmers spend so much per hectare to produce cocoa per tonne.

    For this reason, Iyama said cocoa farmers deserve price increase because they   put in a lot of effort to ensure good quality cocoa.

    He said cocoa prices need to go higher up 5000 to stimulate production as demand will keep rising.

    The price of cocoa is likely to remain a key development concern, yet it is unclear what policy tools are needed to ensure that farmers benefit more directly.

  • ‘Farmers seek improved seaport facilities’

    ‘Farmers seek improved seaport facilities’

    The National President, Federation of Agricultural Commodity Associations of Nigeria (FACAN), Dr Victor Inyama has urged operators to improve facilities at the seaports.

    He said the bulk of agricultural produce are exported through the ports.

    He said the ports lack sufficient capacity and infrastructure to handle the increasing quantities of agribulk exports. There are breakdowns of facilities during the peak periods, with queues of trucks building up outside the main ports’ gates, while vessels, too, struggle to find berths, he added.

    Also, spokesman for the Cocoa Association of Nigeria, Robo Adhuze, called on the government to be serious about declining transportation infrastructure to avoid significant short- and long-term damage to the agric business sector.

    He said agro-industrialists have more reasons to lament, adding that the ports system and its logistics counterpart are letting them down. In parallel, significant efforts need to be made to finally build new railways and also to pave roads, to provide suitable connection between the production areas and the selected northeast ports, he said.