The Nation Newspaper

Tag: production

  • Cocoa production to rise

    Nigeria’s cocoa mid-crop is taking longer to complete and boosting prospects for production from the world’s fourth-largest grower of the beans.

    The smaller of two annual harvests is still progressing with few signs of damage from disease or bad weather, said Wale Owofemi of Olatunde International Ltd., a cocoa buying company based in Akure. The mid-crop usually ends in June with the larger main crop starting in October.

    Nigeria’s production for 2013-14 will grow to 300,000 metric tons from 295,000 tons a year earlier, according to the Cocoa Association of Nigeria, which groups farmers, traders and processors.

    Cocoa exports in May jumped 38 percent to 4,461 tons from the previous month as favorable weather bolstered crop performance, according to the Federal Produce Inspective Service. The mid-crop will climb to 66,000 tons from 35,000 tons, the Akure-based Cocoa Development Intiative, a non-government organisation that provides advice to farmers.

    Rain is forecast for this month in cocoa growing areas in Nigeria followed by less moisture and sun next month that will benefit drying beans, Andrew Oniarah of the Meteorological Office in Lagos said in a phone interview.

    Ivory Coast is the biggest cocoa grower, followed by Ghana and Indonesia, according to the London-based International Cocoa Organisation.

  • GES’ll boost fish production, says UAC boss

    The Federal Government’s aquaculture Growth Enhancement Support Scheme (GES) can allieviate food shortages and increase fish production, the Group Managing Director/Chief Executive Officer(CEO) of UAC Nigeria Plc, Mr Larry Ettah, has said

    He said though the scheme is commendable, the government should put in place policy incentives to boost local production of fish feed.

    He spoke at the endorsement ceremony of Grand Cereal’s ‘Vital fish feed’ by the Catfish Farmers Association of Nigeria (CAFAN) in Lagos.

    Ettah said investment in aquaculture, if well harnessed, has the potential to reduce the fish supply deficit estimated at 1.9 million metric tonnes per year, which makes the country spends N125 billion per year on fish importation.

    He said: “This potential cannot and will not be realised without a strong and vibrant local fish feed industry,which Vital fish feed wants to address, as the imported fish feed brands entering the country are not only expensive,lack freshness due to number of days spent on sea, but also a huge drain on the country’s scarce foreign exchange and a leakage in the aquaculture value chain.”

    Ettah, who was represented by the Director, Corporate Affairs, Mr G. Dada, said the endorsement by the association is a culmination of rigorous technical and laboratory analyses carried out by CAFAN on Vital Fish feed as well as the experential testimonies of fish farmers across the country.

    The National President, CAFAN, Chief Tayo Akingbolagun, said Grand Cereal limited’s Vital Fish feed, met the criteria of the association, as testing had been on since 2012, when the company approached it for the endorsement.

    He advocated more local fish feed company, saying the opportunities in the industry were enormous as the country’s fisheries resources is estimated at four million metric tons per year and if properly harnessed, is capable of meeting the local fish demand and generating surplus for export.

    Restating their level of preparedness to be the country’s leading local fish feed manufacturer, the Managing Director, Grand Cereals limited, Mr Layi Oyatoki, said the 3,000 metric tonne per year capacity fish feed plant set up in Jos, Plateau State in 2007, has grown to 30,000 metric tonnes per annum as a result of investments.

    Oyatoki said: “The endorsement will not make the company complacent but more determined to grow the fisheries industry as the dream is to see a day when there will be no need to import a single bag of fish feed into the country”.Grand Cereal is a subsidiary of UAC Nigeria Plc.”

  • Japan spends $2m on rice production

    Japan spends $2m on rice production

    Chief  Representative, Japan International Cooperation Agenc, Mr Tetsuo Seki  said his  agency  spends $2million annually  to  support Nigeria’s  effort to  double  rice production and help alleviate poverty.

    Speaking with The Nation after the kick off of rice seeds distribution to vulnerable farmers  in Benue  and Nasarawa   states, in Lafia, Seki said  JICA  was  particularly interested in  transferring the expertise gained during his country’s ‘green revolution’ to  Nigerian farmers.

    He  said the Japan-funded Emergency project addresses  critical needs in rice seed and data, adding  that Japan is providing significant support to provide enhanced access to quality seed of improved rice varieties

    He  said  his  agency is  collaborating  with the  Federal Ministry of Agriculture and Rural Development and   the National Cereals Research Institute (NCRI), Badeggi, to train  Nigerians  on rice processing and packaging. The  training   is  to ensure self-sufficiency in rice production in the country.

    He  said  JICA support   include rice milling machines, rice pre-cleaners, rapid steam par boilers, destoners, probe moisture metres and bag sewing machines.

    The Permanent Secretary of Nigeria’s Ministry of Agriculture and Rural Development (MARD) said the government is aiming to increase paddy rice production to about 13.27 million tons by 2018 under the Coalition for African Rice Development (CARD) initiative, and an improved rice seed sector is important to meet the goal.

    CARD is collaboration among the  JICA, Growing Africa’s Agriculture (AGRA) and the New Partnership for Africa’s Development (NEPAD).

    The pilot phase of the initiative involves identification of strategies to improve rice seed supply. The Technical Coordinator of CARD Secretariat said  a stable and timely supply of quality seeds is important for increasing rice production and productivity.

    Most of the CARD members consider seed sector as one of the priorities to be tackled, he adds.

    Nigeria is expected to pass the National Agricultural Seed Law (NASL), which will include points such as upgrading of available seed testing laboratories to international standards, consistency in agricultural policies, increase in the annual budget of seeds, and timely release of budgetary provisions.

    Nigeria is aiming self-sufficiency in rice production by 2015. However, this could be a challenge for a country that imports almost 3 million tons of rice per year.

    According to the USDA, Nigeria’s milled rice production is estimated at 2.8 million tons (about 4.4 million tons of paddy) in MY 2013-14, less than half of an estimated domestic consumption of around six million tons.

  • Stolen crude, deferred production hit 250,000bpd

    Stolen crude, deferred production hit 250,000bpd

    Oil firms have continued to cry out over the impact of insecurity and oil theft. They say stolen oil and deferred production have reached an estimated 250,000 barrels per day (bpd). Deferred gas production runs into hundreds of millions of cubic feet per day.

    The Managing Director, Shell Nigeria Exploration and Production Company (SNEPCO), Mr. Chike Onyejekwe, said non-payment of counterpart funding by the government in oil and gas joint venture operations, among others, is another challenge facing operators.

    He said the impact of the loss of oil production alone translates into about $9 billion revenue loss yearly, and that this has significantly reduced the funds available for distribution to the various tiers of government through the federation account.

    “The result of this is missed opportunities to develop essential services that positively impact the lives of Nigerians. Additionally, when one considers the huge oil revenue loss and its knock-on effects, coupled with impact of gas losses and associated power shortages, the overall impact is enormous.

    “This state of affairs, if allowed to continue, will not only stifle growth in the oil and gas sector but will also undoubtedly thwart Nigeria’s efforts to achieve its 20:2020 vision,” he said.

    On funding of oil and gas joint venture operations, Onyejekwe said the perennial joint venture funding challenges, and the financing challenges faced by indigenous operators and service companies, is another important industry specific issue that needs to be addressed for sustainable development of the oil and gas sector.

    He said: “Due to competing national needs, it has become difficult for the government to meet its required funding for joint venture operations.

    “Although the industry has typically used alternative mechanisms to address this problem, these are short term in nature, costly and time consuming to negotiate and therefore, not sustainable. These funding constraints should be addressed so that the industry can achieve its full potential.”

    He explained that financing is not only a problem faced by the joint ventures, but also a major challenge for indigenous operators and service companies. He noted that the limited access to finance restricts their ability to achieve the aspiration to increase indigenous participation in Nigeria’s oil and gas industry.

    He said some international oil companies (IOCs) have initiated contractor financing schemes to help promote the growth of indigenous service providers and increase their ability to support the industry. While this is a commendable initiative, a more holistic strategy is urgently required to energise full participation of all categories of indigenous companies, he added.

    Onyejekwe spoke on behalf of the Oil Producers Trade Section (OPTS), an arm of the Lagos Chamber of Commerce and Industry (LCCI), which has about 24 oil firm-member including the IOCs and indigenous operators.

    He noted that all over the world, governments seeking to attract investment need to ensure that adequate security measures are in place for safe and stable operations, adding that Nigeria faces security challenges, including kidnappings, piracy in the Gulf of Guinea, and chronic vandalism of oil and gas facilities. The consequence of these can be seen in high cost of doing business, decline in oil production and exports and inadequate supply of gas to meet Nigeria’s power needs.

    He also drew government’s attention to the need for efficient and effective regulatory institutions, stable policies and implementation plan.

     

  • Shell cites insecurity for loss in earnings, production

    Shell cites insecurity for loss in earnings, production

    Oil giant Shell Petroleum Development Company (SPDC) has explained that it suffered a loss last year because of insecurity in the Nigeria Delta.

    In its 2013 report, the Royal Dutch firm claimed that its upstream earnings and oil production as well as liquefied natural gas (LNG) equity sales volumes dropped following the worsening operating environment in Nigeria. It said production dropped in 2013 to 3,199,000 barrels equivalent per day (boe/d) from 3,262,000 (boe/d) in 2012.

    It said: “Compared with 2012, upstream earnings excluding identified items reflected higher exploration expenses, increased operating expenses, higher depreciation as well as lower liquids and LNG realisations. Earnings were also impacted by the deteriorated operating environment in Nigeria and the impact of the weakening Australian dollar on a deferred tax liability. This was partly offset by the contribution of Pearl gas-to-liquid (GTL), and higher gas realisations in the Americas.

    “Global liquids realisations were six per cent lower than in 2012. In Canada, synthetic crude oil realisations were seven per cent higher than in 2012. Global natural gas realisations were six per cent higher than in 2012, with a 27 per cent increase in the Americas and a three per cent increase outside the Americas.”

    Thefirm added: “2013 production was 3,199,000 barrels of oil equivalent per day (boe/d) compared with 3,262,000 (boe/d) in 2012. Liquids production was down six per cent and natural gas production increased by two per cent compared with 2012. The deteriorated operating environment in Nigeria impacted production volumes by some 50 thousand boe/d compared with 2012.

    “Excluding the impact of divestments, production sharing contract (PSC) price effects and the deteriorated operating environment in Nigeria, production volumes in 2013 were in line with 2012. Production volumes were impacted by higher maintenance and asset replacement activities.

    “New field start-ups and the continuing ramp-up of existing fields, in particular Pearl GTL in Qatar, contributed some 170 thousand boe/d to production in 2013.

    “Equity LNG sales volumes of 19.64 million tonnes were three per cent lower than in 2012, mainly reflecting lower volumes from Nigeria LNG due to reduced feedgas supply as a result of the deteriorated operating environment in Nigeria. Excluding the impact of the challenging operating environment in Nigeria, equity LNG sales volumes were in line with 2012”

    According to the report, the full year upstream earnings excluding identified items were $15,117 million compared with $20,107 million in 2012 reflecting a decline of $4,990 million. Identified items were a net charge of $2,479 million, compared with a net gain of $2,137 million in 2012, it added.

    The report showed that upstream earnings excluding identified items were $2,477 million compared with $4,401 million a year ago. Identified items were a net charge of $631 million, compared with a net gain of $1,801 million in the fourth quarter 2012.

     

  • Farmers lament high cost of production

    The high prices of farming input are negatively affecting the capacity of small farmers to prepare adequately for the cropping season.

    The Programme Coorodinator, Farmers Development Union (FADU), Mr Victor Olowe, told The Nation that input financing has become a problem yearly, as the government’s efforts have failed to address the issue even with the promise of subsiding farmers costs by 50 per cent.

    High transportation costs and market access are two key issues faced by vegetable and root crop farmers. While many farmers were productive and harvested their produce in commercial quantities, the unavailability of markets was a big drawback.

    Another challenge was the high cost of transportation of having to spend at least two to three days in urban areas waiting for their produce to be sold and in the process, some of the ripe tomatos get spoilt.

    He said the food system is highly fuel and transport dependent. This makes the production system less secure and food less affordable.

    Meanwhile, many poor farmers who cannot afford machinery, fuels and commercial farm inputs find themselves at a disadvantage in the food economy.

    As a result, thousands of farmers suffer great losses.

    Olowe said farmers have to slash labour costs dramatically to have any chance of saving operations.

    He said labour costs was affecting farming operations nationwide.

    Early this year, fish farmers decried the continuous increase in cost of fish feeds in the market while the market price of fish falls yearly, leading to exit of many fish farms.

    According to them, the dependence on imported feeds has stimulated wide price fluctuation, leading to price inflation of feedstuff.

    At present, a bag of Coppen feeds, an imported feed, costs between N4,000 and N5,200 per bag as compared to the price of a live fish, sold for about N480.

    The government only regulates the commodity markets through import controls and price support through subsidies or direct government purchases and other policy instruments designed to support the feed manufacturing industry.

    Under the Industrial Development (Income Tax Relief) Act, the manufacture of animal feeds was placed on the list of pioneer industries; this ensures a five-year tax holiday to new feed millers entering the industry and aimed at stimulating investment in the animal feed mill industry.

    Prices are fairly consistent with product quality and for some items pegged to those specifications that are most likely to vary, for instance the moisture levels for grains or crude protein levels for fish meals.

    The larger feed mills maintain laboratories that check raw material quality and monitor the feed manufacturing process, to help maintain the quality of feedstuff.

    Importation of feeds, according to fish farmers, is the major cause of the increasing price of fish feeds in the market, whereas importers of feeds attribute the price increase to the corrupt nature of law enforcement agents.

    President, Lagos State Catfish Association of Nigeria, Rotimi Omodehin, said the high cost of feeds have hindered many farming business and closed many farming enterprises.

    He urged the government to invest in animal feeds to help improve the productivity level of farmers.

    “Building of feeds mill will help the farmers, and farmers are willing to patronise government feeds because individual retailer’s price is killing the farmers,” he said.

    He reiterated that subsidy in agriculture is very important and removal by the government is to the detriment of the average farmer.

    A livestock farmer, Temitope Odetola, said the government had neglected livestock farming and little or no funds were made available for the farmers.

    He added that the small-scale farmers find it hard to get capital and bank loan is out-of-reach for them.

  • Investing in soap production

    Soap, be it antiseptic, toilet or ordinary is a good business. Great potential exist for any investor to make money. The major raw materials required for production include caustic soda, sodium silicate, soda ash, PKO or red palm oil, perfume and colorant. These can be sourced from the local market and exist in abundance and at all seasons. Equipment needed include industrial mixer, sieving machine, weighing scale, measurement utensil and other auxiliaries. The technology for soap production is so simple that a primary knowledge of simple arithmetic would put a promoter through.

    To begin, one needs a certain quantity of caustic soda and other chemicals mixed properly. Added to this, one has to dilute a percentage of perfume to deodorised the odour of the soap. Deodorant and other ingredients must be added (as percentage) to the finished mixture to produce an antiseptic soap.Those who can afford engage an industrial chemist. This will help the business to produce the best quality soap, conforming to international standards. This stands out the product from the poorly produced soaps now flooding the market. A well-prepared soap must be void of palm oil odour, sanities smell, shrinking water shedding, and white substance coverage. It is only on this condition that export sales can be guaranteed.

    For infrastructure, a three-bed room flat would be ideal for a start. The site must have water, electricity and good access road. The capital outlay for soap production is very low. For the project under consideration, N450,000 will be enough for a start. This amount can be scaled down or increased depending on the financial ability of the promoter. Potential investors in need of capital for implementation of this or any of our listed small-scale projects may get in touch for assistance.

    A small scale project will cost between N450,000 and N1 million. This amount can be scaled down or increased depending on the financial strength of the promoter. The market includes distributors who are dealers on soap, supermarkets, factories, hotels, schools and the general public.

    On the international scene, the Economic Community of West African States(ECOWAS) sub-region, central and East Africa Countries are potential/ready markets. Address of established export markets for these products are obtainable on request. To capture and maintain a fair share of the market, the company must ensure that its product is of high quality. Furthermore, the use of effective pricing, wide distributorship, constant stock and aggressive salesmen are encouraged.

    A production capacity of 300 kilogrammes of solid or 2,000 litres liquid soap per day is possible for the project under consideration. This will yield a minimum turnover of N6.5 million per year out of which an after tax profit of 20 per cent N1.3 million is realisable.

    For more details contact: krisedbrilliant@yahoo.com or call 08023381900.

     

  • FAO consultant calls for new strategy to boost food production

    AN agricultural expert and consultant to Food And Agricultural Organisation(FAO),Professor Julius Olaifa,has warned that unless both the Federal and State Governments embark on inward-looking strategy through the resuscitation of some native agricultural technologies,the country is bound to experience food crisis in the foreseable future.

    Speaking at a workshop in Ogbomoso, Olaifa recalled that part of the country’s inheritance was communal labour in which things were done in common. He stated that the system was not only cost effective but highly productive, while lamenting that the system has not been improved upon over the years.

    He said, “These days, farmers now use migrant labour to farm, which is highly exploitative. Most farmers are now hungry and do not have enough food to eat, as most of the foods that can sustain them are no longer planted.”

    Olaifa, whose lecture was titled ‘Toward sustainable agriculture in the millienium,’ lamented that most of the native technologies for soil fertility have been neglected, pointing out that in the past, farmers used to practice fallow system, which is no longer in existence.

    According to him, “In the name of modern technology, one piece of land is now used repeatedly with farmers depending on fertilizer to grow their crops.The results is increasing poorer yields, soil acidity, which the local people have no technology to ameliorate.”

    Olaifa, who also spoke on the neglect of fixed farming, noted that most farmers grow crops and do not keep livestock.

    The agricultural expert, a renowned toxicologist with the Ladoke Akintola University of Technology, also spoke on native poultry which he regretted is no longer visible.

    “The researchers/scientists are only concerned about imported poultry which must be kept under maximum nutrition, maximum medication and maximum care.Whereas the native poultry can be kept under minimal nutrition, minimum or no medication and minimum care.Why didn’t the Avian Influenza affect our local chickens,”he asked.

    On pest control, Olaifa asserted with dismay how the country currently depends on imported chemicals, which he said are expensive and poisonous to farmers and consumers.

    He added, “It sounds incredible but real to say that most of the so-called fresh fishes being sold along the highways are killed by a chemical known as Gamalin 20 only for the consumers to discover later that they have cancer.”

     

  • Hard drug production suspects reject NDLEA’s interpreter

    Hard drug production suspects reject NDLEA’s interpreter

    The arraignment of three Bolivians and two Nigerians charged with illegal production of Methamphetamine was stalled yesterday after the foreigners rejected an interpreter brought by the National Drug Law Enforcement Agency (NDLEA).

    They were charged at the Federal High Court, Lagos, before Justice Ibrahim Buba.

    The judge fixed October 16 for their arraignment and nine days for trial.

    Methamphetamine is a hard drug said to be stronger than cocaine, heroine and LSD.

    The Bolivians are Rueben Ticono Jorge, Yhugo Chavaez Moreno and Yerko Artunduago Dorado.

    The Nigerians are Basil Ikechukwu Uzoka and Uba Ubachukwu Collins.

    Their arraignment was stalled due to an objection raised by their lawyer, Benson Ndakara, against an interpreter brought by the NDLEA.

    Ndakara said his clients were not comfortable with NDLEA’s interpreter.

    He pleaded that the matter be adjourned to enable the foreigners look for an interpreter.

  • Ekiti begins production of organic manure

    The Ekiti State Waste Management Authority (EKWMA) has started producing organic manure for farmers and other industrial use, under the state government’s Waste to Wealth programme.

    Governor Kayode Fayemi announced this yesterday during the celebration of the World Environment Day at the Adetiloye Hall in Ado-Ekiti, the state capital.

    He said his administration is determined to turn waste to wealth through the engineering management of dump sites.

    Fayemi said a nylon recycling plant has begun operation on a commercial level.

    Speaking on the theme of the programme: “Think, Eat and Save”, the governor said it was high time people started moderating their food consumption and cultivate the habit of food preservation.

    He said food production can only thrive in a situation where there is preservation to avoid wastage, which is predominant in our society.

    Fayemi said: “The United Nations (US) recently confirmed that over 1.3 billion tonnes of food are wasted yearly due to lack of preservation and this has to stop.

    “Due to the inherent wastages, one in every seven people are said to be hungry, despite the huge production level, while an alarming number of infants die daily due to hunger. This is unfortunate.”

    To ensure food preservation, he said the state government partnered the Federal Government to build a silo on the Ijan road, adding that his administration has built cold rooms in some local governments.

    Urging the people to imbibe the habit of farming, either on commercial or subsistence level, Fayemi said the government would assist farmers.

    He also urged the people to preserve the forest.

    The Commissioner for Environment, Dr. Eniola Ajayi, said the governor was determined to sustain a green environment and tackle environmental challenges.

    He said the administration has just concluded advocacy meetings on Operation Klean Ekiti (OKE).

    Ajayi said a major outcome of the meetings was the decision of market women to have a weekly environmental sanitation day.

    The Guest Speaker, a renowned environmentalist, Dr. Nnimmo Bassey, identified land grabbing and poor rural infrastructure, among others, as factors responsible for food loss in Nigeria, adding that secure land tenure was important for food security.

    Bassey said strong rural economies would reduce poverty.

    The governor’s wife, Erelu Bisi and House of Assembly Speaker Adewale Omirin were decorated as Environmental Ambassadors at the event.