Tag: Rice production

  • Smuggling threatens rice production sufficiency

    Smuggling threatens rice production sufficiency

    Nigeria’s bid to be self-sufficient in rice production is being threatened by smugglers, The Nation has learnt.

    Lagos and Ogun states are flooded with smuggled rice daily. From Idi-Iroko to Owode, Alapoti, Atan and Sango Ota, all in Ogun State, smugglers are using bush paths to smuggle the commodity.

    The smugglers, Idi-Iroko border sources said, are cashing in on the high price of the item, which is Nigeria’s staple food, to smuggle the item.

    Many of the smugglers, it was gathered, are smiling to the banks with their huge financial returns.

    The illicit rice business, investigation revealed, is booming because the Federal Government has discouraged rice importation through the land borders, while it is alleged that   some Customs officers are conniving with the smugglers.

    Investigation revealed that the smuggled rice is kept on top of motor cycles, passenger buses and specially refurbished vehicles heading for Lagos, Ifo and Sango area of Ogun State.

    A rice trader at the popular Lusada Market in Ado-Odo Ota area of Ogun state, who refused to give her name, narrated the reason they are dealing on imported rice from Cotonou.

    “I lost a lot of money when the vehicle bringing my rice to Lagos was impounded by Customs in April along Seme border. The period was a very bad one to me. But in June, my friend introduced me to a man who will help me in the rice business through the Ado-Odo area and I decided to try it. “My experience is that there is not much Customs attention on rice in this area, and the profit we make is higher.

    “If you use Seme axis, the highest profit anybody can make on rice is between N200 and N250 per 50kg bag, while we make between N1,000 and N1,350 on 50kg bags of rice through Lusada area,” she said.

    She said rice is a staple food in the country and its demand is so high that ‘business people’ continue to travel long distances from inland towns and risk being arrested to smuggle rice into those axis.

    Every Wednesday, Thursday and Friday, she said men and women flock to Cotonou and other neighbouring countries to buy rice and smuggle them in mostly on Sundays.

    Investigation conducted by The Nation at the week-end revealed that there are no Customs cheek-points between Agbara and Atan and from Lusada to Alapoti and Ado-Odo Ota areas of Ogun State.

    Findings also revealed that there is no effective policing of all the paths leading to the border by Customs to check the menace.

    Customs investigation also revealed that a lot needs to be done  to track down the rice smugglers and stop their illicit business by embarking on effective border patrol as the smugglers are using various vehicles to bring the items to town.

  • ‘Fed Govt plans self-sufficiency in rice production for 2018’

    ‘Fed Govt plans self-sufficiency in rice production for 2018’

    the Federal Government plans self-sufficiency in rice production for 2018, Minister for Agriculture Audu Ogbeh said yesterday.

    Speaking at the EighthTinubu Colloquium in Abuja, he said: “We intend to achieve self-sufficiency in tomato paste by the end of this year and in rice, maize and soya beans by the end of 2018 as well as wheat by 2019.”

    Ogbeh, the keynote speaker, was represented by Minister of State Agriculture Heineken Lokpobiri.

    National Leader of the All Progressives Congress (APC), Asiwaju Bola Ahmed Tinubu, said the future is bright for Nigerians with the APC government in place.

    The colloquium was held to mark his 64th birthday.

    He said the Buhari government  will return the country to the path of greatness.

    He described Buhari’s victory at the poll on March 28, last year as a birthday wish which God and the people of Nigeria granted him.

    The ex- Lagos State Governor said with the commitment of the APC government and its governors to agriculture, the nation will never go hungry.

    He said: “It is a commitment and this nation will not go hungry. Those who are thinking that our common sense revolution is not realizable should realize that they are the greedy ones. They are the ones that failed because they are always playing to the last.

    “The future is brighter, Nigeria is better, our hope is brighter and our determination is stronger. We will make this country great”.

    The APC leader who was full of appreciation to those who came for the colloquium said the promise by the President to ensure that Nigerians are able to feed themselves is yet another birthday present to him.

    He recalled how Vice President Yemi Osinbajo spearheaded the commencement of the Bola Tinubu Colloquium eight years ago and expressed appreciation to him for the efforts.

    He also expressed appreciation to many traditional rulers, including  the Oba of Lagos, the Ooni of Ife, Emirs and  other traditional rulers, for providing spiritual support for the country.

    Turning to the APC governors, he said “For what we have used this platform to do today, I want to thank all of you. Your presence here is very emotional for me. The presence of all of you energizes me to continue.

    “I want to thank our governors for their commitment to agriculture and redirecting our economy and bringing life back to Nigeria is more critical and more important to me.

    The Agriculture minister said the government is committed to improving the quality of yield by Nigerian farmers.

    He said the government plans to take over about 15 per cent of the export market in Europe with its quality fruits and vegetables.

    The Minister said the government has already developed a roadmap for the development of agriculture in the country.

    He also said the government is targeting self-sufficiency in rice and maize production by the end of 2018. Self-sufficiency in wheat production is slated for 2019.

    He said: “One of the strategies to achieving this is soil map which has been distributed to all states of the federation. It is worth noting that before now, fertilizer application has no real direction as to the end user.

    “When he assumed office, Mr. President was very equivocal in advising all Nigerians to return to the farm. It was born out of the unique sense of history and good common sense. Certainly, there was a time in Nigeria when Agriculture was the main stay of our economy. It was naturally sustaining us.

    “Regrettably, over the last 30 years, we have allowed agriculture to descend into a state of disorientation. The inappropriateness of our own choices has been steering us in the face as we grapple with the excruciating pain of economic meltdown because of our over dependence on oil.

    “This situation we could have avoided. The good news however is that we have resolved that the only good thing to do now is to get out of this situation. The hard way to restoring agriculture to its pride of place as the engine of growth is the roadmap to self-sufficiency in agriculture which we have articulated.

    Turning to the Colloquium, Ogbeh said: “The fact that the president is chairing this event underscores the importance of this colloquium as a befitting tribute to Asiwaju Bola Ahmed Tinubu, a great leader of Nigeria and a great leader of Africa. There is agriculture as a means of transformation for the promotion and sustain acne of democratic governance  in Nigeria.

    “Without controversy, Bola Tinubu is a great son of our nation who was at the forefront of the battle to rescue our nation during the darkest moments in our history.

    “He is truly the Jagaban of our time. He is a bridge builder, a dogged fighter, a strategist and a tactician per excellence. I believe Asiwaju deserves all the honour of this day as one of the Irokos of our hard-won battle.

    Kebbi State Governor Atiku Abubakar Bagudu said Nigeria can achieve self-sufficiency in food production only if the right investments aremade in agriculture so as to improve yield.

    Bagudu said global trade institutions have not been fair to developing nations like Nigeria in the promotion of their agricultural produce because of hostile policies which make it easier and more lucrative for advanced economies to trade with themselves.

    “Financiers are not interested in investing in agriculture because they don’t understand the business model of the farmers. They see farmers as people with seasonal activities and not people who have production units that exits year after year

    “Most of the intervention programmes of government, like Operation Feed the Nation, Green Revolution among others, have fallen short of their objectives by not  seeking the quantum of money required to put agriculture on a sustainable level.

    “Currently, Nigeria has over three million hectares of land for rice farming but less than five per cent is utilized for that purpose. I urge the states to increase by 30 to 40 per cent production processes toward national self-sufficiency in rice production

    “About N500 billion is required to sufficiently finance the three million hectares of rice farmland for the expected output. It is quite encouraging the stories coming from the Central Bank, Bank of Agriculture about the response from rice farmers.

    “It shows that Nigerian farmers are not looking for subsidy, what they are after is the availability input as and when they need it. That is very important in the national value chain in rice self-sufficiency.

    “Nigeria can still do better with its current insufficient rice production with her three million hectares of farmland. We can do more locally. So, I urge States to trade more with each other while the Federal government should encourage more trade with the countries in West Africa.

    “That is why Kebbi and Lagos signed an agreement on national value chain for food sufficiency. It is a fact that many countries in the sub region are import-dependent, because subsidy regime in Europe and America is limiting our capacity to export while encouraging us to import. So, Nigeria will do better to take advantage of the sub regional trade if we fix our agriculture”.

  • ‘Olam is largest investor in local rice production’

    Olam Nigeria has made substantial investment in agriculture, thus earning the status of one of the leading local rice produceras in the country, its Head, Corporate and Government Relations, Ade Adefeko, has said.

    Adeleko, who spoke at the just Kano Trade Fair, said Olam’s Nigerian rice brand – Mama’s Pride and Chef’s Choice, dominating the one day event. The brands were so well received that they sold over 125 bags at the one-day fair, he added.

    On his impression of the fair, Adefeko said: ‘We are pleased with the outcome of the fair. We call for more of such activities to help boost rice production, increase awareness and improve patronage of Nigerian brands of rice.’

    On the acceptance of his company’s brand of locally produced rice brands, Adeleke  said: ‘‘as per our brands, generally, people love Mama’s Pride because of its packaging, grain length and brightness.’’

    The organisers of the event expresed joy with the outcome of the event, particularly the active participation of local players led by Olam Nigeria. The primary organiser, represented by Team Leader, Growth and Employment in States Program, Tunde Oderinde, said ‘Olam Nigeria has reinforced its position as the biggest local rice player in the country, with an investment outlay in billions of naira as it has the most coordinated and attractive stand at the trade fair. The outcome of the fair gives hope for local rice production and packaging because there is noticeable enthusiasm both from farmers, millers and consumers.’

    Similarly, the Managing Director/CEO, Bank of Industry, Rasheed Olaoluwa who graced the event as Special Guest, observed that the quality of the fair is remarkable, given that the local rice industry is yet at a developmental stage.

    He noted that the firm commitment of conglomerates like Olam Nigeria to the development of the rice industry in Nigeria is encouraging. ‘From what Olam Nigeria demonstrated at this fair, the level and quality of investment made by the company is an indicator that Nigeria can look to the future with optimism as far as the rice industry is concerned,’ he said.

    Oderinde’s and Olaoluwa’s observations indicate that investment in the rice segment, led by Olam is not going unnoticed, while the enthusiasm that greeted the local rice brands of Olam affirmed the huge market for local rice brands if the quality is good.

    On his company’s impressive showing at the fair, Adefeko said that ‘these giant strides are possible because Olam Nigeria has made huge investments in agriculture, particularly in local rice production.

    We have a 19 billion naira 10,000 hectare farm and mechanized mill with a capacity to produce 36,000 metric tonnes of milled rice in Rukubi Nasarawa State and outgrower programme which currently employs about 3,000 farmers.’

    He assured that his company will continue to support more farmers with training, pre-finance and agri-inputs to improve their paddy yield. ‘Our target is about 16,000 farmers by 2018 so as to sustain our leadership status in the rice value chain sphere,’ Adefeko said.

    Olam Nigeria is living up to its industry leader status as it was the only company who provided free samples in zip bags and hence made it easy for consumers to see and feel the grains at the fair.

  • Stallion eyes 1.5m tonnes in rice production

    Stallion eyes 1.5m tonnes in rice production

    Stallion Group is planning  to produce 1.5 million tonnes of rice this year.

    Leveraging on the policy impetus provided by Agricultural Transformation Agenda (ATA), the   Group   said it has already increased local production to 430,000 metric tonnes per annum.

    To achieve this target, the firm said it is setting up more milling capacities and structured farming activities. The firm’s investments to boost the rice supply chain is expected to exceed N30 billion in the next few months.

    The Group is producing premium varieties of rice from local paddy being marketed by the company under the names “Royal Stallion Shinkafa” and “Super Champion’’, which are now amongst the most popular Made-in-Nigeria brands of rice.

    Stallion Group Chairman Sunil Vaswani said: “Sensing the need for local self-sufficiency and alignment with the Federal Government’s ambitions for food security, Stallion pioneered investments into backward integration, creating a fully integrated value chain. Stallion is working tirelessly to improve farm yields and bring in sustainable and scalable growth to farmers.”

    Within the last 10 years, the Group has established fully integrated agricultural operations, including world-class rice mills at strategic locations, to promote milling and paddy cultivation in the captive areas. Its activities have increased local production of paddy, thereby contributing to the nation becoming self-sufficient in rice production.

    Stallion’s efforts to increase local rice production began as early as 2007, when the associated challenges were more complex.

    The company has established several collection centres across rice producing states of Adamawa, Taraba, Benue, Niger, Jigawa, Sokoto and Kano, which will assist farmers in understanding modern rice farming techniques. Besides, it will focus on forming associations with various farmers’ cooperatives and  progressive farmers with a view to leading the nation’s  rice revolution.

    The Group said it is poised to be a leading contributor in the country’s quest for self-sufficiency in rice production.

    Its vision is to preserve and enrich rice production by ensuring seeds genetic integrity, encouraging farmers to adopt modern agricultural practices and processing technologies.

    Stallion has fully backward integrated rice value chain production programme, including procurement through collection centres, partnership with co-operatives and farmers, logistic and post-harvest services and marketing.

    Stallion’s operations also include local manufacturing facilities for packaging and distribution of various products.

     

  • Ondo to start rice production in 2015

    The Ondo State government at the weekend said it has put all necessary arrangements in place to commence production of rice in January 2015.

    Disclosing this at the end of year press briefing, the Chairman, Wealth Creation Agency (WECA), Mrs. Bolanle Olafunmiloye, said the agency in collaboration with the Ministry of Agriculture is partnering with the Malaysian Agricultural Research and Development Institute (MARDI) on the production.

    She noted that the Marditech would commence the cultivation of 500 hectare of land for the rice production at Owena Dam area in Igba-Oke, Ifedore local government area.

     

    She said this would also help in boosting the internal revenue of the state and create employment opportunity for the youths.

    Olafunmiloye further disclosed that the agency would be using part of the N2billion fund it got from the Central Bank of Nigeria (CBN) commercial agricultural credit to finance the project.

    While commending the federal government for encouraging the production of local rice, the WECA boss said the state government would do everything possible to support local producers in the state.

    Speaking on the agency’s plans for next year, she disclosed that WECA would soon embark on the rapid rehabilitation of the Ore, Auga, Isuada and Epe Agro Business Cities in order to keep in line with the vision of transforming it to international standards.

    She said: “We plan to intensify the promotion of goods and products made in the state to encourage the private sector and also organise the 2015 edition of the Made in Ondo Fair with more participation from enterprises and businesses in the state.

    “All through these activities, our profarmers and agroprenurs will be involved in extensive training and participation. Approval has already been given to engage an additional 300 young graduates in the first quarter of the year under the WECA/SURE-P GIS collaboration.”

  • ‘Nigeria can attain self-sufficiency in rice production if…’

    ‘Nigeria can attain self-sufficiency in rice production if…’

    Although the country is a major consumer and importer of rice in Africa, spending over N1bn daily or N356bn annually on rice importation, experts hold the view and very strongly too that the country has what it takes to attain self-sufficiency in rice production.

    Nigeria is the world’s second largest importer of rice behind China, with annual imports of 2.1 million metric tonnes.

    A seemingly silent revolution is taking place in Doma Council area of Nasarawa State.

    An initiative of an integrated firm, Olam Nigeria Limited, the silent revolution is in the form of an ambitious rice project, which is already changing both the economic and physical landscape of the community.

    A visit to the community shows a quick transformation of the hitherto mass land, and desert portions into cultivable area for rice production. Trucks move in and out bringing artisans, workers or merchants buying or selling items required at the farm site.

    For a first time visitor, any location in the farm appears like standing in the middle of nowhere, because the cleared land for cultivation, or already cultivated portions spread like lush ground of several kilometers seek your admiration or commendation. To say that the company in question, Olam Nigeria Limited has impacted the community in no small way is to state the obvious. And truly, it is doing so in a most profound way. In that the farming has come with a lot of benefits.

    Through an ambitious rice project covering several kilometers of hitherto forlorn land, the company has provided a means of regular income for the people, and at the same time attracted a level of development.

    Unlike in some of the surrounding communities, the average fellow you encounter in the community either has a direct connection with the company or has a relation or friend eking a living off the firm.

    But much more, the rice is such that would trigger development of monumental dimensions while playing key role in the food security agenda of the Federal Government.

    Speaking on the impact the company was making in their lives and community, Alhaji Kushunta Adi, the community leader of Ijiwo, a settlement in the area, said: “Before the coming of Olam to our community, most people in this area were idle, which is not good, but today, the story is different. In fact, at that initial time, most of excavators on the project were foreigners, but today, the company has employed many of our youths and this is helping many families here.”

    According to the community leader, what Olam is doing in their community is worthy of emulation by government at different levels and other companies which have operations in Nigeria.

    “In fact what they have done here is enormous. I believe if the Federal Government can copy them, the country would be better. If we have one or two other companies like this in Nigeria, it will be difficult for us as a country to import rice.”

    By Adi’s estimate, between 60 – 70 per cent youths were being economically empowered in the company’s operations.

    Another native, Adagoso Zakari was equally full of praise for the company. Adagoso, who hitherto had no regular means of income, said life before and after Olam could not be compared.

    He said since the company employed him as rice block manager, there has been a big improvement in his circumstances.

    Adagoso said unlike before when he had to toil on a between three and four acres of rice farm with little nothing to show for it, that Olam’s coming dramatically changed things for him, as at today, he is managing a farm of about 20 hectares.

    He said besides himself, that at least another estimated 70-80 per cent people from the community were beneficiaries of the Olam capacity building and economic empowerment programme on rice farming.

    “We have been suffering for years before Olam came. Today, I can tell you that without Olam people would not be able to do anything called farming. Before when we farmed on our own, it would yield two-three tones but today, I know the right amount of fertilizer I am supposed to apply to my farm to make it to yield.”

    Echoing similar sentiments, an elated Mr. Sunday Uloko said the company has done excellently well in the community as many natives have come to understand farming better because of the magnanimity of the company which they initially received with suspicion. “In fact, most of the people had thought that the company had come to worsen their economic woes by taking over the activity from them, but their experiences overtime proved otherwise. Instead, Olam, convinced that the agriculture sector and in particular rice farming needed better technique, took it upon itself to train the local farmers.”

    Abdul Salami from the Andoni community in the area, “many of us have come to understand farming better beyond just pouring in seeds in the soil”, he said adding that companies like Olam active in the agriculture sector should be supported.

    According to him, the Federal Government deserves commendation for its transformation agenda, of which agriculture should play a pivotal part, but added that Nigeria has huge market for rice, and that Olam has already keyed into the market, through which it is creating about 1,000 employment daily, and that more than 85 per cent of the natives are touched by the operations of the company.

    Mallam Abdulsalami Anmena, a native who works as farm officer in Olam and liaison officer between the company and the community, said the company enjoys healthy relationship with the community, adding that the latter has made huge investments in the community.

    Mr. Reji George, General Manager, Olam rice farm would commence milling of 200,000 metric tonic of paddy in Doma Council by June 1, 2014

    He stated that the company cultivated 6000 hectares of land to ensure adequate feed to feed its huge installed capacity ultra model.

    According to him, the farm on low land is being cultivated through irrigation twice in every year to boost rice production in the country.

    On the ban of rice importation, he noted that this may not be the right time to do it, despite the fact that his company’s activity would tremendously help to ameliorate the challenges faced in the country dependence on imports.

    “I believe it should be a gradual process, before you ban rice or any agricultural commodity you must have to develop the local strength of rice production.”

    He said the Federal Government is doing a lot in transforming the sector, especially against the background that other countries have achieved a reasonable level of internal dependence on rice cultivation saying there is no reason Nigerian could not do the same.

    Giving more insight on the issue of ban on rice importation, George said: “If you plan the ban of importation of rice, companies like Olam is into commercial production of rice with 6000heatares in two cycles; making it 12,000 hectares that would definitely help bridge the demand and supply gap, and with support from other companies, in addition to the role government is playing, in few years time we would be able to bridge the demand and supply gap and we would be able to be self sufficient in rice production.”

    He hinted that more than 1000 people are employed on the farm on daily basis and more than 90 percent of them are indigenes of the community.

    He said when the project is completed they intend to mill 75,000mt of paddy rice and they have commissioned 3000 out growers farmers within and outside Nassarawa state to produce 20,000 of paddy rice by May 15.

    “The tractors were operated by Malawian at first but now we have trained the indigenes currently operating at by the machine, and we can fully say now that most of our manpower is sourced within the local community.”

    Echoing similar sentiments, the Chairman of Rice Processors of Nigeria, Mr. Mohammed Abubakar, said the volume of locally processed rice as of last year stood at 750,000 metric tonnes while the target was one million to 1.5 million metric tonnes.

    Despite the efforts at hitting the target and all the policies that have gone into making it a reality, locally made rice has remained almost unavailable in the local markets where smuggled variety holds sway.

    “But there is disconnection between the processors and the market. It is part of what will explain why many consumers are not able to lay their hands on these local varieties. Government is trying to link them up with these producers so that they can buy from them rather than import paddy rice for processing.”

    The president of Rice Millers, Importers and Distributors Association of Nigeria, Mr. Tunji Owoeye, said eliminating smuggling completely would facilitate both the backward integration policy as well as the agricultural transformation agenda of the Federal Government.

    He also commended the National Assembly for their efforts at trying to bring the issues in the sector, especially tariff, under control.

    Owoeye said the government’s heeding the association’s call would check the influx of smuggled rice into the country.

  • CBN governor seeks investment in rice production

    CBN governor seeks investment in rice production

    The Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi, has advised that the N365 billion set aside for rice importation annually should be invested in massive rice production.

    Sanusi made the remark at a lecture titled: “Exploring Central Bank of Nigeria’s special intervention in agriculture for the transformation of Nupeland.”

    The News Agency of Nigeria (NAN) reports that the lecture was held at the IBB University in Lapai, Niger to mark the Nupe Day celebrations on Friday.

    The governor, who was represented by the bank’s Director of Development Financing, Mr. Paul Nduka, decried low funding of the agricultural sector in the country.

    He said there were lots of funding packages initiated by the bank to encourage agriculture, saying the low budgetary allocation for agriculture was not good enough.

    Sanusi said gross under-funding and low budgeting for the agric sector was contrary to the Maputo declaration which set 10 per cent of budget for agric sector.

    “Gross under-funding has also been the bane of the agricultural sector and posed a major challenge.

    “The allocation to the sector of less than four percent of the federal budget since 2006 is not appropriate.

    “It is contrary to the 2003 African Union (AU) Maputo Declaration which directed member-countries to increase investment in the agricultural sector to at least 10 per cent of the national budget,’’ he said.