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Tag: sugar cane

  • Buhari to inaugurate sugar cane estate

    Buhari to inaugurate sugar cane estate

    President Muhammadu Buhari is billed to inaugurate the N50 billion Sunti Golden Sugar Estate in Niger State on Thursday.

    Located on the banks of River Niger in Mokwa, the estate is owned by Sunti Golden Sugar Estates (SGSE) Limited, a subsidiary of Flour Mills of Nigeria Plc.

    A statement  from the company said the sugar estate features 17,000 hectares of irrigable farmland and a sugar mill which processes 4,500 metric tonnes of sugarcane daily.

    At full capacity, the estate is expected to produce one million tonnes of sugarcane, which roughly translates to 100,000 metric tonnes of sugar yearly.

    Enclosed within a 35-kilometre dyke, the production facility area is 15,100 hectares, with a sugar cane area that features a maximum output of 10,000 hectares.

    The dyke provides flood protection from the River Niger. Over N1 billion was invested in the irrigation system to ensure efficient cultivation of sugarcane, with facilities such as drain pumps, pump stations and a power grid.

    The estate is a representation of the Federal Government’s Nigerian Sugar Master Plan (NSMP) with an ambitious backward integration programme to set Nigeria on the path of self-sufficiency in sugar production. The farm at peak production will provide direct employment for about 10,000 yearly, and will impact up to 50,000 indirectly, including 3,000 small-scale out-growers who cultivate sugarcane to feed the mill.

    According to the statement, the estate has brought infrastructure to surrounding communities, with 28 taking advantage of the new 30-kilometre road that provide a variety of access routes to indigenes. Drains, culverts and flood-protection walls have also been constructed.

    The project, the statement noted, illustrates the desire to reduce sugar importation, save billions in foreign exchange, boost local capacity and reduce unemployment by putting thousands of Nigerians to work.

    The Flour Mills Group’s mantra: “Feeding the Nation, Everyday”, is at the heart of its strategic decisions on what it produces, how and where factories are set up, the level of care that is put into products and how it interacts with host communities and the larger environment.

  • Fresh boost for sugar cane farmers

    Fresh boost for sugar cane farmers

    In an era where there is a need for inclusive growth, sugar cane farming is among the few that have contributed to the success of the rural economy. Against this backdrop, efforts are being made to revamp the sugar cane belt in Niger State with the establishment of a refinery. The aim is to boost productivity, increase farmers’ income and create jobs, DANIEL ESSIET reports.

    Sugar cane is an important crop in the North. It also remains one of the major contributors to its economy while  creating jobs for the rural youth.

       In the last three years, farmers in Niger State have been experiencing a boom in sugar cane production. This is due to the billions of naira investment in seeds, inputs and equipment for sugar cane farmers to increase production by the Federal Government and the private sector. The farmers are taking advantage of the measures.

    The Central Bank of Nigeria (CBN) funding initiatives to boost the capacity of farmers to raise cane production volumes is an example of the government’s support. The CBN has financed Sunti Sugar Golden Estate, a project consisting of 16,000 hectares sugar farm and a sugar refinery. It is owned by Flour Mills of Nigeria.

    The mill is key to the future growth of the industry as it has fulfilled the dreams of farmers and millers.

    The cane farmers can sell their produce to the mill thereby forestalling post-harvest losses while making more money. Beyond this, it will safeguard the livelihood of a large number of sugar farming households. Also the 16,000 hectares farm will create jobs.

    Such projects, stakeholders say, give farmers hope that their income will improve. One of those who see a prospect in the project is the Managing Director, Niger State Agricultural and Mechanisation Development Authority (NAMDA), Baba Kutigi.

    Kutigi said Sunti Golden Sugar Company offers farmers a ready market for their products, and in turn the company secures the raw materials needed to meet market demand.

    The arrangement, he believes, will help raise the living standards of small-scale farmers and reduce transportation costs. Besides, Kutigi said the project was supporting a small-scale out grower scheme for the community. For him, the out grower scheme is a sustainable farming model that strengthens the capabilities of the farmers.

    This is because it enhances sugar-cane out-grower farmers’ well-being by providing more opportunities to grow the product.

    The project will also increase economic activities associated with sugarcane cultivation and production and generate a vast number of jobs in support industries while enhancing commerce.

    After inspecting the project, the CBN Governor, Mr. Godwin Emefiele, said the apex bank had invested N26 billion in the factory. He reiterated the bank’s readiness to support efforts aimed at self-sufficiency in local production of goods.

    Emefiele said the CBN invested in the project to encourage import substitution and the backward integration strategy. According to him, such investments are geared towards self-sufficiency, employment and wealth creation. He noted that one of the difficulties faced by sugar cane growers is market and a processing centre to uptake harvests from farms.

    He said the estate would address that. With the challenges currently faced by the industry, the deal could not have come at a better time, Emefiele stated.

    He urged smallholder sugar cane farmers in the area to leverage on the actory to boost production, as the company would now buy their produce. He assured genuine investors of cooperation and support toward inline with the economic diversification drive of the government.

     Niger State Governor Sani Bello said the economy has been affected by the fall in oil prices, prompting the need to explore opportunities in the non-oil sector.

    One way to address this is to help farmers focus on productivity and efficiency by supporting them to build some sort of economic resilience.

    According to him, investment in sugar cane farming is vital, if the government wants to make agriculture sustainable and attractive to the next generation. The governor said the sector has a number of transformational opportunities which have remained largely untapped.

    Therefore, he said his government’s policies would support the sugar cane industry, considering its massive impact on the agro economy and associated social objectives encompassing a large percentage of the masses. This is because a wide range of industries use sugar as raw material.

    In addition to the company’s effort, Bello said the state has acquired 5,000 hectares for sugar cane farming.

    He urged the management of Sunti Farm to support the farmers to improve on farming practices and ensure better delivery processes. Bello praised the management of the CBN for providing the needed fund for the project and Flour Mills for working hard to fulfill its obligations to the host community by providing access roads, boreholes, electricity and a health facility, in addition to the engagement of over 800 construction workers.

    The Chairman, Flour Mill of Nigeria Group, Mr. John Couman-taros, expressed appreciation to the CBN for the support given to company, without which the project wouldn’t have been completed on schedule. He noted that the N45 billion sugar-refining project is expected to create over 15,000 jobs including 3,500 direct jobs, 3,000 small-scale out-grower farmers and save over $50 million in foreign exchange annually.

    Coumantaros  said Nigeria produces 1.7 million metric tons of raw sugar which is just about two per cent of her needs whereas countries, such as  Benin Republic, Senegal and Mali, produce 26 per cent, 48 per cent and 28 per cent of their sugar needs.

    As such, the planned 100,000  metric tonnes of raw sugar to be produced by the company would close the supply gap to an extent. This is in addition to the generation of 10 megawatts (mw) of electricity, animal feeds and fertiliser from sugar cane residue.

    The Group Managing Director, Flour Mills Plc, Paul Gbedebo, assured that farmers in Niger State, in particular, would no longer face the problem of searching for markets for their produce as the company would buy off everything, going forward. He said the company has significantly invested in food and agro-allied value chains to align with the government’s agricultural initiatives.

    The key areas include sugar cane, livestock feed, cassava, edible oil and rice.

  • Sourcing energy from sugar cane

    Sourcing energy from sugar cane

    Despite the Federal Government’s efforts to increase power generation, the impact has not been felt by rural farmers. To address the challenge,  private firms are exploring the possibility of converting sugar cane into electricity , DANIEL ESSIET reports.

    The  agricultural sector is undergoing a rebirth, courtesy of public-private partnership and cutting-edge technology. But, despite the government’s initiatives to develop the sector, many farmers are yet to feel the impact.The search for cheap power has prompted experts to look towards  sugar cane as a source of electricity.

    To this end, many private sector firms have begun the cultivation of sugar cane on a largescale.

    One of such outfits is Sunti Farm which is 30 kilometres west of Mokwa in Niger State. It is owned by the Golden Sugar Company Limited. The farm has a 10,000-hectare sugar cane estate which will feed its renewable energy project.

    If all goes according to plan, the company will kick-start a rebirth in the sugar industry with the conversion of sugar cane into the much-needed electricity for domestic and industrial consumers.

    The major challenge to most rural farmers in Nigeria is how to generate electricity at farm mills. Not helping the issue is the  fact that a large number of farmers are not connected  to the  national grid.

    Minister of Agriculture and  Rural Development, Dr Akinwumi Adesina, said increased  agricultural productivity, is vital for stimulating growth in other parts of the economy.

    But achieving accelerated growth requires effective power support to the millions of small farmers, many of whom are in remote areas. For this reason, he said the government would focus on pragmatic ways to  promote high-value agriculture linked to a dynamic rural farm sector.

    Ultimately, to experts, success will also depend on concerted action to confront the challenges of power supply at the farms, as  well  as technologies for  food staples production.

    To this end, experts have identified various agricultural residues within the country which can be used for electricity generation.  One is sugar cane.

    One of the promoters, is the Group Managing Director/Chief Executive Officer, Flour Mills of Nigeria Plc. Mr. Paul Gbededo, who  is  convinced about the country becoming the future  hub for sugar generated electricity on farms.

    Although the sugarcane-based power industry is booming, only a handful of companies are developing plants.

    But the crop’s real potential will rely upon the sugar processing. This is what Gbededo said  his company is set to achieve through its  subsidiary, Golden Sugar Company Limited, owners of Sunti Golden Sugar Estate Limited.

    He said the company has a 17,000 hectare Sunti farm estate.

    He said the company is developing 10,000 hectares of that into sugar cane.

    In the next two or three years, he said the company is planting the whole sugar cane segment of the farm. According to him, it would be producing about 100,000 metric tonnes of raw sugar.

    He said while the farm will produce 100,000 metric tonnes of sugar annually, it will generate 10 mega watts of electricity.

    He explained that the production  of its sugar-cane electricity, will enable the development of small and medium enterprises to support the new town of  Sunti and its burgeoning population.

    To boost the prospect of its  project, Gbadebo, said a great deal of research and development is dedicated to developing new varieties of the crops with increased sugar yields, adding that within the estate farm, the company will produce raw sugar from the farm, and then refine it  for table and industrial use.

    So far, the  company has   invested $250 million in Golden Sugar Company Limited.

    Minister of Trade and Investment, Dr Olusegun Aganga describes the project as having “significant potential.

    He said the company‘s efforts to improve infrastructure to boost  production has enhanced agricultural output, with sugar cane production growing faster than the regional average.

    Aganga said the government is encouraging local production of sugar cane to meet the nation’s sugar need and create jobs, and refocus the economy that still relies on imports.

    To achieve this, he said the government intends on implementing a full scale sugar programme to enable the nation produce over 5 million metric tonnes of sugarcane, which will far exceed the current domestic production of about 1.3 million metric per year.

    With the economic crisis occasioned by the fall in oil prices, Aganga said agriculture is one of priority sectors to sustain the economy that is why the government is pushing ahead with efforts to revive sugarcane crop to tap demand for molasses, biofuel and other derivatives.

    While reiterating the commitment of the government to reduce sugar importation, the minister said his organisation is pleased with the efforts of private sector organisations such as Flour Mills of Nigeria to establish large scale sugar farms such as Sunti, adding that the government is determined to implement the National Sugar Master Plan (NSMP), since it is a core component of the Nigeria Industrial Revolution Plan to create jobs, generate wealth and enhance economic growth.

    The minister noted that developing the sugar sector is clear, and the sugar master plan is the roadmap. In a bid to address the energy shortage affecting the country, he said the government will support projects designed to use sugarcane for bio-electricity plant and ethanol for export. According to him, the project will make a huge difference to the Sunti communities, as well as creating stable income for farmers involved in the sugar cane supply chain.

    Aganga said: “The project is in tandem with government’s efforts to revive sugarcane crop for sugar production and generate other derivatives such as  molasses, biofuel and other by-products.”

    Impressed by the investment in the farm and the construction work on the multi-billion naira sugar mill, Aganga said it was the most advanced mill in the country, evidence of government’s industrial revolution plan. The sugar mill is expected to run at full capacity on completion in the 2015/2016 cropping season.

    While reaffirming government’s commitment to reducing sugar importation, the minister said he was pleased with the efforts of the private sector organisations such as Flour Mills of Nigeria to establish large-scale sugar farms, such as Sunti. Aganga also said that the Federal Government is determined to implement the National Sugar Master Plan (NSMP), since it is a component of the Nigeria Industrial Revolution Plan, to create jobs, wealth and enhance economic growth.

    The commercial farm project, of which N16billion of the total N45billion target has been expended, covers a 16,500ha land area, expected to produce 10,000 metric tonnes of sugar annually.

    Chairman, Flour Mills of Nigeria Plc, John Coumantaros, said the need for the company, through its agro-allied division, to optimise local content food and feed production as well as support government’s Transformation Agenda led to the establishment of the estate in Niger State.

    Estate Manager, Mr. John Beverley, said various factors make Sunti unique to sugarcane production.

    The area has an established  local sugarcane industry and land suitable to grow the crop.

    According to Beverley,  the project is in the permitting stage and is expanding the amount of sugarcane being cultivated. He  expects to the  project  to take-off by 2016.

    The sugar plant would have the capacity to process  4,500 tonnes  of  cane daily and 10 megawatts of electricity. A portion of that electricity will be used to power the plant and the remaining power will be used  for  the community.

    The plant will require approximately 10,000 acres of sugarcane.  The development of additional plants is scheduled to begin as soon as the first plant is operational.

    He said his company is working closely with farmers to develop sugarcane plots to support  production. The project, according to him,   will bring a sustainable, profitable crop to the area  and produce consistent streams of revenue for the farmers. The project, Beverley, said, will  create numerous job opportunities in the region.

    Employment will  be created for  15,000 people, of  which  3,500 will  be direct employees and a further 3,000  will  be  small scale out growers.

    The sugar cane farm will provide  animal feed and fertiliser as by  products, saving the nation over $50 million yearly in foreign exchange .

    For watchers, the government is looking to sugarcane farmers to boost the country’s power generating capacity as shortages persist.

    A lot of farmers who buy into the project as they face problems disposing sugar cane waste.

    This mammoth project is a prime example of the private  sector   plan to open up the state ’s interior to economic activity, increase agricultural production, promote alternative exports to wean itself off the almost total reliance on extractive industries for foreign exchange and create employment.

    Experts said Niger  State has an excellent chance at meeting all those goals, due to several important factors including the state’ s natural attributes and its history as a major agricultural producer.

     

  • Renewal of sugar cane industry ‘ll create jobs, says Aganga

    Sugarcane production represents  a promising source of biomass and  source  of  thousands  of  jobs for Nigerians, the Minister of Trade and Investment, Dr Olusegun Aganga,  has said.

    Speaking at Sunti sugar  cane farms, Sunti, Niger State, Aganga said the government is reviving  sugarcane crop to create jobs and increase local production of sugar cane as the economy still relies on imports.

    To achieve this, he said the  government intends to implement a full scale sugar programme to enable the  nation produce over five million metric tonnes of sugarcane, which will far exceed the current domestic production of about 1.3 million metric toones per year. Besides, he said the government is to create about 200,000 jobs.

    With the economic crisis  occasioned by the fall in oil  prices, Aganga said agriculture is one of the priority sectors to sustain the  economy.

    He said that  is why the government is pushing ahead with efforts to revivesugar cane crop to tap demand for molasses, biofuel and other derivatives.

    While reiterating the commitment of the government to reduce  sugar importation, the minister said he is  pleased with the efforts of private sector organisations such as Flour Mills of Nigeria to  establish large scale sugar  farms such as Sunti, adding  that the government is determined to implement the National Sugar Master Plan (NSMP), since it is a core component of the Nigeria Industrial Revolution Plan to create jobs, generate wealth and enhance economic growth.

    The minister said developing   the sugar sector is clear, and the sugar master plan is the roadmap. In a bid to address the energy shortage affecting the country, he said the  government  will support  projects  designed  to use sugarcane for  bio-electricity plant and ethanol for export.

    According to him, the   project will make a huge difference to the Sunti communities, as well as creating stable income for farmers involved in the sugar cane supply chain.