Tag: wheat

  • Olam invests $275m in wheat, pasta milling

    Olam Nigeria has announced plans to produce wheat and pasta in Nigeria with an investment about $275 million.

    The company’s Singapore-based holding company, Olam International Limited has acquired Amber Foods Limited, which through its 100 per cent owned subsidiary, Quintessential Foods Nigeria Limited, owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria, for a total enterprise value of $275 million.

    According to the firm, the new enterprise is estimated at $275 million and hopes to leverage on BUA Group, a diversified foods and infrastructure business group in Nigerian, to actualise the ambition.

    The group is among the top five wheat millers in the country with wheat milling and pasta manufacturing capacities of 3,760 and 700 metric tonnes per day (TPD) respectively.

    The assets to be acquired include two wheat mills and a pasta manufacturing facility in Lagos, a mill in Kano, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt.

    The company said the wheat milling sector in sub-Saharan Africa has been an area of investment focus for Olam since 2010 when it acquired Crown Flour Mills (CFM) in Nigeria.

    Since then, Olam has expanded Crown Flour Mills capacity and set up milling operations in Ghana, Senegal and Cameroon.

    The acquisition is expected to strengthen Crown Flour Mill’s position as the number two wheat miller by sales volume and make it a leading pasta player in Nigeria.

    Following the acquisition, Crow Flour Mill’s total wheat milling capacity in the country is expected to increase from its current 2,380 TPD to 6,140 TPD once the facilities in Port Harcourt are completed in June 2016, the company said.

    Speaking on the development, Country Head, Olam Nigeria, Mukul Mathur, said: “We are confident about the growth prospects in Nigeria, so expanding our participation here is a logical step to capitalise on the opportunity. Our value-added export business in the country puts us in a strong position to generate the much required foreign exchange and actively support the produce-add-value-export (PAVE) initiative of the Federal Government of Nigeria.”

  • Nigeria spends N10tr on rice, sugar, wheat since 2005

    The Federal Government yesterday said the country has spent over N10 trillion on the importation of rice, sugar, wheat and fish since 2005.

    The government said the figure indicated that the country spends over N1 trillion year importing the food items.

    The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Mr. Sonny Echono, said  Nigeria’s food import bill is growing at an unsustainable rate of 11 per cent, while the country continued to rely on the importation of food from the global market.

    Echono spoke during a two-day workshop on Food Crisis Prevention and Management Charter held at the headquarters of the Federal Ministry of Agriculture and Rural Development in Abuja yesterday.

    He added that import dependency was hurting Nigeria farmers, displacing local production and creating  unemployment.

    According to him, Nigeria’s unemployment rate is spiralling, driven by the wave of four million young people entering the workforce every year with only a small fraction able to find employment.

    “Nigeria became a net importer of food and major importer of wheat, rice, sugar and fish. Importation of these four commodities accounts for over N1trillion in foreign exchange every year since 2005. The Central Bank of Nigeria (CBN) showed that Nigeria is the world’s largest importer of United States hard red and white winter wheat with an annual food import of N635billion.

    “It is also the second largest importer of rice (N700billion last year), sugar (N217billion) and fish (N97billion). Nigeria’s food imports are growing at an unsustainable rate of 11 per cent per annum while relying on the import of expensive food on global markets fuels domestic inflation,” he said, lamenting that Nigeria  imports what it can produce in abundance.

    According to him,  import-dependency is hurting local  farmers, displacing local production and creating job loss.

    Echono, who was represented by the Director of Agriculture, Mr. Damilola Eniayeju, explained that Nigeria had vast arable land for cultivation, adding that this must be harnessed by stakeholders in order to effectively prevent food crisis and reduce import to its barest minimum.

    He noted that the country has about 174 million people to feed daily as well as its neighbours, adding that it was time to start thinking of massive agricultural production for export.

    “Nigeria has huge agricultural potential, with over 84 million hectares of arable land, of which only 40 per cent is cultivated. A population of over 167 million making it Africa’s largest market; and 230 billion cubic meters of water, making it one of the richest sources for agricultural growth in the world.

    “Agriculture contributes to rural people’s livelihoods by providing them with food and income. In addition, agricultural exports have potential to contribute to the national economy through generating foreign exchange and improving the balance of payments.

    “The fact that the bread basket region–Northcentral part of Nigeria, has the lowest unemployment rate (nine per cent) in the country suggests that increasing investment in agricukture is a frontal attack on the unemployment challenge,” Echono added.

  • Addressing shortage of wheat supply

    Addressing shortage of wheat supply

    Consumption of wheat has increased over the years, with population growth. It has become one of the main diets in most homes and a major raw material for industry. But the challenge is its inadequate supply. This is attributed to lack of government’s support, inability of local farmers to meet demand and millers’ demand for higher imported grade, DANIEL ESSIET reports.

    Wheat has become one of the common cereals in Nigeria. It competes with staple foods, such as maize, cassava, millet and plantain. In addition, the increasing number of millers, fast – food restaurants and vendors in major towns has increased the demand for wheat flour.

    Sadly, only 20 per cent of the grade used in most of the bakeries and by major millers is obtained locally. The remaining 80 per cent is  imported. While wheat consumption is increasing following changing consumer preferences, the sustainability of supply has not been addressed.

    Stakeholders say the situation requires that government work to reduce reliance on imports, thereby improving food security and conserving foreign exchange.

    Chairman, Wheat Farmers Association, Sokoto State, Mohammed Mahe Marafa, said policy summersault has affected wheat production.

    For more than 30 years, Marafa, has been farming wheat in Sokoto. His lush wheat land stretches far and yields in huge volume.

    There are many such wheat farms along the Sokoto and Kebbi axis.

    According to him, Goronyo, Illela, Gwadabawa, Wamako, Yabo, Wurno, SabonBirni, Kebbe, Shagari and Gada are the local government areas that produce wheat in the state. Years back, he said  farmers would produce more than 30,000 metric tonnes of wheat in three months. But the story has since changed because  they   used  to get  government’s support.  “We produce, the government buys and gives us money but later, the government withdrew in 1985 and the situation has remained so till date,” he lamented.

    Last year, however, the Federal Government sent an improved wheat variety to the farmers which is said to have capacity to produce between 15 and 20 bags of wheat in three months.

    He said:  “They gave us one bag each and two bags of fertilisers. Many farmers were afraid to farm because of the bad experience they had in the past hence did not farm. I had to buy 11 bags from the farmers and at the end of the year I produced 300 bags after the March harvest.

    “The most disheartening aspect of the whole thing was that the Federal Government that gave us the variety never showed up to buy the harvest. From the month of March, we kept waiting and waiting and up to November, another planting season without a trace of the government.“

    The Federal Government finally came and bought it at the rate of N13, 000 per 25 kg, while Kebbi State government bought at N25, 000 per 25kg from the farmers. But this was rather too late a gesture.

    As the season for wheat planting  wound down early this year, farmers grew worried.

    More farmers had not planted the normal amount of seed, because they had no guarantees that the government  would buy their crop as it normally does. Marafa,  lamented how tough it has become.

    He said  if the farmers get the necessary support, each member can produce more than 100 metric tonnes of wheat in Sokoto State in three months.

    He added: ”I had a link with flours mills around the country, such  as  Flour Mills of Nigeria, Bendel Mills, Zamfara Mills and there are rich people who also come to buy on behalf of them. But sadly, these companies have also withdrawn leaving us with no market.”

    What  were  the reasons for their withdrawal?  He  said they got better ones from abroad.

    Does it mean their seedlings are of low quality?

    He  said: “ No, it is not. Here in Goronyo where I am living we have the second best wheat variety in the whole world. It is only that of Canada that is ahead of ours. Our variety is JaAlkama the red one and other varieties that have high yields.”

    According to him, Sokoto farmers produce   second best wheat in the world. “All we need is encouragement from the government and wheat users,” he said.

    To make amendments, he said his association is visiting some of the flour mills to chart a new course. “We intend to pick representatives to go and meet them and discuss  how best we can help ourselves. We gave samples of wheat to a member who has business interest in Lagos to open discussion with a number of flour mills there and if they need it we are ever ready to produce for them. We are waiting for the result,” he added.

    For industry  watchers, while the local farmers are making efforts, there is a huge gap between what Nigeria needs and what it is producing now.  In the analysis of climatic, soil and economic data, it is very difficult to grow wheat. While the  country has a rich agricultural land and climate, it is not well enough for inland cultivation of the cereal. This is because the cereal grows best in mild climate. Climates that are too hot or too cold could ruin development of the crop.

    The north generates very productive wheat yields, but relies on irrigation. The  growing  area covers  the  Sudan/Sahelian zones of Borno, Yobe, Bauchi, Jigawa, Kano, Zamfara, Katsina, Sokoto, Kebbi and Adamawa states.Commercial wheat production is possible through the use of expensive irrigation.  There is a growing concern about untimely rain and hail in the hitting wheat cultivation.

    A professor of Soil Science, Department of Soil Science and Agricultural Engineering, Usmanu Danfodiyo University, Sokoto,   Sumaila Sani Noma, said wheat is no longer a common crop in Sokoto State. For this reason,  he    said  farmers have now shifted to irrigated rice instead.

    The reason largely is the lack of market and heavy  importation  that  is  driving  local production into extinction.

    According to him, millers and bakers prefer  to buy  imported wheat because  it is cheaper and this  leaves  local farmers without a market.

    Another concern he expressed  was the limited planting period.

    His words: “The only period you can grow wheat is usually from November to late January or late February before the hot season starts. Any other planting beyond this will make yield reduction above 50 per cent sometimes. This is because the time frame for which you can grow wheat is very short.”

    With appropriate measures and marketing, he  said  it is possible that people can make profit in wheat farming in Sokoto.

    As wheat farmers decry lack of assistance from the government, Noma said: “People have shifted ground to irrigate rice and I think they are getting a lot from that. It will take time to convince people to go back to wheat because of the way they suffered from it.”

    In the face of low supply, Executive Director, Lake Chad Research Institute (LCRI), Dr. Gbenga  Olabanji said there was  no need to ban wheat importation.

    His words: “ No! wheat cannot be banned; there is no basis for that. There is a treaty signed on liberalisation of trade and there cannot be the banning of wheat. There should be gestation period for wheat production and development. The world is competitive and Nigeria should compete; we have what it takes to compete and Nigeria’s wheat is as good if not better than imported wheat.  Nutritionally, there is no way to compare wheat that has been stored for many years to local freshly grown wheat.

    “Remember, we are talking about food and nutrition security; food has to contain all the nutrients in their right strength. That is why the people in the village, despite their poverty, look strong and healthy – the same go for the old ones who are still working in farms.

    “We are not advocates of wheat banning, but in a few years time, even our millers will realise that our locally grown wheat is better and will key into it.”

    Right now, he said the cost of local wheat is higher than imported ones, adding that by the time the farmers are able to produce enough wheat in the country, the price will come down. In the interest of the millers, he  said  there is plan to give states the preferred variety to produce so there will  be  sufficient quantities for industries.

    The Managing Director, Chad Basin Development Authority, Garba Abba, said wheat is better grown in cold weather in Europe, Canada, United States and  Asia.

    “For us in the Chad Basin, November is ideal and for water, we draw from Lake Chad. Due to this need for water, the South Chad irrigation project, is located at New Marte to provide water for all the farmers,” he said.

    According to him, the country has comparative advantage for producing wheat, adding that Borno, Yobe  and  Adamawa states form the catchment area.

    He said: “ Our major challenge is water. Due to the fact that the basin is a low land area, we cannot irrigate our land by gravity. Water must be pumped and this involves enormous use of energy and its attendant high cost. A 30-megawatt diesel-powered station was put in place to provide the water needed by the project.

    Lake Chad is the only source of water and it is lying lower than the farm level hence the need to pump water rather than use gravity of flow.

    “We pump water to a height of 16m in two stages and the energy usage is quite heavy. At the time the station was put in place in the 70s, diesel was at 3 kobo per litre, but now in Maiduguri, the pump price is between N150-N160 per litre. The project is not yet connected to the national grid and it is the single most militating factor against the project. The grid stopped at Maiduguri, N124km away from New Marte. This energy issue makes the cost of production of wheat in the area about the highest in the world,“ he explained.

    Domestic wheat production is less than 100,000 tonnes per year. Increased production is challenged by the lack of heat-tolerant wheat varieties that are high yielding and development of rain-fed wheat cultivars that are tolerant/resistant to high temperatures, humidity, pests and diseases.

    The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, has said the Federal Government has emphatically put a lie to the long-touted myth that Nigeria cannot produce wheat in commercial quantities to enable her exit the choking grip of importation of the commodity.

    While launching two new high-yield, early maturing, heat-tolerant and drought-resistant wheat varieties developed by the Lake Chad Research Institute (LCRI), in conjunction with the International Centre for Agricultural Research in Dry Areas (ICARDA), International Maize and Wheat Improvement Centre (CIMMYT) and Institute for Agricultural Research (IAR), Ahmadu Bello University, Zaria, with assistance from the Federal Government and grant from the African Development Bank (ADB), Adesina  said  the two new wheat varieties, named Norman Borlaug and Reyna-28 which have potential yields of five to six metric tons per hectare as against the traditional variety with a yield per hectare of just 0.8 million metric tons per hectare were showcased to members of the public, agribusiness investors, journalists and other stakeholders on the field in Kadawa in Kura Local Government of Kano State.

  • Nigeria moves to save N431b from wheat imports

    Local wheat production is rising and Nigeria will achieve the 68 per cent local production target by year end, the Executive Director, Lake Chad Research Institute, Dr. Gbenga Olabanji, has said.

    He   said wheat production in the North would  increase the output from 45  per cent to 60 per cent.

    He added that the 68 per cent output target set by the Federal Government would be achieved by the end of the year.

    This will help the country to save N431bn from its wheat import bill.

    The LCRI boss said: ”Farmers have adopted the improved variety and we have released two new varieties in December, Reyna 28 and Norma Boulaug with average yield of 5.5 to six tonnes per hectare.

    “At present, we can say have attained about 45 per cent. But if we are to add all the products in all the Northern producing states, we will have close to 60 per cent, so the 68 per cent is still very much achievable.”

    Olabanji added that Lake Chad had released an improved variety of seeds that could produce up to  six tonnes per hectare of wheat while the area of production had also been increased to about 150, 000 hectare.

    The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, had in 2013 said Nigeria would meet 68 per cent wheat needs by 2015.

    “In two years, if we accelerate investment, we should be able to produce 2.2 million metric tonnes of wheat. This would meet 68 per cent of our domestic wheat requirements and save Nigeria N431bn in wheat imports annually,” the minister had said.

    The Special Assistant to the Minister on Media and Strategy, Dr. Olukayode Oyeleye, however, said Nigeria had over the years witnessed some setbacks in local production of the commodity due to lack of planting materials, government policy changes and lack of incentives to stakeholders.

    Oyeleye said:  “The huge increase in consumption coupled with low productivity resulted in importation to fill the gap between demand and supply.

    “Local consumption in the country has reached four million tonnes while production stood at 100,000 tons in 2012. To reverse this trend where more than N600billion in foreign exchange is spent on wheat importation, the Wheat Value Chain was put in place.’’

  • Bauchi farmers benefit from wheat value-chain initiative

    Registered farmers numbering 400 have benefitted from the wheat value chain initiative of the Federal Government under its Growth Enhancement Support Scheme (GESS).

    A Director in the Federal Ministry of Agriculture and Rural Development, Alhaji Mohammed Yusuf, spoke in Bauchi.

    He explained that each farmer got three bags of fertiliser and improved seeds to enhance their production.

    According to him, the cost of the input per farmer in the open market is N16, 600, but each beneficiary paid only N6, 150, while the government paid the balance.

    The director said the ministry also gave the farmers technical support with proper monitoring to ensure the attainment of the set goals of the wheat value chain.

    He noted that the support was part of the government’s efforts to boost wheat production.

  • ‘Nigerian wheat can compete in international market’

    An agricultural economist, Dr Baba Bashir, said  wheat could compete favourably in the international market with  others. Bashir, who is the Programme Leader, Agricultural Economics and Extension, Lake Chad Research Institute, in Maiduguri, made this known in an interview in Abuja.

    He  said that  states had the capacity to grow wheat covering 1.8 million hectares. “We have over 1.8 million hectares potential wheat production area in Nigeria. The baseline surveys we carried out showed that our farmers are really responsive.

    “What they lack is bulk market – meaning maybe a linkage to industries; the millers are actually importing rather than taking in-house and the import bill runs into billions.

    “Import of N2 billion daily, just wheat; if that one day import could be diverted inwards for farmers to actually boost their production, definitely in time, we will begin to export wheat; that means we are going to add to our foreign income.

    “But the problem is market; if the government can come in and organise the farmers, and make them to amass their products in one location for industries to pick up, then with time the industries can buy directly from the farmers; that will go a long way in boosting production,“ he  said.

    The agric economist urged wheat farmers in the country to take wheat production as a business venture to improve their source of income and make profit.

    “The government’s target now is to let the farmers know that agriculture is all about business; it’s not just for subsistence – to produce and eat whatever you produce.

     

     

  • 17,500 tonnes of wheat expected today

    ABOUT 100 ships, including one laden with 17,500 tonnes of bulk wheat, are expected at the Lagos port before the end of this month.

    The Nigerian Ports Authority (NPA) said the Golden Ship carrying the bulk wheat would berth at the Apapa Bulk Terminal today.

    It said 16 of the expected ships would arrive with petroleum products, 15 would sail in with new and fairly used vehicles and 46 containers of different goods.

    The document showed that other ships would arrive with rice, fresh fish, bulk sugar, general cargo, bulk malt steel products, diplomatic, semi trailers and palm oil.

    About 14 ships are waiting to discharge petroleum products at the oil terminals within the port. The document shows that six of the ships will discharge petrol, three will discharge diesel, two will discharge aviation fuel, one will discharge kerosene and another ethanol.

    It also shows that 11 other ships are waiting to discharge general cargo, bulk wheat, used and old vehicles, rice, containers.

    Nineteen ships are discharging various products, such as gypsum, bulk gas, container, fresh fish, wheat, rice, steel product and petroleum products.

     

  • MAN to Fed Govt: Raise wheat flour tariff

    The Manufacturers Association of Nigeria (MAN), has urged the Federal Government to review upwards the existing 15 per cent duty on imported wheat flour, ahead of the 2013/2017 Common External Tariff regimes.

    The President, MAN, Kola Jamodu, told The Nation that the introduction of 10 per cent composite cassava flour in bread has necessitated the need for upward review of duty imposed on wheat flour.

    He said this would accelerate the manufacture of composite flour locally.”We are aware that duty is a veritable instrument for generating revenue for the Government. To this end, I want to recommend an upward review of the tariff rates of imported flour from 15 per cent to 20 per cent. This will discourage importation of foreign flour, while the cassava products will be promoted,” he said.

    Jamodu called on both the States and Federal Government to encourage its ministries, departments and agencies to patronise locally made products in all their activities, adding that this is the only way local manufacturers  can be promoted. He commended the government for the positive impact of some of its policies.

    He said: ”We are not unmindful of the onerous challenges facing the government. “In this regard, we want to assure the Federal Government of our  commitment to your noble mission to bring positive changes to our economy and sustenance of the manufacturing sector, especially in the area of job creation.

    ”This is even as the Director General of the Federal Institute of Industrial Research Oshodi, FIIRO, said consumption of cassava bread can save the economy N318 billion yearly.

    ”This figure is half of the N635 billion (about $3.9 billion) being spent annually to import wheat into Nigeria by the Flour Millers for bread making and other confectioneries. Since wheat is not produced in Nigeria it has to be imported.
    Furthermore, bread is produced from 100 percent wheat flour and as such huge amount of hard earned foreign exchange is used every year for its importation,” he disclosed.