With the coming on of Akinwumi Adesina as minister of Agriculture, the nation began to rethink agriculture. The Minister came out clearly with his mandate: it was no longer going to be business as usual in agriculture; that agriculture would henceforth be run as a business.

There was therefore going to be emphasis on value chain. In other words, the ministry decided that agriculture would be run through its entire value chain – farming through processing, that is adding value and sales locally and internationally.

One year on, the logical question is, how has the agriculture ministry fared with its project that is meant to rethink agriculture in the country?  The Ministry launched what it calls a ‘government-enabled, private-sector-led transformation’, which involves putting in place new waves of incentives to attract foreign and local investors to the sector.

New fiscal incentives, including zero tariff and duty on agricultural machinery and equipments were announced by the President, to drive the agricultural transformation. It is on record that the Ministry launched a major effort to work strategically with the state governments to help drive investments in their agricultural sectors.

It also decentralised its operations and put in place 36 offices, with directors of agriculture, across the country, and six regional offices, one per geopolitical zone, to help drive investments and agricultural programmes in partnership with states. The efforts are paying off, as the Ministry is working more closely with the state governments than at any period since its existence.

Indigenous companies on the move

Indigenous companies are taking advantage of the agricultural transformation agenda. Dansa Foods is establishing a tomato processing plant in Kano, Famag-Jal has a huge investment in Halal certified meat processing plants in the Federal Capital Territory (FCT); Teragro of the Transcorp Group has invested in the processing of fruits in Benue State.

Teragro Limited, the agribusiness subsidiary of Transnational Corporation of Nigeria Plc will save the nation about $8million foreign exchange annually on reduction of orange juice concentrates, mango puree and mango concentrates importation.

The plant which is first-of-its-kind in the country has installed capacity to produce up to 26,500 metric tonnes of juice concentrates per annum. Jide Adedeji, CEO Teragro, disclosed this in a press conference during the commissioning of the factory in Makurdi by President Goodluck Jonathan.

Adedeji said Nigeria spent $55 million on importation of juice concentrate in 2007, and that with what the country is producing, foreign exchange spent on importation could be conserved by ten percent in a year.

Flour Mills of Nigeria, Multitrex Integrated Foods Plc and Olam Nigeria, have all begun deploying capital to develop new agricultural operations. The Leventis Group has started new investments to revive all its previously abandoned farms and processing facilities, all due to the new reforms in the agricultural sector.

On the Nigeria Stock Exchange, agricultural companies (PRESCO, Okomu Oil) are performing well. In one year, the face of agriculture has changed, from a development programme to a business.

According to Kayode Oyeleye, special assistant to the minister on media and strategy, multilateral and bilateral agencies are providing donor-related investment support and have shown enthusiasm for the major reforms on-going in Nigeria’s agriculture by committing more $1 billion towards Nigeria’s Agricultural Transformation Agenda.

“The World Bank Group is providing $500 million. African Development Bank (AfDB) has committed $250 million. The Bill and Melinda Gates Foundation has selected Nigeria as a priority country for its investment in agriculture. The International Fund for Agriculture Development (IFAD) has put up $80 million.

“The United States Agency for International Development (USAID) has committed $60 million. The UK Government, through DFID has committed £37 million. The Tony Elumelu Foundation, Ford Foundation and UNDP are providing significant technical support facilities,” Oyeleye said.

Fertiliser supply chain

Before Akinwunmi, it was corruption galore regarding fertiliser procurement and distribution.  But now all fertilisers are sold directly to farmers by fertiliser companies. Also, the old system where government bought and sold seeds, which were also fraught with corruption, with grains sold to farmers as seed has been totally dismantled.

To ensure that poor farmers got fertilisers and seeds without political interference, a new scheme called Growth Enhancement Support (GES) was launched to provide targeted support for seeds and fertilisers to five million farmers per year or 20 million farmers within four years. Hitherto, the farmers and their locations were not documented.

To make targeting easy, the Ministry launched the first-ever Know-Your-Customer initiative and developed a database of 4.5 million farmers in 2012, to aid in better targeting of subsidised fertilisers and seeds to farmers. The database will continue to be updated yearly.

The Ministry launched a Growth Enhancement Scheme, where farmers receive 50 percent subsidy on fertilisers, for a maximum of two bags, through the use of their mobile phones or Electronic-wallet system (E-wallet).
The policy has spurred private sector activity to build supply chains that reach farmers – what they have never done before. It has empowered farmers.

State of commodity value-chain

Progress has also been made respect of cassava, rice, cocoa, maize, cotton, oil palm, sorghum, dairy, horticulture, beef/meat and poultry. Nigeria is the largest producer of cassava in the world with 34 million metric tonnes produced per annum. But the country contributes zero percent in terms of value added in global trade.

Yet our farmers grow cassava in abundance and the price of cassava has collapsed around them.  But it is now the era of development of value chains for cassava that will raise income for farmers. This includes the use of cassava for high quality cassava flour (HQCF) to do partial substitution for wheat flour, cassava chips, starch, sweeteners and ethanol.

The Ministry spearheaded the production of high quality cassava flour for use in composite flours to substitute for some of the imported wheat flour being used in the baking industry. Corporate bakers have already started commercialising the inclusion of 20 percent high quality cassava flour in bread.

Rice

According to the Ministry of Agriculture, a total of 690,000 metric tonnes of rice was produced in 2012 from the interventions under the rice programme. This is said to be 140 percent higher than the target set for 2012.

New fiscal measures were announced by Mr. President raising tariff for brown rice, and levy on imported finished rice, to encourage local rice production. In response, 13 new private sector mills were established in the last 12 months, buying and processing local paddy. The total capacity of the new mills is 240,000 metric tonnes. High quality local rice rolled out on commercial scale by Ebony Rice, Ashi Rice, Mikap rice and Umza Rice.

To ensure the county has in place industrial capacity for international quality grade milled rice that can compete with imports, the Ministry of Agriculture and the Ministry of Finance concluded arrangements to facilitate the acquisition of 100 large scale integrated rice mills, with a total capacity of 2.1 million metric tonnes, to be located across the country, owned and operated by the private sector. This is being acquired under a low interest rate facility of $ 1 billion from the China EXIM Bank. 

Cocoa hybrids

Cocoa is enjoying the release by the ministry, eight new high-yielding, fast-maturing cocoa hybrids to revolutionise the cocoa sector. These hybrids give five times the current yields and mature in two years instead of four to five years. A total of 3.6 million hybrid pods (or 114 million cocoa seeds) are being distributed to farmers, free of charge, across cocoa growing states to establish new plantations and phased rehabilitation of old plots.

Cotton, oil palm

When the new administration started there were no improved cotton seeds available in the country. The Ministry entered into MoU with the West African Cotton Ltd. (WACOT) to develop 15,000 hectares of improved cotton seed multiplication holdings in 2012 extendable to 25,000 hectares in 2015. The Ministry initiated the deployment of Bt cotton technology into the country as a viable option to enhancing cotton yield in the country.

Oil palm is undergoing transformation with the distribution of improved tenera oil palm nuts from the Nigerian Institute for Oil Palm Research, by government to farmers. Seventeen oil palm estates in 11 states have signed agreement with the Ministry to raise a total of 1.3 million improved tenera nuts into mature seedlings to plant 8,750ha in their estates in 2013.

Each of the estates will receive 75,000 to 82,500 nuts and will each plant 500-550ha in 2013. The states involved are in Kogi, Edo, Ondo, Delta, Cross River, Ogun, Akwa Ibom, Bayelsa, Abia, Osun, and Enugu.

Dairy and beef

In Oyo state, a cumulative sum of 352 tons of milk was delivered from one milk collection centre (MCC) while six out of 40 formed in Kaduna supplied 195.83 tons of milk. Five milk collections centres were established in Oyo State. Draft comprehensive breeding plan was completed to guide the breeding programs.

Three existing breeding centres at Funafuna, Niger State, Paikon Kore, FCT and Jibiro, Adamawa State have been rehabilitated as centres for community artificial insemination (AI) service. The ministry has also completed the procurement processes of importing semen and other AI kits for the cross breeding programme.

A comprehensive Breeding Plan for the Dairy and Beef Cattle has been developed. Under the programme, potential investors for the commercialisation of the Shika Brown breed bird have been identified. Over 200 cassava farmers and processors have been trained nationwide in the production of Feed Grade Cassava Grits (FGCG) for poultry feeds in April 2012. This is the first time that cassava grits will be used in poultry feed at commercial scale.

LPOs for the supply of 1120 metric tonnes of FGCG worth N34.0million were issued out to cassava farmers/processors in May 2012 by Amo Byng Feed mill. An extensive consultation was carried out with Governments, Poultry Association of Nigeria (PAN) and other stakeholders in Enugu, Lagos, Ogun and Oyo states in June 2012.

A total of 96 Live Bird Market (LBM) Operators under the programme, have been trained while 3 LBM at Uyo, Kano and Dutse were commissioned in the second week of July 2012.
Under the animal health value chain programme, 5.30 million doses of CBPP have been allocated to five states for vaccination, while 3.6million doses of PPR were allocated to nine states for vaccination.

Sorghum and others

Two new sorghum hybrids, which give five times the yield currently obtained by farmers, were released within the year. These hybrids are a major technological breakthrough. The Ministry embarked on rapid and intensive hybrid sorghum seed production in which 70ha of certified seed plots have been planted by seed companies in five states.

A total of 60,000 metric tonnes of additional sorghum was produced in 2012 for fortified foods, which was 111percent above the target set for production of sorghum for fortified foods. Fortified Foods are being developed under the transformation agenda, including sorghum flour blended with soybean e.g. ‘Soy-Akamu’, for School Feeding Programme, lactating mothers.

Malt Beverages, drinks and foods (e.g. ‘DawaMalt’ also for School Feeding Programme) are also being developed as well as High Quality Sorghum Flour (HQSF) in convenient packaging as TUWOMeal for compositing with wheat (up to 20 percent) to bake bread, up to 40 percent to produce noodles, macaroni, couscous, pancake, breakfast buns, biscuits.

The Ministry moved strategically to expand the production and processing of tomatoes and citrus. It also commenced a major effort to launch Nigeria as a major exporter of horticultural produce. It supported the establishment of the Fresh Produce Exporters Association of Nigeria, to ensure that Nigeria begins to play in the international market for horticultural produce.

Five tomato seed varieties (Roma VF, Havesta, Ronita, Rio Grandi, and UC82B) have also been identified for utilisation in dry and wet seasons. FGN will distribute 1,457kg of seeds during this dry season on GES to farmers in the North East, West and Central states to cultivate 3,000 hectares.

The Federal Government will distribute 1.44 tons hybrid tomato seeds, 4,133 litres herbicide, 5,777 litres of insecticide, and 20,545 sachets of fungicides through agro-dealers to farmers in 2012 and 122,400 seedlings in 2013.

To address this, the Ministry worked with the Nigerian private sector to put up processing plants for tomato. Dangote Foods Company is currently constructing a 1,250 metric tonnes per day tomato processing plant, to be expanded to 3,600 metric tonnes per day by 2015. This will significantly reduce the waste and turn Nigeria into an exporter of tomatoes.

For Emmanuel Ijewere, protem chairman Community of Agricultural Stakeholders of Nigeria (CASON), this is the first time that government and the private sector have sat together to identify the solution to agriculture problems.

He explained: “First Agriculture is not just farming. The entire value chain i.e. seed to table must be part of solution. This is the responsibility of the private sector. The private sector in the past has been myopic and compartmentalised. Each association has behaved as if it is an island. The concept of value chain was alien. Unfortunately, we the private sector are just beginning to put our acts together.”

He said the private sector has shied away from investing in storage business because government policies were inconsistent. The business requires a large capital outlay and cost of funding was exorbitant and there was no value chain to assure its profitability.

“Today however, the thinking has changed and a number of private investors are making serious enquiries. We at CASON have received enquiries about local partners for building storage facilities,” he said.

For Anga Sotonye, managing director Universal Quest Nigeria Limited, a commodity business venture, government has laid the foundation for the take-off of value chain in agriculture. It has also created the required awareness. He confirmed the various efforts made by government to move Nigeria’s agriculture forward.



http://businessdayonline.com/NG/index.php/analysis/features/50439-whats-up-with-agric-value-chain

Square peg in a Square hole!! When u see a technocrat you will know!

But he should drop that 10 million phones idea! Dat idea wan rubbish his good works.

Great job minister! Great job GEJ!

lol @ laptops on duty...

Eko Ile: lol @ laptops on duty...

The minister is doing a great job, he needs to be commended

The baba dey work wella . . . .

Until food prices drop then he's doing Nothing.

billante: Square peg in a Square hole!! When u see a technocrat you will know!

But he should drop that 10 million phones idea! Dat idea wan rubbish his good works.

My friend, we cannot continue to approach issues based on sentiments. The armchair critics have feasted on this 10million phones for farmers initiative. Thousands of articles upon articles have been churned out criticizing the policy. It would appear that for want of what to write about or what reason to insult govt, armchair critics now latch unto the phone for farmers initiative.

However, sentiments aside, the fact of the matter is that majority of farmers in Nigeria today are poor and live in the rural areas. Isn't it HYPOCRITICAL that the same critics that brandish and criticize govt for the UN data that suggests over 60% of Nigerians live on less than $1 per day, have all suddenly turned 360 degrees to claim most of our rural farmers have money to buy mobile phones?

Like I said earlier, as a country we must stop approaching issues sentimentally. The data from the agric ministry shows that over 70% of our rural farmers lacked mobile phones. This is the scientific data we have at the moment and has not been contradicted. If the minister of agric has been using mobile phones to distribute subsidized fertilizers, seeds and other farm inputs, it means a great deal of farmers without mobile phones, will be completely shut out of the agric transformation agenda. Therefore, measures must be taken to ensure the majority of farmers are carried along. The phone for farmers initiative will empower more poor farmers with mobile phones, making it possible for them to also benefit from govt subsidized fertilizers, free seedlings and all that.

The phone is not an end itself but a means to end- a tool for the farmers to get subsidized and free farm inputs from govt.

I must also add that the permanent secretary of the agric ministry, who stirred the controversy initially by announcing that the phones will be bought with N60billion, in my opinion, acted IRRESPONSIBLY. The permanent secretary showed COMPLETE disconnect from sufferings and sentiments on the streets and GROSS INCOMPETENCE. One would have expected a public servant that has risen to such height to know that such comment would generate controversy. How can the ministry of agric, with total budget of N80billion, buy mobile phones alone with N60billion? Can the ministry of communication tech with less than N10billion total budget buy N60billion mobile phones? How then did the permanent secretary arrive at N60billion? Assuming the cumulative cost of the ministry of agric, communication tech and other partners providing 10million farmers with mobile phones, spread out over 4 or 5yrs (eg 2million farmers per yr) is N60billion, was it wise for the permanent secretary to throw the N60billion figure at the public the way it was done? The permanent secretary of the ministry of agric, in my opinion, acted stupidly and without regard for public sentiments, and showed be sacked.

Eko Ile: lol @ laptops on duty...

My Guy, this is beyond politics; it should be beyond mere Sentiments and side-talks.
Sometime last year, CPC asked the President to dissolve his Cabinet, sack ALL his ministers EXCEPT the Agric Minister. This is CPC. Go figure.


We ought to pray and work, so that this move works so that it wold not be just like other moves we had taken before. If you are a TRUE NIGERIAN that should be your prayer and concern.

..Oh! You should also try asking yourself how you can take advantage of the HUGE opportunities opening in that sector, if yo are WISE...

JUST YESTERDAY.....

Nigeria’s President Dr. Goodluck E. Jonathan, GCFR, President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria today hosted the first meeting of Nigeria’s new Eminent Persons Group (EPG). The newly formed group of influential global leaders will advise the President on actions to help achieve Nigeria’s Agricultural Transformation Agenda as well as provide a global platform for encouraging investment in Nigeria’s growing agricultural sector.

Members of the EMG include Bill Gates, co-Chair of the Bill & Melinda Gates Foundation, Kofi A. Annan, Chair of the Alliance for a Green Revolution in Africa (AGRA), Dr. Donald Kaberuka, President of the African Development Bank, Dr. Kanayo Nwanze, President of the International Fund for Agriculture Development and Mohammed Abu-Ghazaleh Chairman and CEO of Fresh Del Monte Produce Inc. Joining the EPG at the Geneva meeting were the Honorable Minister for Agriculture and Rural Development Akinwumi Adesina, CON, Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo-Iweala, and other chief executive officers of global multinational and Nigerian corporations.

“Nigeria is undergoing rapid changes in its agriculture sector. We have stopped viewing agriculture as a development program, but now as a business that can assure food security, create wealth and generate jobs. Private sector investments are rising significantly as a result of our bold policy reform,” said President Goodluck. “I am confident that with the support of the private sector and the donor community, Nigeria’s agriculture will further drive economic growth and unlock new opportunities for millions of our farmers and agribusinesses.”

Nigeria’s Agricultural Transformation Action Plan (ATAP), introduced last year by the Honourable Minister for Agriculture and Rural Development Dr. Akinwumi Adesina, provides a comprehensive government strategy to reduce the cost of food imports, diversify the economy and develop rural areas of the country. The goal is to industrialize the sector making it more productive, efficient and competitive. Over the next five years, it is anticipated the plan will add 20 million tons of food to domestic supply and create 3.5 million jobs along the agricultural value chains.

“We ended decades of corruption in the fertilizer and seed sectors of Nigeria within just three months of this administration. We also introduced the use of electronic wallets to deliver subsidized inputs directly to farmers through their cell phones, reaching 1.2 million farmers. Our policy reforms and incentives have attracted eight billion dollars of private sector investment commitments so far,” said Adesina. “Based on our success, Nigeria’s agricultural transformation agenda will be a model for the rest of Africa to address food security and drive economic growth.”

[b]“What Nigeria is doing in its agriculture sector is an example for the rest of Africa. That is why the African Development Bank is strongly supporting this agricultural transformation agenda. The political will is strong and the Minister is driving innovative ideas for change,” said Dr. Donald Kaberuka, President of the African Development Bank. “We will support Nigeria to further develop its agricultural infrastructure to ensure a positive investment climate for agribusiness.”

About the Agricultural Transformation Agenda

Transforming the agricultural sector is key to Nigeria’s strategy for growth and is driven under the new Agricultural Transformation Agenda (ATA). Introduced last year by the Honorable Minister for Agriculture and Rural Development Dr. Akinwumi Adesina, the ATA is the largest ever government-enabled private sector-led effort to grow agriculture in Nigeria. This comprehensive effort aims to increase domestic food production, reduce dependence on food imports and expand value addition to locally produced agricultural products. Through de-regulation, attractive financing, concentrated infrastructure investments, and competitive policies, the sector will be more productive, efficient and competitive. Specifically, the plan will add 20 million tons of food to domestic supply and create 3.5 million jobs by 2015[/b].

http://www.worldstagegroup.com/worldstagenew/index.php?active=news&newscid=7340&catid=3

Also READ: http://www.newworldnigeria.com/pdf/AdesinaLondonBOIForumfinal.pdf

Eko Atlantic#:


The minister is doing a great job, he needs to be commended

Multi billion naira cell phone is indeed a great job, too bad no be me den dream up the contract for....

This is a government that's still feeling its way in the dark and they'll continue to till they lay out any kind of detailed strategy or policy, instead, its still the same throwing up pies in the air while hoping it sticks, its still the same seeds here and fertilizer there. We are still decades away from mechanized and industrial farming with maximized and efficient productivity, but the best plan for Nigeria in 2013 and beyond is billions for cell phones and seeds over there and fertilizer over there.


No, we are not ready yet and we don't have the brains to get us there at this moment, all we have right now are jokers and bench warmers.

why is food expensive in Nigeria.. If you really have change.. you make me laugh..

I dont know this person.. if that is why you posted it..

Eko Ile:

Multi billion naira cell phone is indeed a great job, too bad no be me den dream up the contract for....

This is a government that's still feeling its way in the dark and they'll continue to till they lay out any kind of detailed strategy or policy, instead, its still the same throwing up pies in the air while hoping it sticks, its still the same seeds here and fertilizer there. We are still decades away from mechanized and industrial farming with maximized and efficient productivity, but the best plan for Nigeria in 2013 and beyond is billions for cell phones and seeds over there and fertilizer over there.


No, we are not ready yet and we don't have the brains to get us there at this moment, all we have right now are jokers and bench warmers.

Dude can you shut up for once!

we are still watching...

@Moderator, front page pls!

Eko Ile:

Multi billion naira cell phone is indeed a great job, too bad no be me den dream up the contract for....

This is a government that's still feeling its way in the dark and they'll continue to till they lay out any kind of detailed strategy or policy, instead, its still the same throwing up pies in the air while hoping it sticks, its still the same seeds here and fertilizer there. We are still decades away from mechanized and industrial farming with maximized and efficient productivity, but the best plan for Nigeria in 2013 and beyond is billions for cell phones and seeds over there and fertilizer over there.


No, we are not ready yet and we don't have the brains to get us there at this moment, all we have right now are jokers and bench warmers.

That cell phone thing is pure shi-t from the bot-tomless pit. I ain't commending him on that but other reasonable things he has brought(and still bringing) to the agricultural sector.

People are considered to be doing well when whatever they are doing has an impact on the populace. The last time i checked the price of food items is still high. So, you guys should be lucid by telling us what exactly he has done.

The moment i heard that this man wants to buy cell phones for farmers, i just wrote him off. Talk about misplaced priority.

Ok I accept dt GEJ thru d agric minister is doing well bt pls why is it dt food is still expensive in d country? And can someone pls tell me what my gov PO is doing in d agricultural sector in my state? He's close to d president bt why is he nt benefitting from all these development in d agric sector? I'm really concerned.

Afam4eva: People are considered to be doing well when whatever they are doing has an impact on the populace. The last time i checked the price of food items is still high. So, you guys should be lucid by telling us what exactly he has done.

The moment i heard that this man wants to buy cell phones for farmers, i just wrote him off. Talk about misplaced priority.

Actuali if at dis early stages of d ongoing reforms you see a freefall in d prices of food, then dat wud be a sign that d reform is not bn implementd properly. To spur Productn anywhere d prize hv to be 'right' for d would-be producer to enable him tk d economic decision to produce, and then going forward the prizes wud begin to fall IF d it works dat is Cos there wud hv bn an increase in Economics of Scale, Preditability, Management and a decrease in d Cost of productn...... No real investor wud hv investd in large-scale rice farming, milling or indeed, any of d Rice value chain d govt didn't impose tariffs on extremely cheap foreign rice that are more than 15yrs in storage and dat were bn dumpd on us; it wud hv bn impossible. To judge d progress of d reforms at dis EARLY stage just by prize of food items is just NAIVE to say d least...

taharqa: Actuali if at dis early stages of d ongoing reforms you see a freefall in d prices of food, then dat wud be a sign that d reform is not bn implementd properly. To spur Productn anywhere d prize hv to be 'right' for d would-be producer to enable him tk d economic decision to produce, and then going forward the prizes wud begin to fall IF d it works dat is Cos there wud hv bn an increase in Economics of Scale, Preditability, Management and a decrease in d Cost of productn...... No real investor wud hv investd in large-scale rice farming, milling or indeed, any of d Rice value chain d govt didn't impose tariffs on extremely cheap foreign rice that are more than 15yrs in storage and dat were bn dumpd on us; it wud hv bn impossible. To judge d progress of d reforms at dis EARLY stage just by prize of food items is just NAIVE to say d least...

Good response to shallow thinkers! Even afam follow they talk shallow...

Agriculture value chain business is the next money minting industry just like telecom did....wise investors should key in now or they miss out like vodacom did! Even TB joshua don follow advise.

billante:

Good response to shallow thinkers! Even afam follow they talk shallow...

Agriculture value chain business is the next money minting industry just like telecom did....wise investors should key in now or they miss out like vodacom did! Even TB joshua don follow advise.

Really hope so Cos it wud hv an unimaginable positive effect on d Nigerian economy, esp millions of poor rural farmers and youths...