Mexico Prepared to Source South American Corn

The Mexican government would seek other agricultural suppliers in the case that President Trump fulfills his promise of imposing a major border tax of 20% on Mexican products in order to pay for a border wall.
This could mean a significant lost of market for U.S. farmers, including beef, poultry, hog, corn, soybeans, rice, and others.

“I warn you: The openness for grain and agricultural products for Brazil will eat the market that you have today in Mexico,” said Ildefonso Guajardo, Mexico’s economy secretary in a meeting this week with Stephen Bannon, Peter Navarro, and Jared Kushner, all Trump’s top aides, according to the Mexican press.

Throughout last year, Mexico has already sought to negotiate several trade agreements with both South American countries, but nothing concrete has been announced yet.

According to Mike Zuzolo, president of Global Analytics & Consulting, there already has been market anxiety about what is going to happen on this issue and with cattle. Feed-meal traders from the south of the border are already trying to anticipate major decisions.

“It would all depend on the size of the second corn crop in Brazil. If Brazil has sufficient volume, it would be able to sell corn from $25 to $35 per ton (into Mexico), and there will be significant changes in the market. It’s all about the weather in Mato Grosso in the coming months,” Zuzolo predicted in a call with

On the other hand, it is unknown when a possible border tax between both countries woud be imposed, though it most likely that it would come after the third quarter of the year of even in 2018.

Mexico imports nearly 11 metric tons of yellow corn - all of it from the U.S.
In the view of Mexican analyst Alfonso García Araneda, general director of Gamaa Derivates in Mexico City, it would be harmful for both countries if a border tax is imposed. He highlights that corn and soybean purchases in Mexico are made by U.S.-based corporations such as Archer Daniels Midland and Cargill.
“The Mexican government is negotiating as hard as it can because there will be losses for both parts. I think that the U.S. administration will take into consideration all the damage it can generate for Americans. Mexican officials are trying to show it,” García

Yet, the trade war with Mexico would not be the only one that could generate loss of market share for U.S. agricultural products. For Brazilian analyst Carlos Cogo, who is based in Porto Alegre, Rio Grande do Sul, the U.S. exit of the TPP could be an opportunity for Brazil to sell at least 150 agricultural items for the 12 countries involved, but he sees a risk on the effect of Trump’s policies all over the world.

“The fiscal stimulus and higher interest rates will lead to a stronger dollar. This could generate a wave of devaluations of emerging markets’ currencies,” analyzed Cogo.

We will give those who produce locally the support we can give- Osinbajo

In line with efforts to address the challenges faced by Micro, Small and Medium Enterprises (MSME) in the country, the federal government has launched a nationwide project code-named “MSME Clinics”.

Speaking at the Southeast maiden edition of Nationwide Micro Small and Medium Enterprise (MSME) Clinic held at Aba, the Vice President of Nigeria, Professor Yemi Osinbanjo, expressed that the agenda of the federal government is to create sustainable platform through its relevant agencies that would ensure that businesses in the country that produce locally made goods are given adequate support and wider spectrum to grow.

“We will spend time to ensure that we give those who produce locally all the support that we can give, and that is why we are doing this clinics,” he said.

Osinbanjo reiterated the quest for development of local capacity is the panacea for rapid economic growth.
He added that the Clinic was designed to bring together all those agencies in one spot and at appointed times across the country to attend to the needs, questions and requests of people doing business.

He however urged the relevant government agencies to see themselves as facilitators of the businesses and remove restrictions that are often reported when enterprises have something to do with the agencies.
The project is expected to run till the 19th of February, 2017.

Osun Government requests Expression of Interest for Competent Aggregators

The Osun state government has called on competent aggregators to express their interest in activating market-driven agricultural value chain in the state.

The Osun Agricultural Value Chain Activation initiative is a project of the state government to partner with competent aggregators to spur private sector-led and market-driven agricultural value chain development and is designed to use the aggregator and out-grower model in a way that is innovative, sustainable and scalable.

The vision is to facilitate the activation of a minimum of 10 market-driven value chains that will empower 50,000 sustainable smallholder farmers/MSME, increase income and create jobs for 300,000 people using the aggregator and out-grower model.

A statement signed by the Project and Economic Team (PET) in the Governor’s office, states that selected aggregators will identify and establish sustainable and competitive markets in any of the Plantain, Rice, Cassava, Yam, Maize, Tomatoes, Soybeans, Cocoa, Rice, Oil Palm, Poultry, Rice, Oil Palm, Poultry, Aquaculture, Small Ruminant, Goats, Piggery, and Forestry value chains.

The aggregators will secure sustainable market linkage and organise Osun Small businesses to produce in commercial quantities. The initiative will connect competent aggregators to qualifying small businesses leveraging on the abundance of Macro, Small and Medium and Enterprise (MSME) funds at the National and Sub-Nation levels to support small businesses.

The statement also informed that the initiative will also partner relevant financial and development institutions.

IITA to embark on Private sector-led Agric Initiative

The International Institute of Tropical Agriculture (IITA) has disclosed plans to begin a new private sector-led agriculture initiative christened Africa Agricultural Transformation  in June 2017.

The Project Leader, Sustainable Weed Management Technologies for Cassava Systems in Nigeria, Dr Alfred Dixon, made this known in Lagos.

“In partnership with the African Development Bank, we have engaged the private sector in 35 African countries to provide an avenue where Africa will feed itself and this we have done with the Technologies for African Agricultural Transformation, which will be rolled out in June, this year”, he said.

Dickson expressed that the project was premised on the need  for  active participation of the private sector in advancing the development of the Agricultural sector in Africa.

“The private sector is very important because it will drive the market. Technology will go nowhere without the market. We need the input and the output markets. If we don’t have the private sector to play this role, technology will go nowhere, even the small-scale farmers will never benefit from our technology”, he said.

Commending Niji Farms and Allied Services Limited for its technological innovations in cassava processing, he expressed confidence that such innovations would generate income as well as curtail environmental pollution.

“I am very happy for this sort of initiative for cassava processing to provide increased income and reduce environmental pollution in Nigeria, particularly now that Nigeria is a global leader in cassava” he stated.

3 Ministries To Sensitise Nigerians On Stainless Grinding Machines

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh has said that the Ministries of Agriculture and Rural Development, Health and Science and Technology will partner with the media to educate Nigerians on the need to embrace the new technology of operating and using electronic Stainless Grinding Machine.

Ogbeh revealed this at a press briefing in Abuja recently when a company, Niji Lucas Nigerian Limited, visited the ministry to demonstrate the operational system of the stainless grinding machine. He disclosed that grinding of pepper, tomatoes among others with the usual iron grinding machines in our household and other food outlets across the country could cause health hazard due to the metallic substances that usually mix with the processed items.

He added that the cases of liver and kidney problems among youths and children may be attributed to poor food processing methods of the populace.

The minister maintained that “the food we eat can be a source of health or poison depending on how the food is processed, stressing that the food we take are very good but our shortcoming is the processing method which poses danger to our health”.

Also speaking, the managing director, Niji Lucas Nigerian Ltd, Engr. Kola Adeniji said “the company’s mindset for the construction of the electric grinding machine is to ensure that Nigerians have healthy living by keying into the new technology in food processing.” He said the machine works according to its capacity and is very easy to operate. He demonstrated how the machine works with the grinding of tomatoes, pepper and onions at the occasion.