Monday, 5 December 2016

Pecan nut profits: well worth the wait!

Growing pecan nuts requires long-term commitment. Dries Duvenhage of Hartswater in the Northern Cape planted his first hectare of pecans 16 years ago and patiently waited for the return on his investment.



In 2000, Dries Duvenhage decided to plant 1ha of pecan nuts on his 125ha farm Terre Donne, loosely translated from French as ‘healthy earth’.

It was a bold move, as pecan trees begin yielding an economically significant crop only from eight years onwards.

Since then, Dries has expanded his orchard, and today Terre Donne has nearly 75ha planted to pecans.
He is also a partner in the company Nensis Nuts. Between his own farming operation and Nensis Nuts, he manages the production of about 150t of pecan kernels per season.

“To farm pecan nuts is a challenge because it takes about eight years to see a return on your investment. You must have a cash crop or alternative source of income to see you through in the meantime,” cautions Dries.

In addition to pecans, he farms cash crops under irrigation in a rotation cycle consisting of maize, then barley or peanuts, followed by a five-year lucerne cycle.

The motivation behind Dries’s transition to pecan nuts was the small profit margin earned on cash crops. After some research, he decided to invest in pecan nuts.

“The Hartswater area is perfect for producing [good] quality pecan nuts. You want really nice, hot and dry summers, and cold winters, for which the Northern Cape is renowned,” he explains.

The water requirements of a pecan tree are very high. According to Dries, a mature tree can easily consume 600ℓ of water per day at the peak of summer. The water used for irrigation comes from the Vaalharts Irrigation Scheme – the largest in South Africa – with Hartswater at its centre.


Optimal orchard design for sunlight
 
Orchard design is very important. Dries plants his pecan trees at a spacing of 10m x 10m for maximum sunlight exposure. The trees are cross-pollinated, and to ensure adequate pollination, he plants four rows of cultivars that produce bigger pecan nuts, followed by two rows of a different cultivar, which ensures good cross-pollination.

When Dries chooses pecan cultivars, the main focus is on high-yielding cultivars that produce larger nuts and has a soft shell.

“The latter is very important to Chinese [consumers],” Dries says.


Pruning and harvesting
 
Correctly pruning and hedging an orchard is also important since it results in branches being optimally spaced, thus allowing adequate sunlight into the orchard. Pecan trees can grow very big and alternate bearing is a problem in some cultivars.

Tree size therefore needs to be managed to balance the tree’s vegetative section (leaves and branches) with the root system.

“Hedging usually takes place in winter, just after harvesting, and is done mechanically,” says Dries.
It is also important that rows are wide enough to accommodate the machinery used during harvesting – which runs from April to July, depending on the cultivar.

“We use a mechanical shaker which shakes the nuts off the tree. The fallen nuts are mechanically swept into windrows to ease collection, which is also done by a mechanical harvester,” explains Dries.

Labourers are, however, required to pick up the nuts the harvester has missed. Each cultivar is harvested separately.


Biological methods
 
As far as possible, Dries tries to make use of biological farming methods.
“We do not spray insecticides. We rather make use of natural predators, such as ladybirds and lacewings, to control insects in the orchards,” he says.

Bat houses have also been installed throughout some of the orchards to attract bats, which feast on insects at night.

Although insect infestations in the orchards are limited, Dries says that if he has to single out a culprit, it would be the stink bug.

To provide a habitat for natural predators, he maintains a cover crop of natural grass between the rows.

He applies a fungicide in the orchards to prevent diseases such as anthracnose. This is done in conjunction with a foliar feeding programme which supplies trees with all the necessary micronutrients such as zinc, and is applied at the first sign of leaves appearing, from October onwards.

Many research studies are, however, being conducted by the South African Pecan Producers Association (SAPPA) on methods of controlling fungal diseases in pecan nut orchards, he says.

One of the biggest problems Dries currently experiences is theft. He attributes this to the current high prices achieved for pecans (between R70/kg and R90/kg), and the lack of job opportunities in the area. Weather conditions also pose a major challenge to pecan nut farmers.

“Hail, especially, is a big problem because it damages the trees and knocks off the nuts. In 2014, I experienced yield losses of 21%. Last year they amounted to 11%,” he recalls.

To date, the countrywide drought has not had a particularly detrimental effect on production, but a 20% restriction on water consumption for irrigation was recently imposed in the Vaalharts Irrigation Scheme.


Pecan tree nursery
 
As part of the Nensis Nuts company, a pecan nut tree nursery was established in 2002

“At that time, we experienced a shortage of some commercial pecan cultivars due to the [rapid] growth of the industry. In the past 15 years, we’ve seen enormous growth in the industry. That was what motivated us to start cultivating our own plant material,” he says.

The small nursery soon expanded into a business that currently sells between 25 000 and 30 000 trees a year and employs 25 workers for the planting and care of the yearlings, as well as grafting these onto mature trees.


Export market
 
According to Dries, there is great demand for SA pecan nuts in China, and that country is the main export market. The nuts-in-shell (NIS) market in China has seen extensive growth since 2007.

“Since then, about 90% of our whole NIS [production] has been exported to China, where [consumers] crack the shells and soak the nuts in different flavourings, before eating them as a snack. As the SA harvesting season coincides with Chinese New Year celebrations, it means the local industry can supply them with fresh nuts during this period of high demand.”

Nut prices are quoted in US dollar and the current weak exchange rate greatly favours local pecan producers – making the waiting period worthwhile, he says.

From Around the World: Innovative Farm Shop Design Makes for Smarter Work

Joe Vinton of Glenwood, Iowa, embodies the motto work smarter, not harder. In his shop, Vinton built a 30-foot swing crane to offer an extra helping hand when he works alone.
“The swing boom is used almost daily for one reason or another,” Vinton says. “The older I get, the more I realize how much easier it is on my body to have this extra help lifting when needed.”
Vinton uses the hoist for anything from removing duals to servicing the mower deck. The crane can even remove a combine engine since the hoist allows for a full 16 feet of lift height.

How It’s Made

Nearly all parts of the crane were locally sourced, utilizing used iron from the farm and an oil gas line section for the pipe.
The gas line is only ½-inch thick and 2 feet in diameter. Both ends were capped, and the bottom end has several shafts running through it to anchor the crane. Vinton buried it 6 feet deep into rebar-reinforced concrete. The pipe stands at 18 feet and pivots a 30-foot-long H-beam. The horizontal beam measures 18×8 inches with ½-inch flanges. With a full 1-ton load at its end, the beam flexes 1.5 inches.
“The head of the crane was built around an electric pallet jack frame with a top bearing from a semitrailer axle shaft and hub,” Vinton explains. “The lower bearings were from a salvaged electric forklift.”

Vintoncrane
The crane covers nearly 80% of the 60×124-foot shop with sidewalls extending up 19 feet. To handle the lifting, the jib style crane has a 2-ton air hoist and a 1-ton electric hoist. Combined, the head components weigh in at a hefty 2 tons. 

Shop Design

The shop, built in 2001, features more than just the crane. The shop has a pass-through, 30-foot bifold door that allows for access from the shop into the machinery shed without opening up the building to the outdoors. Not only does this mean the family saves on its heating bill, but also that they can stay inside in the winter since bigger heads can get through the door.
The shop features a second deck level, which has Vinton’s mill, big dill press, air compressor, and plenty of room for parts storage. Their crane makes it possible to move heavy equipment upstairs that they might not otherwise be able to carry.
To secure the shop, Vinton leaves nothing to chance. He has an alarm system to alert the service provider to call the authorities if there are any attempted break-ins. There is also a security cage under the shop’s overhead deck that houses special tools. One wall of the cage is a steel cabinet that can be locked to secure special electric and air tools.
Vinton was thinking ahead when he broke ground for his shop in 2001. The innovative design was set up to allow for easy future expansion.
“Our shop design serves us quite well, but it continues to be a work in progress. We’d still like to add a lathe, press, and more as used equipment becomes available,” he says.

Bauchi Governor Vows to Move College of Agriculture to Dass LGA


Governor Mohammed Abdullahi Abubakar has announced that the Bauchi State College of Agriculture will be relocated from the state capital to Dass local government area.

He made the announcement when he received the people of Tafawa Balewa, Dass and Bogoro local government areas who paid him a solidarity visit.
He reaffirmed his readiness to work with everybody including those criticising his administration if they have something to offer to the development of state.

He said that the planned relocation is part of an effort to reposition the practice of agriculture as the highest revenue earner to the state as well as create direct and indirect jobs.

The governor said that such measures will provide opportunities and ensure an even distribution of infrastructure to all parts of the state adding that fairness is the cardinal objective of the ruling APC and his administration.

He said Dass is one of the highest rice producing parts of the state therefore a place is being scouted for the immediate take off of the college.

“My administration has done enough given the state of finances available to Bauchi state. And if my critics and even political detractors have something tangible to contribute to the development of Bauchi state, we are ready to accommodate such people because the preoccupation of this administration is how to make life better for our people as we earlier promised during our campaigns”, he said.

While speaking, Murtala Ibrahim Danmalikin Boto, Elisha Tula Gwamis and Yusuf Wandi Dass who spoke on behalf of the delegation said the three local government areas are united in supporting the governor’s efforts in transforming the area which they said is backward in distribution of infrastructure.

They urged the governor to complete projects being carried out by the administration,

They assured the governor that they will support his administration in all its good policies.

The community leaders also appealed to the governor to establish tertiary institutions in the area that will provide technical and vocational training to youth and reduce reliance on white collar jobs.

The three local government areas representatives said under the present administration their area has been fairly treated in appointments and distribution of infrastructure.

Dangote, Moroccan Group Sign MOU On Fertilisers Production

The Nigeria’s agricultural sector has received a major boost as the Dangote Group and the OCP Group of Morocco signed an agreement to boost fertiliser production and business in the country.

The OCP Group is a global leader in phosphate and phosphate derivatives markets.

The partnership is expected to lead to the creation of an integrated African platform and a global leader in fertiliser production,

A statement from the Dangote Group announced this on Sunday in Abuja.

It said that the collaboration between the two African conglomerates would help the Dangote mix the mass deposit of phosphate in Morocco with the gas potential in Nigeria to produce fertiliser for the development of the agriculture sub-sector in Africa.

President of the Dangote Group and Africa’s richest man, Mr Aliko Dangote, said the agreement would support Nigeria’s effort to attain food security, create jobs and address rural urban drift.

Both the OCP of Morocco and Dangote, during the meeting, indicated that more than two million tonnes of customised fertiliser would be imported from Morocco in the next three years.

Dangote said out of the 2.8 billion dollars total investment, 2.5 million dollars had already been committed to the project by the Group.

It will ensure a growth from 3.6MT fertiliser capacity in 2018, to 4.6MT in 2020.

He said by the time it would start operation in December 2017, the three million tons capacity Urea Plant would be the biggest in Africa, and as well the second largest in the world.

According to him, the effort will bolster Nigeria’s foreign exchange earnings, improve government revenue, create jobs, increase yield per hectare and further grow the GDP in the agriculture sub sector.

“The Joint Venture shall become the powerhouse of fertilisers to make Africa self sufficient in fertilisers,” he added.

Gov. Abubakar Badaru of Jigawa, who witnessed the ceremony, said the deal would enable fertiliser to be sold to farmers in Nigeria at cheaper rates.

According to the Governor, 250,000 fresh jobs will be generated from the agreement.

President Muhammadu Buhari and the Moroccan King Mohammed have also signed other bilateral agreements, including cooperation in strengthening the local blending capabilities and Agriculture Eco-System Agreement.

The OCP Group is a global leader in phosphate and phosphate derivatives markets.

It is the world’s largest exporter of phosphate rock and phosphoric acid, as well as one of the world’s largest producers of fertiliser.

The Dangote Group is one of Africa’s most diversified conglomerates and the leading cement producer founded by the Africa’s richest person, Aliko Dangote.

It is currently building the largest refinery, petrochemical and fertiliser complex in Africa with the capacity to refine 650,000 barrel a day.

Saturday, 3 December 2016

Palm Kernel and PKO Business; Trading Profitably


Palm kernel/ Palm kernel oil (PKO) business is a highly lucrative business but one that requires a lot of knowledge and experience.

Palm kernel is largely traded and sought for, due to its highly in – demand oil – Palm kernel oil, known as PKO.

You can invest in Palm kernel and PKO trading and investment either by directly being involved in the sourcing, milling, storage, transportation and marketing or by indirectly investing in those who are already skilled in the business.

Most newbie think that all is needed to be successful in the Palm kernel and PKO business is simply having the needed capital to begin. Unfortunately a lot of these people who share this same mind set most often as it had been the case, go on to lose most if not all their start up capital and become frustrated in the end.

Palm kernel trading and business is a very lucrative one. With the palm kernels being available in bulk supply mainly during the dry seasons and more so with the very high demand for the products by secondary processors and industries, coupled with the insufficient production of palm fruits, it is an investment with an assured high return on investment (ROI).

However, as with every investment that is high yielding, there are a lot of pitfalls to be avoided and basic rudiments to be learnt before venturing into the business.

As the Palm kernel season gradually approaches, be sure to educate yourself well enough to tap into this highly lucrative venture, especially in this era of low returns on financial derivatives and fixed deposits at the banks as well as difficult FX regime for import dependent investments.

Some of the following areas must be well understood and a prospective investor in the Palm kernel trade grounded in their workings to be successful. They include;
  • Funding; How to allocate resources to maximize profit
  • Sourcing; Where to source cheaper.
  • Quality Assessment; How to determine quality of kernels
  • Measurement Standards
  • Pricing
  • Tips to avoid being cheated by the kernel merchants
  • Maximising profit through storage
  • Determining moisture content
  • Sorting techniques
  • Measurement Standards
  • Transportation
  • Marketing

Cat Fish Farming & Smoking(Processing) Seminar

Fish farming like other business has its pros and cons. And truthfully it is a very lucrative and yet a money draining business.

I have read articles about how lucrative the business is and how to invest and reap millions. All I do is just to laugh on reading such article. All they want is just for u to buy their manual and make money. Surprisingly most of them don’t have a farm of their own, they are computer farmers who don’t have any experience whatsoever in the business..

Catfish fish farming is very profitable but highly sensitive; therefore so much caution must be taken to avoid making mistakes that can cost so much loss. Just as there are numerous benefits, there are also problems involved which results from inadequate enlightenment and proper caution.

Losses resulting from mistakes and poor management are usually more fatal in catfish farms than in other case.

Some of the key areas where new fish farmers must be well grounded and informed to avoid loses include;
  • Fingerlings for stocking. This is one aspect for the failure of fish farmers. Most hatcheries select the best (shooters) for themselves and sell runts to farmers.
  • Pond Construction.
  • Pond disinfection.
  • Stocking Techniques.
  • Avoiding overstocking of your pond.
  • Control of environmental hazards
  • Feeding your Fish rightly.
  • Feed selection and formulation.
  • Avoiding water contamination and pollution.
  • Marketing (Most farmers rely on same conventional marketing techniques)
  • Livestock Insurance

Greenhouse Farming; The way to go


Greenhouse farming technology is an innovation that is gradually making its way into the Nigerian agricultural sector.

It is farming under a confined controlled environment as against the traditional open field farming. The structure can be made of glass or polythene covers depending on availability and cost of materials. These structure ranges in size.

Greenhouse is essentially a controlled environment limiting the devastating effects of insect pests and diseases that ravage vegetables including tomatoes. It is not rain-fed but brain-fed, as it comes complete with a customized drip irrigation system. With little amount of land space and water, you are sure to get a yield far higher than your traditional open field production.

With greenhouse farming a farmer can have prolonged production period, efficient water utilization, low cost of labour (that is spraying, weeding and watering) High quality of crop produce, timely crop production, and less exposure to chemical toxin.

To go into greenhouse farming one must have basic knowledge on the certain areas in order to yield profit and to avoid loss.

Here are some of the things you should know.
  • Site selection
  • Type of crops that can be grown in a green house
  • Type of greenhouse structure and which is suitable for you
  • Proper building materials
  • Irrigation process
  • Crops management under Greenhouse conditions
  • Greenhouse maintenance
  • Appropriate production facilities
  • Fertigation
  • Crop spacing
  • Temperature regulation and environmental control.
Locally replicated greenhouse technology has been proven to provide a low cost alternative to the imported greenhouse structures marketed by companies in Nigeria.

7 Agro Commodities With Sure High Returns (ROI)


Agric commodities trading and investment is an agribusiness enterprise that has come to stay in Nigeria.
As the dry season is gradually setting in, below are some of the Agro commodities that would sure yield optimum profit for any investor and start ups who venture into trading the commodities with the requisite knowledge, experience and capital.
  

1. Raw Cashew Nuts.
 
Raw Cashew Nuts (RCN) is a money spinner. You can invest in Raw Cashew nuts for either local trade or export depending on your capital. Also Raw Cashew Nuts can be processed into the highly sought for Cashew kernels with high domestic and international demand.


2. Palm Oil

With the high demand of the commodity in Nigeria Palm Oil is a sure money spinner for any agro commodities investor. Potential investors should enter the palm oil business during the dry season, when prices are relatively cheaper and supply abundant.


3. Palm Kernel

 Palm Kernel is a by product of the Oil Palm, specifically the palm fruit. It is highly sought after commodity due to its widely used Palm Kernel Oil (PKO), which is in high demand by industries and manufacturing sector.


4.Palm Kernel Oil (PKO)

I call it “the new oil”. It is gotten from the Palm Kernel. Also a money spinner for knowledgeable and well informed investors and start ups.


5. GINGER

The Nigerian ginger is highly sought for. The demand for ginger in Nigeria outweighs its production. It is a seasonal Agro commodity that has a wide range of domestic and commercial value and uses.

You can trade your ginger locally and it is also highly sought for in the international market, hence its export value. Most importantly you can go ahead to add value in the raw ginger by processing into other ginger products.


6. GARLIC

Like Ginger, garlic is another very profitable agro commodity found in Nigeria. It has local as well as export trade value.

The Nigerian Garlic is among the best in the world. Investors can also position themselves to profit in this highly untapped agro commodity market.


7. SOYA BEANS.

 Nigeria’s current demand for Soybean outweighs its current production.

It is highly sought for in the animal feed industry and also of high demand in the local market for its high nutritional benefit and domestic use.
Others include cocoa seeds, sesame seed, shea butter, hibiscus etc.

However, with these commodities, every new and prospective investor must be well informed in the area of sourcing, measurement, pricing, quality determination, storage, local trading tips and avoiding the usual market antics of merchants.

Also knowing how to make more through storage, processing and packaging of these commodities is important for optimum profit.

The good news about Agro commodities investment is that you can fully engage in this business and keep your full time work,

Investment Opportunities in Shea nut


Nigeria is the leading producer of Shea nut and butter in the world. However due to issues around quality, the nation is yet to fully tap into the benefit of the expanding market for Shea nut and butter.

The oil content is the most crucial element of the shea nut as that component is an important ingredient in the composition of the shea butter that goes into Cocoa Butter Equivalents and other by-products.


SOURCING
 
Shea nut and shea products are mainly produced in Kwara, Katsina, Plateau, Kogi, Oyo, Benue, Edo, Zamfara, Taraba, Borno, Niger, Nasarawa, Kebbi, Sokoto, and Adamawa states.


PRODUCTION STATISTICS
 
Estimated National Production is 500,000 MT annually, about 3% of the national production is exported.


USES
 
Shea butter is mainly used as cooking oil, in the making of chocolate and candle and as moisturizers in the cosmetic industry.

It is used in the treatment of skin disorders like eczema, burns, rashes, stretch marks, acne, wrinkles, skin discolorations, itching and other skin problems.

It also provides natural protection from the sun’s UV rays. It is also an excellent agent for softening skin. It can also be used to maintain hair moisturization especially in dry hair.


PRICING
 
In the international market, the price per ton for Shea butter packed in 20 pound dark plastic sacks or 50 kilo dark plastic containers or coated steel drums ranges from $1,800 to 2,800/MT depending on the quality, while the local market price per tonne ranges from N180,000 to N250,000
The price of Shea nuts and butter follows the movement in the price of cocoa beans and butter.


EXPORT MARKET
 
Major destinations for Nigeria’s Sheanut and Butter are the Europe, United States and Japan.


EXPORT SEASON
 
The export season for Shea nut commences by June and ends in October.


HARVESTING PERIOD
 
The harvesting period for Shea Nuts in Nigeria, runs from July till about November. The fruits are allowed to ripen on the tree and then drop to the ground.


STORAGE
 
Nut that has been well dried can store well for up to 5 years without spoiling. Storage should aim at maintaining the quality through the storage period as well as eliminating pests that could destroy the nuts. Ware house at the appropriate location are needed.


PROCESSING
 
Shea Butter is produced by steaming the Shea fruit for the kernel inside to shrink away from the shell to prevent the kernel from damaging. After the shells are cracked and the kernels are extracted. They are placed in the sun to dry for a prolonged period in order for the shea nuts to maintain a long shelf life of 5 years. After drying, the best nuts will be sorted out to for crushing and left till the next day. Thereafter, other processes like Roasting of Crushed Shea Kernels, Milling, Kneading, Boiling, Filtration and Solidification, Packaging and Storage will commence.


MARKETING
 
Main buyers of Sheanut and Sheabutter are chocolate manufacturers, Cosmetic Industries, Pharmaceutical Industries as well as households.


INVESTMENT SUMMARY
 
Production
Processing
Export
Storage
Marketing