Tuesday, 29 November 2016

BENUE WIDOWS EXCEL IN FARMING THROUGH GROUP SAVINGS.

Justina Ya’apera is a middle-aged widow in Anyiin, Logo LGA in Benue State and proud owner of 40 bags of soya beans, which could fetch her over N400, 000 given the current price of the produce at N12,000 per bag.
She produced the 40 bags from a loan of N10,000 she got through group savings and N20, 000 micro credit from Bank of Agriculture and Gboko Micro Finance Bank in a number of circles, which she has already paid.
The widow is a member of Akanawe women group in Anyiin with 100 members trained and mentored through the federal government and International Fund Agriculture Development (IFAD) Rural Finance Institution-Building Programme (RUFIN), which seeks to reach out to poor rural people.
The programme ensures that the rural poor gain access to financial services and can invest in improving productivity in agriculture and small businesses.
With group savings of N60,000 to N80,000 monthly, a member could get a soft credit to either expand her farm and/or undertake business depending on how much she saves.
Martha Aba’a is another member of the Akanawe (yam farmers’ women association). Her little monthly saving of N500 to N1,000 with the group, along with the micro credits she got through RUFIN linkages, was able to invest in yam production.
Today, “I harvest over 1,000 big tubers of yam from my farm,” she said.
In Ugba, a widow who gave her name as Mrs. Esther is a volunteer under the RUFIN programme. Esther’s job is to help other women to form groups with the aim of imbibing group savings and lending culture.
Her two years of helping women come together resulted in the formation of over 10 women groups, saving from the little they make from their farms and agro-enterprises. These groups lend to themselves depending on how much you save in the group, one could get loan facilities from N5,000 to N50,000.
Another widow, Mrs. Agara while telling her emotional story, recounted how life was miserable for her family before receiving the FG/IFAD capacity building on group formation and saving culture.
The widow has so far mobilised over 100 women into 15 groups in her ward helping them to save their widow’s mite and lending to each other. She told the IFAD supervision team that “I have expanded my soya beans and yam farms, and have now gone into selling cloths too.”
Some of the groups they help to form, like the Nongo Sisters and Kakuli women groups, made up of financially challenged women and widows are taking the lead in changing the economic situation around their families and learning how to empower themselves.
Mrs. Elizabeth Adam of the Nongo Sisters listed the group’s challenges to include more access to financial institutions in order to expand their production base.
As RUFIN winds up next year, the Central Bank (CBN) and International Fund Agriculture Development (IFAD) are already putting in place strategy to sustain rural financial inclusion for the poor smallholder farmers in states willing to key into the programme. NAN.

GOVERNOR UMAHI ORDERS CONFISCATION OF FOREIGN RICE IN EBONYI MARKETS, SHOPS.

The Ebonyi State Governor, Chief David Umahi on Monday ordered the confiscation of foreign Rice in different markets, shops and other selling points of the products in the state.
Governor Umahi had recently made the pronounced banning the sell of foreign rice in the State over what he described as the health dangers associated with Foreign rice.
The state governor who made the disclosure in Abakaliki, the Ebonyi State capital while performing the ground breaking ceremony of ultra modern Kpirikpiri market urged residents of the state to inform government of anyone bringing into the State and selling of the commodity into the state.
The governor insisted that for one to sell foreign rice in the land of Ebonyi, the person must ensure compliance with all due processes to certify it is not poisonous.
He said, “We have set up a Taskforce and directed them to confiscate foreign rice found in our market.
“The person should give us the certificate of the quality of the rice, you have to prove the import duties you paid for it, where you brought it from and you give us Standard Organization of Nigeria certificate to prove that the rice is not poisonous”.
Gov Umahi said foreign rice is poisonous, “some of these rice were stored for more then 20 years abroad before it would be smuggled into the country”.
“That is why we see cases of cancer, cases of kidney failure and all kinds of diseases that our people were not known for. So you are taking risk if you are selling foreign rice in the land of Ebonyi, “he added.
The governor who said Ebonyi government had enough rice and looking for distributors, advised people to register and become distributors of Ebonyi rice.
He promised to open up modern markets in all the thirteen local government areas of the state and assured that the kpirikpiri market when completed would compete with any other modern market in the country.
Governor Umahi during the ceremony also expressed displeasure with the high level of substandard projects in the ongoing School renovations across the 13 Local Government Areas of the State.
He stated that the State government would soon commence visit of all the project and would not hesitate to demolish any of the project that are viewed to be substandard adding that his administration would never compromise standard.
The noted that after the demolition, the contractor would also be prosecuted to serve as deterrent to others pointing out that all projects executed by his administration must have a lifespan of 50 years.
Meanwhile, the Special Adviser to the Governor on Trade and Investment, Mr. Peter Obah has ordered that all foreign rice in the State must be evacuated or moved out of the state within two weeks.
In a Press statement signed by him and made available to Leadership, the SA warned that no sells, buying or consumption of foreign rice in Ebonyi state would be allowed after 2 weeks.
‘’This is to safeguard the lives of the people who now consume unhealthy substances packaged as foreign rice to Africa in recent time.
‘’Action would commence to impound all foreign rice seen in the state within two weeks of this statement.” NAN.

MOVEMENT OF PERISHABLE ITEMS THROUGH RAIL TO BEGIN IN KADUNA.

The Kaduna State governor, Malam Nasir el-Rufai, will on Wednesday commission a new perishable produce railway logistics system at Dutsen Wai in Kubau Local Government Area of the state.
This new system, which is the result of partnership between Growth and Employment in States – Wholesale and Retail Trade (GEMS4) and Connect Rail Services Limited (CRSL), will see the transportation of fresh perishables, especially tomatoes using returnable plastic crates (RPCs) in temperature controlled rail cabins from the North to the southern part of the country.
This development, the organiser said, will not only improve the quality of tomatoes and other fresh perishables supplied from the North to the South but also increase income for small holder farms due to the reduction of post-harvest losses.
GEMS4 Group Intervention Manager, Mr Richard Ogundele said, “This is a national game changer that will lead to massive systemic changes, as the utilisation of Returnable Plastic Crates (RPCs) in the supply chain will ensure quality produce and increased incomes, hence sustaining the gains of early harvesting.”
He further said that “because the railway system being employed is state of the art, transit times will not only be less but traders will be able to transport more harvest in a produce-friendly environment thus getting more value for their efforts.”
In an MOU between GEMS4 and Connect Rail Services, it was agreed that both organisations shall collaborate in developing engagement strategies required to support the use of temperature controlled railway logistics services for the transportation of fresh tomatoes and other farm perishables from Northern to Southern Nigeria.
This flag off ceremony is expected to herald a new beginning in the agricultural landscape of the country as geographical divides shall no longer create constraints in the value chain.
Growth and Employment in States – Wholesale and Retail Trade (GEMS4) is an economic development project jointly funded by the World Bank and DFID/UKaid, which utilises the Making Markets Work for the Poor (M4P) approach by providing solutions to systemic constraints and the inclusion of small and micro enterprises into better functioning market systems.
The overarching goal is the creation of 10,000 new jobs and increased incomes for 500,000 poor people especially, women. GEMS4 is working with market actors, linking them and facilitating market incentives so they serve each other better. The project is also building local capacity for the supply end to meet the long-term needs of the demand side with benefits to the poor as target. NAN.

NEPC TARGETS $30BILLION FROM NON OIL EXPORTS

The Nigerian Export Promotion Council, NEPC, has expressed optimism that its Zero Oil Plan has the potential to boost earnings from non-oil sector to $30billion over the next five years.
Speaking during a visit to the Minister of Agriculture, Chief Audu Ogbeh in Abuja, the NEPC Executive Director/Chief Executive Officer, Mr Olusegun Awolowo, said the plan has identified 11 strategic products and sectors in other countries for Nigerian goods.
The NEPC Boss said if the plan is adhered to, the non-oil sector would possibly move from $2.7 billion it currently is to $30 billion.
“More recently, we have developed the Zero Oil Plan, in response to this administration’s charge that Nigeria must begin to look for new drivers of the economy,” Awolowo said.
“The plan is Nigeria’s strategic effort to build an economy that does not need oil to survive and can serve as a major flagship economic programme for the country.”
Meanwhile, the Council has urged Nigerians to embrace mushroom farming to boost the foreign exchange earnings of the country.
Speaking during a one day export workshop on mushroom development for export for growers in Osun State, the Trade Promotion Advisor at NEPC, Akure Office, Mr. Moruf Salami, said mushroom farming would promote the economic diversification agenda of the Federal Government and also boost food production.
He said:“The NEPC is organising this workshop to enlighten our business community on the rudiments of export trade for economic growth. Nigerians need to tap into the multimillion dollar mushroom business, there is a huge money in this business and Nigerians should explore the opportunities.
“The importance of non-oil sector to our national economy and its pivotal role in industrialisation especially in this period of dwindling oil revenue cannot be downplayed. The intention of this workshop is primarily to expose the farmers to modern ways of cultivating mushrooms to meet international standards thereby bringing out the distinct features of export business as opposed to domestic trade.
The Director of African Centre for Mushroom Research and Technological Innovations, Prof. John Okhuoya, said mushroom was in demand in the United States, Europe and Asia because of its health benefits.
He explained that African mushroom is sought after because it is being used to produce drugs, adding that it was being recommended for the treatment of ailments such as high blood pressure, diabetes, hypertension and others. NAN.

EXPORT OF AGRIC PRODUCTS NOW ENHANCES NIGERIAS REVENUE PROFILE.


Mr Zakari Nasiru, the Deputy Comptroller (Exports) at Tin Can Island, says export of agricultural products has now enhanced Nigeria’s revenue profile.
Nasiru told the News Agency of Nigeria (NAN) in Lagos on Friday that the Federal Government was making up revenues hitherto being lost due to Nigeria’s inability to export commodities overseas.
According to him, Nigeria loses a substantial revenue when most containers bringing imports into the country return to their original countries without carrying goods back.
‘‘The reason why the containers that came in with imports into Nigeria go back to their country of origin empty while the ones that carry goods from Nigeria out of the country to other countries come back with other goods into Nigeria is simple.’’
‘‘Nigeria used to be an import country, that is, we depend mostly on importation to the extent that most of our needs we import into this country.’’
‘‘But those (ships) that brought in these imported goods go out of this country empty because we have no commodities to take out.’’
‘‘The idea is because their containers are being hired.’’
‘‘When you import, it is not just the (FOB) Freight on Board value you pay, you pay the (CIF) Cost, Insurance and Freight.’’
‘‘That is the price of whatever you are bringing from the company before they bring it to the water side.’’
‘‘It is now that the present administration is encouraging exportation.’’
‘‘It is on the increase, a lot of things are being exported now, especially the agric products.’’
According to him, while Nigeria is discouraging importation, it is striving towards promoting a lot of exports.
NAN reports that Nigeria now exports more than 20 agricultural commodities to Europe, including cocoa butter, palm kernel oil , shrimps, snails, garlic, charcoal, gallstone , textile and garment, cashew nuts, rubber, sesame seeds, cassava flour, and honey. NAN.

Monday, 28 November 2016

Investment Opportunities in Garlic



Garlic is second most widely used amongst cultivated Alliums after onion. Its pungent smell could be very unpleasant when perceived fresh but when added to meals gives the meal a delightful fragrance.
Garlic is widely recognized today as a health enhancing supplement.


SOURCING
 
Garlic is grown commercially in FADAMA regions which includes Northern states like Kano, Kaduna, Kebbi, Sokoto, Jigawa, Bauchi, Katsina and Zamfara States. Its production is mainly around the savannah ecological zone where all factors of production are favourable.


PRODUCTION STATISTICS
 
The national production figure for garlic is 150, 000 metric tonnes. Sokoto State produces the highest quantity.


PLANTING SEASON
 
Garlic is planted under irrigation during dry season between the months of November to March


USES
 
Garlic is a common flavoring used in cooking. It serves as a food additive which prevents food poisoning.

It is used as a raw material in pharmaceutical industries. It is also used to produce supplements which have enteric coatings.


PRICING
 
The local price of garlic ranges from about N170,000 to N210,000/MT, depending on the location of purchase and the period during its season.


EXPORT MARKET
 
The United States is the world’s largest import market for fresh garlic, followed closely by Indonesia, France, Germany, Australia and Brazil.


HARVESTING
 
Garlic bulbs are harvested at optimum maturity period when the plants are eighteen (18) weeks old that is, four to five weeks after planting.


STORAGE
 
Garlic bulbs are stored individually with the tops removed. The bulbs are stored in an uncovered or loosely covered container in a cool, dry, dark place. The flavor will increase as the bulbs are dried.
Garlic can be stored in jute sacks, preferably in a mud house with thatched roof.


PROCESSING
 
The processing operations of Garlic particularly includes; Garlic grading, bulb breaking, clove separation, size reduction, peeling, clove flaking, dehydration, blending, packaging, storage, grinding etc.

It’s processing requires special skill and care, because it’s essential volatile oil is concentrated in epidermal cell, which is mainly responsible for its characteristic aroma.

The following products may be prepared from the processing of Garlic:
a. Garlic Flex
b. Garlic Powder
c. Garlic Tablet
d. Garlic Paste
e. Garlic Pickles
f. Garlic cloves
g. Garlic Digestive Churn etc.


MARKETING
 
The market for the Nigerian garlic is widely spread and is the bulk of households, restaurants, eateries, caterers, and clubs use it regularly. The demand for the processed products is increasing day by day due to its convenience to handle and use. There are good export prospects as well.


INVESTMENT SUMMARY
Production
Processing
Export
Storage
Marketing

Xmas: A Case For Nigerians To Buy Local Rice



Nigeria is the Africa’s leading consumer of rice and one of the largest rice importers in the world. Statistics had shown that Nigeria imports about 3 million metric tons of rice annually.

But, since the government restricted importation of rice from the border point to seaports, smuggling of rice into the country has increased astronomically with an estimated 1 million metric tons (20 million 50KG Bags of rice) suspected to enter the country illegally through its porous borders on an annual basis.

According to statistics, the three million metric tons of rice consumed yearly amounted to about 60 million 50kg bags of rice that are legally imported while over 800 million metric tons are smuggled into the country.

Nigeria spent N630 billion, or about $3.8 billion, to import agricultural products in 2012. In 2011, Nigeria was the world’s second biggest importer of rice, bringing in about 2.5 million tons of rice.

But, early 2013, in an effort to regain food self-sufficiency, the government increased the tax on imported rice from 50 to 110 percent, a 60 percent hike. The tax was meant to encourage locally produced and processed rice and wean the country off imported rice but it rather encouraged smuggling and loss of revenue to government as major rice exporters from South and Southeast Asia in other to evade huge tax began diverting shipments to Nigeria’s neighbouring countries—namely Benin Republic to the west and Cameroon to the east—whose governments suddenly began earning millions of dollars in duties.

Since it was practically nearly impossible for domestic rice producers to build the level of capacity required to mill and process enough rice in time to have a significant effect on the market, smuggling especially of rice that has passed its shelf life become order of the day for rice importers and vendors in the country.


Shelf life of polished Rice

Smuggled white rice isn’t believed to be good for consumption because it has a storage life of 8-10 years at a stable temperature of 70 degrees Fahrenheit. Sadly enough, most of the smuggled rice has used over 10 years in the silos of the developed countries before being shipped into Nigeria for consumption.


Customs raised the alarm on influx of Expired rice into Nigeria

The Comptroller-General of Customs, Col. Hameed Ali (rtd), recently said 99 per cent of rice smuggled through the land borders are not fit for human consumption.
He said samples of some of the rice seizures made over a period were referred to NAFDAC to ascertain their condition but were certified that rice smuggled through the borders was unfit for human consumption.

Corroborating the Customs CG, the Customs Area Controller, Oyo/Oshun Command, Comptroller Tope Ogunkua warned that expired rice flood Nigeria markets.

He said the consuming public should be vigilant when they want to purchase rice in the market to ensure that they do not consume expired rice.

According to Ogunkua, the command has continued to discover so many bags of expired rice out of the many lorry loads of the commodity which it has impounded saying that it was an indication that the smugglers have continued in their attempts to bring expired rice into Nigeria.

He said “despite the policy banning importation of rice through the border, people still bring in the rice through the borders. In fact the number of importers trying to do so has increased now and that is why we have so many lorry loads of rice in our compound while there are still some in the Barracks. We are also battling them very well and that is why we are able to make all these seizures”.

He explained that consumers need to continue to be extremely careful when they go to buy rice especially as we move into the festivity period; they must ensure they inspect the rice they want to purchase very well, whether they want to buy in bags or out of the ones that have been poured into the basins to be retailed.


Why Customs placed ban on polished rice through the land borders

The Customs had said it played ban on rice through the land borders in order to exercise control over what Nigeria consumed.

According to a former Comptroller, Federal Operations Unit, FOU A of the Nigeria Customs Service, Mohammed Dahiru, rice was banned through the land borders by the Federal government in other to control what should be brought into the country.

He said the FOU A has done enough to curb smuggling if rice through the land border.

“I believe we have been able to achieve greater percentage of suppressing smuggling and if somebody is to be objective and be fair to customs FOU A, I believe it will be a pass mark because what is in the FOU A warehouse both open and other warehouse is good testimony that FOU is working. It is full to the brim for rice.


Ingenious ways polished rice is smuggled into Nigeria

Smugglers of rice are said to have device ingenious way of carrying out their illegal activities as according to a source, the smugglers often package the rice in a disguise form to make it look like other goods that were not outlawed.
“We have seen rice conveyed in open wooden canoes across our creeks and water ways with generous amount of dirty waters splashing on them. We have seen some mixed with other grains bags to deceive customs; some are stuffed inside any available crevice and compartments of vehicles, including the engine area.
“The concealed rice is thereafter re-bagged half cooked and presented in our markets for sale as imported rice. Bags of rice meant for Nigerians’ consumption is being conveyed in coffins inside make shift ambulance vehicles. Often time, importers in the borders have to wait for months for the green light from corrupt customs officials before they gamble their ways across the borders.
“Rice being a perishable product, lose valuable shelve life in non-conductive strong conditions. We have strong evidence linking some reputable importers to cases of re-bagging expired rice to prolong their shelve life,’’ he added


How to identify expired polished rice

Since rice has an indefinite shelf life if kept dry, it is hard to tell if it has gone bad. One thing to watch for is the presence of the rice weevil, a tiny reddish-brown bug. If you see these moving in your product, you should discard the entire container and disinfect the container and the surrounding shelves.

Expired brown rice, on the other hand, is easier to spot. Brown rice may become oily and give off a rancid odour because of its essential fatty acids that go bad as they oxidize.

According to www.oureverdaylife.com, an online site, rice may be described as expired if the bran oil has started to go rancid, the smell will be obvious – dank and musty, with a nose-crinkling sharpness. There are also visible signs of deterioration. The rice grains may look discoloured and oily. The grains may even start to stick together in clumps. Depending on the degree of moisture the rice has been exposed to, there may be visible mould.

But, a rice vendor at Sango Market, Chukwudi Nonso said the easiest way to identify expired rice is by firstly rubbing in between palms. He said if it successfully turns into dust then the cereal has expired.

He also noted that another way to identify a rice that has passed it’s shelve life is when it refused to sink when poured into water he said instead of the rise to sink inside the water, a substantial amount would be seen floating on the water.” Nonso said.


Implications of eating expired polished rice

Though some expiry dates relate to product taste, in some cases eating expired rice triggers food poisoning. Symptoms and health effects vary depending on the type of poisoning.

However, common signs include cramping in the stomach area, frequent vomiting, fever, dizziness, dehydration and persistent diarrhoea. The symptoms may last a few hours, days or weeks depending on the severity of the condition. Rice stored past its use-by date in poor conditions can even become contaminated with the serious bacterial infections salmonella or listeria.

One obvious sign of rice well past its expiry date is the growth of mould. Mold includes several types of fungi. Their spores land on the food from the air and start to grow. Some moulds produce toxic substances as they develop. Mycotoxins can cause itchiness, nausea, dizziness and sometimes headaches.


Why Nigerians should patronize Local rice against polished rice

Now that an alarm over safety of foreign rice has been raised, it is high time Nigerians embraced local rice especially because of its health benefits.

It was established that reason many people prefer the polished rice to the locally-made unpolished rice in Nigeria is the stress they go through in picking the latter before cooking it, compared to the polished rice which is very clean and ready for boiling and also can be cooked in less than 20 minutes compared to the unpolished rice.

But then, local rice is self-preserving and one of the foods that add value to the lives of health conscious people including those who are diabetics.

According to an expert, Osaretin Albert, both the white and brown rice contain similar amounts of energy, carbohydrates and protein. Local rice however contains higher amounts of vitamins and minerals; the cellulose of local rice not only increases the fibre content but also contains a variety of colour pigments that is beneficial for health.

Local rice variety contains higher proteins at raw cooked and soaked states as compared to imported rice. It was also found that local rice contains rough surface and more phosphorous and fibre which help in the reduction of the risk of bowel disorder, fight constipation among others.


Smuggled rice are substandard – NAFDAC

The National Agency for Food Drug Administration and Control (NAFDAC) warned that rice smuggled into through the land borders are substandard.

The Acting Director-General, NAFDAC, Yetunde Oni said that records showed that rice imported through the seaports were registered as good quality as pronounced by satisfactory reports from NAFDAC laboratories while those smuggled through the land borders were unregistered and largely substandard.

She said, “NAFDAC is poised to joining hands with Customs to increase surveillance and monitoring activities at all border posts to curb the menace of rice smuggling through the land borders.“

Agro Commodities To Invest In This Dry Season

  1. 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. Ginger is found in abundance in Kaduna State.

2. SOY 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. Soybean is also abundant in Kaduna and other parts of Northern Nigeria.

3. GARLIC.

Garlic is a sure money spinner with huge opportunities for the local and international (export) market.

4. 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.

5. 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.

6. 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

7. 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.
Others include cocoa seeds, sesame seed, and hibiscus(Zobo) leaves etc.

Dangote Sugar Intensifies Effort In Ensuring Self-sufficiency



Efforts are being made by Dangote Sugar Refinery (DSR) Plc to ensure self-sufficiency in sugar production in the country within the next four years.

Over the last year, Dangote Sugar has stepped up its opening of processing factories and assistance to farmers in a bid to dramatically increase output.

Nigeria is one of the world’s largest net importers of sugar, consuming significant amount of foreign exchange. Between 1955, Nigeria consumption rose from 43,000 tones to about 45,000 tones in 1974; by 1982 it rose to about 1MT/PA. Today Consumption in Nigeria is between 1.5 to 1.7MT/PA.

Global consumption is 24kg per capita. Africa 16.8kg, Asia 17.3 kg, America 43.8kg and Europe 36.7kg per capita respectively. Nigeria is around 7 to 9kg. The Nigerian Sugar Development Council (NSDC) was established as the government agency responsible for formulating sugar policies and strategies.

NSDC focused towards promoting private sector-led development. Government-owned sugar estates were privatized in 2005. Investment in local sugar production is hampered by the huge funds required to establish a sugar estate as well as the lack of long-term loans for investment purposes in the country. However, the management of these estates improved under privatization, which also mostly accounted for the marginal increase recorded in sugar production.

Sugar use in industrial activities such as manufacturing soft drinks, pharmaceuticals, biscuits, other beverages and confectionery products is also rising steadily despite higher international prices, and there is no competing High-Fructose Corn Syrup (HFCS) in the market. Demand for direct household consumption also remains strong. More that 90 percent of Nigeria’s sugar needs are met by import of raw sugar, shipped mostly from Brazil, which is then refined by the local domestic sugar industry. The bulk of the available refined sugar supply is also exported from Brazil.

It would be recalled that the Nigerian Sugar Master Plan (NSMP) was introduced in 2012, as the roadmap to national sugar sufficiency, which was designed to increase local sugar production, attain self-sufficiency, reduce dependence on importation as well as create job opportunities and increase prospects of contributing to the production of ethanol in 2020. Currently, more than 90 percent of all sugar consumed in Nigeria is imported raw, mostly from Brazil, and refined by domestic sugar refineries.

DSR is one of the top five Sugar Refineries in the world, with 1.44MT/PA capacity at a location and has begun its backward integration project with a 10-year sugar development plan, to produce 1.5 million metric tonnes per annum (MT/PA) of sugar from locally grown sugarcane. The project commenced with its acquisition of Savannah Sugar Company Limited (SSCL) at Numan, in Adamawa State and other Green Project sites across Nigeria.

Apart from the rehabilitation of Savannah Sugar’s plantation and factory infrastructure, the company’s growth strategy to farm more than 150,000 hectares of planted sugarcane by 2023 includes the creation of integrated plantation and refinery facilities at the following locations; Lau/Tau, Taraba State; Hadejia, Jigawa State; Zaria Kalakala, Kebbi State and Kpada, Kwara/Kogi States.

This phase also includes the rehabilitation and expansion of Savannah Sugar’s estate, which will be used as a model for the other locations.

A report by the US Department of Agriculture (USDA) notes that to date, Dangote Sugar Refining is the only company to have developed a sugar estate and expanding its raw sugar production capacity.

It noted that Dangote acquired 95 per cent equity stake in Savanna Sugar Company (SSC) showed its commitment to becoming a fully integrated sugar company via its backward integration strategy. According to USDA, Dangote Sugar will be the company with the largest competitive advantage.

Recently during the visit of the National Assembly, Committee On Industry, Trade & Investment to the company, the lawmakers commended the management of Dangote Sugar Refinery on its remarkable progress towards ensuring the success of the sugar backward integration project.

The committee chairman, Honorable Abubakar Moriki who led the team expressed satisfaction at the level of the backward integration programme the company has been able to achieve.

He also assured the company of friendly policy formulation especially in land acquisition which is geared towards self-sufficiency of sugar in 2020. He said: “We are aware that for a sugar business to succeed there has to be substantial mass land acquisition for the sugar cane to be planted. We will look at these challenges and others affecting the industry.”

‘‘We have the responsibility as the members of the House of Assembly Committee on Industry to oversee the Federal Ministry of industry, Trade and Investment and alongside the agencies, which the National Sugar Development Council is one of them, being the regulatory agency charged with the responsibility of monitoring the implementation of national sugar policy globally and to come out with all implementation strategies to make us realized sugar self-sufficiency after certain period of time.

“We are here to see what extent has the policy of National Sugar impacted on you as a player in the industry and whether there are some amendments to make the implementation smoother and faster. We have visited the production site at the Savannah Sugar Company, Numan, Adamawa State, which is a typical backward integration starting point where we saw how the sugar canes were being produced, the collaboration you have with the host community in terms of the Out Growers Scheme and job creation.”

“We are happy at the development seen in Numan, which portrays a successful privatization. The company was sold to Dangote in 2003, it was sold as a moribund company but during our visit to the company, we found out it was back on its feet with about 12,000 hectare of land put into cultivation of sugar cane.”

He also urged the management of the Dangote Sugar Refinery to ensure maximal capacity utilization as much as possible to be able to refine sugar here for the mean time and to be able to have mechanism to produce sugar also in the factory.

The group managing director of Dangote Sugar Refinery, Abdullahi Sule said Nigeria is one of the world’s largest net importers of sugar, consuming significant amount of foreign exchange.

He noted that Dangote Sugar Master Plan was to ensure five large sugar factories, 150,000 Ha of land under cultivation, 1.5 to 2.0 million MT/PA of refined sugar from locally grown sugarcane per annual and to generate over 100,000 jobs among others.

He pointed out that Dangote Industries Limited acquired Savannah Sugar in 2003 and Dangote Sugar being a subsidiary of Dangote Industries acquired 95 per cent stake in Savannah Sugar in December 2012, and have invested over N33.05 billion.

He added that at the end of the rehabilitation exercise, Savannah Sugar will increase its sugar production to 260,000 MT per annual of refined sugar from 26,500ha cultivated land, at 12,000TCD daily, 190 days crop length, increase factory from 3,000TCD to 6,000TCD and install a 12000TCD diffuser factory, employ about 15,000 direct and indirect (seasonal) employees, produce 10MW power for export during crop, 18,000,000 liter per annum fuel ethanol and 10,000 MT per annum Animal feed from the by-products.

Sule however said that some of the challenges facing the industry are government policies, lack of infrastructures, stringent financing, huge investment, lack of forex among others.

Also, the director of Stakeholder Management and Corporate Communications of Dangote Industries, Mr. Mansur Ahmed said that the company was committed to the backward integration commitment it signed with the Federal Government, saying the Savannah Sugar Company acquired by the company in Numan, Adamawa, had started producing and plans were on for expansion.

He said that the current economic challenges in the country notwithstanding, the company is poised to remain a leader in the sector.

Cocoa; Investment Facts

INTRODUCTION
 
Cocoa is the second major non-oil foreign exchange earner in Nigeria. Cocoa is the leading agricultural export of the country and Nigeria is currently the world’s fourth largest producer of Cocoa.




SOURCING
 
Cocoa is produced mainly in 14 states namely; Ondo,Cross River, Oyo, Osun, Ekiti, Ogun, Edo, Kogi, Akwa Ibom, Delta, Abia, Kwara, Ebonyi and Rivers.


PRODUCTION STATISTICS
 
Nigeria’s annual production rate of cocoa beans is about 235,000 metric tonnes {MT}.


PLANTING SEASON
 
Planting of cocoa trees starts at the beginning of the rainy season.

PRICING
Cocoa currently sells for N380, 000 – N430, 000 per metric tonne.


USES
 
Cocoa’s main use is as a source material for Cocoa powder and Chocolate.
Cocoa butter which is a byproduct from cocoa is heavily used in the cosmetic and pharmaceutical industries.
The husks of cocoa pods and the pulp, or sweatings, surrounding the beans and the cocoa bean shells can be used in the production of Animal feed, soft drinks and alcohol.
Cocoa bean shells can be used an organic mulch and soil conditioner for the garden.
Potash from cocoa pod husk  is used mainly for soft soap manufacture. It may also be used as fertilizer for cocoa, vegetables, and food crops.


PROCESSING
 
Many products can be derived from cocoa.
Once the beans have been fermented and dried, they can be processed to produce a variety of products. These products include:
Cocoa butter is used in the manufacturing of chocolate. It is also widely used in cosmetic products such as moisturizing creams and soaps.
Cocoa powder can be used as an ingredient in almost any foodstuff.
Cocoa liquor is used with other ingredients, to produce chocolate. Chocolate is used as a product on its own or combined with other ingredients to form confectionery products.


EXPORT MARKET
 
The major export destinations of cocoa in Nigeria are; Netherland, UK, France, Germany, Spain, Italy, USA and Japan. Other emerging markets include China and India.


HARVESTING
 
The main crop is usually ready for harvest 5-6 months after the start of the wet season which is September- March and the mid-crop is harvested June- august.
STORAGE

 
Cocoa beans are normally stored in form of whole beans in jute bags for a relatively short period. They can be stored for 5 to 6 months safely.


COCOA INVESTMENT SUMMARY
Production
Processing
Export
Storage