Why Investing in Agriculture is Important

 

 

 

 

 

 

 

 

 

 

 

 

Hello readers,

As human beings, we are constantly seeking for a better life, and to many of us, a better life can mean a lot of things. But as a people, we often overlook the first job man ever did (if we go according to the bible) which is agriculture. Do you know that agriculture gave birth to different types of jobs?

Agriculture is ensuring that edible food is being produced and if man didn’t cultivate the land to produce food, people will starve and die of hunger. Even Abraham Maslow in his theory of motivation listed food as one of the important motivator. Let’s be honest, everyone needs food to start the day and if not at the start of the day, at some point during the day, man must eat.

With a population of over 180 million and an area covering 923,768 km2, Nigeria offers an investment opportunity to anyone who is seeking to invest in the agricultural sector. Aside from local distribution, agricultural produce can be exported to other countries. The GDP from Agriculture in Nigeria increased to 3745091.59 NGN million in the second quarter of 2017 and is expected to reach 5270000.00 NGN million by the end of the 3rd quarter.

The government is currently putting policies in place that will motivate investors to come into this sector. This is the time to come into the agricultural sector as not only will you be making money but will also be providing food to Nigerians.

FG to Optimize Aquaculture For Economic Wealth and Job Creation – Lokpobiri

The Honourable Minister Of State for Agriculture and Rural Development, Sen. Heineken Lokpkobiri has attended a high level meeting of key leaders and Ministers of Fisheries and Global Seafood Sectors in Iceland.

The concept of the meeting in Iceland is to further enhance the blue Bio-economy, with the aim of optimizing economic use of our oceans and aquatic resources. The theme of the meeting was “ promoting the Blue Bio-economy, making best use of ocean opportunities”. The meeting was organized in collaboration with the Food and Agriculture Organization of the United Nations (FAO).

Senator Lokpkobiri who led the Nigerian delegation, in his submission said the present Administration of President Muhammadu Buhari has greatly expanded her political momentum that has resulted in the development and promotion of the implementation of the backward integration in aquaculture, thereby increasing wealth creation, economic gains and happy individuals and families in Nigeria today.

The minister said the background and objective of the forum on Bio-economy has over the last decade become a widely used term in global policies which are related to various issues such as food security, sustainable production, and energy needs.

The Blue Bio-economy is the blue sector of the economy, focusing on initiatives and applications being applied in fisheries and fish processing, aquaculture, coastal tourism, marine Biotechnology and other related sectors.

The concept of a “blue economy” came out of the 2012 Rio + 20 conference, this has played an important role in achieving the post-2015 Global Sustainable Development Goals (SDG’s).

The world seafood congress 2017 attracted over 500 seafood professionals from around the globe. There were international expert ,speakers, keynote presentations and industry specific fisheries presentations, panel discussions and workshop sessions.

Lere-Adams, A.B

Acting Director (Information)

FMARD

18-09-2017

Source: http://fmard.gov.ng/fg-optimising-aquaculture-for-economic-wealth-and-job-creation-lokpobiri/

The Prices of Cassava stems reduced by 67%

The price of cassava stems has dropped drastically to N400 per bundle after reach a high of N1200 as demand eases in Nigeria.

In 2016 and earlier 2017, the prices of cassava roots and its derivatives such as garri climbed to an all-time high as demand was higher than supply.

Researchers are still expecting data on demand and supply from the National Bureau of Statistics, but cassava roots moved from N13,000 per ton to about N40,000, according to local buyers.

Cassava is an important crop in Nigeria and the roots are processed to starch, ethanol, flour, and garri—a staple. Other uses include akpu, and lafun. In some communities, the root is boiled and eaten directly.

In 2014, about seven million hectares were planted with cassava, according to the Food and Agriculture Organisation.

Most of the varieties planted to cover this hectarage were from the informal sector, says Peter Kulakow, Cassava Breeder with IITA who is also working on the cassava seed systems project.

The Nigerian cassava seed system is not well structured, an arrangement that the project—Building an Economically Sustainable Integrated Seed System for Cassava (BASICS) – is trying to correct.

 

Source: http://www.premiumtimesng.com/agriculture/agric-news/243196-prices-cassava-stems-reduce-67.html

Nigeria GDP From Agriculture 2010-2017

GDP From Agriculture in Nigeria increased to 3745091.59 NGN Million in the second quarter of 2017 from 3385600.83 NGN Million in the first quarter of 2017. GDP From Agriculture in Nigeria averaged 3687637.99 NGN Million from 2010 until 2017, reaching an all time high of 5035069.06 NGN Million in the third quarter of 2016 and a record low of 2594759.86 NGN Million in the first quarter of 2010.

HISTORICAL

Nigeria GDP From Agriculture

Quarter 3 Forecast

GDP From Agriculture in Nigeria is expected to be 5270000.00 NGN Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP From Agriculture in Nigeria to stand at 3687757.53 in 12 months time. In the long-term, the Nigeria GDP From Agriculture is projected to trend around 591000.00 NGN Million in 2020, according to our econometric models.

Nigeria GDP From Agriculture

Source: https://tradingeconomics.com/nigeria/gdp-from-agriculture

Borno Farmers are expecting a bumper harvest

Nigerians are happy that the economy has come out of recession and so are the Borno farmers who are more than excited that they will be getting a bumper harvest this season.

Borno farmers have expressed optimism that they are set to record a bumper harvest in the 2017 cropping season. They commended the Food and Agriculture Organisation (FAO) for supporting displaced farmers to return to their farms.

According to a report by the News Agency of Nigerian (NAN), thousands of displaced farmers supported by FAO cultivated their farmland in Maiduguri and other liberated communities.

Some farmers in Maiduguri and Jere Local Government area told NAN that they were happy and anticipating bumper harvest this season.

FAO also partnered with other implementing partners to distribute seeds and fertilizers to more than one million farmers this cropping season in the North East.

It was also gathered that the military also helped in safeguarding the farmlands as Borno state has been devastated by Boko Haram attacks.

 

 

 

 

 

Farmers tells Federal Government to ban Maize Importation

On Tuesday, the Nigeria Farmers Group and Cooperative Society (NFFCS), urged the federal government to come up with a time line to ban the importation of maize into the country.

Redson Tedheke who is the group’s National Coordinator said in an interview with the news agency of Nigeria that the ban will protect local farmers which will directly boost local production of the Agric produce.

According to him, the only way you can encourage local farmers to produce more of maize is to protect them by banning the importation of maize which can be produced locally into the country. “you cannot tell people to go to the farm and then allow massive importation of the same thing they are conveniently producing. we feel the insincerity of purpose, and we are telling the government that if you allow continuous importation of maize, you are actually working against those you urge to go to the farm. The Nigeria farmers group, have 2000 hectres of maize farm across the nation, and it is still cultivating more,” he said.

He also said that some Agro-businesses in Nigerian were importing large quantities of maize at relatively “low landing cost”. Although maize is not currently on Nigeria’s import prohibition list, there is a need to curb excessive importation to protect local producers. An action that will help the economy to grow from within.

If Government does not step in quickly, local production of maize will be eradicated and lost to importation which will cause more harm to the nation’s economy as jobs and internally generated revenue will be eroded.

An example Mr.Tedheke gave is a company that shipped in a huge vessel of maize from abroad to be sold at about ₦40,000 per tonne while locally produced maize is between ₦130,000.00 and ₦250,000.00. What this means is that it is cheaper to buy imported maize than buying locally produced maize.

He noted that the cost of imported maize was relatively low because the government of those countries that maize was imported from provided the necessary support and protection to their farmers.

He said if the group is properly supported, it has the capacity to produce 50,000 tonnes of maize quarterly.

“The India government, for example, subsidised agriculture by providing tractors, seedlings, funding and other relevant support and that largely reduced the cost of production for its farmers.

“If the Nigerian government does not want the price of locally produced maize to go beyond a certain level, let it subsidise its production in the best interest of our economy.”

The Nigeria Farmers Group and Cooperative Society is a rural community-based farming initiative with farms spread across Nigeria and its mission is `farm to feed Nigeria’ and creates employment in the process.

ref: www.premiumtimesng.com

Why you should consider Agriculture as an area of Investment

Ever since the international market price of crude oil started diminishing at a rapid rate, various countries including Nigeria have focused their energy on developing other sectors whose input will help drive revenue.

The government of the day understands that if the country does not diversify the economy, it might face a serious economic meltdown, hence its focus on agriculture.  Agriculture has the potentials of giving the investor high returns and also help contribute immensely to the GDP of the country

As providing huge revenue to the investor and country at large, it also helps in reducing the unemployment rate. Those who key into the agriculture business early enough will be the greatest beneficiaries in that industry as they will be industry leaders in the near future.

The reasons to venture into the agricultural sector are listed below. Note there are more reasons, but we feel the ones mentioned below are important.

A Gold Mine for the smart ones.

Smart entrepreneurs should invest in comprehensive market research to know the agricultural products that are fast selling and the ones that are not selling, the ones that will make you a lot of money and the ones that won’t. It is important to know the level of demand for these agricultural products and know if supply is limited or not. Ability to identify a niche agricultural product will help the investor get a higher ROI before that aspect of agriculture becomes saturated.

The Government policies are favoring agriculture.

As the government is preaching diversification of the economy, especially diversification into agriculture. The government wants to grow the economy from other sectors aside from the oil sector therefore, they are putting up policies that will make doing business in this area easy and investor friendly. It is wise to take advantage of this friendly policies now before it changes.

Demand for food products

People will always be hungry, hence the soaring demand for food. Since the demand for food is high, investors will be sure to reap the reward of their investment. In a country of over 190 million people, making money from this sector is guaranteed.

Land Appreciation

Over the years, the land you use for your agriculture business will appreciate over the years in value. Not only do you make only revenue from your product, but your net worth also rises as the years passes by. One way or the other, you win.

Employment 

With the high rate of unemployment, investing in agriculture will definitely drive down the unemployment rate

 

Before the everyone jumps onto the band wagon, it will be smart to be one of the early birds who take advantage of investing in the agricultural sector.

Low Cocoa Production not acceptable- Buhari

President Muhammadu Buhari has said that time has come for Nigeria to take its rightful place again in Cocoa production; to reduce over reliance on already shrinking oil revenues, adding that the continued decline of the commodity will no more be acceptable.

Buhari noted that before now, cocoa was the second largest foreign exchange earner for Nigeria after crude oil where over two million direct and indirect jobs were created along the value chain.

He said: “It is unfortunate that the sector has suffered neglect as a result of over reliance on crude oil, this has also unfortunately led to decline in the country’s annual production from 420,000 metric tonnes in the 60s to 192,000 metric tonnes in 2015, a situation that is no more acceptable to government.”

The Nigerian President said this on Monday in his keynote address to the opening ceremony of the First International Cocoa Summit holding in Abuja.

Buhari, who was represented by the Minister of Agriculture, Audu Ogbe, said government is very worried that the decline of Cocoa has moved the nation from her 4th position to 7th position in global Cocoa production.

He said that the country is long overdue to make the shift from being primarily an exporter of commodities and raw materials to becoming an industrial economy.

“Our Industrialisation ambition is hinged on the Nigerian Industrial Revolution Plan (NIRP) launched by the previous government of President Goodluck Jonathan in 2014; it is now time to move that comprehensive document from the Economic Recovery and Growth Plan (ERGP) in view of current realities.”

He appealed to Nigerians to patronise made in Nigeria goods and services as a way of encouraging the industries to grow the economy.

He called on the organisers of the summit to use it as a vehicle to instil confidence in local and foreign investors to invest in the Nigerian economy, and create a more robust and better competitive market for Cocoa subsector.

Earlier in her address, the Minister of State, Industry, Trade and Investment, Aisha Abubakar, said the theme of the summit, “Cocoa a Strategic commodity for National Economic Development,” underpins the nucleus of the present administration’s change Agenda. This intends to continue with policies aimed at diversifying the nation’s economy away from a mono-economy dependent almost entirely on revenue from oil exports to Agriculture, solid minerals and services.

 

 

Source: https://www.today.ng/news/nigeria/8909/decline-nigerias-cocoa-production-acceptable-buhari

Osinbajo commissions Edo State Fertilizer plant today

 

The Vice President, Prof. Yemi Osinbajo commissioned the Edo state fertilizer plant today. The plant which was originally built by the Lucky Igbinedion administration was  rehabilitated by WACOT limited in collaboration with current state government which is been led by Governor Godwin Obaseki

This commissioning in line with the Federal Government’s actualization of the Presidential Fertilizer Initiative (PFI) which was launched in 2016 by President Buhari as part of the administration’s drive towards achieving self-sufficiency in the area of food and economic diversification through agriculture.

The rehabilitation of the plant is also part of the current governor’s Accelerated Agriculture Initiative designed to support and actualize the job creation and food sustainability vision of Federal Government through Public Private partnership (PPP).

WACOT Limited is a company that leads the market in agro-processing, manufacturing, and distribution of certified agriculture inputs including seeds, fertilizer, pesticides, etc

The plant is located at Auchi in Edo State.

Agriculture will take Nigeria out of Recession: VP Osinbajo

 

 

Speaking at the inauguration of the Multi-Billion Naira Agro Green House farm in Taraba State, Vice President Yemi Osinbajo said that agriculture is the sector that will pull Nigeria out of the current recession as it has the potential to permanently take the country out of this economic situation.

He said that “the green house project I have seen today is a victory for science and technology in the development of agriculture in the country. It is one of the smartest ways of producing vegetables and with it, Nigeria would meet its vegetables needs and export to other African countries,”.

He added that agriculture is one of the major ways of creating quality jobs for the youths and this will help reduce youth unemployment.

The Agro Green House Farm project was initiated and constructed by Governor Darius Ishaku and the VP commended him for seeing this project through.

Governor Ishaku in his speech said that agriculture which is the backbone of the state, stating that Taraba State has the capacity to produce rice which will meet the demand for the whole nation.

He also went on to say that out of the entire 54,473km land mass of the state, 30,000 km is suitable for sugar and rice plantation and that the state government will require about N30 billion to achieve its objective in the production of rice.

The governor also said that the Green House Project is already supplying high-quality vegetables to major cities like Lagos, Abuja, and Kaduna and has employed 500 agriculture graduates in the state.