Nigeria: Largest African Tomato producer imports Tomato paste

Nigeria is Sub-Saharan Africa’s largest producer of tomatoes and at the same time the largest importer of tomato paste. It is said that the nation consumes more 900,000 tons of tomato paste annually.

The reason for the shortfall in the local supply of tomatoes can not be far-fetched, it is not due to the failure of the farmers to produce tomatoes but the lack of processing plants and storage facilities, hence 75% of locally produced tomatoes get wasted.

So as to meet the demand from the local markets, the Nigerian government now source tomato paste from other countries, these imports mostly come from China and Italy. The imports from China and Italy threaten to completely override the local tomato paste industry if Nigeria fails to come up with measures to step up production and processing of tomato paste.

Imports coupled with the recession which hit the North African country further worsened the situation in Nigeria with companies in the tomato paste industry feeling the negative effects. Most companies have closed shop due and left the country due to the recession that has hit the country. The unfavorable exchange rate has also made it difficult to do business and government has not helped matters at all.

One of Africa`s top tomato paste maker Erisco Foods quit its Nigeria operations to open up shop in Kenya, Cameroon, Ivory Coast and Ethiopia. Erisco Foods had the largest tomato paste processing plant in Nigerian and is the 4th largest in the world. Africa’s richest man Aliko Dangote also shut his new tomato paste plant in Nigeria months after opening it.

Tomato paste is such a big deal in Nigeria as it is widely used in many Nigerians dishes such as the popular jollof rice soups.

Ref: http://www.esaja.com/yesafrican/nigeria-africas-largest-tomato-producer-importing-tomato-paste/

Sokoto state government to train 2 million people on poultry training

The Sokoto Government has revealed plans to train two million people on poultry farming. This was made in a statement signed by Malam Imam who is Media aide to the state governor, His Excellency, Governor Aminu Waziri Tambuwal

According to the statement, the state aims to become the leading state in poultry production in the country and to serve neighboring countries in the near future.

“We hope to increase production of poultry meat and eggs and to provide employment opportunities to citizens through the intervention as well as tackling poverty especially among rural dwellers,” the statement added.

The statement further revealed that an agency which will enable citizens the opportunity to tap from the potentials available in the sector.

The new agency will work closely with all stakeholders which include the Department of Livestock Development of the Federal Ministry of Agriculture and will introduce policy guidelines that would lead to the development of the sector for the benefit of the citizens.

The state government has appointed Alhaji Balarabe Laden as the Director- General of the newly-established Poultry Development Agency.

Kemi Adeosun wants IITA and government to roll out youth agriculture program nationwide

The Nigerian Minister of Finance, Honorable Kemi Adeosun, says the country will benefit by signing up for the African Development Bank funded ENABLE Youth (Empowering Novel Agri-Business-Led Employment) Program.

Nigeria’s signatory to the ENABLE youth program will make the oil-rich country the third African country coming behind Cameroon and Sudan to benefit from funds under the AfDB Feed Africa initiative. . The ENABLE youth program is modelled after the International Institute of Tropical Agriculture (IITA) Youth Agripreneur (IYA) program which has seen a lot of success.

The program is expected to create business opportunities and decent employment for 1000 young women and men along priority agricultural value chains of various enterprises (aquaculture, crops farming, marketing, processing, etc.) per state, including Abuja, the Federal Capital Territory, according to the Director General of IITA, Dr Nteranya Sanginga today.

Mrs Adeosun said that she was inspired and impressed with the concept and the testimonials of the young agricultural entrepreneurs.

“We came here – IITA – to assess a project (ENABLE Youth) being considered by the Federal Government. From what I have seen today, I am extremely impressed and inspired! We should work on how we can roll out this project nationally,” the Minister said during a visit to IITA in Ibadan on 10 June.

Like several other African nations, Nigeria is caught in between rising youth employment and food insecurity. In 2012, Dr Sanginga initiated a youth in agriculture program to serve as a model for African nations to emulate and prosper. Under the model, youths are trained – both in theory and practice—and mentored with a view to changing their mindsets towards agriculture. In the end, they key into startups in the agricultural value chains.

Dr Sanginga said the IYA model was a template that would help African countries tackle the challenge of unemployment on the continent and create wealth.

“We have tested it in IITA, Nigeria, and several countries and it is working,” he said.

Testimonials on how the IYA program is creating jobs, wealth, and transforming agriculture abound. For Mercy Wakawa from Biu, Borno state, the training provided by IYA through N2Africa project funded by the Bill & Melinda Gates Foundation 2 years ago had helped her establish a medium scale groundnut oil processing industry that provides employment for seven other youths and supports the local groundnut industry.

Ajibola Olaniyi leads a team of two other young people who ventured into catfish farming. Without prior knowledge about fish farming but with support from IITA, Ajibola and her team resuscitated four abandoned ponds and later expanded to 17 with a capacity of 150 tons of fish production per year. The expansion of the business also created jobs for short-term staff who work with the team in managing the ponds. The business is growing with clients coming from the various geo-political zones in Nigeria to patronize the products.

TOFAN Foods is a subsidiary of IITA Youth Agripreneurs. The business, which is owned by three young people who were trained under the processing unit of IYA, is producing Tidbit. The snack is made from high quality cassava flour and cowpea. TOFAN Foods has been established in Ijebu-Ode, Ogun State, and will be scaling out the technology learned during the incubation period in IYA.

Oyindamola Asaaju, another Agripreneur, used to serve tables at a restaurant, but after getting involved with IYA, she now leads a group of Agripreneurs in Onne, Rivers State. The group is using the IITA Station in Onne to develop new agribusiness enterprises in poultry, catfish, and micropropagation of plantain, and serve as an incubation center for young people.

Culled from http://reliefweb.int/report/nigeria/nigerian-finance-minister-wants-iita-and-govt-rollout-youth-agriculture-program

Youth Farmers Want Government Support To Boost Food Production

Image result for Concerned Youths Empowerment Association of Nigeria

The CYEAN which stands for Concerned Youth Empowerment Association of Nigeria has called on the Federal Government to support farmers to help the country achieve self-sufficiency in food production.

This call was made by Mr. Noble Adaelu who is the National President of the Association while speaking on the achievements made and challenges faced by the federal government in the past two years.

Adaelu said the youths were yet to receive the needed support from the Federal Government in the area of subsidized farm input supplies and access to low-interest finance.

He lamented that the Government has not included the youths in Agriculture and the programmes outlined by previous governments for agriculture advancement have not been replicated.

He went to further state that if we were serious about advancing our industrial growth, the FG will have to take the lead by calling all the stakeholders in the field. He said the nation can not have a very harmonious approach to it without involving the youths.

“Youths are not being represented. What belongs to us is not given to us. The farm inputs are no longer subsidized, we don’t receive any farm inputs.” Mr. Adaelu said.

The Concerned Youth Empowerment Association of Nigeria is a Co-Operative society that promotes and clamors for the right of youths to enable them to attain agreeable democratic atmosphere.

Ref:http://tungamediang.com/farmers-want-government-support-boost-food-production/

 

Federal Government set to boost sugar production

Image result for Image OF SUgar

ref: AG Scientific

As a way to guarantee self- sufficiency and create jobs in the country, the FG has disclosed plans to increase the level of investment in the sugar industry in order to boost production levels.

This was made known by the Minister of Industry, Trade, and Investment, Dr. Okechukwu Enelamah in Abuja at the mid-term review meeting of the Nigeria sugar master plan.

According to Enalamah, the ministry needs to consolidate on the Backward Integration Policy (BIP) of the Federal Government which began four years ago, to meet the desired results of 70% self-sufficiency target in the next ten years.

He asked stakeholders in the sector to come up with functional and sustainable solutions to the sector’s challenge, hinting on private-public partnership (PPP). He also added that the government will provide the enabling environment for stakeholders to do business.

Dr. Abdullatif Busari who is the Executive Secretary of the sugar Council has the expectation that Nigeria will attain a zero percent importation of sugar by the time the policy has reached its maturity of ten years and that it will be possible for Nigeria to export to other African Nations.

 

Ref: https://agronigeria.com.ng/fg-boost-sugar-production/

Nigeria to start exporting Yam to the UK and USA by June 29

 

 

 

 

 

 

 

The Federal Government has said that come June 29, Nigeria will start to export Yam to the UK and USA. This is seen as a major milestone to be achieved by the current administration.

The is a deliberate attempt by the Buhari administration to rejuvenate the farm produce into the export market after several decades of poor patronage which resulted from poor quality control and subsequent rejection of its agricultural exports due to failure to meet country of destination standards.

According to the Minister of Agriculture, Chief Audu Ogbeh disclosed on Thursday that government had established a number of initiatives and interventions that would enable this happen and that the Presidential Committee on ‘Ease of Doing Business’ would complement this arrangement by dedicating ports solely for agro exports and reinforce checks on the quality of produce from the country for foreign exchange earnings.

“The commitment of government to end the embarrassing rejection of Nigerian commodity and produce at the international market is irrevocable. The health of Nigerians is also paramount and the populace needs good quality food as well. There is nothing like Nigerian or local standards, but international standards to which we cannot but adhere in our local handling of food, consumption and export drive. This necessitated the establishment of the high-level standing inter-ministerial technical committee on zero rejection of agricultural produce, co-chaired by me and my counterpart in the ministry of industry, trade and investment,” the minister said.

He restated his commitment to improving exports through expert handling of fresh farm produce, post-harvest loss management and cold storage adding that the on-going efforts on the ‘conduit of excellence’ is expected to culminate in the development and validation of Standard Operating Procedure (SOP) at a high level specifically for dried beans and other commodities.

 

Reference: https://www.thisdaylive.com/index.php/2017/06/09/nigeria-to-export-certified-yams-to-uk-us/

Going into the palm Kernel oil business

 

 

 

 

 

 

 

 

Crude Palm Kernel Oil (CPKO) which is the by-product of Palm Kernel NUT (PKN) is grown in the tropics. it produces high-quality oil primarily for cooking in developing economies. Aside from being used as an ingredient for cooking it is also used in food products, detergents, cosmetics and to a little extent, biofuel. Unlike the developing countries, the use of palm oil as an ingredient for cooking in the US is small when compared, but other US products like lipstick, soaps, detergent and even ice cream contain the agricultural product.

Palm Kernel Oil is a very productive crop as it offers a higher yield at a lower cost of production than other vegetable oil. The palm oil plantations are spreading across Africa, Asia, and Latin America.

According to a report by index Mundi last year, the production of palm oil was as follows,

Rank Country Production (1000MT)
1 Indonesia                        3,980.00
2 Malaysia                        2,370.00
3 Nigeria                            330.00
4 Thailand                            300.00
5 Colombia                            123.00
6 Papua New Guinea                              60.00
7 Ecuador                              55.00
8 Honduras                              51.00
9 Cameroon                              50.00
10 Guatemala                              45.00

As at April 2017, the price of global price of palm oil (palm kernel oil) was $1,029.00 per Metric Ton.

In Nigeria, the palm kernel oil is indigenous to the riverine/ coastal areas. During the 1960s, Nigeria’s palm oil production accounted for 43% of the world’s production, the reverse is the case today as it only accounts for 7% of total production worldwide. Indonesia and Malaysia have overtaken the world’s production.

THE MARKET

Local Demand

There is a high demand for the palm oil all year round and the demand is always on the rise. Based on the high demand, the buyers sometimes book in advance while some will pay in advance to secure the order.

Export Market

The demand in the international market is very big with Indonesia and Malaysia being the major export countries. One can still export Palm oil and make huge profits. To be able to export palm oil, you should have made the right network of clients who are interested in palm kernel oil. Also, you will need a lot of capital to export.

Machines Needed For Palm Oil Extraction

  1. Fryer/ Dryer: This will fry and roast the crushed nuts.
  2. Nut Crusher:  Crushes the Palm Kernel nuts and reduces it to smaller sizes so as to ease the oil extraction process.
  3. Oil Press: Presses the heated nuts and expels the oil content of the nuts through the oil exit chamber.

If you need more information about how to get into the Palm Kernel Oil business or you need to get your palm kernel oil produce to the market (whether locally or internationally), contact us at tinker and bell and we will be happy to render our services to you.

 

10 ways to market your farm product to consumers

It is no longer news that Nigerians (especially the Nigerian Youths) are falling back to agriculture, partly due to the slump in global oil prices (which has affected the Nigerian economy) and also led to loss and scarcity of employment. The present administration of President Buhari is pursuing an economic policy that is geared towards diversifying the economy with a focus on agriculture.

Whilst it looks easy to dive into agriculture, it goes beyond just producing and selling of farm products. You will need a structure, a farm, a network of distributors to achieve sustainability and profitability.

Regardless of what you are selling, this article will show you how to successfully sell your farm products to the Nigerian consumer.

1. Identify your Market.

Like any other business, you will need to identify your market. Ask questions like,

  1. What does the market want?
  2. Where is the market located?
  3. Who am I selling to?
  4. How do I get the farm products to them?
  5. At what price do I sell?

It is better to know the sort of farm products your market wants and where they are located rather than assume that this is what they want and their location.

2. Join a farm association.

One of the fastest ways to understand the market and be up to date with the latest trend is to be part of numerous farm associations. This association will let you know about current situations and how they affect the farming business in Nigeria. This includes but is not limited to the following,

  1. New market trends.
  2. Potential customers and where they are located.
  3. Government regulations and tax information.
  4. Out of diseases that may affect farming.

The benefits of joining an association include increasing sales as you have the right information and it is also a cost-effective way of staying in the middle of the market trend.

3. Supply to the Food Markets (Retail and Wholesale).

Locating and supplying commercial food markets is a great way of increasing your sales. In such markets, you have thousands of traders who regularly sell farm products ranging from rice to beans, to tomatoes, to yam etc, you can approach them to make them aware of your existence, and offer them a deal that will make them swap their existing suppliers for you. Distributors who are willing to buy at wholesale prices should be sort for as well, this will ensure that your farm products are constantly be ordered for and this will lead to an increase in sales revenue.

4. Supply to Hotels and Restaurants.

Corporate clients like Hotels and restaurants are seen as the big money spenders as they process tons of food items every day. This will require a constant supply of farm products from the supplier. Approaching them to beat the price of their current supplier is a good way to start so far you can guarantee them that the products are fresh and you can get it to them at short notice.

The best corporate clients should be hotels and restaurants of reputable standards.

5. Supply to Brick and Mortar business (stores).

You can approach brick and mortar business like ShopRite and spar. They always require distributors to supply them with fresh farm products which will meet their customer’s high demand. Most of the time, due to excessive sales, most suppliers are unable to meet the demand, hence they are constantly looking for more suppliers.

In order to get a contract from these stores, you will need to convince them that your farm products are fresh, healthy and large enough to cater for their huge demand.

 

6. Supply to Homes & Offices.

You can approach organizations to sell directly to their staff members. Most people are extremely busy at the office and have less time to visit the market. Even on the weekends, you find out that most people have all sort of engagements ranging from weddings and parties. Selling to such individuals is not a bad idea as you will be selling convenience.

When selling to Homes, your target audience will be bachelors, pregnant women and the elderly.

7. Own a Retail store.

You don’t want to share your money with a middle man! That is understandable, you can set up your own retail store to sell your products at the retail price. You should also bear in mind that you will be incurring some fixed cost like employing retail staff members to sell your products, cost of rent, electricity etc.

8. Partner with an online grocery store.

You can partner with online stores to sell your farm products, you will have the opportunity to sell to their over hundreds of thousands of customers. If you don’t have money to set up a retail store, this is a good alternative as this can help you grow sales revenue faster as it cuts across geographical locations.

9. Set up an online store.

Nowadays, hardly do we you find a business without a website. Infact at the mention of your business name, people tend to ask the question, “do you have a website?”, “what’s your website name?”. Setting up a website is pretty straight-forward and simple depending on what you want to achieve with the website. It is good to have a simplified website at first and as time goes by, you can add more features to it.

10. Export your Farm Products.

If you are thinking of earning some foreign exchange, exporting your farm products won’t be a bad idea. For you to get to this point, you should have established links with the international buyers of the farm products. This also requires you export your farm product in large volumes.