Stories by Steve Agbota
The demand for poultry products both for meat and eggs is rising every day in emerging economics, and the measured increase in the standard of living in Nigeria. However, the threat of smuggling is still affecting the business.
Poultry farming brings in lots of income, boosts the country’s economy, creates business opportunities for entrepreneurs, provides employment for job seekers and it is the kind of business that gives consistent returns.
Today, Nigeria poultry business under agric sector is valued at over N1trillion, which is expected to increase significantly if it gets the required support from the government. Nigeria is regarded the number one producer of eggs in Africa with over 11 billions eggs per annum, while it occupies 4th position as the meat producer in Africa.
Poultry farming is so profitable in that a good poultry farmer earns above N15 million per annum depending on the size of the farm and how properly managed it is. A lot of benefits are open to potential farmers wishing to start their own poultry farms today and poultry faeces can be sold as organic fertilizers to farmers and used as another income source to secure the future of the business.
According to Poultry Association of Nigeria (PAN), Nigeria is positioned to be the net exporter of poultry products but the government and the industry needs to work closer together to achieve this objective. Despite its huge potential, the poultry industry is still fighting for survival due to threat of smuggling and shortage of raw materials, which stakeholders described as major challenges facing the sector.
The menace of smuggling has hurt the poultry business so much so that chicken illegally imported into this country is valued at N700 billion annually. In order to address the issue, Nigerian Customs Services recently launched “Operation Hawk Descend,” an anti-smuggling effort.
Speaking with Daily Sun, the President of Poultry Association of Nigeria (PAN), Dr. Ayoola Oduntan, said Nigeria was losing about N700 billion annually in revenue to smuggling of poultry products, which could have been used in developing the local production for local consumption and exportation, saying that such amount could have also been a source of foreign exchange for the country if the importation is restricted to manage the economic recession in the country.
He said that the ban of imported poultry products in Nigeria would create hundreds of billions in the economy in revenue and increase employment to almost 1million jobs within two years. He said that the government was trying in terms of support but needed to be quicker in its action in terms of creating enabling environment and policy implementation.
Poultry sector is gaining international attention as countries like Netherlands, China, India, Israel, Spain and England are regular participants in its annual National Poultry Show, as 2016 edition is billed to hold in Abeokuta between November 29 and 30 with the theme; “Sustaining the Poultry Industry in an Economic Recession.”
Oduntan lamented how government’s forex policy is restricting some of them from getting 20 per cent of their raw materials, which could not be sourced locally. He noted that Nigeria could not meet its target in manufacturing just because of the 20 per cent raw materials some producers could not import because of forex restriction.
The Managing Director of Deens Oil, Kaduna, Alhaji Abdulkadir Manzo, said exportation of Nigerian raw materials has also seriously been affecting local production leading to scarcity and high cost of major foods in the country. Citing poultry feed as example, Manzo said the exportation of soya beans and maize for forex would continue to have negative impact on the local production, as increased world demand for feed grains have resulted in unprecedented feed price increases beginning from last year.
According to him, export of raw materials should be done when there is excess after local production in order to encourage those that are adding value locally.
He said, “If feed millers are receiving raw materials, maize, soya at a high cost then it means that the feed price already is not in the making of the manufacturer, the entire cost of production will go up. The Federal Government should ensure more production of these critical raw materials if it must export them so that there is enough for local industries to manufacture. This will help re-distribute wealth and create more economic opportunities for Nigerians as a whole.”
Agric-tech entreprenuer demands duty waiver on tractor parts
Country Manager, Dizengoff Nigeria, Mr. Antti Ritvonen, has appealed to the Federal Government to consider the semi knocked down tractors for 0 per cent duty, as it will create job opportunity for Nigerians.
Ritvonen who made the appeal at a one-day Farmers’ Field Day event organised by Dizengoff Nigeria Ltd, member of the Balton CP Group (UK) in collaboration with Phinada Integrated Farms recently in Abuja, where farmers experienced first-hand fresh produce from greenhouse technology, known as the Dizengoff Farmers Kit.
He said currently tractors that are imported as semi knocked down bear a 35 per cent duty, while fully built and fully knocked down tractors have 0 per cent duty.
He added: “however, duty regulation encourages that most of the tractors that are imported into the country are fully built and this in our opinion will not create employment for Nigeria. Previously, most of the tractors we imported to Nigeria, were semi knocked down and this helped in creating jobs for Nigerians at our assembling centre.” In the quest to get its economy back on track and to be among the top 20 developed economies in the world by 2020, he noted that government needs to continue to provide an enabling environment by formulating and implementing policies that would make the agriculture sector self-sufficient and private sector-driven.
According to him, that way, lots of employment opportunities would be created for Nigerians by Nigerians and there would in turn be an appreciable reduction of youth involvement in crimes.
Therefore, to ensure the agricultural sector grows at the rate envisioned, into the self-sufficient and private sector-driven model, he urged government at all levels to embrace the greenhouse technology as a way of boosting the sector by encouraging banks to provide loan facilities at single digit interest rates for Nigerians to engage meaningfully in the production of high quality and even exportable vegetables, after meeting domestic needs, thereby boosting the economy of the nation.
He said: “We believe the Dizengoff Farmers Kit offers a great opportunity for job creation, youth empowerment and increased food security for Nigerians through the horticultural value chain. We also believe that if and when the issue raised above is addressed, the environment would become more conducive to encourage more participation from the private sector, as more farmers would begin to grow their crops for both local and international markets using the greenhouse technology.”
WEPCCOM to embark on agric business project in Lagos
The World Economic Power Chamber of Commerce (WEPCCOM) had concluded plans to embark on agricultural business empowerment programmes in all the local government areas in Lagos State.
Mr. Jude Onumajuru, the President of the association, who disclosed this in Lagos, said that the date would soon be announced, adding that the gesture was to empower and engage more youth and farmers in agro-dollar business, where they would be exposed to millions of business opportunities in the sector.
Onamajuru advised Nigerians to see the present economic woes in the country as a golden opportunity to retrace their step into agriculture business.
“Agriculture is the number one option left for the country to replace the dwindling oil revenue and should not be taken with levity. The chamber will extend its sensitisation programmes for farmers and unemployed youth to all the local government areas in the state. This will serve as an avenue for farmers to showcase their products and expand their business network to the world. The chamber would be organising an end of the year carnival, which would last for seven days.”
Anchor borrowers programme crashes rice price to N13, 000 –CBN
From George Onyejiuwa, Owerri
The Central Bank of Nigeria (CBN) says the agricultural initiative, ‘Anchor Borrowers Programme’ recently launched by the Federal Government has led to significant reduction in the price of local rice.
Mrs Nkechi Osuji, the Head Development Financing Department, CBN Owerri branch made the disclosure at a sensitisation workshop organised by the office of Executive Assistant to Governor Rochas Okorocha on Human Capacity Development and Poverty Alleviation at the weekend in Owerri, she said as a result of the new agriculture initiative, a 50kg bag of local rice now sells for N13,000 in some states that have embraced the anchor borrowers programme.
She said if more states join the agricultural development programme, and the progress being recorded in the rice cultivation is sustained, the billions of Dollars spent on importation of agricultural produce especially rice would be saved.
Osuji told the participants that CBN, the Bank of Agriculture, the Bank of Industry, commercial and micro-finance banks have provisions to finance agricultural activities, and advised participants to embrace the programme as it is capable of creating thousands of jobs as well as boost the overall development of the nation.
Also, Mrs Ngozi Iheancho, the Imo State Coordinator of National Directorate of Employment (NDE), commended the initiative and urged participants to take the programme serious.
She said that NDE in the state was ready to support the programme and advised against what she called involvement of `ghost farmers’ in the programme.
“Let there be no ghost farmers and unnecessary bureaucracy in the implementation of the programme in Imo because if this programme is genuinely executed, a lot of jobs and wealth will be created in Imo’’, she said.
Dr. Edwin Uche, the Executive Assistant to Gov. Okorocha on Human Capacity Development and Poverty Alleviation said the event was organised for small holder farmers, cooperative societies, youths and women groups drawn from each local government areas of Imo.
Uche said the state will expose farmers to grow rice, cassava, and maize, noting that the short and long term target of the programme is to create more than 1,000 SMEs and more than 100,000 jobs before one year.
Uche who hinted that large expanse of land have been provided to drive the scheme in parts of the state explained that the programme would scale up the infrastructural base and human capital of Imo people if fully embraced.
WEPCCOM to embark on agric business project in Lagos
The World Economic Power Chamber of Commerce (WEPCCOM) had concluded plans to embark on agricultural business empowerment programmes in all the local government areas in Lagos State.
Mr. Jude Onumajuru, the President of the association, who disclosed this in Lagos, said that the date would soon be announced, adding that the gesture was to empower and engage more youth and farmers in agro-dollar business, where they would be exposed to millions of business opportunities in the sector.
Onamajuru advised Nigerians to see the present economic woes in the country as a golden opportunity to retrace their step into agriculture business.
“Agriculture is the number one option left for the country to replace the dwindling oil revenue and should not be taken with levity. The chamber will extend its sensitisation programmes for farmers and unemployed youth to all the local government areas in the state. This will serve as an avenue for farmers to showcase their products and expand their business network to the world. The chamber would be organising an end of the year carnival, which would last for seven days.”