FG to transform agriculture sector to employ youths

President Goodluck Jonathan

The Federal Government (FG) of Nigeria has promised to transform the agricultural sector so as to make the sector a wealth creator and able to accommodate youths.

President Goodluck Ebele Jonathan revealed that the present administration is keen on bringing its plans about transforming the agricultural sector to reality.

The president also affirmed the federal government's initiative to promote the subsistence farming to the establishment of agriculture as a very viable modern-day business.

“We have a very large youthful population and to create enough jobs for them we must develop agriculture, solid minerals and other sectors," President Jonathan said, adding that Nigeria has a lot of untapped potentials which would be beneficial to agricultural development.

He expressed delight over the $74 million about N11.7 billion virtually interest-free loan by the International Fund for Agricultural Development (IFAD) in a bid to support the federal government's agricultural programme.

He said Nigeria as well as himself is proud of the good work by IFAD with loans and grants summing up to $225 million for agricultural development in Nigeria since 1985.

 Yinka Awosanya

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Food Price Hike: Effects of importation on Africa

World Food Laureate, Dr. Monty Jones

There have been changing fortunes on food price hikes on the continent. YINKA AWOSANYA examines the effects despite claims that Africa’s major occupation is agriculture.

Introduction:

In Africa, the record is still high when it comes to cost of food importation despite having a higher percentage of the population claiming to be practising agriculture. As such both local and international institutions as well as African governments have been lamenting the effect on the continent’s economic standing, especially long run.

For instance, the global food import bill for the year 2012 was projected to decline to $1.24 trillion, a 3.87 per cent less 2011 record of $1.29; the feasibility of the prediction lies in the increase to be recorded in food productivity in individual countries.

Traceable Facts:

This is traceable to the fact that the youths are not showing enough interest in taking up agriculture due to its unattractive status thereby leaving food production at the mercy of the aged as well as those living in the rural areas to cater for the food needs of all, both those in the urban and rural dwellers.

World Food Laureate, Monty Jones once raised an alarm that crop production in Africa is lagging behind the rest of the world with a very wide gap. This, he said, contributed greatly to the rate of food importation as little produce is not enough to cater for the ever growing population. Noting though that some African countries still export farm produces, but the rate of exportation is insignificant compared to importation.

NaijaAgroNet gathered that one of the stable food exporting countries in Africa, Kenya still imports maize to boost stocks of foods despite recording a big harvest which followed good rains in the last season. The maize imports for Kenya last season stood at 1.05 million 90-kg bags, both from regional and international markets in a bid to supplement food supplies.

Nigeria is not exempted from the food importing countries of the continent despite being the largest producer of cassava in the world, even though most of the cassava produce come from subsistence farmers. For instance, in 2011 alone, Nigeria recorded about N1.59 trillion in the importation of wheat, rice, sugar and fish only.

To curtail the rate of importation, Nigerian president, Dr. Goodluck Jonathan recently revealed an increase in tariff on wheat in a bid to encourage the use of cassava flour in the production of bread which will lead to a drastic reduction in wheat importation.

He also said that Nigeria, in 2012 alone will be making an export of a million metric tonnes of dried cassava chips to China which will work in favour of the economy as the export would earn the nation the sum of $136, about N21.7 billion in foreign exchange.

Factors:

The increase in global food prices in the past few months could be attributed to poor weather conditions leading to low productivity as well as drought and social insecurity.

Various food prices index, especially the Food and Agriculture Organization’s (FAO’s) recent food price index which showed that agricultural commodities from November 2011 to April 2012 indicated an upward movement of food prices globally.

With foods like cereals, sugar, dairy products and meat leading the global food index with high prices, the overall price index rose by two per cent, 7 per cent lower than that of January 2011.

Nigeria records downward trend:

Although maize in Nigeria recorded a downward trend in January 2012; selling 100kg for N5,500 equivalent of $34.08 as against N6,500 in December 2011, the latest peak then. While the global maize price has the highest rate of increase with six per cent, wheat also recorded an increase but less significant despite the improved weather conditions in favour of the crop.

The global food prices could be attributed to poor weather condition affecting crops in major food producing regions of the world and the rate of mechanised or commercial farming compared to subsistence farming as the produce from subsistence farming is not enough to feed the ever growing world population.

Drought and insecurity:

Recent droughts that affected some parts of the world, especially Eastern and Sub-Saharan Africa, hinder global food security as food situation of vulnerable groups of people remained precarious.

The global price of Wheat, for instance, may not witness a sharp reduction in 2012 as its production is expected to drop to 675 million tones, a 3.6 per cent decline; another influence that may also contribute to this is the price of maize.

Due to the critical growing months ahead, crops that might have witnessed a drop in May 2012 may still remain high and vulnerable. Just as the cereal price towards the end of the year might reduce as the United Nations’ Food and Agriculture Organisation (FAO) predicted an increase in cereal production, which is anticipated to reach 2.371billion tones, thereby creating a new cereal production record.

Other agriculture produce to witness an increased production capable of leading to a reduction in their market prices or at least maintain a stable price includes milk with a forecast of 750m tones, a 2.7 per cent growth with the expectations that Asia will account for most of the productions.

While the wholesale price of local maize in Kano State in Nigeria, recorded an increase in February 2012 to N6,300, a 14.5 per cent rise over the January’s price, it dropped again in March to N6,200 and N6,800 in April, just N300 down its peak in seven years; February 2005 it was at N7,100.

Conclusion:

Although Nigerians would have expected a very sharp increase in food price in the country and never to drop from its January 2012 price due to the increase in pump price of petrol with about 50.76 per cent in January as well as the case of insecurity in the northern part of the country.

Yet, food prices did increase but not all food commodities correlate with the 50 per cent rise in fuel pump price, because some commodities did not witness an increase while others get about 20 to 100 per cent rise in prices.

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AEO calls on government to boost job creation for youths

The African Economic Outlook has called on governments across the continent to boost jobs creation for youths.

NaijaAgroNet learnt from the outlook that the population of African youths is expected to double by 2045, giving the continent one billion workforce and making it the largest globally.

The AEO also urged the government to provide employment opportunities and ensure a political process that would allow the youths to express their views towards policy changes in order to prevent instability in the continent.

“This is an opportune time to reset the policy agenda of African governments towards an inclusive, employment-creating and sustainable growth strategy, aimed particularly at addressing the special needs of the young,” the outlook reads in part.

The current trend of education on the continent, NaijaAgroNet gathered will result to 59 per cent of 20-24 years old with secondary education by 2030 as against the present 42 per cent and by 2030 there would be 12million African youths with tertiary education.

NaijaAgroNet recalls that the International Labour Organisation (ILO) revealed recently that 73million jobs were created between 2000 and 2008 with 16 million targeted at populations between 15 and 24 years of age, leading to unemployment of youths in informal jobs.

Yinka Awosanya

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OYES drafts 600 youths into agric programmes

The Osun state Youth Empowerment Scheme (OYES) has drafted over 600 of its members into the Osun Rural Enterprise and Agricultural Programme (O-REAP) as disengagement programme for members of the cadets.

Mr. Wale Adedoyin, the state Commissioner for Agriculture and Food Security said the drafting of OYES cadets is in a bid to boost government’s intervention in the agricultural sector.

NaijaAgroNet learnt that Osun State government would provide soft loan as well as allocate land for beneficiaries of O-REAP Youth Academy.

The commissioner also said that the fear by members of the OYES cadets on the proposed disengagement programme led to the land allocation and soft loans.

Adedoyin further revealed that a sum of N476.35 million has been disbursed to 3,535 farmers under the Government Guaranteed Agricultural Loan scheme, while N45,662,965.00 was disbursed as O-REAP loan to 268 farm families across the state.

Admin/LS

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Capacity trends in Nigeria’s agro value chain

Ordinarily, a value chain depicts a chain of activities for a firm operating in a particular industry, like agriculture.

Typically, the agriculture activities very often start with the search for seedlings, followed by the fertilizer acquisition after the clearing of farm lands, only then can the seedlings be planted.

Nowadays, there are various sets of people who specialize in various farming including clearing of lands and in the eastern Nigeria, those are known as the ‘Abakalikis.’ They are also useful during the harvest seasons, according to Madam Okwy, rice farmer at Awba-Ofemili in Anambra State.

She says, another value chain of note are those who put the seedlings on the grounds or cleared farm land for such purposes and those usually coming from neighbour towns, where either wages for farm workers are very low or lack the relevant arable lands. These set of workers go to their home towns as soon as the planting season is over, but once its harvest time, they return.

The food industry has been severally described as a complex, and a collection of diverse businesses that congregate to supply much of the food energy consumed by the world population.

Therefore, it is pertinent to state that though subsistence farmers; those known to grow for self or mere family survival could be considered outside of the scope of the modern food industry, because their original plan was not to engage in large scale farming for commercial purposes.

So, food industry  could be rightly said to involve several stages including regulation at different levels; be it local, regional, national and international rules and regulations for food production and sales, consist of food quality and food safety, and industry lobbying activities.

And to unlock the potential of agriculture to create jobs, the Minister of Agriculture and Natural Resources, Dr. Akinwunmi Adesina, disclosed that there is need to engage the energy, dynamism and entrepreneurship of the youth.

Adesina said that the President Goodluck Ebele Jonathan’s administration no longer treats agriculture as a development programme, declaring that the goal of the government is to treat agriculture as a business and to make the nation an agriculturally industrialized economy.

To this end, he said that under the Agricultural Transformation Agenda, this administration intends to add some 20 million tonnes of food to the domestic food supply with the creation of 3.5 million jobs in all the agriculture value chains before the end of year 2015.

Subsistence farming, he noted, is not viable to feed a nation, hence the importance of expanding the level of use of tractors in the country to boost the agriculture investment by small, medium and large scale farmers.

According to him, agriculture sector is the fastest in terms of employment generation, thus has the capacity to change the trend of economic growth in the country.

Adesina in his remarks at the Ekiti State’s Youth in Commercial Agribusiness Development Programme recently, noting that Governor Kayode Fayemi’s decision to involve the state’s youth in agriculture deserves commendation.

To raise the level of use of improved seeds, Adesina said his Ministry financed the entire seed supply for the country which amounts to N2.7 billion for the 2012 season, adding that the finance, is not from the government but the use of guarantees for banks to lend to seed companies.

Also, he affirmed that the Federal Government was able to secure financing for the supply of fertilizers for 2012, at the level of N27 billion from commercial banks using guarantees from the Ministry of Finance.

In a related development an agreement to establish and implement an agricultural development project was signed by Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Voluntary Services Overseas (VSO).

Alhaji Muhammad Nadada Umar, SMEDAN Director-General said the agreement, tagged SMEDAN-VSO Agro-Enterprise Project, is to engage women and youths between the ages of 18 and 35 years in agrobiz.

NaijaAgroNet learnt at the signing session that the agreement combines expertise of both bodies would add tremendous value to the development of Micro, Small and Medium Enterprises and the nation’s economy.

The pilot programme, Umar revealed would be established in four states; Nasarawa, Ondo, Kaduna and Cross Rivers States. Pointing out, “Our organizations both share the same values in respect of assisting disadvantaged people. SMEDAN, as a gender-sensitive organization, with our high level of professionalism, has a lot to offer to this nation.”

It was not surprising therefore that a multi-million Naira assembly plant was being targeted, a North American company, AGCO which specializes in manufacturing of agricultural equipments, in anticipation of Nigeria’s dream to grow the sector with 300,000 within the next three years.

AGCO, DigitalSENSE News gathered, offers a full product line including tractors, combines, hay tools, sprayers, forage equipment, groundscare and implements through more than 8,500 independent dealers and distributors around the world.

DigitalSENSE News investigations also revealed that AGCO is likely to provide this number of tractors through its worldwide retail financing scheme known as Agricredit joint venture.

Experts at Investopedia says joint venture is the cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise. Describing it as a good way for companies to partner without having to merge and are typically taxed as a partnership.

Affirming this development, Dr. Adesina, emphasised that AGCO is the largest manufacturer of Marcy Ferguson tractors globally and that Federal Government has advanced strategies for the establishment of assembly plants in the country following a discussion with the manufacturer in April.

“Nigeria needs at least 300,000 tractors, to enable our youth to get into agriculture as a business,” he declared, pointing out that already the Nigerian government has concluded farmers’ census, while introducing an agric-wallet and employment of 36 agriculture directors, who have been deployed nationwide at the state capitals.

As we look forward to a better youth empowerment with all these laudable government programmes, it is high-time to walk the talk, while the Universities of Agriculture across the country should take up adequate research initiatives on agricultural related products for better production at the end of every farming season.

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AGCO to establish multi-million tractor factory in Nigeria

   A multi-million Naira assembly plant is being targeted by North American company, AGCO which specializes in manufacturing of agricultural equipments, in anticipation of Nigeria’s dream to grow the sector with 300,000 within the next three years.

AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage equipment, groundscare and implements through more than 8,500 independent dealers and distributors around the world.

DigitalSENSE News investigation reveals that AGCO is likely to provide this number of tractors through its worldwide retail financing scheme known as Agricredit joint venture.

Experts at Investopedia says joint venture is the cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise. Describing it as a good way for companies to partner without having to merge and are typically taxed as a partnership.

Making this disclosure recently, the Federal Minister in-charge of Agriculture and Rural Development, Dr. Akinwunmi Ayo Adesina, noted that AGCO is the largest manufacturer of Marcy Ferguson tractors globally.

He also stressed that FG has advanced strategies for the establishment of assembly plants in the country following a discussion with the manufacturer in April.

“Nigeria needs at least 300,000 tractors, to enable our youth to get into agriculture as a business,” he declared.

Equally speaking in Abuja, Dr. Adesina reiterated the resolve of the Federal Government, pointing out that already the Nigerian government has concluded farmers’ census, while introducing an agric-wallet and employment of 36 agriculture directors, who have been deployed nationwide at the state capitals.

AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage equipment, groundscare and implements through more than 8,500 independent dealers and distributors around the world. AGCO provides retail financing worldwide through its Agricredit joint venture.

DigitalSENSE News gathered that historically, AGCO Corporation has its roots in the North American farm equipment industry with its heritage reaching as far back as the mid 1800’s through many of its brands. However, its direct lineage is from the Allis-Chalmers brand name.

Also, in 1990 KHD sold its Deutz Allis division to AGCO and ever since, the company has become a world-wide farm machinery company through market growth and strategic acquisitions.

Today, AGCO prides itself with sales of approximately USD$7 billion, about N 1,104,949,957,275.39 trillion, and AGCO is listed on the New York Stock Exchange under the symbol AG.

 

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Outlook calls on government to boost job creation for African youths

The May edition of the African Economic Outlook has called on African governments to boost jobs creation for youths on the continent.

NaijaAgroNet gathered that the population of African youth is expected to double by 2045 giving the continent one billion workforce and making it the largest globally.

To this, the Outlook urged the government to provide employment opportunities and also ensure a political process that would allow the youths to express their views towards policy changes in order to prevent instability on the continent.

"This is an opportune time to reset the policy agenda of African governments towards an inclusive, employment-creating and sustainable growth strategy, aimed particularly at addressing the special needs of the young," part of the Outlook made available to NaijaAgroNet reads.

The current trend of education on the continent, NaijaAgroNet further gathered will result to 59 per cent of 20-24 years old with secondary education by 2030 as against the present 42 per cent.

Yinka Awosanya/LS

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