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The low value addition in Nigerian agriculture has seen the sector operate far below its potentials, where produce which get sold is valued less than what would have been obtained if some processing was done.
The situation has seen value of agriculture not only lower than could have been realised, but also contributing to high post harvest losses.
“The value chain aspect is (ironically) where the wealth actually lies,” says Tunji Falade, CEO, Kingsway quality foods.
Falade explains that “The configuration of our methodology of operation must change from now on. Over time, the value chain (addition) aspect has been neglected, while the agronomy and farming aspects have been emphasised.
“If we don’t focus adequately on agro processing, we will continue to have post-harvest losses. The problem has never been production as farmers have always produced all along and losses have always followed. But, the truth of the matter is that agro processing companies are rather few in number, whereas we are supposed to have them scattered across all states of the federation, processing agro produce into finished goods and even exporting them.”
“Since we are even having issues with forex now, this should even be the time to add value to agric produce and export them,” Falade adds.
Godwin Umeaka, Managing Director, Coscharis Farms also expressed the view that “Agricultural production can only truly become wealth through adequate processing.”
“Under the CBN agric scheme (at a time) it had given out 1.9bn to farmers but nothing for agro processing, whereas the industrialisation we are talking about actually needs to start from there,” said Umeaka.
Stakeholders in the agric value chain, are also unanimous in their submission that government needs to match its words with action going forward.
Adeola Elliot, Chairman of the Agric Group at Lagos Chamber of Commerce and Industry had told BusinessDay “For the past years, the various governments have just been mouthing diversification. They have just been talking, but nobody is doing anything significant in the real sense of it.
At Federal Institute of Industrial Research, Oshodi (FIIRO) for instance, they are to help, and support value addition to agric, they are for designing of equipment (in processing). But this is an institution that is there, the money that is to be used for research and development is not made available to them; the place has just been there. The average value added person in the agric sector is just struggling.”
Umeaka however seems optimistic on his part, saying “with the new position of government on agriculture, there may not be much of post harvest losses (next year) because what farmers produce are being taken either by off takers or (they get other form of) ready market for their products. So in terms on marketing and distribution of products they may not suffer many losses.”
He however also remarked that “Infrastructure has to be properly upgraded and maintained which is a critical factor in the movement of goods so that farmers will not have to pay through their nose to transport their goods from the farm.”
“They also need to sustain the fight against illegal importation of goods into the country by securing the borders effectively,” said Umeaka.
CALEB OJEWALE
