Output in the foods and beverages sub-sector will likely drop owing to the invasion of army worm, a pest destroying maize crops that is a key input in some manufacturing companies.
The implication is that farmers who are suffering from low output occasioned by harsh weather may be heading for the worst, while manufacturers that utilised maize as an industrial raw material will experience low productivity.
Analysts said last night that unless government intervenes, current efforts at diversifying the economy may be jeopardised.
However, the Ministry of Agriculture and Rural Development says there is not cause for alarm as the situation is under control.
Nigeria is Africa’s largest maize producer before South Africa, churning out about 10 million metric tons per annum.
Besides, maize is the leading cereal grown in Nigeria, closely followed by sorghum and rice.
Like Tuta Absoluta currently ravaging tomato crops, army worm is now hitting maize crops in the South-West region, and has spread to Edo and Kogi states.
However, the Ministry of Agriculture and Rural Development says there is no cause for alarm as the situation is under control.
Manufacturers and analysts say this could hit producers of feeds, flour, noodles, biscuits, brewers, starch, confectioners, among others, who use maize as a raw material for their production.
“It will basically affect flour millers and producers of feed stocks,” said Tunde Oyelola, vice chairman of PZ Cussons and chairman of exporters in the Manufacturers Association of Nigeria.
“Some of them have been complaining in the past two weeks; however, the impact is not yet that strong now,” Oyelola said.
Raphael Nwaenigwe, a poultry farmer, told BusinessDay that it could soon begin to hit makers of feed stocks.
Nwaenigwe added that most poultry farmers could shift to other feed stocks in case the disease gets more serious.
A source at the Raw Materials Research and Development Council (RMRDC) told BusinessDay that the situation will affect prices of maize now and next year as farmers will not have the confidence to plant again after the loss.
“In return there will be high input cost for manufacturers that use maize as industrial raw material,” said a coordinator of one of the states for RMRDC, who pleaded anonymity.
Army worm, a pest, is part of the order of Lepidoptera and wreaks havoc on crops if left to multiply. Its name is derived from its feed habits and can mercilessly eat the stem of crops as well as the leaves.
Many losses have been incurred in the affected states and the outbreak arises from unfavourable weather condition earlier in the year.
The Institute of Agricultural Research and Training (IAR&T), Moor Plantation Ibadan, said in a statement that an uncommon pest is presently ravaging maize on the field in the South-West region.
“It has been a while we experienced the army worm disease. It is as a result of harsh weather. When butterfly laid its eggs, there was no rain to wash the eggs off. This is what has resulted in the army worm pest disease this year,” Olatunji Adenola, national president, Maize Association of Nigeria (MAAN), told BusinessDay.
“The few farms I visited when I heard about the outbreak are in a very bad condition. The farmers lost everything and this is why I have also advised my members to insure their farmlands,” Adenola said.
Afioluwa Mogaji, chief executive officer, X-ray Farms, said the current outbreak of the disease will affect availability of maize in the market because most farmers cannot manage the disease, adding that extension agents that are supposed to educate them are currently unavailable.
“It will also affect prices of maize if the government fails to react immediately,” he said.
The international benchmark of maize price averaged $164 per tonne in April, slightly up from March, according to the Food and Agricultural Organisation (FAO), in its latest food prices report.
Sam Ajala, maize breeder at the International Institute of Tropical Agriculture (IITA), who has been working on army worm control, disclosed that although its infestation has not been recorded as attaining such a damaging level before now, the present situation has presented opportunities for a lasting control.
The Ministry of Agriculture and Rural Development, in a statement made available to BusinessDay, said the opportunity to screen and develop planting materials that are resistant to the infestation has been identified.
ODINAKA ANUDU & JOSEPHINE OKOJIE
