Transforming Nigerian Agriculture Nigeria Rice & Wheat Story: - PowerPoint PPT Presentation

Transforming Nigerian Agriculture Nigeria Rice & Wheat Story: success comes at a cost Presenta7on by Senator A*ku Abubakar Bagudu Governor of Kebbi State @ Bola Ahmed Tinubu Colloquium

Where are we? • Nigeria is not self sufficient in rice and wheat, whereas per capita consump7on of both is on the increase. • Countries from where Nigeria imports employ produc7on. support and market protec7on in order to dominate export. • Such prac7ces make it aMrac7ve to import and constrain local produc7on. • Lower prices may be pleasing in the short run but create dependency in the long run. • Without self sufficiency in these commodi7es food security will dangerously be import dependent. • Aggressive self sufficiency drive offers rapid employment, grow incomes, reduce poverty and promote inclusion.

Where are we? • Yield per hectare is lower than countries we compete with • Farming is an occupa7on and not a Na*onal Local Short business as in expor7ng countries. demand output term • Farmers give what they have rather than MT MT poten*al what the land requires. MT • Farm produc7vity is limited by seeds, Rice 11m less than 12m. inputs and extension 5m • Government subsidy not enough and poorly targeted. Wheat 4.7m less than 4.5m. • CBN has done well but can do much 200,000 beMer. • Financing is not enough and banks are not ready. • Distor7ons caused by produc7on support in expor7ng countries unmatched • Evolving policy is on the right track

Africa Rice Imports by countries of Origin 2013

India was like us! Transi7on from importer to exporter

India: Estimated Total Support to Agriculture in millions of United States dollars Item 2009-10 2010-11 2011-12 2012-13 2013-14 Average annual exchange rate, rupees/dollar 47.4166 45.5768 47.9229 54.4091 60.5016 Capital and Revenue Expenditures on Agriculture and Allied Services, Rural Development, Special Area Programs, Irrigation and Flood Control 35,229 37,308 39,517 45,963 46,771 Commodity Boards and Export Development 108 138 149 135 126 Fertilizer Subsidies 12,920 13,670 14,609 12,059 11,235 Agricultural Power Subsidies 9,602 9,799 12,082 11,405 11,072 Food Corporation of India Subsidies 9,042 12,373 14,335 14,807 15,227 State Bonuses 242 168 241 552 253 Cotton Corporation of India Subsidies 210 8 0 44 n/a NAFED Subsidies 179 22 0 16 8 Jute Subsidies 8 7 12 10 10 Sugar Subsidies 86 52 6 2 1 TOTAL 67,626 73,544 80,952 84,994 84,703 Gross Agricultural Product 227,634 286,756 305,856 301,998 284,352 Total Support as Percent of Gross Agricultural Product 29.7 25.6 26.5 28.1 29.8 Source : Global Agriculture Informa7on Network GAIN

The wheat story is worse!

S7ll on wheat • Lake Chard Research Ins7tute (LCRI) has achieved 6 to 7 MT per hectare while yields of up to 4 MT per hectare are increasingly common on farmers field • Wheat grows on farmlands where paddy rice is produces in the 12 states • Produc7on is from end of wet season rice farming in October and the start of dry season farming in March. • Currently only about 5 percent of the paddy fields are planted with wheat. • The Lake Chad research ins7tute set a target of 300,000 hectares for the 2016/17 season. • More can be done depending on seed availability.

Russia supports wheat • The Russian Ministry of agriculture increased the level of prices for grain crops purchased by the State Interven7on Fund. • This price incen7ve s7mulates Russian wheat farmers to produce and sell wheat to the Fund. • Nigeria was once the top U.S. wheat customer, has cut purchases by almost half in the past five years. • The Black Sea region including Russia and Ukraine now contributes 17 percent of our imports, from 1 percent two years ago.

America does too!

Encouraging news • NCRI has achieved field experiments of 11 tonnes per hectares. – Sustained research – Incen7ves for research into use • Yield per hectare has been on the increase to an average of 4.5-6 hectares per tonne. – More field trials – Wider adop7on of improved seeds – Revive farm extension support • Aggressive promo7on of rice produc7on in 32 states – Target of 1 million hectares must be put into produc7on – Promote off-take in states • Produc7on costs in Nigeria are comparable to those of cheaper producing na7ons. – Produc7on subsidies • Willing populace

What should we do? Create and maintain compe77veness • – More research to combat seed and farm technology imperialism – Seed mul7plica7on and distribu7on – Extension services – Irriga7on Fix financing - availability is key. • How much financing is required for self sufficiency in rice & wheat? • – FMARD & states to come up with targets and es7mates – E.g. Rice, average of N200,000/ha x 1 million hectare may require up to N200 billion and the expected output of 7 million metric tonnes of paddy and up to 2.5m tons of wheat. Where do we find the money? • – CBN interven7on fund – Pension funds – Banks – Insurance companies – Federal, state and local governments, and private sector. Trade policy? • – Nigeria must not be a dumping ground – ECOWAS as opportunity & poten7al market

It can be done – states are drivers The Kebbi state experience • Rice yield per hectare for dry season farming is 4.5 MT/Ha • Rice yield per hectare for wet season farming is 1.5 MT/ha • Wheat yeild per hectare of 2-4 tons • Kebbi state is blessed two main fadama belts Rivers Niger & Rima. – Rima belt runs from Sokoto border 371 km southwards where it drains into River Niger. – Niger belt stretches 350km west from Kainji Lake and to our borders with Niger and Benin Republics – Significant wetlands exist in all the 21 local governments of the state. – Overall 600,000 Ha + of cul7vable Fadama with less than 20% currently used. • The State Rice Farmers Associa7on of Nigeria RIFAN, there are 148,500 registered farmers and 158,860 registered under the Growth enhancement Scheme GES which are mainly subsistence farmers. • Local processing by women

Financial projec7on per hectare in Kebbi Period Nov-Mar March - June June - October Crop/Farming system Wheat Dry season rice Rain fed rice Yield in tons 3 tons/ha 4.5 tons/ha 2,5tons/ha Price per ton 120,000 67,000 67,000 Gross income 360,000 301,500 167,500 Produc7on credit 200,000

It can be done – states are drivers The Kebbi state experience • The State to triple its capacity of rice paddy in 2 years. • Wheat output increased by 200% between 2015 and current season • The state hosts Labana rice mill which has a capacity of 16 tons per hour. • Public-public & public-private-partnerships (PPP) – Lagos state government on agricultural value chain. – Wacot 100,000 MT rice mills in Argungu. – Out-growers schemes by Labana Rice, Umza, Flour Mills of Nigeria plc on rice, sugarcane groundnut, soya bean etc have been developed. – 70,000 farmers registered on BOA-CBN MSME scheme (Financial inclusion)

FGN must do more with states • So much has happened with limited results: OFN, Green Revolu7on etc, 200b CACS fund, NISRAL, Ag. Credit Support scheme 2006, ACGSF 1977, Interest draw back program 2003, Trust Fund model 2001, Anchor borrowers program. • Good efforts but pale into insignificance in face of sector’s challenges – Effec7ve targe7ng – More resources if current deficit and regional market opportuni7es are to be tapped. – FGN must match and surpass compe77on – Russia & USA on wheat, India, Thailand etc on rice. • Consider innova7ve support – Performance based grants for states off-taking strategic crops – Purchase of farm produce through GMP – Redeployment of FGN’s strategic grains reserve • Self sufficiency versus food security or both