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AGRICULTURAL SECTOR AND NATIONAL DEVELOPMENT: FOCUS ON VALUE CHAIN

APPROACH

PRESENTED BY

ENGR. (PROF.) A.P. ONWUALU FAS, F.A.ENG, FNSE, FNIM

DIRECTOR GENERAL/CEO,

RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (RMRDC)

Website: www.rmrdc.gov.ng

Email: ceo@rmrdc.gov.ng

AT

THE 5TH EDITION OF THE ANNUAL LETURE OF ONITSHA CHAMBER OF COMMERCE

AT

SHARON HOUSE, GRA, ONITSHA

24TH MAY, 2012

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CONTENT Executive Summary

1.0 Background

2.0 Agricultural Potentials of Nigeria

3. Agricultural Development Policies and Programmes in Nigeria

4. Challenges to Agricultural Development in Nigeria

5.0 Value Chain Approach as a Panacea to Agricultural Development

5.1 Business Model Approach and Design Principles for Value Chain 5.2 Oil Palm Value Chain

5.3 Fish Value Chain

5.4 Fruit and Vegetable Value Chain

5.5 Root and Tuber Crops Value Chain

5.6 Rice Value Chain

6.0 Cluster Approach to Value Chain Development

6.1 The Concept of Industrial Cluster 6.2 Benefits of Industrial Clusters 6.3 Role of Clusters in Economic Development 6.4 Establishment of Agro Processing Clusters

7. Efforts of Raw Materials Research and Development Council (RMRDC) Towards Value Addition to Agricultural Resources

8. Conclusions Appendix

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EXECUTIVE SUMMARY Background Agriculture remains the dominant sector in the rural areas of Nigeria where 70% of Nigerians reside. The diversity of favourable climatic conditions, the richness of soil types and abundant water sources, and the high population density provide great potentials for crop, livestock, fishery and forestry production. Prior to independence and thereafter, agriculture was the main stay of the economy and a major source of revenue for funding development programmes of government. The country was one of the world’s largest producers of palm oil and kernel, groundnut, cocoa, rubber, cotton etc. It is on record that at independence, agriculture contributed up to 60% of the Gross Domestic Product (GDP) of Nigeria. There is a range of ecological belts which enable the country to produce a wide variety of agricultural commodities such as cereals, legumes, roots, tubers, fruits, vegetables, tree crops, forestry and shrubs, livestock and fish. The Nigerian agricultural production system has however not kept pace with trends in technology development. In order to develop the sector, government over the years has executed different agricultural policies, yet the sector is currently dominated by peasant farmers using little or no technologies. This has resulted in the continuous failure of the sector to play its role in national development. Currently, Nigeria spends scarce foreign exchange importing food products such as rice, meat, fish and milk. A larger amount of money is spent importing intermediate (semi processed) agro raw material for agro based industries such as breweries, beverages, flour, sugar, fruit, etc. These have been done to bridge the ever increasing gap between supply and demand which has not been met by local production, processing and distribution system. Currently, the Federal Government is promoting the value chain approach as a viable alternative that can drive agricultural development in Nigeria to a level where we can be self sufficient in food, fibre and agro raw materials production as well as have excess export. In this paper, we outline the agricultural potentials, challenges to agricultural development and past policies to support agricultural development. Building on these the paper presents value chain and clustering approach as a viable alternative to agricultural development in Nigeria in general and Anambra State in particular. Agricultural Resources of Nigeria Nigerian Agricultural resources can be classified into two – crop and animal. The arable crops are fibre (cotton), fruits/vegetables (ginger, tomato, pepper, mango), grain (maize, sorghum, rice), legumes (soyabean, groundnut). Others are tubers (yam, cassava), energy crops (Jatropha, typha grass), tree crops (orange, cashew) and oil seed (oil palm, melon). Animal resources are divided into fishery, livestock (cattle, sheep, pigs), poultry (chicken, turkey). There are also forest resources; plantation (timber, bamboo), ornamental (flowers), wild trees, tea, coffee and cola. If well developed and utilized, these resources can generate income for the country more

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than the petroleum sector. The location and potentials of these agricultural resources for food and industrial raw materials have been studied by the Raw Materials Research and Development Council and can be found on the Council’s website (www.rmrdc.gov.ng). Concerned about her singular dependence on a mono product (oil) for its foreign exchange since her independence in 1960, the Nigerian government has made several forays at policies for the development of her agricultural sector. The First National Development Plan aimed at promoting export of agricultural produce was launched in 1962 and lasted till 1968. The Second National Development Plan (1970 – 1974) was designed to reconstruct areas ravaged by the civil war and to rehabilitate agricultural production. National Accelerated Food Production Programme (NAFPP) was launched in 1970 to improve the production of staple food crops by peasant farmers through the introduction of modern farming equipment and the diversification of crops. The Third National Development Plan was launched in 1975 and lasted to 1980. Since 1980, several interventions, policies and programmes have been executed by different governments. These have resulted in a nu8mber of agricultural institutions and programmes including 17 agricultural research institutions, several River Basin Development authorities, Agricultural Development Programmes in every state, 39 educational institutions (3 Universities of Agriculture, 17 Federal Colleges of Agriculture, 19 State Colleges of Agriculture), special programme on Food Security, etc. The present government is promoting the National Agricultural Transformation Agenda tagged Agricultural Transformation Action Plan (ATAP). The initiative is aimed at an overall development of the agricultural sector with focus on value chain development as a blueprint towards reviving agriculture to its former glory. The transformation agenda is aimed at making agriculture work for Nigerians especially rural farmers such that it becomes not just a development programme but also an income generating commercial activity. The basic components of the transformation agenda include the development of value chain in selected key crops - – rice, cassava, sorghum, cocoa and cotton. If properly implemented, it will definitely work for Nigeria. Ultimately the weak links in the chain for each of the crops will be developed to ensure that the entire value chain from production to consumption is simultaneously developed. Also, to address the issue of financing the sector, the Central Bank of Nigeria (CBN) in 2010 engaged the Alliance for Green Revolution in Africa (AGRA) to develop the Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL) which was launched in 2011. NIRSAL is a new innovative mechanism targeted at de-risk lending to agricultural sector. It is a demand-driven credit scheme put in place given the need for an agricultural financing strategy that would boost output, increase farmers’ income, create jobs and provide wealth opportunities across the value chain. The whole essence of the NIRSAL is to spark an agricultural industrialization process through increased production and processing of the greater part of the commodities produced in the country to boost wealth generation across the value chain. NIRSAL’s primary goal is to increase agricultural lending by USD3 billion within 10 years.

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Before the current intervention in agriculture, there was the Commercial Agricultural Development Programme (CADP) with the objective strengthening agricultural production systems and facilitating access to market for targeted value chains among small and medium scale commercial farmers in the five participating states (Lagos, Kano, Kaduna, Enugu, and Cross River). Anambra State like every other state in Nigeria has many agricultural resources including cash crops, fishery and livestock. The state is also blessed with land cultivated for crops and for pasturing and animal husbandry. Several programmes have been initiated to develop the agricultural sector in Anambra State. The programmes include the World Bank supported State Agricultural Development Project, Anambra, Imo River Basin Development Authority, Root and Tuber Expansion Programme, Value Chain Addition Programme, National Programme for Food Security (NPFS). In 2009, the state started a World Bank assisted five-year agricultural project known as FADAMA III.

Despite all these laudable policies and programmes, agriculture has suffered from years of poor management, inconsistent and poorly implemented government policies, and the lack of basic infrastructure. Still the sector accounts for considerable percentage of GDP and two-thirds of employment. Nigeria is no longer a major exporter of cocoa, groundnut (peanuts), rubber, palm oil due to overdependence on petroleum as main source of revenue. According to Food and Agricultural Organization (FAO), Nigeria imports a number of agricultural products. Nigeria imports approximately US$3.5 billion in food products annually and exports only US$500 million.

Challenges to Agricultural Development The question is, why has agriculture in Nigeria lost its former glory and what needs to be done? The challenges and constraints that have made it impossible for Nigerian agriculture to be developed have been discussed severally. These include: Lack of basic Physical Infrastructure and Essential Services; for production and lack of Appropriate Technology and Machinery/Processing of Agricultural Products; difficulties in Accessing Credit Facilities for Investment; apathy towards Investment in the Agricultural Sector; poor Entrepreneurship Development; policy issues; and challenges; weak Linkages between Agriculture and Industry and poor market access. Value Chain Approach Nigeria is blessed with a variety of agricultural raw materials which can provide stimulus for the growth of processing industries. The strategy of value addition on agricultural produce provides ample opportunity for revenue generation, employment generation and effective post harvest management. The concept of value addition is a vital component of the overall strategy for addressing global market competition, post-harvest losses and food security. The processing of

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agro raw materials into various innovative products promotes market acceptability and gives the products high economic value which consequently brings higher income to the producer. Value Chains reside at the core of high-impact and sustainable initiatives focused on improving productivity, competitiveness, entrepreneurship, and Small and Medium Enterprises (SMEs) growth. Value Chain thinking is revolutionizing the agriculture and the food industry. Focus has shifted from agricultural production to consumer demand, marketing and the coordination of product flows from producer to consumer. The Value Chain concept acknowledges that production must be linked to demand and the critical role of organizing the flow from farmer to consumer opportunities.

The foundation for sustainable value chain models include: empowered organized farmer groups, receptive business sector, facilitating policy sector and partnership facilitator. Agricultural value chain links the steps a product takes from the farmer to the consumer and includes input suppliers, production, processing, marketing and finance. Value addition can occur without high cost capital investment or physical transformation of the product. Value subtraction takes place when the end price does not compensate the investment cost. Therefore, it is important to focus on core business before diversifying into capital intensive value adding agro-processing technologies. Investments in agro-food technologies will fail without attention to management systems and capacities that reduce transaction costs. The value chain approach has become an increasingly important framework for examining change in the global trade commodities and their implications for primary producers. Commodity value chain encompasses the whole lot of activities from production, processing distribution and marketing of specific traded commodity and identifies the main stakeholders involved at each stage, including research and development. Value chains of selected commodities discussed include Oil palm, roots and tubers (cassava), fruits and vegetable, fish and rice. This approach has worked in countries such as Brazil, Bolivia, Honduras, India, Kenya and other countries with similar socio-economic situation as Nigeria. Agro processing Clusters and Value Chains One way to ensure value addition to the vast agricultural resources in the country is the establishment of agricultural raw materials processing clusters. The emerging markets economy is usually an economy of Small and Medium enterprises (SMEs). In the new drive at revamping the national economy using indigenous resources, the role of the private sector cannot be overemphasized. The experiences in the past have presented failures of exclusive public sector’s involvement in business. Cases in question are the government owned oil mills, textile industries, poultry farms, food processing factories, even the refineries, etc. All these public owned/operated business entities have never been sustainable. Therefore, the cluster approach is a Public Private Partnership (PPP) arrangement based on the Triple Helix Concept that brings Government, Academia and Industry together.

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The Raw Materials Research and Development Council is championing the processing cluster initiative in Nigeria. The Council in 2010 produced a blue print for raw material processing cluster establishment. The dream is to see to the emergence of at least one raw materials processing cluster in every local government in Nigeria. The Council is also involved in several programmes and projects geared towards the development of agriculture for raw materials in the country. These include: research and development, boosting the supply of agricultural raw materials, collaboration with relevant stakeholders for the development of some selected agricultural produce and their derivatives such as oil palm, cashew, kenaf, moringa, mulberry, fruits, honey, etc as raw material inputs for manufacturing. For most industrial crops, livestock and fishery Council has developed investment profiles that can assist any entrepreneur to set up small scale processing industries. Conclusion This paper has shown that beyond crude oil, Nigeria is blessed with enormous agricultural resources that when fully harnessed and developed can generate more revenue for the country, create more jobs and is capable of solving most of the socio-economic challenges facing the country today including security. In order to harness and develop these resources, the value chain approach currently being promoted by the Federal Government (Federal Ministry of Agriculture) needs to be supported and pursued vigorously. This has to be integrated with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) funding window of Central Bank of Nigeria to solve the challenge of poor access to funds. The challenge of poor access to technology can be solved by approach with the Cluster concept of harnessing technologies from our research institutes and injecting them into the operations of SMEs operating in Cluster formation. For all these to work, the private sector (whether organized or not must be empowered by a robust funding mechanism and sustainable access to endogenous technology under a Public Private Partnership (PPP) arrangement. If all these are done in a sustainable manner, Nigeria can achieve self sufficiency in food and raw material production in key agricultural sectors by 2015 under the Transformation Agenda of the present administration. The potential for improving the economic base of Anambra State in particular and Nigeria in general through value addition to agricultural raw materials is enormous. Opportunities for setting up large, medium and small scale industries also abound in the state. Value addition provides opportunities for the state to work out economic strategies for competing successfully in the global scene and create jobs for her teaming youths. What is required is Public Private Partnership (PPP) arrangement that can see the Federal Government, Anambra State Government, Local Government Authorities and business individuals/organizations working together to achieve the industrialization of the state through an innovation driven cluster based value chain approach. This method addresses technological, infrastructure and finance challenges in the entire chain from production, handling, preservation, processing, distribution and marketing of selected agricultural products.

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1.0 BACKGROUND

Agriculture remains the dominant sector in the rural areas of Nigeria where over 70% of Nigerians reside. The diversity of favourable climatic conditions, the richness of soil types and abundant water sources, and the high population density provide great potentials for crop, livestock, fishery and forestry production. Prior to independence and thereafter, agriculture was the main stay of the economy and a major source of revenue for funding development programmes of government. The country was one of the world’s largest producers of palm oil and kernel, groundnut, rubber, cotton, cocoa, etc. It is on record that at independence, agriculture contributed up to 60% of the Gross Domestic Product (GDP) of Nigeria. Notable cash crops such as groundnuts, rubber, cotton, oil palm and cocoa for which the nation was recognized globally for production and export capability, generated enormous revenue for the development of socio-economic infrastructure in the Northern, Eastern and Western regions at that time.

In Western Nigeria, the Cocoa House in Ibadan, O’dua Investment Group, University of Ife and others were built based on revenue derived from cocoa. In the north, the groundnut pyramid and cotton were a source of pride to the people and a huge source of revenue for the development of infrastructure and institutions including Ahmadu Bello University, Zaria. Oil palm and rubber plantations were established in eastern Nigeria and revenue generated was used to build roads, hospitals and provide other social amenities including the University of Nigeria, Nsukka. Today, the contribution of this sector to national development is insignificant. Although the revenues from these agro-based resources have dropped, the potentials are still there.

There is a range of ecological belts which enable the country to produce a wide variety of agricultural commodities such as cereals, legumes, roots, tubers, fruits, vegetables, tree crops, forestry and shrubs, livestock and fish. But over the years, Nigeria’s population has astronomically increased and the demands of industrial raw materials have also increased. This has put a lot of pressure on the produced commodities resulting in importation of some of the commodities (e.g. rice, wheat, poultry, fish) as well as raw materials for industries.

The Nigerian agricultural production system has, however, not kept pace with trends in technology development. In order to develop the sector, government over the years has executed different agricultural policies, yet the sector is currently dominated by peasant farmers using little or no technologies. This has resulted in the continuous failure of the sector to play its role in national development. Currently, Nigeria spends scarce foreign exchange importing food products such as rice, meat, fish and milk. A larger amount of money is spent importing intermediate (semi processed) agro raw materials for agro based industries such as breweries, beverages, flour, sugar, fruit juice, etc. these have been done to bridge the ever increasing gap between supply and demand which has not been met by local production, processing and distribution system. The federal government is currently promoting the value chain approach as a

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viable alternative that can drive agricultural development in Nigeria to a level where we can be self sufficient in food, fibre and agro raw materials production.

In this paper, we outline the agricultural potentials, challenges to agricultural development and past policies to support agricultural development. Building on that, the paper presents value chain and clustering approach as a viable alternative to agricultural development in Nigeria in general and Anambra State in particular.

2.0 AGRICULTURAL POTENTIALS OF NIGERIA

Agriculture is tied with the various sectors of the economy and is essential for a broad based growth necessary for development. Agriculture is fundamental to the sustenance of life and is the bedrock of economic development, especially in the provision of adequate and nutritious food vital for human development and raw materials for industry. Agriculture is the mainstay of any well planned economy throughout the world because it contributes significantly to the national GDP, creates employment, provides food and earns foreign exchange. Nigerian agricultural resources can be classified into two – crop and animal. The arable crops are fibre (cotton), fruits/vegetables (ginger, tomato, pepper, mango), grain (maize, sorghum, rice), legume (soyabean, groundnut), tubers (yam, cassava), energy crops (jatropha, typha grass), tree crops (orange, cashew) and oil seed (oil palm, melon, castor). Animal resources are divided into fishery, livestock (cattle, sheep, pigs) and poultry (chicken, turkey). There also forestry resources namely, plantation (timber, bamboo), ornamental (flowers), wild trees, tea, coffee and cola. If well developed and utilized, these resources can generate income for the country more than the petroleum sector. The location and potentials of these agricultural resources for food and industrial raw materials have been studied by the Raw Materials Research and Development Council and can be found in the Council’s website (www.rmrdc.gov.ng).

According to 2009 World Trade Organization report, although the petroleum sector dominates the economy of Nigeria, agriculture is more important to most Nigerians because it represents over half of employment and contributed 41.7% of GDP.

Nigeria is very blessed with different agricultural resources. Most parts of the country experience rich soil, good rainfall, and warm temperatures all year round. About 80% of the land is cultivable, and about 13% of the land is forested. There are four vegetation belts

• the coastal mangrove swamps • the rain forest • the woodland savanna • the northern savannas

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There are different forms of agriculture. Some farmers focus on food crops such as wheat, cassava or soybeans, while others grow cash crops such as tobacco, coffee and cotton. Livestock are also maintained by farmers. Some other forms of agriculture are listed as follows:

Aquaculture is the raising of aquatic animals for the purpose of sale. Products from aquaculture include cat fish, crabs, croaker, shrimps, etc.

Apiculture, also known as beekeeping, is the practice of raising bees for their products as well as for pollination of crops. The beekeeping industry produces, apart from honey, other industrial raw materials such as beeswax, pollen, propolis, royal jelly and bee venom.

Forestry, sometimes referred to as tree farming, is the practice of producing timber for a variety of commercial purposes. The uses of timber include making lumber, furniture, and paper products. Some of the forest trees available include camwood, ebony, iroko, mahogany, Nigerian walnut, obeche, bamboo, etc.

Sericulture is the cultivation of silkworms to produce silk. This form of agriculture has been in place for thousands of years and has a rich history.

Some of the animals reared for livestock include cattle, donkey, goat, sheep, pigs, duck, geese, chicken, guinea fowls, pigeon, turkey, etc. Other agro based areas include rabbitery, snail rearing and mushroom cultivation.

A lot of wealth can be created by having a related set of activities in ensuring that these products are converted to industrial raw materials.

A broad classification of agricultural products in Nigeria into arable crops, livestock and forestry resources are shown in Figure 1,2,3 (Onwualu, 2009).

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Fig 1. Arable crops of Nigeria

AGRICULTURAL RESOURCES ARABLE CROPS

Fruits/ Vegetables

Grain

Energy Crops Tubers Fibre Crops Leguminous

Oil Seeds Tree Crops

Cotton

Cotton Textile Feeds Jute bags Carpet

Ginger Tomatoes Pepper Mango Orange Pineapple

Food (Paste and Juices) Pharmaceutical Beverages Cosmetic Sugar

Starch

Maize Sorghum Maize Rice Wheat

Food (Flour, Bakery) Chemicals Pharmaceuticals Wood Livestock Feeds

Groundnut Cowpea soyabean

Food Soap & detergent Lubricants Livestock Feeds

Yam Cassava Sweet Potatoes

Food Textile Laundry Chemicals (e.g Starch) ethanol

Mango Orange Cashew

Fruit juice

Nuts

Jatropha Cassava

Biodiesel

Ethanol

Oil Palm Melon Castor

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Figure 2: Livestock resources in Nigeria

Figure 3: Forestry resources in Nigeria

Food Tanning Leather Pharmaceutical

Cattle, Sheep, Goat, Piggery

Poultry

Food (Meat, Eggs)

Fishery, marine

Food Livestock Feeds Game

ANIMAL RESOURSES

Meat, Dairy, Hide & Skins, Bones, Hooves & Horns

FOREST RESOURCES

Plantation Wild trees and Shrubs

Ornamental Tee Coffee Cola

Timber , Wood, Poles, Pulpwood, March Splints, Wood Waste, Industrial Products, Pharmaceuticals, Chemicals, Cosmetics, Chemical, Cosmetics/Perfumes, Flavouring agents.

Flowers Medical Pharmaceuticals Beverage Cosmetics Chemicals

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The national distribution of agricultural products is shown in Appendix I and can also be assessed from RMRDC website (RMRDC, 2011). Although these resources are there, they have not been exploited to their full potentials. It has been shown that if well developed, these resources can support national development in all zones and states (Obasi et at 2009). For the Southeast Nigeria, being mainly within the rain forest zone, many agricultural products can also be produced on a commercial basis (Adama et at, 2006).

Sometimes the wrong impression is created that Anambra is known only for business. But Anambra State has many agricultural resources including cash crops, livestock and fishery. The state is also blessed with land cultivated for crops and for pasturing and animal husbandry. The state has high potentials for agricultural development, because of stretches of fertile land on the plains in Ogbaru, Ayamelum, Oyi, Awka and Orumba Local Government Areas. These areas support crops like yam, maize, cassava, rice, and vegetables. The lfite Ogwari Dam on the Anambra River provides water for 3,500hectare-irrigated land at Ormor for the cultivation of rice, maize, and vegetables. The dam, with a target of 5,000 hectare of irrigated land, is a joint venture between the Federal Government and a Japanese consortium. Forest reserves in the Mamu river basin, Akpaka and Ajali-Umeje provide valuable forest products, protect the watersheds and maintain ecological balance. The agricultural resources in each local government of Anambra State are shown in Table 1.

Table 1. Agricultural Resources on Local Government Basis (RMRDC, 2011)

S/N Local Government Area Agricultural Raw Materials 1. Aguata Oil Palm, Cassava, Cocoyam, Maize, Rice, Piggery,

Yam, Poultry , Kola nuts 2. Awka North Rice, Maize, Cassava, Cocoyam, Yam, Beans,

Castor Oil Seed, Fruits, Poultry, Piggery 3. Awka South Cassava, Oil Palm, Cocoyam, Yam, Rice, Maize,

Pigeon Pea (fiofio) Melon, Plantain, Banana 4. Anambra East Cassava, Maize, Okra, Yam, Plantain, Fish,

Vegetables, Potato, Rice, Pigeon Pea (fiofio), Melon, Kolanuts, Fruits, Poultry, Poultry

5. Anambra West Cassava, Maize, Okra, Yam, Plantain, Fish, Vegetables, Rice, Maize, Melon, Caster, Oil Seeds, Fruits, Poultry

6. Anaocha Livestock, Cassava, Cocoyam, Maize, Rice, Pigeon Pea, Yam, Plantain, Banana, Castor Seed

7. Ayamelum Cassava, Maize, Okra, Yam, Plantain, Fish, Vegetables, Rice, Melon, Fruits

8. Dunukofia Livestock, Yam, Cassava, Cocoyam, Melon, Fruits, Pigeon Pea

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9. Ekwusigo Cassava, Oil Palm, Livestock, Cocoyam, Melon, Castor Oil Seeds, Plantain, Banana

10. Idemili North Cassava, Oil palm, Maize, Cocoyam, Oil Palm, Melon, Castor Oil Seeds, Plantain, Banana, Poultry

11. Idemili South Cassava, Oil Palm 12. Ihiala Cassava, Oil Palm, Maize, Cocoyam, Melon, Castor

Oil Seeds, Plantain, Banana, Poultry 13. Njikoka Livestock, Yam, Maize, Cassava, Melon, Palm

Produce, Plantain, Banana, Fruits 14. Nnewi North Livestock, Yam, Palm Produce, Cassava, Cocoyam,

Maize, Melon, Fruits, Poultry 15. Nnewi South Oil Palm, Livestock, Yam, Maize, Cassava, Fruits 16. Ogbaru Cassava, Maize, Yam, Fish, Oil Palm, Vegetables,

Rice, Castor Oil Seeds, Kola nuts 17. Onitsha North Yam, Cassava, Fruits 18. Onitsha South Yam, Cassava, Fruits 19. Orumba North Oil Palm, Cocoyam, Vegetables, Rice, Cassava,

Fish, Melon, Fruits, Plantain, Poultry 20. Orumba South Oil Palm, Cocoyam, Vegetables, Rice, Yam,

Cassava, Maize, Fruits, Poultry, Castor Oil Seeds 21. Oyi Cassava, cocoyam, Rice, Yam, Maize, Potato

Several programmes have been initiated to develop the agricultural sector in Anambra State. The programmes include the World Bank supported State Agricultural Development Project, Anambra-Imo River Basin Development Authority, Root and Tuber Expansion Programme, Value Chain Addition Programme, National Programme for Food Security (NPFS). The Rural Financial Institutions (RUFIN) were established to enable farmers assess loans. In 2009, the state started a World Bank assisted five-year agricultural project known as FADAMA III. 20 local FADAMA development communities were involved in the project.

Anambra State has been divided into four agricultural zones namely: Anambra, Onitsha, Awka and Aguata Zones (Table 2).

Table 2: Anambra State Agricultural Zones Zone Local Government Area Anambra Anambra East, Anambra West, Oyi and

Ayamelum LGAs Onitsha Onitsha North, Onitsha South, Idemili North,

Idemili South, Ogbaru, Nnewi North, Nnewi South, Ekwusigo and Ihiala LGAs

Awka Awka North, Awka South, Aniocha, Njikoka

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and Dunukofia LGAs Aguata Aguata, Orumba North and Orumba South

LGAs. 3. AGRICULTURAL DEVELOPMENT POLICIES AND PROGRAMMES IN

NIGERIA

Concerned about her singular dependence on a mono product (oil) for its foreign exchange since her independence in 1960, the Nigerian government has made several forays at policies for the development of her agricultural sector. The First National Development Plan was launched in 1962 and lasted till 1968. The plan was aimed at promoting export of agricultural produce.

The Second National Development Plan (1970 – 1974) was designed to reconstruct areas ravaged by the civil war and to rehabilitate agricultural production. Among several objectives, it emphasized the introduction of modern agricultural methods through farm settlement, cooperative plantations, supply of improved farm implements and a greatly expanded agricultural extension service. Farm Settlement Schemes and National Accelerated Food Production Programme (NAFPP) were among some specialized development schemes initiated and implemented during this period. NAFPP launched in 1970 was designed to improve the production of staple food crops by peasant farmers through the introduction of modern farming equipment and the diversification of crops.

The Third National Development Plan was launched in 1975 and lasted to 1980. The plan supported many agricultural programmes like the River Basin and Rural Development Authorities Programme (1976), Operation Feed the Nation (1976), the Green Revolution Programme and the World Bank funded Agricultural Development Projects (ADPs).

While each of the above programmes sought to improve food production, the ADPs was the first major practical demonstration of the integrated approach to agricultural development in the country. The ADPs which started at Funtua, Katsina State in 1974 with World Bank funding were subsequently extended to other selected parts of the country. Following successful negotiations for multi-state agricultural development projects with World Bank, each state in Nigeria and the FCT now have ADP.

Since 1980, several interventions, policies and programmes have been executed by different governments. These have resulted in a number of agricultural institutions and programmes including 17 agricultural research institutes (Table 3), extension research liaison services and several River Basin Development Authorities (Table 4), as well as 39 educational institutions (3 universities of agriculture), 17 federal colleges of agriculture, 19 state colleges of agriculture). See appendix 2. There are also Faculties of Agriculture and Veterinary Medicine in over 50 Universities.

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Table 3 – Agricultural Research Institutions in Nigeria S/N AGRIC RESEARCH INSTITUTE YEAR FORMAL MANDATE

1. Lake Chad Research Institute, Maiduguri 1960

Genetic improvement and development of production technologies for wheat, millet, and barley; the improvement of the productivity of the entire farming system in the North Eastern Zone.

2. Institute for Agricultural Research, Zaria 1924

Genetic improvement and development of production and utilization technologies for sorghum, maize, cowpea, groundnut, Cotton, sunflower, and the improvement of the productivity of the entire crop-based farming system in the North West Zone of the country

3. Institute of Agricultural Research and Training, Ibadan

1956

Soil and water management research, genetic improvement of kenaf and jute, and improvement of the productivity of the entire farming system of the South West Zone

4. Institute of Agricultural Research , Ile-Ife

5. National Cereal Research Institute, Badeggi 1975

Genetic improvement and production of rice, soybean, benniseed, sugarcane and improvement of productivity of entire farming system of the Central Zone

6. National Root Crop Research Institute, Umudike

1976

Genetic improvement of cassava, yam, cocoyam, Irish potato, sweet potato, and ginger and overall research in improvement of farming system of the South East Zone

7. National Horticultural Research Institute, Ibadan

1975

Research into genetic improvement, production, processing and utilization of fruits and vegetables, as well as ornamental plants

8. Nigerian Store Product Research Institute, Ilorin

1977

Research into improvement of major food and industrial crops and studies on stored product pest and diseases, pesticides formulation and residue analysis

9. Rubber Research Institute of Nigeria, Benin 1961

Research into genetic improvement, production and processing of rubber and other lather producing plants

10. Cocoa Research Institute of Nigeria, Ibadan 1964

Genetic improvement, production and local utilization research on cocoa, cashew, kola, coffee and tea

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11. Nigerian Institute for Oil Palm Research, Benin

1939

Research into genetic improvement , production and processing of oil, coconut, date, raffia and ornamental palms

12. National Centre For Agricultural Mechanization (NCAM)

1990 To accelerate the pace of mechanization in the agricultural sector of the Nigerian economy in order to increase the quantity and quality of agricultural products in Nigeria.

13. Nigerian Institute for Water Resources Research, Kaduna

1979 The Institute is in charge of training and applied research in the water sector

14. Lake Chad Research Institute, Maiduguri 1976 Genetic improvement of wheat, barley and millet; Investigation of the problems of production of all agricultural food crops grown in the broad ecological zone covered by Borno, Yobe, Adamawa, Bauchi and Gombe States, with emphasis on farming systems including integration of livestock, tree crops and agro-forestry into production systems; Conducting Agricultural Extension and Research Liaison Services; and Providing laboratory and other technical services to farmers, agro-based industries and others needing these services.

15. National Animal Production Research Institute, Zaria

1977

Research on food animal species and forages

16. Nigerian Institute for Oceanography and Marine Research, Lagos

The institute is concerned with ocean and marine science namely fisheries, fish utilization, fishing technology, physical, chemical, geological/ geophysical, biological oceanography and aquaculture.

17. Federal Institute of Industrial Research, Oshodi

1958 Accelerate the industrialization of Nigerian economy through finding industrial utilization for the country’s raw materials and upgrading indigenous production techniques.

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Table 4. Agricultural Development Programmes in Nigeria S/N Name Date

Started Status

1. Farm Settlement Centre 1960s Defunct

2. Tractor and Equipment Hiring Scheme 1960s Defunct

3. Co-operative Plantation Programme 1960s Defunct

4. National Accelerated Food Production Programme (NAFPP)

1973 Defunct

5. National Grain Production Company (NGPC) and National Root Crops Production Company (NRPC)

1974 Defunct

6. The Nigerian Agricultural and Co-operative Bank (NACB)

1977 Functional

7. The River Basin Development Authority (RBDA) 1976 Functional

8. The Agricultural Development Programmes (ADPs) 1974 Functional

9. Operation Feed the Nation (OFN) 1976 Defunct

10. Rural Agro-Industrial Development Scheme (RAIDS) 1981 Defunct

11. Agricultural Mechanics and Machinery Operations Training Centre (AMMOTRAC)

Late 80s Functional

12. The National Agricultural Land Development Authority (NALDA)

1992 Defunct

13. The Directorate of Foods, Roads and Rural Infrastructure (DFRRI)

1987 Defunct

14. The Green Revolution 1980 Defunct

Summary of some the programmes are given as follows:

Farm Settlement Scheme – Established in the early 60s based on model borrowed from Israel, with the objective of settling school leavers on the farms and reducing rural urban migration. In the system, government acquired land, put in the basic infrastructure and gave farm inputs such as improved seed varieties, fertilizers, etc to young school leavers.

Tractor and Equipment Hiring Scheme - Established by some regional governments, whereby tractors and associated equipment were purchased and made available to farmers at subsidized rates up to 80%. However due to poor

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organizational set up, poor machine management, lack of proper record keeping and fraudulent practices the scheme failed to succeed

Co-operative Plantation Programme – This programme was also started by regional governments to boost cash crop production through farmers’ cooperatives pooling their resources together.

National Accelerated Food Production Programme (NAFPP) – This programme started in 1973 as a pilot project and was extended to all parts of the country in 1977. It was designed to increase the production of food crops such as maize, millet, rice, guinea corn, wheat, cassava. It was based on the “Green Revolution Approach” borrowed from countries like Kenya, Philippines and India.

National Grain Production Company (NGPC) and National Root Crops Production Company (NRPC) – These two companies NGPC and NRPC were established to encourage large scale farms in grain and root crop production respectively. They were required to establish mechanized farms of 4,000 ha in each state of the federation on a joint venture basis with private concern. National root crop production established large scale farms and garri processing factory in Anambra, Imo and Bendal states, while National Grains established large scale farms in Oyo, Kano, Kaduna and Bauchi states. The scheme took off in five states initially. But there were only mechanized in name and therefore never realized the objectives.

There was also the Commercial Agricultural Development Programme (CADP) under the Umar Musa Yaradua’s administration. The objective of the Commercial Agriculture Development Project for Nigeria was to strengthen agricultural production systems and facilitate access to market for targeted value chains among small and medium scale commercial farmers in the five participating states (Lagos, Kano, Kaduna, Enugu, and Cross River). The targeted value chains were: oil palm, cocoa, fruit trees, poultry, aquaculture and dairy, with maize and rice as staples. There were two components to the project. The first component of the project was agricultural production and commercialization which was to provide resources to facilitate the adoption of appropriate and existing agriculture technologies and support staple crop production systems to complement the country's food security initiatives and develop domestic and export markets. The component was to enhance technology demonstration and adoption; support staple crop production systems; market facilitation; and capacity building. The second component of the project was rural infrastructure (network of farm access roads and rural energy). This component was to provide resources for construction of new roads, rehabilitation of existing ones and maintenance of roads to communities, and selected agricultural activities.

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The present government is promoting a National Agriculture Transformation Agenda tagged Agricultural Transformation Action Plan (ATAP). The initiative is aimed at an overall development of the agricultural sector with focus on value chain development as a blueprint towards reviving agriculture to its former glory. The transformation agenda is aimed at making agriculture work for Nigerians especially rural farmers such that it becomes not just a development programme but also an income generating commercial activity. The basic components of the transformation agenda include the development of value chain in selected key crops - – rice, cassava, sorghum, cocoa and cotton. If properly implemented, it will definitely work for Nigeria. Ultimately, the weak links in the chain for each of the crops will be developed to ensure that the entire value chain from production to consumption is simultaneously developed. Cassava transformation is geared towards the achievement of 20% of cassava flour in wheat for bread making, noodles and other flour based products thereby stimulating increased production of cassava by 17 million tonnes. The goal of the rice value chain is to achieve self-sufficiency in rice production and ban importation by 2015. The government has promised to improve rice production by 2 million tonnes. States under target in the rice transformation include Niger, Nasarawa, Kaduna, Kebbi, Sokoto, Kano, Plateau, Adamawa, Taraba, Benue, Borno, Ebonyi, Anambra, Bayelsa, Edo, Ogun and Ekiti. Sorghum transformation action plan and the Cocoa transformation action plan have the goal of improving the production in states that have comparative advantage.

The programme also addresses reduction in post-harvest losses, improving linkages with industry with respect to backward integration, as well as access to financial services and markets. The Transformation Agenda targets rural communities particularly women, youth and farmers associations, as well as improving rural institutions and infrastructure. The programme announced in the last quarter of 2011 is expected to create 3.5 million jobs in four years and is also expected to inject about N300 billion ($2 billion) income into the hands of Nigerian farmers and about N350 billion ($2.2 billion) into the economy through sufficiency in rice production.

Also, to address the issue of financing the sector, the Central Bank of Nigeria (CBN) in 2010 engaged the Alliance for Green Revolution in Africa (AGRA) to develop the Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL) which was launched in 2011 (Sanusi, 2012). It is a new innovative mechanism targeted at de-risk lending to agricultural sector. NIRSAL is a demand-driven credit scheme put in place given the need for an agricultural financing strategy that would boost output, increase farmers’ income, create jobs and provide wealth opportunities across the value chain. The whole essence of the NIRSAL is to spark an agricultural industrialization process through increased production and processing of the greater part of the commodities produced in the country to boost wealth generation across the value

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chain. NIRSAL’s primary goal is to increase agricultural lending by USD3 billion within 10 years (Sanusi, 2012).

In addition to all these, there are development partners and NGOs who have been involved in agricultural development in Nigeria. These include Food and Agricultural Organization (FAO), German Agency for Technical Cooperation (GTZ), Economic Community of West African States (ECOWAS), European Union (EU), United States Agency for International Development (USAID), United Nations Industrial Development Organization (UNIDO), Canadian International Development Agency (CIDA), International Institute for Tropical Agriculture (IITA) and Winrock International.

4. CHALLENGES TO AGRICULTURAL DEVELOPMENT IN NIGERIA

Agriculture contributes about 40% of Nigeria’s GDP and provides livelihood for about 70% of the population, hence the importance of agricultural sector in the overall Nigerian economy cannot be overemphasized. According to the early works of Johnson and Mellor (1961) and Nicholls (1964), six different contributions of agriculture can be identified to include food, livelihood, market, industrial raw materials, foreign exchange earnings and surplus or source of savings. Prior to Nigeria’s independence in 1960, the predominant economic activities were agricultural production and marketing of imported goods. Despite all the laudable programmes promoted by various government, agriculture has suffered from years of poor management, inconsistent and poorly implemented government policies, and the lack of basic infrastructure. Still the sector accounts for considerable percentage of GDP and two-thirds of employment. Nigeria is no longer a major exporter of cocoa, groundnut (peanuts), rubber, palm oil due to overdependence on petroleum as main source of revenue (Onwualu, 2009). Indeed, Nigeria currently imports a number of agricultural products as shown in the FAO estimated figures (Table 5).

Table 5. Agricultural Imports into Nigeria

Rank Product Quantity (in Tons)

Value (in Thousands)*

Unit Value* (Per Ton)

1 Wheat 3,006,267 809,108 269 2 Sugar Raw 1,051,509 357,500 340 3 Milk Whole Dried 77,757 271,136 3,487 4 Rice Milled 563,877 196,141 348 5 Food Prep 29,904 148,734 4,974 6 Tallow 160,246 93,544 584 7 Milk Skimmed Dry 17,504 81,829 4,675 8 Paste of Tomatoes 65,809 77,178 1,173 9 Sugar Refined 148,269 56,500 381

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10 Milk Whole Evaporated 20,537 45,890 2,235 11 Wine 29,993 45,534 1,518 12 Malt 85,940 41,580 484 13 Tobacco, unmanufactured 12,278 35,868 2,921 14 Beverages Distilled Alcohol 5,900 34,621 5,868 15 Beverage Non-Alcohol 17,391 29,518 1,697 16 Butter Cow Milk 5,011 21,955 4,381 17 Margarine Short 21,354 20,387 955 18 Infant Food 3,248 19,396 5,972 19 Food Wastes 11,974 18,800 1,570 20 Butterm.,Curdl,Acid.Milk 3,776 17,573 4,654 * International commodity prices Source: Food Agriculture Organization (FAO), estimated figures Nigeria imports approximately US$3.5 billion in food products annually and exports only US$500 million. Imports are dominated by bulk/intermediate commodities such as wheat, rice and sugar. However, with expanding purchasing power and a growing consumer base capable of purchasing higher priced foods, processed goods and live animals are two of Nigeria's larger import categories. With regards to seafood, Nigeria is a major importer with mackerel, herring and croaker being some of the dominant categories. Basic bulk food products and ingredients are imported to supply domestic manufacturers and processors. It is estimated that 60% of inputs used in the food processing sector are imported. Over US$2.5 billion worth of Nigeria's total agricultural imports are destined for the domestic food processing sector (Agriculture and Agri-food Canada, 2011). Nigeria is currently Canada's second largest trading partner in Sub-Saharan Africa, behind South Africa. Table 6 shows Nigeria’s top 5 agricultural import from Canada

Table 6. Nigeria’s Top 5 Agricultural import from Wheat, nes $70 million Tallow $5.5 million Ethyl alcohol $2.8 million Prepared potatoes $304,000 Milk powder $167,000 Source: Agriculture and Agri-food Canada, 2011

However, the 2011 NBS 4th quarter report indicated that there was decline in the importation of agricultural commodities. Live animals and animal products declined by 69.03%, vegetable products (48.65%), animal and vegetable fats (55.62%). The value of importation of some agro-based products in the 4th quarter of 2011 is as shown in Table 7 (NBS, 2011).

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Table 7. Quarterly imports by section 4th quarter 2011 S/N Product Value (N’m)

1. Live animals, animal products 69,119.05

2. Vegetable products 145,582.51

3. Animal and vegetable fats 10,671.73

4. Prepared foodstuff, beverages, spirits, and vinegar, tobacco

74,204.44

5. Raw hides and skins, leather, furskins, etc 1,520.81

6. Wood and articles of wood, wood charcoal and articles

3,001.22

7. Paper making materials, paper and paper board articles

47,320.79

8. Textiles and textiles articles 15,797.76

Source: NBS, 2011

The question is why agriculture in Nigeria has lost its former glory and what needs to be done? The challenges and constraints that have made it impossible for Nigerian agriculture to be developed have been discussed severally (Onwualu, 2009; 2010). These include:

Lack of Basic Physical Infrastructure and Essential Services Basic infrastructural facilities like electricity, water and transport that are critical for agricultural development are lacking. Lack of Appropriate Technology and Machinery for Production and Processing of Agricultural Products The absence of appropriate processing technology and the obsolete nature of existing machinery and equipment constitute great hindrance to agro raw materials processing in the country. Most of the processing equipment are outdated and lack the necessary spare parts for their maintenance. Consequently, the efficiency and product quality of the industries are greatly affected. This often contributes to the frequent break down and closure of such industries. Difficulties in Accessing Credit Facilities for Investment in Agriculture Investment in the sector is usually capital intensive and consequently, fund sourcing is a necessary aspect of the enterprise. However, it is extremely difficult to access credit for working capital from the financial institutions for agribusiness ventures. The high cost of funding arises from the depreciation of the local currency (Naira) against major currencies coupled with high lending rates. Presently, the lending rates fluctuate between 16 – 25% in some banks. The high

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lending rate encourages service business such as trading and imports rather than productive venture in the agribusiness sector. Apathy towards Investment in the Agricultural Sector There is great apathy towards investing in the agricultural sector of the economy. Preference is rather given to trade than real sector. This is because of the get-rich-quick attitude of the people at the expense of enduring and sustainable economic ventures like agro industrial processing (value addition). Poor Entrepreneurship Development The entrepreneur is the central actor in the process of change. There is a dearth of well trained and experienced human resource in the various fields of agricultural development. This has negatively affected the level of activities in the full exploration and exploitation of the abundant agricultural resources in the Country. Policy Issues and Challenges There is currently no separate policy articulation for the development of agribusiness except for the brief objectives stated in the 1988 Agricultural Policy for Nigeria document for agricultural commodity processing. The Nigeria agricultural policy is outdated and inconsistent with the situation of today. Most regulations and laws change frequently or are inconsistently applied, causing uncertainties in production and market prices of products, hence unpredictable projections in return on investments and lack of protection for local manufacturers due to inconsistency of policies. Weak Linkages between Agriculture and Industry and Poor Marketing One of the constraints to the development of agricultural resources in Nigeria is the inability of the Agricultural sector to harness the R&D results coming out of research centres into innovations. Most research findings in Nigeria do not get to the market because there is a very weak link between research and implementation. Both sectors appear to be working independently. 5.0 VALUE CHAIN APPROACH AS A PANACEA TO AGRICULTURAL DEVELOPMENT

Agriculture remains Nigeria’s area of economic strength with the highest potential for employment generation for majority of the population. Although Nigeria depends on the petroleum industry for its national revenue, the country is predominantly still an agricultural society. Approximately 70% of the population engages in agricultural production which is carried out mostly at subsistent level in the rural areas. Nigeria is blessed with a wide range of climate variations which allow for the production of a variety of food and cash crops. The staple food crops produced include cassava, yam, corn, coco-yam, cow-pea, bean, sweet potato, millet, plantain, banana, rice, sorghum, and a variety of fruits and vegetables. The leading cash crops are

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cocoa, citrus, cotton, Shea nut, castor, groundnut (peanut), oil palm and kernel, benniseed, and rubber. These cash crops were also Nigeria's major exports in the 1960s and early 1970s until petroleum surpassed them in the late 1970s. Chief among the export destinations for Nigerian agricultural exports are Britain, the United States, Canada, France, and Germany.

Nigeria is blessed with a variety of agricultural raw materials which can provide stimulus for the growth of processing industries. The strategy of value addition on agricultural produce provides ample opportunity for revenue generation, employment generation and effective post harvest management. Majority of the SMEs and indeed industries in Nigeria are agriculture related (Onwualu, 2009b).

Agricultural raw materials constitute an integral part of the industrial base of any country. Such raw materials may form the source of the required input into other industries or they may be distinct. Where such downstream industries do not exist, manufacturing companies are faced with the challenges of sourcing and processing of the raw materials. The concept of value addition is a vital component of the overall strategy for addressing global market competition, post-harvest losses and food security.

The processing of agro raw materials into various innovative products promotes market acceptability and gives the products high economic value which consequently brings higher income to the producer. Processing also expands the horizon of human participation in the production process and therefore creates awareness for employment generation in the downstream activities such as packaging, marketing, retail, exports, etc. Value addition provides opportunities for developing countries to work out economic strategies for competing successfully in the global scene.

Value Chains reside at the core of high-impact and sustainable initiatives focused on improving productivity, competitiveness, entrepreneurship, and Small and Medium Enterprises (SMEs) growth. Value Chain thinking is revolutionizing the agriculture and the food industry. Focus has shifted from agricultural production to consumer demand, marketing and the coordination of product flows from producer to consumer. The Value Chain concept acknowledges that production must be linked to demand and the critical role of organizing the flow from farmer to consumer opportunities (Porter, 1985; FAO, 2012).

5.1 Business Model Approach and Design Principles for Value Chain In developing a business model for value chain, the following factors must be considered (FAO, 2012): Focus on the weakest part of the value chain (e.g. focus on the producer more than the

buyer) Focus first on the value chain problems (to enhance reliability or raw material supply)

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Empower real development drivers (this will enhance competitiveness of agribusiness buyer, create value for SMEs and generate jobs), and

Mainstream business thinking in key institutions. The foundation for sustainable value chain models include: empowered organized farmer groups, receptive business sector, facilitating policy sector and partnership facilitator as shown in fig 4 (FAO, 2012).

Figure 4: Foundations of Sustainable Value Chain Models Source: Adapted from FAO, 2012

Value chains are concerned with what the market will pay for a good or service offered for sale. As raw materials are processed into final products, value is added at every stage as it moves through the value chain. Once the products have been produced, they are ready to be distributed to distribution centres, wholesalers, retailers or customers. Marketing must make sure that the product is targeted towards the correct customer group (Figure 5). The marketing mix is used to establish an effective strategy, any competitive advantage is clearly communicated to the target group by the use of the promotional mix (Porter, 1985).

Organized & Empowered

Facilitating Policy Sector

Receptive Business Sector

Partnership Facilitator

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Figure 5: Model of a targeted value chain Source: FAO, 2012. Agriculture remains an important means of alleviating poverty. Agriculture is evolving towards a global system requiring high-quality, competitive products and organized in value chains. Value chain analysis was originally developed for manufacturing (Gereffi, 1994). Then, Gibbon (2001) emphasised the relevance of value chain analysis for agricultural commodities as well. The relevance for agricultural commodities became particularly clear when the approach became applied to high-value produce within the so-called "buyer-driven" chains (Dolan and Humphrey, 2001; Dolan, et al., 1999; Ponte, 2002). Agricultural value chain links the steps a product takes from the farmer to the consumer and includes input suppliers, production, processing, marketing and finance (Figure 6). Value addition can occur without high cost capital investment or physical transformation of the product. Value subtraction takes place when the end price does not compensate the investment cost. Therefore, it is important to focus on core business before diversifying into capital intensive value adding agro-processing technologies. Investments in agro-food technologies will fail without attention to management systems and capacities that reduce transaction costs (FAO, 2012).

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Financial Services

Input Suppliers Growers Processing

IndustriesRetail

Industries

Business Support Services

Production Agri-food Industries

Operating Environment

Transport Storage Services

Logistics & VC Services

Agricultural Value Chains

Figure 6: Agricultural value chain Source: FAO, 2012

Commodity Value Chain The value chain approach has become an increasingly important framework for examining change in the global trade commodities and their implications for primary producers. Commodity value chain encompasses the whole lot of activities from production, processing distribution and marketing of specific traded commodity and identifies the main stakeholders involved at each stage, including research and development (Figure 7).

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Figure 7: Value chain model Source: FAO (2012)

Value chains of selected commodities discussed in this paper include oil palm, roots and tubers (cassava), fruits and vegetable, fish and rice. The value chain approach has worked in countries such as Brazil, Bolivia, Honduras, India, Kenya and other countries with similar socio-economic situation as Nigeria.

5.2 Oil Palm Value Chain

In order to enhance the competitiveness of the oil palm based industry, efforts should be directed towards the development of new plantations and applications of palm oil both in the food and non-food sub-sectors. In the food sub-sector, there is good potential for products such as trans-free margarine, shortening and specialty products. In the non-food sub-sector, the government should encourage the manufacture of oleochemicals and their value-added derivatives, which have great export potential due to the growing world demand for natural based oleochemical products. Market prospects are favourable for the production of specialty products, including glycerin, fatty nitrogen derivatives and fatty acid esters. The value chain for oil palm is as shown in figure 8.

Major end users for specialty surfactants are manufacturers of personal care and cosmetics products as well as fabric softeners. Nigerian producers will need to build up R&D capacity,

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seek research alliances with major end users and adopt a flexible approach to product development that encourages customized production of new products (Onwualu, 2009c).

In addition, government should continue to emphasize downstream processing and diversification of the usage of palm oil so as to increase income through higher value-added activities. Towards this end, it is proposed that private sector entities should explore the possibility of setting up methylester plants to increase the local use of palm oil and the use of oil palm biomass in making pulp and paper as well as raw materials for the particle boards and medium density fibre boards for wood-based industry.

Figure 8: Oil palm value chart

5.3 Fish Value Chain

Fish processing can be subdivided into fish handling, which is the preliminary processing of raw fish, and the manufacture of fish products. Another natural subdivision is into primary processing involved in the filleting and freezing of fresh fish for onward distribution to fresh fish retail and catering outlets, and the secondary processing that produces chilled, frozen and canned

OIL PALM TREE

PALM LEAVES PALM TRUNK

PALM FRUIT

BROOM BASKET ROPE

PALM WINE PARTICLE BOARD

PAPER PALM OIL FIBRE

PALM KERNEL

MARGERINE SHORTENING OLEOCHEMICALS SPECILTY PRODUCTS

PKO, VEGETABLE OIL CAKE (FEED), Brake pad, Road surfacing

Fuel, Rope, Bags Foot mat

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products for the retail and catering trades (Royal Society of Edinburgh, 2004). Value is added to fish and fishery products depending on the requirement of different markets. Figure 9 shows the fish value chart from the fisherman to the consumer (De Silva and Yamao 2006). Fish is transported widely in ships, and by land and air, and much fish is traded internationally. It is traded live, fresh, frozen, cured and canned.

Figure 9: Fish value chain Source: De Silva and Yamao 2006 In addition to preservation, fish can be industrially processed into a wide array of products to increase their economic value and allow the fishing industry and exporting countries to reap the full benefits of their aquatic resources. Value processes generate further employment and hard currency earnings. There are societal changes that have led to the development of outdoor catering, convenience products and food services requiring fish products ready to eat or requiring little preparation before serving (FAO, 2005). There are very few fish processing industries in Nigeria, although there are several streams and rivers within the country. The development of artificial fish farms (aqua culture) has recently attracted much attention in the country. Investment in this sector has high potentials of economic returns.

5.4 Fruit and Vegetable Value Chain

The varied ecological zones in Nigeria provide suitable climate for the production of a wide range of tropical fruits and vegetables (exotic and indigenous types). These include but not limited to mangoes, citrus, passion fruits, avocado, strawberry, banana and plantain, guava, cashew, leafy vegetables e.g. pumpkin, bitter leaf, spicy vegetables and fruit vegetables like chilli pepper. However, there is little investment on fruits and vegetable processing in Nigeria. Investment in processing of seasonal fruits into fruit juice concentrates and other products will greatly reduce post harvest losses experienced especially during seasons of these fruits. In 2002, the national demand for fruit juice was estimated at 200 million litres and rose to 320 million litres in 2007 valued at USD480 million. This prompted the ban on the importation of packaged

Fishermen

Export Processors Export

Wholesaler

Retailers

Importers

Local Processors (Smoking & Roasting)

25

juice by the federal government, however, about 95% of the juice packaged in Nigeria is made from imported fruit juice concentrates estimated at 300 million kg and valued at USD85 million (Global Agriculture Information Network, 2009). This huge importation of juice concentrate has revealed a demand-supply gap in the fruit juice industry. Consequently, the RMRDC initiated a multi-stakeholder project aimed at the sustainable production and processing of tropical fruits into fruit juice, concentrates and allied products. The project being funded by the World Bank has NACGRAB, NIHORT and NABDA as implementation research institutions while the secretariat is at RMRDC. Investment in the processing of fruits and vegetables has good economic returns. Figure 10 shows the process flow chart for tomatoes and other fruits while figure 11 shows the process flow chart for citrus processing.

Figure 10. Process flow chart of selected fruits Source: Kingpak.en.alibaba.com

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Figure 11. Citrus process flow chart Source: Kingpak.en.alibaba.com

5.5 Root and Tuber Crops Value Chain

It is a known fact that large quantities of tuber crops such as cassava, yam, potato and cocoyam are produced in Nigeria. In recent times, awareness has been created on the high economic potentials of root and tuber crops particularly cassava. It is reported that well over 200 different products can be obtained from processing cassava. Presently, in addition to the processing of cassava into gari, products obtainable from cassava processing include starch (native and modified), flour (fermented and unfermented, high quality cassava flour), chips, pellets, animal feeds, adhesives, ethanol, bread and other bakery products etc. However, there is the need for development of more industries (especially at cottage and small scale levels) for processing

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cassava and other roots and tuber crops into value added products. Investment in these industries could be very rewarding.

Nigeria has been recognized as the largest producer of cassava in the world. Cassava is grown in virtually all parts of Nigeria with rainfall greater than 100mm. It accounts for over 70% of the total production of the tuber crop in West Africa. This achievement has been attributed to the improved high yielding, pest and disease resistant cassava varieties produced and released to farmers through research collaborations between International Institute for Tropical Agriculture (IITA), Ibadan and National Root Crops Research Institute (NRCRI), Umudike.

Cassava gained national attention in 2002 following a Presidential Initiative on Cassava. The Initiative was launched in July, 2003 to promote cassava as a foreign exchange earner as well as to satisfy national demand. The Cassava Initiative brought to limelight the tremendous economic potentials of cassava as food and industrial raw material.

Cassava products can be classified into primary and secondary products. Primary products e.g. gari, fufu, starch, chips, pellets, and ethanol are obtained directly from raw cassava roots while secondary products are obtained from further processing of primary products (e.g. glucose syrup, dextrin, and adhesive are obtained from starch). Figure 12 shows cassava value chain.

Figure 12: Cassava value chain Source: USAID (2009)

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In Nigeria, 90% of cassava is used as human food and 5 – 10% as secondary industrial raw material (mostly as animal feed). Nigeria’s industrial demand for cassava products is mainly for High Quality Cassava Flour used in bakery and confectioneries, dextrin, pre-gelled starch for adhesives, starch and hydrolysates for pharmaceutical products and seasonings. Chips/pellets, starch and ethanol are three basic cassava-based products traded internationally. Improving the competitiveness of the entire agricultural value chain is critical to creating stable and growing markets for the commodities produced by farmers.

5.6 Rice Value Chain

Rice (Oryza sativa) is a prime income source for rice farmers in Nigeria. It is a major staple food for over half of the world population, according to Food and Agriculture Organization (FAO), 60% of the world population depends heavily on rice. Rice is the fourth major cereal in Nigeria after sorghum, millet, and maize. The demand for rice has assumed a consistent rise in the last three decades. Rice importation consumes about the largest chunk of Nigeria’s foreign exchange. Nigeria is the second largest importer of rice in the world, buying at least 2 million tonnes per year from exporting countries like China and Thailand. Yet Nigeria’s fertile land and rich agro-climatic conditions could easily produce rice to feed the entire country and generate surplus for the region. Rice is grown in all geopolitical zones in Nigeria. Anambra State is the third richest rice potential area in Nigeria. Investment in rice processing in Nigeria is very low, hence the country depends largely on importation. Figure 13 shows the process flow chart for rice processing.

Fig 13: Rice value chain Source: Bahoo rice mills (2009)

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Recommendations for Agribusiness-led Value Chain Development (FAO, 2012) Focus on the weakest link in the chain which determines level of efficiency of entire the

system. Focus on Cross-sectoral policies that ease the costs of doing business with smallholders. Public sector should be a neutral convener in the value chain and know when to push and

when to pull back. Promote institutional innovations and technical ‘on-the-job’ learning to reduce

transactions costs and capitalize on research and technology. Support coordination mechanisms which determine speed of innovation, competitiveness

and price stability through vertical coordination Identify policies supporting cluster development.

6.0 CLUSTER APPROACH TO VALUE CHAIN DEVELOPMENT

One way to ensure value addition to the vast agricultural resources in the country is the establishment of agricultural raw materials processing clusters. 6.1 The Concept of Industrial Cluster Cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities (Teshome, 2008). The geographic scope of clusters ranges from a region, a state, or even a single city to span nearby or neighbouring countries. Clusters are based on common technologies or know how, commodity or service linkages, competitive advantages etc (Msuya, 2008, Onwualu, 2010). A number of agro based clusters that can support the Nigerian agrarian economy in a competitive global market can be identified as: Agro production clusters, Agro processing clusters, Agro fabricators’ clusters, and Agro distribution and marketing clusters. In order to establish a competitive agro-based cluster the government, industry/private sector and the academia must play their respective roles. Esteban (2008) outlined the roles of government as: driver or facilitator of cluster policies, setting of standards for cluster practice, and promotion of positive policies via effective enforcement. Lyman (2008) identified the roles of industry/private sector as: the creator of wealth, the engine of growth, and the ultimate voice of the marketplace. Adewumi and Alonge (2008) and Msuya (2008) identified the roles of the academia to include: cluster mapping, research, development and training, role models for cluster facilitators, and influence policies on competitiveness and cluster development and networks.

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Nigeria currently has a number of industrial clusters which have high promise for driving industrial development (Oyelaran-Oyeyinka et al., 2007; Eboh, 2012; RMRDC). These include Otigba Computer Hardware Village, Ikeja Lagos, Nnewi Automotive Cluster, Kano Leather Cluster, Aba Leather and Footwear Cluster, Aba Fashion and Garment Cluster, Abeokuta and Oshogbo Tie and Dye Clusters (Oyelaran-Oyeyinka et al., 2007). Others are Rice Processing clusters in Ebonyi, Benue, Niger and Anambra States, Wood and Furniture Processing Clusters in FCT, Edo and Oyo States, Cashew Processing Clusters in Kogi, Enugu and Abia States, Sheabutter Processing Clusters in FCT, Niger and Kwara States, and Fish Processing Clusters in Borno, Kebbi, Rivers, Cross River, Akwa Ibom and Kogi States (Onwualu, 2010).

6.2 Benefits of Industrial Clusters The theory behind the benefits of industrial clusters is based on economics of scale, technology transfer and the availability of human capital. As firms physically congregate in one area, spillovers of knowledge, people and technology occur. These spillovers lead to increased productivity and reduced costs for all firms in the area. There are four major sources of productivity and cost benefits that can be linked to industrial clusters (Esteban, 2008, Lyman, 2008, Msuya, 2008). These are access to input and infrastructure; labour and human resource pooling; access to information and performance measures; and complementary products. These benefits occur both directly and indirectly to firms within a regional industrial cluster. The first benefits arise from the so-called “localization economics: This is simply a term for the reduction in costs to firms being located in close proximity. This costs saving is due to the availability of specialized inputs such as information and technology or business services. Furthermore, infrastructure, such as a job-training centre can facilitate work-force development. Since these specialized inputs and infrastructure (e.g. electricity, water, and roads) are subject to economics of scale, a group of firms demanding similar services can lead to a larger carrying capacity for up front fixed costs (Esteban, 2008, Lyman, 2008, Msuya, 2008). Increased access to labour and human resources is another benefit linked to industrial cluster. Labour pooling occurs when firms compete for the same types of occupations and workers. As these workers are drawn to an area of multiple employment opportunities, firms benefit by having access to large and appropriate set of potential employees from which to draw. The existence of a labour pool, if tied to technical or vocational training facilities, may raise general worker skill levels and reduce transaction costs associated with conducting an employee search (Esteban, 2008, Lyman, 2008). Another source of productivity and cost benefit linked to industrial clusters is access to information exchange and performance benchmark. This benefit may be intangible but remains an important factor to industrial clusters. Firms in close proximity can more closely monitor and gauge performance of both potential competitors and suppliers. By setting high standards and challenging each other, cluster-based firms can seek higher productivity solution and products.

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Firms within a region can attempt to engage in innovative practices and product ideas in order to outflank competitors. This drive for innovation and technological spillovers can lead to improvements in the long-term competitiveness and sustainability of local businesses Esteban, 2008, Lyman, 2008, Msuya, 2008). Physical proximity can also lead to complementary products and marketing relationship. The product of one firm may have an important influence on the activities of other firms. 6.3 Role of Clusters in Economic Development The emerging markets’ economy is usually an economy of Small and Medium enterprises (SMEs). Policies in the past have given a general perspective, direction and defining broad parameters of activity within the macro economic framework, but efforts have focused on the large enterprises, neglecting SMEs which are the heart of such economy (Adewumi and Alonge 2008). The SMEs suffer from a variety of weaknesses which have constrained their ability to adjust to the economic liberation measures introduced and to take full advantage of rapidly expanding markets of the world. The importance and contribution of Small and Medium Enterprises in the economic activity suggest that there is significant potential to enhance their growth through appropriate regulation and promotion. Establishment of Agro-processing clusters facilitates the growth of SMEs (Onwualu, 2010, 2011, Oyelaran-Oyeyinka, et al., 2007). The responsibility for facilitating SME policy development lies with local institutions such as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), RMRDC, etc (Onwualu and Obasi, 2009). One of the major reasons for the lack of coordination is that the institutions are not provided with a mechanism to initiate, coordinate, monitor and evaluate initiatives of SME development outside its own scope of activities (Onwualu and Obasi, 2008). Therefore, cross-departmental and stakeholder consultations, resulting in the preparation of the national SME policy are key to success (Oyelaran-Oyeyinka, et al., 2007). Some of the salient features of the role of clusters in economic development are:

• contribution to value added growth • provision of employment opportunities • potentially contributing to exports and • provision of flexibility and resilience to economic shocks.

6.4 Establishment of Agro Processing Clusters

Establishment of agro raw materials processing clusters is an important approach towards ensuring value addition. The Raw Materials Research and Development Council (RMRDC) recently produced a blue print for raw materials processing cluster establishment (RMRDC, 2010). The dream is to see to the emergence of at least one raw materials processing cluster in

32

every local government in Nigeria. In each cluster, there may be ten or more agro processing industries who share common facilities such as power, water, roads, markets, communication, skill acquisition centre, engineering and maintenance centre, finance centre, etc.; these can exist within industrial parks. The cluster approach is a Public Private Partnership (PPP) arrangement involving RMRDC, State Governments, Local Governments, higher institutions of learning and private sector. This is based on the Triple Helix Concept that brings Government, Academia and Industry together. The concept is already being driven through the platform of Pan African Competitiveness Forum (PACF), Nigeria Chapter with secretariat at RMRDC. Examples of such clusters are shown in Figures 14, 15 and 16 (Onwualu, 2010 and 2010b). Each cluster is to be based on the raw material prevalent in a particular locality (RMRDC, 2011). The dream is to have at least one innovation based cluster in every local government, translating to 774 clusters in Nigeria by 2020.

Figure14. Cassava Processing Cluster Source: Onwualu, 2010

33

Figure 15. Oil Palm Processing Cluster Source: Onwualu, 2010

DG/CEO-RMRDC, ABUJA-NIGERIA 16

84

Cashew Processing

Cluster (CPC)

Cashew nut production Cashew

Equipment Fabrication

Cashew nut oil

production

R&D and Innovation in

cashew products

development

Cashew marketing

cashew product

packaging

Cashew process

equipment fabrications production

cashew waste utilization

Cashew Plantation

development

Cashew fruit juice

production

Example of Cashew Processing Cluster

Figure 16. Cashew processing cluster Source: Onwualu, 2010b In the new drive at revamping the national economy using indigenous resources, the role of the private sector cannot be overemphasized. The experiences in the past have presented failures of

34

exclusive public sector’s involvement in business. Cases in question are the government owned oil mills, textile industries, poultry farms, food processing factories, even the refineries, etc. All these public owned/operated business entities have never been sustainable. These could be attributed to factors such as inconsistencies in government policies, lack of commitment of workers closely associated with the syndrome of “sharing the national cake”, lack of follow-up in government programmes, lack of appropriate monitoring and evaluating systems among, others. Each successive government had either changed or abandoned some good and positive on-going projects at the detriment of the people and the entire economy. The above scenario underscores the need for strong public-private partnership (PPP) for viable and enduring programmes. Therefore, for the cluster initiative to be successful, all the stakeholders (government, private sector, and knowledge centres) must execute their functions. This requires joint inter-governmental project planning and project design (Figure 17). Also inter-agency coordination and collaboration is required to make the process work (Figure 18).

Federal Government (policy framework, risk-ameliorating

guarantees, capacity building)

State Government (public utilities,

infrastructure, etc)

Local Government (municipal,

permits, etc)

Tiers of government should focus on where they are more economically efficient

Figure 17: Role of government in cluster development Source: Eboh, 2012

35

FMST (RMRDC)

raw materials development approach to

cluster

Federal Ministry of Trade & Investment (FMTI)

investment facilitation approach to cluster dev

Knowledge Centres (Universities & RIs)

research & development, innovation, technology

Federal Ministry of Agric (FMARD) commodity

value chain approach to cluster development

Cluster development

(Inter-Agency CCC)

Inter-Agency Coordination, Cooperation and Collaboration (CCC)

Figure 18: Inter-Agency collaboration in cluster development Source: Adapted from Eboh, 2012 7. EFFORTS OF RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (RMRDC) TOWARDS VALUE ADDITION TO AGRICULTURAL RESOURCES

The Raw Materials Research and Development Council (RMRDC) focuses on the exploitation, development and utilization of Nigeria’s vast industrial raw materials, their location, reserves and potentials as well as linkage between Nigeria and the outside world. Over the years, the Council has embarked on a number of programmes and projects with a view to facilitating the emergence of a strong industrial and technological base in Nigeria through the creation of a strong domestic source for necessary industrial raw materials (agricultural and mineral raw materials).

The Council is structured to:

• Provide information on raw materials availability, utilization and development. • Generate research ideas and manage research activities in both conventional and new and

advanced materials. • Develop technologies to test the practicability of research findings through pilot plant

operations. • Promote investment in tested research findings as a means of commercializing the results. • Create awareness on investment opportunities in resource-based industries.

36

The Council is involved in several programmes and projects geared towards the development of agricultural raw materials in the country. A few of the Council’s agricultural development programmes are discussed here. Research and Development Over 114 R&D projects have been funded by the Council with the objective of addressing the needs of the various sectors of the manufacturing industry in Nigeria. Some successful RMRDC sponsored R&D projects in the area of agricultural raw materials include: • Design and fabrication of spray dryer for small scale industry • Production of soy sauce • Developing long staple cotton fibre for the Nigeria textile industry • Production of furfural urea fertilizer from maize cob • Production and commercialization of dried mango chips using locally fabricated

multipurpose dryer • On farm trials of Alternative Formulation of Livestock Feed • Design, construction and testing of a motorized briquetting machine for wood and

agricultural waste • Bioactivity guided studies of acalypha species • Extraction of thaumatin (protein sweetener) from Thaumatococcus danielli, amongst

others. Boosting the supply of Agro-raw Materials The boosting programme is designed to fill gaps in the supply of some key agricultural raw materials for our industries. The industrial crops boosted so far include cassava, groundnut, soyabean, benniseed, castor, maize, sorghum, cotton, sugarcane, vegetables (tomato, cabbage, pepper, onions, carrots), jatropha, sheanut and citrus.

The RMRDC has also collaborated with relevant stakeholders to develop and add value to some selected crops and their derivatives. The following are examples of such collaborations.

Cashew development The Council collaborated with the Kogi State University Anyigba for the establishment of a Cashew Processing Plant in the university. The factory currently employs 120 women and youths for its operations. Similar collaboration with the University of Agriculture, Abeokuta is ongoing and the processing plant has been installed and ready for commissioning. Efforts are underway for similar partnership with some institutions with the cashew belt in the South-East. The Council is also working with Africa Cashew Alliance and Nigeria Cashew Association for further development of cashew business in Nigeria (Olife, et al., 2011).

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CASHEW PROJECT, KOGI STATE UNIVERSITY

30RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL, ABUJA, 2012 31RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL, ABUJA, 2012

Stock Piled Raw Cashew Nuts 250 Capacity scale for measuring Cashew Nuts

2 Units of steam boiler Loading of Raw Cashew Nuts into the steam boiler

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Steaming of Cashew Nuts Off-loading of steamed Cashew Nuts

Spicing hangers made of Installation of packaging machine stainless steel with 20 trays

Designed Packaging Material Packaged Cashew Nuts Moringa Development Council hosted the 1st National Summit on Moringa in 2008 to create moringa awareness. The success of the summit encouraged RMRDC to facilitate the formation of Moringa Development Association of Nigeria. Presently, several SMEs supported by the Council are producing different products (tea, powder, oil, food supplement) from the crop. RMRDC also funded the establishment of a pilot plant for water treatment using moringa seeds at ABU, Zaria.

39

MORINGA WATER TREATMENT PLANT, ABU, ZARIA

34RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL, ABUJA, 2012

Kenaf Development The Council collaborated with OAU, Ile-Ife and funded the design and fabrication of a mechanized kenaf decorticating machine at the Department of Agricultural Engineering of the university to eliminate the difficulties encountered in the manual process of decortication of kenaf by farmers. Also, a pilot 5 hectare kenaf farm and processing centre was established in collaboration with Institute of Agricultural Research and Training (IAR&T) in Ogbomosho, Oyo State in June 2011. RMRDC is hosting the secretariat for National Committee on Kenaf Development. Sericulture Development The collaboration between the Council and Ekiti State Government resulted in domesticating the technologies of silkworm egg production, mulberry cultivation, silk cocoon production, silk reeling, doubling, winding and weaving. Various items being produced include lawyers’ wigs and traditional woven fabrics. The Council trained a total of 683 youths at six Youth Empowerment Centres in Ekiti State on mulberry sericulture technologies namely: establishment of mulberry plantation, egg production, cocoon production, silk reeling, silk weaving and production of lawyer’s wig.

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Harvested cocoon and weaving machine Fruit Juice Development Through the efforts of RMRDC in particular and the Tariff Technical Committee as a whole, government banned the importation of fruit juice in retail packages. Fruit juice can only be imported as concentrates. The policy immediately resulted in the establishment of many industries for the production of fruit juice in retail packs resulting in savings $3 billion annually for the country. Council is working with NABDA, NACGRAB, NIHORT, FUMMAN, and other stakeholders to develop and popularize local fruit varieties for fruit juice production. Tissue culture facilities in these institutions are being upgraded with support from World Bank Step-B Project. Efforts are under way to have fruit juice concentrate plants in Nigeria through public private partnership. The Council is establishing a neem based fertilizer processing plant at Enugu RMRDC also collaborates with international organizations to execute some programmes and projects. Such organizations include Action Committee on Raw Materials (ACRM), G-77, G-15, Pan African Competitiveness Forum (PACF), African Technology Policy Studies (ATPS) Network, World Association of Industrial and Technological Research Organizations (WAITRO), Centre for S&T of the Non-aligned and other Developing Countries (NAM S&T Centre), Winrock International and United Nations Industrial Development Organization (UNIDO). The Council is collaborating with UNIDO on the following agricultural projects:

• Establishment of leather processing cluster in Kano. The equipment has been imported by UNIDO and RMRDC will handle the installation and provision of other basic requirements according to the terms of agreement.

41

• Production of briquettes and other energy products from typha grass in Jigawa State. • Ecology Diversification Synergy: Old and unproductive oil palm trees would be

processed for wood products and other industrial needs. • In addition, UNIDO has assisted to set up a common facility centre in Aba, Abia State,

for small/cottage leather products producers in the area with respect to capacity building in designs and production of quality shoes.

RMRDC has worked in collaboration with Winrock International on the development of apiculture. Beekeepers have been trained on best practices of bee keeping and improved packaging of the products

RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL, ABUJA, 2012 101

Honey and Bees production workshop

For most industrial crops, livestock and fishery, the Council has developed investment profiles that can assist any entrepreneur to set up small scale processing industries. 8. CONCLUSIONS This paper has shown that beyond crude oil, Nigeria is blessed with enormous agricultural resources that when fully harnessed and developed can generate more revenue for the country, create more jobs and is capable of solving most of the socio-economic challenges facing the country today including security. In order to harness and develop these resources, the value chain approach currently being promoted by the Federal Government (Federal Ministry of Agriculture) needs to be supported and pursued vigorously. This has to be integrated with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) funding

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window of Central Bank of Nigeria to solve the challenge of poor access to funds. The challenge of poor access to technology can be solved by approach with the Cluster concept of harnessing technologies from our research institutes and injecting them into the operations of SMEs operating in Cluster formation. For all these to work, the private sector (whether organized or not must be empowered by a robust funding mechanism and sustainable access to endogenous technology under a Public Private Partnership (PPP) arrangement. If all these are done in a sustainable manner, Nigeria can achieve self sufficiency in food and raw material production in key agricultural sectors by 2015 under the Transformation Agenda of the present administration. The potential for improving the economic base of Anambra State in particular and Nigeria in general and the livelihood of the people through value addition to agricultural raw materials is enormous. Value addition provides opportunities for the state to work out economic strategies for competing successfully in the global scene and create jobs for her teaming youths. Opportunities for setting up large, medium and small scale industries abound in Anambra State. Rich agricultural produce are available for agro-based industries. What is required is Public Private Partnership (PPP) arrangement that can see the Federal Government, Anambra State Government, Local Government Authorities and business individuals/organizations working together to achieve the industrialization of the state through an innovation driven cluster based value chain approach. This method addresses technological, infrastructure and finance challenges in the entire chain from production, handling, preservation, processing, distribution and marketing of selected agricultural products.

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Appendix 1 Nigeria’s Agricultural Raw Material Resources

STATE AGRICULTURAL RESOURCES

Abia Cassava, Maize, Vegetable, Palm Produce, Livestock, Cashew, Rice, Okro, Rubber, Yam, Cocoyam, Cocoa, Citrus, Pineapple, Local Pear, Plantain, Banana, Bitter cola, Pawpaw, Timber, Mango, Melon, Gmelina Abora, Ginger, Bamboo, Raffia Palm,.

Adamawa Sorghum, Millet, Beniseed, Potato, Mango, Water Melon, Onions, Poultry, Livestock, Beans, Coffee, Tea, Cocoa, Cassava, Yam, Sheanut, Fishery, Vegetable, Cotton, Cocoyam, Soya beans, Groundnut, Sorrel (Zobo), Guava, Tomatoes, Pepper, Okro, Neem Tree, Cheese, Bambara Nut, Cowpea, fruit, Coffee, Tea, Baobab Tree, Kenaf, Sugar Cane, Carrot, Citrus, Tomatoes, Dairy.

Akwa-Ibom Cassava, Maize, Palm Produce, Plantain, Rubber, Fruits, Forestry, Melon, Banana, Rice, Raffia Palm, Cocoyam, Coconut, Timber, Fishery, Rubber, Cocoa, Vegetable, Ginger, Yam, Water yam.

Anambra Maize, Rice, Pigeon pea, Yam, Beans, Cassava, Melon, Palm produce, Poultry, Livestock, Sweet potato, Kolanut, Castor oil seed, Plantain, Banana, Mango, Citrus, Piggery, Potato, Fruits, Cocoyam, Rabbitery, Fishery.

Bauchi Maize, Millet, Sorghum, Cotton, Cowpea, Sugarcane, Timber, Gum Arabic, Poultry, Livestock, Fish, Rice, groundnut, Tomatoes, Wheat, Sheanut, Okro, Mango, Guava, Pepper, Vegetables, Garden Egg, Timber, Fishery, Cashew, Ginger, Yam, Diary, Citrus.

Bayelsa Fishery, Shrimps, Oyster, Cassava, Plantain, Cocoyam, Timber, Raffia Palm, Cane Wood, Irvingia (Ogbono), Rice, Maize, Palm Produce, Yam, Sugar Cane, Plantain.

Benue Yam, Cassava, Sorghum, Maize, Rice, Millet, Citrus Fruits, Mango, Vegetable, Soyabeans, Groundnut, Beniseed, Chillies, Pepper, Livestock, Palm Produce, Spices, Fishery, Cashew Nut, Sugarcane, Locust Bean, Kolanut, Melon, Guinea Corn, Sheanut.

Borno Sorghum, Millet, Groundnut, Cowpea, Okro, Neem Tree, Gum Arabic, Tomatoes, Pepper, Kenaf, Mango, Livestock, Sorrel (Zobo Fruits), Cotton, Maize, Bambara Nut, Beniseed, Cassava, Tamarind, Rice, Sugar Cane, Guava, Citrus, Timber, Piggery, Poultry, Livestock, Onions, Cucumber, Carrots, Acacia Nilotica, Garden Egg, (Aya Ciprus Rutendus), Sheanut, Water Melon, Palm kernel, Dairy, Pawpaw, Wheat, Fishery, Black Caraway, Sweet Potatoes, Baobab Trees.

Cross River Palm Produce, Cassava, Poultry, Maize, Forestry, Fruits, Vegetables, Rice, Timber, Rubber, Raffia Palm, Gmelina, Kolanut, Fishery, Beniseed, Groundnut, Yam, Plantain, Banana, Cocoa, Cane Ropes, Coffee, Livestock, Millet, Sugar Cane.

47

Delta Cassava, Maize, Rice, Yam, Palm Produce, Cashew, Timber, Banana, Cocoa, Plantain, Poultry, Cowpea, Potato, Cocoyam, Pineaple, Oranges, Mango, Rubber, Piggery, Pear, Coconut, Sugarcane, Groundnut, Fisheries, Palm Produce, Kolanut, Livestock, Bamboo, Vegetable, Cattle, Water Yam.

Ebonyi Agro Raw Materials: Maize, Rice, Yam, Sweet Potato, Palm Produce, Banana, Mango, Cassava, Melon, Plantain, Citrus, Cocoyam, Fishery, Vegetables, Cocoa, Groundnut, Okro, Pepper, Pear, Tomato, Pigeon Pea, Kolanut, Timber, Piggery, Poultry, Cashew, Yam, Castor Seed, Cowpea.

Edo Banana, Cassava, Maize, Palm Produce, Pineapple, Plantain, Rubber, Timber, Cotton, Rice, Groundnut, Tobacco, Cocoa, Sugar Cane, Pawpaw, Cocoyam, Tomatoes, Yam, Livestock, Cattle, Mango, Poultry, Citrus, Coconut, Piggery, Fishery.

Ekiti Cocoa, Palm produce, Maize, Cassava, Plantain, Banana, Timber, Kolanut, Yam, Cocoyam, Rice, Coffee, Livestock, Vegetables, Piggery, Poultry, Soyabeans, Coconut, Cowpea, Pepper.

Enugu Rice, Yam, Maize, Cassava, Potato, Kolanut, Cowpea, Pigeon pea, Melon, Cashew, Cocoyam, Castor seed, Palm produce, Timber, Plantain, Banana, Mango, Fishery, Poultry, Sugar cane, Black beans, Pumpkin, Rabbitery, Cocoa.

FCT Maize,Sorghum,Rice,Millet,Groundnut,Cowpea,Yam, Cassava, Potatoes , Sugar cane, Banana, Poultry, Vegetables,Pawpaw,Tomato,Sugar, Cane, Beans, Livestock, Sweet Potatoes, Sheanut, Pepper, Livestock.

Gombe Sugarcane, Gum Arabic, Sorghum, Millet, Maize, Cowpea, Groundnut, cotton, Vegetables, Rice, Wheat, Fishery, Mango, Poultry, Livestock, Guava, Pepper, Okro, Bitter Leaf.

Imo Cassava, Palm produce, Citrus, Groundnut, Yam, Rubber, Livestock, Vegetables, Fruits.

Jigawa Sorghum, Millet, Cowpea, Wheat, Gum Arabic, Soyabean, Maize, Mango, Rice, Groundnut, Sugarcane, Beniseed, Beans, melon, Cotton, Vegetable, Pepper, Neem tree, Cashew, Livestock, Sweet Potato, Onion, Date Palm, Tomatoes, Bambara Nuts, Tamarin, Sheanuts, Red Sorrel (Zobo).

Kaduna Sorghum, Maize, Rice, Millet, Soyabean, Groundnut, Cowpea, Mango, Cashew, Cotton, Kenaf, Sugar Cane, Livestock, Yam, Okra, Pumpkin, Beniseed, Locust Bean, Cassava, Sheanut, Potatoes.

Kano Sorghum, Millet, Beniseed, Kenaf, Cassava, Groundnut, Cowpea, Wheat, Livestock, Poultry, Pepper, Fruits, Vegetables, Garlic, Cotton, Sheanut, Rice, Sunflower, Onion, Soyabean, Maize, Sugarcane, Guava.

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Katsina Sorghum, Millet, Maize, Cocoyam, Groundnut, Pepper, Sweet Potato, Rice, Fruits, Vegetables, Wheat, Sugar Cane, Sheanut, Onion, Cowpea, Neem Tree, Cotton, Mango, Locust Bean (Dadawa), Livestock, Beniseed. Hides & Skin, Soyabeans.

Kebbi Maize, Beans, Mango, Millet, Sorghum, Rice, fruits, Vegetables, Wheat, Onions, Sugar Cane, Gum Arabic.

Kogi Cassava, Yam, Maize, Rice, Sorghum, Soyabeans, Beniseed, Millet, Cowpea, Groundnut, Tomatoes, Pepper, Sheabutter, Mango, Castor Seed, Cashew, Livestock, Poultry, Pineapple, Amaranthus, Orange, Cocoyam, Cocoa, Coffee, Okro, Pigeon pea, Garden Egg, Bambara Nut, Palm Kernel, Oil Palm,

Kwara Cocoa, Palm Kernel, Cashew, Castor, Kenaf, Millet, Cassava, Tobacco, Melon, Soyabeans, Sweet Potato, Rice, Yam, Sheanut, Sorghum, Coffee, Neem Tree, Sugarcane, Livestock, Cashew Nut, Cotton, Maize, Fruits, Citrus, Kolanut, Banana, Plantain, Cotton Seed, Guava, Locust Bean.

Lagos Maize, Cassava, Neem Tree, Vegetables, Oil Palm, Plantain, Livestock, Sugarcane, Rabbitery, Piggery, Cashew Nut, Rice, Coconut, Timber, Fish, Cowpea, Rubber, Palm Produce.

Nassarawa Maize, Groundnut, Yam, Guinea Corn, Millet, Cassava, Rice, Cotton, Maize, Melon, Sweet Potato, Beniseed, Vegetable, Fruits, Sugarcane.

Niger Millet, Rice, Maize, Guinea Corn, Melon, Sheanut, Sugarcane, Groundnut, Cowpea, Cassava, Mango, Sorghum, Palm Produce, Cotton, Forestry, Beniseed, Livestock (Hide & Skin), Yam, Fisheries.

Ogun Maize, Cocoyam, Bamboo, Cashew, Sugarcane, Poultry, Fishery, Cocoa, Obeche, Yam, Plantain, Timber, Cowpea, Fruits, Palm produce, Soya beans, Coffee, Livestock, Shrimps, Teak, Gmelina, Rice, Banana, Iroko, Poultry, Cowpea, Orange, Oil palm, Cassava, Coconut, Melon, Mahogany, Kolanut, Rubber.

Ondo Cocoa, Maize, Cocoyam, Plantain, Livestock, Kolanut, Coffee, Coconut, Vegetables, Yam, Timber, Banana, Groundnut, Rice, Cotton, Fruits, Piggery, Poultry, Cassava, Fish, Oil palm, Rubber, Oranges, Guava, Mango, Bamboo, Cashew, Raffia palm, Tomatoes, Potatoes.

Osun Cassava, Plantain, Cocoyam, Vegetables, Livestock, Cotton, Fruits, Bread-fruits, Pawpaw, Rice, Potato, Sugarcane, Maize, Kolanut, Fruits, Timber, Plantain, Groundnut, Palm produce, Orange, Pineapple, Rubber, Millet, Cocoa, Cashew, Guava, Fishery, Oil palm, Coffee, Banana, Coconut, Mango, Taumatococcus Danielli, Yam, Sunflower, Bamboo, Beans, Soya beans.

Oyo Cocoa, Cassava, Coffee, Kolanut, Timber, Orange, Maize, Cocoyam, Sugarcane, Palm produce, Plantain, Banana, Cattle, Date palm, yam, Vegetables, Tomato, Tobacco, Fruits,

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Cotton, Melon, Millet, Sheanut, Sorghum, Pineapple, Pawpaw, Cashew, Mango, Coconut, Groundnut, Locust beans, Livestock, Sweet potato, Oranges.

Plateau Guinea corn, Millet, Fruits, Maize, Irish potato, Cotton, Groundnut, Acha, Sorghum, Wheat, Tomatoes, Beans, Beniseed, Cassava, Rice, Yam, Sweet potato, Mango, Guava, Pepper, Vegetables, Livestock, Carrots, Sugarcane, Poultry, Oranges, Pineapple.

Rivers Pineapple, Banana, Palm produce, Ginger, Raffia palm, Cassava, Timber, Palm produce, Guava, Kenaf, Fruits, Fisheries, (Crayfish), oyster), Sea shell, Rattan cane, Fish, Sea foods, Plantain, yam, Coconut, Shrimps, Plywood, Melon, Plantain, Rubber, Maize, Rice, Orange, Mango.

Sokoto Sugar Cane, Millet, Tomatoes, Livestock, Hides & Skin, Spices, Vegetables, Cow pea, Locust Beans, Bagaruwa (Acacia Nilotica), Kenaf, Wheat, Maize, Sweet Potatoes, Onion, Pepper, Rice, Fish, Groundnut, Beans, Gum Arabic, Carrot, Garlic, Fisheries, Tobacco, Guinea Corn, Mango, Garden Egg, Cabbage, Okro.

Taraba Sorghum, Maize, Millet, Rice, Wheat, Groundnut, Yam, Cowpea, Livestock, Soyabeans, Bambara Nuts, Beniseed, Cotton, Jute, Cassava, Sweet Potato, Cocoyam, Vegetable, Banana, Fishery, Plantain, Sugar Cane, Sorrel (Zobo), Tobacco, Poultry, Livestock, Melon, Pineaple, Date Palm, Borassus Palm, Sun Flower, Irish Potato, Pear, Fruits, Cocoa, Palm Produce, Cashew, Coconut, Diary, Tamarind, Tea, Oranges, Mango.

Yobe Rice, Cowpea, Millet, Sorghum, Bambara Nut, Vegetable, Onion, Tomatoes, Palm Product, Fishery, Livestock Maize, Groundnut, Wheat, Fruits, Sorrel (Zobo Fruits), Mango Gum Arabic, Beniseed, Cassava, Guava, Locust Beans, Tamarind, Kenaf, Pepper, Cotton, Oranges.

Zamfara Sorghum, Maize, Millet, Cotton, Groundnut, Sheanut, Cowpea, Beans, Mango, Rice, Cassava, Spices, Fishery, Poultry, Cattle, Sheep, Goat, Camel, Guinea Corn, Locust Beans, Sugar Cane, Livestock, Hides & Skin, Kenaf, Gum Arabic, Honey, Vegetables, Calabash, Tobacco, Wheat, Potato, Bagaruwa.

Source: Onwualu (2009)

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Appendix 2 Educational Institutions for Agriculture in Nigeria S/N Name of Institution Remark 1. University of Agriculture Abeokuta Federal Government

2. University of Agriculture Umudike Federal Government

3. University of Agriculture, Makurdi Federal Government

4. College of Agriculture (DAC), Kabba, Kogi State Federal Government 5. Federal College of Agriculture Akure, Ondo State Federal Government 6. Federal College of Agriculture, Dadinkowa, Gombe State Federal Government 7. Federal College of Agriculture, Ibadan, Oyo State Federal Government 8. Federal College of Agriculture Ishiagu, Ebonyi State Federal Government 9. Federal College of Animal Health and Production Technology,

Ibadan, Oyo State Federal Government

10. Federal College of Animal Health and Production Technology, Vom, Plateau State

Federal Government

11. Federal College of Fisheries and Marine Technology, Lagos Federal Government 12. Federal College of Freshwater Fisheries Technology, Baga, Borno

State Federal Government

13. Federal College of Freshwater Fisheries Technology, New Bussa, Niger State

Federal Government

14. Federal College of Forestry Mechanisation, Afaka, Kaduna State Federal Government 15. Federal College of Land Resources Technology, Kuru, Jos, Plateau

State Federal Government

16. Federal College of Land Resources Technology, Owerri Imo State Federal Government 17. Federal College of Wildlife Management, New Bussa, Niger State Federal Government 18. Federal College of Forestry, Ibadan, Oyo State Federal Government 19. Federal College of Forestry, Jos, Plateau State Federal Government 20. Samaru College of Agriculture (DAC), Zaria Kaduna State Federal Government 21. Adamawa State College of Agriculture, Mubi Adamawa State

Government 22. Akperan Orshi College of Agriculture, Yandev Gboko Benue State

Government 23. Akwa Ibom State College of Agriculture, Obio-Akpa Akwa Ibom State

Government 24. Anambra State College of Agriculture, Igbariam Anambra State

Government 25. Audu Bako School of Agriculture, Danbatta, Kano State Kano State

Government

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26. College of Agriculture, Jalingo, Taraba State Taraba State Government

27. College of Agriculture, Lafia, Nassarawa State Nassarawa State Government

28. College of Agriculture, Zuru, Kebbi State Kebbi State Government

29. Edo State College of Agriculture, Iguariakhi Edo State Government

30 Jigawa State College of Agriculture, Hadejia Jigawa State Government

31. Mohamet Lawan College of Agriculture Maiduguri, Borno State Borno State Government

32. Niger State College of Agriculture, Mokwa Niger State Government

33. Oyo State College of Agriculture, Oyo Oyo State Government

34. Plateau State College of Agriculture, Garkawa Plateau State Government

35. Regional Agricultural Training School, Maiduguri, Borno State Borno State Government

36. Rivers State Institute of Agricultural Research and Training, Onne Rivers State Government

37. School of Agriculture, Ikorodu, Lagos State Lagos State Government

38. Yobe State College of Agriculture, Gujba Yobe State Government

39. Zamfara State College of Agriculture, Bakura Zamfara State Government