integration policy - nbplc sorghum brochure 2014.pdf · (icrisat), seed producers, regional...
TRANSCRIPT
1
2ENHANCING THE SORGHUM VALUE CHAIN
SECTION 1
Introduction 4Vision Statement 6Mission Statement 7Statement from the Managing Director/Chief Executive Officer 10Preface 13Nigerian Breweries at a Glance 14
SECTION 2: Our Strategic Response to the BackwardIntegration Policy 17
SECTION 3: The Grain Sorghum 21
Nutritional Profile 23Nutritional Information 24
SECTION 4: Development of the New Hybrid Sorghum 25
Overview of our venture into the Development of the New Hybrid Sorghum 26Governance Structure 28The New Hybrid Sorghum: A Milestone 30The Roles of Partners 34Testimonial from Springfield Agro Limited 39
SECTION 5: The Nigerian Raw Sorghum Market 41
Engaging Smallholder Farmers 42Protecting Interest of Farmers 43Providing Technical Assistance to Farmers 44Multiplier Effect of Sorghum Supply 45Producing and Supplying Raw Sorghum 46
Contents
3
SECTION 6: Malted Sorghum 49
Promoting the Use of Malted Sorghum 50Our Support to Sustainable Supply of Malted Sorghum 51Aba Malting Plant 51Kudenda Malting Plant 53Third Party Malting Plants 54The Malting Process 54
SECTION 7: Future Outlook on Sorghum 55
A New Road Map for Nigeria’s Agricultural Sector 56Guaranteed Demand 57Development of Improved High-Yield Hybrids 57Export Opportunities 58Improved Food Security and the Local Economy 58
SECTION 8: Benefits, Challenges and Opportunities 59
Benefits 60Challenges 61Investments Opportunities 61Case Study of Nikoy Nigeria Limited 62Conclusion 64Glossary 65
ENHANCING THE SORGHUM VALUE CHAIN
3
4ENHANCING THE SORGHUM VALUE CHAIN
Introduction
5
As a responsible and
forward-looking Company, we
take issues of sustainable
development very seriously. In
the last twenty-five years, we
have made huge investments to
significantly improve the output
and quality of sorghum
produced in Nigeria through
support to research and
introduction of new hybrids,
among other efforts. These have
remarkably enhanced the
fortunes of local farmers and
taken the sorghum value chain
within the economy to new
heights.
Enhancing the Sorghum Value
Chain, issued by our Corporate
Affairs Department, is our
second publication on the
journey to support commercial
production of sorghum, one of
Nigeria’s major staple foods,
and a commercially viable grain
grown in the country. It
chronicles some of the initiatives
as well as our latest strides and
achievements in our sorghum
development programme. It is
part of our drive to remain in
business and make more
positive contributions to support
the society and the economy.
“Enhancing the Sorghum
Value Chain, issued by
our Corporate Affairs
Department, is our
second publication on the
journey to support
commercial production of
sorghum, one of Nigeria’s
major staple foods, and a
commercially viable grain
grown in the country.”
5
6ENHANCING THE SORGHUM VALUE CHAIN
Vision
Statement
To be
a World Class
Company
“
”
7
Mission
Statement
To be the leading
beverage company in
Nigeria, marketing
high quality brands to
deliver superior
customer satisfaction
in an environmentally
friendly way
“
”
8ENHANCING THE SORGHUM VALUE CHAIN
“Our investment towards the
s u s t a i n a b l e c o m m e r c i a l
production of sorghum is in line
with our global sustainability
agenda - Brewing a Better Future-
which includes a commitment to
locally source a minimum of 60%
of raw materials used in our
operations by 2020. This further
validates our licence to operate
and supports our standing as
Africa’s partner for growth.”
Siep Hiemstra,
Regional President, Heineken, Africa and the
Middle East
ENHANCING THE SORGHUM VALUE CHAIN
8
9
“The huge investments we have
made and milestones recorded in
the development of sorghum in
Nigeria in the last twenty-five years
are a reflection of our philosophy
of sustainable development with
the goal to support our
stakeholders, create a better
society and foster good living
conditions for us and the next
generation.”
Nicolaas A. Vervelde,
MD/CEO, Nigerian Breweries Plc
9
10ENHANCING THE SORGHUM VALUE CHAIN
Statement from the Managing Director/
Chief Executive Officer
Winning with Nigeria
t h r o u g h S o r g h u m
Development
I am highly pleased to present
to you, Enhancing the SorghumValue Chain, our secondpublication on the journey tosupport commercial productionof sorghum, one of Nigeria’smajor staple foods and acommercially viable graingrown in Nigeria. Since our firstpublication in 2009, we havemade significant stridestowards the development andcommercial cultivation ofsorghum and its use by industry.
Our commitment to the sustainablecommercial production ofsorghum is in line with part of ourglobal Company’s long-termsustainability agenda of Brewing aBetter Future (BaBF), which is tosource a minimum of 60 per centof raw materials used in ouroperations locally by 2020. BaBF
was introduced by HEINEKEN in2010. The ambition is tocontinuously improve our
environmental impact, empowerour people and our communities aswell as improve the role of ourbrands in society. The four focusareas for BaBF are: to reducewater consumption, reduce CO
2
emission, improve local sourcingand deliver on industrycommitments towards responsibleconsumption.
In this edition, we are updatingreaders about the recentdevelopments, milestones as wellas future plans for this cereal, whichis increasingly taking a greaterdimension in our national foodchain discourse among grainscultivated in Nigeria.
Following Government’s call forbackward integration through theuse of local cereals in the 1980’s,Nigerian Breweries Plc committedsignificant resources to thecommercial cultivation of sorghum.Research and development effort toexplore and establish bettervarieties, and trials to perfect its usein brewing some of our beveragescommenced and have since
advanced to great heights. We sawthe potentials of the cultivation anduse of sorghum in facilitating sectorlinkages and creating a valuechain that greatly benefits ourstakeholders, especially thefarmers.
We have continued to collaboratewith various implementingpartners. These include theUnited States Agency forInternational Development/Maximizing Agricultural Revenuesand Key Enterprises in targetedSites (USAID/MARKETS). We arealso working with the Institute forAgricultural Research (IAR),International Crops ResearchInstitute for the Semi-Arid Tropics(ICRISAT), seed producers,regional production coordinatorsand other partners in thesorghum value chain.
The USAID/MARKETS I projectteam partnered with us from 2003to 2006 in the development ofCSR-01 & CSR-02 sorghumvarieties with the capacity toincrease farm yield from less than1 metric tonne per hectare to 2.5metric tonnes per hectare.
Our effort to cultivate bettervarieties of high-yield sorghumseeds has produced betterresults. In 2012, we completedresearch and development workon two new high-yield hybrid
11
sorghum- CSR-03H and CSR-04H, with the potential to yield 4metric tonnes per hectare. Theywere certified, released, andregistered in Nigeria by theNational Centre for GeneticResources and Biotechnology(NACGRAB) in December 2012.This milestone was achievedthrough the collaboration ofNigerian Breweries and relevantresearch institutes and wascommended by NACGRAB.
In the last 10 years, we have spentN100m annually, amongst otherthings, and this has contributed toincreasing the capacity of localfarmers and suppliers, providingmore jobs for youths and povertyalleviation.
With the acquisition of SonaSystems in 2011, NigerianBreweries inherited a sorghummalting plant in Kudenda, KadunaState. This is in addition to the Abamalting plant, the biggest sorghummalting plant in Africa, that wascommissioned in 2008 for theproduction of malted sorghum. Wealso facilitated the establishment ofsome privately owned sorghummalting plants.
The 2013 Socio-Economic ImpactAssessment of our Companyshows that our expenditure onlocal sorghum supports a total ofN8.8 billion value-added in the
STATEMENT FROM THE MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER
supply chain. The employmentassociated with local sorghumprocurement is almost 50,000 jobsof which over 90 per cent are atthe local farmers level. Most ofthese farmers are indirectlyimpacted by our presence.
We are aware that Nigeria plansto make agriculture a majorbusiness that will improve foodsecurity and provide employmentopportunities for our teemingpopulation of unemployed youths.Our sorghum developmentstrategy supports this aspirationand is aligned towards improvingthe commercial importance of thecereal. It is also designed toestablish a value chain usinghybrid seeds that can enableevery stakeholder within thesorghum network to benefit.
I like to commend the FederalGovernment of Nigeria for its focuson the Agricultural TransformationAction Plan which is designed torevolutionize the sector and makeagriculture a viable business in thecountry. We recommend that thegovernment should give moreattention to sorghum to improvefood security, drive revenuegeneration, export and reducedependency of industry onimported raw materials.
This brochure chronicles ourinvolvement in the sorghum
supply chain development andprovides the latest information onwhat we are doing with thisimportant grain. It is our story ofhow far we have gone withsorghum and where we hope totake the cereal. It showcases ourcommitment to sustainabledevelopment through ourcontinued support to thedevelopment of commercialproduction of sorghum in Nigeria.
As with other areas of our business,our sorghum development strategywill continue to offer us theopportunity as an industry leaderto make a difference towardssustainable development on anational scale. This will reinforceour philosophy of Winning with
Nigeria.
Mr. Nicolaas A. VerveldeManaging Director/Chief Executive
Officer
11
12ENHANCING THE SORGHUM VALUE CHAINENHANCING THE SORGHUM VALUE CHAIN
“The sorghum supply chain
development programme and the
rapidly evolving improvements in
sorghum quality and productivity
have encouraged a win-win
situation for our Company and
critical stakeholders.”
Mr. Hendrik A. Wymenga,
Technical Director, NB Plc
12
13
Preface
I am happy to introduce to you,Enhancing the Sorghum ValueChain, the second edition of ourpublication on our commitment tothe development of sustainablecommercial production ofsorghum in Nigeria. In the firstedition, we detailed the strides wemade to support the commercialproduction of sorghum indeveloping a sustainable valuechain for the cereal throughcollaboration with researchinstitutes and other stakeholders.We discussed the value creation insupport of sorghum farmers aswell as the use of the grain in theproduction of some of ourbeverages. We are delighted thatthe first edition was well received.
This edition features the furtherprogress we have made in thedevelopment of new hybrids,supporting improvements inquality and productivity, enhancedperformance of the sorghum valuechain and contributions to thenational economy, among others.The publication will inform you
about our achievements andchallenges in the journey andhow sorghum is positivelyimpacting the lives of farmers andother stakeholders engaged inthe programme, providingbenefits to all parties involved andhelping the growth of the Nigerianeconomy.
For those who are new to thesubject, it provides basicinformation about the grainsorghum, the botanical nature ofthe grain, its uses and values. Italso explains the development ofthe new hybrid sorghum varieties,CSR-03H and CSR-04H as wellas our other efforts in expandingthe sorghum value chain.
We have provided data on ourinvestments and achievementson the sorghum value chain. Weinterviewed stakeholders forupdates and have presented
latest developments in the valuechain for your reading pleasure.
The achievements we haverecorded to date and theopportunities presented by ourengagement with variousstakeholders are also discussedherein. All these and much morewe have presented to you in thiscolourful and informative document.
My thanks go to my colleagues inthe Corporate Affairs Departmentand Technical Division for theirinput in the preparation of thispublication.
I am, therefore, delighted to inviteyou to explore our sorghum story.
Happy Reading!
Mr. Kufre U. EkanemCorporate Affairs Adviser
14ENHANCING THE SORGHUM VALUE CHAIN
Nigerian Breweries Plc., thepioneer and largest brewingcompany in Nigeria, wasincorporated in 1946. TheCompany recorded a landmarkwhen the first bottle of STAR lager
Nigerian Breweries
at a Glance
beer rolled off the bottling linesin its Lagos Brewery in June1949. This brewery hasundergone several optimizationprocesses and as at todayboasts of one of the mostmodern brew houses in thecountry.
Over the next decades, NigerianBreweries Plc. commissionedbreweries across the breadth ofNigeria, Aba Brewery in 1957,Kaduna Brewery in 1963, andIbadan Brewery in 1982. In1993, the Company acquired its
fifth brewery in Enugu. In October2003, a sixth brewery, sited atAmeke, in Enugu State wascommissioned and christenedAma Brewery. Ama Brewery istoday, one of the biggest andmost modern breweries in Africa.Operations in the old EnuguBrewery were howeverdiscontinued in 2004, while theCompany acquired a maltingplant in Aba in 2008.
In October 2011, NigerianBreweries acquired majorityequity interests in Sona Systems
The Corporate Headquarters of Nigerian Breweries Plc
15
Associates Business ManagementLimited (Sona Systems) and LifeBreweries Limited from HeinekenN.V. This followed Heineken’sacquisition of controlling interestsin five breweries in Nigeria fromSona Group in January 2011. SonaSystems’ two breweries in Ota andKaduna, and Life Breweries inOnitsha have now become part ofNigerian Breweries Plc., togetherwith three brands: Goldberg lager,Malta Gold and Life Continentallager.
Brand Portfolio
Nigerian Breweries Plc. has a richportfolio of high quality brands:Star Lager Beer, the first in itsportfolio, was launched in 1949;this was followed by Gulder LagerBeer in 1970; Maltina, thenourishing Malt Drink, wasintroduced in 1976, followed byLegend Extra Stout in 1992.Amstel Malta was launched in1994 while Heineken theInternational Premium Lager Beerwas relaunched into the Nigerianmarket in 1998. Maltina Sip-it,packaged in Tetrapaks waslaunched in 2005, while Fayrouzwas launched in 2006. In 2007, theCompany introduced Star,Heineken and Amstel Malta incans. In 2013, the Company solda total of 30 Stock Keeping Units(SKUs) including Gulder Can,
Legend Can, Heineken Magnum,Maltina Can and PET, FayrouzCans, Fayrouz PET, ClimaxEnergy drink as well as Goldberglager, Malta Gold and LifeContinental lager, which becamepart of the family in October 2011.Two brand extensions – Star Liteand Fayrouz Exotic wereintroduced in the first quarter of2014.
Ancillary Industries
As a major brewing concern, theCompany encourages andsustains many ancillary businesseslocally. Several of theseorganisations and individualsdepend largely on the Company fortheir means of livelihood. Theseinclude manufacturers of bottles,cans, PET resins, crown corks,labels, cartons, plastic crates and
CORPORATE PROFILE
such service providers as Hotels/Clubs, Distributors, Transporters,Event Managers, Advertising, PRand Marketing CommunicationAgencies etc.
Corporate Social Responsibility
Nigerian Breweries is a sociallyresponsible corporateorganisation with good trackrecord of corporate socialinitiatives in identified andstrategic areas. Over the years,Nigerian Breweries has been veryactive in supporting thec o u n t r y’s d e v e l o p m e n taspirations in line with ourcommitment to “Winning withNigeria.” We have continued toidentify and respond to majorchallenges confronting our nationthrough our corporate socialinvestments especially in the areas
16ENHANCING THE SORGHUM VALUE CHAIN
CORPORATE PROFILE
of education, the environment, water,youth empowerment, talentdevelopment and sports, amongstothers. The Company in 1994established The Nigerian Breweries-Felix Ohiwerei Education Trust Fundwith a take-off grant of N100 millionto take a more active part in thefunding of educational and researchactivities in Nigeria. This is inaddition to its secondary andu n i v e r s i t y s c h o l a r s h i pprogrammes for children of itsemployees. The Company is alsoinvolved in the development ofleadership, musical and movietalents, through variousprogrammes.
Socio-Economic Impact
Nigerian Breweries has asignificant presence in Nigeriawith 7 breweries, 2 malting plantsand distribution centresstrategically located across thecountry. Some of the impacts ofthe Company’s operations on theNigerian economy are as follows:
In 2011, the Company’soperations represented12% of Nigerianmanufacturing in termsof value added. In thatsame year, NigerianBreweries generatedN245bn revenue andN345bn consumption ofits products.
N i g e r i a n B r e w e r i e soperations have a valueadded impact of N243bn onNigeria’s economy whichrepresents 0.65% of thenation’s GDP.
In 2011, N87 billion was paiddirectly and indirectly astaxes which represented4.02% of Nigeria’s non-oil taxrevenue.
Nigerian Breweries has ahigh value direct work forceof 3,200 employees and theCompany’s operationssupport indirectly 586,000jobs which represents 0.64%of the total labour force, ofwhich 54,000 are within theSorghum Value Chain.
17
Section 2OUR STRATEGIC RESPONSE TOGOVERNMENT’S BACKWARD INTEGRATIONPOLICY
18ENHANCING THE SORGHUM VALUE CHAIN
Nigeria is the second largest
producer of sorghum, coming next
to Mexico. Most of the domestic
production of the grain in Nigeria
is used for household consumption
and as fodder. In some parts of the
world, however, sorghum is a cash
crop processed into food,
beverages, commercial animal
feed, and ethanol. Nigerian
Breweries experience over the
years has shown that development
of commercial sorghum offers
substantial benefits to Nigerian
farmers, industry and national food
security.
In line with our mission statement,
we take concrete steps to positively
impact the society and the
economy in an environmentally
friendly manner. As part of our
business strategy, Nigerian
Breweries has since the late 1980s
contributed significantly and has
partnered with some key
Section 2
The Mace: a sculptural piece in front of the Senate Building of the Federal Republic of Nigeria
OUR STRATEGIC RESPONSE TOGOVERNMENT’S BACKWARD INTEGRATIONPOLICY
19
stakeholders in improving the
production of sorghum in Nigeria
and this way enhance economic
opportunities for many farmers. In
the last 10 years, Nigerian
Breweries has spent N100m
annually on the Sorghum Value
Chain Programme and engaged
over 10,000 farmers.
Backward Integration
Policy
Following the Structural
Adjustment Programme (SAP) of
the 1980s, the Federal
Government of Nigeria in an effort
to conserve foreign exchange
earnings, and enhance domestic
and commercial production,
started restricting importation of
certain goods. Some categories
of goods were completely
prohibited from the country’s
import l ist. In addition, the
government introduced the policy
on Backward Integration, which
requested manufacturers to
substitute some imported raw
and packaging materials with
local alternatives.
Malted barley importation was
banned in 1988 and all breweries
were forced to brew with only
locally available grains. In
response, Nigerian Breweries
commenced exploratory work in
reformulating some of its brands
with local substitutes. One of the
local grains that then received the
attention and patronage of the
Company was sorghum.
Some level of success, which was
to be improved upon with time,
was recorded. Ever since, some
sorghum farmers have continued
to receive part of our corporate
social investment outflows as well
as market support as part of our
grain supply chain development.
In 1999, following a reversal in
policy direction by the
“In response, Nigerian
Breweries commenced
exploratory work in
reformulating some of its
brands with local
substitutes. One of the
local grains that then
received the attention and
p a t r o n a g e o f t h e
Company was sorghum.”
government, the ban on malted
barley importation was lifted. The
effort at backward integration
was to later peter out following
the policy reversal. The net effect
was for the beverage industry to
re-focus once again from the use
of locally grown sorghum to
imported malted barley. Thus, the
initial attempts at local cultivation
of grains waned considerably.
Nigerian Breweries, however,
driven by corporate social
responsibility as well as business
interests, continued to work on
i ts sorghum d e v e l o p m e n t
programme, latching on the
tremendous experience already
gained in incorporating local
grains in its beverage
formulations. As a result, the
Company decided to maintain a
substantial level of local grains in
most of its products recipes. This
gave the Company the
competitive advantage of
pioneering the commercial
development of sorghum using
new hybrids in Nigeria.
The decision to sustain the
sorghum supply development
effort was taken among other
OUR STRATEGIC RESPONSE TO GOVERNMENT’S BACKWARD INTEGRATION POLICY
20ENHANCING THE SORGHUM VALUE CHAIN
reasons, to encourage the
sustainability of our business and this
way, to help in poverty alleviation
among farmers by boosting the
quality of seeds sown and the
quantity of yield per hectare of land.
In addition, it was designed to
motivate demand for sorghum with
the attendant multiplier effects as well
as lead our industry and corporate
Nigeria in showing more interest in
the agricultural sector as a way to
improve food supply, create
employment opportunities for our
youths as well as explore the
opportunities of producing sorghum
and other grains for export.
OUR STRATEGIC RESPONSE TO GOVERNMENT’S BACKWARD INTEGRATION POLICY
Workers loading bags of sorghum into a truck
Sorghum seeds A happy family
“The decision to sustain
the sorghum supply
development effort was
taken among other
reasons, to encourage
the sustainability of our
business and this way,
to help in poverty
alleviation among
farmers by boosting the
quality of seeds sown
and the quantity of yield
per hectare of land.”
21
Section 3 THE GRAIN SORGHUM
22ENHANCING THE SORGHUM VALUE CHAIN
THE GRAIN SORGHUM
Sorghum is a local grain that isgrown predominantly in the semi-arid savannah and grassland areasof Northern Nigeria and other partsof the world. It is nutritionally rich andserves as a staple food in most partsof Northern Nigeria. The grain hasassumed commercial relevancelately, especially in the food andbeverage industry. It has been foundto be a valuable ingredient next tomalted barley used in the industry.Grain sorghum is an annual grasssimilar in appearance to maize(corn), although it has more stemsand more finely branched roots.Wild sorghum is a tall plant of 5-7feet. Through breeding efforts,newer varieties now have 2-3 dwarfgenes, resulting in a plant 2-4 feettall and easier to harvest.
It has been difficult for historians totell exactly when and wheresorghum was domesticated.Whether it was domesticated inAfrica, or transported from Africaand domesticated in India and thenreturned to Africa, is not certain.However, it is believed that Africanslaves brought sorghum seeds withthem to the United States of
America, which has turned out tobe one of the major sorghumgrowing and exporting countriesin the world. Sorghum is anutritionally rich, energy-producing cereal that can begrown in areas of the world thatare too hot or too dry for othercrops to be grown successfully.Sorghum is one of the five mostimportant cereal crops behindrice, wheat, corn and barley. Thetop sorghum producers areMexico, Nigeria, U.S.A and India.The U.S is the top exporter (70%to 80% of world sorghum exports)and also uses sorghum aslivestock feed. Today, the grain
sorghum is cultivated across theworld in the warmer climaticareas. It is grown in about 8.5million hectares of land in Nigeria.In 2013, the production levels ofsorghum in Nigeria, Africa and theworld were estimated at 6.9million, 20 million and 60 millionmetric tonnes, respectively.
Sorghum quantitatively is thesecond most important cereal inAfrica after maize. It is mainlyeaten in form of flour or paste. It
Section 3
A grain sorghum cultivar
Top 10 countries in theproduction of sorghum in2012 ( Metric tonnes)
Source: Food and Agricultural Organisation
of the United Nations (FAOSTAT) 2012
23
has a high calorific and nutritionalvalue and, therefore, it isrecommended for infants, pregnantand lactating mothers, the elderlyand the convalescents.
Around the world, sorghumproduction and consumption areon the rise but they are not growingas fast as the world population.Therefore, the supply (and calories)per capita is actually decreasing.
In Africa, sorghum is still largely asubsistence food crop, but as thispublication shows, it is increasinglybeing used by the food andbeverage industry in Nigeria.
Global Production of Sorghum
Sorghum is one of the few resilientcrops that can adapt well to futureclimate change conditions,particularly the increasing drought,soil salinity and high temperatures.
Nutritional Profile
Like other grains such as rice andmaize, sorghum containscarbohydrates, proteins, fats, fibre,ash and minerals. Its nutritionalvalue is good enough but notexceptional when compared withother locally available cereals thatare grown as staple foods inNigeria. Globally, over half of allsorghum produced is used forhuman consumption. Whenprocessed, the nutritional value ofsorghum is comparable to corn, soin some cases, it requiressupplementation with vitamin A.
THE GRAIN SORGHUM
Figure 1. Three-year moving average for sorghum area, production, yield; and
number of released varieties (3-year total) based on ICRISAT-bred material globally.
Sorghum is about 70% starch, soit is a good energy source. It alsocontains proteins. A World HealthOrganisation report suggests theinherent capacity of the existingsorghum varieties commonlyconsumed in poor countries was
Sorghum bicolor
not adequate to meet the growthrequirements of infants and youngchildren. The report also claimedsorghum alone may not be able tomeet the healthy maintenancerequirements in adults.
24ENHANCING THE SORGHUM VALUE CHAIN
THE GRAIN SORGHUM
Sorghum Cookies Sorghum Bread
Sorghum Ecological map
Table 1: Nutritional Information on Sorghum and Corn Source: ICRISAT
Nutritional InformationNutrient Per 100gm Serving Sorghum Corn Total Calories 339 365Calories from Fat 29.7 42.66Total Fat (g) 3.3 4.74Saturated Fat (g) 0.457 0.667
Protein (g) 11.3 9.42
Sorghum’s nutritional profile includesseveral minerals. It is a good sourceof B-complex vitamins. Somevarieties of sorghum contain â-carotene which can be converted tovitamin A by the human body; giventhe photosensitive nature ofcarotenes and variability due toenvironmental factors. Some fat-soluble vitamins, namely D, E and K,have also been found in sorghumgrain in detectable, but insufficient,quantities.
Uses of Sorghum
Sorghum is used in foods, such asporridge, bread, pastries, couscous,and beverages. In Nigeria, sorghumis mainly consumed as tuwo (localpaste) and local beverages. Aroundthe world, it is also used for theproduction of malt drinks, lagers,other beverages and confectioneriesas well as in the livestock feedsindustry. It can also be used as agluten-free replacement for wheat,but due to the lack of gluten,sorghum bread is generallyunleavened.
Today, breeding has resulted inbetter nutritional value of sorghumand better flavour. With thecollaboration of Nigerian Breweriesand research institutes, better breedsof sorghum are being developed andare expected to further enhance thecommercial viability of the cereal. Thetable above shows some basicnutritional information of sorghumcompared with corn.
25
Section 4 DEVELOPMENT OF THE NEW HYBRID SORGHUM
26ENHANCING THE SORGHUM VALUE CHAIN
Section 4
Overview of Our Venture
into the Development of
the New Hybrid Sorghum
N igerian Breweries’ initialsuccesses in 2006 with theselection of the open pollinatedvarieties - CSR-01 and CSR-02,with a farm yield of 2.0 to 2.5tonnes per hectare of land waswell received by farmers andother stakeholders. This wasbecause it came at a time whenthe annual national average was0.8 to 1.2 tonnes per hectare.With the goal to significantlyboost productivity from 2009, theCompany decided to shiftemphasis from variety seedidentification and selection tohybrid seed development. Ouraim then was to increaseproductivity up to 4 – 5 tonnes perhectare.
After meeting our initial projecttargets with CSR-01 and CSR-02,it soon became apparent that tomaintain a competitive sourcingstrategy, we must encouragesustainable agriculture by
making our preferred varietiesvery attractive to farmers throughhigher farm yields. We believedthat the sure way to achieve thatwas through Hybridization.
The decision to shift emphasis tohybrid seeds developmenttriggered a series of activities andmotivated a wide range ofcollaborations with relevantorganisations that resulted intothe development, certification,registration and release inDecember 2012 of two new hybridsorghum seeds, CSR-03H andCSR-04H. The new hybrids arehigh-yield seed varieties with thepotential for 4 metric tonnes perhectare of land.
The development of the newhybrid variety was initiated in 2006and lasted till 2012. Ideally, sucha major hybrid developmentprocess should last about 10years. The speed of thedevelopment was due to theCompany’s commitment andeffective collaboration among allimplementing partners as well asplanting both during the seasonand off-season through irrigation.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
“The decision to shift
emphasis to hybrid
seeds development
triggered a series of
activities and motivated
a wide range of
collaborations with
relevant organisations
that resulted into the
d e v e l o p m e n t ,
certification, registration
and release in
December 2012 of two
new hybrid sorghum
seeds, CSR-03H and
CSR-04H. The new
hybrids are high-yield
seed varieties with the
potential for 4 metric
tonnes per hectare of
land.”
27
In this section, we highlight the keyactivities including the evolution ofa governance structure, majorcomponents of the process,research and developmentactivities, involvement of criticalpartners, achievements andopportunities presented byintroduction of the new hybridsorghum, among others.
Key Activities Involved in
the Hybrid Development
Programme
The development of the hybridsorghum seeds involved extensiveand painstaking efforts as well asengagement of strategicimplementing partners and hugeinvestments on various farms testsand other activities. From the
assemblage of the parental linesof seeds, to series of testcrossings, field investigations, tomicro malting and brewingevaluations to determine thecharacteristics of any hybridseeds developed, a wide rangeof seed selection techniqueswere involved.
Besides, the seeds were testedfor agro-ecological adaptationwhich lasted one year andestablished that they wereacceptable to the Southern andNorthern Guinea agro-ecologicalzones. The process alsoinvolved selection and capacitybuilding of seed producingcompanies and the selection andtraining of out-growers. In
addition, the process includedthe production of foundation andcertified seeds as well as thenaming and registration of thehybrids, among others activities.
Specific Roles of Nigerian
Breweries
Nigerian Breweries’ roles on thedevelopment of the new hybridsorghum include but not limitedto the following:
Support the coordination ofsorghum hybrid activitieswith stakeholders;Train MARKETS II farmerson hybrid sorghumproduction;Coordinate reporting anddissemination of sorghumdevelopment activities;Support the attainment of50% buyback success forproduced CSR-01 andCSR-02 seeds and bringingonboard its existingsuppliers to be linked tofarmers;Make performance data orresult of interventionavailable to MARKETS IImanagement on a periodicalbasis;Provide funding whereneccessary.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
27
28ENHANCING THE SORGHUM VALUE CHAIN
GOVERNANCE STRUCTURE
Production M&E Reporting
SC
NB
NB + MARKETS II + IAR
Seed & Grain Compliance & Integrity Feedback & Alarms
Project Owner
Key: NB-Nigerian Breweries, SC-Steering Committee, M & E- Monitoring and Evaluation
Governance Structure
With the wide range of activitiesstated, as well as the number ofinstitutions involved asimplementing partners in thehybrid sorghum developmentprocess, there was the need toevolve an effective and efficientgovernance structure to ensurethe seamless achievement oftargets at specified periods. Thetwo diagrams on this page showthe major components within thegovernance structure thate n c o u r a g e s a s e a m l e s snetworking and effective controlof stakeholder groups andactivities within the sorghumvalue chain.
The Steering Committee
Nigerian Breweries is the projectowner and implementer of the
sorghum development programme.For effective governance, we set upa Steering Committee made up ofthe Company, USAID/MARKETS IIand the Institute of Agricultural
Research (IAR). The Committee ischaired by our Companyrepresentative. The three institutionsform the nucleus of the supply chainpartnership.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
Breeder Seed Foundation Seed Certified Seed Grains
NB
Steering Committee
NB + MARKET + IAR
29
Major Project Components
The development process for thehybrid sorghum entailed twomajor project components whichare the research anddevelopment angle, and thecommercialization aspect.Research and developmentaspect involved sourcing ofparental lines from InternationalCrop Research Institute for theSemi Arid Tropics (ICRISAT) and
Process Overview
carrying out of various tests bythe Institute of AgriculturalResearch (IAR). Tests carried outincluded test crossing, test crossevaluations, which involved fieldand laboratory evaluations; seedselection techniques using on-farm seed testing; and seedregistration and release.
The commercialization aspectentailed the growing andproduction of breeder seeds,
foundation seeds and certifiedseeds. The certified seeds werethen given to small and largescale farmers for production oflarge quantities of grains that areavailable for the open market aswell as buy-back. The diagrambelow, process overview, showsthe two major componentsinvolved in the hybrid sorghumdevelopment process.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
30ENHANCING THE SORGHUM VALUE CHAIN
Certification by NACGRAB
The process of establishing anacceptable hybrid seed is a longand rigorous one. The NationalCentre for Genetic Resourcesand Biotechnology (NACGRAB),the statutory governmentinstitution for the certification andrelease of seeds for national use,was involved in cross-checkingall the hybrids before finalcertification. On 7th December2012, following the satisfaction ofall necessary conditions,NACGRAB certified CSR-03Hand CSR-04H hybrid varietiesdeveloped by Nigerian Breweriesand released them for nationaluse.
The New Hybrid Sorghum:
A Milestone
The development of the two newhigh-yield seed varieties - CSR-03H and CSR-04H, with theconsequent certification, releaseand registration, was a milestoneachieved by the Company. It isbound to change Nigeria’sagricultural landscape for thebetter. It is estimated thatcurrently, about 8.5 mill ionhectares of land are cultivatedwith sorghum (using farmervarieties and four improved OPVs- open-pollinated varieties) withyields ranging from 0.8 metric
DEVELOPMENT OF THE NEW HYBRID SORGHUM
Sorghum seed varieties
CSR - 03H CSR - 04H
31
DEVELOPMENT OF THE NEW HYBRID SORGHUM
tonnes per hectare to 1.7 metrictonnes per hectare on theaverage.
The use of new hybrids will,however, significantly change thescenario by moving the nation upfrom the low yield plateau,increase sorghum grain yieldoutput to about 4.0 metric tonnesper hectare as well as increase theuse of high agro-inputs (fertilizerand chemicals), mechanization,supplementary irrigation, andimproved commercial crophusbandry/field management.Furthermore, it will improve qualityand productivity and makesorghum production more attractiveand profitable for local farmers,motivate youth employment andpoverty alleviation, among otherbenefits. It would thus lead to a morerobust sorghum value chain for thecountry.
Investing in the New Hybrid
Sorghum Development
Huge investments by NigerianBreweries in research anddevelopment and ancillaryservices to establish high-yieldvarieties of sorghum are graduallypaying off with good results andgreat benefits for all stakeholders.Information available indicatesthat a sorghum hybrid of farmyield of 5 tonnes/hectare was
developed in the 1970s but theparent stock has been lost.However, with investments intoresearch efforts by our Companyas well as collaboration with theresearch institutes and otherpartners, the new hybridsorghum varieties has been aworthwhile investment.
It is our firm belief that continuedresearch will facilitate theestablishment of commercialsorghum farming techniques,similar to those for maize andwheat, which can produceharvests up to four times thetraditional methods. NigerianBreweries with the active supportof MARKETS II and other partnersis committed to considerable
replacement of imported grainswith sorghum to meet industrialdemand estimated at 200,000metric tonnes per annum.Increasing food security andcompetitiveness of Nigeriansorghum stil l requires theattraction of investible funds forimprovements in technology, on-farm practices, and supply chainlinkages.
On the two open-pollinatedvarieties (OPVs), we promisedfarmers that the yield will increasefrom below 1tonne per hectare to2 tonnes per hectare. Today, it isyielding about 2.5 tonnes perhectare. We engaged anorganisation to undertake ani m p a c t a s s e s s m e n t b y
A staff checking sorghum during germination
32ENHANCING THE SORGHUM VALUE CHAIN
DEVELOPMENT OF THE NEW HYBRID SORGHUM
Growers prepare to plant the new high yield sorghum seeds
with the capacity to quadruple farmers’ throughput.
determining the spread of theusage, which is to confirm the actualnumber of farmers growing thecrop. We know that there are about20,000 farmers under USAID/MARKETS II database. We alsoknow that a lot more than these aregrowing our varieties, CSR-01 &CSR-02, due to the higher yield anddemand for the grains owing tobetter quality. We anticipate thatfollowing the development of thenew hybrid seeds, a large numberof farmers will switch to the newhybrids when the commercializationprocess is established.
Commercial Aspects of the
Hybrid Development
The commercial aspects of thehybrid sorghum developmentinvolve the deployment of threemajor approaches:
Large scale (contract farming)
Medium scale (out-growersscheme)
Small scale (smallholderfarmers)
It is desirable that in four years, asignificant commercial distributionof the hybrid sorghum seeds will beachieved. We anticipate that manycurrent farmers growing CSR-01and CSR-02 will convert to thegrowing of the hybrid seeds. Aerial view of Aba Malting Plant
33
DEVELOPMENT OF THE NEW HYBRID SORGHUM
A tender sorghum pannicle
Commercialization
Buy-Back
Contract FarmingOut-grower
Scheme Open Market
Legal Contracts
Direct Supply to NB USAID / MARKETS II VMI Model
Strategy
Commercialization Process Design
Commercial strategy for
the New Hybrids
The development of CSR-03Hand CSR-04H is only astepping stone for our futureresearch and developmente f f o r t s a n d f o r t h eadvancement of the sorghumvalue chain in Nigeria. Ourambition is to identify varietiesthat will give farm yields up to5.0 – 7.0 tonnes per hectare inthe future.
The intervention by ourCompany in response toinward integration policy of thegovernment in the use of localraw materials in manufacturingis changing the face ofagriculture in Nigeria, byintroducing commercial,mechanized sorghumcultivation using hybrids.
In 2013, the seeds werereleased to farmers but due tothe need to ensure the purityof grains given to farmers forcommercial production,distribution was suspendeduntil the appointment ofcompanies to be engaged intesting the purity of the seeds.Our Company expects that by2016, we will reach 25,000 out-growers to specifically growthe CSR-03H and CSR-04Hhybrids.
Key: NB-Nigerian Breweries, USAID-United States Agency for International Development,
MARKETS-Maximizing Agricultural Revenues and Key Enterprises in Targeted Sites,
VMI-Vendor Managed Inventory
34ENHANCING THE SORGHUM VALUE CHAIN
DEVELOPMENT OF THE NEW HYBRID SORGHUM
The Roles of Partners
Our Company’s successes in thedevelopment of the new hybridsorghum seed varieties weremade possible through theengagement of various strategicimplementing partners. Theresults of the collaborative effortsof our Company with thesepartners have created a model fora private sector-led initiative in theagricultural sector in Nigeria.Some of the key roles played byour partners are highlighted inthis section.
USAID/MARKETS II
USAID is playing a major role byaiding various developmentalintervent ions in dedicatedprogrammes for sorghumproduction. Various bodieshandle each dedicatedprogramme under the Agency.MARKETS is the arm that ishandling USAID’s agriculturaldevelopments effort on sorghumin Nigeria.
USAID/MARKETS have twoproject teams: MARKETS I andMARKETS II. MARKETS I projectteam worked with NigerianBreweries from 2003 - 2006 todevelop the CSR- 01 & CSR-02sorghum hybrids with improvedyield and better maltingcharacteristics in place of farmerlocal varieties. MARKETS Iproject finished and closed, whileMARKETS II started with us onthe development of the newhybrids, CSR-03H & CSR-04H, in2006. The project team willconclude its work in June 2017.
MARKETS II collaborates withNigerian Breweries on the newhybrid project in threedimensions:
As a member of the steeringcommittee, they are involvedin the evaluation andmonitoring of all hybridactivities.
Deal more with issuesregarding development ofout- growers scheme.
They developed: 20,000farmers in their farmers’scheme. Part of the functionsof MARKETS II is to retrain thefarmers who were used toproduction using the open-ended variety, on thecropping techniques for thenew hybrid
They manage the buy-backprocess, which had quite afew challenges in the past.
On the development of the newhybrid sorghum, USAID/MARKETS II developed theprotocols for establishingdemonstration plots and on-farmtests for the two hybrids acrossthe three major agro-ecologicalzones for sorghum production inNigeria. The agency alsodeveloped protocols formonitoring & evaluation as well as
“Our Company’s successes
in the development of the
new hybrid sorghum seed
varieties were made
possible through the
engagement of various
strategic implementing
partners. The results of
the collaborative efforts of
our Company with these
partners have created a
model for a private sector-
led initiative in the
agricultural sector in
Nigeria.”
35
DEVELOPMENT OF THE NEW HYBRID SORGHUM
growers schemes to achieve25,000 farmers by 2017Work to attain 50% buy-backsuccess for produced CSR-01and CSR-02 seeds throughtimely market price surveysand coordination betweenproducers and buyerProvide access for NigerianBreweries to the MARKETS IIsenior management, who canmake decisions on how to moveforward with programmes andactivities for the mutualbenefit to both participantsMake performance data orresult of intervention availableto the Nigerian Breweriesmanagement on a periodicalbasis.
Aliyu Samaila, Director Agricultural
Production, USAID/MARKETS II
verification and validation ofyields. In addition, it reviewed out-grower scheme & buy-backprocess as well as set up a HybridRelease Committee in conjunctionwith NASD and MA&RD.MARKETS II also organised fieldvisits at planting for observation,data collection and documentaryin conjunction with IFDC andHybrid Release Committee. Theorganisation was also involved inthe harvest, hybrid release, seedrecovery, data analysis &inferencing in conjunction withothers relevant partners.
The major roles of MARKETS II areas follows:
Provide resource persons,trainers, training materials,training venues in consultationwith Nigerian BreweriesCoordinate sorghum hybridactivities with sorghumstakeholdersCollate, analyse and reporthybrid sorghum agronomicdata in partnership with IAR orengaged consultants (NigerianBreweries will provide financialresources to USAID foractivities relating to this)Train farmers on mechanizationand commercialization insorghum developmentManage the CSR-01 and CSR-02 and hybrid sorghum out-
“ MARKETS I partnered with
Nigerian Breweries on the
development of open-
pollinated sorghum varieties,
CSR-01 and CSR-02. These
varieties doubled the yield
farmers used to get with
traditional varieties.
MARKETS II is, therefore,
happy to partner with the
company on hybrid
sorghum development.
Sorghum is an important
crop for human nutrition and
forms a significant part of
menus in the West
African sub- region. The
development of these
hybrids with yield potentials
of up to 4 metric tonnes per
hectare means more food
for the teeming population
and more income for small-
holder farmers.”
Aliyu Samaila, Director Agricultural
Production, USAID/MARKETS II
35
36ENHANCING THE SORGHUM VALUE CHAIN
DEVELOPMENT OF THE NEW HYBRID SORGHUM
Different sorghum varieties
The Institute for AgriculturalResearch (IAR), an arm of theAhmadu Bello University, isplaying a major role in thedevelopment and commercialproduction of sorghum in Nigeria.The Institute is charged with thenational mandate by thegovernment to develop andimprove sorghum varieties for the
“Nigerian Breweries has taken the right direction by
supporting research. It is commendable that the Company
has taken good steps to encourage the commercial
production of sorghum in Nigeria.”
Prof. Dan Aba, Programme Leader, Cereals
Research, IAR / Head of sorghum unit
ENHANCING THE SORGHUM VALUE CHAIN
36
37
DEVELOPMENT OF THE NEW HYBRID SORGHUM
different ecological zones. IARwas extensively engaged in thedevelopment of the new hybridsorghum varieties and createsawareness about them bydemonstration among farmers.
IAR was involved in theproduction of breeder seeds andproduced the needed foundationseeds in conjunction with PremierSeeds Company Limited. It wasalso involved in HybridMaintenance, Evaluation andSelection of new entries for boldergrains. In addition, IARparticipated in the production ofcertified seeds in conjunction withPremier Seeds Nigeria Limited.
ICRISAT
T h e I n t e r n a t i o n a l C r o p sResearch Institute for the Semi-Arid-Tropics (ICRISAT) is a non-profit agricultural researchorganisation. ICRISAT adoptsIntegrated genetic and naturalresources management as itsoverarching research strategy.The aim is to combine testedmethods of crop commodityresearch with well establishedpractices in research in naturalresources management. Theoriginal goal was to use cropimprovement research as the
Another variety of sorghum seeds
basis to improve food availabilityin drought-prone areas of thetropics. The ICRISAT Genebankserves as a repository for thecollection of germplasm of thefive mandate crops – five mandatecrops: sorghum, pearl millet chickpea,pigeonpea and groundnut; andsix small millets. The instituteprovided the parental lines used inthe development of the new hybridsorghum.
The National Agricultural
Seed Council (NASC)
The Council is involved in thedevelopment of seed varieties,which is a highly specialized andtime-consuming exercise thatrequires professionalism, patienceand great care. The Councilparticipated in conjunction withMARKETS II in the setting up of aHybrid Release Committee tocoord ina te the ac t i v i t i es ,communication and documentationthat led to the successful namingand release of the hybrid seeds.
Premier Seeds NigeriaLimited
In conjunction with IAR, PremierSeeds Nigeria Limited wasinvolved in the production ofcertified seeds.
Sorghum seed varieties
“Alliance for Green
Revolution in Africa (AGRA)
aims to develop one or more
hybrid sorghum varieties
which are high yielding and
can be used for both food
provision and as raw material
for agro-processors.”
Prof. O. B. Obilana, Consultant Sorghum
Breeder
38ENHANCING THE SORGHUM VALUE CHAIN
Partnership with Government
Nigerian Breweries is working outsome arrangement with theFederal Ministry of Agricultureand Rural Development (FMA&RD) to facilitate informationexchange to accelerate theadoption and application of theresearch findings supported bythe Company for the overalldevelopment of sorghum inNigeria. The government wasstudying a memorandum ofunderstanding in this regard asat the time of the publication ofthis brochure. Prof. O. B. Obilana, Consultant
Sorghum Breeder
“After meeting our initialproject targets, it becameapparent that to maintain acompetitive sourcingstrategy, we had to embarkon sustainable agricultureby making our preferredvarieties very attractive tofarmers through higherfarm yields of up to 4tonnes per hectare.”
Mr. Uzodinma Onuoha, Raw Materials
Development Manager
“The use of hybrids will
significantly change the
scenario by moving us up
from the low yield plateau,
increase sorghum grain
yield output to about 4.0
metric tonnes per hectare,
increase use of high agro-
inputs (fertilizer and
chemicals), mechanization,
supplementary irrigation,
and improve commercial
crop husbandry and field
management.”
DEVELOPMENT OF THE NEW HYBRID SORGHUM
39
Testimonial from Springfield
Agro Limited Our collaboration with NigerianBreweries since over 4 years nowas a supplier was strengthenedwith linkage to realizing thepotential of hybrid sorghum. Thehybrids first of its kind in Nigeria,have an enormous potentialbenefiting all the stakeholdersacross the value chain, right fromsorghum farmers at the bottom to
end users, be it processing firmsor grain - using end consumers.
Our collaboration has successfullyshown the performance levels ofhybrid sorghum CSR-03H andCSR-04H, and that it yieldsmultifold over existing varieties inNigeria. Nigerian Breweries hasbeen fully with us as part of thiscollaboration and linking us withresearch institutes for carrying outthe demonstrations, seedmultiplication and commercialcultivation. This collaboration is thebeginning for sorghum revolutionin Nigeria, improving the incomelevels of sorghum farmingcommunities predominantly inthe ar id zones of N iger ia ,thereby strengthening variousassociated sectors.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
“This collaboration is thebeginning for sorghumrevolution in Nigeria,improving the incomelevels of sorghum farmingc o m m u n i t i e spredominantly in the aridzones of Nigeria , therebyst rengthening var iousassociated sectors.”
- Rakesh Rawat, Managing Director,Springfield Agro Limited
40ENHANCING THE SORGHUM VALUE CHAIN
Til l now, farmers cultivatingsorghum in Nigeria have beenfacing various challengesculminating in low yields andhence low income levels. Now,with introduction of Hybridsorghum, there is enormouspotential to alleviate suchchallenges faced by sorghumfarmers, meeting raw materialneeds of various associatedsectors. In short, few years tocome CSR-03H & CSR-04Hwould have paved the way forNigeria to become a world leaderin sorghum production in termsof total quantum of production aswell as productivity/unit area!
In stride to improve livelihood offarming communities, SpringfieldAgro Limited, a subsidiary ofKewalram Chanrai Group, gotinto alliance with the brewinggiant, Nigerian Breweries Plc, todevelop hybrid sorghum with ayield two times more over localvarieties with technicalassistance from agriculturalresearch institutions. SpringfieldAgro carried intensive field trialsof the two hybrids, CSR-03H &CSR-04H, in different locations inNorthern Nigeria and the yieldacknowledged from these trailsconfirmed higher productivityand better disease resistance
trait. In order to commercializethe hybrid, Springfield Agro anda few progressive farmers didsorghum cultivation of CSR-03H& CSR-04H over 500 hectares ofland to reconfirm productivity of3 - 4 metric tonnes per hectare..A n i n t e n s i v e e x t e n s i o nprogramme laid down byNigerian Breweries andSpringfield Agro Limited, topopularize the hybrids in farmingcommunities, showed that theywere well accepted and preferredby farmers.
DEVELOPMENT OF THE NEW HYBRID SORGHUM
41
Section 5 THE NIGERIAN RAW SORGHUM MARKET
42ENHANCING THE SORGHUM VALUE CHAIN
Section 5 THE NIGERIAN RAW SORGHUM MARKET
Engaging Smallholder Farmers
The effective engagement ofsorghum farmers is critical forNigerian Breweries to maintain asustainable framework for hybridsorghum development and supply.The sorghum farmers are many innumber and operate largely on asmall scale basis and as microfarming enterprises.
To facilitate their engagement andproper management, we havegrouped these farmers in clustersunder the supervision of RegionalProduction Coordinators (RPCs),also known as nucleus farmers. TheRPCs manage the small groups inthe clusters and facilitate the buy-back of grains from the farmers andthe supply of purchased grains tomaltsters.
The management of these microenterprise farmers through RegionalProduction Coordinators has
A view of sorghum farms
43
THE NIGERIAN RAW SORGHUM MARKET
enabled the Company to promotebonding among them so that theycan share experiences. It alsooffers them opportunities to reaphigher returns from their farmyields. Nigerian Breweries isactively engaging these smallscale farmers and micro farmingenterprises in our hybrid sorghumdevelopment programme becausewe believe they are the engine ofgrowth and economic advancementfor a developing economy likeNigeria. The empowerment of thesefarmers in the sorghum supply chainis stimulating economic growth andpoverty alleviation in Nigeria whichis one of the MillenniumDevelopment Goals of thecountry.
The demand by our Company forgood quality sorghum with goodmalting and brewingcharacteristics, as well as theneed for the grain by otherindustrial users, have stimulatedresearch into the production ofimproved quality grains that offerhigher farm yields. The use of localseeds by local farmers yields lessthan I metric tonne per hectare ofland. However, the introduction ofthe open pollinated varieties,CSR-01 and CSR-02, by ourCompany has improved farm yieldup to 2.0 - 2.5 metric tonnes perhectare. With the new hybrids,CSR-03H and CSR-04H, farmers
will enjoy yields up to 4 metrictonnes per hectare. Thisimproved variety, therefore,enhances productivity and willenable local farmers to increasesupply and derive much morebenefits from their efforts.
Protecting Interest of
Farmers
USAID/MARKETS II has 20,000farmers in its database while thefood, agro and allied industriesthat also use sorghum for theiroperations have additional 5,000farmers. The 25,000 farmers arethose documented. It isestimated that about 10 times thisnumber of farmers grow CSR-01and CSR-02 varieties as they areopen pollinated, i.e. the farmerscan replant the grains as seeds
unlike the hybrids which requirenew seed collection eachplanting year.
The introduction of the hybrid byNigerian Breweries is in line withNigeria’s plan to realize itsambition to make agriculture abig business and build a propervalue chain where all players addvalue and share benefits. It willalso help to provide some controlin the system. Thus IAR will makemoney by adding value throughthe provision of breeder seeds toPremier Seeds to producefoundation seeds. Thereafter,other seed multiplicationcompanies will produce seeds, thefarmers will grow the crop and theCompany will buy from them. Theplayers will generate incomebased on their contributions and
43
44ENHANCING THE SORGHUM VALUE CHAIN
depth of specializations in the valuechain. Our role in this developmentis to spread the income base, whileUSAID/MARKETS II is to ensure thatfarmers who labour for results arenot short-changed in the value chainbecause there are middlemen whotake advantage of local farmers.
Under the buy-back scheme, wepromise to pay market price plus10% premium to the farmer, and thisis guaranteed. A village grainscollector, however, who is not afarmer but has the financial musclewhich enables him to providebridging finance to settle poorfarmers’ domestic needs, can offerthem money in advance of theirgrains harvest. This reduces theamount available for buy-back andthe revenue accruable to the farmers.An effective communication withfarmers and a proper working of thebuy-back system can stem theactivities of middlemen.
Providing Technical Assistance
to Farmers
USAID/MARKETS II in collaborationwith Nigerian Breweries providestechnical assistance to thesefarmers through the adoption ofgood farming skills and improvedpractices. This way, the schemeprovides training and on-farmdemonstrations, facilitates thefarmers’ access to credits frombanks, and farm input materials
“Through interventions via the sorghumsupply programme, these localfarmers’ household incomes havecontinued to improve and so is theirstandard of living.”
A tractor used for tilling
A sorghum farming equipment
THE NIGERIAN RAW SORGHUM MARKET
45
such as fertilizer and mechanisedequipment supplies. Throughinterventions via the sorghumsupply programme, thehousehold incomes of these localfarmers have continued toimprove and so is their standardof l iving. A recent Socio-Economic Impact Assessment ofNigerian Breweries shows thatthe Company creates about49,900 jobs within the agriculturalsector of the economy through itsoverall involvement in thesorghum programme andprocurement.
For the new hybrids, USAID/MARKETS II will play a key role inthe training of out-growers,provision of access to creditinstitutions and coordination ofthe buy-back process betweenthe RPCs and the maltstersduring the commercialization ofthe process.
Multiplier Effect of Sorghum
Supply
Nigerian Breweries hassucceeded in generating amultiplier effect on the sorghumsupply chain, which has beenaided by our sustainabilityagenda, Brewing a Better Future(BaBF). One of the focus areasof BaBF is local sourcing of rawmaterials which is driving the
enhancement of the sorghumvalue chain. It has also generatedincreased demand for rawsorghum and stimulated theinterest of farmers to plant moreof the grain with the support theCompany is providing.
The current national demand ofsorghum in Nigeria is estimatedat 6.5 mill ion metric tonnesannually. The 2014 requirementof the grain by industry alone inNigeria is estimated at 200,000metric tonnes. The combineddemand for raw sorghum andmalted sorghum is increasing.
“The current nationaldemand of sorghum inNigeria is estimated at6.5 million metric tonnesannual ly. The 2014requirement of the grainby industry a lone inNigeria is estimated at200,000 metric tonnes.”
Output of Top Sorghum Producing Countries in metric tonnes (most cuurent figures).
Food and Agricultural Organisation of the United Nations (FAOSTAT) 2012.
This provides a guarantee ofsteady demand and morebusiness opportunities forsorghum farmers and maltedsorghum producers.
THE NIGERIAN RAW SORGHUM MARKET
46ENHANCING THE SORGHUM VALUE CHAIN
Producing and Supplying
Raw Sorghum
Sorghum is a crop that grows inarid conditions of little rainfall.Before the intervention ofNigerian Breweries with thecommercial growing of the grainand the hybrid sorghumdevelopment programmethrough research, local farmingpractices did not use modernfarming methods and inputs likefertilizer. The engagement of ourmajor partners has helped inincreasing sorghum growing andfarm yields through farmers’clusters.
Under the new scheme, NigerianBreweries has assisted farmers to
cultivate an estimated 26,000hectares and 28,000 hectares offarmland in 2013 and 2014planting seasons, respectively.The cultivated land area isexpected to increase to 30,000hectares in 2015.
In 2012, Nigeria producedapproximately 6.9 million metrictonnes of sorghum; 80% of whichis consumed for food while 20%is for cross-border trade andindustrial use. Nigerian Breweriesannual demand of sorghum isapproximately 100,000 metrictonnes per annum. It is estimatedthat the consumption by themajor industrial users ofsorghum in Nigeria is 200,000metric tonnes per annum.
Nigerian Breweries is the singleindustrial biggest consumer ofthe grain.
Nigerian Breweries is encouragingthe large scale farmers to usemechanization. They are beingtrained through USAID/MARKETS II on the use ofmechanised farming to increasetheir output. The government isinfluencing developments inagricultural production, throughpolicy formulation and directintervention in farm activities. It issubsidizing the cost of fertilizerand mechanised equipmentpurchase for farmers, and ispaying special attention to certaincrops. Nigerian Breweries liaiseswith government agencies to
“Under the new scheme,
Nigerian Breweries has
assisted farmers to cultivate
an estimated 26,000
hectares and 28,000
hectares of farmland in 2013
and 2014 planting seasons,
respectively. The cultivated
land area is expected to
increase to 30,000 hectares
in 2015.”
Raw sorghum truck before off-loading
THE NIGERIAN RAW SORGHUM MARKET
47
know the policies that would beimplemented in the agricultural
Map of sorghum markets
“For us at Standard Grains
Nigeria Limited, our work
is to source, buy, clean,
store and sell sorghum to
interested bulk buyers. We
regard sorghum as
the ideal alternative raw
material for the beverage
and food industry in
Nigeria and Africa. We
have been in the sorghum
business for a long time
and we are pleased with
our supplies to Nigerian
Breweries Plc.”
Prince Aminu S. Usman, Managing Director,
Standard Grains Nigeria Limited, Kaduna.
Test imonia l from a Suppl ie r
THE NIGERIAN RAW SORGHUM MARKET
48ENHANCING THE SORGHUM VALUE CHAIN
“The buying of the
desired quantities
of sorghum which
Nigerian Breweries
needs, at the right
quality, at the right
price, and the right
time, and the
logistics of timely
supply, requires
careful planning
and execution.”
A sorghum market
sector and how the Company canleverage on them.
Sourcing Grain for the
Company
The buying of the desiredquantities of sorghum whichNigerian Breweries needs, at theright quality, at the right price, andthe right time, and the logistics oftimely supply, requires carefulplanning and execution. TheCompany’s Raw MaterialsDevelopment Manager, Mr.Uzodinma Onuoha, coordinatesthis function.
THE NIGERIAN RAW SORGHUM MARKET
49
Section 6 MALTED SORGHUM
50ENHANCING THE SORGHUM VALUE CHAIN
Section 6 MALTED SORGHUM
A Researcher at work
Promoting the Use of
Malted Sorghum
The inclusion of sorghum insome product recipes by thebeverage industry, which wasmotivated by Nigerian Breweries,as well as its increasedconsumption by some other foodmanufacturers, necessitated theestablishment of sorghummalting plants in Nigeria. Themajor users of malted sorghumare companies in the food andbeverage industry.
To ensure sustainable supplies ofmalted sorghum, our Companydemonstrated its genuinecommitment to the sorghumsupply chain development whenit identified and encouragedprospective investors to establishsorghum malting plants. Today,through the active involvement ofNigerian Breweries, there are thirdparty sorghum malting plants withtotal installed capacity of about74,000 metric tonnes of maltedsorghum per annum that supplyus malted sorghum.
Nigeria currently boasts of locallyavailable installed capacity of over111,000 metric tonnes per annum.With the commercialization of thenew hybrid sorghum with potentialfor higher productivity andproduction of grains with bettermalting characteristics, futuresupplies of good quality sorghumto support the malted sorghummarket is guaranteed.
Besides providing the Companywith malted sorghum, AbaMalting Plant was alsoestablished to pioneer researchand development of sorghummalting.
A sample of malted sorghum
51
MALTED SORGHUM
Our Support to Sustainable
Supply of Malted Sorghum
We pioneered the local malting ofsorghum by going into partnershipwith a local investor, which resultedin the establishment of Africa’slargest sorghum malting plant, theAba Malting Plant. Today, we ownand operate two malting plants inAba and Kaduna with a combinedcapacity of 37,000 metric tonnesper annum.
To date, through the Aba andKaduna malting plants, NigerianBreweries is leading the pack andhas recorded a milestone as thelargest producer of maltedsorghum in Africa and haschanged the face of sorghummalting and usage in Nigeria andthe African continent.
Aba Malting Plant
Nigerian Breweries encouragedthe Universal Malting Plant toes tab l i sh an u l t ra -modernsorghum malting plant in Aba. Theinvestment was promoted by ourCompany and we also went intopartnership with Universal MaltingPlant and guaranteed a readymarket for their products at acompetitive price. The 30,000metric tonnes per annum capacityplant started production in May2008.
A section of Aba Malting Plant
Sorghum seeds undergoing a sieving
process
Laboratory analyst at work
52ENHANCING THE SORGHUM VALUE CHAIN
A view of Aba Malting Plant
Nigerian Breweries acquired theplant in February 2009. It hasgood malting process controland produces high quality maltedsorghum. It is based on best-in-class technology, and is providedwith an auto process control –flexible “Recipe” programmingsystem.
In 2013, in order to furtherimprove the quality of malting,the Company installed new sprayrings in the germination kilningvessels (GKV). The Companyalso installed a polisher to cleanthe sorghum thoroughly before
storage. There is plan to increase capacity to 60,000 metric tonnesin future.
Germination-Kilning Vessel in operation at Aba Malting Plant
MALTED SORGHUM
53
Kudenda Malting Plant
Following the acquisitionand merging of SonaSystems to our Companyin 2011, we inherited asecond sorghum maltingplant in Kudenda, Kadunastate, with a capacity of7 , 0 0 0 m e t r i c t o n n e sper annum. This hasstrengthened our capacityto produce the right qualitymalted sorghum for someof our beverages.
A section of Kudenda Malting Plant, Kaduna
Steep House in Aba Malting Plant
“Following the acquisition
and merging of Sona
Systems to our Company
in 2011, we inherited a
second sorghum malting
plant in Kudenda, Kaduna
state, with a capacity of
7,000 metric tonnes per
annum.”
MALTED SORGHUM
54ENHANCING THE SORGHUM VALUE CHAIN
Sorghum specieRaw sorghum storage silos
Third Party Malting Plants
There are various third partymalting plants operating in Nigeria.Four of them with a combinedinstalled capacity of 74,000 metrictonnes supply malted sorghum toNigerian Breweries. Derivatives
Industries Limited tops the list with30,000 metric tonnes per annum;Food Agro and Allied ProductsLimited has installed capacity for20,000 metric tonnes; LifecareIndustries Limited produces15,000 metric tonnes; and TaibodVentures Limited, 9,000 metric
tonnes per annum. NigerianBreweries remains their mainbuyer. Our Company providedtechnical and technologicalsupport as well as guaranteed aready market for our maltedsorghum suppliers and we offercompetitive prices.
MALTED SORGHUM
55
Section 7 FUTURE OUTLOOK ON SORGHUM
56ENHANCING THE SORGHUM VALUE CHAIN
Section 7 FUTURE OUTLOOK ON SORGHUM
A New Road Map for
Nigeria’s Agricultural Sector
It is estimated that Nigeria’sagricultural sector providesemployment to about 70 per centof the nation’s active labour forceand plays a prominent role in thesocio-economic development ofthe country through the provisionof staple foods for most of thenation’s population. Besides, thesector contributes about 40 percent to the country’s GrossDomestic Product (GDP). Expertsbelieve that despite the hugepotential of the sector, it hasremained largely untapped, thusundermining the nation’s efforts atproviding gainful employmentopportunities for its teemingyouths and achieving self-sufficiency in food production. Inresponse, the FederalGovernment of Nigeria throughthe Agricultural TransformationAction Plan (ATAP) is workingtowards a remarkable revolution ofthe nation’s agricultural sector.
The Minister of Agriculture andRural Development, Dr. AkinwumiAdesina, has noted that atransformation of the nation’sagricultural sector had becomeimperative, and assured that withPresident Goodluck Jonathan’stransformation agenda, theagricultural sector would beturned around to ensure therealisation of the potential valueof N40 trillion. He promised thatthe ATAP would ensure adiversification of the agriculturalsector to attain a significantincrease of about 20 milliontonnes in the production of keystaple foods.
Dr. Akinwumi Adesina, the Minister of
Agriculture and Rural Development
57
The effort of Nigerian Breweriestowards the commercialproduction of hybrid sorghum is,therefore, very much in line withthe efforts of the FederalGovernment. With continuedefforts and investments into thecereal, we anticipate that itsproduction will achieve a strongfoothold in Nigeria andcontribute significantly inmeeting the governmentstransformation agenda for theagricultural sector. All these willsupport the achievements of thefine points of some of the goalsof our Brewing a Better Future.
Guaranteed Demand
In the long-term, our companyplans to retain sorghum as part
FUTURE OUTLOOK ON SORGHUM
On 5th September 2013, Dr. NgoziOkonjo-Iweala, Finance Ministerand Coordinating Minister for theEconomy, unfolded the newroadmap for the agriculturalsector. She noted that theimplementation of the AgriculturalTransformation Action Plan(ATAP) would inject an estimatedN300 billion additional incomeinto the hands of Nigerian farmersand another N350 billion into theeconomy through rice sufficiency.She expressed optimism thatATAP would create about three-and-half mill ion jobs in theagricultural sector in the next fouryears through a massive focus onthe production of five major cropsin which Nigeria has a comparativeadvantage. These include rice,cassava, sorghum, cocoa andcotton.
“Agricultural Transformation
Action Plan is aimed at
revolutionizing agriculture
so that it could be seen as a
business with emphasis on
partnership, investment and
accountability and not just
as a passive development
issue.”
Dr. Ngozi Okonjo-Iweala, FinanceMinister and Coordinating Minister for
the Economy
of our products recipe for someof our brands. To achieve this, wewill continue to support thedevelopment of high qualityvarieties with excellent maltingand brewing characteristics.Given the expected rise inpopulation and consequentincrease in the consumption ofour brands, our demand for bothraw and malted sorghum will besustained. This will, therefore,translate into the expansion ofbusiness opportunitiesthroughout the sorghum valuechain and will impact farmers,suppliers, regional productioncoordinators, seed companies,fertilizer supplying companies,transporters, financial institutions,maltsters and others.
Development of Improved
High-Yield Hybrids
Latching upon the successesal ready recorded wi th theCSR-03H and CSR-04H newhybr ids, our Company wi l lcontinue to invest in researchand development efforts incollaboration with researchinst i tu t ions and otherstakeholders in our quest toestablish higher-yield hybridsorghum seeds.
58ENHANCING THE SORGHUM VALUE CHAIN
Commercialization of the
New Hybrid
Our future outlook is thecommercialization of the newhybrid sorghum and to ensurethat it is abundantly available forfarmers. We will consolidate onincreasing output through thecommercialization of the newhybrid by encouraging manyfarmers to grow the hybrid seeds.This will further reinforce ourfoothold in continuing to enhancethe sorghum value chain.Through collaborations with otherstakeholders, we will supportfarmers to get more value fromtheir efforts as well as encouragethe government to give greaterattention to sorghum as one of the
major crops grown in Nigeria.
Export Opportunities
There are observations that partof the sorghum currently grownin Nigeria is sold through cross-border trade within some WestAfrican countries. We anticipatethat going forward, with theAgricultural Transformation ActionPlan of the government as well asa streamlined and advancedsorghum value chain, local outputof the grain will far exceed nationaldemand. This would createopportunities for export into
“With our Company’s continuing attention on sorghum
and the anticipated encouragement from the Federal
Government, which has identified sorghum as the third
most important crop that requires focus, we expect the
grain to attract more interest from farmers and other
stakeholders in the future.”
nations in demand of sorghumwithin the West African sub-region and beyond.
Improved Food Security
and the Local Economy
With our Company’s continuingattention on sorghum and theanticipated encouragement fromthe Federal Government, whichhas identified sorghum as thethird most important crop thatrequires focus, we expect the
grain to attract more interest fromfarmers and other stakeholders inthe future. This will be expectedto stimulate local output ofsorghum and help to ensure foodsecurity. Besides, it will improvethe economies of local farmercommunities, engage moreunemployed youths, help inpoverty alleviation and sustainthe sorghum malting sub-sectorof the food and beverageindustry.
FUTURE OUTLOOK ON SORGHUM
59
Section 8 BENEFITS, CHALLENGES AND OPPORTUNITIES
60ENHANCING THE SORGHUM VALUE CHAIN
Section 8
Benefits
Nigerian Breweries’ sorghumdevelopment programme isproviding jobs for thousands offarmers and other stakeholders. Itis facilitating the building of criticallinkages with research institutesand sorghum related producers aswell as malting plants. It is turningout improved hybrids that yieldmuch better harvest per acre ofland, meeting local demand for thecrop as well as conserving foreignexchange for Nigeria.
This programme is helping to buildexpertise on research into sorghumdevelopment and use. It is fosteringthe setting up of feeder industriessuch as seed multiplicationcompanies, and malting plants;reducing dependence on importedraw materials; and increasing thecontribution of the brewing industryto the development of the Nigerianeconomy.
Other benefits are listedbelow:
Promoting the businesssustainability of NigerianBreweriesContributing to nationalfood security andexpanding the socialinvestment of NigerianBreweries throughfarmer empowermentProviding a guaranteedmarket for farmers andincreased income fromhigher productivity
Making Nigeria to becomea world leader in sorghumproductionMaking it possible for ourCompany to incorporatethe grain into the productrecipe of some of ourbrandsHelping our Company toattract more farmers intosorghum farming andincreasing the overallproduction of the grain inNigeria.Reducing levels of povertyand youth unemployment
BENEFITS, CHALLENGES AND OPPORTUNITIES
A sorghum farm
61
Creating unforeseenbusiness opportunitiesand attracting financialresources from sociallyresponsive investors
The intervention of NigerianBreweries in sorghum productionis attracting more farmers intosorghum farming and increasingthe production of the grain inNigeria. This is increasingNigeria’s capacity to become aworld leader in sorghumproduction. An economic impactassessment commissioned byour Company showed that thenational increase in employmentas a result of direct and indirectinfluence of Nigerian Breweries inthe value chain is estimated at49,900 workers of which 46,800are farmers.
In 2013, Nigerian Breweries spentover N8.8 billion purchasingsorghum either in its raw ormalted forms. A considerablecomponent of this spend went tofarmers. This amount has alsoresulted in reducing ourdependence on barley andsavings on foreign exchange. .
From the above background,many stakeholders in theactivities of Nigerian Breweriesare directly or indirectly positivelyaffected. These include farmers,transporters, suppliers, the
manufacturing sector, distributivechannels, the economy,government (improved taxes),our shareholders, employees andothers.
Challenges
With the encouragement and resultswe have gotten so far with sorghum,we are determined to deepen ourCompany’s involvement in itsdevelopment and use it to createmore benefits for the Nigerianeconomy. There are, however,challenges; though the Companyrecorded milestones with sorghumproduction, it has not been an easyjourney. Sustaining the quality ofsorghum seeds we provide to thefarmers is difficult because of theabsence of a seed industry in Nigeria.Also, there is a lack of reliable seedpartners in the value chain, while theinsecurity in northern Nigeriawhere the grain is largely grown,is adversely affecting plantingand harvesting. In addition, thepoor literacy level of the majorityof farmers makes communicationdifficult, resulting in delayedlearning curves on the use of newfarm techniques and applicationof the right seeds.
Investments Opportunities
Nigerian Breweries spends N100million annually on the averageon the hybrid sorghum
development programme. Theseinvestments have helped to pushup Nigeria’s production ofsorghum to an estimated 7million metric tonnes in 2013. TheCompany is pursuing the sorghumdevelopment programme byinvesting in high yield seedvarieties in collaboration withresearch institutes, boostingbreeder seed production andoperating an out-growers schemewith farmers.
Sorghum is increasingly beingused as a substitute for the moreexpensive imported rawmaterials in the manufacturing ofsome beverages in Nigeria. Thesorghum malting plant in Aba,Abia state, which has significantlyreduced importation of maltedbarley, points to investorconfidence in the continuedcompetitiveness of Nigeriansorghum in the local beverageindustry. Nigeria currentlyproduces enough sorghum tosatisfy local demand and exports50,000 metric tonnes per annum.However, production is far frombeing optimized. Enormousinvestment opportunities stillabound to enhance output forend market and industrysubstitution and to stimulate theagricultural sector of the Nigerianeconomy.
BENEFITS, CHALLENGES AND OPPORTUNITIES
62ENHANCING THE SORGHUM VALUE CHAIN
We started our relationship withNigerian Breweries Plc over 20years ago as their supplier of rawsorghum and maize. However, withthe decision of Nigerian BreweriesPlc to only accept pre-cleanedgrains, we established a factory inKaduna that has all the facilities andinfrastructure to store, process,grade sorghum and eventuallydeliver the grains to the variousbrewery locations of NigerianBreweries throughout Nigeria.
We source our sorghum fromfarmers and markets spreadacross many states in the northernpart of Nigeria. As harvesting andthreshing are being done manuallyby the peasant farmers, theprocess of cleaning the sorghumin our factory involves removal ofthe following from the rawsorghum: shaft, stone (destoning),dust, gloom; we also dodemagnetizing, polishing, etc andthen eventual grading into 50 kg or100 kg bags before transporting tovarious locations of NigerianBreweries Plc.
Our Impression of the Progressof Sorghum Development inNigeria
Sorghum is still a very importantagricultural produce to the Nigerianeconomy and Nigeria is among the
three largest producers of thegrain in the world. The fourcategories of buyers are those fordomestic consumption,neighbouring countries, Federaland State Governments for theirstrategic grains reserve and theindustrial or institutional buyers.
Among the industrial andinstitutional buyers, NigerianBreweries is the largest buyer.Because of the commitment ofNigerian Breweries in variousforms to sorghum cultivation andusage in Nigeria, there is anincreasing awareness on the partof peasant farmers and all the
BENEFITS, CHALLENGES AND OPPORTUNITIES
Mr. Oyedele, Managing Director, Nikoy Nigeria Limited, Kaduna discussing with a guest
A Case Study of Nikoy Nigeria Limited
stakeholders in various parts ofthe country on the need toincrease their level of cultivationof sorghum. All these andcoupled with the sustainedefforts of Nigerian Breweries tointroduce varieties that willgenerate increased yield perhectare, is making sorghumproduction and harvest toincrease on yearly basis. Icommend the effort of NigerianBreweries Plc.
Oyedele O.O
Managing Director, Nikoy Nigeria
Limited, Kaduna.
63
Replicating Lessons Learned
There are good prospects formodernizing Nigeria’s agriculturalprocesses if corporate organisationspartner with critical stakeholders andinternational donor agencies.Nigerian Breweries’ engagement offarmers, non-governmentalorganisations, research institutionsand others in the sorghum supplyprogramme has demonstrated thatit can be done. It is also a goodmanifestation of the majorcontributions the private sectorcan make towards sustainabledevelopment in the context of thecurrent global economicchallenges.
With the abundant supply ofarable land in Nigeria, and theavailability of many cereals thatcan be cultivated on a commercialscale with positive results, webelieve the gains of our sorghumexperience can be replicated inother areas of the nation’s foodchain. This will make Nigeria tobecome self sufficient in foodproduction and generateenormous revenue from exports ofsorghum, other cereals anddiverse agricultural produce.
The inflowing investment can bedeployed in the development ofother critical sectors of the Nigerianeconomy. This will create jobs forrestive youths and reduce the level
of insecurity in the country. Thisway, the effort of NigerianBreweries to make significantcontributions towardssustainability of the society, theeconomy and the environmentwould make more impact on thefortunes of our stakeholders.
BENEFITS, CHALLENGES AND OPPORTUNITIES
Sorghum in use as animal feeds
Local farmers gathering sorghum grains
“This will make Nigeria tobecome self sufficient in foodproduction and generateenormous revenue fromexports of sorghum, othercereals and diverse agriculturalproduce.”
64ENHANCING THE SORGHUM VALUE CHAIN
BENEFITS, CHALLENGES AND OPPORTUNITIES
Conclusion
Our sorghum developmentprogramme is integrated into theCompany’s community developmentprogramme under the largercompany ambition of “Winningwith Nigeria”. We are doing so bysustaining the commercialproduction of this grain throughhuge investments over the yearsand cultivation through a networkof farmers in Northern Nigeria. Thehigh yield sorghum seedlings weare developing through researchinstitutes will continue to increasethe production of sorghumfarmers.
This brochure provides the latestinformation on what we are doingwith this important grain. It marksus out as an industry leader that issocially responsible. We arecommitted to the AgriculturalTransformation Agenda of thegovernment and to sustainabledevelopment through commercialsorghum production. In addition,we are determined to sustain thiseffort so that, among other things,we will achieve our Brewing a BetterFuture ambition of sourcing aminimum of 60% of our rawmaterials locally by 2020.
While we promote responsibleconsumption of our brands, we areintegrating backwards to promotedeepening of our development of
local raw materials through oursustainability drive.
Our commitment to this sorghumproject is with passion and is realbecause, we believe in it. We willcontinue to invest in manpowerand material resources in theyears ahead to demonstrate ourcommitment to it. The results sofar have been encouraging asthe cultivation and use ofsorghum is positively touchingthe lives of many Nigerians andcorporate organisations in manyways. The results are what wehave shown in this brochure.
We believe that if other corporateinstitutions follow the trail blazedby Nigerian Breweries withsorghum, and get involved withcommercial production of othercrops on a large scale, the totaleffort can provide ready rawmaterials for industry and putcheaper food on the diningtables of Nigerians. As a sociallyresponsible company, we areusing the hybrid sorghumdevelopment as a CSR strategyto engage a broader set ofstakeholders and create morevalue for them. We believe thatwe can do good while doinggood business.
As corporate Nigeria gets moreinvolved in agriculture, the greenrevolution Nigeria so badly
needs to produce abundant foodfor her people would have set in.Nigerian Breweries anticipatesthat before long, many cropsgrown in the nation’s agriculturalsector will receive increasingattention of the private sector. Thiswill stimulate a catalytic effect onthe agricultural sector anddevelop the national economy.The immediate gains would benational food security, jobcreation, and poverty alleviation.
For more information, contact Mrs.Emete Tonukari, CSR/SustainabilityManager, Nigerian Breweries Plc [email protected]
“ We believe that if other
corporate institutions
follow the trail blazed by
Nigerian Breweries with
sorghum, and get involved
w i t h c o m m e r c i a l
production of other crops
on a large scale, the total
effort can provide ready
raw materials for industry
and put cheaper food on
the dining tables of
Nigerians.”
65
GLOSSARY
ADPs - Agric Development Projects
AGRA - Alliance for Green Revolution in Africa
BaBF - Brewing a Better Future
CSR 01 & CSR 02 - (Two Open Pollinated varieties of sorghum developed by NB)
CSR 03H /CSR 04H - (Two Hybrid sorghum seeds developed by NB)
FMA & RD - Federal Ministry of Agriculture and Rural Development
IAR - Institute for Agricultural Research
ICRISAT - International Crops Research Institute for the Semi-Arid Tropics
IFDC - International Fertilizer Development Corporation
LAB - Laboratory
MARKETS - Maximizing Agricultural Revenues and Key Enterprises in Targeted Sites
NACGRAB - National Centre for Genetic Resources and Biotechnology
NASC - National Agricultural Seed Council
NASD - National Agricultural Safety Database
NB - Nigerian Breweries
NSE - Nigerian Stock Exchange
OPVs – Open-pollinated varieties
R & D - Research and Development
RPCs - Regional Production Coordinators
SAP - Structural Adjustment Programme
SERA - Social Enterprise Reports and CSR Awards
USAID - United States Agency for International Development
VMI - Vendor Managed Inventory
WASA - West African Seed Alliance
66ENHANCING THE SORGHUM VALUE CHAIN
67
68ENHANCING THE SORGHUM VALUE CHAIN