2. Outline
What is agric – input.
Category of agric – input.
Types of Agrochemical.
Brief history of agrochemical in Nigeria.
Split of agrochemical industries.
Total market / channel distribution.
Major agrochemical hub in Nigeria.
Importation procedure.
2020 import and market size analysis.
Profitability of the business.
3. What is Agric – input ( FARMING )
Agricultural input is defined as all materials used to make agricultural
investment (farming) to be highly productive and has higher harvest or
output.
Input starts from seed, tools, agrochemicals, fertilizers, machineries,
preservatives, etc. . This is in case of farms.
It can also be defined as all items used from planting to harvest, and in most
cases storage to final consumer to make the work easier for the farmer and
for the farmer to have higher yield .
They range from quality seed, agrochemicals, tools , fertilizers , machineries
etc.
6. Brief history of agrochemical in Nigeria
Agrochemical importation started in Nigeria around late 1960,s with 4 major
key player in the industry e.g. Syngenta , Ciba-Geigy , Nigerian German
chemical, CAPL plc. They are all under the umbrella body of A.A.N –
Agrochemical association of Nigeria.
In 1970,s few indigenous company joined the industry SARO , CANDEL African
agro etc.
Also in early 1980,s Lebanese ,Indian and China companies migrate to Nigeria
to join the industries due to the opportunity of the expanding market in
Nigeria .
In late 1980,s the umbrella body in Nigeria joined the international body
called Crop life international which make them to have affiliate with NAFDAC
and well recognized by the Federal Government.
7. Split of Agrochemical industries
The 3 major big sector in this market are herbicides , insecticides , and
fungicides.
Herbicides controls 65 % of the total agrochemical market .
Insecticides controls 20 % of the total agrochemical market.
While others fungicides , ovicides , and bactericides controls the remaining 15
%.
The level of adoption of agrochemical in Nigeria by Nigerian farmers can be
put at 40 %. Which means 60% of Nigerian farmers are still using manual weed
control and cultural control to fight insect on their farms.
This analysis up depicts that is a growing market in Nigeria and that there is
still potential to tap, and can still accommodate new entries to the industry.
8. Total market / Channel distribution
The total business of agrochemical in Nigeria based on import data sheet as at
end of 2021 is around 350 billion.
North and middle belt is controlling around 60% of this while southwest and
southeast controls the remaining 40%.
The major channels and their contribution:
- Trade members – controls 65 % of the business
- Government agencies – controls 15 % of the business
-N.G.O – controls 10 % of the business
-Big farms like leventis farms, Dangote farms, Obasanjo farms controls the
remaining 10 %.
9. Major Agrochemical hub in Nigeria
Major agrochemical market in Nigeria are :
1- Kano
2- Suleja
3- Kaduna
4- Onitsha
5- Ibadan
6- Ilorin
7- Oyo
8- Akure
N.B : The 3 major transit market in Nigeria are : Ibadan , Kano and Onitsha.
( We can have warehouse in Ibadan where we can be servicing all other areas)
10. Importation procedure
- Get contact of manufacturer in one of the producing countries, e.g China , India
,or Europe.
- Get the factory address of the manufacturer and agree with him on the product
you want.
- Get NAFDAC registration for the active you want to import, nafdac will inspect the
factory of the manufacturer over there and if everything meet up the standard they
will issue the importer the nafdac registration no.
- The nafdac no above must be on the label of the product .
- Other importation process are followed after the nafdac registration process are
done.
-NAFDAC gives 3 years shelve life for all agrochemical imported to Nigeria e.g
Manufacturing date : May “02 – Expiring date : May ‘05.
-
11. 2020 import and market size analysis
Abridge 2020 import and market size (1).xlsx
This shows the importation of different category @ 2020. Glyphosate is the
highest imported active in Nigeria, is systemic herbicides used for total weed
control, land preparation for planting , plantation weed control etc.
This is followed by paraquat which is contact herbicides and is the second
highest imported active next to glyphosate.
This ascertain my analysis that herbicide cater for 60% of the total business.
12. Profitability of the business.
The international price is based on exchange rate in Nigeria.
The market price is based on the competitors price and market situation
Generally, the profit on agrochemical is between 25% - 40% A.V.
N.B – The business is lucrative and there is still a lot of potentials to tap in
the industry.
Agriculture is major focus of Nigeria government , and most times
encouraged by the government by giving low interest loan to the business
owners.
