Ekiti state presentation at the Agriculture forum in Washington DC
AGRIC BUSINESS OPPORTUNITIES IN EKITI STATE, NIGERIA being a presentation by Dr. Kayode FAYEMI Governor, Ekiti State, Nigeria at the NIGERIA:TRANFORMING AGRIC-BUSINESS THROUGH INVESTMENT Washington DC, April, 2012
Background Employs 70%+ of work force Major contributor to state GDP: $2.85*0.6= $1.70 billion Major source of IGR. Industry not possible without local raw materials, so agri-processing is key Pay back to investment in infrastructure lies with agriculture.Our Approach Private sector driven Promote access to land, inputs & equipment needed to increase productivity Overcome bottlenecks in value chains that result in low returns to potential farmers Increase proportion of land under commercial cultivation Increase the proportion of high value produce Increase value added within state
Outstanding Agricultural PotentialThe state is blessed with very favourable land conditions for agriculture Population above 2 .7million people and a total land area of 5,306.72km Laced with some of the richest agricultural lands in Africa and huge potential to develop a sustainable commercial farming sector Of the total land area of 5,307 square kilometres (km2), Less than 4,000ha is farmed commercially Some 4,596km2 is considered suitable for agriculture - Both Orthic and Plinthic Luvisols existDual agro-climatological condition suitable for cultivation of almost all varieties of crops under rainfed and irrigated agriculture The northern forest savannah and Southern tropical rain forest with mean annual rainfall of 1600mm and 1800mm respectively The former is suitable for arable crops such as rice, cassava, vegetables, fruit crops - Mango and cashew e.t.c.s and latter producing tree crops such as cocoa, oilpalm, kola, coffee, citrus and plantains e.t.c. long wet season stretching from March to mid-November that allows two short maturation crops, such as rice, to be grown without irrigationSource of 3 major rivers Ogbese, Osun and Owena. Other rivers of note are the Ero, the Osi and OniSupply of water is captured in six major dams with potential for irrigation purposes Ero, Egbe, Itapaji, Ureje, Ayede, Efon.
Why Invest in Ekiti State Agricultural Sector Geography with Comparative Advantage, yet to be fully exploited Advantaged Natural Resources High Value Crop and Livestock Production - Above average yield performance, but below potential Comparative advantage in major commodity value chains in Nigeria, Ekiti State has the highest yield per hectare for cassava and the best grade cocoa, sort after for mixing to achieve good blend grade. Area cultivated Production Yields in Ekiti National yields Arable crops Maize 167,200 ha 368,500 MT 2.2 MT/ha 2.8MT/ha Cassava 80,100 ha 1,674,450 MT 20.9 MT/ha 11.1 MT/ha Yam (2010) 82,400 ha 1,552,000 MT 18.8 MT/ha 10.2MT/ha Rice 127,810 ha 290,450 MT 2.2 MT/ha 2.0 MT/ha Tree crops Cocoa 34,288 ha 15,504 MT 0.45 MT/ha 0.2MT/ha Oil Palm (2010) 70,800 ha 53,680 MT 0.75 MT/ha 2.7MT/ha Cashew 102,309 trees 66,200 nuts 0.64 kg per tree Fruits & vegetables Citrus (2010) 600,000 trees 20,500 MT 34.1 kg per tree Tomato 7,750 ha 20,150 MT 2.6 MT/ha 7.0 MT/ha Pepper (2010) 46,900 ha 54,040 MT 1.15 MT/ha
Why Invest in Ekiti State Agricultural Sector – contd.Adequate but Growing Supportive Backbone Infrastructure - access to agricultural-supporting infrastructure, power grids network, dam facility constructed transport links from agricultural hubs to major markets in Nigeria (Abuja, Lagos, Ibadan plans for provision of agro-processing hubs with functional industrial estates and parks to be allocated to investors/entrepreneurs at reduced land premium nearby rail and airport operations in neighboring states for seamless agri-business activities.Vantage Market Position - Proximity to consumers: Ibadan, Lagos, Abuja As an established agricultural trade and transit hub linking the northern and southern markets of over 160million population, the state remains the future hub for commercial agricultureSkilled and Low Cost Labour Abundance of skilled labour at an economic cost, among the lowest in Nigeria. Existence of a pool of unskilled labour at comparatively lower cost.Political Stability and Security Very stable political environment and adequate securityAttractive Incentives and Supportive Platform to Facilitate Doing Business in Ekiti State Comprehensive package of incentives has been put in place to attract investment within and outside Nigeria
Attractive Incentives and Supportive PlatformOne Stop Shop for Investors Under the newly established “One Stop Shop for Investors”, a streamlined bureaucracy and regulatory environment now exist for potential investors. Envisaged investment bottlenecks removed by facilitating, promoting, and coordinating investments processes such as business entry permits, licenses, authorizations and incentives within a One-Stop-Shop environment for investors.Facilitation of Agricultural and Agro-Processing Land Acquisition State Government supports and facilitates land acquisition for agricultural and agro-processing for the private investors. Accelerated processing of title and other related document e.g. Certificate of Occupancy, Letter of Consent, and Provisional Offer etc. Concluded within 3wks for ‘serious’ investors committed to immediate investmentTax Breaks with Facilitative Fiscal Policy Measure Exempt new industries from rates and levies in the first 3yrs of operationsCommunity Mobilisation Support in facilitating linkages and partnerships with local agricultural communities and mobilizing local resources to support business operations for investors. Assist investors to source available human resources, local technical partners and raw materialFinancial, Equipment Acquisition and Information Support Under existing partnership with financial institutions, machinery/equipments suppliers, associations’ e.t.c. the State Government facilitate access credit facilities and negotiation platform at the federal, state and local government levels.Dedicated Committee to Fast Track Investment Proposal Commercial Agriculture Committee platform set up with the mandate to mobilise private sector investments and partnerships. Support in fast tracking investment proposals from the private sector institutions.
Ekiti State Immediate Investment Potentials and OfferingsProduction and Processing of High Value Crops Develop over 464,100ha of available agricultural land for mechanised farming operations. Call for the private sector to mobilise new investment in promoting a modern and profitable agriculture production and agro-processing of key high value crop that the state has comparative advantages i.e. vegetables, cassava, rice, cocoa, oilpalm, cashew e.t.c. Planned target for processing includes production of high quality cassava flour, cassava chips, ethanol, high quality rice and cocoa products.High Potential Forestry Value Chain Investment Operations With a scheduled forest reserve size of almost 30,000ha, Ekiti State is rich in high-value timber for which there is continued high demand within Nigeria and outside. There is an active space in tree planting in Ekiti for private investors. The forestry value chain is one of the state’s valuable sectors with growth potential for international private plantation and forestry investment. This will include forestry product processing and marketing.Abandoned Government Facilities for Private Sector Take Over There exist a moribund dairy farm seeking private sector take over for resuscitation 3 medium scale cassava starch processing mills a rice processing mill, farm settlement centres with lands and uncompleted silo projects, a fish farm, largest seed processing plant in South Western Nigeria A poultry hatchery, feed mill and several other livestock facilities (for uptake).
Private investment in major cropsExamples of proposed investments Proposed intervention Type of Investor • Medium scale food Cassava processors (flour, starch, • Yields are good, hence production ethanol producers) • Need more processing capacity to • Large scale flour, starch, increase prices ethanol producers Cocoa • Land for replanting, plantation for rehabilitation • Commercial scale farmers • Packages for replanting • Input suppliers, e.g • Insecticides, fungicides Amanjaro, Cargill , Olam • Fermenting, drying facilities • Both pry and sec processors • Buying centres • Cocoa processing
Private investment in major cropsExamples of proposed investments Proposed intervention Type of Investor Fruit, Vegetables • Production • Large food distributors such as • Irrigated land UAC, Fast food companies • Input , equipment supply • Large scale Producers • Cold stores, marketing intermediaries Poultry • Production • Large poultry businesses chain • Hatcheries, feed, veterinary services, operators. slaughter houses. • Potential large scale aquaculture Fisheries companies ‐ Durante Fish • Hatcheries, feed, veterinary services, Industries, other large catfish smoke ovens businesses. Dairy • A structure diary farm/institution • Production, on –farm feed, dairy
Private investment in major cropsExamples of proposed investments Proposed intervention Type of Investor • Oil Palm Estate developer ‐ Oil Palm Presco, Okumu, OSPAN, • Cultivation by small holders and in estates VEOPAN members, Olam • Replanting packages, agro‐chemicals • American, Malaysian • Better processing companies Rice • Production with adequate land suitable for mechanization • Suppliers of inputs, • Access roads, irrigation • Large scale rice cultivators • Better input suppliers and extension and processors (Olam) services • Large, quality processors