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The Private Sector and Input Access in Nigeria


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Slides from Guiding Investments in Sustainable Agricultural Intensification in Africa (GISAIA) project launch held in Abuja, Nigeria on 6/17/2013

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The Private Sector and Input Access in Nigeria

  1. 1. Private Sector and Input Supply in Nigeria:Notore’s PerspectiveInnocent Okuku, PhDHead, Marketing and Business DevelopmentNotore
  2. 2. 2ID#: 2009-04-20-01-KMThe Farm Input Supply Problem in NigeriaFertilizerImproved Seeds Crop Protection Products(CPP)• Low production<5000mt/year• Prevalence of quality issues• LowestAdoptionRates• 80% Sales through Govt• Very limited marketing•Inappropriate products and pack sizes•Only one local manufacturer•Poordistribution and LimitedMarketing•Distortion of Market Price by subsidies•PoorQuality Bulk Blends,ShortWeight•PoorAvailability in SeasonHerbicides73%Pesticides,Others27%• Deregulated with numerousplayers•Active distribution network•Available in most regions withsmall table top retailers•Very limited marketing due tolimited scale of companies
  3. 3. 3ID#: 2009-04-20-01-KMThe Result...Sub Saharan Africa including NigeriaUnsustainable Growthin Productivity Net Importer of food andagriculture non-attractive1960 vs.Today Outside Africa:25% more food:In SSA:10% less food No more virgin land for farmexpansion Farmer Ignorance Pooraccess to markets Accessto Finance Risk of weather Land tenure systemsFarming dominated by subsistentsmallholders•Mainly smallholdersProduces 95% of thenation’s agricultural output 2+million MT rice import Wheat, sugars andseveral othercommodities Collapse of most agro-allied industries followingtheir being non-competitive Average age in farmingwell over 55
  4. 4. 4ID#: 2009-04-20-01-KMSupply Chain: GroupsReversing the negative trend..
  5. 5. 5ID#: 2009-04-20-01-KMPrivate Sector Actions Required in InputProduction• Increased production of appropriate fertilizers and seed•Crop specific product•Packaging consistent with smallholders buyingpower•Attention to quality of productsNotore’s action• Increasing fertilizer production capacity•Introducing crop specific blends•Launched Notore seeds with improved rice and maizeseeds•Presenting products is small pack sizes (1 & 10kg)•Very strong emphasis on product quality
  6. 6. 6ID#: 2009-04-20-01-KMPrivate Sector Actions Required in InputDistribution• A robust structure that reaches farmers with inputs•Reduced supply chain costs•Proximity to farmers location•Delivering product in a timely fashion•Financially and socially sustainableNotore’s action• Built a direct to retail distribution structure•Operates a pan-Nigeria pricing structure thus reducingmarket distortions•Has a significantly controlled channel to maintain qualityof product and services
  7. 7. 7ID#: 2009-04-20-01-KMPrivate Sector Actions Required inPromoting Input adoption and appropriateuse• Educating smallholder farmers in improved farmingpractices•Yield improving agronomic practices•Efficient farm input use approaches•Farm business management skillsNotore’s action• Developed a 3000+ strong private extension serviceproviders – Village Promoters (VPs)•VPs educate farmers in improved farming practices, farminput use and farm business management skills•Reaching more farmers through video and radioeducation
  8. 8. 8ID#: 2009-04-20-01-KMThe Vehicle: Direct to Retail.....NotoreDistributionPartner90+ DistributionPartnersSales - 20 MembersVillage Promoters(VPs)Agro Dealers3500+ RetailersFarmers14 M FarmingFamiliesAgric Services- 20 MembersHaulage - 10 MembersDevelopment Partners350+ TrucksTransportNetworkObjectives of the Vehicle..... Educate farmers on inputs Give farmers access to appropriateinputs Fertilizers, Seeds Reduce supply chain costsDelivering..... Innovative education Private extension-led Demos,Videos, radio Appropriate pack sizes: 10kg, 1kg, USGAn Integrated VehicleReaching Poor Farmers and helping Improve theirLives
  9. 9. 9ID#: 2009-04-20-01-KMSummary of results…Farmers Reached: 1.8 million farmers reachedthrough demo plots and fielddays and market storms Rural dwellers in over 2500communities in 30 statesgranted access to fertilizer inappropriate pack sizesEmployment generation(outside our employees) 2400 private sector extensionpersonnel (Village Promoters) Over 1700 staff employed byDistribution channel Over 450 employees intotransport network9
  10. 10. 10ID#: 2009-04-20-01-KM10The outcome of the our latest assessment…..33.56% of farmers in survey learnt at least 1 better farming practice fromNotore…..
  11. 11. 11ID#: 2009-04-20-01-KMNotore Chemical Industries LimitedCorporate OfficeNotore Industrial Complex, Onne, Rivers StateTel: 234-700-FERTILIZER (234-700 -3378-454-937)Lagos Office: 6th Floor, Bank PHB Building, Bank PHB Crescent, off Adeyemo AlakijaCrescent, Victoria Island, Lagos. Tel: 234-1-279 8079, 279 8081, 279 8082, 461 5292,461 5465, 462 7494 – 6. Fax: 234-1-271 4012Abuja Office: 2nd Floor Left Wing, The Clan Place, Near CAC, Tigris Crescent, Maitama, Abuja.Contacts:Innocent Okuku Head, Marketing & BusinessDevelopmentinnocent.okuku@notore.com11