1. Improving Market
Access for the Poor
A market based approach
This report presents a summary of a market assessment for maize
and soya carried out in Niger State, Nigeria. The assessment was
conducted as part of VSO’s Improving Market Access for the Poor
project – a global project to increase income for the poor by
equipping them with the skills and resources to have more
equitable participation in value chains.
2. Prepared by Minto Reang, VSO Market Assessment Advisor
minto.reang@gmail.com
I. Key findings
II. Summary conclusions &
recommendations
III.(A) Maize value chain
(B) Soybean value chain
IV. Policy issues
3. I. KEY FINDINGS
The state of Niger presents a unique challenge of extremities wherein it is abundant with land
resources being the largest state in the country in terms of land mass with 9.3% of the country’s
area and agriculture as the dominating economy with 80% population engaged in farming but
hardly 15-20% of the total arable land is under cultivation and an absence of any large processor
either in feed or oil industry.
Poor and marginalfarmers constitute around 70% of the totalfarmers in Nigeria the plight of small
farmersin Niger state isnodifferent.Thislarge grouphasmeagrefarm-holdingaveragingbetween
1-1.5 Ha per household and has an average household income of Naira 42, 000 per annum (2008)
and Naira 60, 000 per annum as per latest figures from the Bureau of Statistics of the Federal
Government. The problems of an average small farmer are further aggravated with large family
size.
Some of the ways to improve farmers’ incomes is through engagement in value added services
(sorting, grading, bagging and packaging), establishing supply linkages of farmer’s groups with
large processors outside Niger state, connect them with local processors in the state and by
reducing post – harvest losses substantially which dent their overall earnings by almost 15-40%.
One of themain constraintsidentifiedwhileundertakingmarket assessment inNiger state wasthe
disconnect between producers (farmers) and processors or in other cases the spatial distance
between the producers or farmers in Niger state and their corresponding lead firms (consumers)
who are located in other states such as in Lagos, Kaduna, Kano or other places.
This report thus tries to strengthen existing linkages and in other instances facilitate linkages
betweendifferent valuechainactorsinorderto createrobust supplychainsformaizeand soybean
in Niger state.
The studythusproposesmultiple propositions at variouslevels.In the overallmarket environment
there must be concerted efforts to harness the state of Niger’s enormous agricultural projects as
envisaged in vision document 3:2020 and vast resources mapped out in Fadama III project.
Simultaneously, awareness regarding government policies must be fostered at village and
community levels. Some of the popular means of disseminating market information are through
local radio programs and informal networks of market channel members and street plays. Using
mobile networks and sponsored radio shows can be a good option to achieve this end.
Agricultural statistics have revealed that the best combination of inputs among farming practices
is with improved seeds and organic fertilizers which gave yield of 2.193 T/ Ha for maize and 1.281
T/ Ha for soybean respectively. By adopting this method coupled with research inputs from
academic institutions and research organizations this will improve the overall productivity.
To improve the average household incomes of farmers maize farmers can be encouraged to
engage in grading, sortingand packaging or baggingof fine grade and braded grains which willgive
them extra profits of up to Naira 20, 000/ Ton in fine grade maize.
4. There is an expressed need to strengthen farmer’s collectives in terms of better governance and
structures. Formation of smaller informal groups can be initiated for efficient management and
empowerment and collective bargaining. This will make it more efficient and will subsequently act
as a pressure group at community levels if adequate capacities are built. This also includes skill
training in business, marketing and financial literacy. These groups can be the building blocks to
activate smallsavings&loansschemessuchastoexplorethefeasibilityofindigenousortraditional
savings & loans schemes and then scaling up operations.
At the market level if some of the unoccupied shops and spaces in central markets can be used as
lock-up storage spaces and bulking as this will reduce transportation costs, wastages and spillages.
Further, assembling & collection centers or aggregation & marketing points/centers can be
activated which will streamline the supply chains and help in estimating demand.
The possible risks which may hinder the proposed interventions at the processors stage is the
threat from substitutes such as using ground nut cake or meal instead of soybean cake or meal in
the feed mills or when maize is substituted for sorghum in feed mills or millet in breweries. This is
done primarily due to the availability of cheaper substitutes.
Finally, it isnot only the supply push (farmers) but also the demand pull (lead firms) which must be
able to stimulate the value chains including sub-sector or derivatives markets in Niger state. It
makes for good business sense to revive sick units (feed mills, maize drying units and other large
processors) in the state through private investments which will create guaranteed buyers, provide
steady incomes throughout the year for farmers and also increasing their farm holding as some of
them can be out-growers (for a proposed large soya oil mill with 500 Mt/ day installed capacity),
regulate prices and improve the overall business climate in the state of Niger.
II. SUMMARY CONCLUSIONS &
RECOMMENDATIONS
The agriculture sector is the third largest non-oil sector after the Services Sector and the Industrial
Sector in terms of its contribution to the overall economy. In 2014 it contributed to 15.41% (Q1),
13.21% (Q2) and 18.23% (Q3) respectively (National Bureau of Statistics: January 2015). The
farming practice in Niger state reflects the overall Nigerian agricultural sector as it is consistent
with the cyclical pattern. The year on year growth in agriculture for 2014,the openingquarter (Q1)
growth rate of 5.53% is the highest recorded in since the fourth quarter (Q3) of 2013 at 3.5%.
Growth slowed in the second quarter (Q2), a decline in the rate by 1.85% points to 3.68%, before
picking up to 4.47% in quarter three (Q3). This is consistent with post-harvest period which usually
is in the last quarter of a calendar year (Oct-Dec) which is reflected in the growth in the sector
which peaks in the following quarter (Q1) in a given year as evident from the figures from the
National Bureau of Statistics report dated January 2015.
5. Agriculture in Nigeria iscomprised of the four sub-activities of Crop Production,Livestock, Forestry
and Fishing. The largest activity in the agriculture sector is Crop Production which is also the main
driver of growth of the agricultural sector, contributing as much as 85.39%, 85.91% and 90.13% to
growth in Q1, Q2 and Q3 respectively in 2014.
At the small farmer’s level the consumption
pattern for both maize and soybean is
40%:60%:food: industrial uses as revealed
by respondents during the interviews and
community interactions. The production
figures for soybean in Niger show that it
emulates the national production figures
with upward trends, but it still is unable to
meet the rapidly growing demand from the
animal feed mill industry for soy meal or
cake and from vegetable oil processors.
Imports of crude vegetable oil are liberalized
and hence local processors now have to
resort to imports to fill the supply deficit. Market opportunities exist in Nigeria for exporters of
soybeans, soybean meal, crude vegetable oil and value added soy-based food products or soya
derivatives. The increase in annual production of soya is fuelled mainly by the demand for soya in
the feed industry led by demand by the poultry sector, averaging about 25 per cent per annum in
the last five years preceding 2010-2011. The national increase in soya production was 6.25% in
2011-2012 from the previous year 2010-2011 (480,000 MT). Some of the barriers observed are
low yield levels resulting from the high cost of seeds and scarcity and erratic availability of
fertilizers. Average yield levels are approximately 1.2 MT/ha. Both maize and soya take
approximatelythesametimetoharvestafter3-4monthsofplantingdependingthetimeofsowing
and seed variety used. Maize is grown almost everywhere in the country as it is a staple crop.
Benue State is the dominant soybean producing area but several other states such as Kaduna,
Plateau and Nassarawa are increasing production too and together produce almost half of the
country’s total production. Niger produced about 5.56% of the country’s total soya production as
in the year 2014 (36,146 Mt against 650, 000 Mt for Nigeria).
This report introduces value chain analysis in the backdrop of the sustainable livelihoods
framework and its application to value chains in Nigeria and in particular the Niger. Experiential
knowledge based on this framework has demonstrated the value of introducing a market focus
into rural enterprise development programmes and the importance of building an understanding
of whole market chains and developing co-operation within the chains in order to achieve better
outcomes and sustainable impacts for small and marginal farmers (with average farm holdings of
1-1.5 Ha per HH) who constitute 70% of the total population engaged in farming activities in Niger
state (80%-85% of the overall State population is involved in agricultural activities as per 2006
Census). This group also includes disadvantaged women, men and young people with little or no
assets, its ownership or control.
6. For a balanced analysis of value chains this report has looked at the maize and soybean value
chainsatthreekeylevelsin market structure:the market environment,market orvalue chainsand
market services. Value chain actors over a period of time depending on the role attractiveness and
availability of resources may be motivated to improve their position in the chain by adopting new
roles or play multiple roles and thus adapting their relationships with other market actors in the
value. For instance, small farmers may become brokers or middle-men by acting as market agents
forleadfirms(processors)whilesomeofthesefarmersmayextendtheirroletopostharvestvalue-
added services such as sorting, grading and bagging and women may venture into home-based or
cottageindustriesbypreparingmaizeandsoyaproductsusedineverydaylocalcuisineasasurvival
tactic to earn a livelihood rather than as a sound business strategy during off-seasons. Finally, the
role of non-value chain actors, such as of development organizations or civil society groups,
interest groups may go beyond the conventional facilitation roles. However, with recent
developmentsinforgingpartnershipsandpro-poormarketdevelopment,alltheseactorsarelikely
to play a pivotal role in value chain upgrading.
CONCLUSIONS
• Farming in Nigeria is predominantly subsistence in nature and hence most of what the
state of Niger produces is eaten as subsistence crop on the farms where it is grown and very little
is processed into higher-value foods. A few research organizations and lead processors have been
working together on developing high-yielding varieties of some crops and teaching farmers how
to grow them. (The Economist, Special Report, Nigeria:20 June 2015). This is however not
replicated in Niger where there is an obvious lack of efficient farming techniques with greater
dependence on government subsidized agro-chemicals than other farm inputs. The processing
industry too is represented by a few micro, small oil and feed mills which are characterized by
operating below their respective capacities and run only during peak months in a year. The feed
millsdependonoilmillsfortheirmealorcake(aby-product)asoneoftheirinput.Arandomsurvey
of some retail outlets has more of maize food products than soybean products on their shelves
which confirm the wide usage of maize as a staple food. However, it is interesting to also note the
wide availability of soya products such as oil, milk powder, infant food, health drink etc. which are
either locally manufactured or imported indicating a growing acceptance of Nigerians for soya in
their diet.
• Overall both maize and soybean are extensively used in Nigeria in primary, secondary and
tertiary markets in sectors such as maize in primary market- animal feed, flour mill, brewery
industry, industrial or pharmaceutical starch, cereals, bakery and confectionary products, sweet
corn etc. Some of the secondary and tertiary markets it is used in are sugar, enzymes, hops and
additives, vitamins, offal, additives, health supplements and as preservatives.
• Similarly, soybean is used in some of the following primary markets such as in animal feed,
margarine & edible oils and in the secondary and tertiary markets as cereals, offals, additives and
as supplements (vitamins and minerals).
7. • A leading consulting firm reckons that Nigeria could easily double its agricultural output
over the next 15 years by introducing some simple reforms. As pointed out in the same report the
subsidies provided in agriculture is riddled with corruption especially in distributing fertilizers and
seeds to poor farmers.
• While price of maize has remained stable and available, soybeans price has skyrocketed
andthecommodityhasdisappearedfromthemarket.Tobridge
domestic demand 60,000 metric tonnes
of soybeans was imported in 2014.
(Source: National President of Poultry
Association of Nigeria (PAN), Olabode
Oduntan: November 2014).
Market Environment
• A random profitability analysis
between maize and soybean indicates
soybean as more popular than maize
farming because of its increasing demand
in processing industry; but is subject to extreme price
fluctuations. Hence this calls for putting some price controls or safeguards to protect the interest
of small cultivators. Some of these farmers resort to distress selling at farm-gate and primary
markets as these markets are held only once or twice every week. Rather than spend for
transporting the same back home and without any suitable storage space at the markets it puts
farmers in a vulnerable position which is then taken advantage by middle men or brokers.
• Though maize as a grain finds itself as no. 1 on the banned list (link:
https://www.customs.gov.ng/ProhibitionList/export.php); yet there are exporters who have been
able to repackage 100 kg bags into 25 kg & 50 kg bags after sorting, grading and packaging them
export them to other countries. This shows that the domestic demand at household level may not
have improved significantly but overseas demand surely has.
• There is no enforcement of a uniform unit (mudu) or standard of weights and measures
ever since the Marketing Boards were scrapped in the early 1980s. Now the onus is shared
between the Commercial Department of each LGA and the Ministry of Agriculture & Rural
Development at the state level. The latter’s efforts of enforceability on quality standards/checks
on livestock or grain is often thwarted by the former which collects revenue (allegedly done
without checks and balance) as informed by a government official of the Ministry of Livestock &
Fisheries Development. With varying units of measurements it has created confusion with many
offering different answers as some say three; some four and others reveal that there are more
than four types of mudu used in the markets. A sack of grain too may weigh100 Kg or more. These
variations may create confusion to an outsider and gives comparative advantage to some of the
market actors who benefit out of it.
8. • There is an inherent need to increase overall awareness regarding agricultural policies of
the government at LGA levels as many respondents seem to have knowledge limited to only
government subsidies in agriculture and which to some degree may extend to improved seeds.
Some of the most popular channels of disseminating market information among farming
communities are through local radio programmes, informal networks such as through
transporters, peers and farmers’ cooperatives.
• Land tenancy and rights are important issues as the Governor of any state is the custodian
of the entire land of that state. For small and marginal farmers who may have taken their land on
lease, when the land is kept fallow or during dry season it is not a productive asset and yet the
lease for the land has to be paid it is a huge gamble. This issue is aggravated when crops fail due to
untimely rains, damage caused due to pest infestation, attacks from river birds, animals, weeds,
rodents etc. However, in Niger state land is available in plenty by virtue of being the largest state
in Nigeria though the farm holding for each household is under 2 Ha. Tangible evidence such as
official documents as claims of land possession and ownership is a subject matter which is beyond
the scope of this report and may be taken up as a separate study.
Market or Value chains
• Brokers or dealers as a collective group play multiple roles: as farmers, middle-men,
bulkers, transporters and as agents to brokers of large companies who can be effectively used for
strengthening existing market chains. They also play a major part in influencing prices.
• In the processing industry there is an evident relationship between feed mills and oil
processors as the former are dependent on the latter for supply of meal or cake (one of the by-
productswhileextractingoil)which isoneoftheinputs(raw-material)usedtomake animal(cattle,
poultryandfish)feed.Duetoitserraticsupplypatternsanduntimelyavailabilityacrossthecountry
feed mills also rely on cheaper alternatives such as ground-nut or sorghum meal and cake to
substitute for soybean and maize meal and cake respectively. Likewise in the brewery industries
there is a tendency to replace maize with relatively cheaper substitute such as millet. As a
consequence micro and small processors operate below installed capacities and only during
months when raw materials are available say only for 6-7 months in a year.
• Lead firms as an entity and the power and influence they exert at the policy level needs to
be researched further. Many of them act through brokers and market agents who enter into
futures contracts with small farmers which may be termed unfair. Farmers who are in desperate
need for credit during sowing time succumb into entering into verbal agreement with agents
representing lead firms who take away an equivalent sum in volumes during harvest whilst the
prevailing prices in open markets are higher.
Market services
• Agricultural extension workers and cooperatives should encourage farmers to improve
their management practices and marketing skills, as well as reduce their cost of production. This
could be achieved through capacity building and skill training workshops and by reducing or
9. eliminating inefficiencies. Further, smaller groups within the cooperatives can pool resources to
purchase farm inputs in bulk in order to take advantage of economies of scale.
• Limited market information among farmers about value chains and about large buyers,
lead firms (processors, F&B companies etc.) about sub-sectors, intermediate goods, other
derivatives especially for soya, what are they used for, the scope of the market, where does the
finished product finally reach etc. among farmers and aggregators which acts as a limiting factor
for them to think and act beyond their primary roles and move-up the value chain.
• Similarly, finance and access to timely and cheap credit is also a strong need as the sale
proceeds from the previous harvest is spent towards household expenses and toward expenses
related to family members such as paying school fees of children. Micro-finance banks are not
usuallythefirstchoiceduetohighratesofinterestchargedindoubledigitsandsmallgroupsavings
and loans schemes are best used to meet household expenses only.
• Some of the credit providers such as micro-finance banks play more than just providing
credit to even trading in grains which can be probed further.
• The latest official state data estimates only 5% agricultural activities have been
mechanized. If cost comparisons are made then mechanization such as hiring tractors (Naira 5,
000/ Ha or $25/ Ha) is relatively more cost effective than ploughing using animal traction (Naira
15,000/ Haor$75/Ha).{at 2015 ratesand withcurrentexchangerateof1USD($)= 200Naira(N)}.
• At household levels it is seen that for large households 20% of the total produce is retained
for household consumption and the remaining80% is sold and the same for a smallerfamilyis10%
and 90% respectively as some of the in-depth and semi-structured interviews have revealed.
• Insurance providers and transporters are almost invisible players. It is advisable to have
appropriate safeguards in place such as micro-insurance policies and integrate it with existing e-
wallet system (currently only used for disbursing subsidized fertilizers). Insurance is obligatory for
farmers but the banks insist on it only when farmers apply for bank loans as part of their eligibility
criteria.
• The role of transporters, processors and manufacturers also as sources of market
informationand credit suppliersforbrokersand other agentsordealershavetobeprobedfurther.
• In subsectors such as the feed industry there is available government infrastructure in
place under the Ministry of Livestock & Fisheries in Niger state. The government operates on a
cluster model with self-contained infrastructure in many units with hatcheries, feed mill, pens,
cattle sheds, breeding centres etc. A lease, build and operate model is in place which can be
explored so that farmers can move up the value chain as entrepreneurs. The department
concerned has so far been able to attract the attention of youth and retirees.
• Nutrition and fortification: As malnutrition is endemic in Nigeria soybean is thus used to
fortify other food products such as infant formulations to everyday flour for its protein content.
Overall usage in 2007-08 for soybean showed 53% usage in the processing industry to extract oil,
41% use in human food consumption such as in soymilk, soy cake, soy yogurt and the fortification
of local carbohydrate-based Nigerian food staples (USDA Grain Report Nigeria-Soybeans and
10. products:2012); seed residuals and 6% in industrial food usage as on 2007-’08. There seems to be
no data available for the State’s usage pattern but as mentioned earlier several interviews with
farmers have shown that this proportion is 40% for food and the rest 60% usage is toward animal
feed industry. This may be due to the absence of large processors in the state. There are several
micro-processors with less than 0.5 Mt/ day installed capacity but are not grouped into formal
associations. Almost all of these micro-processors operate only post-harvest period (last quarter
of the calendar year till March-April the following year). This is a reflection of the national outlook
for the processing industry which shows that the processing industry on an average operates at
only 40-60% of its installed capacity. This is owing to non-availability of soybean during the off-
season and in Nigeria the supply presents a cobweb pattern. The micro-processors who earn a
profitmarginof10-15%on millingsoybeanhavetolookatmillingrice,maizeor othergrainsduring
off-seasons.
RECOMMENDATIONS
Given the findings of this study, there is a clear need to develop sustainable strategies using the
livelihoods framework that involve various stakeholders such as the government, input suppliers,
processors and farmers and farmers’ groups, middle-men, agents and markets maximize both
maize and soybean value chains. In that regard, the following recommendations have been
identified as being necessary and sufficient towards that end. These include -
Market services
Agricultural practices and access to market services:
• Capacitybuildingofleadfarmersand CAEVsincludingpost-harvest storageandproduction
in order to reduces losses to minimal or acceptable levels. The post- harvest losses among the
farmers’ collectivesVSO has engaged with was found to be 20% while the national average ranged
between (15%-40%).
• Collective farming to be explored among small farmer’s groups with common interests
such as among maize and soybean growers with small farm holdings and take advantage of
mechanization and economies of scale. This will reduce the costs of production significantly which
constitutes up to 80% of the total costs.
• The costs incurred on mechanization can be further reduced when farmers groups can
engage local manufacturers or departments of Agricultural colleges to fabricate or assemble farm
machinery, equipment and other tools.
• Similarly, collective or community bulking and warehousing can be explored as part of
post-harvest best practices to reduce overall losses. The state has five silos with a combined
11. storage capacity of 12,000 Mt. There is also a 10,000 Mt capacity Federal Government Strategic
Grain Reserve silo in Minna which can be
optimally.
• Collective or community bulking and
warehousingtobeexploredatvillageleveland
primary or farm-gate markets. Unoccupied
shops in Central markets can be explored for
feasibility as store houses or lock-up spaces to
minimize wastage, spillage and infestation.
This will also curb distress selling by farmers
when they are assured of safe storage spaces
at the markets for their produce.
• Grading, sorting and bagging or packaging to be done at farmer’s level and other related
value additions in order to attract better value for maize and soybean sold. Evidence suggests that
for the finest grade A maize a farmer can earn up to N60, 000 per ton.
• Facilitating access to market services and farm inputs such as improved seeds and organic
fertilizers by buying collectively in bulk at competitive prices and then distributing them among
farming households.
• Encourage initiating indigenous and traditional small savings schemes among small
interest groups which are self-governed and have further scope for replicating and scaling-up. For
example evaluating feasibility and viability of Adashi among Hausa farming households.
• Financial literacy and business acumen as an input is also an important need for farmers as
well as to other intermediaries in the value chain as many of them are not very proficient with
aspects beyond basic record keeping.
12. BUSINESS DEVELOPMENT SERVICES
• Individual and group financial literacy training: Financial literacy and business acumen as
an input is also an important need for farmers as well as to other intermediaries in the value chain
as many of them are not very proficient with aspects beyond basic record keeping.
• One of the important areas for possible intervention is to advocate for and facilitate
through private sectorparticipation in improvingrural infrastructure sothat smallfarmersare able
to get their produce to primary, feeder or central markets and empower farmer’s groups to
operate within the market structures unhindered.
• Revivinghitherto sickordormantfeed millsandprocessingunitsandthroughPPPbusiness
model with government and private sector players in existing cluster processing units in the State
which encourage entrepreneurship among youth and retirees.
• Access to market information through sponsored radio programmes. Price bulletins on
prices traded for maize and soybean in real time can be broadcast twice a day – one before the
markets open and then after the close of markets. Similarly, notice boards can be maintained by
traders associations at feeder and central markets in three target LGA in Niger state viz. Mokwa,
Mariga and Paikoro with tonnage and price for grains traded on a daily basis or on market days.
• Radio programmes and street plays are popular media vehicles which can be optimally
utilized not only to disseminate market information but also to popularize agriculture as a
sustainable source of livelihood. Some new age bloggers who are more popular among the
younger lot (young farmers and youth aspiring to enter into agri-business) and on social media
such as Twitter and Facebook can be instrumental in making agriculture and farming popular
among Nigerian youth. Some other platforms which can be used to popularize could be NYSC
recruitment camps held three times a year nation-wide. With alarmingly increasing percentage of
unemployed youth in Nigeria some reports reveal that Nigeria needs a double digit growth rate
which is unlikely. Evidence shows that among non-oil sectors agriculture holds a lot of promise for
growth which will receive further boost with active Federal and State support.
• Radio programmes and street plays are popular media vehicles which can be optimally
utilized not only to disseminate market information but also to popularize agriculture as a
sustainable source of livelihood. Some new age bloggers who are more popular among the
younger lot (young farmers and youth aspiring to enter into agri-business) and on social media
such as Twitter and Facebook can be instrumental in making agriculture and farming popular
among Nigerian youth. Some other platforms which can be used to popularize could be NYSC
recruitment camps held three times a year nation-wide. With alarmingly increasing percentage of
unemployed youth in Nigeria some reports reveal that Nigeria needs a double digit growth rate
which is unlikely. Evidence shows that among non-oil sectors agriculture holds a lot of promise for
growth which will receive further boost with active Federal and State support.
13. Market or Value chains
Group Strengthening:
Organizational development and
strengthening of governance among value
chain actors having common interest such
as farmers’ collectives, processors, middle-
men etc. These groups once strengthened
can then act as pressure groups at LGA and
state levels and thus facilitate change in
government policies or for advocacy.
• Farmers’ collectives need to be
more inclusive and should include the
most poor & marginalized farmers who
constitute the primary beneficiaries of this project.
Value Chain Strengthening:
• Strengthen market linkages - To ensure regular large volume buyers for maize and
soybeans thus strengthening respective supply chains in a multi-pronged manner. For instance
partnershipswith leadfirms or processorssuch asoil andfeed mills.Some of thesefirmsalso assist
farmers (some of these as out-growers) with inputs and related services as well as post-harvest
support and as buyers of the produce.
• Organize small processors (millers, feed mill, bakers, confectionaries etc.) into collectives
of common interest groups to strengthen supply chains& for a better estimation of demand,
supply gaps in processing industry (oil & feed for soya) and (cereal, feed, flour, starch for maize).
Thismeansmobilizingallthe registered 39 smallprocessingindustriesinthe state (ason2007)into
cooperatives or informal groups to strengthen maize and soybean value chains. This will also give
clarity in terms of domestic consumption and provide further scope for business prospects in case
of surplus.
• Similar, such exercise can be carried out with all the relevant processors and other
stakeholders in higher value chains of maize and soybean covered under Fadama III project and
organize them and strengthen the linkages to create a robust supply chain for both crops.
• Development of value chain infrastructure including dissemination of market information.
14. Market Environment
Policy Advocacy and Lobbying:
• Advocacy and lobbying training for capacity building – Forging consortiums and larger
alliances with groups or associations having similar interests or agenda to have a greater voice and
act as pressure groups at LGA, state and federal levels for disseminating government policies on
agriculture.
• Foster business environment to make exports lucrative in the area of fine grade and
branded grains especially for maize.
• Using ICT including mobile technology to disseminate market information, government’s
agricultural policies and other relevant information on farming techniques and miscellaneous
related information.
• Advocate for uniform units of weights and measurement systems in place by partnering
with appropriate civil society organizations and Government departments and Ministries. For eg.
CommercialDepartmentsat each LGA, SON, MA&RD. This will ensure easy calculationsin demand
for and supply of grains and also make necessary corrections in the pricing mechanisms in the
longer run and give better returns primarily to small farmers and to others in the value chains.
• Generate awareness, sensitize and educating farmers by CAEVs or lead farmers about
Government’s existing policies. This should also include imparting knowledge about land tenancy,
land rights and related policies and documentation thereof. The CAEVs can support the existing
structures of lead or pilot farmers and ADP at each LGA by minimizing the proportion of lead
farmer to farmers from existing 1:1600 to more effective levels.
• Advocacy for parity in labor wages among men and women as the latter earn only half as
much as their male counterparts. This will in turn contribute to increasing household incomes of
farmers.
17. IV. POLICY ISSUES
Over the years there have been several Government initiated agricultural projects and programs
in Nigeria such as the Growth Enhancement Schemes, Agricultural Development Programs,
Fadama I, II& III,Presidential Initiativesand some others jointly implemented with assistance from
international multilateral & development agencies. These coupled with the subsidies on some
inputs such as fertilizers and seeds. However, it is surprising to note that during interactions with
several farmer’s groups many were unaware of any adequate government support extended to
farmers besides the subsidies on fertilizers. Hence, one of the first tasks is to create awareness
about existing government initiatives through popular radio programs or informal channels used
by farmers such as communication channels with members of their own cooperatives, interest
groups, from transporters, brokers or middlemen and in some places through street plays.
As the IMA4P project aims to grant
unhindered access to poor and marginal
farmers to markets and others further in
the agricultural value chains policies that
cater to establishing collection centers or
aggregation points for grains, feeder
markets that are strategically located
near regions which have been identified
as growing major crops must receive
greater thrust. Adequate and good
storage spaces at farm-gate and primary
markets to be made available as these
markets are either held once or
twice a week only. Farmers groups can be granted greater access to government owned
warehouses, silos. There ought to be government intervention at regulating prices for essential
crops and grains such as is prevalent for rice by offering a minimum support price for mandated
crops which will address the problem of unsold stock.
In terms of policy, advocacy and governance one hasto work closely with the FederalGovernment
and ministries concerned regarding subsidies to expand the scope of existing subsidies to not only
include fertilizers but also to include improved varieties of seeds, farm equipment, agriculture
loans and other essential inputs. This will reduce the cost of inputs drastically and thereby the
overall costs incurred on farming. It will also encourage several farmers groups to explore the
benefits of collective farming through mechanization. The government must be able to stimulate
international demand by creating enabling business environment by relaxing export controls on
say maize asa grain.There are existingPresidentialinitiativesto increase theproduction and boost
exports for some crops such as for rice the Initiative on Increased Rice Production and Export
Programme (IRPEP), Initiative on Increased Cassava Production and Export Programme (ICPEP) for
Cassava respectively. A similar initiative named the Vegetable Oil Development Programme
(VODEP) can be integrated with soybean oil extraction process.
18. Future advocacy issues may include land tenancy, land rights and for parity in labor wages for men
and women as the latter earn only half as much as their male counterparts. Another policy thrust
area is advocating for uniform weights and measurements through sensitization for all
stakeholders concerned.
For some of these to be realized it is important first to generate awareness among farmers and
other interest groups. By doing so, the farmers and other direct beneficiaries are empowered and
thus can form pressure groups at village, district and Local Government Areas which are the local
levels of governance at each state.
If you would like to find our more information,
please contact Minto Reang at
minto.reang@gmail.com
