1ST AFLASAFE FOR AFRICA CONFERENCE
ARUSHA, TANZANIA, NOV., 2019
COMMERCIALIZATION OF AFLASAFE IN NIGERIA
HARVESTFIELD’S EXPERIENCE
CORPORATE PROFILE
 One of Nigeria’s leading agro-
chemical companies
 Our Mission is to become the major
driver of Agrochemical, Bio-control
agents, spraying equipment, seed
and public Health business in
Nigeria, employing the best brains
and offering quality products to
create wealth for all stakeholders.
CROP PROTECTION
- Chemicals – Fungicides,
Insecticides, Herbicides
- Bio-Control –Aflasafe,
- Bio-Stimulants - Nodumax
SEEDS
- Vegetables
- Grains (Rice, Maize)
PUBLIC HEALTH
- Insecticide Treated Nets
- Fumigants
- Rodenticides
AGRICULTURAL EQUIPMENT
- Agro-Chemical Sprayers
- PPE
Core
Business
2
➢ Head office/Agro-chemical
plant in Lagos and extensive
distribution network of 25
area offices equipped with
warehouses in all the six
regions in Nigeria
HIL offices
OUR AGROCHEMICAL MANUFACTURING PLANT
WHY WE INVESTED IN AFLASAFE
ALIGNMENT WITH HIL BUSINESS
-HIL expanding her portfolio of Crop Protection
Products to include biological products
HUGE MARKET OPPORTUNITY
8.5m Ha of groundnut and Maize farms in scope
- Groundnut production for export – 500,000+ Ha
- Feed industry – 750,000 Ha
- Commodity Aggregators & Processors – 1.75m Ha
- Small Holder Consumption - 6.3m Ha
PUBLIC HEALTH CHALLENGE
- High aflatoxin levels in commodities
- Aflatoxin in Maize >30ppb
- Aflatoxin in Groundnut > 70ppb
- Aflatoxin in Groundnut Oil & Cake >30ppb
CHANGING POLICY ENVIRONMENT
Regulatory Agencies paying more attention to aflatoxin
challenge
- NAFDAC Total Diet Study – 2017- 2018
- FMARD Zero Reject Initiative – 2017 – 2018
- Federal Min of Trade – Nigeria Groundnut Policy - 2019
Drivers of Investment
4
WHERE WE ARE?
2019 202020182017
HIL Joins
Aflasafe project
HIL-IITA TTLA
HIL Acquires
Equipment from IITA
Plant
Completion
❑HIL signs initial
Distributorship Agreement
with the BiP.
❑2 Clients in the first year –
Olam and FMARD
❑Tests market through sales
to SHFs
❑Sales to FGN increases
❑New clients e.g Dangote
adopt technology.
❑Commodity Associations
join list of users
❑HIL drives multi-partner,
multi-agency marketing
campaign
❑HIL and IITA sign TTLA
❑HIL ramps up sales to
multiple clients including
AgResults implementers
❑Commences Nationwide
marketing campaigns
❑Production of aflasafe
based on Toll
Manufacturing with BiP
❑Aflasafe Plant completion
targeted for March 2020
❑Increase in demand driven by
positive outcomes of trial
purchases by new clients
❑Favourable FGN policy
anticipated driven by advocacy
efforts
EXPORTS
• Export Coys
• SHFs
• Min. of Trade
• Min. of Agric
• NEPC
FOOD/FEED
• Feed Producers
• Food Processors
• Poultry Producers
• SHFs
• Grain Traders
LOCAL PROCESSORS
• SHFs
• Commodity Traders
• Government
• Local food businesses OUTCOMES
❑ 100,000+ farmers
reached
❑ Aflatoxin Levels
<4ppb across all
commercial
interventions
❑ 1St EU Export to
Spain
❑ Increased
Government
Procurement
❑ More clients e.g.
Dangote
Marketing Strategy
• Export Oriented
Cluster Initiative
• Premium Pricing
• On-Field Testing
• Training
• Market Linkage
• Business Case Dev.
• Industry Meeting
• Maize Quality
Workshop
• Partnerships (CNFA)
• Training
• Sensitization
• Subsidy Schemes
• Advocacy
• Training
Results
MARKET SEGMENTS DEMAND DRIVER
Corporate Clients:
Export Firms (Olam)
Commodity Aggregators
Multinationals (Guinness)
Commodity Cooperatives
Commercial Farms
(Dangote, Infinera etc)
• Compliance with Aflatoxin
limits by sophisticated buyers
e.g. Nestle
• Compliance with CODEX
Standards for Export
• Improve supply of raw
materials from supply chain
partners
Public Institution (FMARD) • Support for FG diversification
policy interventions. E.g Zero
Reject of Nigerian Exports
• Compliance with
International standards
• Decrease export rejections
98
60
950
391
363
171
0
100
200
300
400
500
600
700
800
900
1,000
2017 2018 2019
Annual sales of Aflasafe (MT)
FMARD Corporate client
CRITICAL MARKET INTEL
8
Demand Enablers Demand Killers
Key Take-Aways
• Demonstrated Economic value
from private sector clients e.g.
Acirfa shipment to Spain
supported FG Zero Reject
Intervention
• Enforcement of standards e.g. FG
decision to test commodities for
strategic grain reserve triggered
commodity associations to
commence use of aflasafe
• Private sector incentives in the
form of premium prices
encouraged SHFs
• Competition between Aflatoxin-
binders and aflatoxin-safe maize
limiting acceptance in Feed
segment
• Importation of maize into Nigeria
affects price of maize and
hinders ability for premium in
local processing segment
• Mis-alignment of policy and
interventions in public sector
• Low prices of g/nut in the export
market limits off-take of toxin-
safe g/nut for export – e.g.Olam
• Focusing on sales is not
sufficient to unlock demand
• Strategic partnership with
downstream actors partners
is crucial
Challenges & Proposed Solutions
• Joint working committees
reflecting PPP towards zero
reject of Agricultural produce.
• Ease of doing business
• Market actors need to offer
premium for aflatoxin-safe
commodities
• Enforcement of standards
and grades will justify
premium prices
•
• Testing of aflatoxin levels in
grains at all aggregation centers
in partnership with FGN, PACA,
NAFDAC & Commodity
associations.
• Adequate provision of aflatoxin
testing kits by stakeholders.
• Continuous sensitization on
the adverse impacts of
aflatoxins.
• Government subsidy
• Market linkage
Low awareness
among SHFs
Low adoption of
technologies
Weak purchasing
power
Weak enforcement
of
national/internatio
nal Food safety
standards
Inadequate access
to testing kits and
know- how
Weak inter-agency
collaboration at the
national level
Poor reputation in
the international
commodity markets
No price incentive
for producing
aflatoxin-safe crops
No grading system
that incorporates
aflatoxin-standards
Challenges
AWARENESS
REGULATORY
INCENTIVE
PARTNERSHIP
Opportunities and Support
 Foreseeable opportunities to be unlocked:
 Increased patronage by multinationals (e.g. Nestle)
due to border closure against imported agricultural
commodities.
 AgResults implementers willing to become HIL’s
Aflasafe distributors.
 Aflasafe shall become an input to be listed on
Central Bank of Nigeria (CBN) Anchor Borrowers
for procurement and distribution to farmers.
 Support required by HIL:
 Seeking support of ATTC on strategies and
development tools to unlock our huge market
potentials.
 USAID on advocacy
 Quality assurance support by BiP/IITA.
 Access to aflatoxin Testing Kits and training by
ATTC/IITA.
Lessons Learned
 HIL’s Business Model: Value proposition through demonstration of
technologies that impact on Agricultural productivity and quality
enhancement
 Market: Commodity associations are vital in
demonstrating new technologies to farmers in Nigeria.
 Partnerships: Government endorsement is key to adoption
of new technology in Nigeria.
 Production/ Demand: Movement of manufacturing base
from IITA, Ibadan to Asese Plant in 2020.
 Construction of Aflasafe Plant by HIL in 2019/2020.
 Recruitment of more technical staff.
 Sustained awareness creation/sensitization.
 Engagement of all stakeholders in commodity value
chains by HIL.
Looking into the Future…….
Harvestfield Aflasafe factory layout
Harvestfield Aflasafe factory layout
14

A4A2019 Session 1b: Nigeria Aflasafe Manufacturer and Distributor -- Commercialising Aflasafe in Nigeria: Harvestfield's experience

  • 1.
    1ST AFLASAFE FORAFRICA CONFERENCE ARUSHA, TANZANIA, NOV., 2019 COMMERCIALIZATION OF AFLASAFE IN NIGERIA HARVESTFIELD’S EXPERIENCE
  • 2.
    CORPORATE PROFILE  Oneof Nigeria’s leading agro- chemical companies  Our Mission is to become the major driver of Agrochemical, Bio-control agents, spraying equipment, seed and public Health business in Nigeria, employing the best brains and offering quality products to create wealth for all stakeholders. CROP PROTECTION - Chemicals – Fungicides, Insecticides, Herbicides - Bio-Control –Aflasafe, - Bio-Stimulants - Nodumax SEEDS - Vegetables - Grains (Rice, Maize) PUBLIC HEALTH - Insecticide Treated Nets - Fumigants - Rodenticides AGRICULTURAL EQUIPMENT - Agro-Chemical Sprayers - PPE Core Business 2 ➢ Head office/Agro-chemical plant in Lagos and extensive distribution network of 25 area offices equipped with warehouses in all the six regions in Nigeria HIL offices
  • 3.
  • 4.
    WHY WE INVESTEDIN AFLASAFE ALIGNMENT WITH HIL BUSINESS -HIL expanding her portfolio of Crop Protection Products to include biological products HUGE MARKET OPPORTUNITY 8.5m Ha of groundnut and Maize farms in scope - Groundnut production for export – 500,000+ Ha - Feed industry – 750,000 Ha - Commodity Aggregators & Processors – 1.75m Ha - Small Holder Consumption - 6.3m Ha PUBLIC HEALTH CHALLENGE - High aflatoxin levels in commodities - Aflatoxin in Maize >30ppb - Aflatoxin in Groundnut > 70ppb - Aflatoxin in Groundnut Oil & Cake >30ppb CHANGING POLICY ENVIRONMENT Regulatory Agencies paying more attention to aflatoxin challenge - NAFDAC Total Diet Study – 2017- 2018 - FMARD Zero Reject Initiative – 2017 – 2018 - Federal Min of Trade – Nigeria Groundnut Policy - 2019 Drivers of Investment 4
  • 5.
    WHERE WE ARE? 2019202020182017 HIL Joins Aflasafe project HIL-IITA TTLA HIL Acquires Equipment from IITA Plant Completion ❑HIL signs initial Distributorship Agreement with the BiP. ❑2 Clients in the first year – Olam and FMARD ❑Tests market through sales to SHFs ❑Sales to FGN increases ❑New clients e.g Dangote adopt technology. ❑Commodity Associations join list of users ❑HIL drives multi-partner, multi-agency marketing campaign ❑HIL and IITA sign TTLA ❑HIL ramps up sales to multiple clients including AgResults implementers ❑Commences Nationwide marketing campaigns ❑Production of aflasafe based on Toll Manufacturing with BiP ❑Aflasafe Plant completion targeted for March 2020 ❑Increase in demand driven by positive outcomes of trial purchases by new clients ❑Favourable FGN policy anticipated driven by advocacy efforts
  • 6.
    EXPORTS • Export Coys •SHFs • Min. of Trade • Min. of Agric • NEPC FOOD/FEED • Feed Producers • Food Processors • Poultry Producers • SHFs • Grain Traders LOCAL PROCESSORS • SHFs • Commodity Traders • Government • Local food businesses OUTCOMES ❑ 100,000+ farmers reached ❑ Aflatoxin Levels <4ppb across all commercial interventions ❑ 1St EU Export to Spain ❑ Increased Government Procurement ❑ More clients e.g. Dangote Marketing Strategy • Export Oriented Cluster Initiative • Premium Pricing • On-Field Testing • Training • Market Linkage • Business Case Dev. • Industry Meeting • Maize Quality Workshop • Partnerships (CNFA) • Training • Sensitization • Subsidy Schemes • Advocacy • Training
  • 7.
    Results MARKET SEGMENTS DEMANDDRIVER Corporate Clients: Export Firms (Olam) Commodity Aggregators Multinationals (Guinness) Commodity Cooperatives Commercial Farms (Dangote, Infinera etc) • Compliance with Aflatoxin limits by sophisticated buyers e.g. Nestle • Compliance with CODEX Standards for Export • Improve supply of raw materials from supply chain partners Public Institution (FMARD) • Support for FG diversification policy interventions. E.g Zero Reject of Nigerian Exports • Compliance with International standards • Decrease export rejections 98 60 950 391 363 171 0 100 200 300 400 500 600 700 800 900 1,000 2017 2018 2019 Annual sales of Aflasafe (MT) FMARD Corporate client
  • 8.
    CRITICAL MARKET INTEL 8 DemandEnablers Demand Killers Key Take-Aways • Demonstrated Economic value from private sector clients e.g. Acirfa shipment to Spain supported FG Zero Reject Intervention • Enforcement of standards e.g. FG decision to test commodities for strategic grain reserve triggered commodity associations to commence use of aflasafe • Private sector incentives in the form of premium prices encouraged SHFs • Competition between Aflatoxin- binders and aflatoxin-safe maize limiting acceptance in Feed segment • Importation of maize into Nigeria affects price of maize and hinders ability for premium in local processing segment • Mis-alignment of policy and interventions in public sector • Low prices of g/nut in the export market limits off-take of toxin- safe g/nut for export – e.g.Olam • Focusing on sales is not sufficient to unlock demand • Strategic partnership with downstream actors partners is crucial
  • 9.
    Challenges & ProposedSolutions • Joint working committees reflecting PPP towards zero reject of Agricultural produce. • Ease of doing business • Market actors need to offer premium for aflatoxin-safe commodities • Enforcement of standards and grades will justify premium prices • • Testing of aflatoxin levels in grains at all aggregation centers in partnership with FGN, PACA, NAFDAC & Commodity associations. • Adequate provision of aflatoxin testing kits by stakeholders. • Continuous sensitization on the adverse impacts of aflatoxins. • Government subsidy • Market linkage Low awareness among SHFs Low adoption of technologies Weak purchasing power Weak enforcement of national/internatio nal Food safety standards Inadequate access to testing kits and know- how Weak inter-agency collaboration at the national level Poor reputation in the international commodity markets No price incentive for producing aflatoxin-safe crops No grading system that incorporates aflatoxin-standards Challenges AWARENESS REGULATORY INCENTIVE PARTNERSHIP
  • 10.
    Opportunities and Support Foreseeable opportunities to be unlocked:  Increased patronage by multinationals (e.g. Nestle) due to border closure against imported agricultural commodities.  AgResults implementers willing to become HIL’s Aflasafe distributors.  Aflasafe shall become an input to be listed on Central Bank of Nigeria (CBN) Anchor Borrowers for procurement and distribution to farmers.  Support required by HIL:  Seeking support of ATTC on strategies and development tools to unlock our huge market potentials.  USAID on advocacy  Quality assurance support by BiP/IITA.  Access to aflatoxin Testing Kits and training by ATTC/IITA.
  • 11.
    Lessons Learned  HIL’sBusiness Model: Value proposition through demonstration of technologies that impact on Agricultural productivity and quality enhancement  Market: Commodity associations are vital in demonstrating new technologies to farmers in Nigeria.  Partnerships: Government endorsement is key to adoption of new technology in Nigeria.  Production/ Demand: Movement of manufacturing base from IITA, Ibadan to Asese Plant in 2020.  Construction of Aflasafe Plant by HIL in 2019/2020.  Recruitment of more technical staff.  Sustained awareness creation/sensitization.  Engagement of all stakeholders in commodity value chains by HIL. Looking into the Future…….
  • 12.
  • 13.
  • 14.