Provide adequate analysis on the commodity markets; domestic and international as it affects Nigerian Businesses. Thus aiding and informing business decisions

1. FG Approves Funds for Construction of 10 Rice Mills
FMN (Flour Mills Nigeria) wins bid for Concession of Three National Silos
World Bank to donate N8.6 billion to support FADAMA GUYS Program
FG Approves Funds for Construction of 10 Rice Mills
The Federal Government of Nigeria through the FEC has approved the sum of N10.7 billion for
the construction of 10 new rice mills in the country, this move is aimed at further consolidating
the rice self-sufficiency program embarked upon by the Federal Government.
The Minister of State for Agriculture, Heneiken Lokpobiri in announcing the decision indicated
that the 10 rice mills will have a capacity of processing 100 tonnes of paddy per day and will be
managed by private rice millers. Furthermore, the Minister stated that the rice mills will be
handed over to the private millers who will then pay back within a given time frame as agreed
upon between the Bank of Agriculture and the beneficiary rice millers.
This development is poised to raise the bar in the rice milling industry as other firms are also
trying to raise their daily production to about at least 100 tonnes and this might pose some
challenges to small scale millers who process less than that quantity as economies of scale begin
to creep in.
FMN Wins Bid for Concession of Three National Silos
Flour Mills of Nigeria over the week has informed investors that one of its subsidiaries had won
the bid for the concession of three silos put up by the Federal Ministry of Agriculture and Rural
Development, FMARD. The firm confirmed this in a message to investors where it also stated
that works on the Fertiliser Blending Plant were now at advanced stages as significant strategic
investment has been put in place.
Information from relevant sources also has it that other companies like Olam, Chagoury,
Livestock feeds and Tiger Brands are also vying for the bids.
It would be recalled that FMN has just opened a multi billion naira sugar estate in Niger earlier
this and the spate of the investment noticed in the agriculture sector is indicative of massive
expansion by the industry giants.
World Bank to donate N8.6 billion to support FADAMA GUYS Program
The World Bank has indicated its willingness to donate N8.6 billion to the accomplishment of
the FADAMA Graduate Unemployment Youth Support Scheme. Mr. Kwaji Daguru, Chairman
of the FADAMA GUYS program gave this announcement in Abuja on Tuesday.
Researched and Designed
By
Ogunbiyi Yusuf
Universityof Ibadan
Agri-Intelligence Weekly
April 30, 2018|Issue 6

2. Mr. Kwaji indicated that the disbursement will be made through the FADAMA III Additional
Financing program. He further stated that the program is to target 5,919 youths and will be
implemented in 23 states of the federation. The states include; Abia, Adamawa, Akwa Ibom,
Anambra, Bauchi, Bayelsa, Benue, Ebonyi, Ekiti, Jigawa, Katsina, Kebbi, Kogi, Niger, Ogun
and Ondo, Osun, Oyo, Plateau, Sokoto, Taraba, Zamfara states and the Federal Capital Territory,
FCT.
Mr. Kwaji also noted that the phase one of the program is to gulp N8, 675,013,679.12 to fund the
plans submitted by the participants and subsequent phases of the program will be subject to the
availability of funds.
CommodityPrice Updates23 April – 27 April 2018.
Week Commodity Average ($) Change (%)
AprW4 Cocoa 2724.321
0.36
AprW4 Sugar 11.372 -4.97
AprW4 Soy bean 212.543
-0.85
AprW4 Maize 204.884
-0.44
AprW4 Wheat 188.785
0.31
1
ICCO Daily Prices
2
ISO Daily Prices
3
IGC Soy bean Sub Index
4
IGC Maize Sub Index
5
IGC Wheat Sub Index
Cocoa Rally Continues
Cocoa prices continue to make the skyward movement in the week under review as fears of
reduced supply continue to feed into the market. The prices of cocoa on the New York and
London Exchanges reached yearly highs within the week and the ICCO daily price also reached
the peak of $2745 on Wednesday before easing slightly on Friday, closing day of the week. The
most obvious of the reasons for this rally continues to be the expectation off reduced harvest for
2017/2018 harvest period. Meanwhile, delegates at the world cocoa conference held in Berlin
over the week also reiterated the huge need of farmers to bepaid more than what they receive at
the moment in order to ensure decent livelihoods for the farmers. Experts also pointed out that
the present cropping regime in most farming is not sustainable as farmers will have to diversify
their crop base in order to be able to survive ultimately.
Sugar Follows Gravity Further
Times are incredibly hard for sugar prices as the commodity continues to plunge. The prices of
sugar an all year low during the week with prices reaching 11.14 cts during the week. The prices
of sugar fell by 4.97% wow amidst the supply excess that was available in the market. Following
an unusual twist, processors in Brazil processed more than expected cane into sugar, beating

3. investors’ estimates and further worsening the supply situations. Interestingly, demand for sugar
is not expected to ramp this year and as such supply excesses are expected to spill into next year.
Grain, Mixed Stories
The prices for grains (wheat and maize) and oil seeds took a mixed outcome for the week under
review. The IGC sub indexes for maize and soy bean dropped marginally by 0.44% and 0.85%
wow and the wheat sub index gained by 0.31% in the week under review as well. However,
issues concerning the brooding trade dispute between China and the United States of America
are expected to affect the prices of soy bean in alternative markets such as Brazil and Argentina.
Also, worries over sowing of wheat in the USA are also a significant points to watch out for on
the horizon.