Youth with ‘swag’ can succeed in Agriculture

By Kofi Adu Domfeh, Luv Fm, Ghana

Cynthia Mosunmola

Cynthia Mosunmola Umoru is a young Nigerian lady passionately driving the beauty in agriculture in her home country. Proud to be a farmer, she’s got her swag – twitting @PrettyFarmer on her sleek tablet.

Cynthia produces food to feed her nation, and delights in inspiring other young persons to take up a profession in agribusiness.

Her company, Honeysuckle Ventures, distributes livestock produce to fast food companies and restaurants in Lagos and one of her farms is used for research and training of young farmers in the agri-food sector.

For Cynthia, it is critical that women and the youth focus less on the drudgery of agriculture and rather focus on the opportunities therein for financial independence and the nutritional security of families.

“If people are concerned about the quality of the food that they eat, they should be concerned about the quality of the produce that comes out of the farm…it means that we need to be involved” she noted. “Now if as women, as young people we love to eat, wear cloths, we love to spend money, then I think it’s critical that we begin to look closely at the agric sector”.

Cynthia inspires her peers not only in Nigeria but others of Africa to venture agriculture, a profession often perceived to be unattractive to today’s African youth.

“I think that people need to begin to look at the brighter side and then appreciate agriculture for what it is – a wealth creating platform. This is one sector that singly is capable of creating total employment across its value chain”, she added.

In Ghana, the government’s Youth in Agriculture Programme (YIAP) was established to increase employment opportunities and incomes, encourage entrepreneurship, and upscale food production.

With the average national farmer age at 55 years, the programme seeks to increase productivity in agricultural sector by tapping into the energy of the youth who compromise about 30percent of Ghana’s active population.

According to National Programme Coordinator, Alhaji Adam Mahama, the Ghanaian youth are interested in venturing agriculture but financial constraints remain major obstacle.

“My office, on daily basis, is filled with applications, proposals from youth, university graduates – both male and female – who are interested in going into agriculture but I’m constrained by funding”, he stated.

Alhaji Adam estimates that a minimum of Gh₵10,000 ($5,000) is needed to support a university graduate to be able to take off into full-time agriculture, but such funding is not readily available.

He however does not subscribe to the establishment of a fund by government to be accessed by the youth “because immediately government takes too much interest in funding such things, people don’t want to be independent”.

Hence, government should provide the farming inputs whilst the private sector is engaged in providing financial packages for such agricultural ventures, he opined.

“If a package is made in such a way that they take the money from the banks that they can use and pay back to the banks [and] account to the banks, then they’ll learn to be independent and good private sector”, noted Alhaji Adam.

Private sector agribusiness players believe the public-private partnerships are important to drive young people into agribusiness but this, they say, must be devoid of politics.

Prince Obeng Asante, Deputy Managing Director of Ghana Nuts Company, says concepts geared towards youth employment must move from a political platform to a pseudo-business organization for the private sector to buy into them.

“It should be partnership which is built on rock, not on sand which can easily be washed away when the political season comes to an end”, he observed.

Ghana Nuts is a leading agro processor, manufacturer and exporter of a gamut of edible oils, animal feed input materials and Shea Butter.

The company has been supporting the agricultural project under the National Service Scheme and recently received 4,000 bags of yellow maize from the NSS Wenchi Farm to produce feed for the local poultry industry.

The NSS project is making some inroads with an expected harvest in excess of eight metric tonnes of maize by end of 2012 from the combined 2,120 acres it is farming in five regions.

It is early days yet to ascertain what percentage of the young national service personnel engaged in the NSS agric project would opt for full-time ventures in farming or agribusiness at the end of their service.

But Prince Obeng says there is the need to critically show young people that agriculture could provide a dynamic and productive future for them.

Young people who see the profitability in agriculture will naturally move into the sector, he said.

“The cost of production vis-à-vis the revenue has been the major bottleneck; the guy is spending Gh₵1,000 per hectare and the revenue coming from it is Gh₵900, why do you think the youth will be there?” queried Prince. “But if today we say that you spend Gh₵1,000 but your revenue is Gh₵2,000, so the [profit] margin is Gh₵500, I tell you even the dead will resurrect and go into agriculture”.

To set the agenda right, Cynthia Mosunmola Umoru, who is currently a Youth Consultant to the African Union Commission, has emphasized the direct engagement of the youth in agricultural policy formulation whilst providing avenues for the youth to access mentors and role models to success in agribusiness.

Already, youth in agriculture is one of the driving issues on which the United Nation’s Food and Agriculture Organization (FAO) focuses its work.

“Granted that there are a lot of countries benefiting from oil and natural resources, but most of the countries in Africa today are primarily agriculture-based communities, so when you think about the future of agriculture you should start with the source which is the young people of Africa”, said James Tefft, Senior Policy Officer, FAO Regional Office for Africa.

He wants the subject of young people in agriculture to be embedded within national policies in the implementation of the Comprehensive Africa Agriculture Development Programme (CAADP) of the New Partnership for Africa’s Development (NEPAD).

He says investments in the agricultural sector should be about the people and integrating youth in agriculture is essential in addressing the demographic challenges.

“The policy framework in Ghana with respect to METASIP exists but we need to get into the specifics of how these partnerships between public and private actors actually take place… we need the young people, civil society [to be] engaged in the process. So to move forward, we need to move into the specific of the dialogues at very decentralized levels”, said James Tefft.

The Ghanaian government developed the Medium Term Agriculture Sector Investment Plan (METASIP) to implement the Food and Agriculture Sector Development Policy (FASDEP II) over the medium term 2011-2015.

Whilst expecting agricultural policies to be youth-centered, there is the potential for women and young people to strategically plug into the sector by “unlocking their minds and view agriculture as a business; it is not just about farming and tilling the soil – there is processing, packaging, distribution, cold storage, marketing – the opportunities across its value chain is enormous”, said Cynthia Umoru.

Transforming mindsets are the core values of the AgroMindset Organisation, which is educating a new generation of entrepreneurial minded agriculturists in Ghana.

“Our idea is using the bottom-up approach to transform youthful thinking from fork (state of consumption) to field (state of activity and productivity), and so we seek to introduce the concept of agric entrepreneurship to young people right from childhood”, said Founding Director, David Asiamah.

The Organization seeks to erase negative perceptions about farming, showcasing that it can bring people great wealth and prosperity, through strategies like organising the Agro Summit and Agro Tourism events, embarking on outreaches, undertaking Green projects and promoting agribusiness, innovation and entrepreneurship.

“We have visited over 5000 young people in basic schools and our meetings attract interested students and industry experts to learn and share ideas at the same time churning them into entrepreneurs”, he said.

Without a clear policy strategy for engaging this rising group of rural youth, Africa’s leaders and the development partners that work with them risk creating an economic time bomb for their successors, warned David Asiamah.

Can smallholder farmers transform Africa’s agricultural output?

Mohit Arora believes that small-scale farmers can play a central role in boosting African agricultural output.

Much has recently been written about Africa’s agricultural potential. It is estimated that over 60% of the world’s available and unexploited cropland is in sub-Saharan Africa. 

The continent’s agricultural sector, however, faces various challenges – from insufficient irrigation systems and use of fertilisers, to poor storage and transport facilities leading to post-harvest losses.

The vast majority of African farmers are smallholders. However, recent years have seen increased investment in large-scale commercial projects. But should African agricultural development be driven by commercial farmers or smallholders?

Mohit Arora, head of agriculture at Standard Bank Africa, believes that with the right support, smallholder farmers could transform Africa’s agricultural output if they are integrated into a free market and financial system supported by appropriate legal systems that address land rights and contractual rights.

In an interview with How we made it in Africa, Arora used the example of India, where the government prioritised smallholder farming. The government provided a market mechanism where smallholders were treated fairly. “That meant that any trade between a farmer and any other counterparty had to be verified by the government.” A minimum price for certain key commodities were also guaranteed. In addition, Indian banks were incentivised to lend to the agricultural sector. These measures transformed India from a country unable to feed itself, to an agricultural powerhouse that not only has been feeding well over billion people for a few decades but will export US$10bn of food this year.

According to Arora, besides government intervention, smallholders can also be supported through microfinance.

In addition, Africa’s smallholder farmers should be assisted through extension services and improved technology. “Attention to extension services is not quite up to the level that it should be. Meaningful contributions from the government is to get extension services going, basic extension services – help the farmers get their financial planning right, what commodities are they going to plant … African agriculture doesn’t really need high-tech technology – it needs basic technology at this stage,” explains Arora.

“If you look at the south of Brazil, tobacco farmers don’t have more than 10 or 20 hectares… and Brazil is a tobacco powerhouse. In India, 80% to 90% of the farmers are smallholder – and India is one of the world’s top producers in many commodities… An interesting one in India is milk. The majority of the farmers do not have even more than a few cows, [yet] India produces the world’s largest amount of milk,” he says.

Many opportunities, but challenges remain
“Africa is turning out to be a gold mine of opportunities,” says Arora. “All the categories of the value chain are growing.”

However, Standard Bank faces various challenges in servicing the continent’s agriculture sector. One of the key challenges include financial and market risk management by the bank’s agriculture clients.

“As banks get involved, they expect the financial management to be of a certain level to be able to get comfortable and lend. A lot of lending is happening, but banks can do much more if clients organise themselves in a manner that is more conducive to financing by major banks. We often aim to not just lend but advise the client on enhancing their financial and risk management practices so that they effectively access wider financial markets as they grow.” says Arora.

Grooming talent, particularly by providing staff with continent-wide exposure, is also not easy as moving people across Africa can be a challenge. “As Africa is moving towards trade integration it needs to look at easing the flow of people to support trade (in line with people policies within trading blocks of the EU, Latin America and the Middle East).  We can actually do a lot more if we can rapidly develop talent … It is not easy to move people across countries. Even within the trading blocs, it is not that easy to move,” notes Arora.

Africa has got its work cut out when it comes to agriculture, but Arora believes that governments are generally steering the sector in the right direction.

He reckons more needs to be done to build awareness about the positive things happening on the continent. “A lot of brilliant things exist in Africa, but it doesn’t market itself that well… In countries like Ghana, Zambia, they are doing some really brilliant stuff in agriculture. Awareness particularly in the Western markets is building, but it is not quite at the level that it should be.”

Source: How We Made It in Africa

Every drop of Water counts for Africa Farming

By: Elspeth Bartlet, Green Ink

The challenge of managing Africa's water more efficiently and allocating it more fairly was one of the topics for discussion at the recent Every Drop Counts conference. Green Ink's Elspeth Bartlet considers the implications for agriculture. 

Africa's demand for water is rising fast.

©FAO/Olivier Asselin

 Africa's demand for water is rising fast, as population increases, and urbanisation, economic growth and climate change combine to exert ever-increasing pressure on dwindling supplies. Water shortages already threaten food production in many African regions, while the lack of clean water and sanitation leads to 1.5 million deaths a year from diarrhoea and cholera. Yet Africa has substantial water resources: its shortages are often the result of poor water management, low investment, inefficient use and wastage. Agriculture is a primary water consumer and pivotal to the debate. How can the needs of agriculture be met as it intensifies to feed a growing population? What contributions can a more water-efficient agricultural sector make to African water security?

As demand for water grows, major water management decisions increasingly need to be made at the river-basin level, but this is not easy in a continent where 90 per cent of the available water is in river systems that straddle country boundaries. Agreement at the trans-national level is needed to avoid conflict over water and to balance the demands of agriculture with those of industry, energy and consumers. The most effective dialogues seem to be those that form part of a wider foundation for cooperation and integration. For example, Lake Victoria's water is relatively well managed, with the support of policies set by the East African Community (EAC).

Improving infrastructure

Africa's infrastructure for managing water lags way behind that of other regions. Irrigation is a prime example: only around 5 per cent of cultivated land in Africa is irrigated, compared to 40 per cent in Asia. A CGIAR Research Program on Water, Land and Ecosystems was launched in March, with a target to bring irrigation to millions of households in sub-Saharan Africa. "Irrigation offers huge scope for intensification of agricultural production in Africa," explains the program's director Simon Cook. "Shallow groundwater for irrigation is available over large areas of West Africa and surface water is available in parts of East Africa. But to be sustainable we have to ensure that development is balanced, that societal norms are protected, and that environmental needs are respected."

 Major water management decisions increasingly need to

 bemade at the river-basin level. © FAO/Giulio Napolitano

Large-scale public projects are far from the only way to improve water management. Much can be done at the farm or village level, arguably with better, and faster, results. The use of small-scale water collection and storage, known as water harvesting, gives farmers more control over their water supply. Modern technologies, such as the delfino plough, can be used to scale up traditional water harvesting approaches. "The dramatic gains that can be achieved with the delfino plough make it a deserving case for 'smart subsidy' by governments," says Ola Smith, formerly with the region's Desert Margins Program. 'Goutte-à-goutte' or drip-irrigation systems are highly water-efficient and have underpinned the development of vegetable gardens in Mali, Senegal and Burkino-Faso. Water run-off or evaporation can be reduced by optimising soil health and minimising soil disturbance with approaches such as conservation agriculture, used for example in Zimbabwe and Zambia.

Choice of crops and need for loans

Choosing the crop that delivers the best return on the water available is a key decision for farmers. Climate change is increasing the need for varieties that can make the most of low or unreliable supplies. Chickpea, pigeon pea, pearl millet, sorghum and groundnut are species that are already adapted to tolerate hot and dry conditions. However, plant physiologist Vincent Vadez of the International Crops Research Institute for the Semi Arid Tropics (ICRISAT) believes they can become even more water efficient. "We have been screening our collections against combined heat and water stress and found a wealth of genetic variation across the dryland crop species," he says. "We think there is a mechanism that contributes to the plant's water conservation, which is only switched on when needed. It can lead to large yield differences in different crops." Crop scientists are also working on the major cereal crops; for example, the International Maize and Wheat Improvement Center (CIMMYT) and partners are developing fast-growing, drought-tolerant varieties of maize, currently being trialled in East and Southern Africa by the Water-Efficient Maize for Africa project.

Attracting suitable investment is crucial to improving African water management. In Kenya, investment in water infrastructure has moved up the national policy agenda over the past four years. "The government in Kenya have realised the importance of making water a priority," says Charity Kaluki Ngilu, Minister of Water and Irrigation. "I've seen the budget go up nearly ten times. At the moment we have over US$500m for water." But governments and donors alone cannot provide all the investment needed to improve African water management. "Financial sustainability depends on appropriate combinations of all available sources of funding," says Monica Scatasta from the European Investment Bank. "Loans, possibly 'blended' with grants, spread the cost of investment over time. But their financial costs and the cost of operation, maintenance and infrastructure renewal can only be recovered from a combination of tariffs, budget transfers and grants. 

Water tariffs are sometimes controversial, but they play a role in ensuring the long-term sustainability of water and sanitation. However, proper consultation and regulation is important to ensure affordability through appropriate tariff structures or separate income support targeted to the poor."

At the Every Drop Counts conference, agriculture was identified as the sector where Africa can make its biggest water savings. Some of the measures discussed are difficult and controversial but, when every drop counts, Africa needs to consider all the tools at its disposal.

Developing innovation systems for African agriculture

This policy brief, published by the Comprehensive Africa Agriculture Development Programme (CAADP) at the Future Agricultures Consortium, examines how an African 'green revolution' could be underpinned by the development of innovation systems rather than technology transfer.

While science and technology (S&T) is widely seen as key to advancing the continent's agricultural productivity, policymakers and institutions have largely focused specifically on delivering technology to farmers, rather than wider S&T initiatives. But inclusive agricultural development has been difficult to achieve through market-led approaches. 

This brief draws from research to look at alternative innovation systems, how such systems can benefit the poor, and what changes are needed to realise sustainable agricultural development.

It highlights an alternative approach — Agricultural Innovation Systems (AIS) — which focuses on strengthening the capacity of smallholder farmers to innovate, and recognises the need for a continuous process of innovation. 

'Enabling Rural Innovation', an initiative that promotes agricultural market access for poor and marginalised groups, particularly women, is one example of how a participatory approach has been used to create an entrepreneurial culture in poor economies and improve farmers' decision-making capacity. The initiative has revealed barriers to market access for women and the poor, and the need for stronger input from research and policy.

A different approach ('Zooming-in,  Zooming-out'), which focuses on communicating fresh ideas and educational tools about agricultural innovation, rather than supplying ready-made technology, shows that experiential learning can work, says the brief,  but requires more support from research centres. 

The example of seed systems also shows that efforts to develop African agriculture rely on technology over innovation systems. Formal seed sources, such as gene banks and commercial companies, marginalise informal sources, like farmers saving and exchanging their own seed in local markets, for example. These informal sources are an opportunity to link formal system technology with local innovation systems. 

The brief concludes that alternatives to market-led technology transfer can be developed, creating opportunities for small farmers — including women — to participate in innovation, research and farmer organisations. But to be successful, alternative innovation pathways require policy changes to promote better collaboration between stakeholders and a strengthened role for the public sector. 

This policy brief was written by Kate Wellard Dyer for the Futures Agricultures Consortium.

Rural Dwellers must adapt to Climate Change, says workshop

ABIDJAN -  Researchers in Côte d'Ivoire have called for villagers across the region to be made aware of the negative effects of climate change and encouraged to pursue adaptation measures. 

 

The calls came at a workshop held at the Regional Unit of Higher Education of Korhogo, in the north of the country earlier this year (18 May), at which researchers presented recent work on the impacts of climate change in the region. 

"Data from 1970–2000 show that rainfall during the period decreased by about 12 per cent in northern Côte d'Ivoire," Bama Koné, coordinator of the research, told SciDev.Net. He added that annual temperatures increased by almost one degree Celsius during the same timeframe.

Koné said that the rainy season has shortened, while the dry season has become longer. 

"Conditions in the region have become harsher and longer, vegetation has been damaged, many species are endangered, and many rivers and streams have dried up," he said. 

More than two thirds of farmers have experienced a decline in crop productivity — particularly of highly prized crops such as sorghum, yam and millet — while 60 per cent have had their farms flooded during the rainy season. 

Traditional practices have also been affected. For example, traditional doctors have been affected by the paucity of medicinal plants. 

According to the deputy mayor of Korhogo, Salimou Coulibaly, villagers sow crops such as cotton, maize and rice, according to the lunar month. When the rains do not come, they worship fetishes and pray in mosques, all the while ignoring the negative effects of climate change, Coulibaly said. 

Sidiki Cissé, director general of the National Agency for Rural Development (ANADER), is clearly concerned. "The despair of farmers is evident. Many farmers feel clueless about the [growing] uncertainty of the seasons." 

Marc Kouame, a farmer — from northern Cote D'Ivoire — who cultivates okra, peanuts and cassava, said: "Because of the changing seasons, last year I lost half my peanuts. I had not planted them at the right time". 

Coulibaly said that he hoped the results of the study would be disseminated to villagers to encourage them to change any negative habits and adapt to climate change. 

Changes in practice recommended by the researchers include the reduction and regulation of charcoal production, sensitising people about the need to protect forests, encouraging reforestation, and digging clean water wells, in conformity with draining and hygiene standards.

Marketing dilemma of the Ghanaian Farmer

By:  Felix Appiah-Ankam / CIGMAG – Assin, Central region
        feliangh@gmail.com / assincigmag@yahoo.com

"A soldier walks on his stomach", so the popular adage goes. Similarly, "a hungry man is an angry man". The computation of these two noble sayings goes to conclude that farming is the strength of almost every nation on the earth regardless of their status quo, of either being a developed, or, a developing nation. It is however harrowing to notice the lack of interest in farming by the Ghanaian youth with the covert disrespect for farmers by governments who have over the years paid only lip service to these farmers without helping them make any meaningful gains with the exception of a few who happen to produce cocoa especially.

The backbone of the African economy in general, and that of Ghana in particular, is agriculture. Agriculture accounts for about 30 per cent of the nation's GDP though a large chunk of it is from cocoa to the neglect of other crops especially the abundant citrus in the country which can equally fetch the nations millions of dollars if proper attention is accorded it.

The Ghanaian farmer will appreciate a subsidy on their farming equipment and the facilitation to the market for their produce than assisting in non-beneficial public holiday (National Farmers’ Day). In the absence of capital intensive or mechanised farming in Ghana, our old stumped subsistence farmers are able to produce almost enough to feed the nation. However, their aspiration to better their lives through farming always hits the rocks. In a year of abundant produce resulting from favourable weather conditions, the Ghanaian food stuff farmer runs a heavy financial loss let alone breaking even or making any profit. This is the sad predicament of farmers. We cannot find buyers who will even be ready to offer a purchasing price far below the production cost. The produce goes rotten without any form of compensation from any quarters to the farmers.

For citrus farmers in the Assin area of the Central Region overabundance is not a gift, but a burden. The Burkinabes, who were the only vibrant external market for their citrus have, for strange reasons, been stopped from coming to Ghana to purchase the oranges. Since then, the Ghanaian market is so saturated with oranges that nobody buys them any longer until lately (which is good news). The Ivorians and Malians have started coming to buy some of the oranges while local fruit juice manufacturing companies (who are struggling to operate at full capacity due to high cost of production) also purchase some. The sad news is farmers still gets about 30% of their citrus going waste because these marketing avenues are not enough to absorb all the oranges harvested every season. For nearly the GHC 9,000 annual expenditure on ones' farm paying the workers’ wages and buying insecticides and herbicides if in the end there is not a pesewa in return, the person is sure to go ballistic. This is why citrus farmers in particular and Ghanaian farmers in general are calling for pragmatic approach by various stakeholders in solving their myriad of problems, marketing being particular.

The citrus farmers have of recent years become victims of the policies of government which were meant for their good. A classic example is the Ghana School Feeding Programme (GSFP). The school feeding programme is an initiative of the Comprehensive African Agricultural Development Programme (CAADP) Pillar III and part of government’s efforts to attain the Millennium Development Goals (MDGs) One and Two, which seek to eliminate extreme hunger, poverty and achieve universal basic education. The programme commenced in 2006 with support from the Dutch Government to reduce poverty in deprived communities for Ghana. Though the main idea was to provide market for local farmers in the communities where the programme operates, this has not been the case for most commodity groups since most caterers buy their supplies from other parts of the country to prepare meals for the school children.
The issue is especially worrying in the Assin area where the caterers could have bought citrus from the farmers. These caterers either do not buy the oranges at all for the school children or rather buy from the market women, who do not necessarily buy from farmers in the Assin area, at a higher cost to the detriment for the local farmers. This defeats the very purpose of the GSFP.
A research conducted by Citrus Growers and Marketing Association of Ghana (CIGMAG – Assin Chapter) with funding from the Business Sector Advocacy Challenge (BUSAC) Fund indicated that most stakeholders in the GSFP in the Assin area approve of the provision of citrus compared to other fruits (such as banana and pineapple) for pupils because of its abundance in the area and its cheaper cost in relation to other fruits stated above. The only bottleneck as the captured by the research was funding. The programme handlers contend the current funding (Gh40p/head, tax inclusive) makes it virtually impossible to add citrus to the meal though I am tempted to disagree with them to some extent.

Let consider the current market price of GH¢5.00 for 100 oranges (which translates to Gh5p/orange). Can someone tell me it is impossible to include citrus in the meal of school children under the programme in the country? Absolutely not! I believe these farmers will be more than willing to cut down the price knowing very well that this is a viable market for their produce which goes to waste every season.

I strongly suggest that government takes a second look at the programme to remove all bottlenecks that militate against providing market for produce of local farmers especially citrus. Such bottlenecks include inadequate funding and lack of monitoring to ensure caterers buy from local farmer in the areas they operate. I believe the fortunes of farmer across the country would change if remedies are found for these bottlenecks.

As a long term approach I suggest whatever problem that culminated in the stopping of the Burkinabes from coming into Ghana to trade in oranges is re-examined. There could be an effective way of dealing with the problem other than a total ban where the farmers are made to suffer such financial losses without any sort of compensation from the government. We need all marketing avenues that would auger well for these farmers. It is sad to note that some farmers have either abandoned their farms or started chopping down their citrus crops to plant palm in their stead.

The citrus farmers need more factories built in the country to guarantee them an assurance that their efforts will not be in vain. The Ghanaian farmers need subsidies. They need compensation. They desire silos and other storage facilities built for the storage of their cereals, citrus and other agricultural produce. We need our scientists to come up with practical solutions to our food insecurity and to push mother Ghana forward.

African Agribusiness: 9 specific Investment opportunities

Many African brewers have started producing beer with sorghum instead of barley. This creates opportunities for sorghum producers.

There has been much talk about the potential for investment in Africa’s agribusiness and food industries. But what are the particular opportunities? In a recent report the United Nations Development Programme (UNDP) revealed nine specific investment options for business people and entrepreneurs.

1. Fruit juice concentrate processing facility in Nigeria

Around 90% of the fruit juice produced in Nigeria is based on concentrates imported from abroad. Nigeria’s fruit juice market is projected to be worth more than US$2 billion per annum. Interested investors could have discussions with established fruit juice producers such as Coca-Cola Nigeria and Chi-Nigeria to investigate their quality specifications, volumes and potential prices.

2. Cassava value chain investment

While cassava is one of Africa’s main staple foods, the opportunities for the crop in ethanol, bio-fuel, processed foods, industrial starch and pharmaceutical applications have not been exploited. There is a huge market for starch in Nigeria and other countries, with strong demand from textile and food processing companies. Currently Nigeria’s local textile industry and food companies import over 90% of their starch requirements.

“One weakness along the cassava value chain is the absence of in-country large-scale cassava processing facilities, which could turn cassava from subsistence use into industrial use,” notes the report.

3. Cultivation of soya bean and other oil seed plants

“Soya bean has become a strategic commodity for sub-Saharan African countries,” says the UNDP. The crop’s importance in the food, animal feed and edible oil industries have grown in recent years. Sub-Saharan Africa however contributes only 0.2% to global soya bean output.

Africa presently has a large demand for soya bean related products – including soya cake and soya oil. BIDCO, a company with a presence in a number of east African countries, could process an additional 30,000 tons of soya beans using its existing processing capacity.

According to the UNDP, the demand for crude palm oil is even higher than that of soya beans.

4. Sorghum production

Sorghum has evolved from a commodity for subsistence farmers into a popular household and industrial crop. East African Breweries, Nigeria Breweries and Ghana Breweries have started using sorghum for beverage production. The report notes there are currently opportunities for the private sector to invest in sorghum production expansion and mechanisation.

East African Breweries is currently seeking farmers to produce sorghum on contract to reduce its reliance on more costly barley. It is expected that by 2015, demand in Nigeria for domestic use and exports to neighbouring countries will reach over 980,000 tons.

5. Intensive production technologies for fresh vegetables

Aubergine and Onion garden, Accra.

© EnterpriseAfrik

The growth of modern supermarkets in Africa coupled with urbanisation and a rising middle class, has led to a high demand for quality vegetables that can be obtained using intensive production technologies.

Earlier this year How we made it in Africa reported that in some places in Africa, fast-food giant Kentucky Fried Chicken (KFC) doesn’t serve lettuce on its burgers. This is not to save on costs or due to a difference in local tastes, but rather because there are no local lettuce producers who can supply the quantities and quality required by KFC.

The use of intensive production technologies has transformed the horticultural industry in Kenya. West Africa holds considerable potential for the introduction and commercialisation of intensive vegetable production systems.

“The investment opportunity does not only reside in production but a strategic and integrated approach to market production equipment, transfer technologies and provide market linkages for producers,” says the report.

6. Production of milk powder in west Africa

West Africa Milk Company (WAMCO) currently imports 90% of its milk powder. Imports of milk powder into west Africa is estimated to be over US$2 billion per year.

Milk yields are low, quality is poor and supply is inconsistent. Processing facilities are required to process fresh milk into powder and provide the intermediate product (powder) imported by the multinationals for tin milk production.

7. Aquaculture

“Nigeria alone imports over US$900 million worth of fish annually. Ghana and Senegal spend over $100,000 annually on fish imports. Almost every country in west Africa is embarking on aquaculture and incentives packages have been designed to attract investment. Investors have immediate domestic and regional markets to supply,” says the report.

CHI Limited has started with a large aquaculture project in the Nigerian city of Ibadan although this project will account for less than 2% of the country’s total demand.

8. Equipment leasing

One of the greatest challenges facing African farmers is a lack of farming equipment.

A solution is a private sector led centralised equipment hiring model – especially for tractors. Although governments have been involved in such initiatives in the past, it has in many cases not proved very successful.

“Such operations led by the private sector are expected to ensure sustainability, efficiency and free government funds for infrastructure development. Private sector agribusiness men in Nigeria are keen on investing into such a model,” says the report.

9. Market centre infrastructure investment

Whereas the larger players have the necessary infrastructure and logistics for their operations, many smaller agribusiness and food companies don’t have access to quality warehouses, cold store facilities and loading machines. This has resulted in fire outbreaks, high post-harvest losses and food safety concerns.

This situation provides an opportunity for the private sector to get involved in the modernisation of local market centres.

Source: How We Made It in Africa

Saudi Investment in African Farmland

Saudi Arabia is investing in agricultural land in Africa as the state’s local crop production diminish.

Saudi Arabia has a major problem with water scarcity and only 1% of its land is suitable for agriculture.

“Saudi investors have reportedly planned or concluded investments covering 800,000 hectares of land in Africa (accounting for almost 70% of all large deals struck by Saudi firms globally),” says Standard Bank in a recent report.

But why Africa, and what are the opportunities and problems Saudi investment in Africa might catalyse?

The Saudi agriculture problem

Saudi Arabia is approaching a food production crisis that is a major problem for its growing population that is consuming more food. “Local poultry production in 2012 is likely to be almost 800,000 tonnes lower than consumption, while wheat production will be deficient by around 1,800,000 tonnes and maize by 1,880,000 tonnes,” notes Standard Bank’s report. Saudi Arabia’s water scarcity is also problematic, with water consumption having more than doubled since 2006.

This has led to the Saudi government deciding to phase out local wheat production. By 2016 it will no longer purchase locally-grown wheat. The country is already estimated to import around 2.5 million tonnes of wheat between 2012/2013, and this is expected to increase to 3.3 million tonnes annually in the coming years.

However, relying on food imports is not ideal, with the country becoming vulnerable to unstable global supply and costs.

The solution: invest in foreign agricultural production as a “means to ensure a long-term, reliable supply of stable commodities,” says the report. It is because of this that the “Saudi government established the King Abdullah Initiative for Saudi Agriculture Investment Abroad under which large Saudi agribusiness firms are provided with credit, as well as strategic and logistical support to invest abroad”.

The Africa solution

With 60% of the world’s uncultivated arable land being in Africa, it’s no wonder that Saudi Arabia has an eye on the continent, with almost 70% of all concluded and planned investments in offshore agriculture being in Africa.

“Factors considered in identifying suitable host countries for agricultural investments include the availability of resources and infrastructure, political and socio-economic stability, and favourable relations with the Saudi government,” notes the report. “Under this initiative, bilateral government-to-government deals can be struck which allow more fluid access for Saudi firms in target markets.”

An example of a Saudi investment in agricultural land in Africa is the Ethiopian government leasing 10,000 hectares to the Saudi Star Agricultural Development in 2008. The company has plans to acquire another 290,000 hectares of land.

“A guiding principle of the initiative is that the investor must have the right to export at least 50% of the farmed produce to Saudi Arabia,” says the report. “The primary products targeted are wheat, barley and maize.”

Weighing up the pros and cons for Africa

Africa needs investment for the improvement of infrastructure and to boost employment opportunities and skills development. Agricultural investment by Saudi firms could help with all these things and more.

However, Standard Bank points out that attention needs to be given to the possible negative ramifications. “Under-selling of agricultural assets (both land and, perhaps more critically, water) remains a profound threat. Meanwhile, as large tracts of land are sold or leased off to foreign investors, the social strains brought about by the relocation of local inhabitants has the potential to be deeply destabilising.”

An ideal investment in Africa’s agricultural land would include directing investment into agricultural infrastructure (such as storage and transport); providing employment and training for local communities; and ensuring that a generous portion of the crops go to local markets. The report also argues that “transparency in the manner in which land deals are struck, and adequate consultation with affected local communities, must be compulsory”.

Source: How We Made in Africa

Attaining Green Revolution In Ghana – The Role of Agra

Human beings depend greatly on grains for subsistence. Grains are man’s source of food and grains are agricultural products. Man does not live on grains alone but on other foods like vegetables, meats and fish to make his meals more palatable. Like grains, these other foods come from the soil, which have to be grown with great care.

Agriculture is the major source of food and the major component of household expenditure. Aside being man’s main food, it also serves as his source of wealth. 

The cocoa, rubber tree and the oil-palm bring millions of cedis to man and the nation as a whole. The agriculture sector also provides the greater number of employments to many people, especially those in the rural settings of the country.

Ghana’s agriculture sector is the backbone of the country’s economy, and smallholder farmers represent about 80 percent of the total agricultural production in the country. However, despite the important role and economic growth the sector plays in man’s livelihood and in the country’s economic development, a lot of these smallholder farmers seem to be living below the poverty line.

In order to complement the Ghana Government’s efforts to help millions of these small-scale farmers and their families lift themselves out of poverty and hunger, the Alliance for a Green Revolution in Africa (AGRA), a non- governmental organization, is working to increase the productivity, profitability and sustainability of these small farms.

AGRA’s programs and partnerships target major obstacles faced by Ghana’s smallholder farmers through improving farmers’ access to good seed, fertilizer, and sustainable farming practices; to credit; to crop storage; to markets; and to strong farmer-based organizations.
  AGRA is five years in its supportive role to helping ensure food security in Ghana and Africa as a whole. As part of activities marking the event, AGRA is organising a national consultative forum titled “Ghana Agricultural Investment Forum” on Thursday, 24th May, 2012 at Alisa Hotel.

With the aim of working to increase productivity, profitability and sustainability of small farms across the agricultural value chain, AGRA is organizing this forum to provide the platform for key government officials, relevant donor partners, actors along the value chain, the private sector and the media to deliberate on how to effectively operationalize African Green Revolution in Ghana and also to discuss Ghana’s readiness to implement a full-scale agricultural green revolution.

AGRA believes that Ghana has the potential to transform its smallholder farming into a commercially viable and sustainable enterprise and is therefore strengthening smallholder agriculture in the country’s potential “breadbaskets.”

In the northern region, for instance, farmers grow 66 percent of the country’s rice and AGRA is supporting these smallholder farmers with the necessary resources to help transform Ghana into an exporter of rice, and free up US$500 million now spent on rice imports. AGRA is also helping private seed companies which multiply and disseminate soybean, sorghum, maize, rice and groundnut to resource-poor farmers in northern Ghana and other areas.

Also, among its numerous contributions to the sector, is the support to the over 2,200 agro-dealers and 150 seed producers across the regions in the country to increase the availability of agro-inputs such as improved seeds and fertilizers for about 850,000 smallholder farmers.

AGRA also established and supports the West Africa Centre for Crop Improvement (WACCI) at the University of Ghana, Legon, a PhD program to offer training to young scientists. The NGO is also supporting an MSc program in seed science at the Kwame Nkrumah University of Science and Technology.

The Ghana Agricultural Investment Forum, AGRA believe will offer the requisite platform for all stakeholders to dialogue on Ghana’s agricultural strategies and to discuss Ghana’s readiness to achieve food sufficiency. The outcome of this forum will complement the efforts of government and all the other actors along the value chain to help improve on the lives of the smallholder farmer and the country’s economic development as a whole.

From: Mrs. Praise Nutakor

World Bank approves $120m for agric production in Ghana, Senegal

The World Bank has approved One hundred and twenty million dollars for agricultural production in Ghana and Senegal.

The funds will promote the use of agric technologies to cope with the increasing demand for food in West Africa.

In a statement issued in Accra, World Baank Director for Sustainable Development, Jamal Saghir, said the programme will increase economic growth, improve food security and reduce poverty.

The statement said while West Africa’s population is set to grow from 300 million in 2011 to about 500 million in 2030, the region was facing the challenge of meeting its food demands.

It said the recent food, fuel and financial crisis had demonstrated the need for West Africa to utilize the region’s agricultural potential.