RABBIT BREEDING: A PROFITABLE BUSINESS

Rabbits are well known for their long ears, fluffy tails, and long hind legs. The domestic rabbit (Oryctologus Cuniculus) is suitable for small/large scale farming. It is easily maintained and require minimal space to manage. The demand on breeding budget is minimal because it thrives on plants and materials that are usually disdained by humans. It utilises coarse vegetation that is high in fibre and other ideal conditions. It can grow so rapidly and its rate is slightly lower than that of a broiler chicken.

The rabbits capacity to breed is legendary. In theory, a single male and five females can produce as many as 150-200 offsprings a year. The meat is pink, delicately flavoured and is usually considered a premium product that provide variety for good diet. It has more protein and less fat and calories per gram than beef, lamb or chicken.

Over the years, the animal protein intake of the average Nigerian is lower than 20 percent of his counterpart in Europe. It will be recalled that the Federal Government incorporated Breeding Multiplication and Demonstration Centres in the Fourth National Development Plan to produce breeders and fryers annually.

Rabbit farming has come a long way. Since the growing need for meat protein, along with the decline in land availability to raise cattle and sheep, it has become a toast among people. One benefit of  rabbits farming is that less land is required to raise them and to feed them also require less green feed production. It is also a solid commercial alternative on providing meat protein in the community at a reasonable price. It is equally creating wealth to the teeming unemployed youths and rabbit farmers.

Benefits of Rabbits Farming

Rabbits are multipurpose animals yielding the following products:

MEAT PRODUCTION : Rabbits are raised primarily for meat production, New Zealand White and California white are the most commonly seen Rabbits in Nigeria. It has a short gestation period, only 30-32 days and therefore literally, a litter is expected monthly. Rabbit fryers or broiler rabbits like the broiler chicks, can be raised to market weight within eight weeks. The meat is high in protein and low in fat and calories. Rabbit fryers attain 1.8kg to 2.04kg within eight weeks and yield a dress percentage of 50-60 ; of which 78 to 80 percent is edible meat. Rabbit meat is highly digestible that is why it is always  recommended for the sick or the recuperating patient. It is delicious hot or cold, fancy or plain, it can be breaded and fried, boiled, baked or barbecued.

LABORATORY USE : Rabbit can be easily kept in comparatively small space and therefore suits laboratory use as animals for pathogenicity test (disease diagnosis) and pharmacological test (drug testing).It is also good for preparation of vaccines, antisera and other roles in nutritional and endocrinological research work in both animals and humans problems.

SKIN OR PELTS: Rabbits skins or pelt are very valuable bi-products. It is the combined value of the meat and skin that dictates the economy of rabbit keeping in some countries. Pelts are use in fur coats and other luxury garment making. While the poor quality fur are use for manufacturing toys, felt hats and lining of men’s and boys’ clothing.

FERTILIZER VALUE : Rabbit manure has very excellent values as organic manure. It is easy to incorporate in the soil and doesn’t burn the plants as such it is a fertiliser of choice which can be applied fresh or dried.

AS PET OR HOBBIES : A rabbit is a social and intelligent animal. It needs companionship, proper diet and proper housing to be happy and live a longer and healthy life. Housing rabbits make excellent pets, particularly in location where people may not have the choice of keeping either Dogs or Cats. Rabbits that receive human handling are very gentle and can be trained to live inside people’s houses.

HUSBANDRY : Rabbits can be housed in hutches ranging from sophisticated commercial cages to simple packing crate with a few ventilation holes and rough troughs for food and water. In all cases, water tight roofing is essential. A floor space of only 0.25m2 is sufficient for one rabbit but about 1m2 is recommended for a female rabbit. Starting small scale rabbit production is generally inexpensive. An almost infinite variety of backyard feeding and drinking equipment can be made from various scrap items, such as old bottle. The main criteria are that cleaning should be easy and spillage minimised. In practice, diets can be based largely on herb age, grass, leaves, legumes, crop residues, and kitchen scraps. However the diets must be wholesome, and caged rabbit  who feed on forage usually need some grain or agricultural bi-products as a dietary supplement. Supplements is particularly important for new born and lactating female rabbits whose diets must contain about 16 percent protein and at least 18 percent fibre. When non commercial feeds are used, salt must be added to prevent salt deficiency because high protein content legumes are better than grass.

Tips to Note on Rabbit Farming

ADVANTAGES : Rabbits as mentions can utilise almost any type of vegetation. Despite their diminutive size, they can collectively produce as much meat per unit of forage as livestock, or even more. There is much genetic diversity, difference in growth rate, fertility, milk production, disease resistance, heat resistance and other features. Rabbits are easy to handle, and can be raised under primitive conditions. They require little financial investment and their husbandry is easily accomplished in the home by women and children. Also rapid reproduction is one big advantage of rabbit rearing.

LIMITATIONS: Tropical conditions  can affect rabbits. They must be protected from heat and rain because stress brought on by high temperature, high humidity and wet conditions can lead to respiratory disorder and even sudden death. Most diseases are caused by dirty or wet cage which lead to diarrhea, sores, mites and ringworm all of which can cause serious losses.

BREEDING MANAGEMENT: Selection of the breeding stock is based on the breeds that are noted for excellent performance. There are many breeders for one to chose from depending on the goal that one set out to achieve. Thus the guiding principles should be; selection of  rabbits that can acclimatised in the geographic area in which the producer operates. All farm animals selected should be from accredited healthy sources with proven records of fertility and sound health. The buck should be free from any leg deformities or sore hocks. Other points to note for selection purposes are:

Breeding age: The age and physical development should be considered when determining the proper time to breed rabbits since individual animals vary in their rate of development. Some rabbits like the Dutch and English attain sexual maturity at 4 months, while the medium weight breeds like the New Zealand red or white ; the California white or Chinchillas etc, attain sexual maturity at six to seven months. The heavy breeds like the Flemish giant mature sexually at 9 to 12 month of age. Once breeding begins at about 4 to 6 or 9 to 12 months, it may continue up to age 4 or 6.

Gestation takes 30-32 days. Females can conceive within 24 hours after giving birth and can produce a litter merely 4 weeks later. With good feed and early re-breeding, 9 or more litters a year is possible. Litter size depends on breeds and body weight. Small breed average 4 young per litter, while larger breeds can attain 8 to 10.  Birth occurs at any time of the year but production slackens when the weather is exceptionally hot. The young remain in the nest until they are 2-3 weeks old, their eyes open at approximately 10 days of age. At six to eight weeks weaning takes place and those weaned are placed in a separate hutch for proper feeding

MARKETING: Business is all about sales, and until you sell your first product you are not in business. The marketing of your rabbit product must be thought through prior to putting up the facility.  The marketability of your product will determine the kind and breed of rabbit you have on your farm and the intensity of production you want to adopt. As a delicacy and cheap source of animal protein, rabbit meat possesses very outstanding qualities above the other meat types because it contains low cholesterol and high protein which is good for heart disorder patients and people recuperating from illness. For easy market penetration you may want to start by educating the community on the health benefits of rabbit meat. Equally making presentations to local organisations such as civic groups  will give profound millage to the marketing effort.

RECORD KEEPING : The success of any livestock enterprise depends on accurate record keeping. Accordingly, accurate records are a must for the improvement of the breeds and for determining the selection of  future breeding stock. Expenses and income records also help to determine profit or loss at the end of the financial year. Above all, record keeping helps  to evaluate management practices that might need to be improved upon.

However, it must be emphasised that accurate record  keeping will result in accurate observations, hence the need for the breeder to be conversant with his stock.

CONCLUSION

Without doubt, a choice of  investment in rabbit breeding has the potential of impacting on the socio-economic well being of the community. The benefits include: wealth creation, employment generation and provision of much needed protein nourishment to the teeming populace. Moreso, your focus and desire in running a rabbit farm must be well articulated, and effort made to ensure consistency in the adherence to the above stated best practices.  Where this is done, success is inevitable. Keep in mind that you cannot do everything in one fell swoop. Whatever your product, the operational principles remain the same and a return on investment is guaranteed.

HOW TO START A RABBIT FARMING BUSINESS IN NIGERIA

by udeozochibuzo

Rabbit farming business in Nigeria can be a very profitable business for any entrepreneur who is knowledgeable in animal husbandry.  Unlike other livestock farming, rabbit business is a low capital investment as it does not require too much money to start up. However, it requires in depth knowledge of the animals, how to raise them and which customers to market to.Every part of the rabbit is useful; the skin for leather shoe and bag making factories, furs for manufacturing clothes, bone for the production of livestock feed , meat for consumption, live rabbits for testing specimens by laboratories. So it is in the hands of the potential rabbit breeder to determine to whom he should sell his rabbits. Hence the target market is high, Do you want to start rabbit farming business in Nigeria? Then, here are basic factors to consider if success is to be attained.Production – Rabbits are polygamous in nature and multiply rapidly. Rabbits start breeding at 4 to 5 months of age. The gestation period for the doe (female rabbit) is 31 days and they give birth to 6 to 10 kits (baby rabbit) at once. Rabbits are able to reproduce seven times a year. For reproduction to take place, the buck and doe be kept together to mate. After which they should be keep in separate cages of houses. One female rabbit can produce up to 50 baby rabbits in a year.Housing – Rabbits can be kept cages, hutches or in a house. Whatever is the case, their living quarters should be spacious so that there will be enough room for their feeders, drinkers, the kits and for the expansion of the business. Their housing should protect them heat and humidity. It should not be too hot or too cold for them. Feeding – Rabbits eat processed feed or edible vegetable, leaves, shrubs, and herbs.  They also grasses such as elephant grass, potato, etc. I recommend that you feed them 2 times every day.

If you feed them processed feed, then it is important that you find out the exact amount of feed they consume on a daily basis. This will help you avoid waste.  Adequate supply of drinking water should be provided for them too.Expenses – Rabbit farming business in Nigeria is not an expensive venture. You can start your farm in your backyard, with 2 male rabbits and 6 female rabbits, a wire cage and information from out rabbit farming manual. You are good to go! Other factors you will need to put into consideration includes a production plan, competition and marketing strategies. Because there are not so many people involved in commercial rabbit production, it is almost impossible for the few rabbit farmers to satisfy market demand. Therefore, once you set up your own rabbit farming business in Nigeria, you are already a silent millionaire. Look at it like this; since reproduction will take place on a monthly basis, you always have rabbits to sell. And because rabbits are scarce, they are expensive. 

10 Leading Farms In Nigeria, Their Owners

Before the advent of crude oil, agriculture was the mainstay of Nigeria’s economy. Then, the country’s economy thrived; food was available and affordable. People, therefore, did not go hungry, except in extreme cases occasioned by a serious factor.

With the oil boom era, the country and its people shifted attention from agriculture to oil and gas. Subsequently, graduates of Agricultural Science, Soil Science, Agricultural Extension, Agricultural Economics etc., looked for white-collar jobs in banks and other seemingly lucrative areas, including oil and gas. Little did people know that those who remained in agriculture would today be raking in millions and billions of naira, as their products now grace both local and international markets.

This gives an impeccable signal that agriculture is, perhaps, more viable than other sectors. Also, it is an indication that well planned investment in agriculture is not a futile effort. It suffices that some Nigerian farmers have successfully built some shining legacies that need to be emulated and replicated. Most of them, as observed, are politicians. In this edition, LEADERSHIP Friday brings to the fore Nigeria’s top ten biggest farmers.

OLUSEGUN OBASANJO (OBASANJO FARM)

Chief Olusegun Obasanjo is not only a retired army officer, former head of state and politician, he is also a successful farmer. He owns Ota Farm, which is also called Obasanjo Farms. The large farm was formally opened on October 8, 1979, a week after Obasanjo handed over power to a civilian administration on October 1, 1979. At inception, the farm took off as Temperance Enterprises Limited (Farming Venture). It later became Obasanjo Farms Nigeria Limited.

Obasanjo Farms indeed took off in grand style, indication that Nigeria’s former president meant serious business. This probably accounts for the growth, expansion, sustainability and consolidation witnessed in the evolution of the farm, considering how it started and where it is now.

The farm took off with two layer houses containing 100, 000 birds each and five broiler houses of  12,000 each, in addition to two feed mills of three tons per hour each. The large farm, which has up to 7,000 workers started with four bulldozer operators. Today, Obasanjo makes up to N34million daily from Ota Farm, which has branches in Ibadan and Igbo-Ora, Oyo State. This is no small earning for the former president whose farm has played a significant role in the development of agriculture and food production.

Obasanjo also uses the farm complex at the Agbe L’ Oba House, Ota, the Ogun State headquarters of the farm, to hold political and diplomatic meetings.

ABDULSALAMI ABUBABAKAR (MAIZUBE FARMS)

What makes General Abdulsalami Abubakar (rtd) significant today in Nigeria and beyond is not just his successful military career or the fact that he willingly handed over power to a democratically elected government in 1999 to usher in the Fourth Republic. He has a stake in the Nigerian agricultural sector, being the owner of Maizube Farms Limited, which is helping to cater for the food needs of many Nigerians today.

Maizube Farms Limited is located at Km 26, Minna-Bida Road, Minna, Niger State, where General Abubakar is from. The 500-hectare multi-product farm has both livestock and crop sections and today, it is proudly one of the stable sources of crop and animal products upon which Nigerians depend for food and other uses.

Just as General Abubakar gives appreciable time to his peacekeeping mission across the African continent, so also does he give a great deal of time and attention to his Maizube Farms.

MURTALA NYAKO (SEBORE FARMS)

Vice Admiral Murtala Nyako (rtd), the executive governor of Adamawa State may be more popular from the political perspective to many, but he is one of the most successful Nigerian farmers today.  Few know that he is the owner of Sebore Farms in Mayo-Belwa, Adamawa State.

Murtala Nyako was born at Mayo-Belwa, to Alhaji Hamman-Yero, a notable merchant and Hajiya Maryam Daso who was keen on Islamic studies and herbal medicine, on August 27, 1943.

Nyako was born a cattle owner, as his mother had been allocated some cows for her offspring before his birth. So he started what has snowballed into an integrated commercial farm today as a cattle farm. Even throughout his career, in the Navy and in politics, Nyako was never distracted from developing and expanding his coast in the agricultural sector, the result of which is his success story today.

He commenced a sustainable crossbreeding programme of his local cattle with exotic superior sires in 1990 with very satisfactory results. He also got involved in the production of horticultural crops and his first commercial export of muskmelons to Europe, using a chartered aircraft, took place in January 1990. Nyako owns the largest mango farm in Nigeria, leading to his being popularly known as Baba Mai Mangoro (BMM). Exotic mangoes from his mango orchard of 50, 000 trees were first exported to Europe in 1993. He is also presently involved in the modern production of dates, passion fruit and bananas, pasture development breeding of Boer goats and farming.

Nyako is the president of the Horticultural Crops Growers Association of Nigeria, the Practicing Farmers Association of Nigeria and the Apex Farmers Association of Nigeria. He is the patron of numerous farmers’ commodity associations in the country.

USMAN DANTATA Jr. (ANADARIYA FARMS)

The young and enterprising Usman Dantata Jr., who is married to Rukaiya Indimi, daughter of multi-billionaire Borno businessman Mohammed Indimi, is the president/CEO of Anadariya Farms. The large poultry farm, which is located in Tiga, Bebeji local government area of Kano State, was started by the late business sage of Kano, Alhaji Usman Sanusi Dantata of the Dantata dynasty, in the 1960s. Anadariya Farms thrived well in poultry produce. For instance, it was noted for exporting poultry birds and eggs to Saudi Arabia twice a week using a Boeing 747 plane.

However, after decades of activity, the farm experienced some challenges and stopped operations until recently, when Dantata Jr. came on board and injected viability into the large farm. The CEO came with refined vigour, to ensure the farm maintains a successful track record. He has a background in investment and banking and was a trader of various commodities in Europe before coming back to Nigeria. He also has a certificate in feed production and broiler management obtained in North Carolina. Suffice it to say that he had equipped himself with the necessary training before stepping into the business.

This wealth of experience and pool of relevant knowledge may have been the reason for his decision to expand the services and operations of the farm to include a hatchery, production of broilers and layers, the production of feeds and the processing and sale of poultry products. Anadariya Farms produces above 3, 000 broilers weekly. This is one of Nigeria’s most viable farms, with its growing, diverse agricultural activities.

SIR JOSEPH I.A ARUMEMI-IKHIDE (OJEMAI FARMS)

Another modern farm with high level of activity and making great impact within the nation’s agricultural space is Ojemai Farms Limited owned by Ojemai Holdings. The farm, which is located in Edo State and owned by Sir J.I.A.  Arumemi-Ikhide, the chairman of Arik Air, was established in 1984 with interest tilting towards livestock production. It took off as a local producer of pork and turkey meat. However, as years past by and business expanded in the farm, there was the need for expansion of scope of operations.

This led to new interest in production of broiler, catfish, fish fingerling and other forms of animal produce. The farm has grown to become one of the biggest farms in Nigeria and one of the nation’s prides in the agricultural sector.

ARINZE ONEBUNNE (JOVANA FARMS)

Prince Arinze Onebunne is the successful managing consultant and CEO of Jovana Farms, located in Mushin, Lagos. Onebunne specialises in the farming of animals such as grasscutters (greater cane rats), rabbits, quail, antelope, guinea pigs and fish, and so on. His high profile level of animal farming has taken him to over 30 states in Nigeria and to other countries as a seminar facilitator, advocate, training personnel and empowerment speaker.

The founder of Jovana Farms is also at the vanguard of modern fish and livestock farming in Nigeria, which is considered a fast growing and lucrative subsector of the nation’s economy today. With his vast experience and engagement in training and mentoring prospective animal farmers, he earns millions of naira not only from sales of animal products, but also from consultancy charges. Onebunne also carries out feasibility research, site survey and farm construction projects, as part of his professional services.

DR OLATUNDE AGBATO (ANIMAL CARE SERVICES KONSULT)

Dr Olatunde Agbato, a veterinary doctor, is the founder and president/CEO of Animal Care Services Konsult. Agbato, a graduate of the University of Ibadan (UI), became a viable player in the agricultural sector with the establishment of the company known commonly by its shortened name, Animal Care. The company has interests in commercial poultry production, commercial livestock feed milling, aquaculture, manufacturing, and procurement and distribution of animal health products. The company also undertakes provision of expert services for people with interest in animal farming, but who lack the know-how.

Animal Care was founded in 1979 and is located in Ogere Remo, Ogun State. The company concentrates majorly on poultry and veterinary services. It has continued to grow and has a subsidiary called Funtuna Farms, which is a poultry farming operation unit. Furthermore, it has a fish farm operation unit.

Agbato has over the years distinguished himself as a veterinary doctor cum farmer. He is a fellow of the College of Veterinary Surgeons of Nigeria; fellow, Farm Management Association of Nigeria; member, International Egg Commission, and has received many awards of recognition. Agbato is, indeed, one of the farmers who have sown under the sun and can now reap their harvests.

ABDULLAHI ADAMU (NAGARI INTEGRATED DAIRY FARM)

Nagari Integrated Dairy is one of the farms currently being operated in the country on a commercial level. It is reputed to be one of the largest single integrated dairy farms in Africa. It covers 1,200 hectares of land and has 7,000 Holstein cattle. In view of the quality of the products it churns out, the claim that it is among the top suppliers of high quality farm and dairy products in Africa is justified.

Alhaji Abdullahi Adamu, a former governor of Nasarawa State and now a senator of the Federal Republic of Nigeria, is the man behind Nagari Integrated Dairy Farm. Although his fame on the political scene has overshadowed his agricultural exploits, Abdullahi can be described as an accomplished farmer. The success story of Nagari Integrated Farm is the result of the enterprising nature of this farmer, lawyer, engineer, technocrat and consummate politician.

Over the years, Nagari Integrated Dairy has invested in research and development, and in state-of-the-art dairy farming technology. The company has developed its own proprietary dairy farming expertise and methodologies. This has made it a benchmark for the efficient production of high quality dairy products.

ALHAJI WAHAB IYANDA FOLAWIYO (FOLAWIYO FARMS LIMITED)

Folawiyo Farms Limited, located on Yinka Folawiyo Avenue, Apapa, Lagos, was incorporated on October 4, 1985. It carries out integrated agricultural production, with branches in several states in Nigeria. It is owned by renowned business tycoon, philanthropist and the Baba Adinni of Nigeria, the late Alhaji Wahab Iyanda Folawiyo.

In matters concerning agriculture, Folawiyo Farms stands tall in all aspects. They are into livestock farming, fish farming, flour milling, agro-chemical production and distribution, agricultural consultancy, development and engineering, production and supply of agro-pesticides, farm tools, fertiliser services, horticulture, and so on.

Folawiyo’s journey to greatness began back in 1957 when he founded Yinka Folawiyo and Sons Limited, an import and export business empire that includes holdings in shipping, banking, construction, agriculture and energy. It is therefore not out of proportion to say Folawiyo’s business concerns traverse the entire length and breadth of the Nigerian economic terrain.

PETER ADENIYI (ANU-OLUWA FARMS)

Mr Peter Adeniyi, perhaps, did not understand fully the fortunes he was sowing to harvest when he founded Anu-Oluwa Farms in Ibadan, the ancient capital city of Oyo State. The farm, which has special interest in poultry and egg production for the Nigerian market, has become one of the largest farms in Nigeria.

The farm also sells livestock feeds and materials, table eggs, day-old chicks, point of lays, fish and fish fingerlings and livestock vaccines. Adeniyi is one of the most successful farmers in Nigeria.

Signs & Stages of Dog Pregnancy

For about the first month, you likely will not see many outward dog pregnancy signs, as the changes inside your dog are microscopic. About 2 - 3 days after mating, the eggs are fertilized on their way to the uterus. At 10 or 11 days, the fertilized eggs implant themselves in the uterine lining.

The first symptom of dog pregnancy you are likely to notice occurs at 14 to 15 days after mating. If you look closely at the dog's nipples, you will see that they are becoming larger and turning a darker shade of pink. At about 20 days, the fur around the nipples will begin to thin out to allow the pups easier access to them.

One of the most visible symptoms of dog pregnancy is present from days 21 – 28, when the bitch goes through morning sickness, similar to what human mothers experience in early pregnancy. Although dogs don't typically vomit as much as humans, they often lose their appetites and refuse to eat.

By 25 days after mating, you can notice one of the most important dog pregnancy symptoms - heartbeats! If you have access to a stethoscope, press it gently against the dog's abdomen and listen closely. You probably won't be able to pick out how many puppies are in there, but it's exciting to hear the little thumps, nonetheless.

By 30 days after mating, the embryos are big enough to be felt through the dog's abdominal wall. They will be about walnut-sized and can be felt well enough to determine how many puppies are in your pregnant dog. A dog pregnancy ultrasound can be taken at this point to verify the pregnant dog's litter size. Symptoms at this point are pretty easy to spot, as the dog's abdomen is rapidly growing.

Other dog pregnancy symptoms are swollen nipples and restlessness. Your dog may spend a lot of time grooming herself and may wander around, sniffing for places that would make a good den.

After six weeks, the puppies will be large enough that they begin crowding each other and squirming around. If your dog will allow you to touch her stomach, you can feel them, just as you would a kicking baby. The abdomen will feel hard and will be extremely large and stretched. At this point, the bitch may lose her appetite entirely, as her stomach will be crowded with puppies, leaving little room for food.

Most dogs deliver their litters about 54 - 72 days after conception. A few days before the delivery, the key pregnant dog symptom is that her nipples will leak a milky fluid when squeezed. She may also have a clear discharge from her vagina. You should begin taking rectal temperatures twice a day when you see discharge from either place. When the temperature drops from 101 to 98 degrees, the dog will begin delivering within 12 - 24 hours, and your dog pregnancy will be at an end.





Source: http://www.doggies.com/articles/65-dog-pregnancy-symptoms.html#ixzz1x16Tuav9

AGRICULTURAL VALUE CHAIN

The global problem of food scarcity is exacerbated by the constant increase in population growth, with no complimenting increase in the output of agricultural produce. Over the years it has become a major focus of most governments to provide enough food for her citizenry which will in-turn curb the series of social discord that could emerge if a hunger-crisis breaks out, and create an enabling atmosphere for strategic economic development by providing the working population with one of the most important physiological needs.

The rapid globalization of the Agricultural markets has led to the generation of new production and distribution systems, as well as new consumption patterns. One of the objectives of modern agriculture is to reduce to the barest minimum the problems associated with agricultural loss, wastages and output underutilization by ensuring an efficient optimization of all the linkages between the producer and final consumer through the “Value-Chain” concept.

A Value Chain can be defined as a strategic partnership among inter-dependent businesses that collaborate to progressively create value for the final consumer resulting in a collective competitive advantage*. The basic characteristic of a Value Chain is market-focused collaboration; different business enterprises working together to produce and market products and services effectively and efficiently by allowing businesses to respond to the marketplace through linking production, processing and marketing activities to meet market demands*.   Agric-food Value Chains are designed to increase competitive advantage through collaboration in a venture that links producers, processors, marketers, food service companies, retailers and supporting groups such as shippers, research groups and suppliers*[1]. One of the central ideas of the Agricultural Value Chain concept is the differentiation of the total agro system and the specialization of each element so as to optimize the entire system.

                                            Source: http://agrpartners.com/

PROBLEMS OF THE NIGERIAN AGRICULTURAL VALUE CHAIN ELEMENTS

It is often said amongst literature groups that a chain is only as strong as its weakest link. The Nigerian Agricultural Value Chain has not been at premium in its performance because of the avalanche of inherent inefficiencies that characterize the elements.

A typical Nigerian farmer will produce the seeds he needs for his plantings, grow and harvest the crops on his field, process the harvested crops, market the processed produce and even be the final consumer himself, promoting thus the saying “Jack of all Trades, Master of None”. There are oftentimes no differentiation of farming activities which resultantly shields the benefits that could have accrued from trade specializations. The sustained efficiency in the agricultural industry of the developed nations is hinged on the principle of specialized diversification through the value chain. Here, each of the producers, processors, marketers and researchers focuses on his enterprise as one’s output is another’s input, ensuring quality delivery of resources to the next link without encroaching into other production niches.

In Nigeria, attention is mostly focused on primary production; huge crop turnover/harvest, large flock management, enormous plantations etc. Nigerians pride themselves in being the world’s largest producer of cocoa, third largest producer of sorghum, largest producers of yam and cassava, and cultivators of the great monumental groundnut pyramid. The enigmatic question here is: despite our seemingly agricultural feats, why is the agricultural industry not regarded as developed? Production efficiency which could have been realized from the processing of our massively harvested crops is lost; for example cocoa beans are exported unprocessed and are transformed into varied products such as beverages, chocolate bars and candies to mention but a few which are in turn imported into the country and sold to us at increased prices.  Appreciable economic gains will accrued to the nation if there are policies to guide against exporting raw crop produce; which will strengthen the value addition process and encourage investment in such areas of the economy.

The utility of time, place and standardization has not been fully exploited in the Nigerian agro-industry, which happens to be one of the core functions of marketing. Our major pitfall is on the issue of packaging and standardization which has ousted us from the global market to our own economic detriment. Effective packaging adds value to produce, enables traceability, enhances standardization, and provides feedback thereby gaining the confidence of customers. In developed nations, Universal Product Code(UPC) which is a set of 12 numerical digits for scanning of trade items are often assigned to local or imported produce to aid control of quality, pest and disease, traceability and hence feedback.

Governments all over the world are interested in the potential of value chains to develop agriculture and contribute to food security, and this has been on the rising since the 2008’s global food crisis[2]. Nigeria through the Agricultural Transformation Agenda has currently implemented policies to strengthen the players of the value chain mix and revolutionize agriculture as a business entity. Agricultural value chains hold considerable promise in reducing poverty and promoting inclusive growth when the poor and other marginal groups participate in them. Under the right conditions, value chains can move smallholder farmers from subsistence into commercial agriculture.

SCHEMATIC REPRESENTATION OF AGRICULTURAL VALUE CHAIN

                                        

Source: SENCE Agric

FACTORS FOR IMPLEMENTING A SUCCESSFUL AGRICULTURAL VALUE CHAIN

1.      Enabling Environment: Nigeria has over the years tried to revamp agriculture using different approaches to boost production. However, recent developmental programs are geared towards maximizing income not only on production but also on processing and other areas, (Agricultural value chain). For effectiveness of the Agricultural value chain, an enabling environment through national policies, regulations, and supporting institutions are a prerequisite. Policy reforms relevant to the value chain approach focused on the following should be considered

·   Increasing private sector participation,

·   The quality and safety standards of agricultural products,

·    Improving institutional and financial frameworks.

        ·   Promoting national policies that support the agricultural sector; by reducing barriers to inputs, increasing access to finance and providing incentives.

2.      Credit and financial support: Access to credit is a pivotal requirement for all value chain stakeholders, including small-scale processors and retailers, storage operators, and traders. Access to credit will boost small entrepreneurs, for instance, to buy processing or packaging equipment, develop storage facilities, and differentiate products. Getting access to credit and financing agricultural ventures in Nigerian Banks is not business friendly due to the nature of Agriculture; being a long term investment.

3.      Infrastructure:  creating and rehabilitating rural roads focused on linking areas with a competitive advantage to markets can help form competitive value chains. This approach relates to a key aspect of promoting value chains by linking high-value crop production areas to strategic commercial markets. The aim is to reduce transition duration and ensure timely supply of both inputs and outputs to preserve the quality of Agricultural product. Other supporting infrastructure, such as storage facilities and transport logistics, would also increase selling options and contribute to benefits that accrue from rural roads. Investors are open to partner with stakeholders in providing transport and logistics services and other important infrastructural development.

4.      Technology: There is need for constant innovation and technological inputs in the value chain elements to raise productivity, reduce costs, and stay competitive. Innovation requires experimentation, incubation, and eventually adaptation to develop and maintain competitiveness. This should be a continuous process involving stakeholders at every point in the chain to improve productivity, product quality, information transfer, processing, and marketing processes. Nigeria is yet to maximize technological input for Agricultural development, (ICT) which could offer a huge return and save appreciable amount of cost. For examples development of software to simplify farm management, handle routine processes among others.

5.      Markets: Addressing market-information issues and support for key market drivers such as product differentiation will enable value chain stakeholders to develop products that respond to market needs. Product differentiation is a key value chain element in increasing competitiveness. Example, technical assistance on the Marketing Support for Organic Produce focused on maintaining product quality through packaging and appropriate storage and farm-gate to market transport logistics. This provides the basis for supporting a branding campaign. Improving market access through capacity building and training inputs such as workshops, trade fairs promotion collaborations between producers and processors will help in building basic business skills and to improve management and operation of small and medium enterprises.

6.      Market Information: Market information must be delivered on time for it to be useful. Approaches for getting timely price information for improving the negotiating position of producers with traders and processors. A wider range of information is needed, beyond prices, in areas such as inventories of agribusiness opportunities, and identifying markets and technology links for new and existing products. The private sector plays a more responsive role to farmer–market information needs. Owing to the vast nature of information required by different individuals in the value chain, the area of information management proves to be a good investment opportunity for investors to manage and allow easy access to end users.

7.      Organizations: The development of organizations that have the critical mass to provide structure for governance is pivotal to the development of value chains. The World Banks’ Agriculture for Development report makes the case for organizations of key stakeholders in agricultural development in general and value chains in particular[3]. The report argues that organizations form a major part of institutional reconstruction, and can use collective action and links to strengthen the position of smallholders in the markets. Organizations can contribute to value chains by strengthening their bargaining power to reduce transaction costs, and give poor and vulnerable groups a voice in the policy process. To do this, organizations must be able to act as vehicles of change and be able to network through well-developed links. This will also need some form of institutional governance to promote member confidence and solidarity, and build capacity for activities such as credit management[4]

8.      Private Sector Participation: Encouraging private sector participation requires clarity about the roles of government and the private sector. Fostering interaction through public–private partnerships requires identification of opportunities and the development of commercial models for effective participation of both sectors. This is what Nigeria hope to achieve using the Agric-value chain approach to commercialize Agriculture as a business investment. Successes recorded on the E-wallet programme under the Growth Enhancement Support scheme of the Federal Ministry of Agriculture and Rural Development to replace the old fertilizer and seedlings distribution method, which the Federal Government handled through middlemen, states and local governments as shown that public-private partnership is the engine to revolutionize Agriculture in Nigeria. Investors are therefore encouraged to look for areas in the value-chain to partner with government and come out with framework to stimulate business drives in the value chain.

9.      Inclusion of the Poor: The agricultural value chain approach can provide opportunities for the poor. Because the main aim of value chains is to generate profit, the means for achieving this can conflict with the inclusion of the poor, who generally lack the skills and expertise to produce for high-value markets. However, with good policies to support the poor through capacity building, the value chain can serve a means of empowering the poor and creating jobs. This is one of the areas developing countries like Nigeria are hoping to bank on for the creation of more jobs. The inclusion of marginal groups in value chain development has largely been based on support for production. It introduced a staged approach for inclusion, which aimed to gradually increase the skills and capacity of producers so that they could participate in commercial supply chains with the possibility that value chains would evolve.

Modern agricultural value chains usually offer wages and self-employment with better pay and working conditions than the traditional agriculture.  A comprehensive approach is required by the public-private partnership to identify key constraints to agriculture value chain development and adopt a workable policy, regulatory, and institutional reforms to address key constraints for agricultural value chain development.

The multiplier effects of the success of Agricultural value chain on the Nigerian economy is far enormous, with the current agricultural income of the country, put at N15 trillion as against the potential value of about N40 trillion[5]. Nigeria could pride herself as an investment hub in Agriculture and put the nation back to limelight as an agrarian nation.

REFERENCES

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[1]  *Sourced and adapted from Government of Alberta, Agriculture and Rural Development

[2]ADB. 2013, Learning Lessons Agricultural Value Chains for Development Independent Evaluation Department at the Asian Development Bank

[3]World Bank. 2008. Agriculture for Development Washington, DC.

[4]Independent Evaluation Department.2012.Support for Agricultural Value Chain Development. Manila. ADB.J. Bijman and G. Ton. 2008. Capacity. 34. p. 4

[5]Culled from:Thisdaylive.com Nigerian Agric is Worth N15 tr

Agric value chain is long, can employ over 60% of Nigerians — Onyeani Nwosu

Mr. Onyeani Uka Nwosu is the Chairman/Chief Executive Officer of Abia State-based Green Town Farms, a farming business based on professional research. In this chat with Financial Vanguard, Nwosu says farmers can only break even when they mechanise the processes. He urges government at all levels to do more for the sector, noting that if only a small percentage of money spent on the oil and gas sector is spent in agriculture, Nigerian economy will burst. Excerpts:

Background:

Onyeani Nwosu

After his first degree in Accounting and a Master’s in Business Administration in Banking and Finance, Mr. Onyeani Nwosu who is a Fellow of the Chartered Institute of Bankers (FCIB) worked in the banking sector for 30 years first in Union Bank, through Union Homes and then Intercontinental Bank Group and Intercontinental Homes where he rose to the position of Group Head, Banking and Mortgages. He took charge of the overall business development of the bank as a second in command, next to the managing director. He retired in February 2012.

Going into agriculture:
“Prior to leaving the bank, I considered areas that I would want to spend the rest of my time and agriculture was one of them. It used to be the number one until oil came and stole the show and it dropped to number nothing. Gradually, it has started coming up, kudos to President Goodluck Ebele Jonathan with his agricultural transformation programmes being anchored by the Minister of Agriculture, Dr. Akinwumi Adesina, Special Adviser to the President on Millennium Development Goals and the support of the Federal Ministry of Finance through the Bank of the North. So the sector has received a little boost but a lot still needs to be done to enable us tap the enormous resources in the sector.

“Agriculture means different things to different people. To the lay man, it is a means of livelihood; to the corporate farmer, it is a business. Agribusiness means a lot of things because the agricultural value chain is very long and can employ over 60 per cent of the Nigerian population if we really want to do justice to agriculture. People can key into crop production, animal husbandry; crop or animal processing. This will further enlarge the capacity in terms of employment and empowerment for the masses. For instance, if just a little percentage of funding given to oil and gas is given to agriculture, the economy will burst.

“Exploration, well development, etc., cost billions of dollars, so if only a small percentage of the money is spent in agriculture, you can imagine what the turn out will be. For instance, cassava can be used for biofuel, food and other industrial uses like starch required in the pharmaceutical, textile, bakery and paint industries. This will tell you what the average Nigerian will do if given the required support and that is why we are calling on the Federal Government to do more.”

Government should do more:
“In one of our farms, we called for quotes and we were given a bill of N15 million just to survey about 200 hectares of farmland. There are so many ways government can come in here: One, bring the cost for stamping and registration of agric land down to zero if possible; zero or basic cost for perfection of farming properties. They should have a pool of heavy duty machines for on-leasing to farmers at a subsidised rate to encourage mechanisation which will in turn force down the price of basic food items. It is evident that you cannot make it as a farmer if you don’t mass-produce, volume is it! And the only way to mass-produce is to mechanise your processes.

Government should stop making mockery of farmers. They will go on air and advertise that 100 metric tons of fertiliser have been made available to farmers. By the time you cascade it to the locals, you see a farmer getting two bags of fertiliser even though it is subsidized. How many plots of land will that cover? They should make this product available and affordable. Availability and affordability are very important as far as farm inputs are concerned, so we need a more proactive and more practical support from government at all levels.

“If we borrow from the banks to buy tractors, bulldozers and all that, then we will continue to pay debt until the next generation and it is not good enough so government should show interest in acquiring heavy duty equipment and all other farm implements and attachments. On our own, however, we have started buying tractors and soon, they will arrive. If we don’t mechanise, we won’t be able to break even.

“We have more than 15 culverts and bridges in our farm area to construct; assuming we spend N3 million on each of these, it will automatically affect the sums of money meant for the real thing which is farming. This is where government has to come in.”

Single digit interest rate:
“I am yet to see the single-digit credit facilities. In fact, not just single digit but lower single digit between 0 and 5 per cent. A lot of cheap funds are available in Nigeria. Take for instance the Pension Fund, whereas we are clamouring that part of it should go into mortgage development, some of it should go to agriculture. Put the money in infrastructure development and then recoup some of the money overtime. When these farms are doing well, they will pay corporate tax to government. Government should do something to ensure that investors in agri-business get their money back and by so doing, they will be encouraging others to join.

Recruiting young farmers: “We also realised that recruiting young people to work in farms located in rural areas is a problem and that is why we have started putting up farm houses for young graduates who may want to work and live in the farm. These are some of the strategies we have adopted to make sure that our farm comes to be what we want it to be, an integrated farming system where waste in one section of the farm would become raw material in another section.”

Investors should invest in farm devt:
“A lot of investors in oil and gas, manufacturing etc., can key into the agriculture value chain. I will not advise anyone to start rolling out agric-based factories now because the inputs are not available, so first and foremost, they should invest in farm development, then when the produce is enough to provide a certain level of capacity in terms of availability of farm inputs, then they can set up agro processing units. People should learn to embark on long-term development instead of wait and take. Most Nigerians are looking for what they can do to get their money fast. Agriculture is not such a place except if you go into annuals like vegetables but you can imagine how many acres of land you need to cultivate to produce truck-load of pepper even though they are fast.”

Visit to Israel, Songhai:  “I went with a team of my staff for training in Songhai Farms and Israel. They are now practising what they learnt. We have invested so much in capacity-building. I slept in the farm for two weeks in Israel to understudy the Kibbutz farming system and I told myself that someday, people will come to my own farm and sleep. We were comfortable and we had fun. They were small houses but the facilities were of world class, what you see in three-star hotels.”

Corporate social responsibility (CSR):
“If we don’t make the locals living around the farms comfortable to an extent, they will turn to become a very big risk factor and that is why we are doing a lot on CSR in localities where our farms are. We gave them boreholes, talk them into going to school and promised them employment.
They provide labour for us because we are still doing manual but by the time we mechanize, they will be trained to align with the process. If you do not engage them,  they will become restive, so agriculture is another way of curtailing youth restiveness and militancy.

Why Green Town?
“When we wanted to start farm business, we were looking at two things – nature and community. Green is synonymous with nature, it depicts power and life so we were looking at natural habitat for our kind of business. We considered all these and decided to call it Green Town in the sense that we have a community life in mind. We want to focus not just on our pocket but on the community. We are also looking at doing something that is integrative in nature, it is not all about plantain, or palm or cassava, we want to look at animal husbandry, processing etc. So we are looking at community life whereby man and nature will be in harmony.”