By Cynthia Alo
Experts have tasked stakeholders in Nigeria’s agriculture sector to shift from primary production to commercially driven agribusiness, stressing value addition, higher productivity and improved access to finance and markets as critical to unlocking the sector’s potential.
They spoke at the Enterprise CEO Series forum, themed “The Future of Agribusiness Leadership in Africa,” in Lagos, where they called for stronger links between farmers, processors, investors, policymakers and consumers.
Former Director-General, Lagos Chamber of Commerce and Industry, LCCI, Dr. Muda Yusuf, said Nigeria could not build agricultural prosperity simply by putting more land under cultivation, stressing the need to increase output per hectare, output per worker and value per tonne.
Yusuf said agribusiness offered opportunities in inputs, farming, aggregation, storage, processing, logistics, marketing and exports, adding that the sector could create more value, jobs and income when the entire value chain was developed.
He said: “The future of agriculture is agribusiness. Agriculture is not just about primary production. In fact, primary agriculture is one of the least lucrative parts of the value chain, unless it is carried out in a highly mechanised manner.
“Nigeria cannot build agricultural prosperity simply by putting more land under cultivation. The strategic objective should be to achieve more output per hectare, more output per worker and more value per tonne.”
Also speaking, Chairman, Agric Group, LCCI, Mr. Babatunde Banjoko, who was represented by Mr. Rabiu Faruq, identified market access as one of the major challenges facing agribusiness, saying farmers and buyers often operate without a coordinated pricing structure.
Banjoko said large players were needed to aggregate production and link farmers to larger consumer markets, adding that agribusiness operators must also improve efficiency to reduce production costs.
He said: “When there is scarcity, farmers increase their prices to the point where the final consumers can no longer afford the products. When there is abundance, buyers also push down prices to the point where farmers are forced to sell at a loss.
“AI is only an enabler. AI cannot take over the business. AI will not produce fish. It is not going to give you corn.”
On his part, Chief Executive Officer, Farm Credit NG, Mr. Afioluwa Mogaji, urged agribusiness operators to pay greater attention to government policies, saying policy decisions could determine the viability of businesses across the agricultural value chain.
Mogaji also called on the operators to position their businesses properly to attract funding and partnerships, saying grants and other opportunities could come when businesses demonstrate clear value.
“Policy is everything, not just farming and processing. Money will always come. Grants will always locate you. If you’re looking for grants, you won’t get them. But if you position yourself properly, grants will locate you,” he said.
Senior Consultant, Business Development and Strategic Partnerships, Kibbutz Coop Agribusiness & AgTech, Mr. Olusegun Odebiyi, said agriculture should be approached as a business rather than merely a traditional farming activity.
Odebiyi said, “Agriculture is different from agribusiness. Agriculture is largely about culture and the way we have traditionally practised farming, while agribusiness is about building a sustainable business around agriculture.”
Odebiyi, who said his company operates mainly on a business-to-business model with multinational processors, also warned investors to conduct proper due diligence before acquiring farmland.
On her part, Founder and CEO, Psaltry International Company Limited, Mrs. Oluyemisi Iranloye, represented by Dr. Adekunle Olubukola, said value addition must be supported by a strong smallholder farmer ecosystem.
According to her, “We often stop at production. At Psaltry International, we did not want to stop at production. We recognised that many crops can be used as industrial raw materials for further processing.”
She added that the company works with more than 25,000 smallholder farmers, providing inputs, training, technical support and off-take arrangements, while about 85 extension officers engage farmers regularly.
Agronomist and Senior General Manager, Agronomy and Farms Operations, Agbeyewa Farms, Mr. Babatunde Adegbenga Akinsinde, said improved varieties and good agronomic practices could significantly raise cassava productivity.
He said the average cassava yield in Nigeria was about six to eight tonnes per hectare, compared with close to 40 tonnes per hectare achieved on his farm under the right conditions.
“Cassava can give you 40 tonnes per hectare if you give it the right treatment,” he said, stressing the importance of improved planting materials, fertiliser application, soil testing and good agronomic practices.
Akinsinde also called for patient capital, noting that cassava could take about 14 months before harvest and that combining production with processing could take several years before significant returns were realised.
“Cassava is an important industrial crop because of its many applications, including industrial processing and export. The key is to continue adding value to cassava and building a sustainable agricultural ecosystem,” he said.
Convener and Chief Executive Officer, Enterprise CEO, Mr. Seye Joseph, said the forum was designed to bring policymakers and industry practitioners together to exchange ideas that could improve different sectors.
“As a media company, we create platforms where we can bring together policymakers, those who make the policies, and those who practise in the industry,” he said.
He added that the objective was “not just about organising events” but creating platforms that could help industries perform better.