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Food Crisis: Experts Warns, Canvass Support for Flour Milling Industry

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Food Crisis: Experts Warns, Canvass Support for Flour Milling Industry

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Citing the prevailing economic conditions and unfavourable regulatory frameworks, economic analysts at the financial, business and economic information hub – Proshareng, have warned the nation of an impending food crisis.

According to a recently published review of the wheat value chain, the analysts explained that due to the disruption to vital supply chains, globally and locally, as a result of several COVID-19 curtailment policies, and unfavourable FX regimes, and insecurity issues in the wheat-planting belt of Nigeria, securing food for the average Nigerian is becoming tougher to sustain.

The report highlighted the profit eroding effects of the shrinking global wheat production levels, increasing cost and skyrocketing freight/ free on board (FOB) rates placed on Nigeria-bound goods on the revenue of flour millers and bakers.

It submitted that the current price hike in the global wheat market, which the local millers rely upon to bridge the expansive supply short-fall occasioned by the low level of domestic wheat production, constitute an operational strain that is heavily impacting the cost of production of millers and have the potential to further elevate wheat-based staples prices.

Highlighting recent price volatility in the global wheat market, the analysts noted that from as early as the first quarter of 2021 the global price of wheat rose to US$642 per bushel in January 2021 and then US$650 per bushel by the end of the quarter. Further market pressures saw price settle at US$726.75 per bushel in May. By the end of June 2021, price dropped to US$693.5 per bushel, while yet another spike pushed price to US$707 per bushel in July 2021.
The sector report revealed how the millers and bakers absorb the inflationary burden and the impact of rising global wheat cost on the cost of wheat-based products. Adding that wheat-based food products are fairly price elastic and therefore any rise in the price of these products in the local markets can potentially heighten pressure on the disposable income of Nigerians, many of whom fall within the C, D, & E socio-economic spectrum.   The experts at the well-respected economic information portal revealed that a likely third wave of COVID-19 outbreak, considering the widening spread of the new Delta variant in addition to several early knocks, could see the bottom fall out entirely for the flour milling industry.

The flour milling industry plays a significant role in providing Nigeria’s ever-growing population access to relatively cheaper staples. Recent industry reports show that 45% of the food variants served in Nigerian homes are wheat derivatives, and account for 75 million of the daily food portions in Nigerian households.

They urged the government to allow the millers to access FX at the I&E window, suspend the 15% cassava levy, explore other measures to support the millers and bakers, as well as assist local wheat farmers to acquire improved wheat seed varieties. They pointed to strategic tax concessions in areas that align with the backward integration target of the CBN amongst others as further measures that would forestall a cave-in of the flour milling industry.food crisis

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Agriculture

ISDB/ LLF FUNDED PROJECT SUPPORTS DAIRY VALUE CHAIN IN NIGERIA WITH N4 BILLION MILK COLLECTION CENTERS

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

kano State Agro-Pastoral Development Project, KSADP, funded by the Islamic development Bank and the Lives and Livelihood Fund, LLF, has awarded contracts worth the sum of N3, 962, 457, 126.12, for construction of 60 Milk Collection Centers across Kano State.


The contracts, in four lots, were awarded to four indigenous companies with a completion period of 12 months for each project.


Each Milk Collection Center will have a borehole equipped with a solar-powered pump and a 20,000-litre overhead tank; an inputs (feed, drugs) store managed by a community appointee and up to 10 fodder banks in its environs.


In addition, every MCC will have a 250-litre tank cooled by solar power and a milk testing bench with appropriate reagents/equipment as well as provision of milk collection cans.


Shortly after awarding the contracts, supervised by the Kano State Ministry of Justice, the State Project Coordinator, Kano State Agro-Pastoral Development Project, Malam Ibrahim Garba Muhammad, stated that “the investment is unprecedented in Nigeria and will bridge the gap between pastoralists and the dairy industry”.


“One of the major problems of the dairy industry is supply inadequacy and poor quality of the milk. This MCC project therefore, aims to ensure provision of quality and safe milk, by putting in place a cold chain. This will guarantee regular sales and income for the pastoralists”, he stated.


Malam Ibrahim charged the companies awarded the contracts to execute durable projects within the agreed time frame, to justify the confidence reposed in them.


It could be recalled that in September, 2022, Kano State Agro-Pastoral Development Project awarded contract for construction of 40 Milk Collection Centers in Kano, as part of moves to take maximum advantage of the stated potential

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Agriculture

IsBD AWARDS N1.87 BILLION CONTRACTS FOR SLAUGHTER HOUSES, CATTLE MARKETS IN KANO

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AJAGBE ADEYEMI TESLIM

Sponsored by: H&H

Determined to mitigate public health risks, Kano state Agro-Pastoral Development Project, KSADP, has awarded contracts in the sum of N1, 549, 000, 000 for the improvement of 20 public slaughterhouses (abattoirs) in Kano State.


The slaughter houses are in Rano, Gwarzo, Dambatta, Kiru, Doguwa, Wudil, Bebeji, Karaye, Tudun Wada, Gabasawa, Gaya, Gezawa, Kunchi, Kabo, Kura, Dawakin Tofa, Bichi, Shanono, Takai and Sumaila local government areas.


In his remarks shortly after awarding the contracts, the State Project Coordinator, KSADP, Malam Ibrahim Garba Muhammad said the project decided to invest in the upgrade of the slaughterhouses “because the current state and working conditions in slaughterhouses in Kano is at variance with international best practices”.


“They are in a state of deplorable slaughtering and processing facilities, inadequate clean water supplies, no refrigerators and lack of facilities for the collection, storage and disposal of waste”.


“These put together impact the quality of meat, affect the safety of workers in the slaughter houses, endanger the environment and generally put public health at a very serious risk”.


Malam Ibrahim expressed concern that current facilities and practices in the slaughterhouses have the potential to amplify occupational exposure to diseases or injury and while unwholesome meat finds its way to peoples’ homes, thereby exposing the population to diseases and even epidemics.


He further announced that the KSADP, financed by the Islamic Development Bank and the Lives and Livelihood Funds, has awarded contracts worth N326 million for upgrading of five Cattle markets at Dumbulum, Wudil, Dambatta, Gwarzo and Falgore.


The work involves provision of loading and off-loading ramps, watering facilities, office space for market information, security services, veterinary services, lighting for trade and security at night as well as toilet facilities.
Currently, all five cattle markets lack basic facilities for humane treatment of livestock on arrival (off loading), while in the market and during reloading.

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Agriculture

KANO AGRO-PASTORAL DEVELOPMENT PROJECT AWARDS N6 BILLION IRRIGATION DEVELOPMENT, MILK COLLECTION CENTERS CONTRACTS

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AJAGBE ADEYEMI TESLIM

Sponsored by: H&H


K
ano State Agro-Pastoral Development Project, KSADP, announced on Friday, the award of contracts totaling N6,036,334,688. 66, for projects across several local government areas of the state.


The projects include development of a total of 1,006 hectares irrigation structures (at sectors 9-14) at Watari irrigation scheme, Bagwai local government area and the construction of 40 Milk Collection Centers at different locations, spreading across 15 local government areas of the state.


The Watari infrastructure projects will cost the sum of N4,539,501, 897.08 while the 40 Milk Collection Centers will be constructed at the total cost of N1,496,832,791.58.


Funding for the interventions will be provided by the Islamic Development Bank and the Lives and Livelihoods Fund, LLF, as part of a broad vision to enhance agricultural productivity, ensure food and nutrition security as well as improving income generation for small-holder farmers and herdsmen.


The projects, awarded to eight, separate indigenous contractors, will begin in September, 2022 and completed by September-December, 2023.


The investment is predicted to impact thousands of farmers and pastoralists, thus, revitalizing the economy of Kano.


Speaking shortly after signing the contracts, coordinated by the Kano State Ministry of Justice, the State Project Coordinator, KSADP, Ibrahim Garba Muhammad said the occasion was a significant step towards revamping agriculture in the state.


“These interventions, which will soon be followed by other activities, will surely bring about change in the agricultural fortunes of Kano and will lift a significant number of our people out of poverty”.


He, therefore, urged the contractors to see the projects as service to humanity, stressing they are expected to abide by all the contractual guidelines in order to deliver value for money.


Also commenting, the Managing Director, Kano State Rural Development Authority, KNARDA, the executing agency of KSADP, Dr. Junaidu Yakubu Muhammad, warned the contractors that a strong monitoring mechanism has been put in place to supervise their work, adding that any one of them found wanting would be sanctioned according to the stipulated regulations.

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