The Status of Processing and Preservation of Cereal in Nigeria
Chapter One
OBJECTIVE OF THE STUDY
- Describe the status of cereal farmers in Kaduna
- Estimate the inputs-output levels in cereal processing and preservation in Kaduna
- Determine the costs and returns and hence profitability of cereal processing and preservation in Kaduna State.
- Determine the effects of input prices on cereal processing and preservation in Kaduna
CHAPTER TWO
LITERATURE REVIEW
OVERVIEW OF THE FEDERAL GOVERNMENT POLICYENVIRONMENT ON AGRICULTURE
The Federal Government of Nigeria formulated its first comprehensive agricultural policy in 1985. The policy instruments, which were to remain valid for the next 15 years, were composed of macro-economic, policies, agricultural sector policies, and policies for support services. The macro-economic policies included pricing, trade, exchange rate and agricultural land policies. The sector – specific policies included food production, input supply and subsidy policies. The primary objective of these policies was to reinforce agriculture’s contribution to food security, employment, and provision of raw materials and foreign exchange in the Nigerian Economy (IFDC, 2001).
FERTILIZER POLICY OVERVIEW
Prior to 1976, the state governments were responsible for the procurement and distribution of fertilizer until the federal government established the Fertilizer Procurement and Distribution Division (FPDD) within the Federal Ministry of Agriculture. However realising that an efficient and sustainable agricultural input supply system could be achieved through the participation of the private sector, the Government started reforming the fertilizer sector in 1994 and adopted a fertilizer liberalization policy in 1996.
The Federal Government completely withdrew from procurement and distribution activities and discontinued the subsidization of fertilizer. To give relief to farmers, it reduced the import tariff on fertilizers from 10% in 1996 to 5% in 1999 and zero percent in 2000. It also abolished the value – added tax (VAT) and excise duty (IFDC, 2001).
A historical review of Nigerian fertilizer policy by Nagy and Edum (2002) reveals an inconsistency of government fertilizer policy over the years. Policies kept changing almost year by year in order to check the problems of availability, leakages and arbitrage. However none of these policies succeeded.
The federal government did not follow through on the liberalisation process started in 1997 by ensuring that the preconditions for a transition to a privatised fertilizer sector were implemented. The federal government withdrew from fertilizer procurement and subsidy policies, leaving the industry stranded.
SEED POLICY OVERVIEW.
A national seed policy formulated in 1992 provides guidelines for the development of the seed sector. The National agency responsible for co-ordinating development, monitoring policy and implementing quality control in the national seed system is National Seed Service (NSS) of the Federal Ministry of Agriculture. A decree was also enacted (Decree No 72, 1992) to regulate the various aspects of seed production, marketing and quality control. The policy also makes provision for the withdrawal of the public sector in favour of the private sector or private seed companies. These seed companies produce and market open pollinated certified seeds of cereal and hybrid cereal. Other types of seeds handled by the companies include rice, sorghum, wheat, millet, cowpea and different vegetables (IFDC, 2001).
CHAPTER THREE
RESEARCH METHODOLOGY
THE DATA/METHOD OF DATA COLLECTION.
For this study, secondary data were utilised. The data consisted of those that were extracted from a large farm input – output survey conducted by the International Institute for Tropical Agriculture (IITA) which was one of their regular surveys in collaboration with Kaduna State Agricultural Development Project (KADP) in 2000/2001 cropping season.
The LGAs were randomly selected from the list of all the local government areas in the state. 77 villages were also randomly selected from the LGAs. While a total of 400 farming households were sampled, out of which 337 are cereal farmers and were purposively considered for this study. Also data on output and prices of cereal in Kaduna state were collected from the records of KADP for a period of 15 years (1990 – 2004). Data on prices of Agricultural inputs (fertilizers, seed and herbicide) for 15 years (1990 – 2004) were collected also from Kaduna State Farmers Supply Company (FASCOM), SARO Agrochemicals and Premier Seed Company.
CHAPTER FOUR
RESULTS AND DISCUSSION
Status of cereal
Age Distribution of Cereal Farmers.
Table 4.1 shows that 44% of the farmers interviewed fell within the age range of 41 to 50 years. While 18% were aged between 31 to 40 years, 4% were aged between 21 and 30 years. The above implies that a large proportion of the farmers producing cereal are within the active age of 21 to 50years. The average age of the farmers was 46 years. The age factor is important especially in the adoption of innovations and the ability to cope with the drudgery associated with crop production in general.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
SUMMARY
The broad objective of this study was to carry out an status of processing and preservation of cereal enterprise in the state. The specific objectives were to describe status of cereal farmers, determine the input – output levels, estimate costs and returns in cereal processing and preservation as well as the effects of input prices on cereal output.
The result of the socio-economic analysis showed that 44% of the farmers were between the ages of 41 and 50 years. The average was 46 years while 40% had no formal education. The average household size was 10 people while about 53% of the farmers have been producing cereal for over 25 years. Membership of Co-operative Societies was poor as only 14% of the farmers belonged to farmers Co-operative Societies. Access to bank credits was very poor with only 40% of the farmers being able to obtain bank credit.
Furthermore, it was observed that most of the farmers did not receive training on input use and application as was reflected by low percentage of people receiving training. The average inputs level wages were below recommended rates. The results of Gross Margin analysis showed that it was N13,944/ha. Fertilizer was the most prominent cost item, and it accounted for 59% of the total cost of production in the state.
In determining the effects of the input prices on cereal output in the state, the linear regression model gave the best fit to the data. The result indicates that about 59% of the variations in cereal output was accounted for by the prices of input included in the model. The prices of fertilizers and herbicides had significant effects (P= 0.05) on cereal output which suggests that they are important determinants of cereal output. The prior of seeds and herbicides were negative, suggesting that they have inverse effects on output while the price of fertilizer was positive, suggesting positive effect on output. However, the correlation result showed that all the prices have negative relationship with the output.
CONCLUSION
This study concluded that cereal processing and preservation in the state was profitable even though inputs levels were below the recommended rates. The input prices generally had been on the increase and this has shown weak inverse relationship with the output.
RECOMMENDATIONS
- to overcome the low participation of farmers in co-operative societies and avail themselves of the opportunities therein, farmers need to be encouraged especially now that most of the State Agricultural Programme are implemented through co- operative societies.
- The low input utilization by farmers may have risen from low level of education and lack of trainings on input utilisation. There is need for more training of farmer by the extension workers who need to be given greater attention by
- The percentage of farmers using credit requires that farmers should be assisted to obtain bank credit by reducing the administrative bottlenecks associated with bank
- Government at all levels should subsidise agricultural inputs, particularly fertilizersand herbicides to enable farmers to use optimum To ensure that farmers benefit from such subsidy, government should device means for effective fertilizer distribution to reduce the negative activities of middle men.
REFERENCES
- Abubakar, H. (1999): “Cereal as source of starch for food and pharmaceutical”: In Valencia
- A., Falaki, A.M, Miko, S and Ado, S.G (eds.) Sustainable Cereal processing and preservation in Nigeria: The Challenge in the Coming Millennium.Proceedings of the SG/2000/IAR/FMARD/ADPs, National Cereal processing and preservation Workshop22nd to 24th July 1999 held at ABU Zaria. Pp 152 – 158.
- Aderibigbe, S. O. (1973): “Sustaining Agricultural Production in a Deregulated Economy”. Economic and Financial Review CBN, Lagos.
- Ahmed B. (1985): “Scale Economies In Cereal processing and preservation: A Case Study of Daudawa Farms in Kaduna State”. Unpublished MSc thesis Dept. of Agric. Economics and Rural sociology, A.B.U Zaria
- Ajala, S. O. & Kling, J. G.(1999) “Fertility requirements of open – pollinated and hybrid cereal Genotype”. In Valencia J. A., Falaki, A.M, Miko, S and Ade, S.G (eds). Sustainable Cereal processing and preservation in Nigeria: The challenge in the coming Millennium. Proceedings of the SG/2000/ IAR/FMARD/ADPs. National Cereal processing and preservation Workshop 22nd to 24th July 1999 held at ABU Zaria. Pp 87.
