THE REGIONAL WORKSHOP ON agriculture as a business in africa : a new paradigm held on 18-22 December 2006, Ilorin, Nigeria

CONTENTS

Preface
 

Acknowledgements
 

1              Proceedings of the Workshop
 

2              Groups Discussion and Recommendations
 

3              A Note on the Field Visit
 

4              Annexures
        

               4.1         Inaugural Addresses
 

                               4.1.1    Welcome Address by Prof. I.I. Ihimodu,

                                            Director, ARMTI, Ilorin, Nigeria
 

                             4.1.2     Address by H E Mr Abdalla Yahia Adam,

                                            Secretary General, AARDO
 

                              4.1.3     Goodwill message by H E Mr Abraham

                                            Dwuma Odoom, Deputy Minister of

                                            Local Government, Rural Development
                                            and Environment, Government of

                                            Republic of Ghana
 

                              4.1.4     Address of Chief Bamidele Dada,

                                            Minister of State for Agriculture

                                            and Rural Development,
                                            Government of Federal Republic of Nigeria

               4.2         Expert Papers

                              4.2.1    Agriculture as a Business in Africa :  

                                          Current Status and Future Prospects

                                          by Robert Van Otterdijk
 

                             4.2.2    Agriculture as a Business in Africa –

                                           A New Paradigm : Case Study of West Africa

                                           by George T. M. Kwadzo and Ramatu M. Al-Hassan
 

                              4.2.3    The Green Revolution in India by A W Anwer
 

                              4.2.4     Agriculture as a Business in Nigeria: Progress,

                                            Prospects and Challenges  by I.I. Ihimodu 

                                            J A Onietan, O A Olaleye, and O. Windapo
 

                              4.2.5      Agriculture as a Business in Southern Africa

                                              by James Mweemba

               4.3         Country Papers

                              4.3.1             Agriculture in Burkina Faso by T.I. Some

                              4.3.2             Agriculture as a Business in Ghana

                                                    by Frank Amoah Adongo

                              4.3.3             Agriculture as a Business in Kenya

                                                    by Kambona Oscar Ouma

                              4.3.4             Agriculture as a Business in Mauritius

                                                    by C. Prayag

                              4.3.5             Major Constraints to Agricultural Growth

                                                    and Development in Nigeria by Tekpat K.A.

                                                    and Akpehe Ikyereve

                              4.3.6             Agriculture as a Business in Sudan

                                                    by Salih Kheir Alla Hussein

                              4.3.7             Agriculture as a Business in Zambia

                                                    by Dora Mutakwa Phiri

5              List of Delegates
 

AfroAfro-Asian Rural Development Organization (AARDO), an autonomous inter-governmental Organization, has been set up in 1962 by the farsighted leaders of Africa and Asia to serve as a forum to promote cooperation among the people of African and Asian countries for better appreciation of each other’s problems and to explore the opportunities for coordination of efforts for sustainable rural development. The Organization actively promotes South-South Cooperation as well as North-South Cooperation as some of the member countries are now the members of the Organization of Economic and Cooperation Development (OECD).

AARDO’s work programme for the triennium 2006-2008 was based on the mid term vision which focuses on doubling of the strength, doubling of the technical activities, strengthening of regional offices of AARDO, technical and financial collaboration with other international organizations, etc. The year 2006 saw the beginning of a new chapter in AARDO history i.e. organisation of regional level activities on regular basis. The year started with the organisation of the Coordination Committee meetings by the regional offices of AARDO. During these Coordination Committee meetings, the regional offices identified the current issues confronting the respective regions and suggested regional level programmes to address some of these issues. For example, the regional workshop on “Agriculture as a Business in Africa: A New Paradigm” was organised on the recommendation of the Coordination Committee meeting of AARDO for West Africa. The main objective of the workshop was to examine the current status of agriculture in Africa, including constraints, opportunities and policies for the sustainable agricultural development. This workshop helped the member countries from Africa to come together and share their experiences on the subject.

Most countries in Africa have rich potentialities for the development and growth of agriculture. The abundant arable land, adequate rainfall, surface and underground water, agro-climatic conditions and biodiversity enrich agricultural production environment in most parts of Africa. Despite these potentialities and according to FAO Production Year Book 1998, Africa’s productivity in food grains, cereals and pulses is much lower than the world’s average. The low productivity in Africa can be attributed to two major limitations namely, technical and institutional. From the technical point of view, agriculture is still traditional or in transitional stage, subsistence based and being performed by overwhelming majority of small producers with limited technical know-how and traditional tools and methods of production. Moreover, the rich natural resource potential is deteriorating. Arable land per capita is shrinking due to increase in population, the irrational human-made practices (over-cultivation) and the environmental changes that resulted in drought and desertification to the extent that adequate food production could hardly be sustained specially under rain-fed agriculture. On the other hand, there are the institutional limitations which encompass physical, social and economic limitations. Poor rural infrastructure both physical and institutional, limited market access, the high costs of technologies and the risks associated with agriculture are daunting factors to agricultural development and growth. Likewise the illiteracy among farm communities and their conformity to the traditionally sanctioned social customs, values and ritual practices have their implications on access to land, land tenures, access to production resources and on the enterprise and aggressive business spirit.

Recently the problem has been compounded by the structural adjustment programmes, the integral part of the economic reform package. Due to these programmes, public institutions and subsidies that provide farmers with access to inputs and markets are either abolished or significantly squeezed. Investment in agriculture is significantly reduced resulting in a setback to agricultural development and growth and consequently the livelihood of rural communities in general is witnessing the increasing incidences of rural poverty and rural-urban migration. This setback might result in an economic recession with its associated side effects socially and politically in countries of predominantly agrarian economies in Africa. Therefore, there is a need for refocusing national economic and agricultural policies to make farming an attractive occupation and agriculture a viable and rewarding industry to ensure strong sustainable rural economy and stability. Therefore, the new paradigm for agriculture as a business in Africa calls for a constructive strategy and sound policies for agricultural development and growth with the prime objective of realizing rewarding farm income that narrows down the gap between returns to farm labour and that of its counterpart in industry and service sectors or that which crosses the poverty line.

This workshop was organised keeping in view that the deliberations and the recommendations will set the tune for further discussion. It will provide a broad framework to the policy makers for designing policies on sustainable agricultural development. The Agricultural and Rural Management Training Institute (ARMTI), Ilorin, Nigeria, was chosen as the venue of the workshop taking into consideration its long and wide experience in the management of agricultural projects, research and development, dissemination of information and transfer of technology. The rich experiences of ARMTI helped in achieving the objectives of the workshop.

I hope that the workshop report will be found useful to the policy makers, researchers, investors, and other stake holders in Africa because it embodies rich and informative useful information i.e. expert papers, country reports and recommendations. Any comments are very much appreciated and would be considered in the future AARDO’s activities.


Abdalla Yahia Adam                                                        New Delhi

Secretary General                                                         10 May 2007

The regional workshop on “Agriculture as a Business in Africa: A New Paradigm” at Ilorin, Nigeria on 18-22 December 2006 was successfully organised with the kind support and cooperation of the Federal Ministry of Agriculture and Rural Development, Government of Federal Republic of Nigeria; Agricultural and Rural Management Training Institute (ARMTI); and Regional Office of AARDO for West Africa, Accra, Ghana.

First of all, AARDO expresses its sincere thanks to H E Mallam Adamu Bello, F.C.I.B., the Hon’ble Minister of Agriculture and Rural Development, Government of the Federal Republic of Nigeria for initiating the idea of designating ARMTI as AARDO’s second centre of excellence in Africa for the organisation of some human resource development activities. AARDO is also thankful to H.E. Chief Bamidele Dada, Hon’ble Minister of State for Agriculture and Rural Development, Government of the Federal Republic of Nigeria for extending invaluable cooperation in implementing the vision. In fact, the Government of Nigeria was very prompt in responding to AARDO’s proposal in hosting some activities on collaborative basis. AARDO also conveys its thanks to Prof. I.I. Ihimodu, Director, ARMTI and faculty members of the Institute for their support and valuable contribution in the deliberations of the workshop. AARDO’s special thanks are to Eng. O.T. Ogunmola, Director, Federal Ministry of Agriculture and Rural Development, Government of Nigeria, for sparing invaluable time to inaugurate the workshop. AARDO is also thankful to the Hon’ble Governor of Kwara State for deputing his representative, Malam Saka Mohammed, Permanent Secretary, Ministry of Agriculture and Rural Development to grace the occasion at the inaugural session of the workshop.
The presence of H.E. Mr. Abraham Dwuma Odoom, Deputy Minister, Ministry of Local Government, Rural Development and Environment, Government of the Republic of Ghana showed his commitment and deep interest in the agricultural development in the region. AARDO expresses its thanks to the Hon’ble Minister for sparing his invaluable time and to chair one of the sessions of the workshop.

AARDO is also grateful to Mr Robert Kuwornu, Director (Policy), Ministry of Local Government, Rural Development and Environment, Government of the Republic of Ghana, and Hony. Regional Representative of AARDO for West Africa, for taking the lead in the organisation of regional level activities. His coordination with ARMTI and the Government of Nigeria helped immensely in the successful organisation of the workshop.

AARDO extends its gratitude to the resource persons from FAO, Ghana, Nigeria and Zambia for their analytical and enlightening presentations which helped in formulating the appropriate recommen-dations of the workshop.

AARDO wishes to convey its sincere thanks to the governments of participating countries, namely, Burkina Faso, Egypt, Ghana, Kenya, Mauritius, Nigeria, Sudan and Zambia for sparing the services of their senior officers to participate in the workshop.

Last but not the least, the Organization expresses its thanks to the Royal Farm at Obbo Ile city for the informative briefing and hospitalities extended during the field visit. The Organization also acknowledges the cooperation of all those especially ARMTI staff, officials of the local administration, who worked behind the scene to make this workshop a great success.

H.E. Mr. Abraham Dwuma Odoom, Deputy Minister of Local Government, Rural Development and Environment, Government of the Republic of Ghana

H.E. Mr. Abdalla Yahia Adam, Secretary General, AARDO

Mr. S.K. Mohamed, representative of His Excellency Dr. Bukola Saraki, Governor of Kwara State

Eng. O.T. Ogunmola, Director, Federal Ministry of Agriculture and Rural Development, Government of Nigeria, and representative of Hon’ble Minister for Agriculture and Rural Development, Nigeria

Senior officials from the Ministry of Agriculture and Rural Development

Mr Robert Kuwornu, Honorary Regional Repre-sentative of AARDO for West Africa

Distinguished participants and faculty members

Ladies and Gentlemen,

I wish to thank God Almighty for making this day a reality at ARMTI. This is a day that we are gathered for the opening ceremony of the African Regional Workshop on “Agriculture as a Business in Africa: A New Paradigm” jointly organised by the Afro-Asian Rural Development Organization (AARDO), the Federal Ministry of Agriculture and Rural Development (FMARD) and the Agricultural and Rural Management Training Institute (ARMTI). Given the role that agriculture plays and is expected to play in the economies of most African countries, the workshop can only be described as timely. I wish to express ARMTI’s profound appreciation to the Hon’ble Minister of Agriculture and Rural Development, Mallam Adamu Bello, for deputing his representative to attend this occasion on his behalf.

One of the odds is the fact that less than 24 hours to the commencement of this programme, the People’s Democratic Party (PDP) which is the Hon’ble Minister’s party and Africa’s largest political party ended its National Convention for the election of her Presidential candidate for the 2007 General Elections. The convention lasted almost 36 hours. We wish to congratulate the Hon’ble Minister for his party’s successful National Convention. As a prominent member of the party, one would know that the Hon’ble Minister had more than enough reasons not to attend this occasion at this time. Another odd is the fact that there is now no flight between Abuja and Ilorin. The only alternative is to travel by road for 6 odd hours. The presence of the representative of the Hon’ble Minister is a testimony of the high level of confidence the Hon’ble Minister reposed in ARMTI. We are most grateful for this and would continue to strive hard to maintain that level of confidence.

In a similar vein, please permit me to thank all our distinguished delegates and participants from outside Nigeria, His Excellency the Secretary General of AARDO, the Deputy Minister of Local Government, Rural Development and Environment from Ghana, distinguished Resource Persons, Delegates and Participants for bearing with the difficulties they have had to face. We originally planned that a plane would fly them from Lagos to Ilorin. Unfortunately for now, that route is not now being operated by that only airline. Therefore, they all had to be driven from Lagos to Ilorin. In addition, some of the delegates and participants had problems in obtaining visas or in confirming their flights on time. For all of you ladies and gentlemen we apologise for the hardship and inconveniences and we acknowledge with deep appreciation your sense of sacrifice for the sake of our dear continent, Africa.

Excellencies, dignitaries, ladies and gentlemen

I wish to especially note that this occasion is of great importance to us in ARMTI because it has become possible again for the Institute to demonstrate its relevance in the international arena. For many of you who have been familiar with ARMTI, it would be recalled that the Institute for many years served as the training centre of the Commonwealth Secretariat for all Commonwealth African countries. However, the political situation in the country from the mid-1990s led to the abandonment of that programme. Today, many years after, ARMTI has bounced back to resuscitate such a programme. Our relentless efforts and continued improvement in the discharge of the Institute’s mandate backed by the support of our Ministry through the present Hon’ble Minister have led to the recognition by AARDO, which has designated ARMTI as an International Centre of Excellence in capacity building for the agricultural and rural sector. This is important as it is the second centre to be so designated thus far in the African continent.

On behalf of the Institute, I wish to show deep appreciation to the Hon’ble Minister of Agriculture and Rural Development, the Hon’ble Minister of State for Agriculture and Rural Development and His Excellency the Secretary General of AARDO for their efforts in making the arrangement a success. It is therefore with a great sense of accomplishment and fulfillment that I heartily welcome you all to this epoch making occasion. I welcome the many top government officials including my Hon’ble Minister of Agriculture and Rural Development, the Deputy Minister of Local Government, Rural Development and Environment from Ghana, and His Excellency the Secretary General of AARDO among others. I also particularly welcome the delegates and participants from the various African countries and India to this workshop, many of whom may be visiting Nigeria for the first time.

As you might have observed, Nigeria is a very warm and hospitable country. It is a land that is greatly endowed and flows with milk and honey. Your participation in this programme is an opportunity for you to taste of the milk and honey. We implore you to please have your maximum fill, as we are confident that our source cannot run dry.

Excellencies, dignitaries, ladies and gentlemen

Permit me to briefly introduce you to the Agricultural and Rural Management Training Institute, (ARMTI) which is hosting you for the next five days. ARMTI is a Federal Government Parastatal of the Federal Ministry of Agriculture and Rural Development. It was established in 1980 following a Committee Report which located the relatively poor performance of the various agricultural projects, especially those that were externally funded to the dearth of manpower to manage them. ARMTI was thus created to provide the required capacities for their management. Our mandate is to improve management practice in the agricultural and rural sector through appropriate management interventions via management training, applied research, consultancy services and the dissemination of the research findings. We are proud to say, without being immodest, that we have successfully impacted positively not only on the agricultural sector of Nigeria, but indeed, that of many African countries. For example, we have succeeded in indigenising the management of the various agricultural projects in Nigeria, especially the Agricultural Development Projects in the 36 States and the Federal Capital Territory, Abuja.

As I earlier mentioned, all of the Commonwealth African countries benefited from our training programmes for the period the collaboration between the two lasted. ARMTI has continued to maintain collaborative links with many national and international agencies including the West African Management Development Institutes (WAMDEVIN), the Food and Agriculture Organization (FAO) The World Bank and the American Peace Corps, among others. Currently, ARMTI is serving as the focal institution for the achievement of the mandate of the Agricultural Management Training for Africa (AMTA), which was established by a consortium of Africa Development Bank (ADB), the World Bank and the Africa Union (AU).

I strongly believe that the relationship between AARDO and ARMTI will turn out to be fruitful and beneficial not only directly to the two organisations but also to all member countries in Africa and Asia. I assure your Excellencies, the representative of the Hon’ble Minister of Agriculture, Nigeria, the Deputy Minister from Ghana and the Secretary General of AARDO, the Government of Nigeria and all you distinguished delegates and participants here today, that ARMTI would do all within its capacity to ensure the success of the collaborative arrangement with AARDO, and make Nigeria and the other member countries proud. While appreciating the support of the Federal Government for ARMTI, I wish to call on her through my Hon’ble Minister for improved funding and provision of training facilities, equipment and library facilities to enable the Institute perform better in the discharge of her mandate. A quick inspection by the representative of the Hon’ble Minister of the improvement made in physical and training facilities in the Institute in the last one year would convince him that any resources granted the Institute would not be wasted.

Once again distinguished ladies and gentlemen, I thank you all and welcome you very warmly to ARMTI.

Thank you and God bless you.
 

H.E. Mr. Abraham Dwuma Odoom, Deputy Minister of Local Government, Rural Development and Environment, Government of the Republic of Ghana

Eng. O.T. Ogunmola, Director, Federal Ministry of Agriculture and Rural Development, Government of Nigeria, and representative of Hon’ble Minister for Agriculture and Rural Development, Nigeria

Mr. S.K. Mohamed, representative of His Excellency Dr. Bukola Saraki, Governor of Kwara State

Senior officials from the Ministry of Agriculture and Rural Development

Prof. I.I. Ihimodu, Director, ARMTI

Mr Robert Kuwornu, Honorary Regional Represen-tative of AARDO for West Africa

Distinguished participants and faculty members

Ladies and Gentlemen

On behalf of Afro-Asian Rural Development Organization (AARDO) and on my own behalf, it gives me great pleasure to welcome you all to this Regional Workshop on “Agriculture as a Business in Africa - A New Paradigm”, being organised here at the Agricultural and Rural Management Training Institute (ARMTI). The workshop is being jointly organised by the Federal Ministry of Agriculture and Rural Development, Nigeria, ARMTI and AARDO. I am grateful to the esteemed Federal Ministry of Agriculture and Rural Development, Government of Nigeria and the ARMTI for their support in materialising this workshop. I am pleased to mention that the workshop is being held for the first time at ARMTI - hoping for close cooperation in the future between ARMTI and AARDO. AARDO is also grateful to the participating member countries for sponsoring their senior officials to the workshop. I am also thankful to the Resource Persons for their invaluable contribution to the workshop. Last but not the least, the Regional Office of AARDO for West Africa, Accra, Ghana, deserves special thanks for taking the lead in organising the regional level activities in the continent.

Excellencies, Dignitaries, Ladies and Gentlemen

Established in 1962, the Afro-Asian Rural Development Organization is an international, inter-governmental institution in the field of rural development whose headquarters are located in New Delhi, India. AARDO’s membership stands as 28 member countries, 14 from Asia and 13 from Africa as full members and one associate member from Africa. The membership of the Organization will go up as the esteemed Governments of Gambia and Malawi have conveyed their decision to join AARDO as full members. AARDO enjoys Observer status with various UN and other international organisations like Food and Agriculture Organisation (FAO), International Fund for Agricultural Development (IFAD), United Nations Conference on Trade and Development (UNCTAD), United Nations Educational, Scientific and Cultural Organisation (UNESCO), International Cooperative Alliance (ICA), etc. The main sources of the funding directly and indirectly come from the membership contribution of member countries.

AARDO acts as a catalyst and provides a forum for the member countries in the continents of Africa and Asia to jointly discuss their problems, exchange views, ideas, experiences and information in the field of rural and agricultural development, pool their resources, and to make concerted efforts, wherever possible, to improve the quality of life of their rural people. AARDO’s strategies for rural development are focussed on three broad areas i.e., human resource development, financing of development pilot projects and dissemination of information.

Excellencies, Dignitaries, Ladies and Gentlemen

AARDO has been persistently seeking to collaborate with the regional and international organizations for the benefit of rural people by pooling over resources and sharing of experiences and expertise. Therefore, I am grateful to the FAO Headquarters and Regional Office for Africa for their participation and contributing an expert paper in this workshop. AARDO is in the process of signing the Mutual Collaboration and Assistance Agreement (MCAA) with ARMTI, as another centre of excellence in training and research in Africa. In fact, ARMTI is the second centre of excellence in Africa, apart from the Egyptian International Centre for Agriculture (EICA), Cairo. AARDO is also looking for another centre of excellence in South and East Africa. By such collaboration, AARDO would increase its coverage and diversify its technical activities and hence its benefits to the needy rural people.

Excellencies, Dignitaries, Ladies and Gentlemen and Guests

Universally, the practical definition of agriculture considers agriculture as a science or an art of raising crops and livestock. Historically, only about 12,000 years ago, the human beings started to grow their food rather than merely collecting wild plants and hunting. Crop and plants of economic significance which attributed to the early selection of cultivators have remained practically the same. Although, the plants and animals on which the global food security system depends have remained largely unchanged, the land and farming techniques have undergone rapid changes to keep pace with the demand of the increasing population for food and other non-food agricultural commodities. In economic perspective, a great importance has been attached to agriculture in the creation and growth of wealth of nations by the economic theories throughout their evolution since the sixteenth century. According to the physiocrats doctrine of seventeenth/eighteenth century like Duesnay (1694–1774), agriculture is the only one reproductive occupation by virtue of the fact that it offers more returns to the producers than their investment of capital. In contrast, they considered non-agricultural occupations as sterile in the sense that their returns are not more than their costs. The physiocrats, in addition, recognized the great importance of capital in the formation of wealth. Consequently, huge capital investments were made to bring about improvement in agriculture land, agricultural implements and livestock which raised markedly the productivity of French Agriculture. Likewise, the same economic thoughts have been carried over by some proponents of the classical/neo-classical economic theory. Malthus theory of population (1789) links strongly agriculture and population growth in terms of food production and material welfare. Malthus pointed out that the power of population to grow is greater than the power of earth. Based on neo-classical approach, the theory of dual economy by Lewis (1954) recognizes two fundamental resource flows from agriculture into the national economies of most developing countries with other connections as well. In this regard, agriculture supplies cheap labour force of zero or low marginal productivity as well as surplus food to non-agricultural sector, mainly the industrial sector. Other connections are: (a) agriculture is often a major source of demand for industrial products; (b) agricultural exports serve as a source of vital foreign exchange which permits the import of goods to industry. Similarly, Shultz, Coal and Hoover argued that efforts to increase food supply in agriculture sector should receive the highest priority. Allied with this, Kuzents (1959) and Willam Nicholls (1963) argued that achieving and sustaining reliable agricultural surplus and a marked rise in productivity per worker in agriculture is a pre-condition for the industrial revolution in any part of the world. Historical evidence also supported this argument. Examples are (a) the British Industrial Revolution in the eighteenth century which was preceded by the agricultural revolution; and (b) the case of Japan, Russia and China which manipulated agricultural surplus in order to stimulate and promote their industrialisation.

Given the geo-morphological structure, most parts of African continent have rich potentialities for the development and growth of agriculture. The abundant arable land, adequate rainfall, surface and underground water, agro-climatic conditions and biodiversity enrich agricultural production environment in most parts of Africa. Despite these potentialities and according to FAO Production Year Book 1998, Africa’s productivity in cereals and pulses is much lower than the world’s average. The low productivity in Africa can be attributed to two major limitations namely, technical and institutional. From the technical point of view, agriculture is still traditional or in transitional stage, subsistence based and being performed by overwhelming majority of small producers (59 per cent) with limited technical know-how and traditional tools and methods of production. Moreover, the rich natural resource potential is deteriorating. Arable land per capita is shrinking due to the increasing number of population, the irrational human-made practices (over-cultivation) and the environmental changes that resulted in drought and desertification to the extent that adequate food production could hardly be sustained specially under rain-fed agriculture. On the other hand, there are the institutional limitations which encompass physical, social and economic limitations. Poor rural infrastructure both physical and institutional, limited market access, the high costs of technologies and the risks associated with agriculture are daunting factors to agricultural development and growth. Likewise the illiteracy of most farm communities and their conformity to the traditionally sanctioned social customs, values and ritual practices have their implications on access to land, land tenures, access to production resources and on the enterprise and aggressive business spirit. Also there is the question of imperfections of agricultural markets of land, labour, capital and commodity as their prices and allocation are not determined solely by the supply and demand and consequently agricultural markets are believed to be economically inefficient or they failed to optimize or maximize economic agricultural output. Recently, the problem has been compounded by the structural adjustment programmes, the integral part of the economic reform package. Due to these programmes, public institutions and subsidies that provide farmers with access to inputs and markets are either abolished or significantly squeezed. Investment in agriculture is significantly reduced resulting in a setback to agriculture investment, agricultural development and growth and to the livelihood of rural communities in general witnessed by the increasing incidence of rural poverty and rural-urban migration of the strong elements of rural population - the youth. This setback might result in an economic recession with its associated side effects socially and politically in countries of predominantly agrarian economies in Africa. Therefore, there is a need for refocusing national economic and agricultural policies to make farming an attractive occupation and agriculture a viable and rewarding industry to ensure strong sustainable rural economy and stability. Therefore, the new paradigm for agriculture as a business in Africa calls for a constructive strategy and sound policies for agricultural development and growth with the prime objective of realizing rewarding farm income that narrows down the gap between returns to farm labour and that of its counterpart in industry and service sectors or that which crosses the poverty line. In order to achieve this objective, farm models have to be worked out for those countries to ensure a reasonable farm income above poverty line. Any farm model, in this regard, must be based on four components, namely: physical, technological, institutional and policy. The physical components of farm structure should include the optimum farm size, crop mix and degrees of diversification and intensification that will secure high returns to farm labour. The physical components should also include viable non-farm enterprises to supplement farm income.

Secondly, the technological components of the farm structure should take into account land-saving, labour saving and post-harvest technologies that will result in an optimum output and in the removal of the drudgery of farm workers to make farming an attractive occupation.

Thirdly, the institutional component must include the coherent family, social, financial and technical institutions that are capable of rendering their services to rural communities to sustain their family farming. Lastly, the policy component of the farm structure should encompass the provisions of insurance for the farm income; medium and long-term credit; public investment in physical and social infrastructure; concessions for family farming and rural enterprises, farmers’ pension and insurance; and the compensation premium for inevitable risks to narrow down the rural-urban gap.

The strategy must take into consideration the challenges to agriculture in the New Millennium. Among these challenges are: the demographic changes, the shrinking arable land and other natural resources per capita, factor imperfections, environmental and climatic changes, the implications of the Agreement on Agriculture of WTO and globalization in general. The strategy also has to address the inherited risks associated with agriculture, namely factors and natural risks. The strategy needs to be backed by enabling policies. The enabling policies should be devised so that while allocating resources for development, rural biased policies should be adopted in such a way that new investment focuses on the provision of adequate, social, physical and institutional infrastructure and on creation of more employment opportunities for rural people. An enabling policy also should be devised to create linkages between farm and non-farm enterprises, hence further linkages culminating in national and international market. Launching of crop/income insurance programmes could also be justified on the grounds of the many risks associated with agriculture. The persistent government commitments to the prescribed strategy is seen as a prior enabling policy that would lead to the enforcement of other polices.

Excellencies, Dignitaries, Ladies and Gentlemen and Guests

Before concluding, I must add that what have been presented are some ideas and thoughts that might highly enrich the deliberations and discussions on the subject of this regional workshop.

I, once again, thank all the dignitaries for their gracious presence. AARDO is indeed indebted to Prof. I.I. Ihimodu and faculty members and staff of ARMTI for hosting this regional workshop and for making the excellent arrangements that would lead to successful conduct.

I wish successful deliberations and fruitful recommen-dations and comfortable stay.

Thank you
 

1.1      Inaugural Session

The Inaugural Session of the workshop was attended by the senior officials of Federal and State Governments of Nigeria, Government of Republic of Ghana, delegates from eight (8) African countries as well as the Management and staff of the host Institute, ARMTI, Ilorin. The ceremony was opened with a prayer led by Dr. (Mrs.) C. I. Jolayemi of ARMTI. This was followed by the Nigerian National Anthem.

Prof. Ihimodu welcomed all the dignitaries and delegates to the workshop. He particularly expressed profound appreciation to the stakeholders in the workshop who in spite of many odds still endeavoured to attend the opening ceremony. He noted that the occasion is of great importance to ARMTI because it affords the Institute to demonstrate its relevance in the international arena. He acknowledged the support of the Hon’ble Federal Minister of Agriculture and Rural Development in the recognition of ARMTI by AARDO as a centre of excellence in capacity building for the agricultural and rural sector. Indeed ARMTI is the second centre to be designated by AARDO in the African continent. He briefly introduced ARMTI and its history to the delegates. He stated that mandate of ARMTI is to improve management practices in the agricultural and rural sector through appropriate management interventions via management training, applied research, consultancy services and dissemination of research findings.

He stated that ARMTI has successfully impacted positively not only on the agricultural sector of Nigeria but also that of many African countries. Finally, he expressed optimism that the relationship between AARDO and ARMTI will turn out to be fruitful and beneficial not only directly to the two organisations but also to all member countries in Africa and Asia. Full text of the address is at Annexure 4.1.1.

His Excellency Mr. Abdalla Yahia Adam, Secretary General, AARDO welcomed all delegates to the Regional Workshop on “Agriculture as a Business in Africa: A New Paradigm” being jointly organised by the Federal Ministry of Agriculture and Rural Development, Nigeria, ARMTI and AARDO. He expressed gratitude to all stakeholders for actualising the conception of the idea of the workshop. He gave the historical background of AARDO and its mandate. He emphasised that AARDO’s strategies for rural development are focused on three broad areas viz: human resource development, financing of development pilot projects, and dissemination of information. He also stated that AARDO persistently seek collaboration with regional and international organisations for the benefit of rural people by pooling over resources and sharing experiences and expertise.

Further, in his address, he highlighted the importance of agriculture in the creation and growth of wealth by nations. He observed that given the geo-morphological structure, most parts of African continent have rich potentialities for the development and growth of agriculture. He stressed the need for refocusing national economic and agricultural policies to make farming an attractive occupation.

Finally, he mentioned that strategy for development must take into consideration the challenges to agriculture in the New Millennium. Among these challenges are the demographic changes, shrinking arable land and other natural resources per capita, factor imperfections, environmental and climatic changes, the implication of the Agreement on Agriculture of WTO and globalisation in general. He thanked the dignitaries for their gracious presence at the workshop and wished delegates fruitful deliberations. Full text of the address is placed at Annexure 4.1.2.

On the occasion, the Hon’ble Deputy Minister of Local Government, Rural Development and Environment, Government of the Republic of Ghana delivered Goodwill Message. In his message, Excellency expressed his pleasure to be at the opening ceremony of the maiden workshop by AARDO Regional Office for West Africa. He also seized the opportunity to thank His Excellency the Secretary General of AARDO for inviting him to the workshop.

He observed that AARDO provides a forum for its members to discuss common problems as well as evolve strategies and solutions to promote social and economic development in the areas. He expressed delight on the hosting of the workshop by ARMTI. He stated that Ghana’s rural development has focused on improving living standards of the rural population through a number of interventions which have positive bearing on agriculture. He mentioned that a developed rural economy will serve as a sound base for agriculture as a business. He hoped that rural development will not suffer at the expense of urban development.

He informed the workshop that Ghana has instituted an annual Farmers’ Day. The day is set aside to recognise the contributions farmers make to the country’s economy. This has boosted the ego of the farmers. Finally, he expressed optimism that African farmers could triple the food yields per hectare and quickly end chronic hunger. Full text of the Goodwill Message is given at Annexure 4.1.3.

The Workshop was inaugurated by Eng. O.T. Ogunmola, Director, Federal Ministry of Agriculture and Rural Development, Government of Nigeria, the Representative of H.E. Chief Bamidele Dada, Hon’ble Minister of State for Agriculture and Rural Development, Government of the Federal Republic of Nigeria who also delivered His Excellency’s address. Recognising the presence of the Hon’ble Minister from Ghana and the Secretary General, AARDO, the Representative thanked them for sparing their valuable time to be in Nigeria on the occasion. He also welcomed the participants from eight members countries and resource persons for their presence.

He mentioned about the Executive Committee meeting of AARDO which was held in Nigeria for the first time in September 2006. He said that the link between AARDO and ARMTI is commendable and will be supported by the Government. For AARDO, to make ARMTI as one of the centres of excellence would benefit both the organisations on subjects of mutual interest. He added by saying that AARDO can offer assistance in improving the quality of the Institute’s library through books, journals, etc., from her stock and other sources that can be facilitated.

The Hon’ble Minister wished that participants would be able to experience the hospitality in Nigeria and her rich culture. He further mentioned that agriculture in Nigeria has remained a major focus of the present administration since its inception in 1999. The Federal Government therefore devoted a lot of resources to uplift the sector and the results became so evident. There has been improvement in the productivity of the farmers and also in the food security situation through various innovative programmes embarked upon by the government moving agriculture from subsistence to business level resulting in poverty alleviation. The financing of agriculture through budgetary allocation has significantly increased during the present administration. Besides, government has embarked upon various programmes such as the National Special Programme on Food Security, the National Fadama Development Programme and the Programmes on financing the sector as well as marketing of products. Full text of the Hon’ble Minister’s address is placed at Annexure 4.1.4.

The Kwara State Government was represented by Malam Saka Mohammed, Permanent Secretary, Ministry of Agriculture and Rural Development. He welcomed delegates from within and outside of Nigeria to Kwara State – a State of Harmony. Kwara is special in the sense of harmony and leading light of agriculture in Nigeria. He enlightened the delegates about the various programmes embarked upon by the State Government to support agricultural development. He placed emphasis on the promotion of commercial agriculture in Nigeria which now serves as a model for other states in Nigeria. He also mentioned that the government is encouraging youth involvement in agriculture by creating enabling environment. Another aspect mentioned is the development of infrastructure such as cold storage facilities to promote export of vegetables and other farm produce. The initiative taken by the Governor of Kwara State made the Federal Government to change policies on agriculture. Special fund had been set up to meet the training requests of the youths. These new generation farmers, who are being trained, will lead the country. The National Youth Agriculture Policy is being introduced by Federal Ministry of Agriculture and Rural Development to motivate and train the youths. The Government is also ensuring enhanced flow of funds through banks to meet the credit requirement of the farming community.

On the conclusion of the Inaugural Session, the faculty member of ARMTI presented Vote of Thanks. On behalf of ARMTI, he thanked all the dignitaries and delegates. He highlighted the role of AARDO and ARMTI in organising this workshop. He thanked AARDO for collaborating with ARMTI to organise the workshop and wished a long and sustainable relationship between the two. He also thanked the participants and resource persons who chose ARMTI, as they may be having other opportunities in their land. The Session was closed with the recitation of prayer.

1.2         Business Session

Presentation of Expert Papers

Technical Session I

Chairman: Mr. Abraham Dwuma Odoom

Expert Paper on “Agriculture as a Business in Africa: Current Status and Future Prospects” by Robert Van Otterdijk

‘The speaker defined agri-business as all the activities that take place in the agricultural sector with the aim to make economic gain. He also shared some lessons learnt from the past experiences. He stated that the prevention of crop losses should start with proper planning of agricultural production, and also that the farmers producing cash crops need to understand ‘commercial farming” and the concept of profit margin rather than price per kg. The technology is often not the problem in the development of agri-business, but motivation, management skills and quality awareness are more essential. Hence, no agri-business component can develop in isolation: it has to be part of an integral development of the whole commodity value chain.

He further mentioned about the constraints of agri-business in Africa where interventions and support are on ad-hoc basis. They are in short-term context, and not demand-driven. He elaborated the weaknesses of agriculture such as lack of entre-preneurship, irregular and insufficient supply of required volumes and quality of raw materials. He further mentioned that another important constraint is the export market in EU which does not open up, and also the difficulties faced to beat the competition from imported products due to quality constraints.

He also revealed the opportunities for agri-business in Africa due to the improved macro-economic enabling environment and also because of the abundance of natural resources available for exploitation for diverse agricultural production almost round the year; and the rising opportunities appeared as the regional Economic Organisation is constituting big sub regional markets.

He further discussed the strategies to develop agri-business in Africa by focusing on national and sub-regional trade and import substitution. He insisted on the value chain analysis to determine the technical, financial and commercial feasibility of production and marketing processes, to increase quality throughout the chain, to concentrate on core competences, to distribute benefits fairly, and to cope with the effects of globalisation. Lastly, he stressed on commodity-based approach for a stable agri-business in the African continent. .<For full text of the paper, please E-mail us>

Interventions

Prof. I.I. Ihimodu (Nigeria) : The paper is based on the assumption that technology is available to the farmers, and does not agree with the statement that technology is not a problem, but its management, especially at micro level is difficult.

Response: Although there is need to improve level of technology but it is also important to develop capacity to properly manage available technology that is basically related to maintenance culture.

Participant (Ghana): I am concerned about technology. Farmers are usually not involved in the process of technology development. Consequently, there are problems in adoption of such technologies.

Response: Organising farmers on the basis of commodities is one way of involving them in the process of developing technologies for specific commodities.

Participant (Nigeria): We have different levels of agro-processing technologies. Appropriate technologies are not available. Some modern technologies are heavy and sophisticated. They are usually not suitable for adoption by local farmers whose farmlands are small and fragmented. There should be clear policies, environment supported by research data for the adoption of any technology.

Participant (Nigeria): To what extent does globalisation affect commercial agriculture?

Response: Globalisation has both positive and negative effect. However, there is need for African farmers to produce high quality products to be able to compete in the international market. Globalisation should be read in right context.

Participant (Ghana): African farmers’ position in the international market is weak. They should therefore, concentrate and improve their position in the local market. For example, school feeding programme should start with feeding locally produced rice. In the Northern part of Ghana, shea butter industry is developing to produce high quality shea butter for export to China. Only good quality products could sell in the international market.

Participant (Egypt): African countries should learn from Asia. The Asia did not neglect its traditional technologies. Rather, it improved on them to produce what they need. African countries do not necessarily need the most modern farm equipment. Also, why should we look up to markets in Europe and America? We should trade among countries within Africa and Asia.

Response: It is the scale of production and feasibility studies that will determine the level of technology required. Each African and Asian country should set its own standard of goods quality. Europe, for example, sets own standard to protect its market.

Participant (Sudan): There is a need to develop rural infrastructure in order to reduce urbanisation and at the same time promote agriculture as a business. Is privatisation a good approach to develop agri-business?

Response: Political elements should be removed from privatisation process.

Concluding the discussion, the Chairman mentioned that technology and its maintenance is the real problem. As far as globalisation is concerned, the Speaker has tried to prove both negative and positive aspects. There are many positive aspects like Ghana got a big order from China for the supply of ‘cassava’. However, some issues like import of cheap rice are affecting the farmers. Agriculture should be carried out as a business. A study conducted in Ghana shows that a particular farmer effectively worked for only 70 days in a whole year. Other days of the years were spent attending social functions. In this particular case, agriculture cannot be said to have been taken as a business. The Chairman thanked the Speaker for the informative presentation.
Session II

Presentation of Country Papers

Chairman: Prof. I.I. Ihimodu

Country Paper on “Agriculture as a Business in Mauritius” by C. Prayag

Mauritius mainly depends on agriculture, manufacturing, tourism and textile industries. The agricultural sector is dominated by sugar cultivation which occupies most of the arable land. However, there has been a constant decline in the sugar industry over the years due to rapid growth of the manufacturing industries, tourism industry and that of the financial services. There have been many constraints in the growth of agricultural sector, mainly the lack of facilities and professional skills, especially in biotechnology among the Afro-Asian countries due to the absence of regional technical cooperation network. Biotechnology and good seeds are important factors for improving agriculture.

Agriculture presently faces the challenge of sustainable productivity and improved security on a reduced area of land under cultivation. Marketing, distribution and planning aspects of agricultural products vary according to the trends in different countries. He stressed that there was an urgent need for a new scheme to be set up considering globalisation.

The main cash crops in Mauritius are sugarcane, tobacco, tea, maize, etc. There is another matter of concern with the agricultural condition in Mauritius, namely, that the agricultural lands are getting used for other operations like construction of hotels and residential complexes which is adding to the decline in the agricultural sector. This became clear when the share of agriculture to GDP declined from 6.3 per cent in 2004 to 5.8 per cent in 2005. Employment in agriculture was 49,000 in 2005, same as in 2004; employment in large establishments decreased by 1.5 per cent from 22,645 in 2004 to 22,990 in 2005, while employment in small establishments increased by 1.3 per cent from 26,010 to 26,355. There is a decline in the sugarcane industry as the area under sugarcane in 2005 was 71,583 hectares, which was 1.9 per cent lower than 72,955 hectares in 2004. Tea and tobacco production also saw decline during the same period. Also there was decline in the production of food crops by 13.3 per cent from 111633 tonnes in 2004 to 96782 tonnes in 2005.

There is a need to develop a strategy to produce HACCP standard agricultural products rather than selling traditionally door to door, at gates, market and fair. <For full text of the paper, please E-mail us>

The Chairman thanked the participant for the informative presentation. He mentioned that Mauritius is very small country and highly dependent on sugar. But now its dependence on sugar is declining due to globalisation. Government is introducing necessary policy changes to cope with the new order. Mauritius can be a model for other countries.

Country Paper on “Major Constraints to Agricultural Growth and Development in Nigeria” by Tekpat K.A and Akpehe Ikyereve

Before her independence in 1960, agriculture was the mainstay of the Nigerian economy and the country was able to produce more than enough food and agricultural raw materials for her consumption. The surplus was then exported to earn foreign exchange contributing to over 70 per cent of the country’s Gross Domestic Product. The scenario changed 20 years after independence when Nigeria could no longer produce enough to feed her fast growing population and cope with the ever-increasing demand for the agricultural raw materials by the growing industrial sector. Poor rural infrastructural development, socio-economic problems, environmental problems amongst others is some of the constraints against the development and growth of agriculture in Nigeria.

The First National Development Plan from 1962-1968 was horizontal summation of projects and capital estimates of the four regional and federal government. However, the amount was low to achieve the objectives except modernising agricultural production in the country. The Second Development Plan did not also treat agriculture the way it deserved and had no noticeable impact. However, agricultural growth during this era was appreciable. During the year 1975-1980 the third national development plan brought agriculture to the limelight. It was during this period that the national Accelerated Food Production Programme, conceived during the 1970-1974, took-off. However the growth rate of the sector was low. The fourth national development plan during the year 1981-1985 introduced green revolution programme with an objective to procure and distribute the farm inputs.

The first Nigerian Agricultural Policy was initiated in the year 1988 as a part of the framework and action plans of the Federal Government to achieve overall economic growth and development. The aim of the policy was the attainment of self-sufficiency in all the sub-sectors of agriculture and the structural transformation necessary for the overall socio-economic development of the country. However, there are numerous constraints to sustainability in the growth and development of agriculture. The major hindrances in the growth of agriculture include physical, environmental/biological, socio-economic, scientific and technological, infrastructure, inadequate agricultural inputs, lack of storage and processing facilities and political constraints.

As a part of the efforts to overcome the problems in agricultural sector, the present government has placed high premium on reforming the agricultural sector. These reforms are geared towards the creation of enabling environment to attract investments. In fact, some of these reforms have started yielding positive results, particularly in the area of promotion of agricultural produce. The President also took initiatives in rice, cassava, vegetable oil and tree crops development, livestock and fisheries development programmes.

Since the present Government has assumed the office, it has been pursuing privatisation policy vigorously. Some agro-allied processing companies were brought in for increasing efficiency and reducing wastage of agricultural produce. Infrastructural development is also one of the important commitments the government has fulfilled covering communication, road construction, electricity etc. The government also introduced some socio-economic policies aiming to achieve over all economic reforms. These reforms have already started benefiting the agricultural sector by giving the sector power to access their fund requirement.

Nigerian people embrace agriculture as a business and there is a need to create an enabling environment to keep the farmers in profitable agricultural production. To overcome the constraints it is important to encourage people to take up agr