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BUSINESSDAt www bU~lnes~dayonline com

E-mail: ag@buslnwdayonlinuom T.I.: 0803 124 0411 Wednesday 13 June 2012

Hov" manufacturers can tap into agriiculture to increase profit us. 1hM wtII incft:ue demand fOI

W

h ;popul.llon

.nd .urcer re , ource.

cI u e 10 rI.'nl alob.1 demand

fot food,

co~.u

mer

,ood.

manuf.cture · , would

~hllW;to pey men lon...~~,;m~ ~lnlhflrp~m.rpa

II hat therriore t Kame YftJ imporwu for COIl .WIIer fIOIIdI

mon' ~phistlCllted

ullllon

WlUlIIO_rtycompo:ti1veIOtUe

more

lnt~

In cr\bu5inea

10 austaln thetr n

I'll

mIIleriab:

.uppl, chlln II tu.on.ble Gr.nt Hllch

leolol

nu,ellsl, "ccralure, Hid durioc lbe:IuIine-..o.y Forum on -Enhandn, ' plculture V.lue Chilo fOI Economic Pro.perll,· held In LIllO. ~tJr: -wehM"I60 rnUIion people In NJ,el~' .nd Ih.1 wID pow 10 ~I 400 million by 2050. ~ria'l poput.don will thm be bill eo than Ihe

..........

prioriry In the ATA 10 Indude

CUAW. rice. IKIrJhUm. cocoa. and lomilloes, me Aid k WIJ Important b maoufacrurm 10 Invna Of If" lnYOtYed aIont the ATA In IIUCh areas asln1plioo Ind mechlnilltion Ind Inpull tupp!y. for crops thai nftd It. 10 enstlIt' ttisb J1dds.. Mlnufacturen,. Iccordin, 10

be able 10 continue Imporllnl food and hIS to ~'OUkI nOlI

~domn6cproducdon..

1I.leh, who uld Ihls alS Import."1 In lelm. of Ihe bllince of plymenl Ind 10 eftSUre more reldUy IHo,dlble .upply for mlnufkfUrers, Idded. l1Ie 1100.1 IIflbutin~ IndUlillY II P"llhrouch I 1ipll6can1 h1lfl.OI'TMUon due to ~ Ind envlronmmtal prellllf'eL Selree ruourcet combined .... Ith Increulnl Ilobll dernend ha'fIII!!J'Igrred UlUque

.....

~ com pin Ie. Ire .eltlnl ob"lele.-from Ihe rbln, demlnd In Ilobll food COnIUIIIptkIn 10 the InaaIin& COIl 01 commocblies.. 1bey we

..............,....

in lheIJ IUppty chain; Accordln, 10 him, Ac(enlun . I ,lob .. 1 mlnl,emenl con.uhinl.

'"""--

"'"""""'" ..............

a... )'Hf~ 1he country

_' - -""'_ manufKturtn&co "f*lkI'"

InItitutioCli of produce. value chain Iinbp and vtrtuaDy all

food.

puntn, pre.uure on food .uppl" which I, currently .bout '10 b1Dlon (about NI.3

her.aan_lrM!tIin~ 10 pnKIum tueh . . .an:h,

src

m.llodeluln • • corn .yrup. dlellt)' nbr~. com 011. ethyl Ilcohol. el..IYI chip.. hip qUllity C.,.."I nour, COCOI bUller, COCOI RqUOI.

lechnoloty teTylce. Ind ouuou,clnl com piny . colilbonlies wllh dien" to help Ibem become hl,h . pedornwx:e butioaRt and pemments. lib wonk; ·We lIe foc:lned on the backwards prOCHl of the .upply chain of our cllenl •• p.oyldin, contultlney ter¥tces In the IUpp!y chaIn.~", from p.oduellon 10 proceulo,

Ih.ou,h plcklslns 10 dlslrlbutlon We deal with muitinMionlh enlerl.nt Afric.a. Soulh Afrlun com pin let enlnln, At.lce Ind African companinm.r:m~

One of lhe by Ihlns. Ibll Afrlcln love.rnmenlt worry Ibout It food .eeurIIY. We focu. on the pollele. Ind lIn1tev lrea. In Nlcerla. _ are contu!!lnl on the YIIlue chalnol~forour

""",,'

JuIJet AnIImmah. direaoc.

hn p.etenillion I' Ihe forun!, IIld II I. eilimiled Ihll Niserll would tpend $167 billion (N15.115 Irillk)n) on Ct)ft'lWMl roods. makinck!he

ruj 1eCI0I;. Accentwe. in

larpspmdnln~

Afria Ind IKond IUlhul In Africa. aftn South Afro. Sbe tMmon harped on the need for local manuflClUlft1 10 F In¥OiYed In .,-kuIture III.ed on Acceoture ruelrch, .he '1Id . JlW mllerlalt CO.1I eln connhule up 10 Sf; IJerce.nI of mlnufactult'u' upe:n..ws. while all other com IncIudInc

."ff ,...,....upente conilitule 44

Ao ..nmlh (uflblr nOled thll for .ome lonl mlnufleturen. e"eD I 10 percent reduction In IIW mltertll. cost cen ITlnsUle InLO 25 to 35 pen:ent axreIn poll RUlrJfn. and thettfore Ufled manufacturers 10 rac:h down the value chain In lbeir nIW ma!erlaIlUppIy II pobIaI trade IUrplUJeI have thinned out. mnninI they wtI condnue 10 Imparl " .... mll~rllb II

---

She died I tepon by Ihe Food Ind Asrlcullural Orllnllliion (FAO) which Ibowtd balance of IJ1Ide oIwp JlobaI uponert of palm In 2010. IIJfr\I the Unfled Stilet hili YftJ 1I,. defidlln p1llm upon Ind doet nol haft the capKtry 10 pve OUI ~

Anlmmlh Iben fOCURd on the Al"lcUhural TTIDIIonnIIIIon A&mda (ATA) of the NlFriln IOftmme.nt. which i. llkin, off hom the lo"e.nment 10 the prlYlle teClor core Irelt .uch I I fenlllzn RlPPUn. markednl

IOfJhwo

Ilow. IUl8e. paper and 10 on. wblc:b m needed In InduI!riet. IS wdI .. In the value chainI of aopI m.r: art! needed 10 thdr ,....-mah R1ppIy chain. To fund Ind openle .uch blchrard (nlevellon. AIWmDIh pvc tome opdom which Ihe mlnuflCHuln, complny ml, chooae from. They Include finincinlllld opelllln, Ihe flcllllY wllh lnlemal rtIOUtCU; pannerin& wllh I .uppller to fund Ind openue I proc:eMInl 'adlily . . I foi-nl "I't!fI1~ fldUtatq the ~ 01 • new tuppIier' which opentf'l Inckpwdendy of the mlnuflcturer with

1ont·1UlD JUPpIy ~ retalnint control of openrJom while leYellllnl nlernll fundin& (tuc:h I I privale equity fundinl) These firm . will highly .. Iut! I teCUlt' o ft-I.bI,r«-menl ; Ind OUl.tOUrdnS . _ IDIIlerial p.oductlon 10 I <hint ".". The eAenliaJ lhl"l for the mlnuflctur lnl firm w., to RIect me option !hit Il'fIeahody mfuus the COlt of operarionI wbUe mainllinlnl control of IUppiy. Jbe conduded.

Tackling farmers' financial management challenge

T

he LIf:O' Sllle Mlnl.,ry of

ApkuI'J'~"'''''''

I"'Y efinhe Itep to addnw: f.rml!fS' ftnandaJ mlnllemenl chillen,e by oUlioureiDIl Onlneill mlnllemenl In lnlnl for fenne" 1'1 Dom ino Info rm ilion C"mplny Umlled (Dlel) It leadlnl mlnacement lorob tohulon p.........

OYtttheye8n, the minbcry had ldendlled this chaIlenp I I farmers are unlble 10 pretent proper Onlnelll .eport when In"eSlmenl oppotlunltle. lie mlde IYIIUlbie 10 them. MlJority of the flrmers hIVe been rnaIdfII Jmoestmenl dedaIonI blled on luumptlon. or

...............

Accordlnl to u~o Ndub. chid encurl"e of D1CL. -Pro pe r (lnlneill

mlnllemenl tnowledle would help denne how Invntmenl decIJioaJ sMuId be mD. The trainiDJ would help !armen Identify how to look aul lor Indicalon witlun Ihel. bi,m tTlntactiOIlJ thai woukI hdp them decide the nos 10 tab Ilnd the besc time 10 IDe IUCh dedalom." He 11.0 "Id ,hi' Ihe lJ1ItrtLns was tor farmm; who Wlnled 10 obIaln credll/lolln and needed 10 Ict It n&hl

st.

dtc 8m lime. Ind for thOle: who were concerned thll their firms were produdna bUI were unable to KCOUnl for Ihe leftcl of production In monetary lenns. IdclJ.q thl! II would lito he.!p 10 Iddres. how farmers could hlivre the rlpu componmml and ftnandaI Ilnlll. wbm

........

~to.n~with

"011. PfD!TImme, taged -An.andal MaMsemenl for

Flrmell: would hold al Ihe Fir,. $co.rrice Centre In Om.

at.. . . on June 16, and II np«:Ied 10 tqUlp larmm wid!. nIld ftnandaIloob lhal wiJl enable them man JUCCaJful rtnlftchl lIIunllemeot dedtlons. It wUI abo pnrride plnldpanll with ,he basic underslIndlnl of nHen"y tIarlkq requlremenb.1OIId ofter thrm I one-on~opponunIty 10 lnlftacI with f:IPt!'tI in the f _ ecuaomJa ftdd..

t.p.r1 from the Ole. cbIef execu'iye. olher luouru pelion. elpeCled Ire (ibollhan lawai, Lacot Stile commiJdonft fOf A&rkulture Ind Coope.lltIYH; Olufen.1 Adetopo, III apk economise; ote,twoIa Onuanya. director. Alflc Serrice• • minljlry of ~and Co p 11th.... .monl Glhe,. ; while film ow n eu, film mlnl,ell Ind mention worken: are apecteod 10 pardclp.ct.

BUSINESSDAY, 13 JUNE, 2012  

Tackling farmers' financial management challenge