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Nigeria Agribusiness Report Q4 2009Published by: Business Monitor International Published: Aug. 6, 2009 - 47 Pages Table of Contents
AbstractThe Nigeria Agribusiness Report Q409 expands upon issues covered in previous publications as Africa'sthird largest economy - and most populous nation - continues its efforts to diversify GDP earnings awayfrom a disproportionate reliance on oil exports. 2009 has come with many challenges, not least theeconomic impact of a global recession on commodities prices. For a nation almost wholly reliant on'liquid gold' exports, the result has been depressing. However, positive y-o-y growth is forecast for FY09,at 1.9% driven by the non-oil non-agricultural sector. The positive strides made in efforts to engender amore investment-friendly business environment, alongside government expenditure, should serveagribusiness development well through 2009 and beyond.Nigeria's rice import burden is predicted to swell during the course of the outlook, as demand is forecastto double supply growth through to 2013. The rice import bill is currently thought to be around US$1bn,with Asia responsible for supplying the population with enough rice to make up the deficit. In order toaddress this situation, local company Notore Chemical Industries has begun initiating a project inNigeria's main growing states. The initiative focuses on three main points: food security, job creation andincome enhancement. The Notore Foods subsidiary has so far agreed to collaborate with local governments to build productionplants in Cross River State in the South East of the country and Taraba State in the East. The plants willbe vertically integrated, allowing for a 20,000 hectare farm, as well as significant milling capacities. Notore predicts that around 70,000 jobs could be created in the two plants alone, while the populationwould take further strides towards self-sufficiency. It would be in the company's interests to startconstructing the plants sooner rather than later as demand for rice is predicted to surge by almost 50% to2013, widening the domestic deficit. Such a dynamic is typical of the new wave of public-private investment initiatives that many believe willhave a profound impact in shaping the future of Nigerian farming. These projects will only be successfulif the private companies are given the necessary support from the state governments and afforded afavourable socio-political framework in which to operate. Transparency is key, as is the ability for thecorrect inputs to be easily acquired and dispersed to the relevant areas. We forecast a particularly favourable outlook for Nigerian agriculture through to 2013, as reform effortsreap marked rewards. We see positive supply and demand growth through the range of goods covered inour report; only beef consumption is predicted negative growth. Such statistics bode well for continuedprogress towards greater self-sufficiency as investors are increasingly encouraged. Get Full Details About This Report >> |
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