Can Agriculture and Food become the next growth engine and job creator/promoter?

As we look at the potential of agriculture to become a job and livelihood creator for the bottom 40%, including rural youth and women, many opportunities emerge.

Firstly, food production is no longer restricted to cereals.  With the demand for fruits, vegetables and dairy products increasing in urban settings and rural areas, there is significant potential to expand employment opportunities.  Global vegetable production is about to reach 1.1 billion metric tons.  Global milk production has already exceeded 750 million tons, and approximately 150 million households around the globe are engaged in milk production. In most developing countries, milk is produced by smallholders, and milk production contributes to household livelihoods, food security and nutrition. Milk provides relatively quick returns for small-scale producers and is an important source of cash income. In addition, aquaculture and fish production has reached 158 million tons.

There is significant difference in employment and enterprise opportunities created in vegetables, fruit, milk and aquaculture as compared to cereals.  In Kenya, 6 jobs are created per hectare of vegetable crops that are exported, including 3 positions in the field, 2 in packed houses and one with the exporter.  In Nigeria, for every 10 metric tons of catfish 8 jobs are created; one on the fish farm and the rest in supply chain including “Market Queens”, “Market Mamas”, and ladies running the Buka restaurants.  The implication of all this is that a large proportion of future jobs will be created not only on farms but also in positions connected to food servicing and delivery.

Pathways to Inclusive employment in agriculture

There are four pathways emerging for the bottom 40% to access more, better, and inclusive jobs in agriculture and related sectors in rural areas. 

1. Firstly, small farmers need mechanisms through which they can aggregate their produce to deal with the market.  They need to be organized as producer organizations and companies and engage with the market differently. 
2. Secondly the value chains should be developed in such a manner that they become more inclusive and developed with jobs and enterprises perspective. 
3. Thirdly, there needs to be more investment in expanding the ecosystem of small and medium-sized enterprises (SMEs).  Existing SMEs should be encouraged to grow faster and new SMEs to emerge. 
4. Fourthly, youth need to be provided opportunities for skill development and enhancement so they are able to access entrepreneurship opportunities and acquire jobs in agribusiness, non-farm, and rural labor markets.

A new Global Solution Group for the Agriculture Global Practice

The Agriculture Global Practice at the World Bank works with Governments and clients to support them design and manage policies and investments that promote new opportunities in agriculture, food and related sectors in rural areas.  A new Global Solution Group has been recently set up in the last six months to match problems and challenges with solutions in this area.  It has a multi-sectoral composition, with professionals from various practices across the Bank participating. Bank staff who are designing or managing programs within the Agricultural sector share challenges or problems, and the Global Solution Group identifies solutions that have previously been tried in the Bank and outside.  The GSG and Bank staff then work together to consider the possible solutions and how they might impact the design or evaluation of programs.  These lessons are also shared with clients and presented to senior decision makers to help them take decisions and carry out informed dialogues.

Informed presentations and discussions with the Minister for Agriculture and Rural Development of Kosovo about how to create a more favorable ecosystem for Agribusiness investment and Rural Enterprise ecosystem in the country were conducted.  Tunisia and Morocco Teams are looking for approaches which integrate poverty reduction, value chain development, and market based approaches to climate smart agriculture and will launch an interesting set of studies and dialogues with clients in the country.  A team in Tanzania is looking at designing a new Horticulture Development Project informed by analytics, including a tool which will enable the team to apply a Jobs lens to value chains.

All these experiences are being documented and curated by the GSG and will be offered on the GSG website platform to enable all staff of the World Bank to access this knowledge, including papers, presentations, videos and other material.  The GSG team is also trying to make this interactive so that individuals could post both challenges and solutions and create a vibrant community of practitioners.

Please throw a challenge to the GSG on the issues mentioned above!

We will crowd source the World Bank Group and also ensure that we bring collective global learning to inform you and support you in designing, managing and evaluating investments, analytics, policy advice and strategic communication.

We would like to invite agencies and individuals outside the World Bank to suggest solutions they have found which have worked or not worked— both can encourage learning. We would like you to become solution contributors. We hope that we will have an active community of solution finders and a frank exchange on what works and does not work.

http://blogs.worldbank.org/publicsphere/what-your-challenge-creating-jobs-and-livelihoods-bottom-40

Mechanisation Is Key To Increasing Production, Sustaining Agriculture - Jamie Rixton

 

The Nigerian agriculture is rapidly transforming and over the years, effective policy reforms have led to over $58 billion from international agribusiness community. At the AGRA Innovate Nigeria exhibition that provided a perfect platform to meet buyers, establish local partnership and network with key policymakers and experts. Mr. Jamie Rixton, General Manager, Panafrican Equipment Nigeria- Agricultural Division and key panelist at the event spoke to The Guardian on the need to modernise agriculture through mechanisation and way forward.

Why the focus on Nigeria’s agricultural sector has a massive potential if well harnessed, especially looking at what has happened in the last 30 years. The number of tractors imported into Nigeria in the 1990s was reasonably average. Since 1993, that figure dropped drastically and 2014 witnessed just a few numbers of tractors and other machines.
We are interested in rebuilding Nigeria’s agricultural capabilities again; it needs to be revamped. In the past, foods produced locally in Nigeria were 80 per cent locally produced and 20 per cent was imported. Currently, the reverse is the case.
We are committed to offering value for all stakeholders by acting with safety, integrity, sense of urgency and attention to details.

How far would mechanisation go with attendant high cost?
That you have two hectares of land, for instance, does not make you a farmer. Renting that land to a professional will do a lot more and in return, yield constant income to the landowner. Agriculture is not just about farming. It is about the entire value chain, which is important. It is capable of turning people into enterpreneurs within a farming community. Clock start ticking as soon as you start work in the farm, as there is ripening stage for both the crops and animals and there is need to understand where the market is avoid wastage. This means, you must get your market first prior to production as perishables, for instance, could take 48 hours to remain good. There are situations where there are produce but no market. This is where the value chain comes into play.
There are several considerations in employing mechanisation. It is not about immediate cheap cost of purchasing a tractor. An instance is: if you buy five million naira tractor and it last just two years and at the same time, you buy N10 million tractor, and it last between 10 and 20 years, obviously, the later makes economic and business sense and more cost effective, too.
Creating good maintenance culture is very important to keep the machines in general good condition and one of our areas of major concern is commercial farming.

Considerations in introducing hi-tech machines We are very much aware of Nigeria’s soil texture and weather among others. For instance, when people demand a specific design of a tractor, the first question to them is what do you want to use it for and why? In most cases, they really do not know. The reason is that farms deserves to get the right equipment for the job they intend to do and that is also dependent on the type of soil and size of the farm. Not everybody can be a farmer even though they have some idea. I am very much interested in agriculture, mechanisation and farming. If for instance you have two hectares of farmland, you have to maximise it so as to get your improved revenue.

Between agriculture and oil If we are physically looking at the amount of money generated, oil and gas is first. But again, if Nigeria’s agricultural sector is well developed, funded and equipped, it will go a long way. Although agriculture is not as easy as people think. I am from a farming family in the United Kingdom and started farming at very early age. It is 24 hours, 7 days a week work: no weekend holidays. It is a real hard work, especially when you are doing it for a business. Not everyone should be a farmer. Farming is the oldest business in the world and has developed globally. It is technology driven and you can get good revenue depending on the type of equipment used.

 About Panafrican Equipment We are involved in the business of construction and mining, which started in 2009. I have been in Africa for the past 15 years and have equally been to 26 different countries and in Nigeria, for two two years. Since then, we, as Panafrican Group are directly involved in agricultural matters in Nigeria. Way forward for Nigeria’s agricultural sector
Agricultural sector in Nigeria will be uplifted by the private sector because of accountability. Access to a single digit credit line is also important.

Love for Agriculture

Water Management by Pardeep Bogra

Climate Change is a serious global issue. Temperature of earth is also increasing year by year. It is causing increase in Natural Disasters like flood, draught & cyclone. Worldwide few places are facing excess rain and few places have deficit rain. Groundwater level is also decreasing globally. Very well planned water management is required to
overcome these issues. 

Sometimes in case of excess water in dams, it is required to release
the water, it causes flood most of the times. To control/minimise flood, rivers can be connected with each other thru canals. For example, river Ganga can be connected with Yamuna in northern region of India. 

In a situation when level of water is rising in Ganga but level is controllable in Yamuna, water can be transferred in Yamuna. It will also sort out the issue of water scarcity in Delhi. Connectivity of rivers & dams with each other will help in transferring excess water to draught places. Canals can also be connected with Wells/Bourwells and Water Harvesting System. It will help in increasing the groundwater level. In case of excess water in rivers & dams, water can be transferred underground. Flow of water may also help in generating electricity.

In rainy season, water coming from roofs of homes, buildings and housing societies flows in streets and sometimes results in flood. Small water harvesting systems can be developed to transfer water underground or flowing water can be transferred directly underground thru hand/tullu pump pipeline. It will help to control flood and restore ground water level. Well planned Global Water Management will also help to control Climate Change and its impacts.

Glaciers are melting, sea water level is rising, we may release river water to deserts thru canals. Pipelined canals from Europe to Sahara can be build. There are many other deserts around the World.

Air Pollution
 
- Carbon emission is another cause of Climate Change. To reduce hazardous particles in environment, chimneys in industries must be covered with net/filter # AirPollution
 
- There is huge scope for planting trees on both sides of railway
tracks and canals # forestation#AirPollution

Source:
Pardeep Bogra
India

Corporate Farmers and Corporate Nigeria

Agriculture contributed 41.84% to Nigeria’s GDP in 2009, and the sector employs around 70% of the workforce. The main agricultural goods produced are yams, cassava, peanuts, millet, sorghum, rice, maize, okra, cocoa, palm oil, rubber, cattle, fish and timber. Nigeria is a net importer of agricultural goods – in 2009, imports in the sector added up to more than USD3 billion, while agricultural exports accounted for about USD1.4 billion. Major agricultural imports are wheat, rice and sugar. Most agricultural imports come from the US and the EU. The country’s main agricultural exports are cocoa beans, rubber, sesame seeds and cocoa butter. Key agricultural export destinations are the UK, the US, Canada, France and Germany.



Most of those who work in agriculture are small-scale subsistence farmers: the country has around 14 million small farmers, and the average size of farms in the south of the country is 1 hectare, while in the north, the average farm is around 3 hectares. Around 33% of the country’s land is used as arable land, though about 80% of the land is potentially cultivable; there is no shortage of land suitable for cultivation overall, but more densely settled areas in the south eastern states have suffered from too much demand for arable land, giving rise to internal migration.

Much of Nigeria’s agriculture is carried out according to traditional methods, with mechanisation relatively rare. Government efforts to encourage modern methods have had limited success, since farmers frequently find it difficult to adapt to new technologies and have limited capital for updating machinery.

The National Centre for Agriculture Mechanisation (NCAM), a government parastatal, was set up in 1990 to develop and promote mechanised farming in the country, through manufacturing tools, importing machinery and training farmers. The centre is the only one of its kind in West Africa, but has been held back in the past by underfunding.
Other factors that have held back the agricultural sector in the past include lack of investment, inadequate infrastructure and poor transport networks linking crops to markets. The government is working on regenerating the sector by addressing these and other problems.

source: http://www.corporate-nigeria.com/index/agriculture/agriculture_overview.html

Agriculture and Employment in Nigeria

In terms of employment, agriculture is by far the most important sector of Nigeria's economy, engaging about 70% of the labor force. Agricultural holdings are generally small and scattered; farming is often of the subsistence variety, characterized by simple tools and shifting cultivation. These small farms produce about 80% of the total food. About 30.7 million hectares (76 million acres), or 33% of Nigeria's land area, are under cultivation. Nigeria's diverse climate, from the tropical areas of the coast to the arid zone of the north, make it possible to produce virtually all agricultural products that can be grown in the tropical and semitropical areas of the world. The economic benefits of large-scale agriculture are recognized, and the government favors the formation of cooperative societies and settlements to encourage industrial agriculture. Large-scale agriculture, however, is not common. Despite an abundant water supply, a favorable climate, and wide areas of arable land, productivity is restricted owing to low soil fertility in many areas and inefficient methods of cultivation. Agriculture contributed 32% to GDP in 2001.

The agricultural products of Nigeria can be divided into two main groups: food crops, produced for home consumption, and export products. Prior to the civil war, the country was self-sufficient in food, but imports of food increased substantially after 1973. Bread, made primarily from US wheat, replaced domestic crops as the cheapest staple food for much of the urban population. The most important food crops are yams and manioc (cassava) in the south and sorghum (Guinea corn) and millet in the north. In 1999, production of yams was 25.1 million tons (67% of world production); manioc, 33.1 million tons (highest in the world and 20% of global production); cocoyams (taro), 3.3 million tons; and sweet potatoes, 1,560,000 tons. The 1999 production estimates for major crops were as follows (in thousands of tons): sorghum, 8,443; millet, 5,457; corn, 5,777; rice, 3,399; peanuts, 2,783; palm oil, 842; sugar cane, 675; palm kernel, 565; soybeans, 405; and cotton lint, 57. Many fruits and vegetables are also grown by Nigerian farmers.

Although cocoa is the leading non-oil foreign exchange earner, growth in the sector has been slow since the abolition of the Nigerian Cocoa Board. The dominance of smallholders in the cocoa sector and the lack of farm labor due to urbanization holds back production. Nigeria has the potential to produce over 300,000 tons of cocoa beans per year, but production only amounted to 145,000 tons in 1999. Rubber is the second-largest non-oil foreign exchange earner. Despite favorable prices, production has fallen from 155,000 tons in 1991 to 90,000 tons in 1999. Low yield, aging trees, and lack of proper equipment have inhibited production.

Agricultural exports (including manufactured food and agricultural products) decreased in quantity after 1970, partly because of the discouraging effect of low world prices. In 1979, the importing of many foods was banned, including fresh milk, vegetables, roots and tubers, fruits, and poultry. The exporting of milk, sugar, flour, and hides and skins was also banned. During 1985–87, imports of wheat, corn, rice, and vegetable oil were banned as declining income from oil encouraged greater attention to the agricultural sector. In 1986, government marketing boards were closed down, and a free market in all agricultural products was established. In 2001, agricultural exports totaled $323.5 million. Exports of cocoa beans that year totaled $210.4 million; cotton lint, $21 million.

Read more: http://www.nationsencyclopedia.com/Africa/Nigeria AGRICULTURE.html#ixzz40u1yJdHm

What is Agriculture in Nigeria?

Nigerian agriculture is characterised by considerable regional and crop diversity. Analysis of this sector, particularly the food sub-sector, is fraught with serious data problems. However, the available statistics provide a broad overview of development in agriculture upon which we can make some broad generalisations about its role in economic development and structural change in Nigeria.
 In the 1960s, the agricultural sector was the most important in terms of contributions to domestic production, employment and foreign exchange earnings. The situation remained almost the same three decades later with the exception that it is no longer the principal foreign exchange earner, a role now being played by oil.

The sector remained stagnant during the oil boom decade of the 1970s, and this accounted largely for the declining share of its contributions. The trend in the share of agriculture in the GDP shows a substantial variation and long-term decline from 60% in the early 1960s through 48.8% in the 1970s and 22.2% in the 1980s. Unstable and often inappropriate economic policies (of pricing, trade and exchange rate), the relative neglect of the sector and the negative impact of oil boom were also important factors responsible for the decline in its contributions.
 On its diversity, Nigerian agriculture features tree and food crops, forestry, livestock and fisheries. In 1993 at 1984 constant factor cost, crops (the major source of food) accounted for about 30% of the Gross Domestic Products (GDP), livestock about 5%, forestry and wildlife about 1.3% and fisheries accounted 1.2%.

In most of the surveys and censuses conducted by the National Bureau of Statistics (NBS), which is the major producer of agricultural statistics in Nigeria, crops and livestock are always considered together because of the tendency for most of the farmers to practise crops and livestock husbandry simultaneously. A separate discussion of livestock will involve duplication of some aspects of the survey and censuses designed for collecting crops statistics.

Source: http://www.nigerianstat.gov.ng/sectorstat/sectors/Agriculture