Other Transformation Plans

C. Sorghum Transformation Plan

Driving economic development in the North East and North West

 

 Sorghum Value Chains

  • Sorghum can be utilized to produce nutritious fortified foods, typically blended with soyabeans.
  • Key markets for these fortified foods are Home Grown School Feeding Programs (HGSF) and the World Food Program (WFP) food air to our neighbours i.e. Chad, Niger, Mail e.t.c.

  • Sorghum can be used in producing malt for use in the beverage industry NOT for beer but for Maltina, Ovaltine, Milo e.t.c.

 

Demand Side Targets – Fortified Foods

 

Home Grown School Feeding Program (HGSF) – Demand Side Targets

 

 

Fig 73: Annual Projected Demand for Sorghum Component of Fortified Foods for HGSF Program

 

  • Program will need to be closely developed in partnership with Ministries of Education, Health, Finance, Trade and Investment and State Governments
  • Demand assumes we target 50% of Nigerian children in public school by 2015, roughly 12.5 million children.
  • Each child will eat approximately 150g of processed fortified foods daily of which sorghum constitutes approximately 75% of the content
  • We assume program runs 9 months of the year.

 

World Food Program (WFP) Demand Side Targets

 

 

Fig 74: Annual Projected Demand for Sorghum Component of Fortified Foods for WFP

 

  • The World Food Program has historically provided significant volumes of food aid to our neighbours.
  • World Food Program provided over 140,000 metric tons of food aid to Niger alone in 2010.
  • World Food Program provides fortified foods that include soya and maize blend in which the maize could be substituted for sorghum.

 

Supply Side Targets – Fortified Foods

 

Home Grown School Feeding Program (HGSF) Supply Side Targets

 

 

Fig 75: Annual Projected Supply for Sorghum Component of Fortified Foods for HGSF Program

 

  • Demand will be met by ramping up production and processing capacity in the North East and North West
  • 5-10% of the grains are lost during processing

 

World Food Program (WFP) Supply Side Targets

 

 

Fig 76: Annual Projected Supply for Sorghum Component of Fortified Foods for WFP

 

  • Demand will me met by ramping up production and processing capacity in the North East and North West
  • 5 – 10% of the grains are lost during processing.

 

Demand and Supply Side Targets – Malt

 

Malt Demand Side Targets

 

 

Fig 77: Annual Projected Demand for Sorghum for Malt Plants

 

  • In Nigeria today, we have approximately 200,000 metric tons of processing capacity for malt, however, only approximately 70,000 metric tons is utilized.
  • Our strategy will be in the short term to ensure that excess capacity is appropriately utilized by developing output markets for malt and linking processors to areas of production
  • The team will begin to work with potential investors to bring on stream in 2013, 2014, and 2015 additional capacity for malt production.

 

Malt Supply Side Targets

 

 

Fig 78: Annual Projected Supply of Sorghum Grains for Malt Plants

 

  • Demand will be met by ramping up production and processing capacity in the North East and North West
  • 5 – 10% of the grains are lost during processing.

 

Inputs Required to Achieve Sorghum Production Targets

Land | Improved Seed | Fertilizer

 

Land

 

 

Fig 79: Annual Land Cultivated

 

  • Due to Sorghum’s relatively low yields, a significant volume of land will be required to be brought into production
  • Due to Sorghum’s unique drought tolerance, it is perfectly suited for the North East and North West.
  • The decline in land requirement in 2015 is due to the rapid improvement in productivity due to access to improved varieties and practices

 

Seeds

 

 

Fig 80: Annual Required Volume of Improved Seeds

 

  • Sorghum requires a relatively low volume of improved seeds per hectare, approximately 10kg/Ha
  • For this reason, despite the large area being brought under cultivation, we require only a small volume of seeds to meet this new demand.

 

Fertilizer

 

 

Fig 81: Annual Required Volume of Fertilizer

 

  • Sorghum, as most cereal, require a significant volume of fertilizer to attain best practice yield of 2.5kg per Ha
  • Estimated fertilizer requirements per hectare are as high as 450kg/ha.

 

Sorghum Job Creation Targets – 150,000 jobs by 2015

Primary Production | Value Chain

 

Primary Production Jobs

 

 

Fig 82: Annual Projected Number of Jobs in Primary Production

 

  • Despite the relatively low labour requirements of sorghum of 88 man days per Ha, we can expect over 130,000 jobs to be created in primary production

 

Value Chain Jobs

 

 

Fig 83: Annual Projected Number of Jobs in the Value Chain

 

  • The sorghum value chain is relatively labour intensive
  • Estimate that for every 5 jobs created in primary production, 1 job will be created within the value chain.
  • The value chain includes, input supply, service delivery, aggregation of output and processing.

 

D. Cocoa Transformation Plan

Driving economic development in the South South, South East and South West

 

Demand and Supply Side Targets – Cocoa
Double Production in Four Years

 

Cocoa Supply Side Targets

 

 

Fig 84: Annual Projected Increase of Supply of Cocoa Beans

 

  • Globally, there is strong and growing demand for Cocoa, particularly in Eastern Europe and Latin America.
  • Our Strategy is to rapidly grow Nigeria’s production of cocoa beans through a combined strategy of increased productivity and planting new hectarage.

 

Inputs Required to Achieve Cocoa Production Targets

Land | Improved Seedlings | Fertilizer

 

Land

 

 

Fig 85: Annual New Plantation

 

  • Expand existing 800,000 Ha of Cocoa plantations by approximately 30% to over 1 Million Ha.
  • Generate significant employment through land clearing and plantation establishment
  • Utilize Cocoa Development Fund to Finance increased hectarage

 

Seedlings

 

 

Fig 86: Annual Required Volume of improved Seedlings

 

  • Plan would require rapid multiplication of millions of seedlings to provide the planting material for establishment of new plantations
  • Seedling production will provide significant employment opportunities for the youth, particularly women

 

Fertilizer

 

 

Fig 87: Annual Required Volume of Fertilizer

 

  • Development of tailored cocoa fertilizer blends will be required to form the foundation of rapid yield improvements from 300kg per Ha to 600kg per Ha.

 

Cocoa Job Creation Targets – 390,000 Jobs by 2015

Primary Production | Plantation Establishment | Value Chain

 

Primary Production

 

 

Fig 88: Annual Job Targets – Primary Production

 

  • Cocoa is one of the most labour intensive plantation crops with an estimated 150 man days per hectare per year
  • One of the most labour intensive aspects of Cocoa is in the harvesting process, hence we can expect with increased yields a dramatic increase in labour requirement, not only for new plantation but existing plantations.

 

Plantation Establishment

 

 

Fig 89: Annual Job Targets – Plantation Establishment

 

  • Plantation establishment is a very labour intensive process that includes seedling development, land clearing, cover crop establishing and planting
  • We estimate we can create one job for every two hectares of land to be cleared.

 

Value Chain

 

 

Fig 90: Annual Job Targets – Value Chain

 

  • We estimate that for every 5 jobs created in primary production, 1 job will be created within the value chain.
  • The value chain includes, input supply, service delivery, aggregation of output and processing

 

 

 E. Cotton Transformation Plan

Reviving our lost glory

 

 Demand and Supply Side Targets – Cotton
Regain our leading position in West Africa

 

Cotton Supply Side Targets

 

 

Fig 91: Annual Projected Increase of Supply of Cotton Lint

 

  • Goal is to regain Nigeria’s position as the number one producer of cotton in West Africa
  • This growth will form the foundation for a thriving domestic textile industry
  • The cotton sector at one point employed over 600,000 people with 175 mills in operation
  • Today there are less than 24 mills left and the sector employs less than 28,000 people

Key Challenges

  • Varietal Mix
  • Use of Polypropylene bags versus jute bags
  • Quality challenges
  • Absence of institutional support
  • No BT cotton varieties

 

Inputs Required to Achieve Cotton Production Targets

Land | Improved Seed | Fertilizer

 

Land

 

 

Fig 92: Annual land cultivated

 

  • Due to cotton’s relatively low yields, 300Kg to 500Kg per Ha, a significant quantum of land will be required to be brought into production
  • As the NW and NE are particularly well suited for cotton production and will be the region of focus
  • The decline in land requirement in 2015 is due to the rapid improvement in productivity due to a combination of access to improved varieties and practices

 

Improved Seeds

 

 

Fig 93: Annual required volume of improved seeds

 

  • To attain rapid productivity growth in the cotton sector, improved varieties are critical
  • In particular, Nigeria has yet to release a BT cotton variety that has revolutionized cotton production across the globe
  • Our strategy will fast track the release of BT cotton in Nigeria enabling farmers to double or triple their yields in a short period of time

 

Fertilizer

 

 

 Fig 94: Annual Required Volume of Fertilizer

 

  • Cotton requires a specific blend of fertilizer that currently is not available in Nigeria and will likely need to be imported

 

 

Cotton Job Creation Targets – 125,000 jobs by 2015

Primary Production | Value Chain

 

Primary Production Jobs

 

 

Fig 95: Annual Projected Number of Jobs in Primary Production

 

  • Cotton is one of the more labour intensive crops with an estimated 150 man days per hectare per year.
  • One of the more labour intensive aspects of Cotton is in the harvesting process, hence we can expect with increased yields a dramatic increase in labour requirement not only for new farms but existing farms as well

 

Value Chain Jobs

 

 

Fig 96: Annual Projected Number of Jobs in the value chain

 

  • The cotton value chain is relatively labour intensive due to the bulky nature of the product and intermediate processing requirements.
  • Estimate that for every 5 jobs created in primary production, 1 job will be created within the value chain.
  • The value chain includes, input supply, service delivery, aggregation of output and processing.

 

 

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