BUSINESSDAY, 08 OCTOBER, 2012

PROFILE

52

FolinlOml e""wnde OdunIYO .

~ VIot Chaiman-.d

CEO. HcI:!eywI FIlM Yilt PIc. He bf:IIOI, • B.k

~

Economa 01 1M UniYmrty 01 If, 1_ 0bII1em/ .t.wMwa

UnlYer.M ... _

FhlPnza ....... 1I11ge01nII~~ .

.....,.., eumNIion. 0dImy0_ FNra 0iecl0r11lgemeyw

NiR!riI PIc. .... II c:urr!ntIy lob Ch!nn!n. eu..-s ~ Caln:iI olin. F8CUIty of

Buu.u~ ~

laIgas. Vice C/IIImwI, Fa. ........

~

01 , . , . IIId

M lrldustry stlruggle t achieve 10% cill'ssava flour • I 1[lusion' The Fasl Moving Consumer Goods lector in Nigeria is blqoming and the flour milling industry is having it!; own share of it. SIAKA MO~10H, Bu sinessDay's Indust ry Editor too k on FoliJranlni B. Odunayo, vice cha irman/CEO of Honeywell Flour I~ i lls Pic on how his coqlpafiy is faring in the industrjr.

products. Thill 1$ YnJ noYd. I cannol duolJenge thaI. Concerning the principle 01 n\Nng levy 10 dlaeouBp thf use of whelt. ~ needs to look CIIrduDy II 11 begU5!! II las Iltl Inlb tiolaf)' effect on COM. We hope tbal lhf:rl! will nor be.

Ii.mhtf. dul)' levy damp on the lndusuy.

'JalkiD& .tJovt c:MAYII b~ hvw rncty...".,.... (.... ~ brndl ~t In 2004 asked 115 10 do 10 pen:a1L When t., 20061here was no t:aSPYa Bow in qum~ thaI would allow the flow mllIn!: to do up ID 10 prr. cent, the then MIn1sby ollndUSIIJ undeI: whk:h m e ta5SilVII tndll5ion poIky...., betn&bnpIflnmted. made. pronomx:eIMnI: undrr !he Sundard Orpnbiolion Ace, 10 reduce it 10 S ~enl inc:hnion.

1M' pronouncement WlIS. pro!1OllllCemenl under the Ad. II wu In I"act • proDOIlncemeru under tbe lIIw ~ !he Minisuy of Induwy _ erJIPO'I"!rM 10 mike pronotJDCaDlellB from time 10

limto. ilDd Ihose pronouncements beame law as ru I15I'ood reguJaoolU, food comenl_~

Solftc:annmember~thll.up loIbeDml!ollhit~~ we were 10 h.J~ up lOonJ,,5 ~ Even to, IMt 5 pen:ent wu DIM WolIU-

able. Some people: did Ihree. tome did 5 • tb:na, and _did less dan I pMftII dependin& on how eK.h mi1l was able 10 iOlIrCe ittawn CUA..... Ilow. I ~ we are today; government hIS a pollq of 40 petant IS r. IS policy is concemed.

We lie IIiU IooIan& for c::nsaYI flour and

_1Ie~~~ to process more ruben Into We lIe for ~\'II fIour_But IS

5ll1I 1ookiuI

now_

fir as flour Is concerned. we know WI after a putkuW ~ I. iDduRon, the ItnJCtUre 01 wbeil fIourbqlns to 1ftIous/y .fIeeted beclilSf! ca!UQ flour Is nu t lIke vmrat lJow at aU. So enzymes are belnl deYeIoped 10

sec

suppon tIw kind of composite flour In • WI" chat they can tab up 10 about 5

pen::entl2SAnl f\our indu5ion..So Ihi5 is when! "'e Ileal the milllnllndusuy. BUI If anybody will ask for my view. I know IMt If we lind IIIA)' thai mon! and mon! or CUA\'II Dour can be used. such a ...,. will be that the brmd wiD be edible, the b!1!ad "ili itave IlNtOfIable

pnmn.

di~HfIL'.

If WI!

find a wrt mal WI! can add In flour

InauslnJ peteeJ1lqe of ~1'1

into brnd Dour. then tudli ..,. would probabiy lie mon! with the bakery than with the flow mill Indumy, where the bal.erie5 am blend mon! CUAVI flour with wbea! Dour, up to • ~ thai their procaa can acttp(. lhe flour mUll", Indu.ruy 1M)' .mtggJe 10 achieve 10 pen:enl after t;:OUJkIftab'e m-meol Beyund 10 petttnl, II will be w:ry dlfficull fof om eqWpmml 10 do mote than thaI lot fU50nt of 1f!dInolog - the behaviour of c:a5aVII flour dna not .now IUelf 10 be 110 bImckd II a oeniIn Ine.. This is when! we m.. We

can won WithS pen;:enl lllma "Ip!. bUi

the amsmunl lod.,. III that we Ill! still

IoolinK for _

caUl.... flout We must pllllM the p'rrT1JllW1 beaute It I$look iriS for aD poIIIble WlJS that pmductlon of CbAl.-a flour may fO up, and iI hi loot· In; into bon"nS in bis pianu.. to ramp up production d' ca5UYiI nOIll. Ailer that happens. the flour mUll", Induslfy wiD be happy to Il!Ie more of whattl !;all find. TocKy. WI! can IDIIP up f!YnYthln& thll II .nIlahle - the milllflllnduslry pul together.

1h~ WII an I"~ II adtlvatlDs wbnllD the put. Caa J9IIldi WI what the posllkm II nowf Co wbnl cuJth. ti<IIIDyInNl,ert., A510ns u )'OtI t-1OIl. md !be soil

hal some nUII~"" }'IIU (;a.O Ittempl to p'IIW 1D)'thIns- Wille be economld Thll is the questioo. And when I A)' you can auempl, lhere an! IIWIIIY radml lmoIved. Dn)'OU have the rIKht ,,~atherr Do you haw! the ri&IlI: moi5tw'e molenl}

Is the nrietJ nen suitalMef In Nigma

53 r As long as you have soil, and the soil has some nutrients, you can attempt to grow anything IOOay. we do no( hive the ristu:_the!"

10 smw wheaL Whul UiUally requites I. winuy enYironmellL Thai anempl 10 pow wheal" thai lime did,n' , suc:oeed becauw !he environmetll lUll Wlln ', MIlIableIO pvwwhut. AI. that ume. we

dido', ~ more than ttueeJfow trailers

ofwbeat lOran enll~ smwml5ell$()n. t ~ 'Iii I. selt1ed ,iu~lion Ihaa wheal II avaibbIe in mmrnercbl quanllry fOf Uldmtnal uw butlvailable to the for coll§Umpllllll

I1(M

r.arnw

\vtuol II your proouctJon cap.eley n_ Ind huw rill, have rou cone with your upant.lCNI programme beuaue we ,llhered ),our expansion proJKt ",10 bu'o mpfeled by Oelobft' 20 12'

Ow ~ioll programme Is limed

I' KIuevin& I. 70 percrnllncreue in ca· p¥'lty_1lat0:Juld bere.dyin themDlllh oI0ct0bertiKI our producuwill5W110 COIJII! out. 1h3. will betp 10 mo~ Iban double ow production, the production of ow popub.r lIoneyweli Semollnll.. It will aIJo betp us 10 JOOfe IlWlUiple our prOOIKUOII of our wbut·muJ. As you know. I"orwhnl-mW. ~t..ftabool55 ~ofthenwket. So when _triple IlroducuGn. lhen we can have I. bener Influence in the nwktt. we lifo the

\*

plOllern 01 wheal -meal produaion in

NiIftiL If there was I. bnnd WI Rood oul and peopie bepn 10 Nve an 1IWMe+

neu ot that produd

tN, tbqt can buy IIIIllI h)'Bu~lIic 1Orm, when ~red. il ls Honeywell whel.Hneill

Ii Jour tap.nllon procrlmme .boul utmdlnl your aiRlnl planl or lbotU I n~W rac:wl')'t Ii is. new flCIOry With new machin ery~, wehave millsA. B, C, and D. Widl !be tIIpUldolI prognllunre. _ ate addinI mlIk Eand Fala loW cap.ctry or 1000 merric ION per tUlf

Who is going to put money in man ufacturing as a new investor, to pay 18/22 percen t in terest rate to establish a factory when this is the case?

FfQRI ",1111 I can ptber (rom Ihl& dbc:uDJon, In~ crpponunllY In Ihe In duWy It vrrrbu&e. Wlw II; Ibedemand c:apachy .iddn the lAdllltrf nowt

Hooeywdll'lout Milk is daml very wdllbere~QPPOnUI1lt181n Ihemarktt, 00 doububoullnaL Big opporrunl ties In the marker_1hft'e ate opporrllnities beao __ !he population is growins.

But let me say ~t oppotnulllies rn an inoJUIU} ~ a1so Umilcd by the flit! that theR Is hi&b COlilpetition and very mll1)' flour mills that lave been inmIled.

U5I!!dInIllI~olthelXlltluy.

Wbatm.

happe:!U, WI!! will thiuk about thaL Bur lud-,., tI.ere.1nformaI upon by lho6e: who like our produm. They buy. and _

6nd the produm inaountnl'!lin the War African lub·rqron. We seeihl!m In tbe U£; we ICe them In the UK. WeOLtI'il!lw$ ~ nOl l».en Iny ICOon to expon ow pmduru. So thI!n • I lot of worlw do.

M lllooay WI! M\'e an ~ capaciry So IIJIPOrtunitlel ellS! senmrlly, In the food teeiOr. bef;auw or me ¥ery blrlC' popWalion. In lIoneyweU Flow MII~ we fi nd a ¥..~y 10 reach Ihe muimum produclion thallMUplanl and mathlnery

lIow well II Jour blldnl l tbool doJnl' WI! have tnIned oyer Z50 bJl.ers to II hu bern very RlcceufuL Thls" the only bitJ.:i1ll1Chooi1n lhe IndUiU)' lhar train babn.lfyuu ~ I bab:r.. not I $d1OOI iI!aYft" 00 mailer wtw pan or the counlry you c:ome from. no tnIIIl'f whlchflouryou use. JOtlIIl! qUaillitd 10

can reach.. Tbday. we run

accI!U 11M! rtalning. \~I we h8ftdone"

II 98 percenl

apacry . So lhb Jives !he ImprHliloo thattheskyislhelimit.lhefdore. we ate oprnlinl w1lhrn a '1ft}' IfIhI lndullry lhe nw-giM IIII! 001 Yer}' roIlltu_

lhere I, • daih now betwffn Palm Plln'I.lem, Ownen of Nllerll tonl~ Indusl,.,. stHdrolden who UH palm 011 II BW malerialln .helr man ..... C'curing prOC'eM - I dbll CWfl" whelner ImpUrI IlrUf on pllnt 011 lhouJd be reduucl from 35 pen:ell! 10 '0 perClenl or not.. ShoWd we encour*til dll! I.mponadoo III palm oil InlO NlsenlOl" protl!CI our loeal pllm 011 IndliAry' Tlrlff prolection IIhouId be I!f)COWagI!d whl!n die toUlllr}' tw Ittalned adequate production ~ MJ'IMI CIII ~ Ihrre In! two Indumies tlII'bere we haft teIChI!d thai lewd In Nigeria. lhe flow m11linI hKlumy II ooe.ln this Induw,.. tlren 1s50 much capadryilw you OUInot a1Iow Ilour 10 hi! importI!d when the local Indumy hu man tIwr I!IIDUgh c:apaary CD IMWy COIlR1flM!rS. So .-nmenlla 1t.J wiidom hal ~iHd llriff on whell flow Impartation In onier 1O protect local Indumyand a1soloRippon!he c:aiS/l~ inclusion policy The ccment Indu.. ry II; alw one..

Producdoo has incJaRd 5Ub5:t.ooa1ly: we IR now dightlython or RlPPIy. ln I few)'Ht1. we should hi! producing IIIO~ tIwr the couoil)' oecda.. We can rdIIe all thae bad: 10 thecue or palm oil Today.

R1pp/y i115hort. ADd If ....ppIy hi short. It may nul be the bell bet II) IIYef protea !he local induIuy. So I wUlwpport ~uaIon to wlff to that lho6e: wn.. nee:! palm aU either aImrdy refined 01'10 berefined Ia NI&ef.a for LIM in producdon. Govemmern of

au

and

coune can ~ I medium 10 lone II!m!

procmnme b" oU palm prodlElion..

And whC>l that PfOKJIlIUllI! 1 1 _ IUIIy O«Uled and _ haft; abundance of palm 011 produced In me coonuy. tbm we can use wifflO pnxea the local indusuy. BUI aI thillbfI!, pemmenl should Illow Imporutlon of palm all lam the toUllil)'. (){ mwte, JOU balance iL You baliU1Cf: between local produclion and .mal )'QU IR Imporung Wl!h

.........,-,....,-..

...........sou..,

What pen:enlllp of local ~w ma-

lenll do you Ule lod bow cln Vou lie

)'CUI

badr. 10 ~ ap!n

n1 palmoilAnd somespia:i.. WeIOURZ pe:pper locally. BeaUle of lUle Ind

11!Chnok!sY. ............

iOrfle

....,

5pIces Ini brouP11n

u-.,.....-.NaporUactt.aq.

wdprocllKu .. ~~_

me

It wiD. be nice (or III CD 00 thai.. AI. INXtlet1t. we want III It.If!PIJ Nigeria Ind 10 be _ _ producu(:llD be louod and

w.

I.biu we lutft taklnc bibnl ~Is &oro I vuylowleYel to lveryhish lewd. Today. whal b&l.I!n do Is dw !hey go mID ba1. inrilKlustty, Ihq' waldl.1hey learn. thef dI!veIop Ihl! skills. They do nOl hoiw In)' romw!tainln..

They do not knowanYI.httis ahour lhe dJemlury 01 ikJur.1n die bakin& school. we leach thm1 the Icitnte of ~ 10 thai they c:an undenand whaf if U 10 add too much ofbakullPowder, 100 much or Ah. how tmut 1M 1npedIen... So !hey an be(11!f baerL I hive !)eYer Lnowtl IU)'bUawhoame 10 the bWnslCflool Ind wu nCM Mpp)' II die I!tId or the day lilt contribution of mlll1uflt:lurirtl to CDI' hu ranainl!d II. perteRl fOl' quhuome time now. Whll can we do 10 Mvl! I dRIIIlde chance (rom the I~ weanladayT Today. rnanufaeturl", Is not autIC tift_ It II attrarove 15 I tountry lhil we 5houJd ImJll1'\'e !he contribution of manufacnuu1& 10 COP. bul II is not II UKtrYelOindMdualen~who mHebusineud~ What_IIUKlive Is trade. NlgerUru; go WChina, brillJ in thinp.1dI and mal.:e Iht/rnwgin fast. liow an we dfecl I thlngd Wl! need 10 In\proYI! !he tI1YIIOOIDID. And

whl!n people brinlln manuraaurinl 01 d:UIed mlnpowel 10 man chi: l!quipml!OL Enlilleerinl edueation In NiSl!ria is ftfJ equipment, there Is 5hortap

race

ibeorl!llcallAc:al manufaaurent !his lechnlcal dlallenp.. Thq' have 10 brinlln lecbnldanti hom abroad ror milinlmanc~ 01 the ~lpmmL And_ an rompeling llridt imported goodI. So ~mmt dxJuJd crute a Ca\'Olnble

.....

""""'-

Ewry etl\fq)role\lr mabs I decision far hlmsetf and hit; family beeattIe be wantJ 10 aurviYe. BecauR he is no! pwenunenL be Is noc soltis to lei free ca pillI. IIII' b Inll!relled 10 turnlnl around hb capl1aL He inveR' hit; money

wtwn. he CUI mUe IIXXM!)'. He pa In ChiIYl w brinB in pills 10 II!ll. So II Is the enYirunmen1 thai determines what !hey 10_ on. So we need 10 won: on our Infrutruc:twe. in!efelt rail! Ufoe KI be"n&fedlpwtll!lllhU~pun­

ml'fII came InID ~ bul the IIer)' iJWi ~oI~ItP'ftTUDI!Dlll!velaod

so much money aupply hu raised tbI! ~ or Infliition. We Iril!d 10 cunuot aU

thai and iNen!sl1'lle: .... pleup.. Who Is "'10 Pw IIIIXII!J" rnanufaawirrsul _IoVel&O(, 10 pay Il/22pem:01 iIuresa rate ID l!IIIbIiU1a laaory wben. Ih.Is • chi: CIJll!T So III/: !he challenp!L GovmmII!n! canil!ad the Wl)'by PUIlinl

u-

infnAructwe; ......

CUSlOfIICI1: wllb pod producu. and tI:ey aHI1I! hereandp!! prmrpIlttendon, d.ey ply and wllhia 2-4 hoon and IC" !hl!lr goods, !hey kftpl'OOlingbact.Sothal" our edF- Our edsr II the quaIjIy 01 wr pn:IIfur:G. And that. bowwe In! ab6l! 10 find ow place ~II! the hi#r Ie\'eJ of capadry In !he induwy.

....."""""-,

How 1It)lOU copll\I wlOathe

chu-

II will be oIlntere1t fix you 10 know that this busiQeg rolled ow ilIliIK produa In Iu/)' And berween tbm and now, we hwe Rr\'a w.:d pubUr: power ,up pi)' becaU5e public powu suPl)!y hu been Ullfl!Uable. And becallR 01 III..11;tlWiQn and unreUabIlIry 01 power auppl)'. ourequiplnerUwWbedamapt

1-.

lbe ~oIMlPplyolAlpptyl~

Ieads .. to h6F ~ oIwaae..So_haMI