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IHEGUARDIAN,Sunda}lJulylO.2DU
BUSNESSAGRO
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Agric Lending Under Central Bank's Lenses
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Stiltt',uid Canners nem loons thcycan payand "banks can help fann ers by dealing dirt:Clly with m ~m.- H~complai ned ;lbout how w,nkj have bet:n gMng I~ns to farmers , Solying res ult of market failure. Joshua Ayodelr- Faiola ~most often, the loans art: given 10 th e politi· from the Federal Ministry of Finance dr-scribed c!.los. ~ ilgricultural contribution to ~xpon as -just on~ Christop her john No nyelum Okek~ of NSM percent dtsplte its contr1butlon of about42 per Foods ocpmsro conam about Interpretation cent of GOr: He Sdld th~ J>ercentage of bank given by banks and notth~ rults themstlves, lending to agricu lture b Just about two percent while handling agricultural lending. Bugo com pared to slJl: per cent In oth~r deveJo plng sensed mutual reluctancr- as farmeT$ are also counUies.addlngthat · povert}'wllI begread)' re- relurunt to borrow from banks just as banks duced Iffood security Is ensured." .Ire relumnt to lend [ 0 farmers. RlehaTdo Yemlsl !ranloye from lagos-~s~ Ekha Agro Sengo from Standard Bank reaso ned tha[ th e Famu Umlted co mplain~ Ula t some fanners ~banks n«tl to move from balance sheet· and prospKtivt beneficiaries of bank loans have ~sed fillil.nclng to Innovative W~}'5 of Iinanc· thdrdeposits locked up In some banks, yet the I n~ In wha t app~.red to be rt:phr.15ed by loans were not disbursed. She also complained Chlronga who added mat "'we found that Teof gove-fOment's failure to fiJI: rural roads. fonn on Investment In agro-Invesunent is subMulihtar Shagarl, deputy gove rnor of Sakoto stantial:
Banks, Analysts, Investors Differ On Funding
ERCIAL banks and gOW'mmenu rett~ 010~ knocks than pr.dses l.ut TUesday and Wednesday at the Congress hatt menl to production valu~chains. ofTransorp tlilton Hotel In AlJuja, the meeting Chironga uptalned that; forb.1nksto becom· place chosen for brat nstormlng overthe future fortab le (In lending to agriculture). the valu~ of agricullural lendlngln Nigerta.. The m~ng. chains need to be structured and the players convened to discuss Nigeria I ncen~sc=d need to be structurro; a nd the structum Nve
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Risk Sharing System fo r Agricullur.i!.Ilendlng tobesuch that bankscan lend to fanners, movIng from rt:latlvtly fl'ilgmented cascs of lending !bnk (CB N)locom~nce NTgerian (annen: that ro structured leni:ling."III' SdW NIRSAl as ·Iocal tJleycan now look forward to reliable access to and holiStiC, arguing that -you would not be funds from commercial banks. ab le to Increast financing toagricu lrure If agri· Muw Chlron~ (rom McKinsq & Company culture ls not working well· COllin! NIRSAl a g;Jmc changer,- while Dr. Na· Various speakers had dlvt:rse opinions o n wh)' mangO! Ngongi. President of A1 1 i..lnc~ ro r a agricu lture hu not bH:n atl"l'iIctJve to private Green Revolution in I\frlca (AGRA) ~Jl:prt:ssed fUnding from banks. FaU"," Hamldele, penna· optimism thill Mman)' ~ple will follow thlsoc- nent secretary in me agriculturt ministry, obample If sucassful. Ngongl Sd ld agriculru re In 5!'~ that under·lnV1!Stm~nt In agriculrure Isa Nigeria rt:C~iv~ onl)' 1.4 ~r ant 01 bank lend· ing despite th e Involvement of ;lbout 60 per cr.nt of th~ popu lation. He Infonn~ the partic· iJ."1nts that AGRA p<1rticipat~ actively In th~ deSIgn of N1RSAl. which, according to Nixon Sugo, representing Akin Ad~lnol, vice praident By (JubyodI 0)'IiIyI aff«tS prontabillty In an Insidious of }"GRA. Sdld NIRSAl was designed and devel· YGOSlS look poUltry fanners and negative way. He classified the oped by VolriOUSstakeholders In Nlgerlol. back to thl! classroom In use of water In a poultry (ann Into AGRA. Sugo disdos~, has been working with badan rec~ntlywhen Itdrew two:!':J[t~mal (orellogenous) and incomm~rcnl banks to ","ke thr.m lend to olgri· a renewtt1 attention again to me ternal (o r endogenous). Wal~r, hr- sal(J, serves ","ny purcuhurt: olnd "we have bet:n putting In p laa a very obvious, but often overnumber of risk sharing mechanisms.. He ob- loolred aspectS of poultry man· pose::s In th~ normal functioning of served that -commerd.il banks nem dr-risking agement Wa~r, according to the th~ body, acting;J5 a vdllc1e for the instrum~nu. Theywant their risks to besh.a~, lagos-base:d private org;mlsation dissolution ana II'artSpOrtiltion of esCiJp.1city nems to be built-lending cr~ence d ealing In animal heilm prod· senUal nutrients, drugs and addito thiS, Algboje Alg·'moukhu~e,;l foremoS! uro, could be better managed. ti ves to desired sites (or usc In banker and Aceess Sank's managing dlrectorz The bottom Une, In the view of Zy- addition to serving as means of confinn~ that the capacity of banKs -to lena gosts, Is proflrabilityof an enter· tr.msportlng W;J5(eS to the point of money. todoly.toagrlcuJtur.a1 sector IsveryJow. prue. upufslon. He not~ that d igestJwo Many banksdo not havequaHfied agricu ltul'il J Preceding the technical details processes, which u ltimately d~ter omc~rs,~ a lthough he Insisted that me per· on t he right a.nd wrong use of min~ the volume of nutr1ents abcentage o f lending to agriculture is well over water and what dHfert: nc~ these sorbed Inro me body. dC!pend largely two ~r cent li e, however, add~ m;lt, -In the make, Or.lbkunboAla.yi, foremost on water. n le body fol nts and li n ings banking sector. 'I'll' aTe beginning to set up agri. poultry breeder and it ve~rlnolr· o f inner organs, he added, depe nd cultul'illd~ks.lan,explalned that "poultry busi- onwate.r. Sanusllamldo Sanusi, CSN governor, Stated ness ts sdence-based,and not just Kolade told the farmers that they that -Rtting percentage pon.folio fo r $«Ioral a business." AccordIng to him, have not bet:n lOOking at water as a lending did" not work In the p.1:st; seemed to -any pouluy fanner who Is not nutfit-nt in leself, explaining that aIha\l(' worked out an atl~mative arrang~ment. ~~~l~~ may nnd some th ings thou2h a bird coold go foraar: withsaying ·we now gh~ extended period of lend· out feed t ltcoold die wi th in ust two In~ for agricultul'il ilending. - He suggested it Adebayo Kolade, also a ve teri· dayswiU1o u lwal~r~nlnt epresshIft in subsidy from consumption of fenilise:r nalian, olnd a.n official of Zygosis, ~nceof abundant feed. to actual production of agricultural produce lamented that, in pooluj busl- Fann hygiene has much to do with (In omerwo rds, onlymose 10\'01ved In agricul· neM in Nigeria. presently; more at· anima l health, oerfonnance and pmtural production should benent from fertiliser tt-ntion ts paid to feed than water. ductivity, Kol ad~ Infonned, stressing subsidy). lie also s uggest~ linking develop- The omIssion, according to him, that thfs in tum d~pem1s on hO\\.' {NTRSAl~ was an idea broog"t up by the Ccntr.ll
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Second Look At Water, Heat Stress For Poultry
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wat~r Is used In m~ immedlo1te ~n vironment of thr- animal. Tht' varl· ous actlvlties,suc h as cleanlngand sanitation, disinfection, cooling and application o f extemal medicaments entail m~ U5!' of wat~r, h~ said. He stressed that how much and how wt-II water is used are equaUy Important. advising fanners not to get carried away by the genl!fill comments of those seiling drugs but rather find out th~ actual and specific neros wh ile applying water. Kolade Wl:'nt a st~p further to Inform the fanner to use a strong hymene principle that -If human berngs cannot drink It, It Is not a lso goodforth~animal
David Ortega, veterinarian and rt:prese.ntiltl~ of Invesa, a Spanish company dea ling with animal health prcxJucts, also d rew fann~rs' attention to the problem of heat In poultry fanns and the often un not iced Impacts it has on the buds rl!ared In captivity. Rd.iJtingheatstRSS to farmen' Incom~ and fa.rms' pro6t'abUity, Ortega said -heat stress I~ads to rn:Iuced feed intak~ to avoid heat
production caused bydlgestion, feed conversion filte Increases," In which cas~ mort: f~ is required to gain particular wtJght, and the number o f rejection in slaughter houses Incruse:s ;J5 "you ~ ~ paid for !':'veT)' Wl:'lghl of ;lntma!. Farmers were thus Introduced to products that could hdp In minimiSing the negatlv~ efTeo.s ofheat;J5wcllastl)()S!' Lhatcould help in purifytngwa.~r. ft'edback (rom farmt'rs In att~ndanc~ lent crt:dence to fanners' concerns as one fann er advised that the sues of pacicJges need to be such as smaJl'SCilTr- fanners could afford Another fanner and a veterlnar· lan, S~phen Adejoro, added to me presentations of Kolade and omga. Sdying that mycotoJl:lns Me other sets of 'pront~aters' In farms as they Interfert: wlm vac· cin~ ~mGlCY In addition to meir ability to rrouce Immunity In an· Imals. H~ would wish steps were tak~n to tackle the problems of mycotoltins In fm:fs in Nlge.ria among livt'Slock and poulny fa rmers.