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FRIDAY, UAJlCII JO, 2012
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Indu~l.ry_ _ _ _ _ _ _ _ _ _ _ _ __
Nigeria may soon be spending $10obn on rice importation yearly - Notore boss ow b fertiliser 6uIMidy RUlIlaged under Ule new system , unl ike Ule imlKlrt regime? Essentially, ~'e lin' not into fertiliser procurement, but W! sell as we manu(lK1ure through our distribution network.. We don't procure fertihzcr. Not that th~ ill no subsidy provision now. The diffue.nCl' il; thai the subsidy now goes into activitie$ that WIll create I \':tllIC chain of effl!C\.l.. Just as we aU know, ",'hen the) "'~ ~1Jring fmiliser fOf fanners. suposedly, government would Iolf. "' want to do this or that conlrad
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yur. let
~e
come and tell me how much they can supply
me and then bow nlUch !hey want us to pay for what they Ire going 10 be doirtl ' So, the CUrmlt administration is u)in& it has !topped that The gm~ment II nol in the business of doing big contract!, \~ contracton will rome and supply 10 or 2O.rrs of r·mliser, as the case may be.. \Yhal they have decided ls th~llhey will USI!: their money now to try and pass.lhat ~utmdy diredly. which lechnica1ly means it will go diruLly to fmne~ The gO\~l1lIIlt!:nt has been aeating I dati base offarmels 0;0 lbat il is now Ible to pve the subsidy direcliy 10 those fnmlen it IDlY hl\'e identified. The 5ubsid)' comes 10 sm.IJboI, 1m flrmen in Imall but useful amoullu of money Ihal enat,le them to procure fer1ilisers according to their lleeds, 50, it'S~ n 1.\ if one bi& c:ontt1l.ct is there, in which a fanner will & hili own voucher, The new stralezy is to use Ihl.' mobile ph lie Itl delh'el' what they call electronic voucher! to registered Imen, n il.' system eliminates all lbose people, whol1ream t lOT' Illd whose bustn!SS is 10 provide fertihsers and 11.'11 the g 'mmenl thlt thl!)·art' pUlting subsidy. without actually aDo", n, it to ImllaCt on famlen. 11le plan .15110 re""'ve tbm completely so that gCM!m ment can make ~ subsilly available d.recliy to the man, woo actually WlInt,(to blly All he does is 10 take the voucher alon, and ,,.y. nle r,lml~r 1\111 then pUllus cash to balan~ For us. as I MiIIl...""'. i'. i, lood. we arr sel.linJt oonnaIIy: we are nO! dome bi,'aJntllKl We Ife selhng to t"\~r)-body, who has the monty to )lclY rhe farmer now uses hiS smart subsidv to au,gment .....hat he b;)l ld ha\", bott,hl H ow is N f lorl"s mode o f opera tion d ifferent from the furmer 1)Slcnl offutilise.r distribution o perated unde r th l!! ~E i ..el' import r-qpme? As; ,,-e Itl .5111. In busmess we hA\'I.' lned to (ocus 00 efficient dist hltion network. We Im\'e effm.h'l.' distribution nerwork_ We.! nllo'¥ our dislribulcn to sCI to the 'illile ,00~mment.)!M 1,1tc any other customers WI!! don', get mto Ihis id9 that f"e hl \~, 10 ,et • cuntrnct and then "'''' bll!gin to ""mt for pav"tent. N' sell through our dJ5lnblllOrs and tbe cu5tomers "'i~ KO ,In.1 meet tllem Ir,d lIgro'e on how tIll!) an! gOlll8tosellt thet!l. lI o w fc~ ilJ le iI; lite :w15 tllrget o( the Fet.le ral Go\'crnmcnl to ~,a n rice 11II)>orlalion IJld meet local d l!!lllalld? II is fellSiijf". il h hllrd "''{Irk. Today, ",'1.' IlTe importill3 close to about '531 n worth of nee. For ituta.nce, when you t;roW upland rife, Ie ca.n gro'" nee from Sakoto all the way to Ba)"!1sa. 8y 105l ,('Uf rice t'Onsumplion will be between 20 Ind 30MMTs.. So, ( :'-00 muhiplv that. you hl'~ an Iverage of SI.OOO peflt.nn . 'Ve can do II ounel\'eJl; "'-ecan growtllll! rice. It is very. "1.'11 ' fe uible. We ha,'C' three times more arab le land than counlritll, like Paiustan ,Ind Smpporr. III lerms population Jliu .. m land mau: "~Ift" 900.000 sq kilometres. Pakistln ~ plOducin, ,,·heal. Om- tiole. the) "''el'e producm, .. bout It 1( miUiuo mt"lrk tonnel 'I( t·II .. 1 But lodal. theY lTe pwducing loout20M'IT, IIo:w.m'lhey dOllljt it? JleqtU.~1 tit!!" arr toluumin, over ~ Ie million tOIUW'$ o( f.m.tll5l.'lh, 0;0 their yields IlII!r hrdm-eol Ifiok& pi!!r hedare is I\hallh.:J a eroll5uming ill fertiliRrs. Weare using el tarr pt'f annum. So, If)Ou IISl' the same less UIAII IOkg kind OUOCIIS tlll't PI lSinn uses. Itt's ~n}" on wheal production. Wt concenll'31t !II ml,thing tikI' th.11 on rice production. tsl)f('lally .... heA 1\11 h I\~ lim!e lime· IIIOt>- arable land tlmn they. \I~ ",;1111(' &~e 0 :tchiel~ Whill is ~quiled in tenns or self suftirit'n~ 1I11~t'f production Wt a~ IOll'Urting close to S3bn oi nrt' 1(."1\ lilt! thll is "l!In~ 10 bo· aboul Stoobll III al.>111 2t) '0'11('< tim' \'t ha'~ 10 1"'r'l1 10 I·rudul"t' ril'" I",,!ll\
Fertiliser is one product with both business cJ..d political sides. The Managing Director, Notore Chemical Industries Limited, Mr. Onqjite Okoloko, in an intera.c tive sessioni with journalists in Lagos, speaks on the effects of the r ecent developments in the fertiliser industry in Nigeria and the role of his company in the nation's agricultural revolution. LAYI ADELOYE !'las there.
·O"oloko "'''' can grow rioe.lil.e I said, all acros5lhe 00111111}. The means "'111 be: thl!!re and "',. can process the rice 10 m~ the kind of qualit)· that (001)" we want to see. Wilh urbanisation. staple food h... now shlfle.<llo n« benuse people are mtJ\ing to thl' urban arelli 50 people ha\-~ leH I1me to mok.lilfl fastest thing to cook is rice,50 "' •• need to make SUI? thai Ihat is whrre we are going 10 start from " 1Iel'"'ll! was aliml!! you " ere plilining 10 gu (or listing on th e Nigeria n S t ock Exchange. What is the situatiun now? We ";11 ~ in the stuck market. The plAn is UUII by the end of this year, WI' would have concl uded the pians 10 list the company. By tillS time next year. yOli will hear or us in tlte market. But the Idl.'a is nut really III raise money (or lilis uislin8 plant; II is 10 allow liS 10 expand through the brand new plans that we are goill3 10 the market for Ind Ihat is the primary reason So, we arr wueking on expanding our business. The lI!."tJM!Ctll!d fund is nol fOf tltl!! current p1811t. We are doln& this "'11h lIur nll!W Illant in view. The 1lII!1\' plant "'~ will build will requit"P us 10 ralSl! some money, and thai is what "''I.' will be: doin. How much I r e you looking forward to im'e5ting in the n e w plant and what ",m be its ca pacity? For noYi', I don't wont to disclose an)" specific amount. 8uI t am sure it is gomg to be up to, at least, one billion dollars. I say IhlS becau5I.' II takes up lO, at lea5l, Slbn 10 build a brand new f~rtniser phlnt And the questit·n of the cap"city uf our nfl\ plant. unfortunately, _ a 'e 1101 lOin, to be: able to !I1'f' \'011 that infomlHtion becad.$f; work is going on But whal ) can assure )"0\1 is thlll tit, site of the plllllt will be larp.er thin the existing pianl F(lrthu~" II( \"11 who ha\f' ~n there , you ha\~ seen lile site oftht p1~nt It I un dUoIII)60 hectlll1!.'i prupem. And 10 be ilille tn JlLlI III' a \·I.lIt \'Ull dtln't nerd U\l to mol"!' than 2,50 ht"CIaft"; .... l. \,' ha, IIII.' hllld. III.' I. IIplhpllMlll"'.ln1;ml..:o;ion.
"We are impOI·ting close to $3bn ofJ'ice today; and that is going to be about $loobn in about 20 years time."
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"''I.' ha\'"I! thl!!jetty, """ have everythinSHow nluch are your pac"" sold (or in !hI!! OJ>Cn market? We ha\~ ont kilog.ramme. We h.a,~ 10kg and 501<3. A kilo 15 sold for NI50 and thll IS the !"elJlOn we _nI 1010 doing lk& bag. Prior 10 Notore coming on the 5C'I.':ne, the situalion WilS thaI a farmer needed to ha\'"I! about Ns,ooo 10 be ablt to buy a tonne. Imagine. a poor famler, ",·ho hili 10.5lVll! Ns.ooo 10 be able to buy just I tonne of fertiliser' One Iq, is so ml!!ap UIII will encouragt him 10 buy Thai IS o~ of Ihe initiati~ that it will help us to promote thl!! USC! o( fl!!rtihser. One of the things that used to happen Wllli that the peoplf who bought sokr; bag brokl!! il down in io hits. Now. m bl'ealung lbe bulk.. il is very difficult to know the quality and the potency of the things YOll are bll}in&. 0111.' of Ihe be:nefiu o f bUYIng Ikg bag is that the people. who use this bag. whtnlhey Iry it and It works. tomorrow, the sa me peoplewi!l go (rom Ikg 10 101q,. By thiS, the fer1i1iser ll.5Ige culture is promoled Is exporting your I)roduc t ill a countf) , whl!!re de.III.lld is hi gher lhansupply, not M wayofamplifyinJ; your worth ? It is not an amplified WI) lo.sell. Nigeria has ont' ram-fed (Armin, season, and ,,~ know lhere I~ ramy .season and my seasons in Nilt'na.. So "'hat happens IS that peopll!! "'111 not be: buying fertllser in the dry season; liley buy durint. Ihe ram~ season. 1\ hleb IS the hal'\'eSt petioti People buy between Man:h and maybe aboul September. When there is no fllmlln~ season. the demand for local consumption drops and It is at that tnnt Ihltt "''I.' thl!!n sell some outsl{~ the country, even thml~ we still h.a\~ some that wm!! not dditributed all)"!ar 8ut "'~ be:he\~ thai thai will chanlt becatlS. "'''' beile\'"I.' that Ih~ mmlSter tw been talkutl\ aboul how to boost inigJ.llOn fanning. We can ha\'"I.' (amling liuou&houl Ule )~r and I Ihink SOmf' of tht Irulial1\"e"; "''I.' ha\~ betn talking about IS the Wut of Ril~r Ba.s.in allibanlie!. We will rehllbili~te them_If "''I.' n!habllilale them, it ",iII now be: IKlSSible for people 10 mube (arm Iwice a \~r. 50, "'hen that happens , "'"I.' ",;11 conlinO!! to lIII! abll!! lu .selland "'~ will not have the need 10sell Ollr producl5 OIILsidt the country On your serond questIOn, il is lood becall5l.' our planlls a process plant. which IIIl!!an! lhal ¥."hen yuu slart running. ~'Ou cannot stop il. 5oml'times you run the plant for ~lJt monUls Wlthoul shu iling down In n process plalll, there is contlnUOIiS procll!S5. During Ule off-season In Nigeria. Ule production is usually I'ery low. In a malle t of three weeks. the planl hili 10 be cool. You have no OpllOli. olhr......;se.)'Uu &!Innat continul!! to produce So that is when export bKomes the onl\' option Whether il is \'en' conservative or not. dunllg Ihal YOU Just hal~ to explore il In \iewoftht' opl!!rating citalll!!ngll!5 1ocally. how d oes yo ur price remllin compl!!l.ith·e in thl!! inll!!TRBI.ional market? t1ow«Isl -efTttthe is you r production? We are 1~r)·consel'\'J.liye inlernationally. ) am surt' "''"I.' ha,~ a ullique advantage in I pl~ we ha,~ our o\\"n Jll!1t\.. So. In lerms ur shippin, our goods. Iht ship COllies to otlr jelty and "'~ load llltu the \'I.'5SeI, "''I.' are nOI IJaWnll And 1\'"1.' IUl' .sellin, al inlemalional price:s. likt" evl!l1body Nt. 50, "''hen \lIU loc'Ik at all those s hips. people hl\~ paid for III those ~hlp" 10 bring Iheir C1Irgoes mlo Nigeria 115 well 15 Iheir jOllflle)l back. So, tbII!y al'e \'1.'1"}' hippy. Also. the efficiency or not haVing 10 pack III ba&s and eVl.'l)thin& and "'1" pUI inlo a bulk tam~r and ,,~ elrT}' il out and we let illtemationRI compll!lIti\'I.' tlriCU. Any Impact u nlh e G ru'>5 l)o m e.~lk Product? Weare 80m, to see an inctl.'ll5t" in \'ield5 pe:r hectllre ToJal, "'~ reron! an averaAe of Ix".-I ha/"\·~t losses of 40 rer cenl. TIlal shuuld be elllnmaled c(\llIplt'lel,' Ami 10 en..~lIre Ihal other \aiues get retail\td hert. "" helll in bttildinK "I.'1'\;~es. One d.l~, we lire going to '-'" produl'mg In t.~~~ of .. hat I.e ran ("f)!\5UlIlf' Hnd br thl' nl.'tli'<p<.lrtl.'r flf food Malo", ,'rblt",·td Itmonf,ear
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