e BusinessWORLD
Page 38, THISDAY, Vol. 16 No. 5958
Tuesday. August 16, 2011
agnc Agusto & CO: High Wheat Cost, Bane of Flour Industry he high ~I of wheat in the g lobnl market is responsible for the
T
ilK'Tn.<:ing
Slori~s
bJ' Crusoe
Osagie
price of
nour in Ihe country. This LagO$ by ro~mOSI rescan:h ngency. Agusto & Co. ilt the launch of its annunl n:pol1 on the nour milling industry. Wheal is lhe major raw mmcnal used in the: flour milling industry alld inlemit· tiona] ,... heat prices h:I\~ clJart· cd an upwanl tmtd since the first h:,I'of201 I WItS made known in
The new lqIOrt said the
climbing price of Oour is fuelled by Nil!crill's heavy dependC'nce on imported wheal. o,I.hose price has hit
the roof in recent limes. "T11e nour milling ;nclwilry is heavily dtpentlent on impontd wheat (for flour
production) dut to poor domcsHc culth'lItion. In 20 10, millers IlfOund the world incurred II 48 pcrt'ml
increase in international whCll prias. owing to supply s hortllgcs ftom key net
exporting countries such as
Russia," the rq:xm 5(DlOO . II WilI1IctJ thai with the nbsence of elftctive ht'dging memurc:<i in th e industry. lhc~ would be ;In adverse impact of international wheat prices on thc induslIY's costs over the s holltel'm . Despite the neglllh'c effect of the high wheat pricc. Aguslo & Co said the ye:r hIlS mnain«l lelatively good for nour milling compnnics in Nigeril 115 they "'~ able 10 trans fer a small portion the price hike to consumm. The rcsean:h agency said the induSll)"s profitability was nevertheless moderolc-. Iy s ubdued during the 2010 financial yror. bill mnairwd satisfactory malive to other munufacturing industries in the c:cun'ry. The ~ agency disclosed that it 3I1ticipales a modCf1Jle int:reMC in I'CVCflUes of miller.; in the
Sholl tcnn . ()t:Cl';ionecl by
likel)! effort s are produet
the economk m:ovCI)' and !\II ;ncrctSC in consumer spending. "We. howeo.·er dO' not co\' isage significant imprm'Cfl'le.m in the export mnr\"et due. 10 ulleompcti. live priClOg of locall y
rdonnulntiO'n and- .pack· size variations. We. belie-.·e thc:se. slrategies would pro"ide pricc tlllXetin! opportunities for the millns and
milled nour. lIIidl 0055 bonler lradinl is CXpcCled tu penist but would rmlain marginnl Mel COl'lC.'Cfltraim ill the northern region of the countl)'," it said, adding Ihnt it Oliso MliopOlICS aUmlpts at produa diff~ en tialion in the industry, which shou ld produce more "'nriMlIs o f nO'u rs and proa:ss«l foods . "Other
increase revenues:' the It'pOrt said. lIighlillhting thc fortunes of the indu.n r), in the recent p~t . the rqxnt stilled: "Nlgeria's nOIlT milling indust!), ha..~ recorded 5i,nificant impruvemCflts 11\ the. las t len )'t.:tf'S . TIle indus t ry has grown to become O'ne. of the latEcst industries ill the food o.nd be\'Cf'3.ge seCIor ill Ihe
coonlry. Players
ha~'C
made
continued investments in pnxluctlon facilities, s torage. rxilitics. distribution
nd\\'OOc . rc:semrli ocIivities. product dC\'elopmcnt :and d ivmiliC1dion. Playcrs have consistent I)' stri ved to improve produdion rnp3ci Iy in order to mCd Ihe
leetning
demand.
The
induslry's produets m so ld nationwide w ilh margi n:aJ e:<por1s 10 some West and
East Africnn Q)Ulltries." "Due to genmtl lirest)' le and economic expansions, domestic nour
changes
ronsumption pattern has shi fial Olway from house· hold aJ5IOnlCf'j 10 commer+
on! manufacturm of
p:'I!i ta
anl4 industriAl b"kcrs (including fllSt-food OUI· lets). as ",Dlly Nigerians now
plefCl'
conw:nience.
meals. Household baking in the country has also declined ~ignilicant ly, 8.'i individu;p,f col1summ tend to purchase their bfl:ad . cakes and ot her POl5tries fmnl bakaiel. fast foods outlets and slIpermlllkets . mther than producc them lit home. Despite the impll$+ sive OHnU &tOWIh tmllls ill lhe industry, nour consumption per capita is low relative 10 countries such as Egypt and Soulh Africa."
P~RTNERING FOR
FAO Calls for Immediate Action .to Arrest Famine in Somalia s flmine spread to three
A
more
of southern Somali a and threatened to engu lf the whole of the cou ntry's south, FAO hm; warned that immet.liate ktion is needed to U\'C the Ih'CS 100 livelihoods of millions of fanners Ind pastornliSIS Across the drough t-struck 110m of Mriu. It said in a Sl2:tcment tho,1 FAO's Food Security and Nutrition Analym Unit for Somalia (FSNAU) nod USA ID's Famine Eml)' Warning Systenn Network trEWS NEl) Mnoullt'Cd in Nairobi Ibis week th:u ~'CIlIs IJlBt fllmine ha.~ ~trock three new areas of southern Somalia - Oakad and Cadaledistrict.s of Middle Shabc-lIe. the Afgo)'C corridor lOP Slett!nnenl. IItItI the MOf!:'dishu IDlJ communi'Y, FAOAAid all OIh~'t rq;iQrl(c( SOllthern Somalia are in the grip of a humanifaNII CfI1('f. gcncy which h:I5 cal.l$f:d Ihoosands of I.ic;!dlS aWJing thlll the t:ll1tf1I<::ncy i, pan of II wider drougln arwJ connict-induced crisis in Ihe Hom rof Afriallhlt threlllCI15 Ihe Ih'l:.: and liveli· hoods of 1\O!l'C 12.4 million people in Som"I'It. Djibouti. Ethiopia and Kenya and millions mort in n:ighbouring t'QUntrb. "South SomaJi:\', three new frunine :m:as juin the BnkooI zone and thc lOWCf Shabelle Iqion. whic;h "'I!fC decI~ ramine-stru\:k 011 20 July. Famine indiclll('1'5 include dc;\lh roles ue~ing 111.'0 ~Ihs per [0 rol pcuple per day and IlCUte maln utrition rntes in excess of 30 pm::att." 1lfU.'i
FAOsaid_ According 10 FI\O, famine is 5p~d IICross alt rtpons()(the 50Uth in therotn· il\l four to si:~ weco and is liktly to pmi51 tmtil al least December 2011 . FAO Wd «mIinued cffOfU
eJlpected to
10 implement an immediate. lqe-sc.aIe. and comprchcnsh'l: !eSponsc:lll: needed, $11)'ing that in SOlllalia. 3.7 million people are in crisis. with 32 mi Ilion people in need of Immediate. lifesaving UlIis· tanct (2.8 million in the south). "FAO is sed<.ing funtis to protect the nKl$I vulnerable
housl:hlllds in Somalia with a mi.:.. 0{ intet'l'allions designed 10 sa\~ 1i\'CS and livelihoods in the short-term and build food security O~ the longer haul:-
it added . Shon· tenn measures include seeds. inputs and IOOIs dislributiOlls for the Odobcr Deyr plnnting ~, mppon 10 aJ1imai health through pro\';sKIn of drugs. VllCCinc:s and training. and food-for-work prognunmes and cash trnn5.
r""Longer-teml
measures.
designed 10 build veater !eSilirocc 10 droughl and di lllate dlaIIgc include the de\"CI· opment of dmu~I-~ist.:ant Sffik.lhe impl'O\"Cme1Il of dryland trop and Ih"t:Slock pmoJuctioo Systems. devclojft11l:l1t of irriglltion inrrastruclure. Impru\"Cd slorage nnd more crTect;Vt: waler and pasture lllilnagemcol. FAO noted thai it has been working e.ffccli\'Cly in the arems most lliT«Ied by the cur· renl crisis. including Somalia ",heft, other otganizalions and ngencies M\'e fat:etl severe restrictions in aca:ss. The. crisis in lhe Hom of Mrica is !.he mD5I ~ fUOlJ security emerxcncy in the ~'ol ld tod.:ay. 1lJou$IInds o f people hnve died since its 0Md. following a rompIctc: failure of snsonal r.Unfai l in Cktoba-Docember 20 10. 1lJe siluation has beCf1 eucerbated by proIr1K:1ed conflicts that over lime h:t\'C foree.d millions of people 10 flee their hOlJllCS, abandoning land. 1n"eslock UMJ other pmdllCli~'C
"""
AATF Receives $lm Boost for Agricultural Technology in Africa te African Agricuhwal
TI
echnology r'OUndll lion (AATF)1w re«h't'd aSI million ~uppoll pac kage from the Bill &. Melinda Giles r'OOndalion to facilible the otgaIlis:lIion's oper.1!ions. which seck 10' boo6l a!ricullurnl OUlpul through grealel
use O'flCtcncc nmllechnology. TIIC fuuds will mainly suppor1 ,enernl oper:ttions. fC5OU~ mobilisation as ~'CII as moni loring ~nd CVlIluatKln or vnrious 0I1'80ing projects. which Olim at helping small holder fanners in SubSaltaron Africa impro\"C their li\'C'ilhoods aOO productivity throu'" uscof inno\1un'C leehnologlCs.
African leaders h~\'C idenliliet! usc or technology in agricultun:.. lhe sedor widely xkl1lJWkdgcd as lhe t'(IfIti nenl's 'engine ror gTuwth'. lIS Ihe best bel ror reducing
povmy andcombaling hunger. r'OOd security is a major challenge on the African ronli· ncnt. Foods.honaaes, high food prict"s and related social unrest ta n IICf)' Of'tCfl 1ead 10 other problemsJllt'ludinl! political instability. Throu &h NEPAD's Comprehensive Africll
Alricullurc
lk\'elopment
Progmmme (G\ADP), Ihe African Union aims 10' help African countries impro\'e economic growth through agriculture-led de\"Clopment.
One of the major approaches or AATF aims al promoling ngrkulturtll rest3l'th and lechn ology dissenlinQlion alld h~lping farmen gain access 10 propricury lechno~ics thaI nre don~led by puhhc and pri\'Ate cntilie:s on ro)·atty-rrec humanil~nBn basis. These ttchnO'logies ha~"C the potenlial 10 address some oC the ke), productivity c:onstninl5 lIIal affed these
Aeting AATF E.,ecuti\·e Director. Throl1&h col1.\ul l~lions to establish priorities and ranner demands , AATF projecl~ lim at add!eMing the impacr of climate change on crop pmductiviry. lem of yield cau:lCd by pests and diseases. low soil pmUucti\·i!y. poor plBnt breeding lwocesses and 10V0' mechanization. BMcd on the abo1."C prionties. AAIT is workina "'jlll various country institutions. both from governmenl Ind private sector, in projects .:aimed I t improving priority food crops. in OYer ten African
r~,
counlries.
1be costs of such technologies has boen pard ... blllfTlCd fot low uptnke of u~ful teChnologies in Africa. bul the
Currently. o nly lboul 20 per cenl o r aupland in Aftiea is SO"'II willi impro\'ed ccre:al varieties. Many new \-arietks or maize and rice hll\'C been de-.'Cloped, and are in usc in some countries. bul tllC)' must be. iId&lptcd toMm's Cfl\'ironmenla] conditions. a core mis-sion or MIT- projects. Such projects include. the Wilier Efficient Maiz.e for Africa (WEMA) projecl,
AATF inlervention is ~imed II
ensuring these lechnoloxies afTordablc ror smallhoklcr
lite
fllllTlCrs .
'1'hc support £mm Gates Foundation will help AAlF become a stronger ins.titulion nnd r:nlumce. its capacity 10 achiC'''C its missKKl of helping African fllmlCn improve their li\"Clihoods Ihrough bet~r
agricultuTtlI lethnologies: says Dr. Jacob Mi/P'lOOna. the
~=~~~O' !~:c=;: the drought periods that the· continent COfItinUd; to expcri·
,~ .
Other
pmjeclS
illClude
Strip C'OIllrol in smallholder l11aiu fanns . development of
MnNC;uesiSlal1l ct)".pe~
van-
eties. impll)\'J:lncnt (If ban;mOl £or 1'CSi.stance to "'ill disease lind impro\'ing rice productivIly in 111trngcn and "":tler.dcficienl r:1I"·ironments. Ont of Ihe IIICSI projectS is lhe bioIogial C'OIltml of Inatoxin in mOlile Ind peanuts. "We :tre dedklllcd 10 ensllrins 1hnllhis Ile\\' suppa" will make us D. rtlOfe r:fficie.llt and effecth'C institution anti ~'i ll Irn nslnte inlO faster progreu tlJWanis r:nsuring that e.dsting lechnoh"ies set to rrumc:rs' fields. says Dr. Mixuouna_ CAADP is pushing for substantial changes in how Igrku1tu~1 busineu is done in Africa. These inc:lude rea lising the CAADP agricultund goals XTOS5 Arriel while promoting agricullure as a priority for sustainable deve)O'pmCflI. Rwanda WllJ the first country 10 sign the CAADP Compac:t in 2007. By MlY 2011 . 26coumrics had incorporated CAADP inlo their agricultural stl'!19)' by signin, the CAADP Compact. M