Vanguard, MONDA" FEBRUARY 1, 2011 -- 33,
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innovative tractor lease financing cheme, designed to help private operators own tractors and increase farmers' access to tractor services, has been launched in Nigeria. The scheme is being implemented by a leading financial institution, First Bank of Nigeria Pic, in partnership with Springfield Agro Ltd the representative of the Mahindra tractor brand in Nigeria - and the Tractor Owners and Operators Association of Nigeria (TOOAN) a group representing small-scale tractor service operators. PrOpCom is helping to facilitate the initiative through its Agricultural Mechanisation Intervention. The current market for tractors is dominated by the government, whose efforts to meet farmers' demand for tractor services have largely failed. Through Public-Private Partnership (PPP) schemes, the government sells tractors to farmers at a subsidized price, thus creating distortions in the market. These PPP initiatives need to overcome several challenges, not least the issue of selecting farmer beneficiaries, a process that in the past has been based more on political patronage than on farmers' ability to repay loans. The result is slow development of the tractor market with companies jostling for government contracts that are susceptible to overpayment and, ultimately, a failure to deliver tractors to farmers. For instance, existing schemes have seen tractors purchased at prices higher than in the open market. The signing of the Memorandum of Understanding (MoU) at First Bank headquarters in Lagos on 17 th June 2010 marked the launch of the private sectordriven financing scheme. This is the first time a financial institution in Nfgeria is offering a product targeting the tractor market. It provides agricultural machinery companies and financial institutions with a new business model for machine targeted facilities. Under the pilot phase of the tractor intervention scheme, 50 Mahindra brand tractors will be sold to operators and farmers in Ogun, Oyo and Kaduna States through lease financing, with repayment spread ovpr 24 months. Each tractor costs N3.75 million (#15,000) and participating farmers are expected to make initial equity payment of N745,000 (#2,980). The Central Bank of Nigeria and PrOp Com are providing a guarantee for each tractor, and Springfield is supplying the product, with funding support coming from First Bank.
L-R: General PIc, Mr. Temi Tuedor; . Bank, Mr. Kebinde Depuly Gov., Mrs. Funmilayo OIayinka; and C.orporale ilf'.d CommeJual Bank, Mr. Gbenga AdemuIegun, during a courtesy visit by the Sky Bank leam 10 the Governor, m Ado-Emu on Thursda!:.
New lease scheme set to boost farmers' access to tractors Additionally, scheme participants are given comprehensive insurance cover, a 2-year warranty, maintenance support and technical training by Springfield. Speaking at the MOU signing ceremony, Mr Ernest Ihedigbo, He&d of Agricultural Finance, First Bank Pic, noted that the bank sees the tractor intervention scheme making a significant impact in the agriculture sector. "This scheme is an opportunity to prove that the private sector can really take responsibility for making the economy work without everybody having to sit back and wait for the government to do it right," he said. He added that First Bank looks forward to other banks replicating the tractor leading model, as the pilot scheme will be a useful guide to other institutions that may seek to adopt it. Ihedigbo urged customers to ensure that the scheme offers safe transactions and becomes an exemplary industry model for increasing agricultural productivity and employment opportunities throughout the nation. TOOAN Public Relations Officer, Mr Kayode Kumolu, speaking on behalf of his organisation, said that the scheme will provide TOOAN members. who ordinarily had no access to funding, with the opportunity to own a tractor, thus enabling them to raise their incomes through a tractor service business. Mr Julian Peach, Programme Manager at PrOpCom, noted the potential
of the tractor leasing scheme to bring about large-scale change in the agricultural sector. By expanding access to tractor services, the initiative will empower farmers to increase farm
productivity and improve livelihoods. Sunil Mohta, Chief Finance Officer, Springfield Agro, said, "we are proud to be associated' with this project. When the project
was first brought to our attention it looked a little difficult but, as we moved on, we have solved, ftep by step, every problem. We will do everythlllg to make this project a success. "
Global fish demand rises, stocks need rebuilding - FAO Obal fish consumption .s on the rise as people increasingly look for healthy and nutritious food. About a third of world fish stocks need to be rebuilt and irregular fishing reined in, the Food and Agriculture Organisation (FAO) said in a report. Fish consumption rose to a record 17.2 kg per person per year in 2009 and would rise further as more people recognised the benefits of seafood, the UN agency said. A portion of 150 grams of fish provides 50 per cent - 60 per cent of the daily protein requirements for an adult and fish is also a source of V&rious vitamins and miner&ls, the FAO said in the State of World Fisheries and Aquaculture report. Globally, fish provides more than 1.5 billion people with almost 20 per cent of their average intake of animal protein. China, the world's biggest fish producer, accounted for most of the global rise in per capita consumption due to a substantial increase in its fish production, mainly from the
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growth of aquaculture, the report said. Fish products are among the most-traded food commodities, with a record 102 billion dollars turnover in 2008, the report said. Fish farmers are optimistic that far more fish can be produced, but a rise in excessive fishing and a fall in stocks which can expand production have raised concerns, the FAO said. "That there has been no improvement in the status of stocks is a matter of great concern," Richard Grainger, senior FAO fisheries expert and one of the report editors, said. "The percentage of over exploitation needs to go down although at least we seem to be reaching a plateau," he said. In 2008, some 32 per cent of the stock groups monitored by FAO were estimated to be either over exploited, depleted or recovering' from depletion after excessive fishing and needed urgent rebuilding to return to maximum production levels. Only 15 per cent of stocks
were estimated as under exploited or moderately exploited, meaning they could produce more than their current catches. This was the lowest percentage recorded ,ince the mid-1970s, the FAO SdId. Some 53 per cent of the stocks were estimated to be fully exploited with their current catches at or close to maximum sustalIlable productions and wilh no room for further expansion. Most ofthe stocks of tb~ top 10 species, which account in total for about 30 per c~nt 01 the world marine capture fisheries production in terms of quantity, are j \lily exploited and, therefore, have no paten ti it 1 lor increased . production , ,,",-0 said. Illegal, unreporled .e;J.j unregulated fishin9 eke.s 2 heavy blow to dv路inc l' resources, FAO 5'-1:11 called on governmu".c international bodi u ,. c C '-~ global vessels ,L.,路 increase at-sea in:;!~ ,:r:s and improve cerL",路, (," schemes. f-