www.nigeriapackaging.com
N300 $5
The Premier Publication of the Nigerian Packaging Industry
ISSN 2465-681X
Vol. 2 No. 4
October - December 2016
BOBST Nigeria Opens Lagos Office
FIIRO @ 60
F.R.S.C. Partners S.O.N.
TRANSIT PACKAGING ...Reviving The Railway Sector Rotimi Amaechi’s Agenda
Editorial Team Editorial Ahmed A. Omah Editorial Director/Publisher Folashade Oba Deputy Editor-In-Chief Hillary Damissah Associate Editor Gbenga Kayode Editorial Consultant info@nigeriapackaging.com +2349030001903 +2349030002903 +2349030003903 Subscription Rebecca Okogugha subscription@nigeriapackaging.com +2349030004903 Production Taofik Hassan Art Director Femi Solomon Web Manager George Obaido Web Manager production@nigeriapackaging.com +2349030005903 Videography/Photography Lekan Mejigbedu Chris Ayo Abubakar Egbeweli +2349030006903 Marketing & Circulation Moji Alabi Victoria Obaido Rebecca Okodugha marketing@nigeriapackaging.com +2349030007903 Legal Advisor Ogbemudje, Omezi & Co. GRAPHICS PACKAGING COMMUNICATION LLC 28B Gbemisola Street, Off Adeleke Street, Off Allen Avenue, Ikeja, Lagos, Nigeria. Tel: +23417914462, +2349030008903 Email: media@nigeriapackaging.com Website: www.nigeriapackaging.com
CIRCULATION Lagos, Abuja, Kaduna, Enugu, Otta, Agbara, Ibadan, Port Harcourt, Jos, Kano, Benin - across the six-geopolitical zones of Federal Republic of Nigeria. Ÿ
FCMG and Packaging companies, targeting MD/CEO, corporate communication Directors and Managers, Brand Managers, Packaging Managers, supply chain Directors and Managers, Production Managers, Packaging Manager, QC & QA Managers, Food Packaging Technologist, R & D Managers, Sales & Marketing Directors and Managers, Production Planners, others. Ÿ
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Major Banks, Embassies, SMES, Universities.
Government agencies, viz: SMEDAN, NEPC, SON, BOI, NEXIM Bank, FIIRO, NAFDAC, RMRDC, LEGISLATORS etc. Ÿ
It circulates within African Packaging Organization (APO) members viz: Institute of Packaging Nigeria; Institute of Packaging South Africa; Institute of Packaging Ghana; Institute of Packaging Professional Kenya; Packaging Technical Centre (PACKTEC) Tunisia; Tanzania Packaging Association. Ÿ
Circulates within World Packaging Organization Board members and member countries during WPO Board meetings. World Packaging Organisation holds two meetings annually, organized by member association. Ÿ
Autumn meeting of the Word Packaging Organisation, 14-18 November 2016 Vienna, Austria. Ÿ
Spring meeting of World packaging Organization 04 - 10 May 2017 Dusseldorf, Germany Ÿ
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K2016 , Dusseldorf, Germany.
Couriers by FedEx/ Red Star Express & NIPOST/ EMS. Ÿ
OCTOBER - DECEMBER, 2016
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EDITOR’S NOTE
A Nation without Packaging Industry Policy
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igeria celebrates its 56th independence anniversary despite the economic recession, so much uncertainty pervading the economy threatening businesses while forcing some to close down. Although development of the Nigeria's (packaging industry) has been a slow and steady progress since it gained independence five decades ago, there still pose to us some challenges we must overcome. The full potential of the packaging industry is yet to be manifested and this is as a result of lack of industrial policies in the printing and packaging sector, continuous failure of the government year after year and decay in almost all entire manufacturing sector of the nation. As Nigeria clocks 56 in this era of change, will the table turn for the Packaging Industry? Or should we wait for another Messiah? There is dire need for a standard policy guiding the Nigeria Packaging industry, an industry estimated to grow compared to other industries. Reports show that the packaging industry which cut across different sector is growing at 12 percent yearly. According to a survey carried out by PCI Film Consulting, Nigeria's packaging industry has accounted for 12 percent of the $4billion recorded by Middle East and African markets in the last five years. A brand new market report from Smithers Pira, the Future of Packaging in the Middle East and North Africa to 2019 forecasts that the MENA packaging market will grow from $35.445.2 billion in 2014-2019 at a CAGR of 5.0 percent; a higher growth rate than the global packaging market, forecast to grow at 4 percent. This shows that it's a growing industry that needs the attention of government. Some financial experts have advised the Federal Government to pursue economic policies that will boost liquidity in the financial system. They told the News Agency of Nigeria (NAN) in Lagos recently that the right economic policies would bring about the much needed liquidity and restore investor confidence in the capital market. We call on President Muhammdu Buhari who is optimistic in his Independence Day speech that 'within months the whole country would begin to feel a change for the better' to visit the Packaging industry as well as other sectors for a proper policy. This we believe will aid a better Packaging industry and a booming economy. Happy Independence Celebration to Nigeria and to all our readers out there.
... and still counting. OCTOBER - DECEMBER, 2016
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OCTOBER - DECEMBER, 2016
8 COVER Transit Packaging: The Rotimi Ameachi Agenda
Transportation is an essential part of human activity, and in many ways form the basis of all socio-economic interactions
12 TRANSIT PACKAGING - LOGISTICS & DISTRIBUTION
FRSC will Partner with SON on Transport Packaging
16 NIGERIA PACKAGING INDUSTRY NEWS
NIPEX 2016: Government To Invest In Printing And Packaging Industry To Empower Youths
13 NIGERIA PACKAGING INDUSTRY NEWS
Celebration Of An Icon
14 NIGERIA PACKAGING INDUSTRY NEWS
Viability Of Packaging Will Reduce Post Harvest Loss
20 NEW PRODUCTS
20 PACKAGING MACHINERY
FarmFresh Launches New Premium Packaging
BOBST Strengthens Delivery to Customers in West Africa
25 PACKAGING DESIGN/GRAPHIC
Packaging Design - A Brand’s Secret Weapon
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27 MARKET RESEARCH INSIGHT French And German Pavilions For Nigeria Agrofood And Plastpack Nigeria 2017
OCTOBER - DECEMBER, 2016
29 RESEARCH AND DEVELOPMENT Why Packagiung Should be a Centre point for R & D in Nigeria
COVER
HON.CHIBUIKE ROTIMI AMAECHI Nigeria’s Minister of Transportation OCTOBER - DECEMBER, 2016
8
COVER
Why Government Should Revive the Rail Sector By Ahmed Omah
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ransportation is an essential part of human activity, and in many ways form the basis of all socio-economic interactions. Indeed, no two locations will interact effectively without a viable means of movement. In many developing countries, inadequate transport facilities are often the norm rather than the exception. Yet, a good transport system is essential to support economic growth and development. Rail transport is usually the most suitable mode of transportation for heavy traffic flows when speed is also an advantage because of the lower cost per person per load as the train load increases. Nigeria's single-narrowgauge railway line constructed in the colonial period was for many years the only mode of freight movement between the northern and southern parts of the country. Railway transport, which is a very small division of Nigeria's transport subsector is inefficient and has hardly developed at all over the past years compared to railways in the developed world. This is due to lack of a functional transport policy ensuring a constant pattern of railway development. It once had the most comprehensive set of data which described its activities, but
9
unfortunately, the Nigeria Railway Corporation (which is the sole authority in charge of rail transport) is today an ailing parastatal. The rail is considered to be the safest mode of transportation that has the capacity to carry more goods than 100 trucks can carry at a time; this means that if we can develop the rail system, then there will be fewer trucks on the roads, thereby reducing fatal road accidents, as well as the dilapidation of our roads. Again, it is only in Nigeria that the rail system is not valued; in developed economies, the rail system contributes in no small measure to the development of the economy. More goods are transported faster, while accidents are reduced significantly. Years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity and utility of the system. Couplings of the chopper kind, vacuum brakes and nonroller bearing plain axles are also obsolete. By early 2013, the only operational segment of Nigeria's rail network was between Lagos and Kano. Passenger trains took 31 hours to complete the journey at an average speed of 45 km/h. In spite of the dominant position of road transport in the sub-sector,
OCTOBER - DECEMBER, 2016
former President Goodluck Jonathan really achieved a lot by reviving the rail transportation sector which had been dilapidated for several years. However, a lot still needs to be done if Nigerians will embrace the rails again especially in the packaging industry which is an ancient industry that has been around since the early days of man. Packaging in some form or another has always been around to assist man in transporting, storing, and protecting a variety of items. Early man would use crude packaging materials and designs to meet the needs of hunting and gathering to survive. As technology advanced, packaging materials and processes advanced. The packaging subsector is faced with challenges which increase the cost
“
It is only in Nigeria that the rail
system is not valued; in developed economies, the rail system contributes in no small measure to the development of the economy. More goods are transported faster, while accidents are reduced significantly.
of production. These challenges range from irregular power supply, delays in clearing goods at the ports, logistical issues (transportation of goods is
COVER
mostly by road, with many roads being in a dilapidated state) and multiple taxation at the federal, state and local government levels. Worldwide, it is government's responsibility to create an enabling environment for business to thrive. Without government taking a bold step in creating the rail line, the economy will slow down and there will be a lot of
“
Nigeria has a lot to benefit if we
develop our rail system, President Muhammadu Buhari should focus on the revival of this sector. Be it rehabilitation, refurbishing, reconstruction or the like but if Nigeria is to keep its economy on track, the railway system needs an overhaul.
MR. EDEME KELIKUME, CEO, Connect Rail Services Limited
unemployment. The Packaging industry in Nigeria has never fully realised its potentials and thereby failed in contributing its quota to the growth of the economy. Furthermore, lack of proper transportation of food items constitutes much of the problem of food wastage. The transportation sector is limiting the quality of commodities that Nigerian consumers need and get. If the farmers do everything right, the product will be damaged before reaching the markets due to non-refrigerated transportation, poor road conditions, and lack of understanding of how to transport the produce properly. As regulations are not enforced for weight restrictions on roads. Stakeholders in the industry has stressed the need for an efficient transportation system that guarantees delivery of fresh and high quality produce to processors in locations far away. Mr. Edeme Kelikume, Chief Executive Officer, Connect Rail Services Limited stressed the need for farmers, processors and investors to patronize the Railway Transportation system for moving their produce from one location to another, for better, timely delivery, when compared to the use of trucks. OCTOBER - DECEMBER, 2016
He made this call recently at an event hosted in Lagos organised by Global Alliance for Improved Nutrition (GAIN) on Postharvest Loss Alliance for Nutrition (PLAN) on 17th May, 2016. He stated that functional railway system should be provided, a very good transportation link in the cold chain and commodity supply system for perishables in Nigeria. This, he say, will have a positive effect on reducing Postharvest loss/waste. In developed countries, transport policy is dynamic and changes responsively according to technological trends in the transport sector. Government policy in respect of rail transport innovation and development are fairly consistent and largely limited to policy making and execution. Meanwhile the railway infrastructure and provision of services are largely left in the hands of private enterprises. This approach has generally enhanced efficiency, punctuality and reliability. Thus, Nigeria has a lot to benefit if we develop our rail system, President Muhammadu Buhari should focus on the revival of this sector. Be it Rehabilitation, refurbishing, reconstruction or the like but if Nigeria is to keep its economy on track, the railway system needs an overhaul. 10
TRANSIT PACKAGING-LOGISTICS & DISTRIBUTION
FRSC will Partner with SON on Transport Packaging By Folashade Oba In a bid to enhance appropriate packaging and transportation of fresh fruits and vegetables, the Federal Road Safety Corps (FRSC) has said that it will partner with Standards Organisation of Nigeria (SON) to ensure compliance on the roads. It would be recalled that SON, whose core mandate is to establish and
elaborate standards has recently proposed a legislation to replace raffia baskets with plastic crates for transport packaging of fruits and vegetables within Nigeria in order to reduce postharvest loss/waste and increase food safety. Dr. Boboye Oyeyemi, the Corps Marshal, FRSC, in an exclusive interview with Nigeria Packaging Journal, said
Generally, overloading a vehicle with goods or passengers is prohibited by the FRSC Act, 2007 and the NRTR, 2012. FRSC has been enforcing the provisions of the laws with respect to overloading of vehicles with goods and passengers.
OCTOBER - DECEMBER, 2016
once the legislation is passed, FRSC would be willing to enforce the law of ensuring that properly packaged goods are rightly conveyed on the roads to its destination using proper transit packaging. He opined that it is illegal under the law for overloaded trucks of agro products, food and beverages to be moving interstate as there is penalty for such act as provided in section 26(2) FRSC, Act, 2007. “Generally, overloading a vehicle with goods or passengers is prohibited by the FRSC Act, 2007 and the NRTR, 2012. FRSC has been enforcing the provisions of the laws with respect to overloading of vehicles with goods and passengers. Section 26 (1) FRSC Act, 2007 makes it an offence for any person to overload a vehicle with either persons or goods,” he stated. Oyeyemi disclosed that the major challenge in implementing or enforcing the provisions of the law in respect of overloaded motor vehicles is inadequacy of weighbridges on major roads which has hindered accuracy in assessment of weight of motor vehicles. He said FRSC plans to curtail truck with agro products and over loading generally by collaborating with the Federal Ministry of Works and relevant States Ministries, West African Road Safety Authorities at the regional level, to construct Weigh Bridges and rehabilitate existing ones to functional state and to be used in all member nations. The FRSC boss who reiterated on the core mandate of FRSC, said the corps is statutorily saddled with the responsibilities of educating motorists and members of the public on the importance of discipline on the highway and also how best the roads could be used for everybody's safety. “In FRSC's efforts at making sure motorists and other road users are adequately enlightened on safety on Nigerian roads, there is inclusion of Road Safety in school curriculum, embarking on road safety programmes on both electronic and print media, production and distribution of stickers, handbills, and pamphlets containing road safety tips, engagement of road safety stakeholders on major innovations are some of the concepts and innovations introduced by FRSC,” he revealed. 12
NIGERIA PACKAGING INDUSTRY NEWS
Stakeholders Celebrate a Packaging Icon @ 53
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lhaji Ahmed Omah, Publisher/Editorial Director, Nigeria Packaging Journal an Icon in the Packaging and Labelling industry who clocked 53 was celebrated by BOBST at the inauguration ceremony of Bobst New Office in Lagos Nigeria, during a cocktail reception held on Tuesday 20th September 2016 at Eko Hotel and Suites, Victoria Island Lagos. About sixty VIPs, CEO's and Managing Directors of FMCG, Packaging and Labelling companies, along with Mr. Yves Nicolet, Consul General of Switzerland in Lagos; Mr. Michael Deelen, Head of Netherlands Rep. in Lagos/Deputy Head of Mission Abuja; Mr. Tony Groomsman of Dow Chemical, Mr. Bayero Agabi, CEO, Transatlantic Media Company Limited (TMC); Nnali Shekari, Creative director, Integrated Dairies; Nigerian government officials and the media witnessed the occasion. Omah who was so elated at the encomium, thanked BOBST for rejoicing and celebrating with him at their August occasion. Samir Khoudja, Managing Director, Middle East and Africa BOBST, other members of staff team from Italy, 13
Tunisia, and Switzerland joined Omah in a symbolic cutting of the 53rd anniversary birthday cake.
Tony Groosman (DOW) with Susi Moore (IPSA)
Mr. and Mrs. Sumeet Menda (AYUSH)
Center: Samir Khoudja, MD, MEA - BOBST,
OCTOBER - DECEMBER, 2016
Ahmed Omah Editorial Director, NPJ Omah was born on 20th September, 1963 at South West Ikoyi, Lagos to the family of Mr. & Mrs Bello Alex Omah of Edo State. He is an Alumina of University of Benin (UNIBEN). He is also a Premium member of the Institute of Packaging Professionals in the US; and has attended courses at Michigan State University's School of Packaging, the Indian Institute of Packaging, British School of Project Management, New York Institute of Photography to mention a few. The First Vice President of African Packaging Organisation (APO), which he co-founded in 2011, and a founding member and current Executive Director of the Institute of Packaging Nigeria. He is the Publisher/Editorial Director of Nigeria Packaging; Nigeria's premier publication on the fast-growing packaging industry. He's also a Board m e m b e r o f Wo r l d Pa c k a g i n g Organisation (WPO) and has served on the WorldStar Jury in 2009-2016. Omah has more than two decades experience in paper and paperboard packaging. He is happily married to Stella Omah and they are blessed with a son and two daughters.
NIGERIA PACKAGING INDUSTRY NEWS
Panel Discussion
VIABILITY OF PACKAGING WILL REDUCE POST HARVEST LOSS Ÿ Symposium on Reduction of Postharvest Loss on Fresh Fruits, Vegetables and
Packaging holds in IITA. Ÿ Stakeholders: SON, NAFDAC, IOPN, APO, Legislator, FIIRO & Academic Campaign for Packaging Feasibility By Folashade Oba & Ahmed Omah
S
tandards Organisation of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC), Institute of Packaging Nigeria (IOPN), Africa Packaging Organization (APO), Legislator, Federal Institute of Industrial Research Oshodi (FIIRO), Academia, farmers and consumers all converged at the prestigious International Institute of Tropical Agriculture (IITA), Ibadan
Development (R&D) in Nigeria because it has been neglected. She said the importance of packaging cannot be overemphasised, that it should be taken more intensely and given a critical look in Nigeria. “That bring us also to the part that we have to look at packaging critically. Packaging is one of the major challenges, a very staid area that we have not looked at in the area of research in Nigeria.
Packaging is one of the major challenges, a very staid area that we have not looked at in the area of research in Nigeria. Packaging has not been a centre point in R&D in Nigeria, she stated. Nigeria on Wednesday 10th August , 2016 in a Symposium tagged: 'Reducing Postharvest Losses on fresh fruits, vegetables and Packaging organised by Global Alliance for Improved Nutrition (GAIN). Dr. Gloria Elemo, DG/CEO, FIIRO opined that packaging which is one of the major challenges of Postharvest loss on fresh fruits and vegetables has not been a centre point for Research and
Packaging has not been a centre point in R&D in Nigeria,” she stated. Elemo revealed that FIIRO which has a mandate for packaging as its major aspect of assignment is now working in the area of bio-degradable plastics to incorporate clay into the polyethylene mostly for food products which fresh fruits and vegetables are one of the major targets. She said there was need for OCTOBER - DECEMBER, 2016
appropriate process technology to develop new product lines from all our fruits and vegetables in such a way that they can scientifically be handled to meet food safety regulations, good manufacturing practices to be more visible in the export market. Elemo however called for technology transfer in terms of training, collaboration with Universities, research institutes to find a lasting solution to the postharvest loss of fresh fruits and vegetables that working in isolation is not the best. “So in the area of preserving fresh fruits and vegetables, the procedures that exist in our universities should be re-packaged and be made available to meet most of the policy direction of government in the area of job and wealth creations, and preservation of over 45 percent of the postharvest losses. The universities must be challenged and they must bring results,” she said. Earlier at the event, Alhaji Ahmed Omah, 1st Vice President APO and Executive Director, IOPN noted that developing packaging education has been a very big challenge in this part of 14
NIGERIA PACKAGING INDUSTRY NEWS
Honourable Munir Danogundi the world, because no institution is offering packaging as a course, adding that 40 to 60 percent of our farm produce especially tomatoes and vegetables are lost due to poor packaging. He stated that packaging which is a science, art and technology of preserving and protecting products for distribution has now become part of the supply chain because no product from the source of origin gets to the consumer without packaging technology. “In developed countries, a lot has been put into educating people as far as packaging is concerned and in this part of the world we are still trying to meet with what is attainable globally. If you take a very good look at education in Nigeria, there is no institution in Nigeria that is offering packaging as a career/profession and most people are not well informed about the profession called packaging,” he said. Professor Ogugua Awoh, former Head of Department, Department of Food and Technology, University of Ibadan said our value chain needs to be strengthened by introducing simple technologies including, educating the farmers on how to harvest properly, introduce storage facilities, establish packing houses where fruits and vegetables can be treated so that they 15
Professor Ogugua Awoh
don't spoil too easily. He therefore advised that all recommendation from the workshop which is a good start to finding solution to postharvest loss should be put into practice and be sustained. Mrs. Margret Eshiett, Director, Business Support Services, Trade/Codex, Standard Organisation of Nigeria (SON) stated that a lot of standards are been developed to take care of the value chain to reduce the wastage of horticultural produce in
Danogundi, House of Representative Committee on Agriculture said that stakeholders, policy makers, farmers, researchers, processors, consumers should come together in an innovative platform to address all issues and proffer solutions right from the farm to the consumers. Other dignitaries who attested to the timeliness of the symposium include Mr. Bola Oyeleke, CEO, Tomatoes and Orchad Producers Association (TOPAN); Dr. Adeyinka Onabolu,
developing packaging education has been a very big challenge
in this part of the world, because no institution is offering packaging as a course, adding that 40 to 60 percent of our farm produce especially tomatoes and vegetables are lost due to poor packaging. Nigeria. She revealed that with the support of the government in terms of budgeting, SON will simplify and interpret the packaging standards in local and major Nigerian languages that farmers can relate with. “SON have discovered that the standards developed are too technical for farmers to understand. Hence there is need to simplify them, SON have started making the standards look friendly, simple words, pictorial, and easy to use,” she said. Meanwhile, Honourable Munir OCTOBER - DECEMBER, 2016
Senior Advisor on Food Security and Nutrition, Office of the Honourable Minster of Agriculture, Abuja; Mr. Aderemi Osijo of USAID; Dr. Augustine Okoruwa, Project Manager, PLAN; Mr. Emmanuel Ijewere, National Coordinator, Nigeria Agribusiness Group (NABG); Roberta LaurettiBernhard, Senior Technical Specialist and Mr. James Eason, Consultant to GCCA GAIN and Mrs. Promise Ogbonna, Assistant Chief Laboratory Technologist representing the Deputy Director, Food Safety and Applied Nutrition Directorate, NAFDAC.
NIGERIA PACKAGING INDUSTRY NEWS
L-R: Femi Abidoye - GM Marketing XEROX Nigeria; Izzat Debs - MD SKYSAT Technologies; Mr. Alayanju - LASG Ministry of Commerce, Trade and Investment; Tommy Ittu - Federal Government Printer; Ahmad Sajoh - Adamawa State Commisioner of Information; Fady abi Nader CANON Sales Manager at NIPEX 2016 in Lagos.
NIPEX 2016: GOVERNMENT TO INVEST IN PRINTING AND PACKAGING INDUSTRY TO EMPOWER YOUTHS Ÿ Population of unemployed increased from 500,000 to 1.5 million in 3 months
By Folashade Oba
A
gainst the backdrop of the Nigeria International Print Expo (Nipex) events held in Lagos, Nigeria, from 18th to 20th August, 2016 Alhaji Ahmad Sajoh, Commissioner of Information and Strategy, Adamawa State has said that government may invest in the Nigeria printing and packaging industry to encourage youths to be selfemployed. Sajoh, buttressing his point on the theme: 'Printing: Business and Employment Opportunities in Nigeria' opined that government is trying to see how they can assist in promoting the printing business and also to support employment generation because that is the only way a stable and a productive society can be achieved. “Essentially we came here to study the opportunities for self-employment so that we can articulate a policy and a programme as a government to ensure we use printing and probably by extension packaging as avenues for
encouraging young people in our state to be on their own,” he stated. He charged the government printers in the 36 states of the federation to be organised by coming up with policies in ensuring that the printing process is well regulated in the 36 states of Nigeria. The Commissioner however said that the outcome of the event should be tracked, monitored and acted upon and the results should be evaluated by
outcome to see how much contacts we have made here, how many businesses were established as a result of our gathering here, and how much employment we are able to generate as a result of our gathering here that is only when we can ensure progress,” he reiterated. In his paper, 'Job Creation Potential of the Printing and Graphics Communication Industry in Nigeria', Mr. Malomo Olugbemi, Managing
Essentially we came here to study the opportunities for self-employment so that we can articulate a policy and a programme as a government to ensure we use printing and probably by extension packaging as avenues for encouraging young people in our state to be on their own, he stated. Nipex 2017. “This year we are talking about printing as a business and how to generate employment. By next year I hope that somebody will track the OCTOBER - DECEMBER, 2016
Director, Printequip disclosed that the printing industry lack the capacity to effectively compete with its counterparts internationally due to capacity challenges and non16
NIGERIA PACKAGING INDUSTRY NEWS
YABATECH: Overall winner of 2016 NIPEX Quiz and debate Contest during student forum day.
2016 Nigeria Prints and Graphics Award (NPGA) recipients
the latest report from Federal Bureau of
Statistics between December 2015 and March 2016, shows that the population of unemployed increased from about 500,000 to over 1.5 million, this he said indicates that 1 million jobs were lost in 3 months. Princess Mrs. Layo Bakare Okeowo CEO, FAE Ltd.
availability of a national policy guiding the Nigeria printing industry. He further disclosed that the latest report from Federal Bureau of Statistics between December 2015 and March 2016, shows that the population of unemployed increased from about 500,000 to over 1.5 million, this he said indicates that 1 million jobs were lost in 3 months. On the other hand, Olugbemi highlighted that educational book printing, security printing and 17
SKYSAT Katik explains a point to the Federal Government Printer
OCTOBER - DECEMBER, 2016
development of the 'creative industry' potential of the industry are the three critical areas capable of generating millions of job annually in the printing industry. Alhaj Ahmed Omah, 1st Vice Pr e s i d e n t , A f r i c a n Pa c k a g i n g Organisation (APO) advised that there is need for collaboration in the printing industry adding that printers should be well educated, properly registered and be more professional in their businesses. Mr.Tunde Obokhai, CEO, DCS Integrated Media Limited, organiser of the Print expo who presented a paper on 'Re-inventing your Print Business' said there is need for every print business to look for ways to reinvent itself with current changes in order to remain in business. “The only way to keep a business going is to constantly keep abreast with changes in your business environment and reinvent your business in line with them. In last couple of years many print business have suffered decline or complete collapse because they refused to respond to change,” he said. Other highlights at the exhibition was the award ceremony organised by the Society of Printing of Nigeria (SPPN) to honour notable printing outfits and individuals across the nation. The awardees were Chief Tony Akinsoyinu, Publisher, Printing News who won the 'Doyen of Printing' award; Academy Press Plc, Heidelberg Nigeria Limited, Studio Press Plc, DSC Integrated Media Ltd, Baptist Press Ltd etc. The event did not only showcase new technologies or educate participants, it provided networking and interaction. It also had in attendance Mr. Jimmy Nnabuife, former Director of Training, Federal Government Printer, Lagos; Mr. Ittu Tommy Ittu, Federal Government Printer; Mr. Jacob Bejer, MD, Heidelberg; Mrs. Bunmi Adetayo, Lecturer, Yaba College of Technology amongst others.
INDUSTRY NEWS
WHY NIGERIA PACKAGING AND PRINTING INDUSTRY MAY FAIL Ÿ Brand Owners Shuns Local Printers, outsource Jobs Overseas Ÿ As Naira Falls, Job Losses loom in the Nigeria Printing and Packaging Industry
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r i n t i n g a n d Pa c k a g i n g Professional in Nigeria are raising fresh concerns over a disturbing occurrence. They allege that print, retail packaging and labeling jobs, which Nigerian firms have capacity to handle, are being discreetly outsourced to foreign companies and shipped back into Nigeria in different guise through the various entry ports. This is in spite of the products being on the import prohibition list of the Nigeria Customs Service. The manifest effects are in huge loss of revenue and jobs for local printers and foreign exchange earnings for the nation. M r. M a l o m o O l u g b e m i , Managing Director, Printequip said the Nigeria printing and packaging industry is faced with very difficult phase that predates current economic situation. He made this statement at the 2016 Nigeria International Print Expo (Nipex), where he presented a paper titled: 'Job Creation Potential of the
Printing and Graphics Communication Industry in Nigeria.' According to Olugbemi, Nigeria is yet to recover from the last economic meltdown of 2008/2009 that forced many printing and packaging company to shut down resulting in thousands of job losses. The industry leader opined that to sum the current situation in the industry, an industry expert described the industry as 'a very big sinking ship, with some deck already submerged and if you are sitting on the deck that is not yet submerged and you think you are safe, you are only playing the ostrich, it's a matter of time before it will be your turn.' Olugbemi while quoting the National Bureau of Statistics (NBS) in its December 2015 to March 2016 report, said the population of unemployed increased from about half a million to over 1.5 million leading to about one million jobs lost in three months. The first step to any meaningful job creation is how OCTOBER - DECEMBER, 2016
Dr. Frank S. Udemba Jacobs (MON) PRESIDENT, MAN
to retain existing ones. NBS Job Creation Survey Report (Q1, 2016) reveals how the economy has struggled to create jobs. In the first quarter of 2016, only 79,465 new jobs were created, compared to 469,070 jobs created in the same period in 2015, representing a fall of 83 percent. Manufacturers and other private sector operators recently painted a gloomy picture of how the foreign exchange restriction placed on 41 items by the Central Bank of Nigeria 18
INDUSTRY NEWS
Mr. Malomo Olugbemi MANAGING DIRECTOR, PRINTEQUIP
had affected operations in the business sector. They said that since the restriction order was placed last year, about 272 firms had been forced out of business, 50 of which were manufacturing companies. While some of the affected manufacturers have relocated to neighbouring countries, according to Manufacturers Association of Nigeria (MAN), at least 222 smallscale businesses have closed shops, leading to 180,000 job losses. Thus we cannot take the printing and packaging industry in isolation, the “ship” of the Nigerian economy is also sinking, and a lot of “weight” are been thrown overboard to steady the ship and more than ever before each industry or sector must begin to outlay its importance before “been thrown overboard.” An understanding of the printing and packaging industry globally shows that it is a means of job creation. In the United States, the sector is the third highest employer of labour, employing more people than the automobile industry. Similarly in Europe it is among the three highest employers of labour. In Nigeria it is the second largest employer of labour after traditional farming, yet they maintain such a low profile that rather than being a great giant, they are just about to disappear from sight because 19
government paid little attention to safe guard these industries, there has been continuous decline. The lack of a national policy on printing industry has led to the death of three paper mills in Nigeria even though it is reported that they have been sold to private investors with the aim of reenergizing them. There are concerns that these investors may not be genuinely interested in reviving this vital industry, which is fundamental to the paper & paper board packaging and educational development particularly book production. One only hope the paper mills were not acquired to further bury the industry so that importation of paper and boards could continue unabated. However, if recent words coming from stakeholders in the
Mr. Kola Farayola FIRST ALUMINIUM NIGERIA PLC
rife that big publishing firms win contracts worth billions of Naira from government to print and supply textbooks and exercise books and then take them to Asia to be done and shipped back into the country. The same is said to apply to companies that need one form of
Thus we cannot take the printing and packaging industry in isolation, the ship of the Nigerian economy is also sinking, and a lot of weight are been thrown overboard to steady the ship and more than ever before each industry or sector must begin to outlay its importance before been thrown overboard. print business community are anything to go by, that initial flurry in business appears to be quieting fast. Among other reasons perceived to be responsible for the lull, concerns are now being raised about a disturbing phenomenon whereby multinational packaging companies, publishing and allied firms are returning to the old way of outsourcing to firms in other counties, printing jobs for which Nigerian companies have expertise and capacity to deliver. Specifically, allegations are now OCTOBER - DECEMBER, 2016
printing or the other to be done on their retail packaging films. The non-availability of a National Policy on Printing and Packaging has made the industry a no- go-area for most financial institutions, making it almost impossible to access funding and even when banks unwillingly consider the printers, the terms offered are highly exorbitant. Furthermore, the packaging industry has not been a centre point especially in the area of research and development as we are still trying to meet up with what is ... contd in page 35
NEW PRODUCTS
FARMFRESH LAUNCHES NEW PREMIUM PACKAGING By Ahmed Omah
F
armfresh Youghurt and Milk, a leading fresh dairy products has launched a new aseptic packaging for its brand on Thursday, 11th August, 2016 at the Civic Cente, Victoria Island Lagos. The new aseptic packaging according to the producer; Integrated Dairies Limited (IDL) complements the quality of the content and also gives the Brand a look that can make it compete internationally. Mr. Sheyin Shekarri, Managing Director, IDL in his welcome address said the new packaging was unveiled due to improper hygiene in terms of packaging and in reaction to customer's demand that the previous packaging does not
NNALI SHEKARRI Creative Director, IDL
SHEYIN SHEKARRI Managing Director, IDL
one is that it is more hygienic compared to the pet bottles which we were using before. From now on, you will not find them on the shelves. What you will find is this new aseptic packaging,” he said. Nnali Shekarri, Creative Director, IDL who spoke on the necessity of changing the packaging of the products said 'We felt we needed packaging that matches the product inside.' She stated that the new packaging which has multilayer laminate is recyclable and environmentally friendly. IDL is one of the leading fresh dairy company in Nigeria, producer of Farm Fresh Yoghurt and milk. IDL operates through the value chain from rearing cows to producing all the day, silage and concentrates to processing and delivering of fresh dairy products to the consumer. Farm fresh products are of world-class standards and distributed to major supermarkets, restaurants and hotels in all major cities of Nigeria. Currently, the company which has more than 500 Holstein Friesian cows with over 180 personnel has Pasteurised full cream and low fat milk, stirred and drinking yoghurt in various flavours under the name of Farmfresh.
OCTOBER - DECEMBER, 2016
20
complement the quality of the products. “For the past 14 years, customer's satisfaction has been our number one priority and that would never change. We have listened to what the customers wanted and we have made changes. We have not only made changes to the appearance of the products, we have also made changes to the recipe. Now we have both natural flavours and colours making our products 100 percent natural,” he opined. Speaking on the benefit of the new package, he said the products which is made of natural milk has been improved and the new package gives it an additional 3 days shelf life. “The added advantage to this
EXIBITION
NIGERIA PACKAGING JOURNAL PARTNERS TRADE FAIR SERVICES By Folashade Oba
W
ith expected growth in the trade fair services in Nigeria, Nigeria Packaging Journal (NPJ) and Trade Fair Services Limited have entered into strategic partnership to further service and support international trade exhibitions in Nigeria. At the media parley to announce the strategic partnership, Mr. Augutus Itua, Chairman/CEO Trade Fair Services Limited who took copies of Nigeria Packaging Magazine for distribution in Europe and with its other partners disclosed that NPJ is truly a world class publication, the first of its kind.
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Itua informed that discussion will hold with Messe Dusseldorf for advertorial and further business relationships adding that Trade Fair Services Limited is very open and ready for the collaboration. Also speaking, Alhaji Ahmed Omah, Editorial Director, NPJ who was elated about the partnership noted that Nigeria will be represented at the World Packaging Organization board meeting at INTERPACK 2017 as efforts are been put in place to bring members of the Institute of Packaging Nigeria (IOPN) and packaging companies in Nigeria to attend Interpack in
OCTOBER - DECEMBER, 2016
Dusseldorf by 4th -10th May 2017. “We are very excited by the partnership with them looking forward to have lots of projects to be executed together in future,� he said. Trade Fair Services Limited; are official representative for Messe Dusseldorf GmbH, organizers of DRUPA, INTERPACK and K2016 Exhibitions; Representing the West African region of six countries for 30 years with proven expertise in managing visitor and exhibitor services at its international trade fairs. Trade Fair Services have partnered the demands of rapid growth in the African consumer market with an international tool kit of business solutions. The Nigeria Packaging Journal is a premier publication from the Institute of Packaging Nigeria, a full m e m b e r, Wo r l d Pa c k a g i n g Organisation and founding member of African Packaging Organisation. Nigeria Packaging journal both print and online version (www.nigeriapackaging.com) has readership crosswide over urban communities in Nigeria and nations over the world. The Journal is fast becoming popular among the packaging experts, investing and consuming public, with over 10,000 subscribers who also visit our w e b s i t e , www.nigeriapackaging.com and our social media handle for invaluable information on packaging and related investment intelligence products and materials.
PACKAGING MACHINERY
BOBST STRENGTHENS DELIVERY TO CUSTOMERS IN WEST AFRICA Ÿ Expands presence to West and Central Africa Ÿ Opens office in Lagos, Nigeria
By Ahmed Omah In order to sustain its delivery to existing customers and new ones, BOBST, one of the world's leading suppliers of equipment and services to packaging and labelling manufacturing industries has opened an operational office in Lagos Nigeria. The formal launch of the new office was announced at a cocktail party on Tuesday 20th September, 2016 at Eko Hotel and Suites, Victoria Island Lagos. Around fifty VIP guests, including the owners, CEO's and Managing Directors of many packaging, label and FMCG companies, along with the Consul General of Switzerland, Netherlands Embassy in Lagos, Nigeria government officials and the media, attended the event. Mr. Samir Khoudja, Managing Director, Africa and Middle East, Bobst stated that the office is opened in the most populous city and country in Africa to be closer to the customers and enhance the support provided in West and Central Africa. “West Africa, and Nigeria in particular, is a very dynamic market. By opening an office in Lagos, the city in the most populous country in Africa, we will be closer to our customers and able to provide them with a higher standard of digital service.” He disclosed that the output quality of the company's machines has been enhanced adding that technical staff will be hired locally here in Nigeria. “We try to improve the quality of the productivity of our machines to provide local service faster than before. Even
though we have good staff both from Switzerland, Dubai, Tunisia etc., but our goal is to hire local people to work for us, this is the main strategies for us. Establishing this presence in Lagos is a significant step for Bobst and we expect that it will lead to
the needs of our existing customers and take the opportunity to serve the future customers,” he stressed. BOBST currently have sales and service center in Tunis, Tunisia, with overall responsibility for BOBST activities in Africa
West Africa, and Nigeria in particular, is a very dynamic market. By opening an office in Lagos, the city in the most populous country in Africa, we will be closer to our customers and able to provide them with a higher standard of digital service. further expansion in the region,” he stated. Also speaking, Mr. Emilo Corti, Head of Sales, Bobst, said the test marketing would be carried out in the Nigerian market following the commencement of Bobst operations in the country, adding that their aim was to support businesses of their existing customers and create new ones with Bobst top of the range products and services. “We have been doing business in West Africa and Nigeria, what is important is to sustain our growth, we have to improve our service to customers. We are talking to brand owners like Heinekens, Procter &Gamble and big retailers like Shoprite among others and they have all displayed their supports for us. Bobst want to support OCTOBER - DECEMBER, 2016
and the Middle East. The new BOBST office in Lagos will cover Nigeria and the wider West Africa region, providing pre-sales assistance and technical support for BOBST sheet-fed and web-fed customers. The company which supplies equipment and services to packaging and label manufacturers in the folding carton, corrugated board and flexible materials industries was founded in 1890 by Joseph Bobst in Lausanne, Switzerland. BOBST has a presence in more than 50 countries, runs 12 production facilities in 8 countries and employs close to 5 000 people around the world. The firm recorded a consolidated turnover of CHF 1.33 billion for the year ended 31st December, 2015.
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PACKAGING MACHINERY
Photospeak of BOBST official inauguration
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OCTOBER - DECEMBER, 2016
PACKAGING DESIGN/GRAPHIC - INTERVIEW
PACKAGING DESIGN - A Brand's Secret Weapon
UZOMA OKOYE, Creative Managing Director of Etu Odi Communications speaks on one of the SECRET WEAPONS IN BRANDING
Can you please let us into a brief overview of the Nigerian Pa c k a g i n g D e s i g n / G r a p h i c Industry? One of the biggest buzzwords in the business world today is branding. Be it a product to consumers, investment opportunities to stakeholders or pitching ideas to investors, branding paves the way for success by establishing awareness of your unique and meaningful promise. The face of your brand is revealed in your packaging. It is that part of your brand that rises into public view and projects your brand name, symbol and message in a way that people can quickly and easily see, understand and b el i eve. Th e m o r e s o m eo n e understands your product or message, the greater the chance you have of selling him or her on it. Packaging incorporates both the 25
design and the structural aspect. For instance, to package water, you have the label, which is the graphic, and the structure which is the bottle. Nigeria's packaging industry has accounted for 12 per cent of the $4billion recorded by Middle East and African markets in the last five years, according to a survey carried out by PCI Film Consulting. It has seen significant growth, recording about 40 per cent expansion. This is due to the urbanization rate, as more people move from rural areas to cities. Research also showed that the consumption rate of packaged products is much higher in urban areas. Globally, Packaging Design is a specialist discipline, but in Nigeria, it is still fledgling. What are the concepts of Package Design/Graphics? OCTOBER - DECEMBER, 2016
The wrapper, the can, the jar, the bottle, that we see every day, but people hardly stop to consider how it actually affects the decisions we make when we purchase. Packaging makes a product sell. Consumers want an experience. They want to pick a product and smile: they want to feel a certain kind of emotion when they see the brands they love. And different concepts of packaging can be used to achieve this. Paper and carton packaging are the most common packaging solutions for most brands but it all depends on the product. It could be light-weight or otherwise. It could be polyethylene, textile or different types of plastic boxes and containers. Whatever concept a brand adopts, user experience is a priority. I believe that Packaging Design/Graphics is a secret weapon in branding. When you go into a competitive or crowded shop space, a good packaging design will help you differentiate and stand out within the crowd. What are the new technology evolving in the Packaging Design/Graphic Industry? Technology has advanced the way consumers interact with brands. The packaging industry has evolved and redefined the consumer's action at the point of purchase. Different technologies are now used to create, display, and even print graphics; we are seeing very high quality graphics, with digital printing making it easier for brands to personalize products, like the Coca-Cola “Share a Coke� campaign that had people's names on the bottle. For instance, brands can now
PACKAGING DESIGN/GRAPHIC - INTERVIEW incorporate promos into packaging via QR codes, short codes, online platforms, smart labels and much more. Innovation is the key, and these new technologies can be used to solve real world issues in Nigeria, such as proper storage, counterfeiting, recycling and so on. What would you say is the power of Package Design/Graphics? Packaging is an influencer in marketing. It can appeal so much to a customer that it can help them make the decision to buy even if they didn't set out to. I read the story of a New York artist and entrepreneur, Justin Gignac, who to demonstrate the value of packaging, set out to find something that no one in their right mind would ever buy, garbage. Nine years later, over 1,300 NYC Garbage cubes have been sold and now reside in 29 countries around the world because
good Package Design/Graphics? Good design must always be intelligent and well thought through to attract and entice potential customers to buy amongst many options. To achieve this, here are my top three things that I would look for. Be true to your brand: Your design must always come from strategy and an understanding of what values the brand is looking to communicate. This will make sure that you deliver an authentic brand experience and are aligned with other parts of the
“
Nigeria's packaging industry has accounted for 12 per cent of the $4billion recorded by Middle East and African markets in the last five years, according to a survey carried out by PCI Film Consulting. It has seen significant growth, recording about 40 per cent expansion.
he challenged the power of packaging design. What impact does Package Design/Graphic have on marketing consumer goods? It is definitely your last line of defence. Most brands have spent a lot of money on communicating their brand, whether it is advertising or digital, sometimes they fall at the last hurdle by not being able to showcase their brand effectively in their packaging. This is a huge mistake. Packaging design promotes product branding. It helps to sell a product and differentiate it from similar products. Human beings are emotional buyers. A shape, colour, word or picture on a packaging can influence a buying decision beyond a brand's expectation. Please tell us the attributes of a
UZOMA OKOYE Creative Managing Director Etu Odi Communications
marketing efforts, making your work more effective. Less is more: Simplicity is so important in communication. It helps a potential buyer's decision–making process and ensures that the key information is legible and accessible. Making packaging visually intuitive means cutting away the complexity so that the message can be easily registered. Visually compelling: This ensures the brand has presence and stands out from competition. The visual elements such as the brand identity, colours, copy, and typography must be well utilized, so that the item is OCTOBER - DECEMBER, 2016
easily identified. And not forgetting the use of urgency, by calling out promotions and highlighted claims to grab attention. What are the challenges facing the Nigerian Packaging Design/Graphics Industry? This industry plays a critical role in the success of a brand's product or service, so there is growing need for better quality with regards to materials, innovation and attention to detail. Artists and designers are in a competitive space and should utilize technological advancements to reflect storytelling through design. There is a growing need for sustainability. From government regulations, to high material costs, to a lack of specialization, to little or inadequate funding in the areas of research and product development on a wider scale, the challenges are vast. There should be a passion for pushing this industry and making Nigeria a global leader in Packaging Design. How can the Nigerian Packaging Design/Graphic industry be globally competitive with other developed countries? A successful design project is not only a graphic exercise, but requires a good understanding of the brand's objectives, through understanding of design principles, knowledge of materials and production processes. The market is evolving but it will take investing in knowledge and a determination to apply best practice to our unique challenges in order to achieve the best quality possible. Uzoma Okoye has headed the creative function at some top international design agencies, based in England, before becoming the Managing Creative Director of Etu Odi Design, a leading brand and design agency based in Lagos. He can be reached on uzo@etuodi.com or on Twitter on @uzomao.
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MARKET RESEARCH INSIGHT
MR. MARC LUCASSEN Delegate, Germany Industry and Commerce
FRENCH AND GERMAN PAVILIONS FOR
NIGERIA AGROFOOD AND PLASTPACK NIGERIA 2017 Ÿ Messe Dusseldorf and Fairtrade Cooperate for Plast & Printpack Alger 2018
A
fter the huge success of Agrofood Nigeria & Plastprintpack 2016, earnest preparations are on for the 3rd I n t e r n a t i o n a l Tr a d e S h o w o n Agriculture, Food, Beverage & Packaging Technology and Food, Beverages & Hospitality on 28 - 30 March 2017 at the Landmark Centre in Lagos. Figures prove that the event becomes even more important for the Nigerian agrofood industry as the number of trade visitors increased by 26% to 1,704. They discussed their business with 86 exhibitors from 21 countries. Mr. Martin März, Founder, Managing Partner, Fairtrade in an interview during a get-together at AHK Nigeria on 19th September 2016 said a lot of innovations is being added to what has been good already in the past two editions. Marz who disclosed that for the first time the exhibition will be in two halls said official French pavilion in the food technology and agricultural field with a live bakery will be back again and also for the first time an official German pavilion will also be present at the fair in 2017. Aude Roelly, Area Sales Manager for Sub-Saharan Africa, adepta said from farm to fork, companies specialised into equipment and know -how for agriculture, livestock, food industry and packaging will come to offer technical solutions and latest technology to the 27
Nigerian food industry. Martina Claus, Head of Market Development Africa - German Engineering Federation (VDMA) - Food Processing & Packaging Machinery Association stated that for the first time an official German Pavilion will introduce the best know-how, services and latest technology for the production and packaging of food and beverages. Mr. Marc Lucassen, Delegate, Germany Industry and Commerce while speaking on his expectations for
MR. MARTIN MÄRZ, Founder, Managing Partner, Fairtrade
OCTOBER - DECEMBER, 2016
Agrofood 2017, said: “hopefully we can set the signal against the downturn, the negative economic trend. We are here optimist, we have seen Nigeria going up and down, so we believe that after rain comes the sun and we know we are currently on a downward trend, but we believe one day there will be an upward trend. This is the time, to use the chances to position yourselves in the niches this is why am happy we have such a fair here because this is the time to network, to build up business relationships in order to be ready when the economic starts again”. Meanwhile, Messe Düsseldorf and Fairtrade has collaborated for Plast & Printpack Alger. Algeria is investing $ 260 billion in the modernization of infrastructure and the further industrialization alone by 2019. (Heidelberg/Düsseldorf) Messe Düsseldorf enters as an equal partner into cooperation for Plast & Printpack Alger, which is organized by the German trade show specialists Fairtrade in Algiers bi-annually since 2008. A corresponding agreement was reached by the end of September between Werner M. Dornscheidt, CEO of Messe Düsseldorf, and März. The aim is to further develop the trade show and perceive growth opportunities together. The next plast & printpack alger takes place in March 2018 in Algiers and is then jointly organized by fairtrade and Messe Düsseldorf.
RESEARCH & DEVELOPMENT
FIIRO at 60 Ÿ Calls for equipment and facility upgrade Ÿ Vows to Implement change agenda and enhance
job creation in Nigeria
T
he Federal Institute of Industrial Research, Oshodi (FIIRO) has called on the Federal government to support the research institute in financing its activities in the country. Gloria Elemo, Director General/Chief Executive Officer, FIIRO who made this call recently in Lagos during an exclusive interview with NPJ noted that the infrastructural facilities available to FIIRO are too obsolete to churn out meaningful Research & Development (R&D) results that would be globally competitive, due to inadequate funding. “Yes we are 60 years this year. We need to be funded now because we do research and development. We have responsibility to the public to transfer this technology we need quite a large number of funds for us to be competitive with our counterparts in the world. Research, especially in science and technology is not cheap so we need funds. Now that we are 60 years, we found out that most of our
equipment, facilities, and resources need to be upgraded, because they have either gone obsolete or damaged. So the major challenge which we have is money. If we have money, the rest will
Now that we are 60 years, we found out that most of our equipments, facilities, and resources needs to be upgraded fall in place,” she reiterated. According to her, FIIRO in its 60 years of existence, is expected to continue to improve in its agroprocessing methods and tools to make farming less stressful. She said that it is strongly recommended that R&D activities, even from farm to fork, should be
adequately financed in order to make our agro-commodities more competitive on the global market. Elemo while speaking on FIIRO's success over the past 60 years said FIIRO who is the only research institute with food have assisted in sprouting the economy extensively in the area of food adding that virtually all food seen in the market has a touch of FIIRO in it. “In terms of manpower, we have adequate manpower, we have over 40 PhD research officers working in core research areas of engineering, molecular biology, biochemistry, food science and technology all the areas of science well-grounded to do adequate research. Our mandate is strictly on processing of all the agricultural materials into food as well as non-food areas to create jobs, we are to transfer technology for job creation, but then the facilities need to be in place,” she opined. She however disclosed that with the present situation in the country and the emphasis of government in diversifying the economy through agriculture, FIIRO stand very strategic and key to making sure that the pillar of change agenda is implemented. Over the years, FIIRO, a parastatal of the Federal Ministry of Science and Technology has been at the fore in the promotion of research and development in Nigeria. The Institute has very good relationship with international organizations whose activities are relevant to its mandate and objectives. The European Union (EU) is a partner in progress. FIIRO is affiliated to the United Nations University (UNU). Some of its staff are fellows of the University. The Institute is a member of the World Association of Industrial and Technological Research Organizations (WAITRO), Association of African Universities (AAU), and Africa Regional Centre for Technology (ARCT). In pursuance of its engineering design and fabrication programme, FIIRO has worked closely with the African Regional Centre for Engineering Design and Manufacture (ARCEDEM), especially in the area of staff training, skills development, machinery and equipment supply. 28
RESEARCH & DEVELOPMENT
WHY PACKAGING SHOULD BE A CENTRE POINT FOR RESEARCH AND DEVELOPMENT IN NIGERIA
The Federal Institute of Industrial Research, Oshodi, (FIIRO), the research institute recently turns 60. Dr. Gloria Elemo, Director General FIIRO, speaks on the journey so far, the need for Packaging to be a centre point for Research and Development (R&D) in Nigeria and other salient issues. Can you educate the public on the core mandate of FIIRO? FIIRO is a research institute that is under the parastatal of the Federal Ministry of Science and Technology. It was established way back in 1956 as a result of a recommendation that came from a mission that was send to Nigeria in 1953 by the bank of reconstruction that has transform into the present day World Bank to find out why Nigeria was not an industrialised nation. The report of that mission was that research result where diffused and uncoordinated in Nigeria and so there is need to establish an organisation like FIIRO which informed our existence. We have clear cut mandates that we are to expedite industrial development in Nigeria through R&D of local resources. Since then we have been working in that area especially the agro and the mineral based but the oil and gas was established, the oil and gas sector of the economy was not fully exploited. FIIRO has worked in all aspect of the Agriculture in terms of processing. Our mandate is strictly on processing all the agricultural materials into food as well as non-food areas to create jobs, we are to transfer technology for job creation; handle issues of pulp and paper; packaging and also to develop prototype equipment of all the process line that has been developed and this we have been doing for the past 60 years. We have assisted in sprouting the economy in various aspects we have sprout the economy extensively in the area of food and we are the only research institute with food as a major mandate and virtually all food you see in the market has a touch of FIIRO in it. When we look at the SMEs in the South West for instance over 15 percent from survey are using technology that are
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“
Over the years, with oil there has been less adoption of local technologies in this areas but now with this present situation in the country and the emphasis of government in diversifying the economy through agriculture, we stand very strategic and key to making sure that the pillar of change agenda is implemented. developed from FIIRO the technology incubator centres all over the 36 states have a touch of FIIRO in virtually all of its technology. We are concentrating now in commercialisation of most of our R&D results to make sure it is useful. Over the years, with oil there has been less adoption of local technologies in this areas but now with this present situation in the country and the emphasis of government in diversifying the economy through agriculture, we stand very strategic and key to making sure that the pillar of OCTOBER - DECEMBER, 2016
change agenda is implemented. We have an account on the fingers of over 500,000 entrepreneurs that have pass through FIIRO. Classical example of our achievements is replacement of the barley with sorghum for instance has driven the sorghum transformation agenda and incidentally is our dear President Muhammadu Buhari who was the head of state as of the time that the policy and the ban on barley malt was done that was in the late 80s and it saved this country a huge amount of foreign exchange. President Olusegun
RESEARCH & DEVELOPMENT R&D is still very low in the country now, but am sure with this new dispensation and the way R&D is been looked at now that science and technology has come to a centre point there will be more money and then more awareness of the technologies.
“
Why we had a reduction in adoption rate was due to the oil boom, people tend more to buy imported goods than local goods and we are more of a consuming nation but now that we have to be a productive nation the adoption rate is going to be very high Obasanjo when he was president visited FIIRO he saw the cassava initiative programme he saw the cassava bread that is incorporation of a percentage of cassava into wheat, immediately he started the cassava initiative and the need to include a percentage of our cassava into bread not only to safe foreign exchange but to drive the transformation agenda in the cassava value chain and this on survey shows that nothing less than about 3 million jobs can be created along that value chain. Report shows that the adoption of R&D is very low. What is FIIRO doing about this? We do a lot of technology transfer, now we discovered a lot of problem with adoption. We have also changed tactics very quickly by incorporating entrepreneurship programme into our technology transfer we call it the techno-entrepreneurship programme. This programme imparts on how to set up your business, handle finances and how to generally incorporate it into technology. We have given out what actually make it a little bit more robust
and we are currently on survey to measure the adoption rate. Also with the interest of government pushing and supporting local input and entrepreneurship, both at the university level, women, preretirement training with the new drive and the new change, adoption rate is fast coming up. Why we had a reduction in adoption rate was due to the oil boom, people tend more to buy imported goods than local goods and we are more of a consuming nation but now that we have to be a productive nation the adoption rate is going to be very high. Furthermore, in the aspect of packaging, packaging is one of the major challenge of Postharvest loss on fresh fruits and vegetables because it is a very serious area we have not looked at in the area of research in Nigeria. Packaging has not been a centre point for R&D, it should be given a critical look. In the area of awareness, what is FIIRO doing to create more awareness to the Public? The level of funding that comes into the
Congratulations as FIIRO clocks 60. Can let us into the challenges so far and the way forward? Yes we are 60 years this year. Funds! We need to be funded now because we do R&D. We have responsibility to the public to transfer this technology we need quite a large number of funds for us to be competitive with our counterparts in the world. Research, especially in science and technology is not cheap so we need funds. Now that we are 60 years, we find out that most of our equipment, facilities, and resources needs to be upgraded, because they have either gone obsolete or damaged so everything centres on funds. In terms of manpower, we have adequate manpower, we have over 40 PhD research offices working in core research areas of engineering, molecular biology, biochemistry, food science and technology all the areas of science well-grounded to do adequate research, but then the facilities need to be in place. So the major challenge we have is money. If we have money, the rest will fall in place. What would you say is the importance of packaging to export business? Packaging is very important, it retains the integrity of your products in the form it is to handle and store, so it is not just putting things together but you must look at the type of packaging you have, is it adequate, will all the micronutrients still be retained after 6,7,8 months? Are you going to have the same material, so when you have solved that problem, the next thing is how attractive is it, how can it hit the market, how will people accept it so a lot goes into R&D of packaging, thus it is very important.
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AFRICA THE RISING CONTINENT
Hon. Otunba Olatunde Braimoh, Chairman, Lagos House of Assembly, Info and Strategy officially opening Canon's Business to Business centre, Ikeja
Opens B2B Solution Centre in Lagos
Partners Tenaui Limited
Ÿ
L
agos Nigeria, 22nd August, 2016 Honourable Otunba Olatunde Braimoh, Chairman, Lagos State House of Assembly, Information and Strategy officially opens Canon's Business to Business (B2B) solution showroom and training centre on Allen Avenue, Ikeja, Lagos Nigeria. Canon Central North Africa (CCNA), one of the leaders in imaging solutions, has partners with Tenaui Africa Limited, to open the showroom. The opening according to Canon represents a move by CCNA to focus on the growing market in Nigeria and hope to consolidate its market share in the West African printing industry. Mr. Ayman Aly, Marketing Manager, Professional Solutions, Canon said the company's focus is on helping its partners by providing them insight into what is important to their customers through its unmatched
Centre: Olu of Ikeja, Oba Matemi II with Hon. Otunba Olatunde Braimoh
31
OCTOBER - DECEMBER, 2016
portfolio of solutions. He said the showroom is designed to meet the growing needs of B2B and industrial sectors in Nigeria. “With this opening of a dedicated business solutions showroom and training centre in Nigeria, our goal is to further reinforce our confidence in the future of evolving print industry landscape,” he said The opening ceremony had in attendance about 100 guests from government and private sector respectively. CCNA is a division within Canon Middle East FZ LLC (CME), a subsidiary of Canon Europe. The formation of CCNA in 2015 is a strategic step that aims to enhance Canon's business within the Africa region by strengthening Canon's in-country presence and focus. Some of the state of the art products exhibited in the showroom for professional print products were imagePRESS C600, i m a g e R U N N E R A DVA N C E 8 5 8 5 ; prismaPREP, imagePROGRAF 770, a digital imaging management solutions; imageRUNNER 2530i.
AFRICA THE RISING CONTINENT
INVESTORS NEED FAVOURABLE BUSINESS ENVIRONMENT - Deelen Mr. Michael Deelen, Head of Lagos Office, Netherlands Embassy speaks on the trade cooperation between Nigeria and the Netherlands, also on situation of the Nigeria economy. Can you let us into those primary sectors of trade and economic cooperation between Nigeria and the Netherlands? We are focusing on Agriculture, which ranges from cocoa, sesames seeds and products that are made in Nigeria that doesn't necessarily have to be exported but that can grow here and be sold here but for which we make input by providing seeds for them. We know that the Dutch community is well established in Nigeria and one key area of their participation is the manufacturing and packaging industry. Can you please throw more light as to what your country is doing to ensure that the sectors are very much maximally productive in Nigeria? We focus a lot on the private sector. The private sector engage themselves to see the best way to produce in Nigeria. We know that production in Nigeria has different challenges and input. In the area of packaging, managing the product may have to go through long distances, may be not always on the best mode of transport, storage sometimes cooling but the way in which you package this things is very important. There are indeed Dutch companies here like Heineken, FrieslandCampina, Unilever, Chivita and of course we are engaging more into assisting Nigeria with fresh milk production whose packaging is very crucial. Packaging as I said is for two reasons, to keep the products well fit, in good conditions and for marketing reasons. The packaging has to be attractive for people to buy. But we would wish that the economic circumstances will be a little bit more favourable. What is the volume of trade engagements between both countries at the moment? I can give you the exact figures, but all together it's around 7billion euros in
Mr. Michael Deelen, Head of Lagos Office, Netherlands Embassy
volume because of the drop in the price of oil, the volume is considered there, but the monetary volume is less. We also see that from our part, the export from Nigeria have increased last year by 9.3 percent which is good and the export in Nigeria are continuing so the volume is okay, we can always do more and we should do more. This is a difficult year, 2016 is a difficult year, we hope that the reform programmes of the Nigeria government will kick and start producing results early next year. Government has some ideas on how to improve the situation, it should be implemented. Technology transfer remains a critical issue in the Nigerian economy. What exactly is your country doing to assist Nigeria to develop their requisite capacity in ensuring that there is adequate
OCTOBER - DECEMBER, 2016
technology transfer to build local capacities? Yes technology transfer and training education is very crucial, the government have what we call the Dutch Vouche programme it's a programme that we run from our office in Abuja, and allows Nigerians and many other nationalities to do training and study in the Netherlands. You did say that you wish that the Nigeria government would help to ensure a better economic climate. That translate to obvious challenges that some of the Dutch community are probably experiencing here. Now comparing both countries, how do you intend to help Nigerians to ensure that some of these challenges are may be mitigated? We always assist Nigerians and the 32
AFRICA THE RISING CONTINENT Nigerian government. For example on the field of agriculture we work quite closely together. Certain things are obviously beyond our control. It's not just Dutch companies, but basically companies operating inside Nigeria that are faced with problems of currency which is something that could be looked at. There is serious issue of electricity, partly because of sabotage of pipelines but even at that, one has to take a good look at the legal framework of the power sector. There are things that are within that Nigeria government has to tackle even though none of them is easily solved. We stand as partner for Nigeria as we always have been to support with know-how technology as much as we can. Like I said at this moment we focus more on the agricultural sector. It is obvious that electricity is one of those key challenges and of course in the oil industry. The Netherlands has played a critical role in the growth of that sector with the presence of share. Now what main companies within the Netherlands eco system or community are
helping to develop the power sector of Nigeria's economy? It think for now we are focusing on gas. I think natural gas in Nigeria would be really bright for the future of power generation for factories, fertilisers etc. The natural gas in Nigeria is a lot less compare to oil but the initiative for that also need to take place in a conducive business environment. Different Dutch businesses are operating in the field of gas, we have our own natural gas from the Netherlands. Over the years we have developed technology for compressing, transport and all these things are technology we have and are looking at how we can implement that in Nigeria. You mentioned the word how to help, it is more of how to do business because in the end the best form of relation is the relation whereby the parties are basically equal to the extent of buyer-seller who do business and understand their businesses. I think that works a lot better than coming in and say no, you should do this, or you should do that. Nigeria is a huge market and of course the Dutch economy is one of
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2016 is a difficult year, we hope that the reform programmes of the Nigeria government will kick and start producing results early next year. Government has some ideas on how to improve the situation, it should be implemented.
Ahmed Omah Editorial Director, NPJ and Mr. Deelen, Dutch Embassy 33
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the very central one in mainstream Europe. What are you intending to do, that you are not doing at the moment to ensure that Nigerian commodities find a brand new market in your country? This is a very important question that concerns both countries. Several things, the port of Rotterdam is the biggest seaport in Europe and as such the main entry port for products from Nigeria to the European market. The Netherlands played an important role in Europe, we do a lot in logistics and transport but then the European market is a very demanding one because they buy the best quality products from all over the world. So, it means Nigeria products compete with products from other places. So how can we assist Nigeria in proving the quality of its products? That is something we are working on with the Nigeria Export Promotion Commission. One of the issues was for example, the European Union impose a ban on the import of Nigeria dry beans to Europe because they found poison inside which was a wrong way of packaging. What happened was that the beans were put in a container, somebody at the last moment spray the container with some poisonous chemical, I think it arrived at the UK and something was wrong with it. So, we are now assisting different Nigerian agencies and see how we can prevent this kind of things from happening, how you can measure and task the products that leave your country to make sure that it meet with the requirements of the country where they are been shipped to. Is there an existing NigeriaNetherlands trade mission or commission that would help to drive this sector? There is a Nigerian-Netherlands Chamber of Commerce here in Lagos and we are working closely together with them to see how we can expand basically their activities, to be more engaged and also pick up this things. We try to organise every year a trade missions from the Netherlands to Nigeria where individual companies come to see us. By next year February
AFRICA THE RISING CONTINENT probably we expect a trade missions from the Netherlands to come and see Nigeria with the keen interest on trade and investments. And then, do you also take members of the organized private sector from Nigeria to the Netherlands? We do if there is demand for that, we did that last year with the delegation from the Nigerian Agricultural sector to see the technologies we have and the things that we can provide. One big challenge of Nigeria and Africa at large is that of the migration of able bodied young persons across the Mediterranean who came for greener pastures. We know that government in Europe, Britain, Italy have done so much in trying to provide may be humanitarian assistance in some cases. What is your own country doing to possibly assist in this very critical challenge that Africa and Nigeria is facing? This is a very crucial issue which you cannot blame anybody for migrating because they just want to go from where is not so good to where it's better. So from the European side, as members of the European Union (EU), we are engaged in all kinds of cooperation to rescue and save people on sea and of course to see how this flaws can be managed. Another thing that we try to do, is look at the countries where the people come from for example Nigeria and see what the issue is. If the issue is unemployment, we have started two different programmes on job creation in Nigeria. It's a drop in the ocean considering the population, so we are working with two different consultier to give training to young people either to improve their access to the labour market or to improve their employment abilities. For them it's easy to work for companies because they are better trained or to assist them in setting up their own companies. Those are projects we run here in Lagos, Abuja and Jos which is our contribution. In general, what improves the situation of course is if the welfare in Nigeria will rise to higher level, it will benefits us a
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In general, what improves the situation of course is if the welfare in Nigeria will rise to higher level, it will benefits us a lot because we have a common goal that we are trying to achieve. lot because we have a common goal that we are trying to achieve. Is there a particular scheme your government has in place to assist this disconnected African migrants to settle and contribute meaningfully to the society? Basically we have to be honest there are two systems because the Netherlands like many other countries in Europe has sign up to the refugee convention. If somebody is a political refugee, that person will be accepted in the Netherlands system and then there is another form of migration whereby if there is need in the Netherlands by companies for staff they cannot find, there is a system as you have in Nigeria that the company would hire somebody from abroad. It is not like Nigerians are not allowed to enter Europe, but if you look at the big flows of people who look for greener pastures there, it is very difficult to find a system to manage that. It is very interesting to know that Britain pull out of the EU recently which some European forces says it would definitely has some effect in their respective economy. What OCTOBER - DECEMBER, 2016
was the significant of this to the Netherlands? Well personally I think it is a very sad thing that can happen, but members of the EU are sovereign states, if they decides to pull out, that's their right to pull out. So is the Netherlands looking at pulling out? No, we are not because we created the EU. The EU is not something that happens or forced on us, after the Second World War, we saw European continent in shambles. We pull ourselves together when realised we can only do that together, then we have the EU of six member state of which the Netherlands was also a founding partner so from then on, we grow bigger and bigger. There are so much benefits in doing things together but if you think you can do it better on your own, then feel free to do it better on your own. But let's see, we don't know what the implications will be because it has not happen yet because they haven't officially pulled out but I will say that in the 21st century you would better operate as a strong root than on your own. 34
INDUSTRY NEWS ... contd from page 19
attainable globally. Most of our packaging materials are not locally sourced for, we are importing things which we have its raw materials here. For instance, Nigeria is an oilproducing country; we should not be importing one single kilogram of oil; but for that to happen, they need to develop our refineries. Once they do that, it means there will be enough resins of all grades. Over the past years, billions of naira has been spent on printing election materials outside the country not only at the expense of the local industry, but also putting enormous pressure on the naira. The excuse for this is lack of capacity and security. However security of election materials doesn't rest solely on printing but on other logistic like transportation. During the last election, INEC enlisted a few local printers to print the election materials however the bulk of the job, was still printed outside the country. The money spent abroad, particularly on logistic, can be used to help build local capacity in the six geo political zones of the country by encouraging/stimulating the setting up of truly security companies in these zones. This will save job losses and guide against company liquidation, INEC logistic problem, and security of the materials during election. The printing of cheque books and other sensitive bank documents must be completely localized. The same security companies that will handle election materials can also print cheque books and thereby ensures continuous jobs for the printers. Remarkably there are a lot of potential embedded in the Nigeria packaging industry. It is interesting to know that the people of Nigeria have spent approximately 331 million Euros between the time 35
MR. MARTIN MĂ„RZ, Founder, Managing Partner, Fairtrade
period of 2010-2013 on importing of food processing and packaging machines. For sure, it gives a clear picture how much potential the food and packaging market has. A country like Nigeria which apparently is considered to be a 4th world
Farayola, Commercial Manager, First Aluminium Nigeria Plc, in his interaction with the News Agency of Nigeria (NAN) on the cosmetics packaging industry in Nigeria had indicated that premium cosmetics packaging revenue might appreciate to N48.6 billion by 2017. All of these attest to the potential and employment opportunities that lies in the printing and packaging industries in Nigeria yet a lot of workers are currently been laid off. Worldwide, it is government's responsibility to create an enabling environment for business to thrive. Printing and Packaging industry in Nigeria has never fully realised its potentials and thereby failed in contributing its quota to the growth of the economy. Government and stakeholders must address the capacity challenges in the industry so that jobs
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The non-availability of a National Policy on Printing and Packaging has made the industry a no- go-area for most financial institutions, making it almost impossible to access funding and even when banks unwillingly consider the printers, the terms offered are highly exorbitant. country has such a huge demand. Mr. Martin Marz, Managing Director, Fairtrade revealed impressive figures at the Agro-Food and PlasticPrintPack Nigeria 2016. He further added that the amount off 331 million is a 67% increase in 2013 to the 2010 amount which remained around 198 million Euros. He explained that during 2010-2013 packaging machinery and equipment import has moved up to 183 million Euros from 86 million previously. A 116 percent increase. It would be recalled that Mr. Kola OCTOBER - DECEMBER, 2016
can be generated. Government has a big role to play in ensuring that capacity is created in the industry by charting a way forward through favourable policies. Leadership from government to set in motion policies that will give direction and guide the practice of printing and packaging to stop the recurrent loss of jobs, develop and promote local content, and address existing conflicting policy of government that is negatively affecting the industry.
WORLD PACKAGING INSIGHT
GPC STAR AWARD HOLDS IN 2017 Ÿ GPC Appoints APO as Chief Designer Ÿ GPC to construct Cloud Station for Nigeria
By Ahmed Omah
G
lobal Packaging Center (GPC Star), the Wahaha International Packaging Design Competition is to hold very soon in Wahaha China. The competition is purposely organised to find more excellent designs for Wahaha, a world renowned brand, create an international communicating and sharing platform for designers, facilitate sustainable development of green packaging as well as create value for excellent designers, motivate more students to devote to design and thus bring vigour and vitality to the design industry.
The competition, held biennially in collaboration with famous enterprises, is open to individuals, groups and companies from all nations and dedicates to recognising excellent entries and designers, endeavouring to highlight the role of design in promoting products' core value and thus sound development of global design industry. The competition which is organised by GPC will be sponsored by Design Committee of China Packaging Federation (CPF), China C r e a t i v e Pa c k a g i n g D e s i g n (CCPDC) and Wahaha Group Co. Ltd (Wahaha) and supported by
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World Packaging Organisation (WPO), Asia Packaging Federation (APF) and CPF. Categories of awards to be presented are: Premium creative design, gold, silver, outstanding, most popular, excellent, and participation award. In 2010, the WPO approved the foundation of GPC. In 2015, GPC is authorised by CPF to found CCPDC and China Packaging Network Coverage. GPC, a global integrative platform in packaging industry is oriented to serving global packaging industry and committed to building a 'great packaging' platform that covers every link of the packaging industry. GPC has appointed Africa Packaging Organisation (APO) as its Chief Designer to promote development of the design industry in related areas as academic exchange, works exhibition, education and teaching. They will also work together to explore global design market, advertise design activities both online and offline organised by CPC cloud platform. In a related development, GPC has also partner with Nigeria Packaging (Institute of Packaging) for construction of CPC cloud platform International substations in Nigeria. The corporation will aid organising activities for transnational market exploration, import and export trade, procurement, logistics, finance and promotion of packaging exhibition amongst others. Both parties will work together to tap the design market in Africa to further expand Africa market. 36
WORLD PACKAGING INSIGHT
2013 Participants At The First Packaging Technology Residential Training In Africa
WPO: FOCUS ON PACKAGING
EDUCATION AROUND THE WORLD
S
ince its founding, World Packaging Organization (WPO) has an educational arm with a broad mission to impart packaging expertise on the Global Packaging Industry. The first initiative was held in Lagos, Nigeria, in 2013. “The success of this first Packaging Technology Residential Training Program (RTP) in Africa encouraged WPO to continue providing education and support throughout developing countries,” explains Thomas Schneider, President of the organisation. In 2014, successful RTP training programs were held in Bali, Indonesia and in Tra Vinh, Vietnam. In the first half of 2015 the success was repeated in Jakarta, Indonesia, and later that year in Singapore and Vietnam where attendances were in excess of 75 students at each training session. RTP training in 2016 started early February with a week Packaging Technology workshop in West Java, Indonesia being offered, with strong attendances of more than fifty students, followed by training in Beijing in mid-April, again with good attendances from both industry and academia. In early August there was a week of Packaging Technology training in Teheran, Iran, followed in late August in Manila, The Philippines. 37
RTP training will then move to Africa in mid-September to Accra, Ghana where a week long program is to be held. The educational training program of the WPO will finish off with a two-day session in Milan, Italy where the focus will be Packaging Technology in English as a second Language tailored for the business world of Europe. The job is complex and has just begun, but the rewards along the way for all involved will be significant and long lasting”, completes Schneider. The workshops aim to equip participants with greater in-depth knowledge to tackle the challenges facing the packaging industry in the current environment and to prepare
Pierre Pienaar (1ST VP WPO), Lead presenter at RTP 2013
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them with competitive advantages emerging in the greater Economic Community market. The packaging training course helps to strengthen participants in packaging capabilities, providing a level of insight and understanding of the packaging industry and adds real and measurable value to careers and businesses. In addition to the RTP programs, WPO also has packaging technology education programs based on the type of request received from its member countries. The duration of the courses varies from country to country, depending on requirements of that requesting country; normally it varies from 2 to 5 days. On-going education is required at all levels of the global packaging spectrum, including formal and informal sectors. “WPO has the knowledge, the resources, the first world experience and the ability to share information and expertise. With its educational portfolio, the Organisation has an obligation to help further and foster packaging education and training in developing countries”, ends WPO President, Thomas Schneider.