Post by Trade Coach on Mar 14, 2021 12:35:10 GMT 1
$12 Billion Post-Harvest Losses: NIRSAL, Trade Ministry To Tackle Food Security Through SATS-C
As a player in the Agricultural Commodities Sector, there are issues that are critical in the survival of the industry; as such you need to keep abreast of happenings in that area. One of such areas is how to tackle the multi-billion dollar post-harvest losses being currently experienced in Nigeria.
This abnormality has virtually wiped out all gains made by the government and other international organizations in the agricultural sector. I can assure you that this is the major problem facing the nation today in this very important sector.
Take a trip to all the major markets in the area you are conversant with and you will see how half of the produce for that harvesting period are wasted, either due to lack of transportation or adequate storage space.
It is disheartening to see how huge efforts put in by various stakeholders in the industry are wasted due to lack of good roads, and adequate storage spaces.
In order to tackle this, The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and the Ministry of Industry, Trade and Investment are collaborating to address the long overdue problems of poor transportation, logistics and storage facilities.
These factors are largely responsible for the huge post-harvest losses of small scale and local farmers in Nigeria. The World Bank estimated that the annual losses are about $12 billion.
It is a good thing to learn that NIRSAL is currently leading an advocacy for the operationalization of a Secured Agricultural Commodity Transport and Storage Corridor (SATS-C).
The benefits that this programme will bring to the nation cannot be over-emphasized; it will not only eliminate post-harvest losses to a great extent but will also create jobs for the teeming unemployed youths in the country.
The best of all the benefits is that revenue from agriculture will boost the national economy by about $12 billion if we are to go by the estimate from the World Bank. Imagine what the GDP of Nigeria will be with the injection of such an amount.
During a SATS-C meeting in Abuja, the capital of the country, the Managing Director of NIRSAL, Mr. Aliyu Abdulhameed noted that the Ministry’s commitment to SATS-C promises so much hope; because when the policy becomes fully operational, it has the potentiality of reducing post-harvest losses by 50%.
It will also lead to an increase of about 5% to the agricultural sector’s contribution to the national GDP.
When this policy becomes fully operational, the skyrocketing food prices will be lowered as more food will be available from savings made by reducing post-harvest losses. Apart from this, NIRSAL believes that about 126,000 direct and indirect jobs will be created. There is an equally high level of possibility that our agricultural commodities will have higher quality standards thereby increasing our chances in the export market, and other industrial and consumer markets.
The Managing Director expressed the confidence that SATS-C would complement and perfect another business model/concept known as PH-P3 (Primary Production & Harvest, Primary Processing, Primary Transportation and Primary Storage)
This ensures efficient production in the farms and optimum capture of value at harvest by enabling prompt evacuation of produce from farm-gates, and subsequent haulage of commodities across the country through designated corridors.
The proper implementation of SATS-C will surely enable seamless movement of farm produce from production and processing zones to markets; this the managing Director believes would upgrade agro-logistic value chains, remove blockages. It will also enable increased flow of finance into and through agricultural value chains.
However, SATS-C is still a policy document being prepared by the Ministry of Industry, Trade and Investment (FMITI) who are at the stakeholder identification stage for Executive Consideration.
We of this forum believe without any iota of doubt that the implementation of this programme will put to rest almost all the problems the nation is going through as agriculture will now take its rightful place in revenue generation in the country.
As a player in the Agricultural Commodities Sector, there are issues that are critical in the survival of the industry; as such you need to keep abreast of happenings in that area. One of such areas is how to tackle the multi-billion dollar post-harvest losses being currently experienced in Nigeria.
This abnormality has virtually wiped out all gains made by the government and other international organizations in the agricultural sector. I can assure you that this is the major problem facing the nation today in this very important sector.
Take a trip to all the major markets in the area you are conversant with and you will see how half of the produce for that harvesting period are wasted, either due to lack of transportation or adequate storage space.
It is disheartening to see how huge efforts put in by various stakeholders in the industry are wasted due to lack of good roads, and adequate storage spaces.
In order to tackle this, The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and the Ministry of Industry, Trade and Investment are collaborating to address the long overdue problems of poor transportation, logistics and storage facilities.
These factors are largely responsible for the huge post-harvest losses of small scale and local farmers in Nigeria. The World Bank estimated that the annual losses are about $12 billion.
It is a good thing to learn that NIRSAL is currently leading an advocacy for the operationalization of a Secured Agricultural Commodity Transport and Storage Corridor (SATS-C).
The benefits that this programme will bring to the nation cannot be over-emphasized; it will not only eliminate post-harvest losses to a great extent but will also create jobs for the teeming unemployed youths in the country.
The best of all the benefits is that revenue from agriculture will boost the national economy by about $12 billion if we are to go by the estimate from the World Bank. Imagine what the GDP of Nigeria will be with the injection of such an amount.
During a SATS-C meeting in Abuja, the capital of the country, the Managing Director of NIRSAL, Mr. Aliyu Abdulhameed noted that the Ministry’s commitment to SATS-C promises so much hope; because when the policy becomes fully operational, it has the potentiality of reducing post-harvest losses by 50%.
It will also lead to an increase of about 5% to the agricultural sector’s contribution to the national GDP.
When this policy becomes fully operational, the skyrocketing food prices will be lowered as more food will be available from savings made by reducing post-harvest losses. Apart from this, NIRSAL believes that about 126,000 direct and indirect jobs will be created. There is an equally high level of possibility that our agricultural commodities will have higher quality standards thereby increasing our chances in the export market, and other industrial and consumer markets.
The Managing Director expressed the confidence that SATS-C would complement and perfect another business model/concept known as PH-P3 (Primary Production & Harvest, Primary Processing, Primary Transportation and Primary Storage)
This ensures efficient production in the farms and optimum capture of value at harvest by enabling prompt evacuation of produce from farm-gates, and subsequent haulage of commodities across the country through designated corridors.
The proper implementation of SATS-C will surely enable seamless movement of farm produce from production and processing zones to markets; this the managing Director believes would upgrade agro-logistic value chains, remove blockages. It will also enable increased flow of finance into and through agricultural value chains.
However, SATS-C is still a policy document being prepared by the Ministry of Industry, Trade and Investment (FMITI) who are at the stakeholder identification stage for Executive Consideration.
We of this forum believe without any iota of doubt that the implementation of this programme will put to rest almost all the problems the nation is going through as agriculture will now take its rightful place in revenue generation in the country.
