Locally produced rice, making quiet market entry

Many people in Lagos have consumed local rice without knowing it is the local rice’ – Emmanuel Ijewere, coordinator, Nigerian Agribusiness Group (NABG), also a rice farmer, stated this earlier this year, at a time when so many Nigerians were still asking –‘Where is the rice reportedly being produced in Nigeria?’

Also, last year, the former minister of agric stated that Nigerians have been eating locally produced rice without knowing.

According to Ijewere, most of the people in the hinterlands where the rice is being produced get to buy the rice and consume before it gets to the major cities. Since the quantities being produced are still not sufficient, they get bought before they enter the mainstream market. “Looking at the full map of Nigeria, one will see how large the country is. Most of the people in the hinterland eat the local rice, which is more nutritious,” stated Ijewere.

Ibrahim Iroko, president of rice farmers association at Itoga, Badagry, Lagos also stated that the rice produced by the members get paid for once they are harvested at the farm. Iroko added that as soon as they are processed they are mopped up by the buyers. This variety of rice is called Nerica, usually Nerica 8 variety which looks and tastes exactly like the popular ‘aroso’ rice currently being imported into the country, just that it is more nutritious and tastes nicer because it has not stayed for so long in storage.   

Last year, according to various reports, local rice production was estimated to have increased to about 80 percent to 85 percent of total rice consumption in Nigeria. Though there were reports of smuggling, which is illegal importation through the country’s porous land borders, and these were unaccounted for. This indicates that rice consumption in Nigeria is actually higher than official figures released by the federal government. There were also reports of overshooting of allocated legal import quotas by some companies which produce local rice but got allocations to import with lower tariffs to meet the gap in domestic rice supply. These issues increased the cynicisms of those who harbour doubts about the country’s increasing rice production capacity.    

Though it has always been debated, annual domestic rice production reportedly increased to over 4 million metric tonnes in 2014, estimated at over N800 billion, which is 80 percent of the 5million to 5.5million metric tonnes of rice consumed yearly in the country in 2014. Between last year and now, this annual domestic consumption is reported to have increased to at least 6 million to 6.5million metric tonnes.

Akinwunmi Adesina, minister of agriculture and rural development stated last year in Kwara state that “Within three years, our national paddy rice production rose by an extra 7 million metric tonnes. The number of integrated modern rice mills in the country rose from just one in 2011, to 18 by 2014, all processing the local paddy into high quality finished rice.”

This shows that the country as at then in 2014 was producing over 4 million metric tonnes of rice which is about 80 million bags of 50 kilogramme of rice valued at over N800 billion.

Though there were reports of massive rice smuggling through the porous land borders, many reputable food companies operating in the country responded to the federal government’s Agricultural Transformation Agenda and made large investments in rice production, creating jobs.

But even with the policy reversal, health concerns is making many Nigerians  shun imported rice as local rice is adjudged to be healthier than the imported ones. High-quality and well-packaged Nigerian rice are now in the market. They include Quarra Rice, Umza rice, Ebony super rice, Eko rice, Mikap rice, Ashi rice, Queen of the Niger and Mama’s Pride from Olam, Royal Stallion, Oryza rice, Miva, Golden penny rice etc.

One of such companies making massive investment in domestic rice production is Olam Nigeria Limited. Ade Adefeko, head, corporate and government relations, told BusinessDay last year that the firm had been enhancing food security in Nigeria through the development of a 10,000 hectares rice farm in addition to its rice milling facility. Olam’s integrated mill in Nasarawa state is supported by an out-grower programme which it plans to scale up from 3,000 farmers to 20,000 farmers.  Adefeko revealed that 3,000 hectares out of the firm’s 10,000 hectares is already under cultivation and that up to 1,000 people are employed on the farm and over 950 are employed on the milling plant at peak season.

With a land area of 923,768 square kilometres, Nigeria has a total of over 79 million hectares of cultivable land. Out of this, about 4.6 million hectares are reportedly suitable for rice production. However, only about 1.8 million hectares or 39 percent is currently utilised for rice cultivation in spite of the fact that rice is reported to be the fourth major cereal crop after sorghum, millet and maize in terms of output and cultivated land areas. This means that over the years, Nigeria has been under-utilising its natural potentials in the areas of domestic rice farming, production and marketing.

Going by recent statements of Aminu Goronyo, the current president of Rice Farmers Association of Nigeria (RIFAN), at least 12.8 million people are involved in rice production.  If all of the estimated N800billion to N1 trillion rice being consumed in the country annually is produced within the country, about N1 trillion would be flowing in the system among these investors, creating massive jobs, increased purchasing power and boosting the economy.

OLUYINKA ALAWODE