Ogun industries upbeat as intermediate firms raise raw materials supply

Manufacturers in the food and beverages, distilleries, pharmaceutical sector in Ogun State are upbeat as intermediate firms ramp up supply of agricultural produce which forms the majority of raw materials used at factories.

 

BusinessDay gathered that the 60 percent of raw materials used by industries in the state are supplied by farmers ‎and institutions that specialise in cassava, maize, fruits, soya beans, medicinal leaves and other agro-allied raw materials.  

 

The Federal University of Agriculture, Abeokuta (FUNAAB) recently signed a memorandum of understanding with Chinese investors in Ogun-Guangdong Free Trade Zone in Igbesa and some distilleries, for the supplies o‎f cassava tubers for onward haulage to China in the form of cassava chips.

 

The supplies of cassava tubers by FUNAAB to these industries cover training and re-training of farmers, ‎provision of farming tools and other empowerment programmes targeted at the improvement of agric raw materials to manufacturing companies, just as some large-scale farming is ongoing across three senatorial districts in the state, attracting private investors for large-scale production and supply of agricultural produce to manufacturing plants.

 

Also, the Ogun state government’s 70-80 percent rebate on agricultural lands is attracting huge investment in agriculture and agro-allied production meant for onward supply to industries. According to Ronke Sokefun, immediate past commissioner for agriculture in the state, the rebate on agricultural land acquisition was meant to attract investors in agricultural sector of the economy in order to create employment and wealth. 

 

With the rebate, many investors are now pumping funds into the agricultural sector to achieve 80 percent local input preference as proposed by Governor Ibikunle Amosun’s blueprint on agriculture and industrialisation policy.

 

The example of such large-scale farming currently springing up across the state is that of Olabel Farms, which has 300 hectares of maize farm and crop plantation in Ilaro, Yewa South local government area, established mainly for the supply of agric raw materials to the manufacturing plants. 

 

Speaking at the inspection of the farm in Ilaro at the weekend, Olatunji Bello, executive director of Olabel Farms, said huge investment in such plantation was borne out of the desire to increase supply of raw materials and produce to manufacturers in the state. 

 

 Bello said the production of crops such as maize and other crops would go a long way in providing employment opportunities, creation of wealth and improved value addition to locally sourced raw materials, urging the state government to further create conducive business atmosphere in terms of infrastructure and security for investors.