Indigo Agriculture and Anheuser-Busch Partner to
Meet Sustainability Goals for Rice Production
BOSTON--(BUSINESS WIRE)--Mar 11,
2019--Indigo Agriculture, a company dedicated to harnessing nature to help
farmers sustainably feed the planet, and Anheuser-Busch, the country’s leading
brewer, have announced a partnership focused on sustainable rice production.
Indigo has committed to delivering 2.2 million bushels of Indigo Rice™ to
Anheuser-Busch that is grown with specific environmental attributes. Growers
contracting with Indigo to produce rice for Anheuser-Busch will reduce water
and nitrogen used by 10% and achieve at least 10% savings in greenhouse gas
emissions compared to state benchmarks. This partnership is the first
of-its-kind to offer growers an end-to-end solution that incentivizes the
commercial production of sustainable rice.
“Anheuser-Busch is leading the
food and beverage industry in meeting consumer demand for sustainably-grown
ingredients,” said David Perry, Indigo’s CEO. “Indigo is leveraging its
end-to-end, integrated approach to agriculture to grow, capture, and preserve
the value of sustainably produced ingredients. We are thrilled to partner with
Anheuser-Busch, a company that shares our vision for beneficial agriculture, to
create meaningful value for the growing community and higher quality options
for consumers. By collaborating with leaders across the supply chain, we’re
conserving natural resources, preserving farmland for future generations, and
producing healthier final products.”
“Sustainability isn’t just part
of our business, it is our business. Partnering with Indigo to source rice with
unique environmental attributes rewards our farming community for adopting
sustainable agricultural practices and incentivizes further innovation,” said
Ingrid De Ryck, Vice President, Procurement and Sustainability, Anheuser-Busch.
“Most importantly, this trailblazing collaboration supports three of
Anheuser-Busch’s 2025 Sustainability Goals by advancing smart agriculture,
watershed health, and carbon emissions reductions.”
Anheuser-Busch has proudly
supported farmers and the agricultural community for generations. The company
buys rice from all over the U.S., and mills approximately 2.6 million pounds of
rice a day at a company-owned facility in Jonesboro, Arkansas. The brewer is
the largest end user of rice in the United States, and rice is a key ingredient
in their leading beers. Rice helps provide a clean, crisp taste, and has been
part of the Budweiser recipe since 1876. Budweiser has stayed true to the
original recipe since it was first introduced, and rice is a prized ingredient
in both the Budweiser and Bud Light recipes.
“Indigo’s field teams, data
collection tools, and commitment to grower profitability make them the ideal
partner to source rice with lower environmental impact,” said Jess Newman,
Director of Agronomy for Anheuser-Busch. “Beyond the sustainability gains, we
are excited that this partnership is a win-win for grower profitability.
Growers can earn a premium for progressive practices, save on water and
nutrient input costs, and realize yield increases due to the Indigo microbial
seed treatment for rice. By creating a market for rice grown with innovative
practices, we are delighted to empower and support our growers as they continue
to move the industry forward on farm efficiency.”
Indigo’s full suite of microbial
and digital offerings, trained on-farm professionals, and data analysis
capabilities allow the company to guarantee identity preservation and
transparency in the planting, growing, and delivery of rice to meet defined
thresholds for sustainability. With Indigo microbial technology and data-driven
agronomic support, growers are able to improve rice yield while reducing the
use of chemicals, irrigation, and fertilizers. Anheuser-Busch will leverage
these capabilities to assure a high-quality final product, meeting consumer
demands for thoughtful sourcing and preservation of the environment, while
enabling growers to earn more for their grain.
ABOUT ANHEUSER-BUSCH
For more than 165 years,
Anheuser-Busch has been woven into the cultural fabric of the United States,
carrying on a legacy of brewing great-tasting, high-quality beers that have
satisfied beer drinkers for generations. Today, we own and operate 23 breweries,
15 distributorships and 23 agricultural and packaging facilities, and have more
than 18,000 colleagues across the United States. We are home to several of
America’s most recognizable beer brands, including Budweiser, Bud Light,
Michelob ULTRA and Stella Artois, as well as a number of regional brands that
provide beer drinkers with a choice of the best-tasting craft beers in the
industry.
From responsible drinking
programs and emergency drinking water donations to industry-leading
sustainability efforts, we are guided by our unwavering commitment to
supporting the communities we call home.
For more information, visit www.anheuser-busch.com or
follow Anheuser-Busch on LinkedIn, Twitter, Facebook and Instagram.
ABOUT INDIGO
Indigo harnesses nature to help
farmers sustainably feed the planet. Applying innovative technologies across
the agricultural supply chain, Indigo is working to bring about a more
beneficial agricultural system that improves grower profitability, as well as
environmental and consumer health. Growers working with the company are offered
an integrated solution, including beneficial plant microbes, agronomic insights,
and data in support of regenerative and sustainable growing practices. Growers
and buyers are then connected directly by Indigo through a marketplace and
hauling platform to bring high quality harvests to market. The company is
headquartered in Boston, MA, with additional offices in Memphis, TN; Research
Triangle Park, NC; Sydney, Australia; Buenos Aires, Argentina; and São Paulo,
Brazil. For more information on Indigo Agriculture, please visit www.indigoag.com and
follow the company on Twitter, Facebook, and LinkedIn.
CONTACT: FleishmanHillard for
Anheuser-Busch
Alex Roberts
Alex.Roberts@fleishman.comHatch
for Indigo
Judy Huang
indigo@thehatchagency.com
KEYWORD: UNITED STATES NORTH
AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: TECHNOLOGY DATA
MANAGEMENT SOFTWARE NATURAL RESOURCES AGRICULTURE ENVIRONMENT RETAIL
FOOD/BEVERAGE
SOURCE: Indigo Agriculture
Copyright Business Wire 2019.
PUB: 03/11/2019 09:00 AM/DISC:
03/11/2019 09:01 AM
http://www.businesswire.com/news/home/20190311005271/en
Philippines set to be world’s 2nd
largest rice importer
Louise Maureen Simeon (The
Philippine Star) - March 11, 2019 - 12:00am
MANILA, Philippines — The Philippines is once again setting
record levels in terms of buying rice in the world market as it is expected to
be the second-largest global importer this year at 2.6 million metric tons
(MMT) of rice.
After the 2008 rice crisis, the Philippines is now seen sourcing
some 2.6 million MT after the removal of quantitative restrictions on
Filipinos’ basic commodity.
This makes the country the second-largest rice importer for
2019, next to China with an estimated 4.5 million MT of rice imports.
In the latest report of the United States Department of
Agriculture-Foreign Agricultural Service (USDA-FAS), this year’s importation is
37 percent higher than the 1.9 million MT imports in 2018.
Just last week, Republic Act 11203 or the Rice Import
Liberalization Law took effect, which replaced rice import quantitative
restrictions with tariffs and reverted the Minimum Access Volume to its 2012
levels.
Rice is a staple food in the country and the law is intended, in
part, to spur imports in order to quell domestic unrest caused by inflation.
“As a result of this legislation, higher rice imports are
expected from nearby ASEAN member countries, with their relative low cost and
preferential access to the Philippines,” the USDA said.
“This is a record not seen since the international price spike
in 2008 and would make the Philippines the second-largest global importer in
2019,” the report added.
Given the high non-most favored nation (MFN) tariff rate and in
the absence of a free trade agreement, it is not anticipated that the US or
other countries will be competitive enough to pick up much of the expanded
volume of Philippine imports.
The USDA already hiked this year’s rice imports from the earlier
projection of 2.3 million MT following the lifting of the quantitative
restriction on the commodity.
Agriculture Secretary Emmanuel Piñol, for his part, said the
huge volume of importation is only temporary and will eventually slowdown.
“Ironically, we are also expecting a higher local harvest this
year. I believe that when the market chokes, the inflow of imported rice will
naturally slow down,” Piñol told The STAR.
“This is just for now because everybody is excited to import.
With the price of local palay dropping to as low as P16 [per kilo], local rice
prices could go as low as P36. That would be competitive with the imported
rice,” he said.
In fact, application to bring in the commodity even before the
law took effect already reached nearly two million MT.
The country’s additional imports also aim to strengthen buffer
stocks ahead of the midterm elections scheduled in May 2019.
Rice consumption has also been raised to 13.75 million MT from
13.65 million MT as rising food prices are forcing less affluent Filipinos to
consume more rice and less meat and vegetables.
Production of milled-rice this year is seen decreasing by one
percent to 12.15 million MT from the 12.23 million MT in 2018.
USDA said there may be slight reduction in area planted as rice
areas in 2019 will be at 4.81 million hectares, one percent lower than the 4.84
million hectares last year.
|
Cambodian Farmers
Struggle Against Changing Climate
March 10, 2019 0:15 AM
Villagers gather to catch fish in
Trapaing Thmar reservoir as the drought continues to hit the community, in
Banteay Meanchey, Feb. 23, 2019. (Sun Narin/VOA Khmer)
PHNOM SROK DISTRICT, BANTAEY MEANCHEY
PROVINCE, CAMBODIA —
Built atop the bones of the dead,
Trapaing Thmar reservoir is largest irrigation project built by the Khmer Rouge
regime. Today, it is running dry amid one of the worst droughts to hit Cambodia
in living memory.
In northwestern Cambodia, more
than 400 kilometers from Phnom Penh, the vast protected area serves as a
crucially important source of water for thousands of rice farmers and their
families in Phnom Srok district and other neighboring areas.
Trapaing Thmar reservoir is also
the habitat of numerous endangered species, including the Sarus crane, the world’s
tallest flying bird.
During a recent visit to the
area, farmers were fishing and pumping water to their rice fields from a
scattering of small ponds, all that remains of the more than 12,000-hectare
reservoir.
Ping Chantrea is a farmer in
Banteay Meanchey province’s Phnom Srok district. She told VOA that this year
rice farming was bad due to the lack of rain, on Feb. 22, 2019 (Sun Narin/VOA
Khmer)
Lack of rain, wet season or dry
In this part of Banteay Meanchey
province, farmers remark on the lack of rain, during the wet season as well as
the dry season. Cambodian farmers grow rice in both seasons. Cambodia’s rainy
season typically arrives in May and ends in October and dry season runs from
November until April.
“It is not like before. It is
worse than ever,” said Ping Chantrea, a 30-year-old farmer who adds she can no
longer produce enough rice to sell.
“It only rained twice during the
wet season last year,” she laments from her home in Ponley commune’s Porabun
village, a concern echoed by others.
“Early this year until now, it
has not rained at all,” said Chantrea who is eight months pregnant.
“I lost the money I saved from my
wedding,” she added.
A farmer collects and packages
his rice along a local road in Banteay Meancheay province, on Feb. 23, 2019.
This year rice farming in the province was affected by drought and lack of
reserved water in the reservoir. (Sun Narin/VOA Khmer)
Rice production falls
Farmers in this district have
complained that production of rice in both rainy and dry seasons has declined.
Another farmer, Laing Thom, says
he believes the temperature is rising and the rains are no longer as regular as
they once were.
“Now it is just only about 8
a.m., but it is very hot,” Thom said.
Cambodia has been ranked among
the Southeast Asian countries most vulnerable to climate change, according to
a report by Asian Development
Bank.
Many of Cambodians rely on
agriculture, and the changes to the country’s climate lead to more droughts or
more floods.
According to UNDP statistics,
22,695 Cambodians out of every million were impacted by natural disasters in the
country between 2005 and 2012,
especially by flood and drought. Flooding in 2009, 2011 and 2013 led to more
than $1 billion in damage and 461 fatalities.
Thom says he cannot produce as
much rice on his 2.6-hectare farm.
“I can’t make a profit, or even
cover the cost of fertilizer,” he said, complaining of price manipulation.
Farmers expect to sell their rice for at least 18 to 20 cents per kilogram, but
it has been sold at a lower price.
FILE - Cambodian Prime Minister
Hun Sen gestures while speaking in Phnom Penh, Cambodia, Aug. 1, 2018.
Only one rice crop
On Feb. 20, Prime Minister Hun
Sen, citing the drought, asked rice farmers to plant only for the wet season
harvest.
“Please farm only one crop this
year because we do not have enough water,” Hun Sen told thousands of workers in
Kandal province, adding that Cambodia will face a severe drought and water
shortages this year.
In a directive dated Jan. 17, Hun
Sen called on local authorities and villagers to conserve water for crops
because Cambodia will likely be indirectly impacted by El Niño, which refers to
a short-term period of warm ocean surface temperatures in the Pacific Ocean,
stretching from South America towards Australia.
Cambodia will also grapple with
soaring temperatures of between 40 and 42 degrees Celsius in April and May.
Farmers pumped water from
Trapaing Thmar reservoir to their rice fields, in Banteay Meanchey province,
Feb. 23, 2019 (Sun Narin/VOA Khmer)
Lim Kean Hor, minister of water
resources and meteorology visited the Trapaing Thmar reservoir area Feb. 23,
and told Phnom Srok villagers that by farming during the dry season, they had
acted against Hun Sen’s directive.
“They have farmed more than the
plan allowed. They were allowed to farm only a total of 5,000 hectares of
land,” said the minister, adding “we lack water” until an anticipated break in
mid-May.
Impact on farmers
Drought has now affected more
than 20,000 hectares of rice fields in 13 provinces, according to Cambodia’s
National Committee for Disaster Management.
In 2015, Cambodia experienced its
worst drought in half a century, with most of its 25 provinces experiencing
water shortages, and about 2.5 million people severely affected.
Mean Seum, chief of Porabun
village, is concerned about rice farming in his community, in Banteay Meanchey
province, Feb. 22, 2019. (Sun Narin/VOA Khmer)
Mean Seum, chief of Chantrea’s
Porabun village, said an estimated 10 percent of the normal amount of rice will
be produced this year.
“Mostly they owe money to
microfinance [institutions] and other people,” he said. “The debt will be more.”
Since April 2017, the interest
rates on new loans from MFIs and rural credit operators was set to a maximum of
18 percent. Prime Minister Hun Sen said that the MFIs and credit operators
previously offered loans with interest rates of 20 and 30 percent per year.
“If it is worse like that in the
future, parents will migrate to work in Thailand or children will be forced to
work,” he added.
“There is no family in this
village whose members don’t go to Thailand,” he said, adding that the migrants work in
construction or agriculture.
Normally the migrant workers
return to help their families with the harvest.
“But they won’t come this year,”
he added.
Seum himself has three hectares
of land and rents two hectares for farming. But he cannot break even in the
current climate, he said.
“People also get angry with each
other because some families get water for their rice fields and some don’t,” he
added. Families who live closest to Trapaing Thmar are the ones who get the
water supply for their crops.
Thousands of families
Em Dara, the technical assistant
at the Ministry of Water Resources, who oversees the reservoir, said about
5,000 hectares of land have been affected so far.
“It has affected thousands of
families,” he said. “Some don’t have water to use now.”
“It has affected species and fish
in the reservoir as well. The climate has changed now. It is the worst in 10
years,” he said.
The reservoir can store up to 180
million cubic meters of water, but now holds less than 1 million cubic meters,
according to Dara.
Villagers are also concerned
about the impact on fish stocks, which nationwide provide a living for millions of
Cambodians and up to 80 percent of all animal protein in the diet.
“There is no water. This year is
worse than other years,” said Mea Siz, 58, as he fished at Trapaing Thmar
reserve. “I am now concerned about fish here.”
Taking a chance
Having land to farm crops,
especially rice, is central to the lives of many Cambodians. It is what gives
them a sense of security, community and family. Eighty-five percent of
Cambodia’s approximately 16 million people depend on subsistence agriculture
for their livelihoods.
Despite being aware of the water
shortage, farmers in this district say they have decided ignore Hun Sen’s
directive and farm through the dry season.
“I could not make do with just
the rice farmed during rainy season, so I decided to go ahead in the dry
season, but it was not successful,” Chantrea said.
“I thought that the water in the
reservoir was enough, but it was not because many farmers have done farming at
the same time and the water is insufficient,” she added.
Deu Yuch, a rice farmer, is
concerned that his debt might not be paid off if he continues to lose profit
from rice farming, in Banteay Meanchey, Feb. 22, 2019 (Sun Narin/VOA Khmer)
Deu Yuch, another farmer, says
the poor farming conditions have led him to fall behind. He reckons he’s about
$3,000 in debt.
“I don’t know what to do, but
will keep growing rice in the next season,” he said. “We have no choice. We
have to take a chance.”
Some parts of the community have
been provided water from an irrigation system built by Chinese investors. The
water has been transported from nearby provinces Siem Reap and Oddar Meanchey,
according to Khut Khuon, Poichar commune chief.
The irrigation system constructed
by Chinese company in Banteay Meanchey province for farmers in the community to
access water for their rice farming, Feb. 23, 2019. (Sun Narin/VOA Khmer)
Khut Khuon Poichar says farmers
will pray for rain during Choul Chhnam Thmey, the Cambodian New Year,
celebrated from April 14 to 16 this year.
“We will ask the Buddha to give
rain,” he said.
As the drought continues to
blast the countryside, Chantrea says she is worried that it will get worse and
she will not have enough water to farm in the wet season.
“What can I do? I have to take
the chance to do it,” she said.
Farmer Laing Thom said villagers
would attend a New Year ceremony to seek help from Tevada, a host of guardian
angels central to Cambodians’ traditional spiritual belief system.
“We are farmers, if we don’t do farming, what do we have to eat?
So I take a chance with Tevada. I pray to Tevada to bring rain so it will be
cold and have water,” Thom said.
Rice and broken rice exports expected
to decline
PUBLISHED 10 MARCH 2019
From April 1, 2018 to March, 2019,
Myanmar’s rice and broken rice exports are expected to reach about 2.3 million
tons, down about 1.2 million tons compared with the same period last year.
Ye Min Aung, President of Myanmar
Rice Federation (MRF) said: “This year, we have exported more than two million
tons of rice. The total rice exports are expected to hit about 2.3 million tons
including the additional exports in March.”
In the past, Myanmar’s fiscal year
was from April 1 to March 31. Since 2018-2018 fiscal year, Myanmar has changed
its fiscal year from October 1 to September 30.
Aung Than Oo, Vice-President of MRF
said: “Our calculation is based only on crops. It is related to the paddy
harvest season. It is nothing to do with the government’s fiscal year. But the
rice export is calculated during the period from April 1 to March 31.”
“In 2017-2018 FY, Myanmar exported
more than 3.5 million tons of rice and broken rice. The rice export broke the
record set over 50 years ago. The total rice export is no more than three
million tons. Over five or six years, the country exported more than two
million tons of rice,” Ye Min Aung added.
The country earned 699.467 million
US dollars from exports of over 2.115 million tons of rice and broken rice from
April 1, 2018 to February 15, 2019.
Exports of rice via the border
trade camps account for 50 per cent of the total export while the exports of
rice via sea route represent over 49 per cent.
During ten and half months, Myanmar
exports rice to more than 50 countries.
Myanmar is negotiating with China
to official export a quota of 400,000 tons of rice to China. Both sides will
soon sign the MoU, Aung Than Oo added.
India's April-January rice, buffalo
meat exports drop: government body
MARCH 11, 2019 / 2:44 PM
A Kashmiri labourer carries a sack containing
rice on his shoulder as he walks inside a government godown in Srinagar
September 14, 2012. REUTERS/Fayaz Kabli/Files
MUMBAI (Reuters) - India’s rice exports for the
April-January period dropped 10 percent from a year earlier to 9.49 million
tonnes, as leading buyer Bangladesh trimmed purchases due to a bumper local
harvest, a government body said in a statement on Monday.
The country’s buffalo meat exports during the
period fell 11 percent from a year ago to 1.03 tonnes, the Agricultural and
Processed Food Products Export Development Authority said, as demand moderated
from the biggest buyer - China.
Guar gum exports edged up 2.4 percent to
415,822 tonnes on robust demand from the United States.
India is the world’s biggest exporter of
buffalo meat, guar gum and rice.
The country’s exports of pulses more than
doubled during the period to 247,789 tonnes, while dairy exports surged 77.7
percent to 138,936 tonnes due to government incentives for exports of skimmed
milk powder, the agency said.
Reporting by Rajendra Jadhav; Editing by
Subhranshu Sahu
Foreign rice threatens Nigeria’s
rising domestic production
| Published Date
Despite rising Nigeria domestic
rice production profile, imported and smuggled rice continue to make consumers
first choice in the market and it’s everywhere, investigations by Daily Trust
on Sunday have revealed.
Domestic rice production received a boost when President
Muhammadu Buhari launched the Anchor Borrowers’ Programme in Kebbi State in
November 2015 to address the huge import problem.
Current statistics in the public domain indicates that in 2016,
58, 260 metric tonnes of rice was imported into the country and that by
November 2017, the figures have dropped to 23,192 metric tonnes; this figures
further shrink to just 6, 277 metric tonnes in 2018.
However, despite that figures of local production and various
brands in the market, many wonders where all the foreign rice that floods the
country comes from even with the official ban on rice importation through the
land borders.
With more speechifying claims around the rice revolution, Daily
Trust went to the producing states to investigate the nation’s drive to achieve
self-sufficiency in rice. And also to understand the underlying issues that may
drive down production and how the local rice fares in the market vis-a-vis the
imported or smuggled rice.
How smuggling erodes success,
threatens investments
Millers and other stakeholders in the sector are of the belief
that smuggling of foreign rice is threatening their confidence.
Mr Babatunde Ajibola, Head, Media and Communications, Elephant
Group Plc, said in Lagos that the massive rice smuggling into the country was
threatening the confidence and ability of local rice millers and farmers.
He noted that a visit to major rice markets, such as Iddo,
Daleko, Ketu, Mile 12, Alaba and Sango-Ota, revealed that the various brands on
display were imported with few or no local ones.
“This unprecedented flooding of the nation’s major markets with
smuggled imported rice is of great concern to investors in rice, Agro companies
and farmers in spite of government’s ban on the products.
Observers said thousands of tonnes of rice come through the
porous borders floating the market and making difficult for investors.
In Katsina State, the acts of bringing in commodities most
especially Rice, Vegetable oil and other consumables is called ‘Fito’ and is
the most thriving and lucrative business and commercial activities being
perpetrated by the majority of people residing across the Nigeria- Niger border
along the state.
This act involves ferrying commodities most especially rice
across the border through the numerous illegal routes due to the porous nature
of the border.
People of these Border communities knowingly or unknowingly see
this act as just another way of making a living despite several fracases with
law enforcement agencies like the customs in which many lives have been lost.
In Katsina, there exist some recognised border points namely
Magama in Jibia, Dankama in Kaita and kwangolom in Daura and Babban Mutum in
Baure. However, these smugglers to evade customs and other security operatives
by using untarred roads and difficult farmlands to drive in their commodities.
Their operational cars popularly referred to as “Rai banza” are
old rickety Peugeot which normally gets overloaded with rice and other items to
move into the country.
Also, big time importers engaged these youths to either use
motorcycles, J5 buses or Peugeot cars to ferry Rice across the border in which
each bag is charge N300 from Dan Isa town in the Niger Republic to get into
Nigeria, a distance of 5km.
Sometimes, the trailers mostly from Cotonou, Benin Republic
carrying the rice reaches Hirji village, another border town community to
unload before the youths are engaged. Hirji is just a kilometre to Magama in
Jibia.
Investigation showed that a bag of rice sells between N9,000 to
N11,000 at both Dan Isa and Hirji. The prices fluctuate depending on the
exchange rate as business is done in French francs (CFA).
As at this week, in Magama a border town Jibia , in Nigeria, the
rice sells for N11,500 and by the time it reaches Katsina the price jerks up to
N12,500.
Aside youths, women are not left out in this trade as they troop
to Jibia to purchase this rice from the youths and then transport to Katsina.
Sometimes they pay the youths N700 difference to ride through
untarred roads to appear behind army barracks and Dubai market to Katsina town.
Hajiya Jamila, a divorcee told our reporter that she was
introduced to the business after the demise of her husband.
“ I make a living from this and people come from Kano even to
get supply some times they make available monies to help them get it across’
she added
Most of the routes used along Jibia passes through Hirji, Bayan
post, Gidan Dan Bafilace, Agangaro, Riko and Gutama.
In Kwongolom of Maiadua local government, several routes are
also been used to perpetuate such act.
Towns like Maimaje, Botsotsuwa, Tsatsumburm and Yekuwa of Niger
Republic are always the routes for the illegal trade.
A Nigerien, Musa said every now and then youths on motorcycles
do pass by his farmland carrying bags of rice to evade officials.
A Maiadua resident Muhammad Aliyu told our reporter that the
cost of carrying such rice varies on the difficulty of the roads during such
trips.
‘When security is tight definitely it’s higher and can reach
N500 but most at times the cost ranges from 200-300’ he said
Malam Salisu who runs a noodle joint in Katsina and hailed from
Tawa state in Niger said hardly a car they board to Nigeria that will not be
stocked with rice.
He said, people are tucked between bags of rice noting that even
our people do help come in with rice for Nigerians, they pay us a good price of
between N1000 to N1500’.
Despite the risk involved, smuggling continues in Katsina and
the customs are always at fracas with them arresting and seizure people are
still going into the trade.
On many occasion, motorcyclist in Large numbers can be seen
carrying between three to five bags while these specialised cars are also
spotted.
A lot of lives have been lost between the smugglers and
officials over confrontations at different places in the state.
In January last month alone, the Federal Operations Unit (FOU)
of the Nigeria Customs Service, Zone ‘B’, said it seized 1,520 bags
of parboiled rice in Katsina with a duty paid value of N62m and two persons
were arrested.
Also in the last quarter of last year, The former Area
Comptroller in charge of Katsina/Kaduna command, Oyeleke Olakunle Abdulrazak
said 606 bags of 50Kg foreign rice, 239 bags of 50Kg imported sugar, 73
bales of second-hand clothing, 327 jerry cans of vegetable oil, 25 motor
vehicles of various kind, one truck and two motorcycles were seized.
In Sokoto state, foreign rice still dominates the local food
stores and markets according to Daily Trust investigations.
A resident of Sokoto metropolis, who is privy to the rice
business, wondered if the ban in the community would totally block it from
gaining access to the markets and stores because of the porous nature of
Nigeria’s borders.
The resident, who sought for anonymity, said the smugglers now
use motorcycles to bring in the commodity through unapproved routes. “The
motorcyclists are very conversant with the terrain because they are born and
brought up there. The smugglers use them for their illicit business.”
He suggested intensive sensitization campaign especially in the
border communities to discourage them from involving in such economic sabotage.
When our reporter visited Illela border community, he observed
that their market was flooded with foreign rice.
One of the traders, who spoke to our reporter, confirmed that
they were getting it from the neighbouring Niger Republic through secret
routes.
When contacted the Head of Customs in the border post, DC Sa’idu
Ahmed said their renewed onslaught on smugglers was the reason for the traders
to be running out of stock.
According to him, they have over five checkpoints along the axis
and their men were there 24 hours daily.
On his part, the spokesman of Sokoto zonal command of Customs,
Magaji Mailafiya said they were not raiding market to recover foreign rice to
avoid rancour.
“We emphasized on intelligent surveillance which enables us to
track the movement of contraband including foreign rice from the loading point
to storage facilities where it is re-bagged and reloaded for onward delivery to
marketers,” he said.
He said that it was through this arrangement that they had been
making a lot of seizure along Sokoto- Gusau road and Koko-Yauri road in Kebbi
states, adding that the command had in January intercepted two tankers
conveying foreign rice along these roads.
Our findings in the area shows that the smuggling usually crash
the price of the rice per bag near the boarders.
A 50kg bag of smuggled rice can cost as low as N10500 and
N11,000 at the boarder.
How upsurge in mills boost
local production
One of the good things that have happened to the current drive
to increase local production is the increase in local capacity to mill the
rice.
Nigeria has been able to attract both local and foreign
investments in the last few years into processing, leading to many local brands
to debut the market.
There are currently many rice mills (large-scale, medium and
small-scale) in the country producing different brands of the rice.
Olam mill in Rukubi in Nasarawa has a capacity for 105,000
capacity and produces the Mama Gold/pride, which is currently a household name
in the country.
WATCOT mill is said to even have a bigger capacity of 120,000
located in Argungu, in Kebbi State. It produces the Bulls brands. Also located
in the state is Labana Mill in Birni-Kebbi producing Labana and Lake Rice
brand, which is a joint venture between Kebbi and Lagos states.
Popular Farm Rice Mill located in Chalawa in Kano state produces
some of its parent brands by Stallion (Royal Stallion Shinkafa, the Supper
Champion). Kano is also host to the Umza Rice Mill.
In Benue state, Mikap and Ashi mills have also entered the
market with their local brands called Miva and Ashi.
Onynx Mill in Bida, Niger State is producing the Savanah Premium
while another brand from KK mill in Sokoto state is also in the market.
In Anambra State, Stine Rice Mills produces the Anambra Rice
which is a product of the Anambra state government while Ebony Rice by Ebonyi
integrated Rice Limited is also a household name in Nigeria.
Another N10bn Lolo rice mill is also billed to take off in Kamba
and Dangote is said to be building another N20bn rice mill which is slightly
larger at Saminaka area of the state. WACOT has started the second N20bn rice
mill plant in Yauri-all in Kebbi State.
Besides these big mills, there are host of many other local
brands spreads across many localities.
These milling companies hunt through the major producing belts
and major grains markets for paddy to feed their various mills.
Olam’s Vice President Corporate and Government Relations Olam
Nigeria, Ade Adefeko, had told our agric editor during a recent interview that
apart from its out grower policy, his company also source for paddy rice from
major producing belt including Nasarawa, Taraba and Kwara states.
Chairman, Umza Rice in Kano, had during a similar interview,
told our agric editor that the company usually takes delivery of paddy rice
from Jigawa, Taraba, Kwara and other parts of the country.
A visit to the company in Kano will show long cue of fully
loaded trailers waiting to offload paddy rice.
Walcott’s agent at Lafiagi also confirmed that the company also
buys paddy rice from as far as Kwara state.
This, according to our findings, has been a catalyst for local
farmers in the rice producing belt to expand their farm hectares.
For instance, in Kebbi State, rice production has become a
serious business. Buyers go as far as to the farms to buy rice. In the state,
there are farmers who have up to 200 hectares of rice fields.
Investigations revealed that the Sunday Rice Market at Kamba is
usually flooded with finished rice and paddy from different areas of the state
and neighboring Niger and Benin Republic. A 50kg of finished local rice is sold
between N9,500 and 8,000 at the border areas. Paddy that are sold between
N10,000 and N9,000 at Birnin Kebbi, Bunza, Suru, Bagudo, Argungu, Augie are
sold at Kamba rice market between N7,000 to N6000.
Project Coordinator of Labana rice farms, Alhaji Umar Dodo
Aliero, revealed a new strategy that will further boost production from their
end and if every other thing goes well the farm is expected to realize over
198,600 bags of rice during harvesting. “We can transplant about 50 hectares in
a day. We have developed our own variety of rice,’’ he said.
On a similar front, Taraba State is one of the largest producing
states than many people previously thought as this investigation has shown.
A survey of the major markets in the states has shown that about
four major big millers in the country- Olam Rice Farm based in Rukubi in
Nasarawa State, Stallion Rice, WACOT in Argungu, Kebbi State, Umza in Kano, and
other medium scale milling companies in Benue state troop to the place to buy
paddy rice.
Daily Trust on Sunday went to Mutum-Biyu in Gassol, Karim Lamindo Local
Government areas and Yelwa at the outskirt of Jalingo to assess production
level and it was discovered that although this is not the production peak
period, many millers have aggregated a lot of paddy from the state.
Olam alone collects about 430 trailers of rice annually, about
half of this paddy comes from Mutum Biyu (Gassol) alone, 70 trailers from
Jalingo and other places in the state. Each of these trucks carries 30 tonnes
of rice.
Emeka Isaac Amakwe who is into procurement with Olam said the
company gives out money to the indigene to source this paddy which the company
buys between N100 to N119 per Kg.
Stallion Group has an aggregation centre for collecting paddy
through various agents who are also rice farmers.
It is a common sight to see many trucks loading paddy out of
mutum biyu daily as a visit to the area twice have shown- the same in Jalingo,
the state capital.
Daily Trust on Sunday findings in rice producing communities of Kwara State have
shown massive production of local rice. Communities along the River Niger
including Lafiagi, Patigi, Paada and Shonga recorded massive production of rice
in the last planting season.
Our Agric Editor, who visited some of the communities gathered
that local rice milling companies like Umza, Olam, Stallion and Walcott are the
main buyers of paddy rice from the communities.
Their agents were stationed at their various collecting centres
to buy paddy directly from the farmers.
One of the agents, who spoke with Daily
Trust on Sunday at Lafiagi, Suleiman Mohammed, said over 100
trucks had already left the community since the beginning of dry season.
He said a 50kg paddy costs between N7,000 and N8,000.
At Pada, hundreds of bags of paddies are being moved to Patigi
on daily basis from where agents will buy them off for their companies.
There are lots of rice productions along Kaima and Barutine axis
of Kwara State from where millers buy them off to Kebbi and Kano states.
The rice producing communities in Kwara are said to be producing
about one million metric tonnes per anum.
Investigations in Benue revealed that rice is produced in
commercial quantity at Naka in Gwer West, Guma, Ikpayongo in Gwer East, Kwande,
Oju, Ushongo, Buruku, Kastina-Ala, Makurdi, and Agatu local government areas
respectively among others.
Presently, most warehouses are stocked with rice paddy while
marketing points such as the one located at Daudu in Guma have overfilled their
barn with more paddies still being brought for sales by the farmers.
Rice specialist and Chairman of Rice Farmers Association (RIFAN)
in Benue state, Fidelis Iyorumgwa Akosu, intimated that the 6000 registered
farmers of the association are currently doing exploit under the Central Bank
of Nigeria (CBN) anchor borrowers programme.
Akosu said each of the farmers under the programme is growing at
least two hectares of rice farm which is expected to produce a maximum of
between 120 and 160 bags of 100kg at the end of harvest with the advantage of
modern technology implored and adequate rainfall.
The RIFAN chairman worried about the smuggling of rice from the
state by alleged Anambara traders who go as far as re-packaging the local rice
and sell same as foreign produce because according to him the quality of rice
produced in the state is quite better than other.
Akosu stressed that current local rice production is rising in
the state following the massive involvement of farmers in growing the crop,
especially, as there are ready markets for the produce.
Our correspondent who visited rice producing and processing
areas such as, Wadata in Makurdi, Daudu in Guma and Wurukum rice mills observed
massive rice being processed by both farmers who brought their paddy for sales
and millers doing their job to bring forth the finest of the rice for consumers
delight
In Kaduna, the State Chairman of Rice Farmer Association of
Nigeria (RIFAN), Muhammad Umar Nungu, said that Rice farmers across the 23 LGAs
in Kaduna has reached about 85 percent production capacity out of the expected
target despite the fact that some parts of the producing areas in the state are
affected by severe crisis.
In Sokoto state, before the FG’s interventions, farmers across
Sokoto state could not produce above 50,000 tonnes of local variety.
Alhaji Salihu Ibrahim, chairman of RIFAN disclosed that the
support was enjoyed by 33,000 farmers during the wet season and 10,000 for dry
season which allowed production capacity to reach 175,000 metric tonnes adding
that Attajiri Mill, KK polish local variety to a level that matches all
attribute of foreign rice.”
The state has over 120,000 registered members with major
producing communities in Goronyo, Wurno, Kebbe, Silame, Sabon Birni, Tambuwakl,
and Wamakko.
Our correspondents in Edo and Kogi states report that there has
been a significant increase in rice production activities despite the input
challenges bedeviling the industry in some places-some like Kaduna are ridden
with conflicts.
In Anambra state, the chairman of JOSAN Integrated Rice Mills
and Farms, Chief Oliver Okeke, has commended the Anambra Government for the
successful inauguration of the JOSAN Rice Mills, with about 10,000 farmers.
Okeke said in Abuja that the resuscitation of the JOSAN Giant Mill,
formerly Omor Rice Mill, meant that the country would soon bounce back as the
largest rice mill in West Africa.
Consumers’ taste, preference, a
huge problem
Although this investigation has found a huge increase in rice
production across all the belts, there are factors that threatening the
survival of the local brands.
Many people across the market seem to prefer the
“better-polished” imported rice for two reasons: its cleaner appearance, the
price, which in some case is even lower than the locally produced ones.
“Since the prices are almost the same or lower, people will
naturally buy the foreign ones because even in the cooking, some of the local
rice melts and gums together which is why I prefer the foreign rice which has
better quality,” a buyer, Mrs Emmanuella Emeka, told Daily Trust in Wuse market
in Abuja and many shared her opinion.
This is a factor that shapes the performance of the foreign rice
people like Mr. Jonathan Emeka who sells local brands wants the government to
step up more campaign against foreign rice.
But Mrs Veronica Aremu, a resident of Ita-Amadu area of Ilorin
told Daily Trust that there is no much difference between the price of local
rice and the foreign ones. ‘’So instead of buying the local rice that usually
melts during cooking, I will rather add the little money and get the foreign
one that will rise with good quality,’’ she added.
She said in many rice markets in Ilorin, the common brand of
rice you can find are Pearl, Falcon, Royal Stallion, Tomato Aroso, Thai Caprice
and Moto, which are mainly foreign rice and are sold between N15,500 to N17,000
per 50kg compare to the local rice like Mama Gold and Umza which are sold close
to N16,000 too.
A notable farmer at Lafiagi, one of the main rice producing
communities in Kwara State, Abdullahi Ndako, attributed the differences in the
quality to the poor milling process by the local millers while activities of
the smugglers are crashing the prices of foreign rice at the detriment of the
local ones.
A seller at the rice market in Daleko, Mushin, Lagos, simply
identified as Mum Abdullah, said there was a very low quantity of local rice in
the market.
She noted that only a few people have local rice, the majority
of the market men and women depend on foreign rice.
She also listed Pearl, Falcon, Royal Stallion, Tomato Aroso,
Thai Caprice and Moto, Tripple Seven and Oriba as common rice brand at the
market, which according to her are foreign brands.
Our correspondent in Lagos reports that the Lagos State
government local rice ‘Lake rice’, is sold only at a few designated locations
and is not available all year round.
The way out for the local brands
These findings demonstrate that the federal government needs to
deconstruct Nigerians’ perceptions of the rice produce locally. It would not be
out-of-place if a subsidy is placed on the final product in the market to
attract first choice preference.
Struggling is killing the millers, the farmers and as well
denying the government of the huge money it can generate if the product comes
through the normal seaports.
The fact that the smuggling still thrives massively across the
country’s land borders, the customs and other sister agencies needs to
re-strategize to protect the farmers and the millers.
In the opinion of Mr Babatunde Ajibola, Head, Media and
Communications, Elephant Group Plc, investors in rice business including agro
companies and farmers can only survive if government addresses the issue of
illegal rice smuggling.
Mr. Babatunde Olajire, an agric economist, said apart from
checking the activities of the smuglers, the federal government can grant rice
producers a kind of subsidy or better still a kind of tax waivers to some of
millers in order to reduce the price of the local rice.
‘’If the price is cut down, local rice will be able to compete
favorably with the smuggled rice in the market and this will lead to more
production. Also, the waivers or the subsidy will encourage more millers into
the production and this will mean more employment for the people,’’ he said.
Mr. Olajire, who spoke with one of reporters on phone from
Ibadan, said with such policy more farmers will embrace rice farming knowing
fully that there are enough millers to off take the paddy rice from them.
PHL
RICE IMPORTS TO HIT 2.6 MMT–U.S.D.A.
- BusinessMirror
- By Jasper Emmanuel Y.
Arcalas @jearcalas
