Making rice agribusiness work in sub-humid tropics of Nigeria: The commodity value chain development approach

Nigeria is the largest rice producing country in West Africa, but is also one of the largest importers of rice in the World. Rice production in the country is characterized by a supply-driven production system that is rooted in subsistence model of farming. A commodity value chain development approach was recently put into use in the past two years to transform the rice agribusiness sub sector to satisfy consumer preferences in Nigeria. The model has been. The value chain approach is built on the efficiency of private-led business development encapsulated in a market-led model that drives input linkages and best agronomic practices. The model involves the production of high premium rice paddy, willingness of major input dealers to provide agro-chemicals to the farmers at affordable prices, use of private sector-led extension delivery system, project responsiveness to emerging opportunities including the establishment of spray-men, and appropriate use of improved agronomic practices. All inclusive participatory methods in project implementation further shaped the success of the intervention. Three major rice processing firms which provided a sustainable market outlet for the farm produce from a total of 4000 farmers were involved in the process. Investigations indicate that about 53% of the farmers were formed into farmers' cooperative groups and linked to a credit institution. The farmers (69%) adopted the package of practices on their farms and achieved an average yield of 4.9 tons per hectare, as against national productivity average of 1.7 tons/ha. Female farmers (71.4%) produced an average of 6.2 tons/ha. Two major rice processing firms generated a total gross revenue of USD1,017,162 while 34 newly established processing enterprises generated income valued at USD855,843 in 2006. Over 300 young people were gainfully employed as agrochemical sprayers. This paper therefore shows that a market-led demand-driven agricultural development approach by high value commodities can lead to efficiency in the agricultural sector and generate the employment for idle youths.