Expert calls for large-scale, private commercial agribusinesses
Dr. Adetunji Oredipe, Senior Agriculture Economist at the World Bank, has emphasized the urgent need for a comprehensive approach to counter Nigeria’s surging food prices. He advocates for the development and immediate implementation of a National Food Prices Management Plan (NFPMP) over traditional price control methods. This plan would preempt and mitigate food crises by fostering collaboration between the government, private sector, and development partners.
Delivering a lecture at the Faculty of Agriculture, Obafemi Awolowo University, Ile-Ife, Dr. Oredipe highlighted that large-scale commercial agriculture, akin to successful models in Latin America, is pivotal to stabilizing food prices and ensuring food security. He stressed that while small-scale farming plays a vital role, it cannot unlock Nigeria’s economic potential at scale, even with advanced technologies. Instead, smallholders should integrate into larger nuclear farms, forming part of extensive commercial farming ecosystems.
To support large-scale agriculture, Dr. Oredipe outlined the prerequisites, including secure land tenure, infrastructure development, affordable energy, and robust financial systems. He argued for linking food production initiatives with strategic commercial food reserves, targeting staple crops like maize, rice, and soybeans, to moderate inflation and curb import dependency.
The economist also advocated for measures such as urban agriculture, protecting agricultural land from non-farm use, value addition along the supply chain, and creating a sustainable food bank system. He urged the Nigerian government to foster youth involvement in agriculture through an improved business environment while maintaining a balanced approach to importation and local production.
Source- The Nation
Expert Review for Agri-Food Stakeholders
Dr. Oredipe’s recommendations present a robust framework for addressing Nigeria’s persistent food price crisis, with significant implications for stakeholders in the agri-food sector:
Adopting Large-Scale Commercial Agriculture
Transitioning towards large-scale, mechanized farming can improve productivity and achieve economies of scale. However, stakeholders must address challenges like ecological sustainability and resource management to prevent potential backlash.
Smallholders remain critical to the food system; integrating them as nuclear farms into larger enterprises will preserve their role while enhancing their productivity and market access.
Strategic Food Price Management
The proposed National Food Prices Management Plan ensures proactive responses to market volatility. Stakeholders, including private processors and aggregators, could align with this strategy to stabilize supply chains and reduce market risks.
Connecting food production with commercial food reserves can ensure buffer stock availability, benefitting both producers and processors while moderating consumer prices.
Infrastructure and Policy Priorities
Investments in infrastructure (transport, storage, irrigation) and finance (credit access, insurance) are vital. Stakeholders must advocate for policies enabling land security and financial inclusion to support scalability.
Value Chain Integration
Enhancing backward integration and investing in processing facilities will reduce post-harvest losses and improve product availability year-round. Stakeholders in processing and agribusiness must collaborate to enhance value addition.
Youth and Urban Agriculture
Encouraging youth participation through skill-building, incentives, and financing will rejuvenate the workforce and drive innovation in agriculture. Urban agriculture, although often overlooked, offers a sustainable path for improving food self-sufficiency in cities.
Call to Action for Stakeholders;
- Governments: Prioritize regulatory reforms to support land tenure security and private-sector investments in agriculture.
- Private Sector: Leverage the proposed policy framework to expand investments in mechanized farming, storage, and processing.
- Development Partners: Provide technical and financial support for implementing the NFPMP and scaling up innovative agricultural models.
- Farmers’ Associations: Advocate for equitable inclusion of smallholders in large-scale farming projects.
By aligning with these strategic insights, stakeholders can collectively mitigate food crises and unlock Nigeria’s vast agricultural potential.
