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Nairaland Forum / Nairaland / General / Agriculture / Imports, Low Prices Hurt Maize Farmers (4859 Views)
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Imports, Low Prices Hurt Maize Farmers by JosEast(m): 8:45am On Jul 05, 2019 |
Current market price can’t sustain production, experts say Crisis looms in the maize production line as local farmers grapple with the continued fall in the price of the produce across the nation’s markets, Daily Trust investigations have shown. The situation is being compounded by the unabated importation of maize despite its being locally produced with surplus. In 2017, some multinational agro-companies were given temporary waivers to import maize in order to bridge the gap in poultry feeds production.Though, government sources said the waiver only covers the period of the feed crisis, the importers are still doing brisk business at the expense of local producers. Watchers in the sector believe that because of the powerful nature of the importers, they have continued the importation un-checked, which is forcing down the price of maize as well as causing glut in the local market. “These people, mostly multinational agro-companies, are so powerful. They operate like cabal and they can virtually get what they want from the government even if it is going to affect locals, who only live on what they get from their farms,’’ an agriculturist, Mr. John Oyebode, told Daily Trust on phone Tuesday night. bleeding because of their inability to find good prices for their produce, the waivers granted to some companies to bring in thousands of metric tonnes remains active. The National President of Maize Farmers Association of Nigeria (MAAN), Alhaji Bello Abubakar Funtua, had observed that the modest contributions of maize farmers, if complemented by other large-scale maize users, will comfortably create more than one million on-and-off-farm employment in the maize sector alone. He said importation of maize in any form is counterproductive to agricultural development and should be discouraged in its entirety. Another maize farmer, Pastor Tunji Adenola, who is a former national president of the association, described importation as economic sabotage coordinated by enemies of Nigeria. “We are organized in such a way that whatever quantity of maize someone needs, we get it for them. Why are they interested in importation when we have this produce here?” he queried. Maize everywhere with no buyers Funtua raised the alarm that there is glut of maize in the market with farmers even begging to sell what they have at the current price without buyers. He said maize production has increased from 15 million metric tonnes in 2015 to 20 million metric tonnes in 2018, adding that the required quantity of maize by all processors in Nigeria was eight million tonnes. A maize farmer, James Kolo, also expressed worry that for some time now, farmers have faced a serious challenge because when they produce maize, the poultry, and fish farmers, including the breweries complained that our maize had a high concentration of aflatoxins, which affect their farms. “As I’m speaking with you, we have on ground – from last year’s Anchor Borrower the programme, over 10,000 metric tonnes of maize that have been returned as payment by farmers but we have been unable to sell it,” he stated. Also speaking recently in Abuja on the subject, the Managing Director, Bank of Agriculture, Mr Kabiru Mohammed, said the bank’s strategic cooperation with maize farmers resulted in massive production. “As I’m talking to you now, there is a glut in the market on maize because so much has been produced,’’ he said. Why the current price can’t sustain maize production A look at the cost of production per hectare in Nigeria shows that there are very little farmers can make under the current price regime. An agronomist, Shehu Arowolo, said for a maize farmer to record gain, the price of 100kg bag of maize must be from N10,000 and above, insisting that no meaningful gain can be recorded under the current price of between N7,500 and N8000 depending on the market. He gave an estimated cost of production per hectare to be around N314,000 which averagely can give 40 bags of maize or even less. In the breakdown, he said the cost of land preparation including plough, harrow and ridges can cost N100,000, seeds both hybrids and others- N10,000, Agro chemicals-N26,000, Labour involving planting, thrashing and bagging-N100,000 and transportation-N18,000. The agronomist, who observed that adequate fertiliser is required for successful maize farming, said an hectare would require about eight bags of NPK fertiliser, which go for N9,000 per bag in the open market and two Urea bags of fertiliser to topdress after four weeks and it costs N7,000 per bag. He said the total amount needed for fertiliser would be around N100,000. Mr Arowolo said if that hectare gives about 40 bags, which is not likely, the farmer will sell them at N320,000 base at the current market price of N8,000 per bag. The agronomist said it was discouraging for farmer to get N320,00 from an hectare of farm he spends about N314,000 on. He said all things being equal, from the estimate, the farmer would only make N6,000 profit throughout the whole year. “How do you expect such farmer to remain in production when there are other crops he can grow and reap more? That is the challenge in the maize subsector today and no one is talking,’’ he said. The National President of Maize Farmers Association of Nigeria (MAAN), Alhaji Bello Abubakar Funtua, also believes that the current market price of maize in the market can’t sustain production. “Presently, the price of maize is not more than N80,000 per tonne and even far less in some areas. At N80,000 per tonne it can be obtained in markets in South-South, South-West or South-East….in the northern region it is less than that,” Funtua stated. Last year, it cost more than N120, 000 in some places but this year, there is a sharp drop and the gap is widening as the prices are dropping even further to N7,500 – N 7,000 per 100kg bag. “The farmers are begging for at least N10,000 per 100kg to enable them go back to production but that plea might not see the light of day because of the waiver given to some companies to import, coupled with the country’s weak strategic grains reserve system,’’ he said. The ways out Experts believe that for the government to address the problem, the waivers approved for some people to import maize must be revoked to give room for local patronage. An Agronomist, Mr Shehu Arowolo, said thousands of local maize farmers must be protected to guarantee self-sufficiency in maize production. He also called for the strengthening of the Nigeria Commodity Exchange on where the farmers can sell their grains with minimum price tag. The Managing Director, Bank of Agriculture, Mr Kabiru Mohammed, had also called on government to come to the rescue of the farmers through its strategic reserves programme that is being carried out on a yearly basis. “The Federal Government should, as a matter of urgency, give out contract for the supply of such grains to the farmers. When that is done, farmers will have the market for their goods and they will be encouraged to do more,” the MD said. Read more: https://www.dailytrust.com.ng/imports-low-prices-hurt-maize-farmers.html
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Re: Imports, Low Prices Hurt Maize Farmers by Carlyscales: 9:41am On Jul 05, 2019 |
Clueless leaders that kept pumping much money to a section of the country for agriculture, due to nepotistic sentiments. Without any proper agricultural economic blueprint to harness n access raw materials market globally. Without proper regulations on raw materials n food importation. Today everyone is farming in d north n producing grains. Hence the glot and a bag of maize selling as low as 4k n beans 8k. So the circle of poverty continues 7 Likes
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Re: Imports, Low Prices Hurt Maize Farmers by Crystalworld(m): 9:43am On Jul 05, 2019 |
Its over 4 years Buhari said Local Rice is booming in Nigeria, they banned foreign rice, I don’t know if they sell this local rice when everyone is sleeping? ![]() The problem in Nigeria can be resolved within two years. All we need is a good leadership! With this present government nothing good can be archived. 3 Likes
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Re: Imports, Low Prices Hurt Maize Farmers by omohayek: 9:51am On Jul 05, 2019 |
Why does Nigerian journalism have such a horrible bias in favor of producers? Imports may hurt the less efficient farmers who can't compete on price or quality, but any harm they impose for farmers is more than outweighed by the benefits they bring to consumers in the form of cheaper and higher-quality produce, a fact one learns in any beginner economics class, even in Nigerian secondary schools - I know because that's where I learned it myself. The idea that economic development is based on doing everything within one's own borders is utterly ridiculous, making as much sense as suggesting we would all be better off if we individually made our own clothes and grew our own food in little backyard plots, instead of getting highly-skilled jobs and simply buying what we need in supermarkets and clothing stores. It's time Nigeria did away with all this import-restriction nonsense and opted instead for creating an enabling environment for businesses to thrive on their own merits - one with low corruption, reasonable taxes, regulatory clarity and few bureaucratic hurdles. Import controls to benefit favored groups work against all of these goals. 10 Likes 5 Shares |
Re: Imports, Low Prices Hurt Maize Farmers by chinedu234(m): 9:57am On Jul 05, 2019 |
When thoughtless people take control,that is the result gotten. The bazaar declared by this administration in the name of promoting agriculture will soon hurt very badly. The nearest future for Nigeria is the worst type of poverty and possibly crisis. What the people here seem not to understand is that economy is the foundation of the society. Since this government lack that singular capacity,there is nothing to fall back on. No type of media propaganda can erase this reality. I am really afraid for Nigeria. 2 Likes |
Re: Imports, Low Prices Hurt Maize Farmers by awoo47: 10:04am On Jul 05, 2019 |
omohayek:im surprised ppl are saying shit why can't we produce cheaper goods with our large population wen i can import cheaper nd high quality maize, while shld i go fr local ones dat keeps increasing yearly 3 Likes 2 Shares |
Re: Imports, Low Prices Hurt Maize Farmers by awoo47: 10:07am On Jul 05, 2019 |
Carlyscales:where in 21st century we can't be having subsistence farmers farming shld be merchandize nd a business we're 200mil fr heck sake 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by tonyimadu: 10:10am On Jul 05, 2019 |
From the US to Europe and the rest of the world, governments protect their farmers. Protecting the farmers over importers ensures that the nation's food security is maintained. It's sensible to grow your nations agriculture than improving that of another country. The ministries involved should work more intelligently in protecting the farmers and boosting growth 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by urahara(m): 10:11am On Jul 05, 2019 |
Nigeria and anti- trade be like 5 and 6. We hate trade so much and yet we still joined ecowas, I don't understand . 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by urahara(m): 10:13am On Jul 05, 2019 |
tonyimadu: For bleeps sake , things don't work like that , they tried that with the rice and we all know how things turned out. 2 Likes |
Re: Imports, Low Prices Hurt Maize Farmers by Realonekingsley(m): 10:24am On Jul 05, 2019 |
There is no country that depends solely on manufacturing and production, importation is also needed to create a competitive edge in price and quality. |
Re: Imports, Low Prices Hurt Maize Farmers by Nobody: 10:25am On Jul 05, 2019 |
All this is happening because as someone already mentioned up there, Nigeria lacks any agricultural blueprint. And the Farmer Moni programme by the government just made that worse. It's like the farmers just take loans to plant whatever they know how to plant. Corn is one of the easiest and cheapest crop to plant and harvest, so they just turned to it. The fact that their harvest is even more expensive than importations is even concerning. Damn! It should be the other way round. That loan is supposed to be a part of a more robust economic policy and industrialization that will see farmers plant different food and cash crops. Instead, the government is more concerned with getting cheap political points. The farmers it claims it's helping will end up suffering for it. The same thing also happens with tomatoes, pepper and other crops too. This just happened to be the season for corn. |
Re: Imports, Low Prices Hurt Maize Farmers by stonemasonn: 10:41am On Jul 05, 2019 |
I’m shocked Some Nairalanders are in support of maize importation. The rich and highly connected are getting richer while the rest are getting poorer, and you call it competition. SMH 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by yemre: 11:02am On Jul 05, 2019 |
I'm very surprised at this particular post. Why is it that we can not encourage efficient local production that will compete favourably in quality and prices with foreign goods? That step alone is enough to discourage importation. Importers in the first place were licensed as a result of production deficit which has made the product really expensive with its attendant multiplier effects on the prices of other commodities in that line (eggs & other related products incl). Now, farmers are crying again that importation has brought down the costs. If local production will continue to result in high prices of goods in this country (as the case with rice) even after the cost of importation incurred by the importers, I think it's better we scrap local production and encourage importation for the benefits of the citizenry. My honest opinion. 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by grandstar(m): 11:02am On Jul 05, 2019 |
Carlyscales: |
Re: Imports, Low Prices Hurt Maize Farmers by haryomikun(m): 11:20am On Jul 05, 2019 |
omohayek:Your first paragraph made sense. The second,,,, not as much. Import controls help economic growth in particular (economic development). It helps with balance of payment deficit, something Nigeria and other West African countries are really suffering from. Import controls don't serve to make citizens mean produce stuff in their own backyards. That's an exaggeration. The more there are firms available for exports in Nigeria, the more unemployment drops. GDP also increases, balance of payment shifts towards equilibrium, terms of trade possibly improve and so on. |
Re: Imports, Low Prices Hurt Maize Farmers by haryomikun(m): 11:28am On Jul 05, 2019 |
yemre:A sensible opinion made. However, the farmers may not be at fault concerning the price of their commodities. What if the cost of production is higher than the revenue they gain when selling these products at the reduced costs? Foreign companies have the advantage of economies of scale. A country with farmers that still doesn't have widespread support for mechanized agriculture will suffer from low production, hence the increased cost of production and increased cost of goods. The high prices of these farmers' goods may seem harmful to Nigerian consumers at first, but with proper support from the government, and an increase in farmers, the prices will drop. Then unemployment will be slowly eroded. |
Re: Imports, Low Prices Hurt Maize Farmers by mencer(m): 11:52am On Jul 05, 2019 |
Imported products are cheaper in Nigeria.. We have a terrible problem. |
Re: Imports, Low Prices Hurt Maize Farmers by Trottle: 1:10pm On Jul 05, 2019 |
It is not enough that Nigeria ban food importation without improving the efficiency of local production and it is also not acceptable that local products are much higher than foreign products. This will almost always be the end result. The rice experiment failed being that the government banned rice, and allowed the farmers to set the price of the local rice at whatever ridiculous rate they all this they did without massively scaling up production and providing outlets for processing of excesses. The consequence of that too was heavy smuggling of foreign rice from nearly all borders of the country. If the equation is not properly balanced, where efficiency is encouraged, more incentives are given to the farmers and previous incentives are worked on,and importantly consumers get to buy it at cost-effecctive prices then importation/smuggling of agro products will continue unabated. Well, as usual, threads like this hardly reaches 3 pages. |
Re: Imports, Low Prices Hurt Maize Farmers by oz4real83(m): 1:22pm On Jul 05, 2019 |
Carlyscales:where is the glut? Do u know how expensive maize is? A very small cob in Benin city is N50. We don't produce enough. The first evidence of excess supply is price drop but it is even more expensive now than last and previous years. Poor distribution is also a factor though. |
Re: Imports, Low Prices Hurt Maize Farmers by omohayek: 1:35pm On Jul 05, 2019 |
haryomikun:Your claims about import controls helping growth fly in the face of decades of econometric research, not to speak of Nigeria’s own experience. Didn’t you type your response on an imported phone, and send it over a network built with imported telecoms equipment, which was paid for with imported capital? How likely is it you could have done the same in the “good old days” when foreign investment was barred and NITEL ran the show? If you’re going to try to sell me your mercantilist reasoning, you’re going to have to provide hard evidence in support of your claims, in the form of peer-reviewed research or at minimum publications by relevant organisations of high repute for their economic analysis. Anything else is just so much hot air that only amounts to “it’s true because I say so”. 2 Likes 1 Share |
Re: Imports, Low Prices Hurt Maize Farmers by urahara(m): 1:40pm On Jul 05, 2019 |
haryomikun: See this nigga , since when did Nigeria start suffering b.o.p deficit , we export more than we import bra. |
Re: Imports, Low Prices Hurt Maize Farmers by urahara(m): 1:45pm On Jul 05, 2019 |
haryomikun: If every country used import controls , who then would we export to ? |
Re: Imports, Low Prices Hurt Maize Farmers by haryomikun(m): 2:58pm On Jul 05, 2019 |
urahara:Every country has import controls. EVERY. Even long standing trading partners like China and the US have always used import controls. Import tariffs(import fees) and import quotas(limiting the number of goods that can be imported) are examples of these import controls. What you're thinking is import controls like the import quota encompasses every group of commodities. It doesn't work that way. You have to effect these quotas on a particular products that are causing balance of payment deficit (what goods cause your imports and exports to be imbalanced). Every country in West Africa is negatively affected by import quotas imposed by the EU. Meanwhile they want to export all they can to us, thereby causing negative terms of trade for West African countries. |
Re: Imports, Low Prices Hurt Maize Farmers by haryomikun(m): 3:16pm On Jul 05, 2019 |
omohayek:My good sir, I think you misunderstand the meaning of 'import controls'. What it means isn't a ban of imported goods. It simply means restrictions on the number of goods imported either by using monetary policy in the form of import tariffs or import quotas. Every country uses import controls, except they're in trading blocs like the EU, which encourage free trade. The custom duty you pay on your imported vehicles is an example of import control. If I had to explain how import controls help an economy, I'd type for a long while. I'll find sources now that prove import controls help an economy grow. https://www.investopedia.com/ask/answers/041715/what-are-common-reasons-governments-implement-tariffs.asp You can read this in your free time. |
Re: Imports, Low Prices Hurt Maize Farmers by haryomikun(m): 3:23pm On Jul 05, 2019 |
urahara:I admit I might be wrong on that, sir. I tried to find data on Nigeria's current BOP but couldn't. My conclusion that Nigeria was suffering from BOP deficit was based on a guess |
Re: Imports, Low Prices Hurt Maize Farmers by omohayek: 4:22pm On Jul 05, 2019 |
haryomikun:I'll give you credit for trying, but what I had in mind was something a lot more meaty than an introductory article in Investopedia (which is just a specialized version of Wikipedia, freely editable by any anonymous individual). The following are the kinds of sources that treat the issue in a rigorous manner; needless to say, the evidence going very much against the naive thinking you've laid out above. Frankel, Romer - Does Trade Cause Growth? Acemoglu - Introduction to Economic Growth 1 Like |
Re: Imports, Low Prices Hurt Maize Farmers by Carlyscales: 5:23pm On Jul 05, 2019 |
oz4real83: That's benin guy, in the north were i get my grains from is a different story. By default, glut is verified areas closest to the farmers. We are saying thes ame thing. The leaders pumping money to the northern farmers forgot to make arrangement to distribute d produce. So?? |
Re: Imports, Low Prices Hurt Maize Farmers by jam04(m): 6:06pm On Jul 05, 2019 |
The glut is bad and this started in 2018 |
Re: Imports, Low Prices Hurt Maize Farmers by Ayodehji202: 8:05pm On Jul 05, 2019 |
meanwhile if you need maize in tons in any south western state contact me |
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