The role of the private sector in RIU Nigeria
Four private companies collaborated with RIU Nigeria in exploring market enterprise opportunities in agricultural input supply and advisory services related to RIU-assisted value chains. This means that the long-term sustainability of these interventions is looking very likely.
ProValue Associates Ltd coordinated fodder supply to designated grazing reserves in Northern Nigeria. The fodder consists of cowpea, soybean and groundnut hay generated by farmers affiliated with the Cowpea/Soybean Crop Livestock Integration Innovation Value Chain Platform.
The fodder supply opportunity developed primarily were a result of the BBSRC-CIDLID Tsetse and Trypanosomiasis Control Project (SOS Nigeria), a major animal health intervention in Nigeria. Making fodder readily available to livestock farmers at affordable prices and at designated grazing reserves during the dry season reduces the need for the herd owners to migrate across long distances, and thereby reduce the risk of exposing the herds to tsetse fly bites and infection or re-infection with trypanosomiasis.
Wetland Associates Nigeria Ltd, which specializes in the fabrication of agricultural technologies, produced and supplied 14 fodder compactors to selected groups of legume farmers and fodder marketers in Kaduna and Kano states. Self-employed young people were trained on how to use the compactors, and they are generating income for themselves from compacting and loading the fodder for suppliers. These activities are part of the test-run for the fodder supply chain being facilitated by RIU Nigeria, as a follow up to the initial successful trial conducted in Kano in July 2010.
So far, about 172 metric tonnes of compacted fodder has been procured and supplied to Ladduga, the Kachia Grazing Reserve in Kaduna State, where more than 25,000 Fulani livestock farmers live, which is also one of the sites for the SOS Nigeria.
This interface between the RIU-assisted cowpea value chain innovation platform and the BBSRC-CIDLID Tsetse Project was interesting though unexpected development. The spin-off enterprise activities started slowly but, being market-based, are likely to remain self-sustaining beyond the life-span of the RIU programme in Nigeria.
Compacted cowpea hay is much easier to store, transport and feed rations to the animals. The participating farmers, marketers and herdsmen are gradually adapting to the pricing of fodder according to weight, rather than visual impression. There is still a need to sensitize and train these partners on the advantages of using weight to determine feed rations as well as fodder prices.
To complement the dry fodder, RIU has worked with Feed Masters Ltd. The company produces animal feed and has already supplied three batches of feed concentrates to be combined with the dry fodder as fortified rations and supply a balanced diet for the animals.
Adamore Nigeria Ltd, a leading veterinary pharmaceutical distributor in Nigeria, has committed to the supply of vet drugs related to tsetse control and common animal diseases. ProValue Associates Ltd is setting up supply chain structures at the grazing reserve for warehousing and sale of the drugs, fodder and concentrates. A commission agent from the Fulani community has been employed by ProValue to perform these tasks, while the SOS Nigeria will employ, train and kit out six additional people from the community to undertake tsetse control spraying and minor vet services under the supervision of a qualified vet.
Banking sector
RIU Nigeria wanted to have banking partners at the heart of their innovation platforms as they knew that access to capital was one of the key input for the agricultural sector. Initially they talked to a number of banks but, one bank was clearly positioning itself to be the bank of choice for farmers and so Fidelity Bank joined the innovation platform.
At the RIU Nigeria learning event in November, the bank presented the range of products it can offer to the agricultural sector. Key to this was a decision-making regime for financial support clearly aligned with the agricultural calendar.
RIU Nigeria has since gone on to work with a second bank and this represents a major shift away for banks which have historically been risk-averse when it comes to loaning to agriculture.