Update1: Nigeria targets $5bn in global yam export market

Nigeria’s economic diversification efforts in expanding foreign exchange earnings through sectors such as agriculture, and away from crude oil, which currently accounts for 90 percent of revenue is set to get a boost through yam exports.

If all goes according to plan, Nigeria will today export a consignment of 72 metric tons of yam to Europe and the US, thereby setting the stage for the country’s return to the global yam value chain as a dominant player in the world market, currently dominated by West African neighbour, Ghana.
A statement provided to BusinessDay by the ministry of agriculture, indicates the country hopes to rake in $5 billion annually, in the near future, from the export of yams. Calculating Nigeria’s 2014 yam production of 45 million metric tonnes, at a conservative estimate of $300 per tonne, gives a total value of $13.5 billion for the raw production.
“Nigeria’s potential in yam value chain still remains to be unlocked, offering enormous opportunities in the future. But this cannot be turned to wealth until business constraints are dealt with, paving way for generation of reliable data to inform appropriate policy interventions” said Audu Ogbeh, Minister for agriculture and rural development.
Nigeria is regarded as the largest producer of yams, with production averaging 70 percent of the world production. Data from the Food and Agriculture Organisation (FAO) shows that Nigeria produced 45 million metric tonnes (MMT) of Yam in 2014, almost 10 MMT growth from the 35.6 million tonnes produced the previous year, 2013.
Audu Ogbeh, in a June 26 tweet on Nigeria’s comparative advantage in production, wrote that “If nearby Ghana that does not grow anywhere near one tenth of the yams we grow, is targeting $4bn in yam exports, we can do better.”
While Nigeria is the world’s largest producer of yam, Ghana is the leading exporter of of the crop globally. Whereas FAO data shows that Ghana produced 7.1 million metric tonnes of yam in 2014, Nigeria produced almost seven-folds with 45 million metric tonnes.
Kabiru Ibrahim, president, All Farmers Association of Nigeria (AFAN) in a phone interview, described the yam exports initiative as a welcome development, saying “if we can export anything, it is good for Nigeria. “If you go to North London, you will buy ‘poundo yam flour’ that was quietly exported from Nigeria and not gazetted. It is now that government has gotten involved, that there will be a consignment from Nigeria, which will be identified as such,” Ibrahim said.
Ogbeh had also tweeted that, “The export of Nigerian yams is not new. It has just been going on through other ports and largely unaccounted for, due to sharp practices.” This corroborates Ibrahim’s assertion that “Previously, people in Ghana buy our yams, convert into powder and export to England and other places. So, if Nigerians can go into this business directly, it means we will have more foreign exchange.”
This yam export programme has however raised concerns among Nigerians, with many taking to social media to express their fears over the prices of yam tubers now considered expensive and going out of the reach of many Nigerians. Attempting to allay some these fears, Ogbeh said “There is no need to panic about the non-availability of yams for Nigerians to consume. There has never been a shortage of yams in Nigeria.”
Ogbeh also noted that “Over 30% of the yams we produce in Nigeria rot away. Export therefore provides opportunities to earn foreign exchange and produce more yams.”
Nevertheless, experts say there is a need to boost the volume of yam production in the country, to on one the hand, cushion any possible shortfalls in domestic supply, while also improving export potentials.
“We should increase production and pay more attention to farmers. They should be assisted with seedlings, extension service, teach them on good practices, and ensure that there is good storage, to avoid spoilage of yams,” Ibrahim, AFAN’s president told BusinessDay.
According to him “many western countries look forward to purchasing African yams and now, Nigeria can fulfil that market.”

 

CALEB OJEWALE