Lagos targets 10,000 jobs in agro value-chain business
Lagos State has set a target to create 10,000 jobs in the agro-business value chain, as it inaugurated two new Eko marts in Surulere and Ajah areas of the state. This is aimed at making agro produce available to the people at affordable rates.
Gbolahan Lawal, commissioner for agriculture and co-operatives, said at the inauguration that the government was interested in the agro value-chain business and planned to generate 10,000 jobs in the sector in order to boost agricultural productivity.
According to him, 40 percent of farm produce, especially vegetables harvested within the state are lost through post-harvest activities due to poor storage facilities, saying the loss has contributed to the huge gap between the farm-gate price and market price of produce without guarantee for quality.
“During the suppliers period, a lot of post-harvest losses occurred which could be as high as 60 percent for vegetables. Equally, a lot of people are involved in bringing the produce from the local producers in hinterland to the market in the urban centres, with each adding their profit margin to the products. Transportation difficulty has also contributed negatively to the landing price of agricultural products.
“The scenario above has contributed numerously to the huge gap between the farm gate price and market price of agricultural production in the state without guarantee for quality. The government with this initiative, “Eko Farmers Mart” has taken a bold step towards ensuring availability of wholesome agricultural products at affordable rates to its citizen.
“Clearly, the government resolves to achieve food security and safety needs with the cooperation of the citizens and corporate organizations,” he explained.
MIKE ABANG, Calabar
Lagos State has set a target to create 10,000 jobs in the agro-business value chain, as it inaugurated two new Eko marts in Surulere and Ajah areas of the state. This is aimed at making agro produce available to the people at affordable rates. Gbolahan Lawal, commissioner for agriculture and co-operatives, said at the inauguration that the government was interested in the agro value-chain business and planned to generate 10,000 jobs in the sector in order to boost agricultural productivity. According to him, 40 percent of farm produce, especially vegetables harvested within the state are lost through post-harvest activities due to poor storage facilities, saying the loss has contributed to the huge gap between the farm-gate price and market price of produce without guarantee for quality. “During the suppliers period, a lot of post-harvest losses occurred which could be as high as 60 percent for vegetables. Equally, a lot of people are involved in bringing the produce from the local producers in hinterland to the market in the urban centres, with each adding their profit margin to the products. Transportation difficulty has also contributed negatively to the landing price of agricultural products. “The scenario above has contributed numerously to the huge gap between the farm gate price and market price of agricultural production in the state without guarantee for quality. The government with this initiative, “Eko Farmers Mart” has taken a bold step towards ensuring availability of wholesome agricultural products at affordable rates to its citizen. “Clearly, the government resolves to achieve food security and safety needs with the cooperation of the citizens and corporate organizations,” he explained.  ...
I think, Agribusiness linkages such as the expansion of businesses of the agriculture and likewise other sectors and their chains start from the relationships involving contractual structures, alliances and associations (mainly implemented by the private sector) by long-term sustainable producers/suppliers in the agriculture and other sectors. This joint association of farmers, different exogenous agents and agro-industrial chains, may or may not include support from public policies.
It is feasible for associative organizations of small-scale producers/entrepreneurs to promote the development of linkages based on win-win situations. The main linkages can include associative organizations with producers, government, international cooperation, and not-for-profit and for-profit private enterprises. The objectives of the linkages are related to the technical development of the activities (technology transfer, training, and technical assistance), quality control, trade and market development, business management, and improving the living standards of families.
In general, linkages with government can satisfy the technical requirements. Linkages with international cooperation may target at promoting both production and families. Linkages with for-profit private enterprises shall emphasize trade and market development, such as quality; and those with not-for-profit private enterprises support development, business management and information management.
A major challenge faced by any effort to link rural areas with competitive market chains relates to quality standards. Food safety, for example, has become an important concern of today’s consumers. This global issue puts developing countries in a difficult situation, as they have to respond to this emerging requirement with standards for traceability and certification schemes that can ensure good manufacturing practices which are to be followed.
These new market requirements are an obstacle; but, they can also offer an opportunity for those who seek to enhance both production and product quality. Tracing the quality of a product as it journeys through the manufacturing process will definitely foster teamwork among market chain actors and enable them to identify and take advantage of both new and existing joint business opportunities.
Most R&D organizations agree that improved market access is crucial if the competitiveness of rural areas and its producers have to be enhanced. Promoting collaboration along the market chain, among different stakeholders, is a promising approach to: Increase efficiency in the market chain, by lowering the production and transaction costs which occur between the different market chain actors.
Although this will enhance the value of the products and services generated along a market chain, so justifying higher consumer sale prices. In this scenario, it is worthwhile to examine how value chain analysis (VCA) can, in a practical way, help the rural poor participate gainfully in local, regional and global trade. It can help us to realize why value chains have emerged as a helpful entry point for discussions on rural poverty.
Focusing on our scenario, let us visualize constraints faced by low-income participants in agriculture, while outlining a framework for how the rural poor can upgrade their position within viable value chains. It might pull us together to lessons learnt on using value chain analysis and develop it ef¬fectively as a tool to augment the incomes of poor people in rural areas.
I would like to observe that, VCA is more helpful than orthodox theory in explaining why the poor may face bar¬riers to trade and how to overcome these. This is because orthodox trade theory uses a series of empirically questionable assumptions to provide an overarching answer to the wrong question – the link between trade and economic growth, on the one hand, and poverty reduction, on the other, which has never been a central focus of trade theory.
The approach is rooted in the real world of production and exchange. It fo¬cuses much less on overreaching theory and unrealistic assumptions and more on a practical approach towards supporting specific target groups to access particu¬lar value chains. The methodology and framework are used by researchers, busi¬nesspeople and donors, with quite dif¬ferent goals: from increasing commercial profits to improving the competitiveness.
Stimulating positive market chain collaboration from the outside is a tricky issue. Market chain actors compete with regard to price and quality in their day-today business, which apparently inhibits the development of trust and concerted actions. In particular, it is important to distinguish whether the primary aim of an intervention is to reduce poverty or to stimulate growth in the local economy.
Whatever choices are made regarding the aim of the intervention, it should be accepted that, as with any sustainable private sector development project, the non-poor will necessary gain from the intervention as well as the resource poor.
Participation in markets does not, itself, provide for sustainable growth. The key goal is to locate rents in the chain that can be captured by poor people and that are unlikely to be eroded through times as a result of competition.
Upgrading the position of poor people in value chains on a sustainable basis is not easy. It requires the cooperation of many stakeholders in the chain, an inclusive policy process, which must include the lead firms, and a pragmatic and non-ideological approach towards value chain restructuring.
However, though they do have certain advantages, R&D organizations are challenged by the fact that they often have only a limited understanding of all the factors and interests affecting the various links in the market chain and the transactions which occur between them. Initially, facilitators from R&D organizations will likely lack insights into the different tricks of commercialization, and may feel insecure when facilitating interactions among “real life experts” who know the entire business inside out.
In recent years, Bangladesh has moved rapidly towards liberalizing trade, both regionally and internation¬ally. This has stimulated active debate on the merits of a more open trading regime. Getting lost in this polarized debate, how¬ever, is an understanding of the impact of changes in the trade regime on marginalized groups, particularly the rural poor. In this situation, in order to empower our market, chain actors should ensure that they develop ownership of the innovations generated.
In fine, I would like to sum up by saying that the role of the R&D organizations applying interventions should progressively shift from (1) leadership, towards (2) facilitation and finally (3) backstopping. However, this new and different role must be clearly defined in order to consolidate outcome with well-defined interventions, based on specific requests and needs of market chain actors who take the innovations forward.
Continuing support, for instance, might be important when small-scale producers should be trained and organized, to enable them to respond better to market opportunities identified through R&D. Also, further research might be required to remove bottlenecks in production, storage and processing, etc. However, in these follow-up activities the R&D organizations should be clear that it cannot play the role of the private sector. That is, they cannot get involved in marketing on their own and nor should they subsidize activities which are strictly commercial!