• Thursday, June 13, 2024
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Ellah Lakes, IITA mull N360bn Soybean Market

Ellah Lakes says to conclude special equity placement by Q1

Ellah Lakes Plc has announced that its subsidiary, Adani Staple Crop Processing Zone Food Company Limited and International Institute for Tropical Agriculture (IITA) are set to tap into N360billion soybean market value.

The Head of Administration, Ellah Lakes, Modupe Boardman-Ejikeme in a statement said the seed production and technical support agreement between the two firms are based on a seed multiplication program which in the first phase, involves the production of high-yielding soybean seed varieties on five hectares of land located in IITA Ibadan, Oyo State and subsequently, on 500 hectares of land located in Adani, Enugu State.

According to her, the demand for soybean in Nigeria is estimated to be in excess of 1.2 million metric tons per annum, which is a market value of over N360 billion or approximately $780 million.

Speaking on the development, the Chief Executive Officer, Chuka Mordi in a statement said, “This is a symbolic and significant milestone on our company’s strategic path to build Staple Crop Processing Zones across the country.

“Adani remains our flagship site and under the supervision of the IITA, we expect to accelerate progress in Enugu State, during the course of 2023.”

Boardman-Ejikeme further explained that IITA brings to this endeavour with Ellah lakes, its expertise in the production and supply of high-quality breeder and foundation seedlings to private sector seed producers.

According to her “The partnership agreement between both companies will facilitate the production of premium quality soybean seedlings for cultivation at Adani SCPZ in Enugu State with IITA providing all the technical support required to produce the seedlings for the company.

“This improved variety of breeder seeds is expected to yield 2.5 metric tons of quality soybean per hectare, 150per cent higher than the Nigerian national average of 1.0 metric tons per hectare and at par with output in South American countries such as Brazil and Argentina.

“Soybean is an important source of plant-based protein that contains dietary fiber, vitamins and minerals. Soybean consists of 20per cent oil, making it an important crop for producing edible oil. A by-product from the oil production, soymeal, is used as a high-protein animal feed in the poultry and aquaculture industries.

“Additionally, soybean from Nigeria has huge export potential because Nigerian Soyabean is Non-Genetically Modified, it has a wider range of applications including as input into infant cereals and textured vegetable protein – which is often used as meat analogue or meat extender.

“With its partnership with IITA, Adani SCPZ will be able to significantly boost productivity at its 3,700 hectare farm in Adani, Enugu State, and will be on track to achieving a target output of 7,500 metric tons of soybean per annum upon full cultivation of the property.

“It also marks an important milestone on the company’s strategic path to build Staple Crop Processing Zones across the country, with Adani being the flagship site.”