Investments in the food, beverage and tobacco group rose to N92.67 billion in the first half of 2014, according to latest data from the Manufacturers Association of Nigeria (MAN).
This represents 86 percent spike from N49.95 billion recorded in the second half of 2013.
“As usual, food, beverages and tobacco group took about 19 percent of the total share, with the group’s activities highly driven by the beer and flour mills as well as the confectionery sub-sectors,” says MAN, in the data.
The food, beverage and tobacco group comprises industries such as beer, starch and other miscellaneous food products, flavouring, soft drinks and carbonated water as well as flour and grain milling. Others are meat and fish, tea, coffee and other beverages, dairy products, fruit juice, tobacco, biscuits and bakery products, sugar, distillery and blending of spirit, cocoa, chocolate, confectionery, vegetable and edible oil as well as poultry group.
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The food, beverage and tobacco group also had a good showing in terms of output as value of goods within the period under review hit N83 billion, from N64.4 billion recorded in the corresponding period of 2013 (H1 2013). But this represents a slight decline when compared with N84 billion reported in H2 2013.
In terms of local input preference, the group sourced 62.4 percent of raw materials locally and 33.6 percent from abroad within the period under review.
J.M. Babajide, lecturer of food science and technology at the University of Agriculture, Abeokuta, says local manufacturers in this sector source four different kinds of raw materials, which include unprocessed agricultural products, semi-processed agricultural products, finished products and by-products or effluent.
According to her, unprocessed agricultural products include cassava, yam, grains, fruits and vegetables; while semi-processed products occur in the form of dry-cocoa beans, dry sugar, pasteurised milk, grain flour, cocoa mass and malted grains, among others. On the other hand, finished products include refined granulated sugar, starch, ascorbic acid and flavour, among others, whereas bye-product or effluent of an industry can serve as input for another industry – molasses and biscuit dust, among others.
ODINAKA ANUDU
