Valency Agro Nigeria Limited is one of several organisations that have made substantial investments to support the Nigerian government’s efforts to address food insecurity. This is with the understanding that food insecurity with its implications is a serious concern affecting nations. Recently, FAO brought the issue of poverty and food insecurity to the fore when it marked World Food Day with the theme, “Right to foods for a better life and a better future.’’ In this report, BusinessDay’s Daniel Obi assesses the food insecurity scenario, how to fight it, and private sector efforts in addressing the challenge.
“Food insecurity has been a concern to international bodies, governments, and private organisations as they search for solutions.”
Eduma and his family live on the N70,000 minimum wage monthly. He can hardly fend for his family due to the excruciating cost of basic items. Still, Eduma gets calls daily and weekly from his relatives asking for financial assistance for food and other basic items.
Eduma recounts that “the situation is really troubling and worrisome. With my little salary, I still get requests for help.” This simply indicates the high level of poverty in the land. Eduma’s condition is pervasive across Africa and in many other countries.
Read also: Nigeria now 2nd among countries facing food insecurity in the world
Poverty level is high in Nigeria, with statistics recording that as of 2022, an estimated population of 88.4 million people in Nigeria out of about 210 million people lived in extreme poverty. This means that these numbers of people are deprived or lack essentials, including food.
Poverty and food insecurity are pressing issues the world is faced with today. Millions of the world population, many of them in Africa, go to bed hungry, which results in health issues and malnutrition.
Food insecurity has been a concern to international bodies, governments, and private organisations as they search for solutions. This becomes crucial as the World Bank recently said that it could take more than a century to eliminate poverty for nearly half of the world. This is startling but a call for urgent action.
According to the World Bank statement, the global goal of ending extreme poverty, defined as 2.15 dollars per person per day by 2030, is out of reach.
“Almost 700 million people, which accounts for 8.5 percent of the global population, live today on less than 2.15 dollars per day, with 7.3 percent of the population projected to be living in extreme poverty in 2030.”
The statement said extreme poverty remained concentrated in countries with historically low economic growth and fragility, many of which were in Sub-Saharan Africa.
The statement quoted Axel van Trotsenburg, World Bank Senior Managing Director, as saying, “After decades of progress, the world is experiencing serious setbacks in the fight against global poverty.
FAO campaign against food insecurity
Food and Agriculture Organisation (FAO), a specialised agency of the United Nations, is at the forefront of championing the fight against hunger.
Annually, precisely on October 16, every year, the international body marks World Food Day, WFD, designed to bring the world’s attention to the need to tackle food insecurity.
This year’s theme of WFD 2024 is “Right to food for a better life and a better future,” which is targeted at addressing poverty in many countries, including Eduma’s relatives’ challenges. Food is the third most basic human need after air and water. Everyone therefore should have the right to access sufficient food.
The UN bodies promote worldwide awareness of hunger and promote action for the future of food, people, and the planet.
Private sector efforts, case of Valency Agro Nigeria
Many private organisations have joined in this crusade to tackle food insecurity and poverty globally. For instance, Valency Agro Nigeria has since joined the UN objective to achieve food security for all and make sure that people have regular access to enough high-quality food for active, healthy lives. The company is focused on sourcing crops, grains, and oil seeds from African farmers destined for the international markets.
The company, which plays an important role in the agriculture landscape of Nigeria, said it has adapted specific SDG goals as part of its sustainability framework, including Zero Hunger. “Valency reiterates its commitment towards making its continued support towards food security in Africa and specifically in Nigeria on this World Food Day,” its CEO, Sumit Jain, told BusinessDay recently in an interview.
For example, Valency Agro Nigeria has steadily invested in physical assets that generate significant empowerment. “We have managed to attract investments from the likes of British International Investments, the development finance arm of the UK. These foreign capital inflows into the agri-sector have gone a long way in addressing food insecurity.
“As a global agri-supply chain player, we are always happy to share our know-how with local stakeholders, ensuring that there is no dearth of Nigerian talent that can help solve our problems. Valency is committed to working with all stakeholders, especially the local communities where we operate, to solve these problems, Sumit assured.
The agrofirm aims to tackle food security problems in various ways. The company said it has invested over $12 million in building a modern warehouse in Ibadan that can store about 45K MTS of agro-commodities. This facility also has one of the largest drying yards in the country for cashew, soyabean, and cocoa, which dramatically cuts food waste.
“We are also heavily investing in bringing the benefits of cutting-edge agri-tech to Nigeria and providing access to farmers,” Sumit further said.
Valency Agro Nigeria, with the help of its distributors and self-help groups, is working closely with farmers and communities to teach them the right use of the agri-inputs. This is helping the farmers to increase their productivity and develop sustainable agriculture. The social aspects of ESG always have our unwavering support—the welfare of local communities where we operate is always paramount, he said.
Valency Agro Nigeria said it is not only committed to food productivity but also food security and reducing wastage. Currently, Nigeria loses about 40 percent of its annual food production, which approximately amounts to 100 million tonnes of food per year, which is enough to feed 40 million people. This is a staggering statistic. On World Food Day, we reaffirm our commitment to cutting food loss and food waste, Sumit assures.
“Another significant step is our programme to build capacity in logistics and haulage through our subsidiary GSCS.
The firm also plans to expand its Cashew Kernel factory from 50 MTS per day to 100 MTS per day. This will increase the cashew processing in the country by another 15K MTS per annum. Nearly all of these fully processed cashew nuts will be exported, generating forex inflows from a non-oil source. It also plans the commencement of agro-inputs production at Shagamu, shifting from importing agrochemicals to local production in Nigeria, further conserving forex reserves.
All the steps, the company strongly believes, will ensure that food waste is reduced with proper storage and proper testing, and all Nigerians will have the “right to foods for a better life and a better future.”.
Read also: FAO warns of worsening food insecurity in Nigeria as devastating floods continue
Factors of food insecurity
Assessing the challenges to food security, Sumit said that in spite of advances in technology, agriculture, and trade volumes, food insecurity partly stems from geopolitical factors, including wars like the one in Ukraine. Some other factors include extreme weather events caused by global warming and environmental degradation.
“We believe regional wars have played a role in destabilising food supply chains. As farmers and their arable land get embroiled in conflicts, food production suffers to a very large extent. These challenges call for judicious use of scarce resources at the disposal of governments,” Sumit said.
In some instances, droughts and floods, as happened in Maiduguri and the southeast of Nigeria, exacerbated by climate change, have devastated crops, making it harder for farmers to produce enough food. Banditry in Nigeria has chased farmers away from their farmlands.
Poor storage facilities, poor seedlings for cultivation, and population growth, which causes more demand, further strain the food system. Poor distribution systems of food due to bad roads and banditry are other causes of food insecurity.
Food insecurity in general in any developing nation is an area of concern, and Nigeria is no exception.
Actions needed to tackle food insecurity
Sumit believes that Nigeria can be a bright silver lining in this scenario of providing food for its teeming populace with a young population and vast tracts of fertile land. “There is an increasing awareness about the importance of the non-oil sector, and government focus has steadily shifted to addressing issues around food security.
“With investments in infrastructure and perishable food supply chains, undoubtedly Nigeria will emerge as a nation that is part of the solutions to the problems of Africa and the world.
“Agriculture is being reshaped by technology. The advent of AI will further accelerate the process. Countries like Nigeria have a real opportunity to leapfrog ahead. One of the biggest hurdles has been lack of information and training. Tech platforms can be deployed to address this and create an eco-system of knowledge sharing and collaboration.”.
The gap between target investments in agriculture and actual allocation remains significant. Sumit said while the government works hard to solve these challenges, “we feel that private players can play a very constructive role by making direct contributions to building capacity. At Valency Agro Nigeria, we are excited to be part of the sustainable growth story of Nigeria’s agri sector and share the optimism of all Nigerians that the future is bright and bountiful.”.
Addressing food insecurity will not only alleviate hunger but also promote peace, stability, and prosperity for all.
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