We will maintain high standard in yam export – Oklan boss

As Nigeria begin exporting yams abroad in desperate move to expand exports and foreign exchange earnings, experts say the Africa’s largest economy and most populous nation has the capacity of exporting up to 100 containers of yams monthly. Elizabeth Nwankwo, CEO Oklan Best Ltd whose company is a major yam exporter in Nigeria spoke with BusinessDay’s Cynthia Egboboh on this and other issues.

Tell us about your experience in exportation

Oklan Best Ltd started as Oklan Resources in the Gambia fifteen years ago, we used Gambia as a hub to export our Nigerian products to other neighboring countries like Senegal, Guinea Bissau etc. Some of the products we were dealing with then were made in Nigeria hats, textiles, stationery, textbooks. We later added pure water machines and their accessories.  We were doing this because Gambia does not have the volume so we were importing from china to Nigeria and from Nigeria to Gambia and other West African countries.

At some point, we went into cold room services and then production of ice block which exposed us into fishing and smoked fishes. At some point we began exporting smoked fish from Gambia to the US and UK. In other words, we could only export smoked fish from the Gambia because smoked fish from Nigeria is not allowed, which a big challenge to us till today. In 2009, Oklan Best Ltd was registered in Nigeria. In order get into backward integration of our produce, we moved into farming with over 100 hectares of farmland at Olowa in Iddo Local Government of Oyo State. Our major crops include: Yam, Palm tree, Plantain, Cassava, Cashew, Maize, etc and Snails.

Two years ago, we were having so many challenges in the exportation processes. So, I had to relocate back to Nigeria to oversee the export and ensure standard quality of product because most of our products are often rejected for poor quality.

So, that took us into backward integration of our products and that got us involved in both the farming and processing stage of our production. We started planning and working towards yam exportation in 2014 and started the planting process with Mr OYE from IITA in Oyo state and until the outbreak of herdsmen came in and the farmlands were destroyed, but we did not give up because our passion was to regain the glory of the Nation. Generally products from Nigeria are regarded as substandard, not well processed and not acceptable globally. Truly, when we went to Ghana, we discovered that our equipment here are actually outdated. In a nutshell, most of the products that we eat are substandard. For instance, the vegetables we grind in the market has some metals particles in them. We ignorantly consume these in our food. Most times oil from the machine drops inside the food and we consume it. All these are the reasons why our foods are being rejected. Statistics have shown that our foods receive more cases of rejects overseas. So there is need for us to work to improve our food both for consumption and exportation, we are currently working with different concerned groups like the farmers, processors, traders and young entrepreneurs. We are organizing programs to educate and sensitize these people; we let them know what is wrong and how to make it better. We are moving to other states, on the 20th of June, we were in Osun state not only to aggregate their yam and plantain but also to take over their Plantain and Root crops flour factory. In Kwara, we formed five groups (Shea, Palm, Cassava, Yam and Nut& Seeds). We are already talking to Ondo and Ekiti as we finished from flag off ceremony we leaving straight for Akure to sensitize the farmers. We have a processing factory where we carry out all the processing activities.

What prompted your yam exportation business?

What prompted us into the idea was because we see the cartoons with yam produce of Ghana, Brazil and other countries and Nigeria’s is not there and we know that we are the highest yam producing country in the world. So having done market survey between Nigeria and Ghana, we discovered that Ghana imports yams and other products from our markets here, enhance them with their sophisticated machines and export to other parts of the world. We are not into this business for profit only but to Re-Brand the Image of our Nation, enhance our products and create jobs for Nigerians. So we are training people, we split them into cooperatives, teaching them about international and acceptable way of processing and packaging food. One of the groups we are working with just got 450 heactres of Farmland in Ogbomoso for them to plant Yams and Cashew.

I was in Kwara some weeks ago and we are forming different cooperatives to plant yams, seeds/nuts, shea trees, palm trees and cassava. These groups will be working on those areas and after which we will aggregate from them. We have told them to just grow the crops properly to get the best standard and we will buy the products from them. We will give them incentives (such as Anchor Borrower, scholarship for their children, bonus for meeting target etc)

Do you have specific destination for this export?

Yes, our destination is US, UK, and later China. I was contacted 1st of March from USAID that the minister of agriculture is concerned about yam because the Chinese and USA Diaspora have contacted him for yam.

How often do you intend to carryout exportation?

Well, if the quality is guaranteed we could export 4-100containers per month. You know US is a big market, state by state will take their shares. Then talking about UK, they can take 10 containers per month because other countries around them will also buy from them and this is achievable. We are already working on meeting the right quality. The Oyo state farmers met with IITA yesterday and were given 40 boxes of seedlings to plant. We have a staff of IITA working to ensure a standard procedure by teaching the farmers the perimeters to put in place. We are also working in Osun state, we have signed to aggregate all the yams produced in Osun state.

How much quantity are you taking to the market for a start?

We are looking at 24 tons per container. Any container going out should not be less than 24 tons because each carton is 20kg by 1200 boxes. If Ghana can export like 100 containers a month then I think we can do more than that in a month.

How do you intend to avoid rejection of these yam products as it happened in the case of beans recently in the European market?

For our yams not to be rejected they have to be stored in temperature controlled environment. Looking at the distance that these products have to go through, we need to get the Ref. trucks to transport them. For example, the yams from Benue to be exported by Adesfoods in England which the trucks have been held in Liliypod since Sunday in Lagos up till now, if not for the Ref. truck that was used they would have gotten rotten.

Dantata has Ref. trucks and the open trucks from Leventis used by coca cola is also good. We need the government to get Leventis to supply us with the trucks, but the best solution is the train. We have contacted the Nigerian Railway at Ibadan but were told that the wagons they have at the moment will not be suitable for our services. We are asking the government to see that 50 out of the 200 expected by Nigerian Railway are Ref. wagons. These will help to carry perishable agricultural product can be transported without being spoilt.

How do you intend to compensate the farmers?

By creating ready market for their products, we compensate them with immediate payment; it is a buy and sells relationship. But with the farmers that are committed to us we give them incentives in form of scholarship for their children. Just that when we tell them about buying for export they increase the price of their product and this increases our cost and makes our products uncompetitive. I think aside the price of the goods what we should be concerned with is ensuring standard products so we can avoid what happened in the case of coca-cola drink. It is high time we tell ourselves the truth about what we produce because no matter our relationship with off takers/Importers they will not accept any substandard product from us. I will not blame them because it is business. So what we can do is for the government to regulate the cost and logistics as the bad roads also pose to be a challenge. Quarantine should be involved from farming and the production process, not the packaged product on the road because all of these delay the process and add to cost.

What are the measures you are putting in place to regulate the possible rise in the price of our locally traded yams as a result of exportation?

We have our own farms in different locations. Our export cannot influence the local market price. It is when there is only one farmland producing for everybody that the price can be inflated. One good thing about us Nigerians is that we know how copy one another and before you know it, everybody will be planting Yam and the price will drop.

What role is the federal ministry of Agriculture playing in this yam export?

They formed committee to facilitate the easy access of the Yam and also created awareness among the necessary agencies in other to eliminate bottle necks.

Is the standard improvement going to be applied for locally sold products also?

Like I said we are going to the market place to sensitize the traders and those involved in the food production process to ensure they get the right knowledge and encourage them to practice the right thing and in the nearest future, we will have a healthier and well packaged food to eat. This can change the situation we are having today where you see foods displayed openly in public markets. So we are having these traders grouped into cooperatives according to the goods they sell and teach them the best way to package and store these foods and provide for them the right machines they needed.