Agribusiness needs support to improve market competitiveness — Study

By Providence Emmanuel

A STUDY conducted by two development partners – Foundation for Partnership Initiatives in the Niger Delta (PIND) and Market Development Project in the Niger Delta (MADE), has shown that for the ongoing successes being recorded in local agricultural production to continue, agricultural businesses would require targeted policies and support.

Presenting the report of the research at an event in Lagos, the lead researcher, Dr. Ogho Okiti, explained that the research became necessary to inform stakeholders – including government, investors, development partners and even consumers – of the market realities and the positive and negative impacts of some policies on market performance.

According to Okiti, the issue of naira depreciation could be seen as a blessing in disguise, saying it has resulted in a fall in the value of people’s income and a decline in their preference for foreign products. He noted, however, that though the pricing of local goods has gone up, the proportion of the increase is not as high as that of the imported products. As a result, this has left some profit margin for the local producers. Okiti said the research findings, which apart from being shared with private investors and organisations, will also be shared with government at all levels to identify areas that are deserving of urgent attention in order to maximise the current gains.

During an interview on the sidelines of the event, PIND’s Executive Director, Dr. Dara Akala, said through the report the private sector can easily identify fresh opportunities where they can put their funds while those already operating in specific sectors can also note potentials for shifting their operations. He stated: “For instance, if you are a cassava processor and you have been processing for the industrial markets, you can shift your focus to the food market where you will find there are more opportunities. If you are a palm oil processor and you currently process technical palm oil (TPO) which is used in the households, you can begin to shift your products to the industrial markets where products attract better pricing.”

Also speaking, the Communication and Advocacy Manager for MADE, Mr. Fidelis Ekom, noted that the partnership between his organisation and PIND was the type required among stakeholders to address the socio-economic challenges facing Nigerians. He urged all stakeholders to take advantage of the report to understand market operations, especially in the Niger Delta area, and determine their next investment options.

 

 

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