Nigeria in mixed fortune on grains, oil seeds export

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Nigeria  could record  mixed  fortunes  on  grains and oilseeds exports  this  year with lack of rainfall hampering  the oilseed planting pace.

Already, exporters are complaining that increasing container freights would push the overall cost of commodities in the international markets, making cargoes  from Nigeria  less competitive. The top export destinations were China, Japan and India. According to analysts, poor farming practices is one of the major reasons Nigerian exports don’t  make it to international markets.

Statistical data from the International Trade Centre (ITC) sourced by The Nation revealed that Nigeria export of oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal stood at $343,102 in 2020. In 2016, the value was $122,816.The value rose to $182,001 in 2017, $274,515 in 2018, and $300,098 in 2019.

Globally, export trade in oil seeds and oleaginous fruits hit   $110,336,492 in last year from 89,711,926 in 2016. The value was $ 98,137,776 in 2017 and $ 100,439,001 in 2018 and $96,632,722.

Speaking to The Nation, the Chief Executive, Agricultural and Rural Management Institute (ARMTI), Dr Olufemi Oladunni noted that a lot is required   to raise the national oil seeds production volume.

A key component of improving production, according to him is   to give smallholders better access to high-yielding seeds. He posited that  there are  plenty of business opportunities across domestic, regional and international markets, for oil seed farmers.

He added that farmers face considerable challenges in modernizing the industry to increase yields, exports and value-added processing.

He urged for  wide-reaching efforts to  see production levels of key crops return to growth in the coming years, helping boost value-added processing in the sector.

Agribusiness & Youth Empowerment Coordinator, Community of Agricultural Stakeholders of Nigeria (CASON),Sotonye Anga noted that incessant attacks and killings by terrorists, bandits, and armed robbers have taken a serious toll on oil seed farming. He posited that farmers were afraid that they could be killed in large numbers by rampaging bandits .

The  Federation of Agricultural Commodities of Nigeria (FACAN),  believes  the government  can  generate N41.9 billion  from sesame seed export  and N13.7 billion from  cashew.

Nigeria Exports of oil seed, oleagic fruits, grain, seed, fruits to United States was $5.89 Million during 2020, according to the United Nations COMTRADE database on international trade.

Statistical data from ITC shown that United States exported the highest volume of oil seeds and oleaginous fruits valued $ 31,104,238 in last year. It was $27,718,131 in 2016.

In recent years, oilseed farmers have faced increasing challenges related to decreasing yields and unpredictable weather patterns associated with climate change, on top of traditional problems such as limited access to finance.

In the North  dry weather is largely to blame for low production, with drought hitting during the critical pod setting and filling period of crop development.

Also, insecurity has not driven farmers to increase acreage coupled with relatively weak yield.

In recent years oilseed farmers have faced increasing challenges related to decreasing yields and unpredictable weather patterns associated with climate change, on top of traditional problems such as limited access to finance.

In Africa, Sudan exported $967,676 worth of oil seeds. It was $617,664 in 2016.The value was $607,453 in 2017, $820,351 in 2018, and $969,478 in 2019.

Ethiopia exported $439,373 in 2020.It was $516,851 in 2016; $446,273 in 2017; $408,366 in 2018 and $419,457 in 2019.

Senegal exported $203,413 of oil seeds and oleaginous fruits last year. It was $108,041 in 2016.

Morocco recorded $174,123. It was $99,494 in 2016. Kenya recorded $67,692 last year. It was $12,233 in 2016.

Among the biggest exporters was Brazil. It exported oil seeds valued at $29,043,102 in 2020 up from $19,557,938 in 2016.

Canada recorded $7,564,546 in 2020. It was $7,182,990 in 2016;$ 7,863,475 in 2017, $7,589,136 in 2018 and $5,612,139 in 2019.

Netherland recorded $3,181,822 in 2016, $3,519,074 in 2017, $3,647,786 in 2018, $3,600,874 in 2019 and $4,404,294 last year.

Argentina recorded $3,836,435 in 2016, $3,145,716 in 2017; $1,779,588 in 2018; $4,096,386 in 2019 and $3,416,486.

China exported $2,718,629 value of oil seeds in 2016; $2,646,093 in 2017; $2,714,272 in 2018; $2,875,538 in 2019 and $2,875,275 last year.

Rising international demand for their products offers them new opportunities. To sell into foreign markets, farmers must meet international health and safety standards.

The World Grains & Oilseeds Map 2021 noted that increased demand in Asia and Africa and rising exports from the Americas and Black Sea region are anticipated to buoy global grains and oilseeds trade growth.

The report posited that the global trade volume of all grains and oilseeds increased by about 120 million tonnes at a 3.5 per cent compound annual growth rate (CAGR).

However, the pace of growth decreased when compared to the 6 per cent  CAGR, or 160 million tonnes, of the previous five years.

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