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Raising a new Generaon of Leaders Rice Production and Processing in , : The Relevance of the Indigenous Institutional Arrangement Evans Osabuohien Uchechukwu Okorie Romanus Osabohien

Presented at YARA Inaugural Conference, Cape Town, South Africa, 6-8 February, 2017 Outline • Introduction • Scope & Objective • The Conceptual Framework • Status of Rice Production in Ogun State • Traditional versus Modern Rice Processing • Constraints to Rice Production & Processing • Concluding Remarks

2 www.covenantuniversity.edu.ng Introduction..1 • There was re-awakening in the agric with the launch of the Agricultural Transformation Agenda (ATA) in 2010. • ATA was attempt of the Federal Govt to enhance food security, job creation, diversification, etc. • 2015: The new Govt: The Green Alternatives… q Continuity Question …(Institutional Issues)

3 www.covenantuniversity.edu.ng Introduction…2 • Rice: emerged as major staple crop in Nigeria • It has high demand in all the States & LGAs • Consumption increases with about 10% yearly. • $20bn on food import annually (rice, wheat, sugar & fishing account 60%) • It is mainly produced by small-scale farmers. • Efforts are made to encourage the private sector

4 www.covenantuniversity.edu.ng Objective & Scope • This study assesses rice production & processing using the case of Ogun State • One of the major rice producing States in Nigeria. • Methodological approach: qualitative technique using KIIs

5 www.covenantuniversity.edu.ng Location of Ogun State

6 www.covenantuniversity.edu.ng Brief on Ogun State • Ogun State was created in 1976 • Located in South-West Geopolitical Zone. • It is bordered by , Oyo, Osun, Ondo, & Benin Republic • is the capital and the largest city. • As at April 2016, it has 11 universities; • This makes it the State with highest number of Universities: Federal (1); State (2); & Private (8). • It has one of the busiest & largest industrial estate - Agbara

7 www.covenantuniversity.edu.ng Ogun State & Rice Farming

• The number of farmingLGAs households…1 is about 360,000 persons with average family size of 4.8. • Arable land in Ogun State: 1,204,000 ha representing 74% of total land area. • 350,000 ha of total arable land is cultivated (29.07%) • The annual average rainfall 105cm - 128 cm. • Major crops: cassava, cocoa, maize, oil palm, pineapple, rice (ofada), sugar cane, vegetables etc

8 www.covenantuniversity.edu.ng 9 www.covenantuniversity.edu.ng Ogun State & Rice Farming

• 8 of 20 Local GovernmentLGAs Areas…2 (LGAs) in Ogun State are involved in rice production. • They include: , Egbado North, , , Ijebu-North, , , and . • In some of these LGAs, there have been the establishment of rice mill that is possibly expected to make Ogun State a major player in rice sector revolution in Nigeria 10 www.covenantuniversity.edu.ng Conceptual Framework..1 • The conceptual framework is built on the tenets of New Institutional Economics (NIE) • Role of institutions is essential in economic activities • Institutions can be formal and informal. • Formal institutions entail well-documented principles that guide and guard the affairs of economic actors in a society. 11 www.covenantuniversity.edu.ng Conceptual Framework..2 • Informal (aka traditional, local or indigenous) institutions comprise moral codes, values, norms and conducts (usually unwritten) that influence the way economic agents are coordinated. • Indigenous institutions entail the community leaders who can act on behalf of the members of the communities. • The community/association leadership is the custodian of the customs, beliefs, norms and values in such communities and associations. 12 www.covenantuniversity.edu.ng Rice Growers Association of Nigeria (RGAN): Ogun State

13 www.covenantuniversity.edu.ng The Membership…1 • Opened to individuals involved in: a) rice farming (average farm of 2 ha); b) rice processing; c) rice marketing and distribution • As at May, 2016, there are about 5000 members. • Though membership is voluntary, members usually contribute N2000 p.a.

14 www.covenantuniversity.edu.ng Status of Rice Production...1 • We observed that the some of the rice farmers form clusters to create self-assistance & boost production. • Each farmer within these clusters usually cultivates an average of 2ha per planting season. • They make effort to pool resources e.g. hiring tractors during land preparation. 15 www.covenantuniversity.edu.ng Traditional versus Modern Rice Processing.. • Traditional method of processing rice paddy involve: soaking of the paddy in water for 2-3 days; • steaming of the soaked paddy for 5–10 mins & dried in the sun • pounding the dried paddy in a mortar & pestle to remove the husk or use of simple milling machines • Then the grain is cleaned using a winnowing basket 16 www.covenantuniversity.edu.ng Traditional rice processing equipment for water supply during paddy rice soaking

17 www.covenantuniversity.edu.ng Modern Rice Shelling Machine

18 www.covenantuniversity.edu.ng Stone Removal Machine (Destoner)

19 www.covenantuniversity.edu.ng Traditional versus Modern Rice Processing..2 • The modern machines are located where there are cluster of rice farmers with a view to having regular patronage. • There are slight variations in the machines. • The type of machine located within a specific area to be compatible with the type of grains produced in that locality.

20 www.covenantuniversity.edu.ng Constraints to Rice Production & i.Processing Financial Constraint ii. Land Development Related Challenges iii. Input challenges iv. Un-mechanised Rice Production (Low Tractorisation) v. Birds Infestation vi. Labour Intensive Harvesting and Threshing vii. Limited Modern Processing Machines viii. Weak Linkages for Marketing of Rice Products 21 www.covenantuniversity.edu.ng Concluding Remarks • To transform rice production & processing, it is pertinent that govt work closely with the farmers to understand realities. • This implies that strategies to improve the productivity of rice farmers should involve them in planning and implementation process.

22 www.covenantuniversity.edu.ng Fieldwork

23 www.covenantuniversity.edu.ng Appreciations v This study draws from the research project funded by DTT Farms Ltd, Abuja. v Officers of Ogun State’s ADP; v Leadership of Ogun State Rice Growers Association of Nigeria (RGAN) led by the Chairman, Bado Adeneko; v Research Assistants: Mr Israel Oloruntoba & Miss Ibukun Beecroft v Dr Gideon Adewale of GIS Centre, Covenant University, Ota, for helping with the maps. v The Conference Organisers for invitation & funding my trip

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Thank you !

Merci

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