Popular Mills, GEMS4 sign MoU on economic inclusion for farmers

From Left: Deputy Team Leader, GEMS4, Mr. Olatunde Oderinde and Group Executive Director, Stallion Group, Mr Tokunbo Aromolaran during the signing of MOU for Nigeria Rice Value Chain Integration Initiatives at the Conference Hall of Stallion Group, Iganmu, Lagos,

 Popular Mills and GEMS4 have signed a Memorandum of Understanding (MoU) on the provision of increased access to markets for smallholder farmers.

 

The partnership which was signed Wednesday is expected to result in economic inclusion through increased participation in the Nigerian rice industry for poor farmers in some selected Nigerian states.

 

The initiative is meant to create new jobs and increased incomes for the parties participating in the upstream and downstream rice value chain.

 

Through the MoU, the parties expressly agreed to develop a business model that will facilitate the linkage of not less than 20,000 smallholder farmers to Popular Mills to supply at least 50,000 metric tons high quality rice paddy.

 

According to the MoU, the parties will facilitate access to inputs and support services to rice farmers in selected areas, support farmers’ training and demonstration, facilitate awareness and access to formal markets for farmers, support to mobilise farmers to increase volume of paddy made available to the mills, facilitate efficient marketing and consumer education for Nigerian rice and facilitate improved access to inputs and supply for rice farmers in selected areas.

 

Speaking to AgroNigeriaduring the MoU signing event, the Group Executive Director, Stallion Group, TokunboAromolaran said: “This agreement signed with GEMS4 will basically help with the farming of rice as well as help to raise Nigerian rice to the awareness of people.

“Our farming system still has a lot of problems. The rice industry is heavily bedevilled with poor production.

 

“As a company that has established a very huge investment in rice milling, Stallion Group desires to have the farming segment developed for effective supply chain of paddy needed for the mills,” Aromolaran noted.

 

Also, the parties have agreed to improve farmers’ knowledge and skill on agricultural practices; increase awareness and access to formal markets for farmers, increase the volume and quality of paddy supplied to the mills, increased awareness via improved perception of Nigerian rice and increased acceptability and demand of .Nigerian rice

 

Furthermore, Aromolaran noted that the MoU is borne out of the desire to ensure productivity among farmers as well as assist in training them on the use of equipment needed for higher rice production.

“GEMS4 shares the same ideology. They help to provide employments and also increase yield in the sector.

 

“We found each other out based on what we have put on ground and they discover that they will be using us as spring board base on making success on their project. So we are done thus far,” Aromolaran said.

 

According to GEMS4’s research, the nation’s annual rice consumption is estimated at 6 million metric tonnes and is expected to reach 36 million metric tonnes by 2050.

 

“This demand gap could be filled by over three million Nigerian rice farmers, making the rice sector a key focus for job creation, food security and economic growth,” GEMS4’s research highlighted.