Foodfarmnewstv

FADAMA 111 PROJECT ADDITIONAL FINANCING

FADAMA 111 PROJECT ADDITIONAL FINANCING
supporting farming as a business with focus on Rice, Cassava, Sorghum and Tomato value chains.

Search This Blog

Total Pageviews

SPONSORED

SPONSORED
Nigerian Institute of Soil Science- NISS

Translate Food Farm News to Hausa, Igbo, Yoruba and over 100 Languages

Latest News




The Nigerian Agricultural Quarantine Service (NAQS)

Monday, 13 July 2015

Increasing the Market for Locally Processed Rice in Nigeria through Adoption of new technologies. Lawrence T. Ogunremi (PhD), Ag Executive Director -National Cereals Research Institute, Badeggi



 
INTRODUCTION 



Over 50% of worlds energy requirement are from three “mega-crops” which are rice, wheat, and maize.

q  In many countries, rice accounts for more than 70% of human caloric intake.
q  The world per capita consumption of rice rose from 50 kg in the 1960s to 65 kg in the 1990s
q  China currently is the world’s largest rice producer (Fig. 1) — around 193 million metric tons
q  But 90% of the rice area in China is irrigated which contrary to the rain-fed production system in Nigeria
q  There is high domestic consumption of rice in countries that produce rice, as only 5- 6% of rice is exported.
q  There is a constant pressure to strike a balance between high prices for producers and low prices for consumers. 

World Export Market
q  Rice exported in the international market is from few countries and these countries tend to dictate the price and the volume of rice traded.
q  Unlike maize and wheat, most rice tends to be eaten where it is produced and so very little enters international markets.
q  In the international rice trade, a relatively small number of exporting countries must interact with a large number of importing countries
q  In the first decade of the 2000s, the top five exporters had 81% of the world market Thailand has consistently been the world’s largest exporter of rice, followed by Vietnam and India
q  In the first decade of the 2000s, the top five exporters had 81% of the world market
q  Imports of rice are widely dispersed across countries
q  Large purchases by individual importing country could contribute significantly to world rice price dynamics and Nigeria is in the position to impact this effect.
q  But these volumes traded are based on quality criteria adopted by the international market.
q  Rice traded must meet certain specifications in terms of grain quality before entering the market,
   

The Africa scenario
q  West African demand for rice has grown at an annual average of 6% or more and driven by a combination of population growth, urbanization and substitution of traditional coarse grains with rice, and an increased adoption of improved technologies, and farm inputs.
q  FAO has projected an annual growth rate of 4.6% beyond the year 2000
q  The total volume of rice consumed in West Africa is likely to increase by 70% over this decade, this is a huge market for Nigeria to enter and dominate.
q  Several initiatives at both regional and national levels has been launched aimed at attaining self-sufficiency in rice
q  However, improvement in postharvest loss reduction through good harvest and postharvest handling are not sufficiently treated.
q  Poor rice processing technologies and techniques has presented rice development with two main challenges, (1) significant loss in quantity of rice produced (2) lower quality of locally processed rice.
 
Nigeria scenario
q  Nigeria has 84 million ha of arable land, untapped water resources and a market of 165 million people and currently, only about 39% s of this is cultivated.
q  Rice is the most important food because it is the most preferred food amongst women, youth and children particularly in the urban centers.
q  The per capita consumption has increased from 15.8kg/person/year from 1981s to about 32kg/person/year currently
q  Demand in Nigeria is 5 MMT, with an average production of about 2.21 MMT. The deficit of 2.79 MMT is filled through importation. WHY?
q  Per capita rice production has remained stagnant at about 28 kg/person since 1990, while annual per capita consumption has increased from 18 kg to 34 kg in the same period. Rice yields have remained at below 2 mt/ha. Rice imports have generally grown faster than both rice production and the population with the latter two growing at about the same pace.
q  The average Nigerian household spent 6% of its total income on rice, the highest amongst all staples in both urban and rural areas.
q  Consumer prefer imported rice, as it tends to have a higher swelling capacity, and preferred grain shapes and is clean, polished, not broken, without stones or other debris, and suitable for a variety of dishes (e.g. jollof rice, fried rice).
q  Most local rice cannot adequately compete with imports on a quality basis, as it is often improperly processed and contains high levels of impurities.
q  If this is the case then Nigerian rice traders should give the consumers what they want.

q  How do we then do this? 
q  This is the big question.
                                     
                                                  
                   Factors responsible for poor quality milled rice in Nigeria
q  Non uniformity of paddy rice in terms of grain shape and size
q  The popular improved rice varieties have been mixed with other varieties or volunteer crops due to poor cultural practices, presenting rice processing with challenges of varietal mixture
q  Rice varieties respond differently to processing conditions, therefore mix varieties present difficulties in uniform soaking during parboiling. When such mixed varieties are processed, they turn out poor quality milled rice.
q  Poor Degree of Milling (DOM)
q  The locally milled rice is mostly brownish due to minimal degree of milling (DOM) by the village mills.

q  Significant portion of the bran are still found on the grain, have diverse color variation due to the presence of red endosperm grain types that mixed with the rice as volunteer crop during cropping.
q  This results in poor grain quality and therefore low price.
q  Poor Head Rice Recovery (HRR)
q  HRR of rice depend on the variety and cultural, physical and technological attributes of the paddy.
q  While endosperm pigmentation mainly found in O. glaberrima species has significant effect on the energy required to mill rice as more shearing and frictional forces are required to polish it. More polishing results in more broken rice.
q  Pigmentation of the endosperm and husk may also dissolve during soaking and steaming operations and this deepens the color of the parboiled rice.
q  Poor parboiling operations
q  Significant numbers of local rice processors are still using cold water soaking technology, which favors fermentation and subsequent development of offensive odors, reducing the market values of rice.
q  Poor Technology for milling
q  Milling is critical in obtaining high total head rice recovery and in Nigeria, most local rice millers use the steel roller mills (Angelberg). This produced significantly high level of broken rice fraction and therefore reduces market price of locally milled rice.
q  Other qualities of paddy such as moisture content, presence of stones
q  Paddy collected at different locations in Nigeria indicated moisture content ranging between 11-13%.
q  This moisture content is suitable for processing and storage with little or no major concern for mold growth and damage. Stones were found in all the samples of paddy
                                                                                                   
 What NCRI is doing?

1.       Development of appropriate variety for processing and consumption
q  Breed and released 63 improved rice varieties with different characteristics along with production technologies that meet the preference of the varied players along the rice value chain
q  The most popular of these are FARO52, FARO44, FARO60, FARO61 and FARO 62.
q  Good quality seeds of this varieties have been made available to farmers and foundation seeds made available to seed companies to improve seed production
q  It does not end with good quality and preferred rice varieties but also in adopting innovative recommended agronomic practices and the recommended harvesting and postharvest operations. This is where the farmers miss it; and this is the crust of the problem.

2.       Improved harvest and postharvest technologies
NCRI with its partners have developed simple mobile rice thresher/cleaners having 6-8tons capacity per day for the improvement of rice threshing and cleaning.
q  NCRI has also developed and improved water-floatation steaming and soaking technology for rice parboiling. This technology involves soaking the paddy in hot water at 70-85oC and steaming before drying; this reduces the soaking and steaming time by about 5-6 hours
q  This results in 23% increase in head rice recovery and 80% preference against locally parboiled rice.


3.Capacity Building in rice processing and packaging

q  Training of significant number of rice processors on the improved rice processing steps have improved the quality of locally milled rice.
q  Several processors from different rice processing clusters in Nigeria have been trained on processing and packaging of locally milled rice as a step to enhance market.
q  Recently, 100 rice processing entrepreneurs under the Growing Girls and Women Initiative of Nigeria (G-WIN) benefited from such training and have improved the quality of rice they processed.
q  Over 100 local artisans have also been trained in the manufacturing of the thresher/cleaners to increase national coverage

4. Cleaning and grading systems
q  It is a general fact the rice does not produce stones and other impurities found in paddy.
q  We have in recent years developed wet cleaning vessel based on the gravimetric properties of rice and impurities.
q  Less dense materials, mainly chaff and other materials are removed from the float, while filled rice are removed from the second layer and stones and other heavier impurities are left at the bottom.
q   
q  These have resulted in high quality paddy fed into the parboiling vessel.

5. Packaging and branding of local rice
q  Locally milled rice is often sold without packaging or branding.
q  Currently several donor agencies and local partners are facilitating branding and packaging of locally milled rice to improve its competitiveness.
q  NCRI and Africa Rice Centre, with funding from the Canadian Government, are training small scale millers and processor on the branding and packaging of their products to improve demand and market value.

6. Standard and Grade Development
NCRI and its national and international partners have conducted consumer preference studies of locally milled rice across all the geopolitical zones and evaluated grain quality characteristics of Nigerian rice as strategy to develop standards and grades for locally milled rice to enhance it market.

7. Uses of rice by-products
q  Straws are the major by-product of rice production, while hull, bran and small broken rice fractions are major by-products of rice processing
q  Modern rice varieties, straw production is at least equal to the paddy rice yield, based on the harvest index (ratio of grain to grain plus straw) of 0.5
q  Relatively fewer husk and bran are produced, representing 20-24% of rough rice among modern varieties
q  The energy value of rice husk and straw has been reported to range between 8000 to 13,000Kj/kg.
q  Approximately 30- 40% of the rice bran in the major rice producing countries of Asia is used to extract high quality cooking oil that is known to decrease blood cholesterol levels in humans, a practice that is virtually absent in Nigeria.
q  NCRI has recently developed briquetting machine that comprises rice hull into briquette to fire rice parboiling vessels, which significantly reduce the cost of local rice processing and therefore increase its market.
q  Low grade broken rice fractions have also been formulated in combination with local legumes to produce value added high protein-energy foods. This has improved profit margin from local rice processing and enhance food and nutrition security of Nigerians. 

The way forward
q  On-farm crop quality management techniques to maintain paddy quality
q  Grow suitable varieties from good-quality paddy
q  Avoid growing different varieties together in the same piece of land
q  Avoid harvesting immature grains by harvesting at the right time
q  Drain fields prior to harvesting
q  Avoid heaping harvested panicles on the field for a long time to prevent fungal damage
q  Avoid cross-contamination of seed during threshing, winnowing and drying
q  Prevent paddy from touching the ground during heaping (piling), threshing, winnowing and drying by using a clean concrete pad, polypropylene sack or tarpaulin

                            
q  Winnow the rice seeds after threshing and pack in a clean sack
q  Dry the seeds well and disinfect the sack before packing for storage.
q  Remove floating immature grains, residual dirt and stones
q  Soak paddy in hot water (70-80%) and ensure that all grains are covered with hot water during soaking
q  Drain the water and steam the paddy (do not boil) and cover with cloth while steaming and steam until 25%-40%of grains have split open
q  Spread on a clean surface to dry and turn frequently
q  Avoid very hot sun during drying 

Conclusion
q  Access, adoption and capacity improvement on the recommended practices will increase the demand for locally processed rice,
q   This will trigger production of high quality paddy, improve milled rice quality.
q   Thus opening up of more irrigation facilities through which we can have double and triple cropping of rice.
q   While doing all these, however, we should not forget to carry along the women farmers.

Newsom on the Market Retreat


Retreat: To move back or withdraw; or a quiet, secluded place where one can rest and relax. (DTN photo by Darin Newsom)
Retreat. As a verb, it's a word you don't want to hear from behind you in battle. As a noun, it can also mean to move back or withdraw; but also a quiet, secluded place where one can rest and relax. As for the latter, people need that once in a while, and so do the markets, particularly after the recent rise in volatility.
We know what we look for in a retreat: a secluded cabin in the woods, a quiet hut on the water, a trip to the big city during down season. (With that in mind, don't forget to register for this year's DTN/The Progressive Farmer Ag Summit in December. Chicago is always lovely that time of year.)

But what about markets? How does a collective system of millions of different opinions regarding price take a breather? It's called "retracements," and something we not only see, but anticipate in every market trend.
So, what is a retracement? Think of it as a combination of the two noun definitions above. It's a time period when a market moves back against its trend, usually taking the heat off of boil for a short time. How far a market moves back has a lot to do with its real fundamentals, those indicated by its futures spreads, allowing us as analysts to establish possible price targets. 

Those of you familiar with my analysis know I have developed a method of analyzing trends (price direction over time) based on the simplest application of Elliott Wave Theory. Recall from previous discussions that a complete 8-wave cycle consists of a 5-wave uptrend and 3-wave downtrend. In an uptrend; waves 1, 3, and 5 are up with the third wave being the strongest. Waves 2 and 4 or down. In a downtrend waves are given letters to differentiate with A and C being down, B being up. 

These retreating waves (2, 4, and B) are often read as major changes in price direction, but are nothing more than retracements. Go back to my Technically Speaking blog from July 1 and look at "Monthly Grain Analysis." There you'll see a long-term monthly chart of one of my favorite markets (from a technical point of view), the DTN National Corn Index (NCI.X, national average cash price). Note that Wave 1 (first faint green arrow staring in October 2014) peaked in late December 2014, leading to the market retreating (Wave 2, first red arrow) through early June. Notice that Wave 2 bottomed out at $3.29, near (enough for me) its expected target of $3.31, a price that marked the 50% retracement level of the Wave 1 range from $2.81 to $3.80. 

Again, those of you following along with my analysis over the last year (at least) will recognize the significance of the 50% retracement level. If a market has bearish real fundamentals, its futures spreads showing a strong carry (contango in the world of energies and metals), then we would expect a retracement (particularly during Wave 2) of at least 67% to near 100%. If a market's real fundamentals (spreads) are only neutral to bearish, the expected retracement range would be 50% to about 67%. Neutral to bullish real fundamentals tend to result in retracements of 33% to 50%, while bullish real fundamentals generate retracements of 33% or less.

Ag's Draining Water Fight - 1 Des Moines Water Works Clashes With Iowa Farmers; Lawsuit Creates Conflict on Clean Water

Installing drain tile. A well-tiled river valley in Iowa is the focus of a lawsuit filed by the Des Moines Water Works that seeks to regulate nutrient runoff from farms. (DTN file photo)


 ROCKWELL CITY, Iowa (DTN) -- Iowa farmers and ag groups would much rather work things out with leaders at Des Moines Water Works over a beer and lock details in with a handshake.
Instead, the water utility's legal action, which seeks to regulate nutrient runoff from farms, likely will take years to resolve and has more farmers willing to dust off their boxing gloves.
The utility's board of directors moved in March to file a federal lawsuit against 10 drainage districts in Buena Vista, Calhoun and Sac counties, all of which are northwest of Des Moines and part of the Raccoon River watershed. The lawsuit also names county supervisors.

If successful, the legal action could lead to regulating agriculture as a pollution point source in Iowa and perhaps across the country if legal fever spreads. It could require farmers to pay for expensive permits for normal farm practices, as well as restrict the use of fertilizer or other farm chemicals.

At the center of the issue is the extensive subsurface tile drainage that helped turn the Raccoon River watershed northwest of Des Moines into one of the most productive cropping and livestock areas in the country. The tiling also allowed farm nutrients to move down stream. The lawsuit specifically declares tile drainage pipes and ditches operated by the drainage districts as "point sources which transport high concentration of nitrates contained in groundwater."

The Raccoon River drains 3,625 square miles, including some 2.3 million acres in west-central Iowa. Portions of 17 counties supply the river. Row crops including primarily corn and soybeans account for about 85% of the land area in the North Raccoon River, according to the Iowa Department of Natural Resources. Some 77% of that land is tiled-drained above Sac City. In the South Raccoon River area some 61% of the land is row crops with about 42% of it tile-drained north of Redfield.

The rich soil in the region is part of the water-quality challenge. Soil mineralization and nitrogen fertilizer contribute to at least half of the total nitrates ending up in the water. Livestock in the watershed account for anywhere from 13% to 17% of the nitrates. 

Des Moines Water Works wants tighter regulations to limit runoff. Iowa's voluntary nutrient reduction strategy lacks any timeframe for reducing nutrient runoff and declines to set any standards or require certain conservation practices. 

The litigation leaves farmers concerned about the regulatory risks they may face. Calhoun County Farmer Randy Souder wants to install a bioreactor in one of three counties where drainage districts and county supervisors have been sued. The bioreactor is a large pit filled with wood chips or similar material that filters tile drain waters before they enter a stream, reducing nitrate levels in the process. It is promising technology that could help solve the state's nutrients runoff problem. Now Souder questions the investment.

"Right now I'm going to put it on hold until we know a little more about what is going on," Souder said. "If we're going to go through a bunch of regulations and stuff do I want to dump 30, 40 grand into something?"
An Iowa State University study from 2012 found farmers in the Raccoon watershed region could reduce nitrate loads by 45% to 55% using the combination of nitrogen rate management and wetland restoration. Nitrogen management alone could reduce loads by 18%, according to the study.

5 key influences on grain price explained

Combines harvesting

Nidera traders believe that five key catalysts can be identified as those which will influence what UK growers will get for their grain in the months and years ahead.
Others will emerge.

1. Investment funds, Chicago

Why? As volatility has increased in agricultural markets, so too has the desire for speculators to make a profit from it. Investment fund activity brings extra liquidity and opportunities but also adds risk.

Key statistic: Investment fund short (sold) positions on Chicago grain futures markets reached a massive 74,000 contracts at the start of May, prior to weather disruptions.

The style of trading has changed over the past decade with speed of information and decision-making now lightning fast. Investment fund involvement now massively accelerates the speed of market movement and the positions held by funds influence sentiment.

For example, after holding large short (sold) positions, the recent sharp rallies are entirely driven by investment funds buying back those positions in light of perceived unfavourable weather.

2. Carryover stocks, Europe

Why? UK wheat stocks carried over from the 2014 harvest into the new cereal year are expected to be more than 3m tonnes. With more competition from Europe, the UK will have to be a more aggressive seller into feed markets.

Key statistic: UK exports to North Africa increased 800% this season to 331,000t. With France and Germany well positioned to take this up (crop quality and size permitting), the UK could become a less attractive source of supply.

Despite a lower harvest outlook, the UK looks likely to produce an exportable surplus of more than 2m tonnes in 2015.

With more competition into North Africa, the UK will have to face up to strong Black Sea feed grain exports to avoid stocks building to unsustainable levels.

Global map

 

3. Global tension, Russia and Ukraine

Why? It is hard to not notice the impact that Russian and Black Sea wheat has had on grain price direction in recent years. World grain trade now relies on an extremely unpredictable producer for much of its supply comfort.
Key statistic: The 2015-16 season will be the third in a row that Russian and Ukraine exports represent more than double the UK’s entire wheat production.
The world relies on this region being able to export and any disruption causes significant price reactions. In the past year rumours of a Russian export ban have been replaced with a tax on wheat exports – who knows what’s next?
While a year of favourable production and strong exports is expected, political interference and possible Rouble devaluation could affect markets severely.

4. Changing weather, Southern Hemisphere

Why? The weather phenomenon known as El Nino is established and is the first weather pattern over the past two years to cause disruption to global grain supply.
We have seen this in the recent hot weather in Europe, the abnormally wet weather in parts of the US and the drought in Canada. The effects of El Nino can be enduring.
Key statistic: In some previous El Nino years, Australian grain yields have dropped to just 53% of average.
The long-term impact of El Nino has made upward price swings a stronger possibility than at any point since the 2014 harvest. Longer-term likely effects of El Nino are lower Australian production from warmer, drier weather in the future.
Australia is a large exporter to China and South Asia and any loss in production could highlight lack of reserves in key exporters at a time when demand is increasing.

5. Variable outputs, North America and Canada

Why? Yields produced by these major players are very susceptible to the weather and this can have a very unsettling effect on markets and prices.

Key statistic: Areas of the US corn belt have seen more than 200% of normal rainfall over the past month which has given spring-sown crops a poor start to the season and delayed winter wheat harvests.
Recognising the disruptive effect of low stock levels and erratic production on grain prices, the US has increased stock levels over the past two years.

While these stocks are larger, they are not so vast that the problem has been eradicated.
The US could well remind the world just how important a producer it really is in the years ahead.