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Agro-business |
It is beyond crucial that man has food to eat;
its importance cannot be over-emphasized. Food sustains our very
existence and ultimately, does agriculture.
Terms such as “Agro-business” or “Agricultural Finance” are not new
to us, they have been discussed, deliberated upon and dissected with
little or no tangible results, even if these terms are new, it can be
quickly pieced together to go with agriculture and finance. A marriage
of the two sectors.
Agricultural Finance refers to the acquisition of financial services
such as; loans, leases, insurance of crop and/or livestock, it covers
the whole agricultural processes of input supply, production,
distribution and marketing. Agricultural practitioners and Farmers are
expected to make use of the opportunities Agricultural Financing
provides but how easy is it to access these opportunities and are they
truly helpful to farmers?
The co-owner of Eltoda Farms, Mrs. Toyin Falade, opens up on her
experiences as a Farmer and her challenges with agricultural finance.
Eltoda farms, majorly dealing in livestock farming (poultry) and
aquaculture, have been running for 14years, Mrs. Falade in partnership
with her husband runs the marketing aspect while he runs the production.
As regards the funding of the farm, she said “finance is important in
agriculture; however it is not the most important thing, passion first.
When we decided we wanted to go into Agriculture, we had so many
challenges; we were losing money every day but passion kept us. The
funds are not forthcoming as they ought to be from financial
institutions considering the importance of agriculture to life”.
According to her, “most banks do not fully understand the need of an
average farmer, what they do is sympathize with us but they do not
empathize with us. They have no understanding of what we are faced with.
You cannot just sit in the four walls of your office and draw up
packages for a farmer without being on the farm to know what our needs
are. They have no fair idea and come up with a lot of impossible
criteria, far-fetched collaterals. They keep saying when you give a
farmer a loan; they will go and marry a second wife”
Mrs. Falade further explained how the funds can be utilized if they
were given to farmers and how technology has made farming easier, more
efficient, increased speed, better output and made agriculture a fun
thing to do.
“Currently, our farm is operating on a semi-automated system, but
there are a lot of achievements we could have done if we were operating
on a fully automated system. There are fully automated cages where the
feeding system, drinking system and manure system are all automated. For
instance, I have a three tier cage, and I noticed that on a particular
side the birds are doing better and producing more than on the other
side, that is because they are being fed by different people.
“The birds faring better, are being fed by a tall attendant and so he
could dispense better on the topmost layer while the other birds are
being fed by a average height attendant who cannot reach them. Also, no
matter how skilled a person is, there would still be wastages. These are
as a result of things done manually, if we had a device and the
attendants input a figure to feed a 100,000 birds, it is the exact
figure put in that would be delivered.
“This minimizes wastages and ensures efficiency. We need funds to
acquire machines, if we had the machines, we would be more productive.
Banks are not being helpful; they are looking for their own comfort in
the form of collateral. I believe if banks seriously co-partnered with
farmers, things will no longer be treated casually” She explained.
Speaking on the role being played by the government, the co-owner of
Eltoda Farms stated that, “the government is very far from the farmers.
We forget that Nigeria is a highly consuming nation, we do very little
of production and hardly export. Focusing our attention solely on oil
exploration, as a Nation, there are other ways we can grow and
agriculture is a high employer of labour.
“If an average family is self-sufficient regarding their feeding,
other issues become minimal. The reason people commit all sort of
atrocities at times is because they cannot bear to see their family go
hungry.” She continued “the government has been looking elsewhere,
putting so much money into oil exploration and telecommunications with
very little attention to agriculture. The government of Nigeria should
go back to times we had initiatives such as; Operation Feed the Nation,
as a Country, we need to be self-sufficient at least when it comes to
our food.”
Advising the government, Mrs. Falade said she believes the government
should be more involved in agriculture, re-instating that nobody can
live without food, “the community in which our farm is located do not
have electricity but it is still existing, but the community could never
have survived without food. The government is cutting off the subsidy
on fuel and people are still surviving, this subsidy should be for farm
produces instead.”
She also mentioned the non-availability of regulatory bodies for
agricultural products. “In my experience with poultry, business men
bring in chicks; parent stocks from who knows where, but because there
are no standards, no body to check if the chicks meet the criteria
before they sell out, we get bad deals.”
The co-owner of Eltoda farms further lamented that oftentimes farmers
‘burn their fingers’ in investments without any form of profit to show
forth, “having fed the chicks for 20 or 21 weeks, expecting them to lay
eggs, you will realize the chicks are not healthy”.
“We do not have government cover. If you sell bad chicks to me and
there is a body I can report to, and you would have to return part of my
money or anything, then you will be more careful next time.”
She also gave examples of times when she had gotten vaccines for her
hens, which was supposed to maintain a ‘cold chain’ hence it loses
potency, only for it to cause a relapse in the hen, “they sold to us
failed vaccines!”
Mrs. Falade pleaded with the government to protect farmers and the
banks should also be willing to help by getting more involved in the
processes of agriculture, “they should visit our farms, speak with us
and know what we are faced with in order to be able to offer us
something beautiful for an average farmer.”