Between fast foods and cardiovascular diseases

Lets digress a little.

Between fast foods and cardiovascular diseases
By Akor Ojoma

Due to the overwhelming need to have many things done fast these days, time has become golden, thus the need to eat fast and on the go has been answered by fast foods.  The lure of fast foods is the speed with which the food is produced.
The temptation to take the easy way and eat fast food is strong especially if you are tired of work and are in no mood to cook. Fast foods do not only mean hamburgers and French fries but other foods that are usually cooked with oil and have considerable amounts of unhealthy fats in them too. Some pizzas can be considered fast foods as well as some Chinese takeout foods.

However, fast foods and cardiovascular diseases (that is diseases relating to the heart and blood vessels) go hand in hand. The link between fast food and heart disease is very real and medical practitioners have long been warning people regarding the implications of eating too much fast food without any proper form of exercise.

According to medical experts, there is strong correlation between unhealthy eating habit, our lifestyle and cardiovascular diseases. They say the high rate of cardiovascular diseases among the youths these days is because they are not eating healthily and exercising enough. Parents who delight in feeding their kids on fast foods are advised against it.

Managing director of  Emzor Pharmaceuticals and Chairman Chike Okoli Foundation, a foundation championing the crusade on healthy eating and exercise, Chief Stella Okoli said, “these days it is fashionable to eat foods with chemicals and many fats, thinking we are enjoying but are rather  killing ourselves gradually. We should exercise more, eat more natural foods and patronise less of fast foods” she said.

The World Health Organization says “cardiovascular diseases include coronary heart disease that is heart attacks , cerebrovascular disease, raised blood pressure  also called hypertension, peripheral artery disease, rheumatic heart disease, congenital heart disease and heart failure. The major causes of cardiovascular disease are tobacco use, physical inactivity, and an unhealthy diet.”

Globally, cardiovascular diseases are the number one cause of death and are projected to remain so. An estimated 17.5 million people died from cardiovascular disease in 2005, representing 30 % of all global deaths. Of these deaths, 7.6 million were due to heart attacks and 5.7 million due to stroke. About 80% of these deaths occurred in low- and middle-income countries. If current trends are allowed to continue, by 2015 an estimated 20 million people will die from cardiovascular disease, mainly from heart attacks and strokes.

There are multiple risk factors associated with cardiovascular diseases such as high blood pressure, smoking, diabetes, high cholesterol, physical inactivity, obesity and such people need to beaware and make life style changes  to prevent it at all cost.

The link between fast food and heart disease lies in several factors such as the quality of the food, the way the food is cooked and the frequency of the fast food meal.

Quality of food

Hardly any fast food chain serves lean meat. Others use meat which may have fats mixed with them. The reason why fast food and heart disease work out dangerously is that the fats contained in the food are usually animal fats. These can add to plaque and fatty deposits in arterial walls. Fats can also affect the quality of our blood and being obese can construct out blood vessels and arteries.

The way fast foods are cooked

The way fast food is cooked also contributes to the link between fast food and heart disease. Primarily, the kind of oil used to fry the hamburger pastries and French-fries can contribute to heart disease. Re-using the oil can also affect people not only in the aspect of heart disease but also in other forms of diseases. Cancer is one disease that can be triggered by using oil too many times.

Symptoms of cardiovascular diseases

Often, there are no symptoms of the underlying disease of the blood vessels. A heart attack or stroke may be the first warning of underlying disease.

Symptoms of a heart attack include: pain or discomfort in the centre of the chest; pain or discomfort in the arms, the left shoulder, elbows, jaw, or back. In addition the person may experience difficulty in breathing or shortness of breath; feeling sick or vomiting; feeling light-headed or faint; breaking into a cold sweat; and becoming pale. Women are more likely to have shortness of breath, nausea, vomiting, and back or jaw pain.

The most common symptom of a stroke is sudden weakness of the face, arm, or leg, most often on one side of the body. Other symptoms include sudden onset of: numbness of the face, arm, or leg, especially on one side of the body; confusion, difficulty speaking or understanding speech; difficulty seeing with one or both eyes; difficulty walking, dizziness, loss of balance or coordination; severe headache with no known cause; and fainting or unconsciousness.

People experiencing these symptoms should seek medical care immediately.

Prevention

The Word Health organization advises that  being overweight increases the risk of heart attacks and strokes. To maintain an ideal body weight, take regular physical activity and eat a healthy diet. Eating at least five servings of fruit and vegetables a day, and limiting your salt intake to less than one teaspoon a day, also helps to prevent heart attacks and strokes. Cessation of tobacco use reduces the chance of a heart attack or stroke.

It also advises:

“Have your blood pressure checked regularly. If you have diabetes control your blood pressure and blood sugar to minimize your risk. Heart attacks and strokes can strike suddenly and can be fatal if assistance is not sought immediately.”

Experts also advises that to prevent heart diseases through healthy eating one should limit unhealthy fats and cholesterol.

“The best way to reduce saturated and trans fats in your diet is to limit the amount of solid fats — butter, margarine and shortening — you add to food when cooking and serving. Use low-fat substitutions when possible for a heart-healthy diet. Also choose low-fat protein sources like lean meat, poultry and fish, low-fat dairy products and egg whites or egg substitutes are some of your best sources of protein. But be careful to choose lower fat options, such as skim milk rather than whole milk and skinless chicken breasts rather than fried chicken patties. Fish is another good alternative to high-fat meats. Legumes — beans, peas and lentils — also are good sources of protein and contain less fat and no cholesterol, making them good substitutes for meat. And finally eat more vegetables and fruits.”

By Akor Ojoma

The giant strides of Nigeria's food and beverage sector

The food and beverage sector of the Nigerian economy, though making progress, still has room for improvement to be able to compete favourably with its foreign counterparts. With sixteen companies listed in that subsector of the Nigerian Stock exchange, four flour mills in particular have proved to be good investment for the shareholders.

Opeyemi Teller, of Greenwich Trust Limited said "The food and beverage sector of the Nigerian economy is a thriving one. The capacity utilization, which is the rate at which manufacturing companies are able to use their raw materials in the installed capacity for production in the food, beverage and tobacco sub-sector, is now peaked at 50 per cent. This make the sub-sector most developed in the manufacturing sector as at the last survey/research conducted".

According to her, taking into consideration the agrarian background of Nigeria, the food, beverage and tobacco sub-sector is perhaps the most developed in the manufacturing sector of the economy in terms of huge investment committed to it over the years.

The funding survival

Nigeria's food and beverage sector has been taking impressive steps in sourcing for funds, the latest being the recent N70 billion bond issuance by Flour Mills of Nigeria, the largest flour mill in the country.

With this move which was executed late last month, the company stands as the first outside the banking sector to launch a bond in recent years with a book building for the five-year, fixed-rate unsecured bonds.

"The issue was overwhelmingly subscribed to, with a total of N49.8 billion in bids being received from a varied composition of investor types (banks, pension funds, asset managers and insurance companies)" a statement from the company said.

Although, Flour Mills targeted an initial issue amount of N35 billion, the company accepted bids up to 12 per cent, for a total amount of N37.5 billion.

The flour and pasta maker said it would use the proceeds for refinancing existing loans and funding new ventures in its foods business. Flour Mills, which has a production capacity of 6,000 tonnes of flour per day, said two weeks ago that its first-half pre-tax profit rose by more than a quarter to N8.9 billion.

The Group Treasury Director of the company, Vlassis Liakouris, said "With the advent of this bond issue and inclusion of long term debt in our capital structure, the working capital adequacy and financial flexibility of the company is greatly improved".

According to him, the benefits of the firm's expansion will also significantly enhance its cash flow generating capacity adding that the firm has successfully diversified its funding base to include non-bank institutional investors. The bond is also meant to refinance its existing term loans, expand its business operations and augment its working capital shortfall.

Even though it is the first of the lot to open its books to bonds, Dangote Flour Plc following closely at its heels recently released strong profit growth driven by improved operations in its nine months results.

Dangote mills reported a turnover up by 15.4 per cent to N54.3 billion (US$358.2m) from the N47.0 billion (US$310.4) recorded in the commensurate period of 2009. Profit before tax went up by 24.9 per cent to N7.1 billion from N5.7 billion in the 2009 quarter, while profit after tax grew by 24.5 per cent to N7.0 billion. Profit before tax margin increased slightly to 13 per cent from 12 per cent in the corresponding 2009 quarter.

Experts say the company's continuous focus on cost reduction has translated into improved operational efficiency. Its capacity expansion project is still on-going and is aimed at achieving 7,300 metric tons per day. Dangote Flour is at the final stage of commencing direct and indirect exports to Chad, Cameroon, Niger and Sudan which is expected to boost the company's performance.

Is bond it?

Even though Nigeria removed all taxes on corporate debt issues and cut transaction fees earlier this year, allowing firms to raise capital on the bond market at lower coupon rates and offer tax-free returns to investors, investors and stakeholders are still apprehensive if indeed bond is the way out.

With the firms seeking new means of financing, it is envisaged that more of the firms may divert to bonds, if it works for the pioneer.

Finance experts however say the bond issue is positive but it comes at a price.

Tajudeen Ibrahim, a research analyst at Stanbic IBTC said bond issuing is a positive step and that investors' concerns can be regarded as excessive, especially in the short term.

"Although the timing of this issue is disappointingly late given that interest rates have climbed in the past two months, we believe it is still positive for Flour Mills of Nigeria for the following reasons: First, cost savings on lower interest rates relative to previous outstanding debt; and then, it will foster the focus and execution of long-term strategy aimed at improving net earnings. In view of Flour Mills's plan to refinance existing debt, net borrowings are N14 billion" he said.

"The issue comes at a price due to weaker earnings per share in the medium term owing to higher interest expenses; and covenants that limit Flour Mills ability to borrow beyond a certain threshold. We believe that investors' concerns over the increase in Flour Mills leverage in the short term is excessive, bearing in mind the company's ability to repay debt from future cash flow," he added.

Room for improvement

Despite the thriving strides, finance experts say a lot of opportunities still abound for the sector to take advantage of.

"Even at its present state, a lot of investment opportunities still exist in the sub-sector due to Nigerian's comparative advantage and potential for the production of all primary raw materials required in the sub-sector and the apparent shortage of capacity to meet the demands of existing industries" Ms Teller said.

The food, beverage and tobacco sector has consistently remained the sectoral leader on a year-to-date basis return on the Nigerian Stock Exchange, and it is currently second mostly capitalised sector with N2.29 trillion market capitalisation after the banking sector.

Nigeria is the 3rd largest importer of wheat in Africa, importing an estimated 3.7 million metric tons is 2009. A bulk of these wheat imports come from the US and Canada and account for 80 per cent of the Cost of goods sold (COGS) of flour production.

To promote the local milling industry, the Federal Government maintains a 35 per cent import duty on wheat flour, while raw wheat attracts a duty of 5 per cent. The Nigerian Flour Milling industry has a highly concentrated structure. It is made up of 11 millers, 4 of whom account for 88 per cent of industry's total production.

The total milling capacity in the industry is estimated at 6.5million tons per annum, with an average capacity utilisation of 50 per cent. This statistics include obsolete and inefficient mills, which are uneconomical to operate.

Flour Mills is the largest flour milling company in the industry. The Company has production capacity of 6,000 tonnes per day and has highly diversified income streams. The second largest company in the industry by capacity and market share is Dangote Flour Mills. Honeywell Flour Mills, which started operations in 1995 has carved a niche in the industry and grown the company's market share. Crown Flour Mills Nigeria is one of the oldest players in the industry with 85 years of experience.

Experts say government's import ban on packaged noodles has supported increased demand of pasta from local manufacturers.

http://234next.com/csp/cms/sites/Next/Money/Business/5652585-147/the_giant_strides_of_nigerias_food.csp

PRODUCE OF NIGERIA

PRODUCE OF NIGERIA

INTRODUCTION

Nigeria produces a wide range of agricultural commodities, which could serve as raw materials for industrial production in Europe, Asia and Latin America. Top on the list of agricultural commodities in Nigeria are Cocoa, Cotton, Accha, Soya beans, Sorghum, Maize, Cassava, Gum Arabic, Ginger, Sesame Seeds, Sheanuts, Cashew nuts and Cowpea.

While the tree crops such as cocoa and cashew are produced in the southern pan of the country, cereal crops such as soya beans, sorghum, maize, sesame seeds and cowpea are produced in the savannah belt in Nigeria. Also produced in the savannah belt are ginger, gum Arabic and sheanuts.

With the Nigerian Government's current efforts at increasing output in the agricultural sector, more volumes of agricultural produce are available for external trade.

Below is synopsis of the production areas and uses of the major agricultural products of Nigeria.

Soybean

Soybean (Glycine Max) is a legume which is produced in the middle belt of the country of which Benue State is the largest producer in Nigeria. It produces about 48% of the total natural output of 352,000 metric tonnes per annum.

Soybean is an important source of high quality and inexpensive protein and oil. With an average protein content of 40% and oil content of 20%, soybean has the highest protein content of all food crops and is second only to groundnuts in terms of oil content amongst food legumes.

The oil produced from soybean is highly digestible and contains no cholesterol. Soybean is the largest single source of edible oil and accounts for roughly 50% of the total seed oil production worldwide. Nigeria has only one variety of soybeans which is yellow in colour.

Soybeans is used for production of milk, edible oil and animal feeds. It is also useful in the treatment of malnourished children particularly in the sub-Saharan, Asian and Latin American countries.

Cocoa

Cocoa (Theobroma Cacao) is the second major non-oil foreign exchange earner in Nigeria after leather. It is produced in 16 states of the federation namely Ondo, Cross River, Oyo, Osun, Ekiti, Ogun, Edo, Kogi, Akwa Ibom, Delta, Abia, Kwara, Ebonyi, Rivers, Taraba and Adamawa with an annual production of 400,000 metric tones however 98% of this is exported. It provides means of livelihood, sustenance and employment opportunities to over five million Nigerians, In the year 2005 alone, export revenue from the sale of cocoa amounted to US$136.7 million.

Nigeria along with Cote d'lvoire and Ghana all in West Africa, account for about 70% of the world's cocoa production.

Major market destinations for Nigeria's Cocoa are: Netherlands, U.K., France, Germany, Spain, Italy, USA and Japan. Other markets being explored are the emerging economic powers of China and India. Stakeholders in the cocoa sub-sector in Nigeria are: Stanmark Nigeria Ltd, Olam Nigeria Ltd, Export logistics Ltd, Nivik Investments Ltd and Multitrex investments Limited.

Cotton

Cotton (Gossypium) is a major agricultural and industrial crop in Nigeria, providing employment and means of livelihood to about 2 million Nigerian families. A total of 24 states of the Federation produce cotton namely: Katsina, Zamfara, Gombe, Kaduna, Kano, Sokoto, Kebbi, Niger, Plateau, Jigawa, Yobe, Bauchi, Borno, Adamawa, Kwara, Taraba, Nasarawa, Kogi, Benue, Ekiti, Oyo, Ondo, Osun and Ogun. The average annual production is about 250,000 metric tonnes against a total world production of 20.5 million metric tones.

Major market destinations for Nigeria's cotton are the EU, China, South Korea and Taiwan.

Major stakeholders in the cotton sector in Nigeria are: Olam Nigeria Ltd, Nigeria Seed Cotton Ltd, West African Cotton Processing Company, National Seed Service and AFCOT Nigeria Ltd.

The crop has occupied a strategic position in the economic activities of Nigeria, providing both food and fibre for the rapidly expanding vegetable oil and textile industries in the country. Thus unlike cocoa, cotton has a strong backward linkage with domestic industries which consume up to 50% of the total annual production.

Cassava

Cassava (Manihort Esculentus (Euphorbiacea)) is grown in all the states of the Federation with the current production level being about 45 million metric tonnes per annum; a figure expected to double by 2020. Nigeria is the leading cassava producer in the world, producing a third more than Brazil and almost double the production capacity of Thailand and Indonesia. Although it is the world leader in cassava production, 90% of the annual production in Nigeria is targeted for the domestic food market.

The Nigerian Presidential Initiative on Cassava, which was launched in 2003, brought cassava and its potentials to the national limelight. This initiative created tremendous market opportunities both at home and abroad. There is now increased use of cassava as industrial raw material by feed mills, starch producers, chips and pellets, ethanol, glucose syrup as well as cassava four for bread making.

The business opportunities created has led to increased local investments in the cassava processing industry such as the Cassava Glucose Syrup Factory which when commissioned would require 132,000 metric tonnes of fresh cassava tubers annually to produce 26,000 metric tonnes of glucose syrup. There is also the Cassava processing factories for flour, and starch in various pads of the country.

There are opportunities for Nigeria to earn about US$12 billion per annum from cassava and its bye-products. Cassava has the potential to industrialize Nigeria more than any other product if its potentials are properly harnessed, cassava will not only be a white gold but an alternative to oil as a non-oil foreign exchange earner and a key instrument for job creation and catalyst for development.

Gum Arabic

Gum Arabic (Acacia Senegal) is grown in the Sahelian zone of the country, covering 14 States of the Federation namely Borno, Yobe, Jigawa, Bauchi, Gombe, Taraba, Plateau, Adamawa, Sokoto, Kebbi, Katsina, Zamfara, Nasarawa and Niger with an estimated population of 4 million Nigerians engaged in its cultivation and trade. Gum Arabic is a natural gum that exudes from the exterior of Acacia trees in the form of dry, hard nodules. There are over 1,100 Acacia species worldwide. However Acacia Senegal and Acacia Seyal are the most commercially exploited species. Nigeria has three grades of Gum Arabic, Acacia Senegal (grade 1) Acacia seyal (Grade 2)and Combretum (Grade 3).

The major Acacia utilized for commercial Gum Arabic production in Nigeria are Acacia Senegal and Acacia seyal.

Nigeria is the 2nd largest producer of the crop in the world after Sudan with average production of 20,000 metric tonnes of all grades of Gum Arabic. In the year 2004, world production of Gum Arabic was put at 70,000 metric tonnes while Nigeria's production amounted to 18,935 metric tonnes with export earning of US$88.08 million, Due to the ability of the Gum Arabic tree to withstand adverse environmental conditions, it has become a potent weapon in the continued fight against desertification and environmental degradation in the Sahelian belt of the country.

Gum Arabic is used as thickener, suspender, emulsifier, stabilizer, flavour carrier, binder and encapsulating material. In addition, it is used in confectionaries, food, beverages, pharmaceuticals and chemical industries. Major markets for the product are: Belgium, China, USA, U.K and Japan.

To sustain the supply of Gum Arabic to both local and international markets, efforts are being made to establish a Gum Arabic Security Stock in the three leading producing countries (Sudan, Nigeria and Chad) with the support of the GAO, Network for Natural Gums and Resins in Africa (NGARA) and Association of International Producers of Gum Arabic (AIPG). This will lead to rapid development of natural gum as a national resource for fighting poverty, desertification and environmental degradation.

The National strategy for Gum Arabic is to encourage local value addition through increased local processing in order to attract better returns on investments. This is more so considering the fact that for every one kilogramme of processed Gum Arabic there is value added of US$5.00. Thus, apart from providing more income, local processing creates job opportunities thereby empowering our people.

Ginger

Ginger (Zingiber Officinale) is produced in six states of the Federation namely, Kaduna, Nasarawa, Benue, Niger and Gombe with Kaduna as the major producer. Nigeria's production in 2005 was estimated at 110,000 metric tonnes (FAO). Out of this, 10% is locally consumed as fresh ginger while 90% is dried primarily for the export markets.

The commodity is highly valued in international markets for its aroma, pungency and high oil and Aleo resin content. Nigeria is the third largest exporter of ginger in the world after China and India.

Ginger is an important Nigerian export crop. The major market destinations are the UK, USA, Japan, Canada, Belgium, Germany and the Middle East.

The major stakeholders are Belphins Nigeria Limited, Goldchains International and Olam Nigeria Limited.

Sesame Seed

Sesame seeds (sesamum indicum) belong to the plant family Pedaliaceae. it is an important oilseed crop believed to have originated from tropical Africa. 25% of world sesame seed hecterage is planted in Africa and Nigeria is one of the major producers of sesame seed in Africa. It is found predominantly in Benue and Jigawa States in Northern Nigeria. It is one of the oldest food and cash crop in Nigeria which is produced in 21 states of the Federation. The commodity ranks second to cocoa in terms of volume of export and foreign exchange earnings. Global production in 2005 was put at 2.4 million metric tonnes with China and India as leading producers. Nigeria is the 5th largest producer of the commodity in the world with an estimated production of 120,000 metric tones annually.

Global export for the commodity amounted to 900,000 metric tonnes while Nigeria exports about 80,000 metric tonnes annually valued at US$68.0 million. Major market destinations for Nigeria's sesame seed are: Japan, EU, Korea, China, Turkey and the Middle East.

Sesame seed is used for oil, roasted seed, soup, spice, seed, confectionary, industrial raw material for pharmaceuticals, cosmetics soap etc.

Sheanut

The shea tree (Butyrospermum Parkii) is a precious natural resource which grows in the wild across the Sudan-Sahelian region of Africa. The major producing countries are: Nigeria, Togo, Benin, Ghana, Uganda, Mali, Burkina Faso and Central African Republic. Nigeria is currently the leading producer of sheanut in the world and in 2004 Nigeria's production of the commodity was 414,000 metric tonnes with export value of US$61.04 million (Source: FAO).

Apart from its role as an important raw material shea butter is used in the manufacture of chocolate and other confectioneries. It is also used in the cosmetics and pharmaceutical industries. Major destinations for Nigeria's sheanut are the EU and Japan while for the shea butter are Asia, Europe and the Americas.

Cashew

Cashew (Anacardium Occidentale) is produced in 28 states of the Federation and the Federal Capital Territory (FCT). In 2004, Nigeria's production of cashew amounted to 60,660 tonnes out of which, 30,510 tonnes were exported at a value of US$22.27 million. With the present emphasis of the Nigerian Administration on the development of non-oil export programmes, cashew industry is experiencing a major turn around.

Major stakeholders in the cashew industry in Nigeria are; Cocoa Research institute of Nigeria (CRlN) Cashew Association of Nigeria (CAN), Olam Nigeria Ltd. Safari Trade Ltd Abdulson Nigeria Ltd Fagro Venture Nigeria Ltd Asia Commodities Nigeria Ltd, Century Export Ltd, LMB O'sea Nigeria Ltd and Seacon Nigeria Ltd.

The main export destination for Nigeria's cashew is India. Others are Vietnam, South Africa, U.K. and USA.

Other Produce

Other produce are Maize Accha (Digitaria exilis), Cowpea (Vigna unguiculata), Maize (Zea Mays) Sorghum (Sorghum Bicolor (L) Moench). Sorghum (Sorghum Bicolor (L) Moench). These crops are grown in the savannah regions of Nigeria. They each have two varieties, white and yellow, although Accha is white and brown.

(i) Accha (Digitaria exilis) is grown in the Central and North Eastern parts of Nigeria. It is consumed mainly as a cereal. The grain tastes similar to rice. It may be consumed directly, cooked in porridges and four creams similar to grits and wheat cream.

(ii) Cowpea (Vigna unguiculata) is a grain legume largely grown in the northern part of Nigeria which has a savannah type of vegetation with light rainfall. Nigeria is the world's largest producer of cowpea, as it produces over 2.7 million metric tonnes of cowpeas with an average yield per hectare of 417 kg. It produces the white and brown varieties.

(iii) Maize (Zea Mays) is grown in all parts of the country as it is a versatile crop that grows across a range of agro-ecological zones, though it is grown slightly more in the Northern pad of the country. Two types of maize are grown in Nigeria Yellow and White. Maize apart from being eaten as it is on the cob, is used as food in form of porridges Corn fakes and popped grains. However, more than 60% of Nigeria's production of maize is consumed by the industrial sector for production of flour, beer, malt drink, corn flakes, starch, syrup, dextrose and animal feeds.

(iv) Sorghum (Sorghum Bicolor (L) Moench) is a grass of East African origin, which is grown in the North of Nigeria. Sorghum is the 4th important cereal after wheat, rice and maize and is used as a maize substitute for livestock feeds because of their similar nutritional values. It is also used for distilled beverages, Condiments, ethanol and alcoholic beverages.

http://www.nigeriaembassy.cn/eco/PRODUCE%20OF%20NIGERIA.htm

Nigeria low on fruit exportation

Prices of fruits have gone up in the country as a result of the on going Ramadan. Fruit is a major component of fasting, observed by Muslims during the month of Ramadan. Nigeria is a major player in fruit production.

Figures from the Food and Agriculture Organisation, indicate that as at 2007, the country produced about 73,000 tonnes of mango, which is about 2.6 percent of the world production. Nigeria is thus the eight largest producer of mango on the production table.

Other notable fruits produced in the country in high quantity are pawpaw in the citrus family, with Nigeria as the third largest producer, pineapples, and guavas.

Despite all these however, Nigeria is rarely mentioned when it comes to fruit export because most of the fruits produced in the country do not leave the farmland where they are planted, nor do they get outside the shores of the country.

An orange trader Mutiyat Balogun, who brings the commodity to Lagos from the neighbouring western states said Nigeria was not ready to export its fruits because majority of those planted in the rural areas do not get to the urban centres.

Wasted fruits

"Most of these fruits do not leave the farmlands because the roads are not good. We only buy fruits where we can get trucks to pack them. When you get to the interior parts, you will see many rotten fruits on the trees with birds pecking on them and others falling off. This is also discouraging farmers because they do not make profits from them. Most farmers are now cutting the trees in their farms for other produce," she said.

As a result, Mrs. Balogun said the prices are high especially in the urban areas, such as Lagos.

She also identified the method of transporting the product from the countryside to the city as cumbersome and wasteful.

"We lost most of the fruits that leave the farm to heat during transportation," she said. The government should help find a better means of transporting these fruits. Most of the fruits are also thrown away at the market if we don't get quick buyers for them. With all these problems there is no way the prices won't be high."

A survey conducted by NEXT showed that prices of fruits have recorded an increase due to high demand especially during the Ramadan season. A small orange goes for between N20 and N30, while four are sold for between N100 and N150.

A small pineapple which was sold for N50 last month now sells for between N80 and N120. A pineapple seller at the Berger market, Wasiu Sani said the rise in demand is responsible for the price increase.

"Most people who do not buy fruits are now buying because of the fasting period and this has increased the demand for fruits. That means we have to go to the market often to be able to supply them and the traders to will be travelling more often. Fruits are usually more expensive at this time because of the increase in demand," he said.

Mrs. Balogun said Nigeria will not be able to export fruits if government does not rehabilitate roads leading to the farms.

"The roads that lead to the farms are very important because if you cannot get them how do you export? The storage facility is also important especially for most fruits market because it will help us preserve them from getting spoilt. If we have all these facilities, we can then talk about exporting. Of what good is there to export when most of the fruits will get spoilt before getting to the final destination?" she asked

http://234next.com/csp/cms/sites/Next/Money/Business/Agriculture/5458749-147/story.csp

Cocoa grinding slumps as demand drops

Nigeria's cocoa grinding capacity has slumped over 75 percent to about 25,000 tonnes per annum in the last two years due to falling demand for processed products from Asia and the West, an industry body said on Thursday.

The Cocoa Processors Association of Nigeria (COPAN) said capacity utilisation has dropped from over 100,000 tonnes since 2008, with only eight factories partially operational.

The world's fourth-biggest cocoa grower had about 18 grinders processing around 230,000 tonnes a year in 1986 when the sector was deregulated, but the industry has since fallen on hard times.

Before the global economic meltdown, the biggest problems cocoa processors in Nigeria faced were erratic power supply from the national grid and the high cost of fuelling generators.

"Nigeria's processing capacity is now down to about 25,000 tonnes per annum due to a lot of issues, including the bad global economy," COPAN secretary Felix Oladunjoye told Reuters in an interview.

The global credit crisis had led to a big cut in demand for cocoa products -- butter, liquor, powder and cake -- from Western and Asian markets, Oladunjoye said.

He said most European chocolate makers had changed their buying strategies. Instead of stockpiling products as in the past, they now prefer to buy raw beans to crush in their own factories.

"Most factories have now changed their buying strategies because there is not enough money to tie down stocks. This is affecting demand for products and also international orders," Oladunjoye said.

Lack of EU trade hits sector

The failure of Nigeria to sign a trade deal with the European Union since 2008 has also all but crippled local processing, he said.

The EU imposed tariffs on cocoa products and other exports from Nigeria after Africa's top oil and gas producer declined to sign an economic partnership agreement, EPA, by a Dec 31, 2007 deadline.

This has badly hit the Nigerian cocoa sector's ability to compete with regional rivals Ivory Coast, Ghana and Cameroon, all of whom had signed trade deals with the European trade bloc to maintain preferential access for their products.

Local processors are losing a minimum of $400,000 (N60million) monthly or nearly $5 million a year in duty liabilities, a burden Oladunjoye said was too heavy for COPAN members to carry.

Nigeria has held fast in its refusal to sign an EPA, which the EU demanded to make its long-preferential trade with Africa, Caribbean and Pacific former colonies compliant with the World Trade Organisation.

Nigeria argued that its fragile manufacturing industries were simply not ready to compete on a more equal basis with imported European goods under EPA.

But the Common External Tariff of the Economic Community of West African States (ECOWAS), which allows duty-free cross-border movement of goods, seems to have eroded whatever benefits Nigeria had hoped to derive by rejecting the EPA.

Another factor that has nearly killed domestic cocoa crushing is the long delays in the payment of the Export Expansion Grant (EEG) by the government, Oladunjoye said.

The EEG is an export promotion incentive that seeks to promote local industry by offsetting 30 percent of production costs on all processed exports.

"The late payment of the EEG is causing a lot of problems. That of 2008 has just been released, nobody knows when that of 2009 will come, not to talk of 2010," Oladunjoye said.

The COPAN secretary said because of the numerous challenges confronting the sector, most Nigerian grinders had turned to the export of raw cocoa beans, which is more profitable.

http://234next.com/csp/cms/sites/Next/Money/Business/Agriculture/5630708-147/cocoa_grinding_slumps_as_demand_drops.csp

REUTERS

Future is charcoal export business

If you are searching for a way to make money from export, your search has ended.

Managing Director, Kenneth Ezeji & Associates Limited, Kenneth Obi, said charcoal is one area of non oil export which has the potential to generate thousands of euros and that many Nigerians are now successful entrepreneurs since they discovered the gold mine.

Though, one of the nation’s biggest export earner, it cost no fortune to set up and there is no shortage of market overseas. Added to this, one can run it from home.

Given the right mentorship, Obi said the business is simple to start and in huge demand that anyone can make money doing it.

He said Germany, Belgium, Greece the Netherlands, Italy, Poland, Spain, Bulgaria and UK are as substantial importers of charcoal. As charcoal is an essential commodity in Africa, it is one of the most important sources of alternative fuel across Europe. Consumption is put at eight million tonnes of pellets annually. The largest exporters of charcoal in the EU are Poland, France Holland Germany and Belgium. They buy and sell to the rest of Europe.

The volume of imported charcoal needed in Europe vary from one country to another.

The total level of volume of exports from Nigeria, he noted can not satisfy the demand in the European market.

Although the market is served from a number of competitive countries, Ezeji said exports from Nigeria, and other African countries are highly ranked because of the hard nature of the charcoal. He said European importers prefer charcoal produced from hardwood in Africa which is heavy and strong. Competitors are Malaysia, Indonesia, Brazil and Thailand. According to him, the quality of charcoal depends on the wood species.

He said companies overseas can absorb any volume and that all the companies in Nigeria cannot meet the demand of the Europe market.

Nigeria, he said has vast forest area that can produce thousand of tonnes of charcoal annually.

According to him, though there are charcoal sources in Europe, most of them are made from softwood and are soft and light. Apart from that, they are bad conductors of heat and electricity, and burns without flame.

Today,there is increased usage of charcoal. Besides being the fuel that cooks steaks, hotdogs, and hamburgers ,a number of companies have discovered that charcoal can be used in certain metallurgical purifying treatments and as a filter to remove organic compounds such as chlorine, gasoline, pesticides, and other toxic chemicals from water and air.

The export consultant said the nation would benefit from intense activities to boost charcoal export as an economic driver and that there is minimum capital needed to establish the business which will stimulate the local economy.

He said the overhead is small. Compared to agro commodities exports, he said an small, investment is needed. He said if one is starting small two equipments are needed - a scale and a moisture meter and storage area is needed near the production site.

An initial investment of N615, 000 will cover the cost of product sourcing and landing the charcoal at the product. The money will be enough to acquire enough charcoal that will fill a 40-feet high cube container, weighing 23 tonnes. Charcoal from the south west part of the country would always provide required tonnes. But if the charcoal is sourced from Benue, Obi said one would require 27 tonnes to fill a 40-foot container, unlike the South West where only 23tonnes would fill a 40-foot container.

The rate of returns is high .According to him, one can make between 170 and 185 euro per tonne-free on board (FOB) using the Lagos port for a case example.

His words: You can turn your investment ten times within one year and profit in each trip is between N250, 000 and N270, 000.

Where individuals cannot raise the initial capital, he said they can form cooperatives and do the business.

He said no theoretical training is needed but practical which involves where to source for the goods and workable strategies to deploy.

Obi said the markets are gradually growing and that households in Europe prefer it as a relatively clean fuel for their fireplace and furnace if of local carbon content.

He said the challenge is building the capacity of the exporters to explore the markets and that his company is ready to train the entrepreneurs and encourage new ones to export charcoal to the European market. The programme includes charcoal sourcing and packaging.

The training, he said, will expose the prospective exporters to what is required to pass the products successfully through checks, the mandatory export papers.

Obi said his company has tested different strategies to help people break into the business as proprietors of small scale outfits.

Urging the government to promote charcoal exports as a means of creating wealth through exports of non-oil products, Obi sees the business generating several employment opportunities and engaging a fair level of participation of both youths and adults in the nation.

According to him, charcoal export can provide longtime income for Nigerian entrepreneurs who are will to participate.

Unlike agro produces, the export consultant said the business is not seasonal and that the cycle can last for 10 months.

According to him, it is only between July and September that a marginal drop is recorded as a result of the rains and that during winter, companies are involved in maintenance of the machines in Europe and this might affect their readiness to accept imports.

As the search for alternative fuel grows, the market for charcoal is expected to keep pace. This leaves no dull moment for Nigerian companies seeking f opportunities for mega growth.

For Obi, charcoal business is not just for big businesses anymore. He said big companies are reaping the benefits and so small start-ups. According to him, the opportunity is within the grasp of every small business owner but with passion for export.

The charcoal industry, he indicated is a sustainable opportunity and engine for meaningful and sustainable socio-economic development at the household and national levels.

In Africa, charcoal business is worth more than $1billon a year in terms of employment, rural livelihoods and the wider economy.

He sees potential for new entrants flourishing in an atmosphere of little or no competition.

http://thenationonlineng.net/web2/articles/20326/1/Future-is-charcoal-export-business/Page1.html

Sesame Seed Export

The Nigerian export Promotion Council said that the production of sesame seed in the country would rise to 200,000 metric tonnes by 2012.

The acting Executive Director and Chief Executive Officer, NEPC, Mr. Aliyu Lawal, said this at the take-off of the 2007 programme on Boosting Sesame Seed Production for Export held in Lafia, Nasarawa State .

Lawal said that increased production would boost the nation’s earnings as the crop was the second highest export crop next to cocoa.

He said Nigeria could attain the 200,000 metric tonnes given the overwhelming potential of the crop and the interest shown by various state governments such as Katsina, Kebbi, Sokoto and Zamfara to cultivate the crop.

He said world trade in sesame seed was estimated at about $600m annually, “and it is worthy to note that Nigeria ranks second to Sudan in terms of production and marketing of the crop in Africa.”

“It is against the background that we urge government and other producing states especially our farmers, to rise up to these challenges of making sesame seed the highest export crop in Nigeria by sustaining the benefits of the project,” he added.

He stated that between 2005 and 2007, the production of sesame seed rose from 30,000 metric tonnes to over 45,000 metric tonnes in Nasarawa State while national production figure stood at about 120,000 metric tonnes.

According to him, the programme was intended to inculcate best practice principles and skills in production techniques to farmers, generate employment, alleviate poverty, guarantee direct market access and reduce middlemen exploitation.

He explained that the project was a collaborative effort between the state government, the council, Olam Nigeria Limited, federal ministries of commerce and industries and agriculture and the National Sesame Seed Association, and was aimed at addressing production constraints.

He implored the state government to put necessary machinery in place to sustain the programme as it would lead to wealth creation, poverty eradication and job creation.

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Nigeria currently earns about $20m annually from the export of sesame seeds, the Director General, Raw Materials Research and Development Council, Prof. Peter Onwalu, has said.

Statistics from the Federal Government showed that Nigeria recorded 138 per cent drop in non-oil export within the first nine months in 2009 when compared with the revenue it generated within the same period in 2008.

According to the latest report on the contribution of the non-oil sector to the Nigerian economy, a copy of which was obtained by our correspondent, ”The total income generated from non-oil export from January - September 2009, stood at $900m while total amount accrued to the country from the sector in 2008 was $1.9bn”

But speaking during the presentation of seeds to farmers at the RMRDC Headquarters in Abuja on Wednesday, Onwalu noted that the agency was working in collaboration with local research institutions, under the Agricultural Raw Materials Boosting Programme, to provide sufficient raw materials for domestic use and for export.

He also said that RMRDC was currently working on the modalities for the establishment of raw material processing clusters in all the local government areas across the country in order to add value to agro-products both for domestic consumption and export market.

He said, ” The annual exports of sesame seeds from Nigeria are valued at about $20m. Nigeria is the major supplier of sesame seed to Japan , which is the largest importer of the product.

”However, the country has the potentials to beat Sudan in sesame seed production in view of large and suitable land for its production. The North Central states of Benue, Nasarawa, Niger and Kogi and even the North East and North Western states can take advantage of this opportunity to increase their revenue generation from the non-oil sector.

He added, ” Through the Agricultural Raw Materials Boosting Programme, we have included the promotion of increased production of industrial crops using Out-growers Association of Agro Commodities who are the producers of food and raw materials for local processing. The programme started in 1991 as a follow-up to a recommendation from a Techno-Economic Survey which revealed that most industries are operating below installed capacities due to lack of raw materials in sustainable quantity and quality.

”The agro raw materials boosting programme is an intervention package to promote the use of improved seeds and seedlings to boost the production of selected agro-raw materials to bridge and reduce gaps between raw materials demand and supply”

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By Emeka Ezekiel

http://www.punchng.com/Articl.aspx?theartic=Art200709048193318

Exploring money-making opportunities in sesame seed

The non-oil export is currently the highest contributor to Nigeria’s foreign exchange earnings. The latest statistics from the Nigerian Export Promotion Council shows that Nigeria raked in N345bn as proceeds from the non-oil exports from January to December 2010.

One agricultural produce that has been identified by experts as a money spinner is sesame seed. The Director-General, Raw Materials Research and Development Council, Prof. Peter Onwalu, says Nigeria currently earns about $20m annually through the exportation of sesame seeds.

Sesame seed is an important oil seed crop, which is believed to have originated from tropical Africa. Currently, about 25 per cent of the world sesame seed is planted in Africa. Nigeria is one of the major producers of the crop in the continent.

The crop, which is one of the oldest cash crops in Nigeria, is produced in about 21 states of the federation but it is predominantly found in Benue and Jigawa states.

In terms of export value, sesame seed ranks second to cocoa in the volume of export and foreign exchange earnings. Nigeria is currently among the top five largest producers and exporters of the commodity in the world with an estimated production of over 120,000 metric tonnes annually. The major market destinations for Nigeria‘s sesame seed are Japan, Korea, China, Turkey and the Middle East.

According to the Executive Director/Chief Executive Officer, Nigerian Export Promotion Council, Mr. David Adulugba, there is a growing demand for sesame seed from Nigeria in the international market.

He says, “Currently, there is a high demand for sesame seed from Nigeria at the international market. Japan is one of the largest importers of sesame seed from Nigeria. Few years ago, they imported over 20,000 metric tonnes. There is also a huge demand for sesame seed from Nigeria in Asia, Middle East and Europe.

“In order to meet this demand, we are working out modalities to jerk up the production. Also, we will partner small and large scale investors, who want to take advantage of the export potential of sesame seed in Nigeria. Currently, there are various opportunities for entrepreneurs either directly in the area of farming or as export merchants by buying the produce and exporting it.”

Adulugba stresses that NEPC also provides export incentives for prospective entrepreneurs wishing to take advantage of the investment opportunity in sesame seed exportation.

He says, “We are partnering the World Trade Organisation to expand Nigeria’s export of sesame seeds through capacity building for prospective investors. The project is specifically aimed at addressing some urgent needs relating to quality control in the supply chain of the sesame seed to the level that meets the requisite standards of the markets in the European Union and the United States of America.”

Similarly, Onwalu says a lot of opportunities exist for entrepreneurs in the business. He also notes that the RMDC provides assistance for any genuine investors.

He says, “The country has the potential to beat Sudan in sesame seed production in view of the large and suitable land for its production. The North Central states of Benue, Nasarawa, Niger and Kogi and even the North Eastern and North Western states can take advantage of this opportunity to increase their revenue generation from the non-oil sector.

“Through the Agricultural Raw Materials Boosting Programme, we have included the promotion of increased production of industrial crops using members of the Out-growers Association of Agro Commodities who are the producers of food and raw materials for local processing. The programme started in 1991 as a follow up to a recommendation from a Techno-Economic Survey, which revealed that most industries were operating below installed capacities due to lack of raw materials in sustainable quantity and quality.

“The agro raw materials boosting programme is an intervention package to promote the use of improved seeds and seedlings to boost the production of selected agro-raw materials to bridge the gaps between raw materials demand and supply.”

As regards profitability, exportnigeria.blogspot.com says the export free on board price of sesame seed varies from $900 to $1,400 per metric tonne, depending on the type and form of the sesame seed and the negotiation made with the buyers.

Specifically, it states, “Local price per metric tonne of sesame seed varies from N80,000 during the peak season to about N120,000.00 at the off-season. However, local price, when delivered in Lagos, could range from N130,000 to N160,000.”

By Emeka Ezekiel

http://www.punchng.com/Articl.aspx?theartic=Art201104051425710