Special InitiativeONE WORLD – No Hunger

Smallholder Mechanizationin Nigerian Rice Production

Proceedings of the National Workshop3rd - 4th May 2016, Abuja, Nigeria

Green Innovation Centres for the Agriculture and Food Sector - Nigeria

Table of ContentsList of acronyms.....................................................................................................................................4

Acknowledgement.................................................................................................................................5

Executive summary................................................................................................................................1

Workshop objectives and expected outcomes......................................................................................2

Proceedings (Day1)................................................................................................................................3

Welcome, opening and introductions...............................................................................................3

Assessment of smallholder mechanization in Nigeria (Availability, Accessibility, Utilization and Financing)..........................................................................................................................................3

Panel discussions on small holder rice mechanization in Nigeria......................................................4

Business models for mechanization service providers (pre and post- harvest).................................6

Presentation of results of group work (Session 1).............................................................................6

Appropriate business models for fabrication of small machineries in rice production and ways of sustaining the models....................................................................................................................7

Employment opportunities available at every level of the smallholder mechanization value chain and how youths can be integrated into the value chain......................................................7

Organization of business models for smallholder mechanization: Pros and cons and the next steps for individual, groups or private business organization and suggested prime models.........8

Considering availability, cost, power, capacity, spares and maintenance services, recommend machinery for small scale mechanization in rice production.........................................................8

Proceedings (Day2)..............................................................................................................................10

Exhibition of small scale mechanization equipment........................................................................10

Review of the highlights of outcomes from Day 1...........................................................................10

An analysis of the Rice Mechanization Value Chain.........................................................................11

Presentations by selected service providers:...................................................................................13

Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN)........................................13

Quintessential Business Women Association (QBWA):................................................................13

Financial services to promote mechanization – Union Bank.......................................................14

Presentation of results of group work (Session 2)...........................................................................16

Policy recommendations to Federal, State and Local Governments on promotion of mechanization services to smallholders......................................................................................17

Recommended financial products and services to Development Banks, Commercial Banks and MFBs to promote mechanization services to smallholders.........................................................17

Recommendation on smallholder mechanization services to service providers who wish to take smallholder mechanization as an enterprise...............................................................................18

Recommendations for farmers to embrace mechanization services and a prioritization of operations to be mechanized......................................................................................................19

Communique.......................................................................................................................................20

Annexes...............................................................................................................................................21

Workshop Programme....................................................................................................................21

Participants’ list for national mechanization workshop in rice production......................................23

KEYNOTE ADDRESS..........................................................................................................................27

List of acronyms

ADP Agricultural Development Programmes

AFAN All Farmers Association of Nigeria

BOA Bank of Agriculture

BOI Bank of Industry

BNARDA Benue State Agriculture and Rural Development Programme

CARI Competitive Africa Rice Initiative

CBN Central Bank of Nigeria

FMARD Federal Ministry of Agriculture and Rural Development

GIAE Green Innovation Centres for the Agriculture and Food Sector

GIZ German Agency for International Development and Cooperation

IFAD International Fund for Agricultural Development

JICA Japan International Cooperation Agency

NAERLS National Agricultural Extension Research and Liaison Services

NAIC Nigerian Agricultural Insurance Company

NCAM National Centre for Agricultural Mechanization

NCRI National Cereals Research Institute

NSRIC Niger State Rice Investment Consortium

PFML Popular Farms and Mills Limited

QBWA Quintessential Business Women Association

RIFAN Rice Farmers Association of Nigeria

RIPAN Rice Processors Association of Nigeria

TOHFAN Tractor Owners and Hiring Facilities Association of Nigeria

UNIDO United Nations Industrial Development Organization

Acknowledgement

It is our sincere belief that the National Workshop on Smallholder Mechanization in Rice Production contributed to foster linkage between all participants by sharing information, getting new insights and gaining more knowledge about a topic so important for modernizing small scale agriculture..

You were all great and your enthusiasm, positive spirit, comments and suggestions helped make the workshop productive. Please keep this up to achieve the common goal of making mechanization a reality for small scale farmers.

Again, thank you for being part of that extraordinary event.

(CARI, GIAE, SEDIN and FMARD)

Editors

Olayinka Osinubi, Terna Yankya, Yusuf D. Fou’ad, Ebayaya MusaPhoto credits© Cover page: GIZ Report pictures: John Fakunle and Yahaya Dauda As at

April, 2016

Green Innovation Centres for the Agriculture and Food Sector – Nigeria (GIAE)

2, Dr. Clement Isong Street, Asokoro,

Abuja, NigeriaPN 14.0967.1

Pro-poor Growth and Promotionof Employment in Nigeria (SEDIN)22 Haile Selassie Street, offThomas Sankara, Asokoro Abuja.

PN 12.2208.2

Competitive African Rice Initiative (CARI)11b, Mousa Traore Street, Asokoro

Abuja, Nigeriawww.cari-project.org

PN 13.2450.8

Federal Ministry of Agriculture and

Rural Development Area 11, FCDA, Garki, Abuja, Nigeria.Contact: Engineer A. G. Abubakar ( Deputy Director, Engineering and Mechanization)

On behalf of

Federal Ministry for Economic Cooperation and Development (BMZ)

Addresses of the BMZ offices

BMZ BonnDahlmannstraße 4

53113 BonnGermany

Tel. +49 (0) 228 99 0535 –0Fax +49 (0) 228 99 535 – 3500

BMZ BerlinStresemannstraße

10963 BerlinGermany

Tel. +49 (0) 30 18 535 –0Fax +49 (0) 30 18 535 – 25

poststelle@bmz.bund.de

www.bmz.de

Executive summary

The National workshop on smallholder mechanization in rice production was held on Tuesday 3rd and Wednesday 4th May 2016 in Abuja. The workshop was attended by 99 participants drawn from agricultural research institutions, rice producing and milling associations, mechanization service providers, government agencies, financial and related institutions and international development organizations.

The workshop set out to assess mechanization needs of small-holder rice producers in Nigeria, suggest home grown technologies / solutions to small scale mechanization, source for equipment elsewhere available and adjustments to available equipment that can match existing conditions and be undertaken domestically. It was further designed to enable value chain actors who purchased mechanization equipment and provided services, and users of mechanization to identify availability, accessibility, utilization and financing solutions to small scale mechanization in rice production. In addition, the chain actors who participated in the workshop were able to define and agree on the most efficient organizational set up of services (profile of target clients, optimal scale of client base, and management model of mechanization service delivery to clients), contractual forms of service delivery with suppliers and clients.

Finally participants at the workshop exchanged views on means of identification and prioritization of business models taking into consideration profitability, bankability, employment, efficiency and replicability of business models.

During the workshop participants had the opportunity to visit an exhibition stand mounted by a number of equipment service providers at the venue. The exhibition provided a platform of interaction between service providers and users of mechanization equipment.

Selected participants from various sectors of the rice production mechanization value chain held a robust panel discussions on the results of an assessment study on small holder rice mechanization in Nigeria. Other major presentations were made by representatives of research, processing, financial institutions as well as mechanization service providers presented a framework for group working sessions.

Please find all presentations here:

http://cari-project.org/mechanization-workshop-held-by-cari-in-abuja-may-2016/

The outcomes of the group sessions were reviewed in plenary discussed and adjusted as necessary. These views were subsequently summarized into a communique which was jointly approved by workshop participants.

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Workshop objectives and expected outcomes

The National Workshop on Small-holder Mechanization in Rice Production was held from Tuesday 3rd and Wednesday 4th May 2016, in Abuja, Nigeria. The Workshop set out to attain the following objective:

‘To assess mechanization needs of small- holder rice producers in Nigeria, suggest home grown technologies/solutions to small scale mechanization, source for equipment elsewhere available and adjustment to available equipment that can match existing conditions and be undertaken domestically.’

Within the framework of the major objective, the workshop envisaged the accomplishment of the following outcomes:

1. Value chain actors who purchased mechanization equipment and provided services and users of mechanization identified availability, accessibility, utilization and financing solutions to small scale mechanization in rice production

2. Value chain actors identified the most efficient organizational set up of services (profile of target clients, optimal scale of client base and management of model of service delivery to clients), contractual forms of service delivery with suppliers and clients.Value chain actors identified, assessed and prioritized business models taking into consideration profitability, bankability, employment, efficiency and replicability of business models.

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Proceedings (Day1)

Welcome, opening and introductions

Participants were formally welcomed by the Programme Director of Competitive Africa Rice Initiative (CARI), Dr. Stefan Kachelriess- Matthess and the Head of Programme at the Sustainable Smallholder Agri-Business (SSAB), Dr. Annemarie Matthess.

Following the opening address by Engineer Asuquo Ita Edward of the FMARD and keynote address by the Niger State Commissioner for Agriculture and Rural Development Alhaji Aliyu Abdullahi, participants introduced themselves across different aspects of the food and agriculture mechanization sector including research institutions, fabricators, equipment vendors, international development agencies, input suppliers, farmers and producer organizations, off-takers and processors, financial institutions (banking and insurance), machine service providers and government agencies.

Assessment of smallholder mechanization in Nigeria (Availability, Accessibility, Utilization and Financing)

CARI Programme Director, Dr. Stefan Kachelriess-Matthess presented a review of the outcomes of a recent study conducted on behalf of CARI by Dr. Pham Van Tan. The study focused on the current status of rice production in Nigeria with emphasis on availability, accessibility and utilization of agricultural machinery in rice production including a consideration of the status of financing support for application of agricultural mechanization.

The study concluded with the followings:

- Local fabrication workshops are few and the existing ones are weak- Lack of equipment for good quality fabrication;- Lack of skilled mechanics/fabricators.- Lack of information and awareness on benefit from agricultural

mechanization, agricultural machinery supply and mechanization services;

- Low income of the rice farmers resulting in low capacity for investment in agricultural machinery;

- Limited operational scope of existing groups which offer mechanization services

- A weak system of agricultural mechanization extension

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- Lack of training and field demonstrations of agricultural machinery for rice farmers by relevant public sector agencies.

Panel discussions on small holder rice mechanization in Nigeria

Following the presentation of the results of the assessment study on small holder rice mechanization in Nigeria, key issues regarding the subject were highlighted through a panel discussion constituted of representatives from the selected stakeholders. Panelists included:

Mrs. A Kagho, Bank of Industry

Mr. Danladi Garba, Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN)

Dr. Chuma Ezedinma, United Nation Industrial Development Organisation (UNIDO) - Nigeria

Mr. Fidelis Akosu, Rice Farmers Association of Nigeria (RIFAN)

Dr. Agidi Gbagbo, AfricaRice Mechanization Task Force/ Federal University of Agriculture, Minna/Fabricator

Dr. Muyideen Kasali, National Centre for Agricultural Mechanization (NCAM)

Panelists making an assessment of smallholder mechanization in NIgeria4

The contributions of the panelists are summarized in the table below.

UNIDO UNIDO offers post-harvest

production support to small holders. Coordination of efforts between

equipment providers and financial service providers is critical for effective equipment marketing.

Well established manufacturers are few and the available ones mostly technically deficient.

Equipment fabricated ought to be tested and perfected before they are pushed into the market.

UNIDO believes there is a need to identify and brand producers of quality machineries.

NCAM NCAM has fabricated prototype equipment

on all aspects of rice production operations except transplanting.

Lack of information on accessing and subsequent handling of available equipment is a challenge.

Poor financial capability of farmers is a limiting factor to accessibility – commercialization of fabrication will improve accessibility.

NCAM should certify the quality and efficiency of all locally fabricated mechanization equipment

RIFAN Low capacity and incentive to

produce in large quantities; production almost always on demand

Limited awareness and poor skills in equipment handling make the few available equipment difficult to sell.

Available equipment often not suitable or adaptable for farm operations required by the smallholders

TOHFAN TOHFAN provides tractor and equipment

hiring services to smallholders in 24 states in Nigeria.

TOHFAN presently has 187 tractors for provision of farm operation services across the country.

The farm support services provided by TOHFAN has helped reduce production costs for smallholder farmers.

FABRICATOR There exists limited capacity in

Nigeria for local fabrication, but costs often not competitive vis-à-vis imported counterparts.

Capacity of local equipment manufacturers for mass production is low.

Commercial equipment manufacture is hampered by low demand.

BOI BOI provides financial support services to

smallholder processors at an interest rate of 4-5% for a 3 year tenor.

Credit facilities for fabricators of processing equipment for smallholder users could go up to a maximum of N10, 000,000 with payment commencing in the second year of loan tenor.

Groups of farmers or service providers can obtain credit facilities to procure power tillers or rice threshers

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Following the panel discussions the Managing Director of the Bank of Agriculture (BOA) made a brief presentation. The highlight of his presentation focused on the effort of BOA to ensure competitive and sustainable rice production in Nigeria. He indicated that the BOA in partnership with the Central Bank of Nigeria (CBN) is supporting 70,000 farmers from Kebbi state to produce 30,000 metric tonnes of rice in the current year.

Business models for mechanization service providers (pre and post- harvest).

Dr. Kristina Spantig, CARI Economist presented scenarios of suitable business models for pre and post-harvest mechanization service providers. The presentation was a summary of the results of a study which focused on business model calculations for farm machineries. The study considered the possible costs and profitability to service providers and users of such services, especially the smallholder farmers. It further presented a sensitivity analysis and a comparison of business model calculations between the combination of power tiller and a plow (100% self-financed) and a similar model (financed 100% via loan at 25% interest rate)

The presentation elicited a robust discussion on the critical need for the development of realistic business models considering factors such as variable agro-ecological and environmental peculiarities where equipment are being operated, the number of hours in a day for which an equipment (e. g. a power tiller) can be operated, variation in interest rates and the non-contiguous (fragmented) nature of farmlands owned by majority of smallholders.

In all, the presentation seemed to suggest that investment in land preparation equipment (pre-harvest) could be more profitable than investment in processing equipment (post-harvest).

The broad conclusions from the study constituted the themes for subsequent group work sessions with in-depth analysis and discussions.

Presentation of results of group work (Session 1)

Participants were constituted into four working groups to have more focused discussions on business models for the rice sector and analysis of the needs assessment to realize the business models. Below are the highlights of the group presentations.

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Appropriate business models for fabrication of small machineries in rice production and ways of sustaining the models.The group identified 5 business models and the components of such models:

1. Agric. Mechanization model with the following components- Equipment hiring services for land clearing, land preparation and harvesting including provision of extension services.

2. Agric. input model with the following components- Agrochemical, seeds and fertilizer sales and extension advisory services

3. Financial support model: Provision of Banking, insurance and farm equipment subsidy

4. Capacity building model: Capacity building for equipment fabricators in Marketing strategies, linkage with clients, information, appropriate packaging and presentation of products and services, formation of cooperatives and associations.

5. Extension Services model: Major components of this model includes sensitization, training and monitoring of artisans.

Sustaining the above models require capital, appropriate business location, skill acquisition and capacity building.

Employment opportunities available at every level of the smallholder mechanization value chain and how youths can be integrated into the value chain.The group identified employment options in 3 broad areas of rice production, processing and marketing.

Under production, employment opportunities were identified in land preparation, tractor and power tiller hiring services, fabrication of weed control equipment such rotary weeders, spraying gang model, youths engaging in use of water pumps in providing irrigation services to rice producers, fabrication of sowing equipment like calibrated seeders, and harvesting equipment.

In processing, proposed employment options include fabrication of threshing machines, winnowers, batch driers, de-stoners, false bottom, milling and packaging and sealing machines.

Concerning marketing, operation of aggregation centres, transport services and marketing agencies and provision of market information trends were identified as employment opportunities which could engage the youths.

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Organization of business models for smallholder mechanization: Pros and cons and the next steps for individual, groups or private business organization and suggested prime models.Mechanization equipment hiring services is the suggested prime model. This model is considered as one with a high potential of bringing satisfaction to all stakeholders along the rice value chain ( increase in yield and productivity for the producer and profit to the service providers)

Important considerations by the model operators include:

- Easy availability and accessibility of services- Timeliness in service provision- Cost effective operation

The Pros in operation of the model include

- It saves time- Equipment could have multipurpose use- Creates employment

The Cons were identified as

- Lack of operational skills of equipment- High cost of maintenance- Lack of flexibility(some equipment might not be adaptable for

multipurpose use)- High interest rate on credit facilities

Considering availability, cost, power, capacity, spares and maintenance services, recommend machinery for small scale mechanization in rice production.Following a critical analysis of the variable factors relating to supplies and services, the group identified the followings as recommended machineries for small holder rice producers:

- Power tiller- Planter- Water pump- Mini harvester- Threshing and winnowing machine

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Group Breakout Session

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Proceedings (Day2)

Exhibition of small scale mechanization equipment

Activities of the second day of the workshop commenced with a visit to the exhibition stand where manufacturers of mechanization equipment displayed their products and demonstrated operation of the equipment with explanations on the services they provide

The exhibition provided opportunities for interactions between workshop participants and the exhibitors.

A power tiller on display at the exhibition stand

Review of the highlights of outcomes from Day 1

Ahead of the presentations of the second day of the workshop, the Team Leader of the Green Innovation Centres for Agriculture and Food Sector (GIAE), Mr. Frederick Urfer, led a brief session in reviewing the activities of the previous day. The activities of the previous day were summarized as follows:

1. There is a gap between fabricators and end-users (farmers) concerning mechanization equipment

2. Quality and skills of fabricators not adequate to meet the requirements of equipment users.

3. Lack of policy synchronization to promote mechanization.

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4. Decrease in life span of machinery due to poor handling by unskilled operators

5. Need for business models that could be used to prepare bankable proposals for financing.

6. Locally fabricated equipment usually not available on the shelf. Capacity to produce en-mass is low, hence production is almost always on demand.

7. Locally manufactured equipment need to be tested and perfected before pushing them to the market

8. Sustainable local fabrication of mechanization equipment require coordination between users, fabricators, financial institutions and markets.

An analysis of the Rice Mechanization Value Chain

A plenary analysis and review of the rice mechanization value chain was led by Mr. Yusuf Dollah Fouad of CARI.

At the micro level, the analysis focused on the roles of research and development agencies, dealers and input suppliers of materials for fabrication, assemblers and fabricators, farm machinery marketers, equipment operators, and repairs and maintenance operators.

At the meso level, the followings were identified as critical actors:

o Agricultural Development Programmes (ADPs)

o Development partners such as AfricaRice

o Financial institutions (BOI, BOA and MFIs)

o Standard Organization of Nigeria (SON)

o Farmers Organizations (RIFAN, AFAN)

o Federal and State Ministries of Agriculture and Rural Development

o Research Institutions ((NCAM NCRI, Universities)

While affirming the existence and the modest efforts of the various identified value chain actors, workshop participants were in general agreement that there was an urgent need for institutional strengthening especially at the micro level. The discussions also reviewed the current level of relationships between these value chain actors and how such relationships could be strengthened and made more functional

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Presentation and analysis of the rice mechanization value chain

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Presentations by selected service providers:

Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN) TOHFAN was established in 2003 as a private sector driven tractor hiring service provider to provide tractor hiring services to farmers on a commercial basis. The service provider currently operates in 18 States across the country with 187 tractors and 509 members.

TOHFAN’s primary focus include:

Facilitating access to sustainable tractor hiring services by farmers

through private partnership and capacity building

Improvement of farmers’ access to tractor hiring services

Ensure farmers’ satisfaction with tractor hiring services provided by

members of the association

Assisting members to gain access to credit facilities from banks and

other financial institutions for the procurement of tractors

Enhancing direct procurement of tractors and genuine spare parts

from vendors and manufacturers within and outside the country

Quintessential Business Women Association (QBWA):While various state governments in Nigeria have tractor hiring agencies to provide these services, they are often not suitable to the typical smallholder farmers. This has necessitated the facilitation of a business model that ensure rice farmers have access to affordable and relevant mechanization services.

The model invloves Hankuri Sheshi bikun rice farmers group sub-contracting the tiller from QBWA to provide hiring services (tillage operations only) against a fee for farmers in Sheshi Bikun and Washi Communities in Lavun LGA, Niger State. In this relationship, QBWA rents out three (3) power tillers to the subcontractor (first for the 2016 rainy season farming with possible renewal for dry season)

The sub-contractor ensures proper maintenance and repair of the power tillers, remits the monthly hiring rent charge as agreed in the contract and must return the power tillers to the owner (QBWA) at maximum a day after the expiration of the contract

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Business model being facilitated by QBWA

With a credit facility of 750,000 NGN payable in 3 years at 9% interest (13,500 NGN) QBWA acquires a power tiller and sub contracts the equipment to Hankuri Sheshi bikun rice farmers group which operates the equipment for 5 months in a year.A cost benefit analysis shows that QBWA makes a net profit of 188,000 NGN/year, while the sub contractor makes 200,625 NGN.

Financial services to promote mechanization – Union Bank Union Bank (“UBN”) was established in 1917 and is one of Nigeria’s long-standing and most respected financial institutions, offering a portfolio of banking services to individual, SME, commercial and corporate clients. In recognition of the financial institution’s valuable support to SMEs, it won the Business Day Award for “best bank to support Nigeria’s small and medium scale enterprises” and the CBN Award as the best bank in Agricultural Credit Guarantee Scheme Fund in Nigeria both in 2014.The bank’s decision to provide needed financial support to agriculture is based on the sector analysis conducted by the financial institutions with the following findings:

o Nigerian Farmers cultivate approximately 30 million hectares of land per annum (Only 6% according to IFPRI has access to mechanization)

o It is estimated that Nigeria has less than 10,000 functional tractors across the country (According to FMARD)

o The Nigerian Tractors market is estimated to be at around N300 Billion market size.

o It is estimated that the cultivated area in Nigeria will require about 60,000 tractors to serve the market on an annual basis.

o A tractor will serve an average of 500 hectares per annum

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Below are Union bank’s proposition for mechanization financing

o Obligors shall be members of Tractor hiring cooperatives or any other identified group engaged in tractor hiring operations who are in good standing and for whom the trustees of the association are comfortable to issue a guarantee.

o A tripartite Memorandum of Understanding shall be in place amongst the cooperatives, the bank and the equipment vendor stating the terms of the engagement and defining expectations

o Finance Lease/ Term loans approved shall be utilized for the Purchase of tractors and its implements from Vendors who have signed a memorandum of Understanding with the bank.

o Primary source of repayment shall be proceeds of tractor hiring by small holder farmers.

o In an event of two consecutive defaults by a beneficiary, tractor is repossessed, refurbished by Vendor and reallocated to another association member.

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Presentation of Union Bank’s financial products available for smallholder mechanization.

Presentation of results of group work (Session 2)

Working in 4 groups, participants proffered recommendations to government, financial institutions and service providers on how to promote mechanization services to small-holders in land preparation, pre and post-harvest. Recommendations were also suggested to farmers on means by which they could access mechanization services.

The outputs of the working groups are summarized in the tables below:

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Policy recommendations to Federal, State and Local Governments on promotion of mechanization services to smallholders

a. Land preparation - Agricultural mechanization should be legislated.- Current land tenure system should be reviewed as it is not

favourable to smallholders in its present form.- Government should make mechanization equipment accessible

and affordable through subsidy scheme.b. Pre and post-harvest - Threshers and harvesters should be accessible to farmers- Fee paying parboiling centres should be located in all rice

producing areas- Provision of buffer storage facilities to preserve paddy- Support for processors to mop up paddy- Serious effort to reduce the farm family in Nigeria from 1-3800 to

ideal level of 1-800

Recommended financial products and services to Development Banks, Commercial Banks and MFBs to promote mechanization services to smallholders

Recommendations:

- Financial institutions should develop products and services targeted at youth and women engaged in agricultural mechanization schemes

- Local fabrication financing- Agric. equipment hiring services enterprises

Way forward

- Direct disbursement of credit facilities to service providers- Group development and strengthening- CBN to make it possible for MFBs to access funds directly at 2%- Discourage individual lending

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Recommendation on smallholder mechanization services to service providers who wish to take smallholder mechanization as an enterprise.The followings are recommended mechanization enterprises for potential small holder service providers:

- Spraying services using a knapsack sprayer- Land preparation (ploughing, harrowing, levelling) using a power

tiller- Planting using arrow seeder- Harvesting using a reaper- Threshing using a thresher

Justification for the recommendations

Spraying: With an investment of N10, 000 on a knapsack sprayer with a usage period of 5 years and service provision cost of N 800/hectare, spraying service is very profitable as an enterprise.

Land preparation using a power tiller: A power tiller that costs an average of N750, 000 will earn 15,000/ha for ploughing, N7, 500/ha for harrowing and N7, 500/ha for levelling. Working 8 hours a day on an area of 0.5 hectares, the equipment can work efficiently for 5 years and earn a potential entrepreneur a good profit.

Planting using a row seeder: A row seeder will earn N5, 000/hectare for the potential entrepreneur and it can be used for as long as 8 years with proper maintenance.

Harvesting using a reaper: With an initial investment of N300,000 on a reaper, and a service charge of N10,000/ha, the entrepreneur could make good profit over a period of 10 years that a reaper is expected to deliver efficient service.

Threshing using a mechanical thresher: Investing N350,000 on a thresher and charging N15,000/ha for services provided will turn out a very profitable venture for an entrepreneur over the 10 year period the thresher is expected to deliver good service.

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Recommendations for farmers to embrace mechanization services and a prioritization of operations to be mechanizedFarmers ought to embrace mechanization for the following reasons:

- Farm labour is scarce and where available is expensive- Mechanizations saves time- Mechanization facilitates uniformity of farm operations- Mechanization reduces drudgery and increases life expectancy- Mechanization of farm operations leads to increased crop yield.

Priority scale for farm operations:

- Land Preparation- Planting- Weeding- Harvesting- Fertilizer application- Threshing/Winnowing

Irrigation

A pin board display of the output of one of the group sessions

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Communique

At the end of the plenary presentations of the output of the working groups, the following communique was jointly reviewed and adopted by workshop participants

1. Sustainable local fabrication of mechanization technologies require coordination between users, fabricators, financial institutions, research institutions and markets.

2. Training and capacity enhancement for:

- ADPs (especially in mechanization extension)- Youth and women for provision of mechanization services.- Fabricators and operators of farm machineries.

3. Development of groups and clusters of equipment fabricators and users who could come up with viable business models suitable for financing e.g. equipment hiring services

4. Advocacy visits to CBN and financial institutions to reinforce a need for direct financing of microfinance banks and commercial banks to provide support to fabricators.

5. There is a need to have a policy (legislation) on Agric. Mechanization.

6. Participants at the workshop agree to share information and documentations on research findings, business models, financial products and other related issues on rice mechanization with CARI/GIAE for further dissemination to all participating institutions.

Closing: The workshop came to a close with Dr. Stefan Kachelriess- Matthess, expressing delight at the successful implementation of the workshop. He appreciated all participants for their active participation and contributions to the discussions at all the sessions of the workshop.

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Annexes

Workshop Programme

Programme for National Workshop on Small-holder Mechanization in Rice Production

Workshop Objective: To assess mechanization needs of small-holder rice producers in Nigeria, suggest home grown technologies / solutions to small scale mechanization, source for equipment elsewhere available and adjustments to available equipment that can match existing conditions and be undertaken domestically.Time Topic Remarks

Day 1Outcome 1, 2 and 3 (Specific to day 1 activities): 1. Value chain actors who purchased mechanization equipment and provided services and users of mechanization identified availability, accessibility, utilization and financing solutions to small scale mechanization in rice production. 2. Value chain actors identified the most efficient organizational set up of services (profile of target clients, optimal scale of client base, and management model of mechanization service delivery to clients), contractual forms of service delivery with suppliers and clients.

3. Value chain actors identified, assessed and prioritized business models taking into consideration profitability, bankability, employment, efficiency and replicability of business models.8:30 - 9:30 Arrival/Coffee/Registration All invitees to go through registration process

and be seated09:30- 09:45 Seating of participants/Welcome Address GIAE/CARI/SEDIN

09: 45 - 09:50 Opening Address GIZ - Country Director (Dr. Thomas Kirsch)

09: 50 - 09:55 Keynote Address Hon. Commissioner for Agric, Niger State

10:00-10:30am Presentation on Assessment of Small-holder Mechanization in "Nigeria" (Availability, Accessibility, Utilization and Financing)

Dr. Tan Van Pham (Deputy Director,The Sub-Institute of Agricultural Engineering and Postharvest Technology (SIAEP), Ho Chi Minh City, Vietnam

10:30-11:00am Expository of results from the Presentation on Assessment of Small-holder Mechanization in "Nigeria" (Availability, Accessibility, Utilization and Financing) by key stakeholders (panel with 6 discussants)

Panel discussions involving 6 key stakeholders.1. Mechanization Financial Service Providers (MD/CEO BoI) ,2. Mechanization Service Providers (President Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN).3. Mechanization Policy Makers (Deputy Director, Engr. & Mechanization FMARD),4.Users of Small Holder Mechanization (President Rice Farmers Association of Nigeria (RIFAN),5.Fabricators of Small Scale Mechanization (Engr. Dr. Agidi Gbagbo, Focal-Point, AfricaRice Mechanization task Force for Nigeria and Senior Lecturer, Dept. of Agric and Bioresources, Fed. Univ. of Tech., Minna.6. Mechanization Research and Development (Dr. Muyideen Yomi Kasali), Ag. Executive Secretary, National Center for Agricultural Mech.(MCAN).

11:00-11:15 Contributions / Questions and Answers from panel discussions

Moderation: Dr. Stefan Kachelriess Matthess, Prog. Director, Competitive African Rice Initiative

11:15- 11:25 Remark by special invitee/guest of honour (Managing Director, Bank of Agriculture)

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11:25-12:00 Remark by special invitee/guest of honour (Minister or his rep)

Hon. Min. or his rep to talk on Govt. policies and strategies supporting small scale mechanization

12:00-13:00 Presentation on business models for mechanization service providers pre- and post-harvest (criteria, equipment, overview of profitability for service providers, overview cost and profitability for farmers).

Dr. Annemarie Matthess, Programme Director, GIZ - Sustainable Smallholder Agri Business (SSAB).

13:00- 14:00 Group photograph/Lunch/Special invitees departure

14:00-15:00 Group discussion on business models and priority for the rice sector & need assessment to realize the business models

15;00-16:30 Report to plenary A member of the group presents outcome of the group work

16:30-17:30 Wrap up, Coffee break, Announcement of exhibition of small scale mechanization equipment and mechanization financial service providers and Closure

The exhibition continues on day 2

Day 2Outcome 4, 5 and 6 (Specific to day 2 activities): 4. Value chain actors identified, assessed and prioritized business models taking into consideration profitability and bankability, employment, efficiency and replicability of business models.5. Value chain actors identified, benchmarked and cost suitable equipment for the mechanization needs of small-holders and providers of mechanization services identified options for financing of small scale mechanization6.Value chain actors who purchased mechanized equipment and farmers identified financing solutions for their mechanization needs.Welcome and agenda

Team Leader (Moderation: Fredrick Urfer, prog. Director, Green Innovation Center)

9:45-10:30 CEMA Senegal Presentation by Syngenta Foundation (Dominik)

10:30-11:00 Africa Rice - Small scale mechanization in place of pesticide use

Presentation by AfricaRice (Dr. Jean Moreira)

11:00 - 11:15 Coffee break

11:15-12:25 Pitching of service providers and fabricator (equipment, geographical coverage, type of service)

Short presentations by invited service providers 1.TOHFAN, Harnighan Nig. Ltd, Kubota, DAE SUNG, Habgito.2. Niger power tiller business model presentation. Moderation: Terna

12:25-13:00 Matchmaking user- service provider Exhibition/B2B setting: user meets provider13:00-14:00 Lunch14:00-14:30 Report to plenary by 5 CARI/GIAE partners

(NSRIC,ATAFI, NAMDA, Godilogo, Babbangona and MIKAP)

Participants in B2B report to plenary

14:30-14:45 Financial services to promote mechanization Bank of Agriculture14:45-15:00 Financial services to promote mechanization Union Bank

15:00-15:30 Group work: 1.What recommendations to govt/bank/service providers to promote mechanization services to small-holders in land preparation pre- and post-harvest? 2. What recommendations to farmers in accessing mechanization services

Group work

15:30-16:00 Coffee break16:00-16:30 Report Presentations in plenary16:30-17:00 Wrap up, next steps, Communique and closing One of the GIZ Team Leaders

Documentation of workshop proceedings

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Participants’ list for national mechanization workshop in rice production

S/NO NAMES ORGANIZATION

1. Dr. M Y Kasali National Centre for Agricultural Mechanization (NCAM) Illorin

2. Dr. Adeymiluyi Y S SWAH, National Centre for Agricultural Mechanization (NCAM), Nigeria.

3. Engr. Ibrahim N Muhammad Federal Ministry of Agriculture and Rural Development (FMARD)

4. Abdullahi Aliyu Federal Ministry of Agriculture and Rural Development (FMARD)

5. Alassane Aw Syngenta Foundation

6. Lawal Kurso Ahmed Kebbi State Agricultural Development program

7. Umar Bagudu Kebbi State Agricultural Development program

8. James David National Centre for Agricultural Mechanization (NCAM) Illorin

9. Stephen G Kpama Nassarawa State Agricultural Development Program

10. Alanana M Emmanuel Nassarawa State Agricultural Development Program

11. Thomas Edeh Benue State Value Chain Development Program

12. Hadizat Isah Niger State Value Chain Development Program

13. Sambo Abubakar ATAFI Agro Merchandise

14. Oyewole Thomas AFC

15. Jibril A Bissallah NCOFA

16. Ingya Nor Benue State Agricultural Development Program

17. Isah F Olayiwola National Agricultural Extension and Research Liaison Services (NAERLS), ABU Zaria

18. Julius Ogar Godlogo Farms Obudu

19. Hon Timothy Iorchor Rice Processors Association of Nigeria (RIFAN), TSEFOR

20. Irimiya S Musa IFAD – Value Chan Development Program, Taraba State

21. Engr. Ezekiel A Mamai IFAD – Value Chan Development Program, Taraba State

22. Abiodun N Muftan Rubitec Solar

23. Ubana Ubi Eyong Cross River State Agricultural Development Program

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24. Dr. Matthew Ahmed Niger State Value Chain Development Program

25. Tsado Joseph AJIFA Rice

26. Godfrey Ajayi Niger State Rice Investment Consortium (NSRIC)

27. M W Kolo Bank of Agriculture (BOA)

28. Abdullahi Mohd Bello Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN)

29. Julius Atorough Better Life Micro Finance Bank

30. James Ker BNARDA

31. Dr. Gbabo Agidi Federal University of Technology Minna

32. Yo-Do Kawase Kubota

33. Amuda Abdullfatai OLAM Nigeria Ltd

34. Baba Kutigi Madugu Niger State Agricultural mechanization Development Authority (NAMDA)

35. Ndatsu Fari Farmer

36. Unula Nwuche HABGITO Ltd

37. Engr. Asuquo ITA Edward Federal Department of Agricultural Extension (FDAE)

38. Alh Suleiman Ubam Beguwa

39. Fedelis I Akosu Rice Farmers Association of Nigeria

40. Engr. Ahmed Joda HANIGHA Nig. Ltd

41. Danladi Garba Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN)

42. Yushau Abubakar Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN)

43. Ibrahim Muhammad Niger State Rice Investment Consortium (NSRIC)

44. Muhammad Musa Isah Niger State Agricultural mechanization Development Authority (NAMDA)

45. Engr. Ozumba Isaac National Centre for Agricultural Mechanization (NCAM)

46. Nanang Setiya Pambudi Quick Tractor, Indonesia

47. Falode Seun RUBITEC Nigeria Ltd

48. Abdullahi Alkali Niger State Ministry of Agriculture and Rural development (NMARD)

49. Ali S O Federal Ministry of Agriculture and Rural Development/Federal Department of Agricultural Extension (FMARD/FDAE)

50. Igbaukum Emmanuel IFAD-Benue State Value Chain Development

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Program

51. Joseph J Kudu Rice Farmers Association of Nigeria (RIFAN)

52. Anuj Bhatia WACOT/TGI

53. Ian Arnold VSO

54. Idinoba Philip Africa Rice

55. Shivananda Gali WACOT Rice Ltd

56. Sudhansu Ray Popular Farms and Mills Ltd (PFML)

57. Yuusey Singh Popular Farms and Mills Ltd (PFML)

58. Ayoola Olurotimi NAIC – Abuja

59. Abdullahi Othman NAIC – Abuja

60. Adam Nabban NRAY Minna

61. Saboji Abbati NAIC – Abuja

62. Tope Samuel Odu Union Bank

63. Engr. S S Aliu Federal Ministry of Agriculture and Rural Development. FMARD (Ext)

64. Dr. Umar Halilu JICA

65. Mrs. Ocheh J O Bank of Agriculture (BOA)

66. Fatimah Usman Bank of Agriculture (BOA)

67. Onneka Nwogsu Bank of Agriculture (BOA)

68. Engr. Ladeinde M A Maglands Creations

69. Oladeji Godfrey Bank of Agriculture (BOA)

70. Olanrewaju Rotimi Union Bank

71. Taofic Badamosi Women Farmers Association of Nigeria (WOFAN)

72. Abdullmalik M Kudu MCOA

73. Muhammad A Adamu Green Sahel Agricultural Development Initiative (GSARDI)

74. Habu Shatima Green Sahel Agricultural Development Initiative (GSARDI)

75. Hiroshi Kodama JICA

76. Sabiu Sani Unity Bank

77. Zainab Aminu Unity Bank

78. Mercy T Luwa Unity Bank

79. Lolo Kadafa Bank of Industry (BOI)

80. Jack Linus Bank of Industry (BOI)

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81. Nnadi Doris FENRAD

82. Segun Atho Rice Farmers Association of Nigeria (RIFAN)

83. Mrs Salome Ndakotu QBWA

84. A Kagho Bank of Agriculture (BOA)

85. Iketaki Francis Markets II

86. Biodun Olugbami Agric Equipment Hiring Ass

87. Chuma Ezedima UNIDO

88. Hassan Sheshi ONYX

89. Mercy Mayaki Propcom

90. Muhammad Zakari Federal Ministry of Agriculture and Rural development (FMARD)

91. Ayeni Olilaule NIWAAFA

92. Aminu Ismaila Tropical Agronomics

93. Takahiro Saeki Japan International Cooperation System (JICS)

94. R A Lawal NAIDA

95. Maxwel Ankalo National Platform

96. Pamda James Africa Magazine

97. Khaleed Alberker Roog

98. Auwal Buhari CADL

99. Ogbine Lizzy NIWAAFA

100. Yodo Kewase Kubota Inc. Japan

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KEYNOTE ADDRESS

By the Honourable Commissioner for Agriculture and Rural Development, Niger State Alh. Aliyu Abdullahi Oon

It is with distinct pleasure that I welcome you all to this important two day workshop with the following objectives:-

To access mechanization needs of smallholder rice producers in Nigeria

Suggest home grown technologies/solutions to Small Scale mechanization

Source for equipment elsewhere available and; adjustments to available equipment that can match existing conditions and undertaken domestically

It is pertinent for us to note that this workshop couldn’t have come at a much better time than now, when the focus of the present Administration, under the leadership of President Muhammadu Buhari, GCFR is focusing on developing the Agricultural sector of Nation to augment the dwindling revenue generation from the oil sector.

Farm machinery as we all know is a collection of variable machine for farm operation and includes all types of implements and devices for applying power on the farm such as plough, harrow, seeder/seed drills and planters, cultivators harvesters, haying machine and tractors. The tractor is the most important machinery because it is the prime mover for all the implements. It is the most used and most prone to weather and depreciation. It is also most expensive item of all farm machinery and beyond the rich of the smallholder farmers.

Despite Nigeria’s abundant agricultural resources endowment, its agricultural sector has been neglected over a long period of time. It is therefore important to note that less than 50% of its cultivable agricultural land is underutilized. Most of this land is cultivated by the smallholder farmers who in most cases use rudimentary production techniques resulting in low yields. Its pertinent to note that the smallholder farmers in the nation faces many challenges among which are poor access to modern farming inputs and agric-credit facilities, poor rural infrastructure, inadequate access to markets, land and environmental degradation and inadequate access to research finding and extension services.

Even if is for the sake of emphasis Niger State has a total landmass of over seven million hectares representing 10% of the total landmass of the nation. Its also blessed with a potential irrigable area of over 754,297hectares that is currently under utilized for irrigation farming. I am therefore, appealing to genuine agro based investors to come to Niger State to partner with us in exploiting these resources for rice production.

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In our own effort to boost rice production in the State, the State Government is supporting the farmers with farming inputs such as fertilizers, tractor hiring services, extension services, linkage to Agric Credit facilities and marketing outlets. In addition, the State Government has keyed into some international donor supported programmes such as:

Fadama III Plus Additional Financing Value Chain Development Programme (VCDP) GIZ-SEDIN / CARI Programme on rice sector development Agricultural Transformation Agenda Support Programme (ATASP-

1) Rural access and mobility Project II (RAMP-II)

These programmes are aimed at enhancing the production of rice during the wet and dry seasons i.e. to be able to cultivate rice 2 to 3 times in a year through irrigation. For instance:

Agricultural Transformation Agenda Support Programme phase –1 (ATASP-1):

The programme is currently engaging on the construction and rehabilitation of 220km of irrigation conveyance canals and training of 50,000 youths in Agriculture Value Chain for self employment and wealth creation for the teeming youth population in the State under the Agricultural Transformation Agenda Support Programme phase –1 (ATASP-1) is ongoing.

CARI has two joint projects in Niger State:

1. NSRIC-CARI Project A Matching Grant Fund has been release by CARI programme to the effect of collaboration between the Niger State Rice Investment Consortium and CARI which is targeted at building the capacity of 5,000 rice farmers to produce quality paddy for Onyx rice mills in Bida. The intervention is almost ending but with possibility for project extension. 2. NAMDA – CARI ProjectAlso parts of the Matching Grant Fund has been release by the programme to the effect of collaboration between the Niger State Agricultural mechanization Development Authority and CARI which is targeted at building the capacity of 5,000 rice farmers in Lapai and Shiroro LGAs in Niger State. The intervention which mostly involve GAP trainings, Farmer Business School, Contract Farming Support and Mechanization currently going on in these areas.

GIZ-SEDIN Rice value chain development project:

Working with 1,200 Rice producers (900 rice farmers and 300 local rice processors) in ten clustered groups called rural level rice parboiling and processing enterprises project located in Gurara, Paikoro, Lapai, Agaie, Katcha, Gbako, Wushshi, Lavun, Edati and Mokwa LGAs. The members of the clustered groups are currently undergoing training on group formation and development and later

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we will introduce best practices of rice production with emphasis on the use of adapted small agricultural mechanization technology. This helps to process rice more efficiently.

Business models will be promoted that link producers with different categories of off-takers to increase farmers’ income

RAMP-II on the other hand is to enhance transportation of farm produce from rural areas to the markets by rehabilitating the rural feeder roads in the State. To this end, the State is committed to paying annual counterpart funds for these programmes as follows:

i. Fadama III Plus Additional Financing = N50 millionii. VCDP = N87 millioniii. ATASP-1 = N66.5 millioniv. RAMP-II = N200 million

Total = N403.5 million The remarkable effort of the present Administration of Alh. (Dr.) Abubakar Sani Bello is noteworthy for according priority attention to the development of the agricultural sector in the State.In the area of processing the Niger State Government is partnering with the following:-

i. Japanese International Cooperation Agency (JICA) supported Programme known as Rice Post Harvest and Marketing Pilot Project (RIPMAPP) which is currently ongoing in the State focusing on improving the quality of domestically produced rice through improvements in post-harvest processes such as parboiling, milling and marketing.

ii. Farmers in the rice producing areas of the State are being trained to adopt the “false bottom” rice parboiling technology that will enhance its quality during milling and acceptability in the markets.

iii. Korean International Cooperation Agency (KOICA). Established a Rice Milling plant in Bida.

iv. GIZ SEDIN / CARI programme is also supporting the local women rice parboilers within the intervention rice producing communities by introducing best practices on rice parboiling techniques and technology.

Concerted efforts are being made by the State to encourage local and international Agro-based investors to establish commercial rice production and processing plants in the State involving farmers in the Outgrowers Scheme with assured markets for their produce by linking them to existing major off-takers within and outside the State.

To facilitate access to smallholder mechanization equipment by rice farmers in the State, the Niger State Government in conjunction with the GIZ – SEDIN Programme is facilitating the distribution of 247 power tillers to rice farmers’ cooperatives at subsidized rates to flag off the 2016 cropping season in the State. In the same vain a committee was constituted to assess the existing 18 irrigation schemes in the State with

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the view to rehabilitate them to enhance dry season farming and creation of employment for the teeming youths in the State in agriculture, aquaculture and other water related activities. The report has been submitted and action on its recommendations would soon be implemented.

It’s my singular honour and privilege to be in your midst for this important workshop and wish you successful deliberation and journey mercies to your respective destinations after the event.

Thank you all for listening.

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