Enterprise: How we’re running agro-based storage ventures – Traders
The renewed focus of the Federal Government on the non-oil sector is driving more Nigerians to agriculture-based businesses ranging from farming to sales of the produce.
Daily Trust spoke with some traders who are into bulk purchasing and sales of agroproduce across, Nasarawa, Kaduna, Benue and Kano states in this piece.
Nigeria is rich in growing of roots and tubers, grains, cereal crops and fruits enabled by its arable and vast land. It provides a fairly good means of economic survival for the citizens if the huge endowments of natural and mineral resources are well harnessed.
According to a 2009 report of the Food and Agriculture Organisation (FAO), Nigeria has an estimated yearly output of 45 million metric tonnes for cassava, 32m MT for yam, 1.3m MT for sweet potato, 0.731m MT for potato, 5.0m MT for cocoyam and 0.223m MT for ginger.
There is also a huge record for the growth of rice, soya beans, sorghum, beans, palm oil, groundnut, cotton, cocoa and other cash crops. However, due to poor storage facilities and procedures, a significant chunk of these produces are wasted or sold at low market rates in different seasons.
While it is a challenge, some Nigerians said they have seen an opportunity to grow their businesses of purchasing and selling the produce at appreciable market prices especially when the harvest season for the produce is over.
Mr Adams Abubakar said he has been doing the trading business on ginger and soya beans for over five years in Kaduna State. He buys them during the harvest period from rural areas and stores them until the price appreciates before he delivers them to the market.
“I go to the villages to buy ginger and soya beans from the farms and package them in sacks and store for months. By the dry season, the value for it appreciates and that is the best time to sell them.
“There are even demands from foreigners especially the Chinese for ginger and it is paying off, if you take the pain to go to some hinter villages around Kagarko, Kafanchan areas in the sate to buy. However, it requires patience and some level of security to reach the price maturity period,” he explained.
Malam Idris Auwal is a young graduate who sees the Dawanau grain market in Kano State as special to him. This is because he buys and sells grains there and has used the proceeds to train himself in school.
He keeps these produce until when the price rises due to higher demand and reducing supply from the local farmers who may have exhausted the produce.
Auwal said: “It is tasking for a starter because you have to go to the villages at times to buy up grains just to store them for some other times. However, in some periods, it is very rewarding as once could gain over N8,000 just for selling a bag with little expenses to do.”
Speaking on the steps for palm oil business, Mrs Maria Okpe who does this business in Ugbokolo town of Benue State, said from December through April, a 25 litre capacity of palm oil went for about N6,000 but that the price could rise from June up to N23,000.
“To real hit this seasonal business, one really needs funding from N200,000 to buy over 100 units and store them for the ‘moment’. Then, you may choose to transport them to other states like Nasarawa, Kaduna and Kano where they have less production capacity because the prices are often high there,” she explained.
Mr Abubakar advised that starting the business of storage may require familiarising oneself with the seasons of the produce and the trend in market prices. He also said having a rapport with the villages where those produce are bought from was important to minimise cases of theft, robbery and other incidences that could hamper the market.