…as Olam’s model spurs massive rice production in states
Perhaps what is at present boosting women and rural participation in rice production in some states is the Nigeria Rice Outgrower Value Chain Development Programme put in place to spur more interest in rice farming across the country.
The United Nations/International Fund for Agricultural Development (IFAD), in partnership with the Federal Government of Nigeria and Olam Nigeria Limited, developed the programme in 2015.
The programme (VCDP) is a value chain in rice production with rural farmers formed into cooperatives. The farmers are supplied quality inputs, granted access to financing, storage and logistics for transporting their produce to the buying centres; trained in Good Agricultural Practices (GAP) and guaranteed buyback of their produce.
Similar arrangements are also done for tomato farmers in Kano by Dangote Tomato Processing Company in the state.
How the rice out-grower scheme works
The Rice Outgrower Value Chain Development Programme is being implemented by Olam Nigeria Limited, which supplies farmers with quality inputs, grants them access to financing, storage and logistics for transporting their produce to the buying centres.
The buyback transaction happens at designated buying centres at prevailing market prices with payments made into farmers’ accounts within 48 hours of the transactions.
The paddy purchased is thereafter processed into high quality rice for domestic consumption.
According to Mr. Reji George, Vice President, Olam Farming Initiatives, the decentralised procurement model is managed by Olam Farm coordinators at remote villages, covering a cluster of cooperatives. “These 30 farm coordinators open bank accounts for each farmer, facilitate storage and logistics access, deliver inputs and the training module to farmer cooperatives.
“They help to avoid the diversion of the produce as well as middlemen who usually exploit the farmers on weights and prices,” he said.
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