Low productivity, market gaps trap farmers in poverty — Experts

By Cynthia Alo & Kafayat Kokumo

Industry experts have said Nigerian farmers are trapped in poverty by low productivity and supply chain gaps that can cost smallholders up to 60 per cent of their produce.

They spoke recently at the second edition of the Climate Smart Agriculture Dialogue Series organised by TransGreen Foundation, where they identified low yields, fragmented markets, inadequate financing, weak extension services and climate change as major constraints to agricultural development.

Speaking during the webinar held under the theme, ‘Can Regenerative Agriculture Feed Africa?’ Country Director, Sasakawa Africa Association, Nigeria, Dr. Godwin Atser, said Nigeria’s agricultural productivity remained significantly below that of countries such as India, leaving Nigerian farmers with far lower incomes.

He said: “Our farmers are trapped in poverty. And this is because if you look at the productivity compared to India across key crops, whether you are talking of rice, wheat or maize, a country like India has higher productivity than Nigeria.

“And what that means is that they cannot compete. So, low productivity is very key. And if we want our farmers to overcome this, we have to solve the issues around low productivity.

“While a Nigerian farmer gets about $480 or $490 per annum, a farmer in India earns about $2,000 per annum.”

Atser said climate change was worsening the situation through rising temperatures, floods, drought, heat, emerging pests and diseases, conflicts and soil degradation.

“Climate change is a challenge. It is here with us and continues to undermine the gains that we are making.”

He said Sasakawa had shifted its focus five years ago from productivity enhancement to regenerative agriculture, combining soil fertility management, conservation agriculture, market-oriented farming, nutrition, digital extension and inclusivity.

Atser said the approach had increased yields in Kano by more than 200 per cent for rice, 160 per cent for maize, 160 per cent for millet and 150 per cent for sorghum compared with the baseline.

“Regenerative agriculture can be a major part of how Africa feeds itself. But it must be combined with improved seeds, irrigation, organization, markets, finance, extension, digital services and efficient input systems.”

On his part, Group Head, Agriculture and Solid Mineral Finance, Sterling Bank Plc, Dr. Olushola Obikanye, said weak market structures were also eroding farmers’ earnings, with smallholders losing between 50 and 60 per cent of their produce depending on the commodity.

He said access to finance was also constrained by poor data and measurable outcomes, stressing that regenerative agriculture required patient capital.

He said: “We have a hugely fragmented market supply chain structure and that is the reason why to a very large extent the inability to be able to hold on to our produce and provide them to the right market has caused the smallholder farmer to lose as much as 50, 60% of his produce.”

“For as long as there is a depth of knowledge, there is lack of market structure, then there will always be issues with financing because financing thrives on data, financing thrives on outcomes.

“Grace periods and structures must be aligned with what I would call biological transition rather than the traditional harvest cycle.”

Obikanye said insurance, technical assistance, market access and better data were critical to reducing risks and making agricultural finance more affordable.

The post Low productivity, market gaps trap farmers in poverty — Experts appeared first on Vanguard News.