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How to ensure food security in Nigeria amid the COVID-19 crisis
Olam Nigeria says it plans to produce a total of 240,000 metric tons of rice in the new farming season. Olam's announcement comes amidst a farming season disrupted by Covid-19. Anil Nair, Vice President and Head of Rice Business at Olam Nigeria joins CNBC Africa to discuss this and strategies for food security in Nigeria within a pandemic.
Mon, 08 Jun 2020 15:09:57 GMT
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AI Generated Summary
- Olam Nigeria aims to increase rice production by 240,000 metric tons despite challenges posed by the COVID-19 pandemic, signaling a shift towards domestic self-sufficiency in food production.
- The company's expansion plans and partnerships with farmers and outgrowers highlight a concerted effort to bolster agricultural capacity and secure the nation's food supply chain.
- Government support, awareness campaigns, and policy interventions have played a crucial role in mitigating the impact of the pandemic on agricultural operations and facilitating the movement of essential goods.
Olam Nigeria, a leading player in the agricultural sector, has announced plans to ramp up rice production by 240,000 metric tons in the upcoming farming season. This move comes amidst a backdrop of disruptions caused by the COVID-19 pandemic, which has posed challenges to farmers across the country. Anil Nair, Vice President and Head of Rice Business at Olam Nigeria, recently appeared on CNBC Africa to shed light on the company's strategies for ensuring food security in Nigeria during these unprecedented times.
Nair highlighted Olam's longstanding presence in the agricultural sector, with a strong focus on expansion and capacity-building. The company operates in 36 states, with a network of over 22,000 outgrowers and partnerships with numerous farmers. Despite the current global economic uncertainties affecting supply chains, Olam had planned to increase its milling capacity by 75,000 tons in Rukubi and an additional 120,000 tons in the near future. However, the implementation of these plans has faced delays due to the ongoing pandemic, which has hindered access to equipment and resources.
With Nigeria's agricultural sector facing challenges, Nair emphasized that farmers are keen to expand their cultivation areas, especially in the absence of imports following border closures. The shift towards domestic production has led to increased activities in rice paddies and other crops, offering a ray of hope for sustained food security in the country. Nair commended the government's efforts in raising awareness, establishing isolation centers, and providing support to farmers through initiatives like the Central Bank of Nigeria's input subsidies.
While discussing the impact of COVID-19 on Olam's operations, Nair highlighted the company's resilience in navigating the crisis. By implementing strict hygiene measures, ensuring social distancing, and leveraging support from government agencies, Olam has managed to sustain its operations without significant disruptions. Nair also lauded the collaboration between public and private sectors in facilitating the movement of essential goods and raw materials, despite logistical challenges and increased operational costs.
Regarding government policies, Nair noted the focus on empowering smallholder farmers and enhancing agricultural productivity. Initiatives such as microfinancing, provision of fertilizers, and distribution of relief packages have been instrumental in supporting farmers during these challenging times. Nair acknowledged the initial chaos caused by interstate restrictions and border closures but highlighted that swift interventions by relevant authorities helped streamline the movement of essential commodities.
In conclusion, Nair expressed confidence in Olam's ability to achieve its production targets for 2020 despite the prevailing uncertainties. With a strong emphasis on operational efficiency, adherence to safety protocols, and government support, Olam remains committed to contributing to Nigeria's food security objectives. As the planting season progresses, the company stands poised to play a pivotal role in ensuring a stable supply of rice and other essential agricultural products for the nation.
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