Why we are investing N2.2b in rice production — Wems Agro

Following Dangote’s $1billion investment in rice production in Nigeria, another company has pledged to invest about N2.2 billion in cultivating about 25,000 hectares of land at Akotogbo in Ondo state with a promise to create 2500 jobs.

Speaking on the project, the Chairman of Wems Agro Companies, Rotimi Wemi-Akinsola, said Nigeria has a vast arable land and lots of water to plant rice.

But, he regretted that the country does not produce up to 15% of the 22.5 million bags of rice consumed in the country monthly.

“Rice growing and consumption historically has been based in south East Asia, where most of the world’s rice is still grown.

The fast growing market is sub – Saharan Africa (SSA) where rice production falls far below consumption and where the FAO forecasts that rice will be the largest staple food by 2030.”

He added “Nigeria’s per capital consumption is estimated to be

78 kg per capital giving a total consumption of 6.1m tones for 2014. Half of this, 3 million tones, is imported at N356 billion it is accepted a heavy burden on the Nigerian balance of payments. “

Rotimi Wemi-Akinsola noted that his company is investing in the rice project in Ondo with the intention of taking advantage of the Nigerian market opportunity and help it become self sufficient in rice as well as helpdevelop a profitable agricultural industry in Ondo State.

“There is no history of rice production in Ondo State although the weather and soil conditions are suitable. Wems Agro will be introducing rice production having found suitable available land.

This will bring employment and social benefit, introduce a new agricultural technology to the state, act as an economic centre and be profitable to all concerned.”

Agricultural technology

He disclosed that rice production will be based on a sustainable System of Rice Intensification (SRI) methodology, together with a 2 – year rotation, where rice is grown twice in a year and this will be followed by one year of a green manure fertility building crop.

“600 ha will be cultivated in 2015, this relatively small area will ensure Wems Agro establish best work practices. A rain fed system will be used in years 2015 – 17 followed by the introduction of irrigation in 2018 to allow for two crops per year.”

He added that the initial project has a target of 5400 hectares in rice production, cropped twice a year, with a further 5,400 hectares in the fertility – building phase.

Speaking on the yield estimates, Wemi-Akinsola said yields will be relatively low at four tones per hectare to take into account, what the Japanese call, ‘New Rice Disease’. “This is a syndrome whereby the yield is commonly found to be low when rice is first introduced to new land.”

He said their forecasts yields thereafter, are conservative at five tones per hectare for rain fed rice and six tones per hectare for irrigated rice. The expectation is that these will be easily achieved and surpassed.

SUSTAINABILITY

Wemi-Akinsola disclosed that one of the major aims of the project is to produce rice as sustainably as possible with low unit costs of production to enable rice to be processed and marketed at an affordable price.

He explained that System of Rice Intensification (SRI) they will be using reduces seed costs, input costs, water usage, and at the same time increases production by up to 30 percent “As a point of interest, an Indian farmer, who is using SRI, has achieved a yield of 14 tones per hectare, this is the world record for rice production.

The system has the added social benefit of providing local employment in the weed control phase to a large number of people.”

He added “In the WEM AGRO business model it is the local community who will be contracted to hand weed the rice. Hand weeding is much more effective than tractor mechanical weeding and is an important step in SRI cultivations.

“It is hoped that this project will act as catalyst for the region to become a hub of sustainability. The project will grow from 600 ha in year one to 5400 ha (double cropped) in year five, and produces profits from year one.

Vanguard