AGRICULTURAL PRODUCTION AND COMMERCIALISATION (US$84.4M)
This provides resources to facilitate adoption of technologies and supports staple crop production systems which will compliment Nigeria’s food security initiative and develop domestic and export markets.
This component will provide resources to facilitate the adoption of appropriate and existing agriculture technologies. It will also support staple crop production systems to complement the country’s food security initiatives and develop domestic and export markets. The activities supported under this component will focus primarily on the selected value chains.
The component has four sub-components.
Technology Demonstration and Adoption
This sub-component will finance,
(i) demonstration and dissemination of technologies in the selected value chains to be provided by a mixture of existing potential service providers from the public (i.e. research institutes and Agricultural Development Programs (ADPs) and private sectors(US$6.6). It will finance the demonstration and dissemination of a variety of improved technology packages identified by small and medium scale farms using the structures of the CIGs/CADAs, and will include: propagation, use of high quality seeds and seedlings of improved, exotic, high yielding and pest and disease resistant varieties, improved agronomic practices (water management, spacing, pruning, grafting etc), cocoa beans drying, palm oil and kernel oil extraction, hatchery development for fingerlings and day-old chicks, waste water management for aquaculture, feed compounding using local materials using floating feed, fingerling stocking density, fish health and disease management, water quality management for aquaculture (sustainable removal of nitrogen from water system, water pollution reduction, and water recirculation and flow through technology), technologies for egg and birds transportation, artificial insemination, milk hygiene and cold chain; and
(ii) Matching Grant (US$15.0M): The project will provide matching grants of about US$15.0 million. The total amount for grant is US$15.00 out of which US$8.00M will be in grants to support public goods elements under staples to be applied on 50: 50 basis with the project beneficiaries at the CIGs and CADA levels.
This is a one-time Capital Grant for investments needed to improve the adoption of existing agricultural technologies by participating commercial farmers. The matching grant is to support the adoption of known and superior technologies and build capacity of small and medium-scale commercial agriculture farmers. This will enable them to take advantage of market opportunities for their produce. The matching grant is open to all qualified/eligible Commodity Interest Groups (CIGs) and/or members of Commercial Agriculture Development Associations (CADAs).
Four sets of criteria will guide the selection of proposals, and these are: Viable technology, Public goods element and Economic and financial viability. The activities that could be supported by the matching grant will include the following among others:
Aquaculture: Fingerling Production and Hatchery Development, Fish Feed Production Technology, Fish Smoking, Drying, Packaging, Branding and Quality Control.
Rice: Seed Multiplication/Production, Processing, De-stoning Technology, Milling Technology, Parboiling Technology, Packaging and Branding.
Dairy: Artificial Inseminations, Milking Technology, Milking Processing, Packaging, Branding and Quality Control.
Fruit Trees: (Citrus, Mango, Guava, Pineapple, Passion and Cashew): Seedling Multiplication/Production, Processing, Fruit Juice Production and Packaging, Quality Control and Branding.
Oil Palm: Seed Multiplication, Production, Processing, Palm and Kernel Oil Extraction, Processing, Packaging, Branding and Quality Control.
Cocoa: Seed Multiplication/Production, Processing, Cocoa Bean Drying Technology
Poultry: Hatchery Technology, Processing, Packaging, Branding and Quality Control, Cold Chains.
Maize: Seed Multiplication/Production (hybrid and other improved open-pollinated varieties), Processing, Flash Drying Technology, Quality Control, Packaging and Branding
The detailed description and implementation of the Grant mechanism is contained in Project Implementation Manual (PIM), For adoption of new technologies, the formula for the matching grant will be 50% to 20% contribution from IDA on a sliding scale at the association level.
Support to Staple Crop Production System (US$50.0M)
The combined factors of climate change and the recent phenomenal rise in crude oil prices have been associated with global soaring of food prices. The impacts are being felt in Nigeria as in many other countries. However, to compound the situation in Nigeria, the 2007 rainy season in the northern states which are the food basket of the country, ended prematurely in early September and resulted in poor yield and low harvest. The Federal Government of Nigeria has responded to the food crisis through measures that are expected to increase the supply of food staples and arrest or at least reduce the rise in prices. Some of these measures include the release of stocks from the Strategic Grains Reserve which several State Governments are also doing. The Federal Government has relaxed the tariffs and suspended import duties for rice. It also made the decision to allocate 1.6% of federal revenues to the Natural Resources Fund which will amount to about US$ 1.7 billion over the next 5 years for food security and agricultural development. In addition, the Federal Government has requested its donor partners to support its initiatives on combating the rising food prices in Nigeria. In response to the explicit Government request that this project is used to support its on-going initiative to address the issue of the rising food prices, the project will provide US$50.00M out of the total project Credit of US$150.0M to support basic staple crops production of maize and rice. The design of this sub-component is consistent with the main thrusts of the instruments of Bank support under the Global Food Crisis Response Programme Framework, particularly on enhancing domestic food production and marketing response. . Using the approach stipulated in (a) above, this sub-component will support mainly small-scale commercial farmers to rapidly increase their staple crop production through the adoption of improved technology based on intensification and expansion of their rice and maize land holdings. The sub-component will finance development/preparation of existing land holdings for staples, seed multiplication to increase the availability of improved rice and maize seeds, dedicated extension/advisory services for rice and maize staples, soil and water management, animal traction and rotary cultivators, and primary processing technologies. The sub-component will also finance post-harvest handling centres and on-farm storage to reduce high post-harvest losses among small-scale commercial farmers. These centres will be located in high production areas and will be operated under public-private partnership arrangements where the centres are financed by the project but their day-to-day management will be handled by the CADAs.
Market Facilitation (US$7.9M)
The sub-component aims at the creation of domestic and export markets; this will support market development, awareness and knowledge sharing for commercial farmers. It will finance market information system, including market price surveys, website and information kiosks, market/financial linkages, (including promotion of products for supply chain financing, use of crops as collateral) quality control measures and standards; food safety, exchange programs, agricultural trade fairs and shows, local and international study tours.
Capacity Building (US$4.9M)
The sub-component will focus on the training of commercial Commodity Interest Groups (CIGs) and Commercial Agriculture Development Associations (CADAs) that will play a coordinating role in the project. The sub-component will assist to develop the capacities of the CIGs/CADAs to plan and execute their projects. The training will also include gender mainstreaming and social impacts. This sub-component will finance the following activities: interactive sessions, discussions with experts, group dynamics, investment plans, food safety, grading and quality standards, study tours and exhibitions, production techniques and preventive maintenance of machines and equipment. In addition, it will also facilitate linkages between commercial farmers to commercial banks, including promoting the development of financing products such as using crops as collateral, warehousing, supply chain financing, and use of crops for future markets.
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