Jaafar Jaafar
2 January 2009
interview
Alhaji Umaru Lawan, the MD/CEO Superb Feed and Veterinary Services (A Division of Super Fast Foods Industries Ltd), is the Chairman of Small Scale Industrialists Association (Sharada-Kano Branch).
In this interview, Lawan speaks on groundnut crunch that hits manufacturers, how the shortage translates into lack of protein for human consumption, why government should import groundnuts instead of oil, among other issues.
As a leading manufacturer of poultry feed in Kano, what are the challenges you currently face?
As a matter of fact, presently we are faced with an acute shortage of groundnuts. As you know, we utilise its cake which provides 41 percent of the protein in our poultry feed. Now many small-scale industries processing the groundnut cake do no longer exist due to lack of this commodity throughout the country. And we are made to understand that even the major oil millers in Kano are not crushing the groundnuts due to the shortage. I can tell you that most oil mills in the country now use soya instead of groundnuts.
As a matter of fact, very few stocks come in from the neighbouring Cameroon . I am hereby drawing the attention of the federal government to, if it likes, monitor the situation. But the real way here now is, as a matter of urgency, the government must place an order to import groundnuts from outside the country. This is because any other rush to obtain any commodity such as groundnut, maize or any other commodity that we experienced shortage of last season will result in acute shortage, which will also result in high rise in prices. Some people cannot even keep the birds and some of the companies cannot even exist because nowhere you can get this groundnut.
You call on the FG to import groundnuts, don't you think it is better for government to revitalise the comatose agricultural sector than resorting to importation?
Yes, I believe it is better to source the produce within the country but I am only saying this for the sake of survival only in this year. Frankly speaking, some people produce the groundnuts but it is all out. Either it is finished or it is hoarded into stores. I am sorry to say this but the truth is that given its looming scarcity, people have started hoarding it. Government has to resort to import, at least to save the situation temporarily, then afterward, government will continue to support the local production.
What compels oil mills to resort to using soya instead of the usual groundnut?
Frankly speaking if you check, most of the oil millers in Kano here don't have the groundnuts. Some of them do not even stock it as they have since taken their minds from it because there are some insinuations that the federal government had allowed a large stock of oil to be imported into the country. Now try to understand that the oil is already here. So these people are businessmen, and they are afraid that if they stock the nuts, despite the cost which is about N120, 000 per tonne, and the cheap oil imported into the country, then their own will not have any value as they will sell at lost. The only way they could make gainful investment is by selling the cake at a much higher price. So you can now understand how the effect will deal a serious blow to us, the local manufacturers of poultry feed in the country. So I think the wise idea would have been, instead of importing the oil, the groundnuts should be imported so that the millers would crush the groundnuts, sell the cake to serve our requirement and at the same time sell the oil to serve human consumption.
Some manufacturers claim that government mopped up the groundnuts from farmers, what is your take on this?
I think there is nothing wrong if the government buys the stock from farmers in order to sell to the right people at a subsidized rate. When the prices go terribly high, that is. But the point here is: do the correct people get it? That is the point. May be government has to ensure that the correct manufacturers or millers get it at a reduced price.
What is the cause of the acute shortage of groundnuts?
The shortage is due to natural cause. You could recall that we had drought last year. The rainfall drew back earlier before the time it naturally ceases. As a result of this we could not get enough groundnuts, soya, among others. It is dismaying to note that we are complaining in December, and we have about 10 months ahead to reach another October - which is the usual harvesting period. This is a very big problem that government has to do something about.
The real sector of the country is collapsing due largely to power crisis. How do you manage to survive in these trying times?
Well, one has to do his best to survive. The only thing we do here is trying to operate in a very small profit margin. Frankly speaking, most of the little profit we make goes to the purchase of diesel to serve our generators and maintenance of our machines. We hope one day, by the grace of God, the solution will come.
In what way do poultry feed manufacturers impact on the economy of the country?
I can say Nigeria is self-sufficient in this sector. In fact we do provide enough to go round. But I am telling you it is not easy. Although the poultry industry has its own problem, a bunch of problem, I can say we impact the economy and the general wellbeing of the people through provision of protein. I am one of the farmers too. May be I can complain of non performing birds, in other words, the chickens that we're operating now are at about 50 percent production capacity. So it is not easy to keep them up, pay the workers that take care of them. If you do all these you will run at lost. So we hope the federal government will consider the question of allowing parent stocks to be imported so that the farmers will make fortunes by breeding very productive birds. The federal government must do something about this because very few Nigerians can afford to buy eggs. Government has to sit up because it deprives a large percentage of the people a good source of protein.
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