Agriculture | |
Agriculture | |
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Wednesday,
November 06, 2019 /10:00AM / By KPMG Nigeria / Header
Image Credit: KPMG Nigeria
Introduction
The Nigerian
agricultural landscape is changing, with increased government policies aimed at
stimulating private sector involvement and boosting local production of key
products. In line with the diversification drive of the current administration
as well as in fulfilment of one of its cardinal pillars of food security, it is
expected that the government will continue to prioritise activities within the
Agriculture sector through targeted policies to attract investments.
Globally, rice
is a staple food to over 50% of people, providing over 19% of global human per
capita energy. Human consumption accounts for about 78% of global production
while the balance serves
other uses such
as feed.
Rice is one of
the major staple foods in Nigeria, consumed across all geo-political zones and
socioeconomic classes in Nigeria. Only about 57% of the 6.7 million metric
tonnes of rice consumed in Nigeria annually is locally produced, leading to a
supply deficit of about 3 million metric tonnes.
With rapid growth in the country's population which is estimated to exceed 200 million by 2019, it is expected that the demand for rice will be sustained and increased in the foreseeable future.
In this document we present an analysis of the rice industry and the tremendous opportunities across the various value chains.
Nigerian Agriculture Sector - Overview
Crop production covers the production of cash crops (Cocoa, Rubber, etc) as well as staple foods (Rice, Maize, Cassava,etc). This sub-sector is the major driver of agricultural sector output; contributing an average of 90% to the total agricultural sector output between 2012 and 2018, growing at a CAGR of 3.6% over the same period.
Livestock/ Animal production covers the
rearing and sale of animals and animal derivatives
(animal products) for consumption. Over the past period
2012 – 2018, livestock production has grown at a CAGR of
4.4% and accounted for an average annual contribution of 7%
to the entire agricultural sector output.
Fishery includes activities aimed at
rearing fish and other aquatic animals. The subsector accounted for an average
of 2% of the annual agricultural sector output and grew at a CAGR 4.4% between
2012 and 2018.
Forestry entails the legal planting and
felling of trees. This sub-sector has contributed an average of 1% to the
entire sector output; and grown at a CAGR of 4.0% between 2012 and 2018.
Nigerian Agriculture Sector - Value
Chain
Nigerian Agriculture Sector - Key Trends
Global Rice Industry - Overview
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