November 06, 2019 /10:00AM / By KPMG Nigeria / Header
Image Credit: KPMG Nigeria
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.
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
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.
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.
document we present an analysis of the rice industry and the tremendous opportunities
across the various value chains.
Nigerian Agriculture Sector -
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 â€“ 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
Nigerian Agriculture Sector - Key
Global Rice Industry - Overview
- Rice is
the primary staple food for more than half of the world's population - over 3.5
billion individuals depend on rice for more than 20% of their daily calories - with Asia, South America and Sub-Saharan Africa the largest consuming regions.
- Rice is
the second largest staple crop, behind corn (maize). It is produced over vast
areas of the world, with the area of land totalling 161million hectares
harvested for rice in 2017.
- Four major
types of rice are produced worldwide:
(75% global production), the most common type, is majorly grown in the
tropics and subtropics including India, Central and Southern China, and
(8% global production) is from Northern and Eastern China, and grown
extensively in cooler zones of the subtropics and temperate zones.
(Jasmine and Basmati) (15% global production) is mainly found in
Northwestern India and Pakistan.
rice (<2% global production) is grown mainly in Southeast and East
- About 729
million tonnes of rice paddy was produced in 2017 (488 million tonnes of milled
rice), with 652 million (~90%) produced in Asian countries. Sub-Saharan Africa
produced about 25 million tonnes (~3.5%); Northern Africa, about 6.2 million
tonnes (~0.8%); and Latin and Central America, along with the Caribbean, about
27 million tonnes (~3.7%).
production recorded significant growth since the start of the 'Green
Revolution' (between the 1930s and the late 1960s) due to advances in research
and development, leading to the improvement of modern agricultural inputs and processes
â€“ irrigation, fertilisers, improved, high-yield, disease-resistant seeds,
pesticides, and mechanisation.
- About 700
million tonnes of rice paddy was produced in 2018 (485 million tonnes of milled
rice)3, with 90% (640 million) produced in Asian countries. Sub-Saharan Africa
produced about 3.5% (19 million tonnes ); Northern Africa, about 0.8% (6.2
million tonnes ); and Latin and Central America, along with the Caribbean,
about 3.7% (27 million tonnes).
the years (and also in 2018), China and India alone have accounted for about
50% of the global rice production and consumption. However, strong economic
growth has halted the upward trend in per capita rice consumption, due to
diversification of consumers diets.
provides up to 50% of the dietary caloric supply for hundreds of millions in
Asia and is, therefore, critical for food security. In Sub-Saharan Africa, rice
is the fastest growing staple food, with annual per capita consumption of
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on Border Closure
Nigeria's Foreign Minister Onyema, Lists Four
Conditions For Reopening Borders - Nov 05, 2019
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We Don't Have a Rice Problem - Understanding Sovereign
Comparative Advantages - Tosin Adeott, Nov 04,
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on What Is Possible - Olufemi Awoyemi, Nov
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The Economics of the Rice Conversation - Between A Rock
and a Hard Place - Oct 31, 2019
The Effects of Nigeria's Closed Borders on Informal Trade
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Thoughts on Nigeria's Rice Bubble - Fasua - Oct
Border Closure Takes Its Toll on The Price Of Rice - FDC, Oct
Inflation Succumbs to Border Closure and Money Supply
Growth - Spikes to 11.24% - FDC, Oct 16, 2019
Border Closure Hitting the Price of Rice - CSL
Research, Oct 04, 2019
Border Closures May Only Offer Temporary Subsidy Reprieve - CardinalStone
Research, October 11, 2019
Effects of Closing the SEME Border - Coronation
Research, Oct 15, 2019
Border Closures Begin to Take Toll on Prices - CardinalStone
Research, Oct 15, 2019
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