Can Bringing Back Produce Boards Help Our Farmers
Posted: Tue Jul 25, 2017 8:17 pm
Seriously, do we need to bring back Agricultural produce boards to help absorb products from our farmers?
Marketing?commodity boards existed in Nigeria in the pre-1960 era in the different regions in the Country. By 1977 Act 26 of 1977 dissolved the Nigerian Produce Marketing Company Limited and all the States Marketing Boards and in their place set up six new Commodity Boards . The Commodity Boards were for rubber, cocoa, groundnut, palm oil, grains and cotton marketing boards. These boards helped in the production and export of palm oil, (Eastern Nigeria/Mid-West), groundnut and cotton (Northern Nigeria), cocoa (Western Nigeria) and rubber (Mid-West). The boards ensured that the products from farmers were purchased at a guaranteed price per grade thus insulating farmers from the variances of price and serves as a hedge against losses as the farmers are guaranteed an outlet for goods thus limited post harvest losses. this encouraged production as there was a guaranteed buyer and a guaranteed price. Because prices were announced at the beginning of the planting season, prices are stabilised. The produce boards served as connection between farmers and the value added chain companies for processing products and export. In those times, the Boards were effective such that they became the dominant economic colossus like the NNPC of today controlling buying and selling of produce and by 1961 they controlled about 63% of the forex earned by the country, acted as monopolies in buying and selling and even collected tax. Also, because almost all trading involved the boards, statistics was easily available and the scope of extension services known.
However, the Commodity Boards started to decline. Apart from the discovery of crude oil that lead to the general neglect of the Agriculture Sector, the commodity boards became inefficient. They became infected with bureaucratic bottlenecks, corruption, abuse of office and ultimately export declined and the boards were scrapped. Farmers were let at the mercy of individual export businessmen for patronage.
Marketing/commodity Boards still exists in the world. in Canada there Boards for Wheat, Dairy, Pork, Chickens, Eggs etc. In Ghana there is the Cocoa Board. In India there are several Agricultural Boards.In Ireland there is Dairy Board. In the US there are several national and State Boards. But in Nigeria, Boards are almost non existent.
There has been attempts at reviving the Produce Boards. In 2014, the FG announced it was considering introducing Produce Boards to be run by the private sector to help insulate farmers from loses. Of recent Osun State established a Produce Board which has set its sights on Kolanuts.
The questions now are, do we bring back produce/marketing Boards? If yes, should it be Government Owned or Strictly private? How do we prevent Cartels from forming? How do we prevent the ills that led to the collapse of the last Commodity Boards not rear its head to destroy this latest efforts. And why hasn't the Government facilitated this process before now? Or is the present arrangement better than Commodity Boards? Or is this an area for young entrepreneurs to venture into, set up world class produce boards to support Agriculture.
Marketing?commodity boards existed in Nigeria in the pre-1960 era in the different regions in the Country. By 1977 Act 26 of 1977 dissolved the Nigerian Produce Marketing Company Limited and all the States Marketing Boards and in their place set up six new Commodity Boards . The Commodity Boards were for rubber, cocoa, groundnut, palm oil, grains and cotton marketing boards. These boards helped in the production and export of palm oil, (Eastern Nigeria/Mid-West), groundnut and cotton (Northern Nigeria), cocoa (Western Nigeria) and rubber (Mid-West). The boards ensured that the products from farmers were purchased at a guaranteed price per grade thus insulating farmers from the variances of price and serves as a hedge against losses as the farmers are guaranteed an outlet for goods thus limited post harvest losses. this encouraged production as there was a guaranteed buyer and a guaranteed price. Because prices were announced at the beginning of the planting season, prices are stabilised. The produce boards served as connection between farmers and the value added chain companies for processing products and export. In those times, the Boards were effective such that they became the dominant economic colossus like the NNPC of today controlling buying and selling of produce and by 1961 they controlled about 63% of the forex earned by the country, acted as monopolies in buying and selling and even collected tax. Also, because almost all trading involved the boards, statistics was easily available and the scope of extension services known.
However, the Commodity Boards started to decline. Apart from the discovery of crude oil that lead to the general neglect of the Agriculture Sector, the commodity boards became inefficient. They became infected with bureaucratic bottlenecks, corruption, abuse of office and ultimately export declined and the boards were scrapped. Farmers were let at the mercy of individual export businessmen for patronage.
Marketing/commodity Boards still exists in the world. in Canada there Boards for Wheat, Dairy, Pork, Chickens, Eggs etc. In Ghana there is the Cocoa Board. In India there are several Agricultural Boards.In Ireland there is Dairy Board. In the US there are several national and State Boards. But in Nigeria, Boards are almost non existent.
There has been attempts at reviving the Produce Boards. In 2014, the FG announced it was considering introducing Produce Boards to be run by the private sector to help insulate farmers from loses. Of recent Osun State established a Produce Board which has set its sights on Kolanuts.
The questions now are, do we bring back produce/marketing Boards? If yes, should it be Government Owned or Strictly private? How do we prevent Cartels from forming? How do we prevent the ills that led to the collapse of the last Commodity Boards not rear its head to destroy this latest efforts. And why hasn't the Government facilitated this process before now? Or is the present arrangement better than Commodity Boards? Or is this an area for young entrepreneurs to venture into, set up world class produce boards to support Agriculture.
