THE VALUE CHAIN OF SUGARCANE ECONOMY
THE VALUE CHAIN OF SUGARCANE ECONOMY
By:
Nurudeen Dauda
August 14, 2017
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On the "Diversification Drive" of the "Economy", my humble suggestion to the federal government is that it should pay more than a "Lip- Service "towards Suger Self- Sufficiency. The federal government should deploy its " Fiscal Policy " towards attaining that. Northern states Governors where most of the Sugarcane potentials are should equally give a collaborative support to the attainment of Suger Self- Sufficiency. With Sugar Economy if vigorously pursued we could sustain the Economy.
Nigeria has a land potential of over 500,000 hectares of suitable cane fields capable of producing over 5 million metric tons of suger. In Nigeria you can grow sugarcane in commercial quantity in the following states: Kaduna, Jigawa, Adamawa, Niger,Kwara, Taraba, Nasarawa, Kebbi, and Kogi etc. The Nigerian Suger market has an estimated potential of 1.7 million metric tons, according to the United States Development of Agriculture ( USDA). Much of the Suger consume in Nigeria is imported from Brazil despite our huge potential.
Nigeria was once described as a country which imports what it has and exports what it does not have. In the early 1990s during the political tension which was ,essentially, from the June 12 elections annulment, Nigeria had a lot of Internal security challenges due to the activities of the then Odua Peoples Congress,OPC, and the National Democratic Coalition, NADECO, alike. More so, it was around that period that Nigeria played a vital role through ECOMOG in restoring order in Liberia and Sierra Leone. It was in the light of that, that some people argued then that Nigeria was busy exporting peace to the said countries at a time when it did not have.
The Central Bank of Nigeria, CBN, Governor Mr. Godwin Emefiele, said that: "Nigeria spends $100 million on importation of white sugar annually." ( Vanguard, May 5, 2017). $100million is about N20billion. In my humble opinion, Nigeria has no business to be importing Suger. With its population alone is a huge market of which if its Suger potential is fully harness it will provide a lot jobs and revenue to the government. Now that the "Chicken has finally come home to roots" we should go beyond "Lip- Service" in our Economic Diversification Drive. Let there be incentives to encourage Sugarcane farmers. Let's woo more both local and foreign investors into the sector.
The sugarcane Industry is one of Brazil’s most important economic sectors in terms of job creation, with more than 1.1 million people employed nationwide. The average wage paid by member companies of the Brazilian Sugarcane Industry Association (UNICA) is said to roughly double their current federal minimum wage. Sugarcane ethanol and bioelectricity produced from leftover fibers, stalks and leaves make sugarcane the largest source of renewable energy in Brazil.
Sugarcane provides almost 17% of the country’s total energy supply, second only to oil and ahead of hydroelectricity. More than forty percent of the country’s gasoline needs have been replaced by sugarcane ethanol – making gasoline the alternative fuel in Brazil. Through its you can produce Bioelectricity. Bioelectricity is a clean and renewable energy, made by biomass – in Brazil, 80% made by the bagasse of the sugarcane. At the same time ethanol is as alternative to the use of oil, bioelectricity is the alternative to supplement the
hydroelectric system . Brazil has a potential production of this energy this source.
Sugarcrops offers production alternatives to food, such as livestock feed, fibre and energy, particularly biofuels (sugar-based ethanol) and/or co-generation of electricity (cane bagasse). Sugarcane is generally regarded as one of the most significant and efficient sources of biomass for biofuel production. Stronger linkages between world sugar and oil prices have emerged, driven in part by the relationships between sugar as the primary ethanol feedstock in Brazil, the world’ dominant producer of sugarcane-based ethanol in the world.
The ten largest producers of Suger are orderly Ranked as: (1) Brazil, (2) India ,(3.) EU, (4) China ,(5) Thailand ,(6) United States, (7) Mexico, (8) Pakistan,( 9) Australia, and (10) Russia. Cuba also has a huge potential of Suger production. Nigeria with our potential we could be in the rank of these Suger producing countries. We absolutely have no excuse not to be a Suger Net Exporter. We have no business in being a Suger Net Importer in view of our Suger potential. Let's pick up the challenge! The collapse of the price of crude oil at International market should be our moral booster.
May God bless Nigeria!