1 Working together to improve fertilizer supply in Nigeria

FDAE organizes Agricultural Extension Planning Review

Meeting

The Federal Department of Agricultural Extension (FDAE) of the Federal Ministry of

Agriculture organized an Agricultural Extension Planning Review meeting at Auta Balefi,

Km 26, Abuja-Keffi expressway, Nasarawa State on 23rd June, 2014.

The meeting was chaired by Mr. O. A. Edache and attended by participants from different

states and the FCT. It was a forum in which FDAE and ADPs, NASC, NAIC, NPC,

Fadama III, SG 2000, Cellulant, TOAN and FEPSAN met to review extension programs

for 2014 under the following topics: 2014 extension activities plans and prospects, issues

from ADPs on extension delivery in Nigeria, insurance for farmers, leveraging on fadama

information knowledge services, MTP models, and strengthening agricultural extension

services delivery through mechanization.

After deliberations and due considerations of the issues raised, the meeting agreed and

recommended the followings: harmonization of extension programs, resumption of

training of farmers by the ADPs, ADPs to be supported with digital cameras with GPS for

field work, FDAE to fund responsibilities to be performed by ADPs and be measured

based on it, urged the state governments to pay more attention to extension and to recruit

more extension staff, database generation by the ADPs, Gender and Youth Department

to work with ADPs in states they operate, linkage between FDAE and ADPs for effective

communications. It was agreed that Management Training Plots (MTPs) will commence

in twelve pilot states namely: Taraba, Bauchi, Nasarawa, Kogi, Kaduna, Kebbi, Oyo,

Osun, Enugu, Ebonyi, Akwa-Ibom and Delta. The director extension thanked all the

participants for their contributions for the success of the meeting and said another meeting

of stakeholders will be conducted in next three month. FEPSAN

Fertilizer Suppliers Association of Nigeria

NEWSLETTER

November, 2013

V o l u m e 4 N o 7

FDAE organizes Agricultural Extension Planning Review Meeting …Page 1

A good Agro dealer environment attracts farmers for a better business relationship

…..Page 2

Agric Ministry Explains EFCC Invitation, Denies Complicity in Fertilizer Scam …...Page 2

How much fertilizer is too much for the climate

…..Page 3

Nigeria to launch crop insurance for farmers

…...Page 3

Fertilizer Market Report for July 2014 …page 4

INSIDE THIS ISSUE

2 Working together to improve fertilizer supply in Nigeria

Agric Ministry Explains EFCC Invitation,

Denies Complicity in Fertilizer Scam

The Federal Ministry of Agriculture and Rural Development has

denied its involvement in the alleged N2.4 billion fertilizer scam,

following recent invitation of the Permanent Secretary, Mrs.

Ibukun Odusote, and three directors by the Economic and

Financial Crimes Commission, EFCC. Odusote, who made the

clarification at a press briefing in Abuja, said there was no basis

for the claims made to tarnish the image of the ministry. Odusote

said: “We are not involved in fertilizer purchase and sale because

government officials are not in the process.

“It is important to clear this that the Ministry is no longer

involved in procuring fertilizer, and it cannot be true that we

have any business with the alleged N2. 4 billion fertilizer scam.

“I was at EFCC last week to make clear about the alleged N2.4

billion. What the EFCC wanted was to confirm if we have

actually paid them and we confirmed that we haven’t paid them.

“We have not paid because we needed to clear all that needs to

be cleared. We are clear with our system and have received

advice on how to pay but only on the basis of what we have.

“The EFCC said we should pay what we owe the agro-dealers

and we have started paying them the money.

“I don’t know any agro-dealer because there are so many of them

and they are at various redemption centres, and I don’t go there.

“There are people who have robbed the government in the past

who are not happy with the transparent mechanism put in place

in the process of fertilizer distribution, and are fighting it”.

However, the permanent secretary disclosed that there was an

intended fraud by three agro-dealers, who borrowed money from

their banks, with which they had issues. She listed the agro-

dealers as Madalla Enterprises, Ani B. Barak Nigeria Limited

and Al Iman Agro Ventures Limited.

Source: www.informationng.com

A good Agro dealer environment attracts farmers for a better business relationship By Segun Adesola, Technical Officer, FEPSAN

Like any other business owners, farmers today rely on support of

agro dealers not only for products and services, but for knowledge,

expertise, and reliable advice. To win and keep a farmer; an agro

dealer has to do more by offering a mutual and trustful relationship

that adds value to what the farmers does. The agro dealer can ensure

this by taking the following measures:

Register appropriately: Make sure you are duly registered with at

least one of the following: your state or local government agro

dealers association, fertilizer and other input suppliers especially

FEPSAN, SEEDAN, Crop Life etc.

Create good relationship with suppliers: Ask questions from the

suppliers whenever a new product is introduced for betteer

understanding and knowledge of its proper use

Increase your knowledge base: Upgrade yourself with latest

agricultural practices by attending training seminars organized by

ADPs, research institutes, projects like SG 2000, input suppliers like

FEPSAN, SEEDAN, Crop Life, etc so that you will be able to

advise farmers effectively

Pass on the knowledge: Transfer the latest agronomic practices and

other knowledge obtained through the trainings, workshops and

seminars attended to the farmers. Be sure the information you are

passing to farmers is from reliable sources.

Sell right quantity and quality input at right price: offer farmers the

right quality and quantity fertilizer and other inputs. Do not sell

damaged, adulterated and expired inputs to farmers just to make

profit. Do not re-bag fertilizer due to high demand of a particular

brand because in the process nutrients will be lost and contaminants

may be added, thus short changing the farmers.

Create a feedback mechanism: Always ask farmers if they are satisfied

with your services i.e. there should be a feedback mechanism. Also

pass the farmers complains to suppliers, researchers and extension

staff when necessary

Always listen and attend to the farmer: Be ready and willing to

attend to farmers at anytime on issues related to fertilizer and other

inputs, if you cannot answer immediately ask them to come back or

refer them to where they can get the right solution.

Good warehousing: A good and well ventilated warehouse is

necessary for storing agric inputs. Keep each type of input in a

separate stack. Do not mix the inputs. Keep sufficient amount of

fertilizer and other inputs for farmers to choose from.

3 Working together to improve fertilizer supply in Nigeria

How much fertilizer is too much for the climate?

Helping farmers around the globe to apply more-precise nitrogen-based

fertilizer can help combat climate change and reduce the negative

impact of chemical fertilizer use.

In a new study, Michigan State University researchers provided an

improved prediction of nitrogen fertilizers contribution to greenhouse

gas emissions from agricultural fields. The study uses data from around

the world to show that emissions of nitrous oxide, a greenhouse gas

produced in the soil following nitrogen addition, rise faster than

previously expected when fertilizer rates exceed crop needs.

Nitrogen-based fertilizers spur greenhouse gas emissions by stimulating

microbes in the soil to produce more nitrous oxide. Agriculture accounts

for around 80 percent of human-caused nitrous oxide emissions

worldwide, which have increased substantially in recent years, primarily

due to increased nitrogen fertilizer use.

"Our specific motivation is to learn where to best target agricultural

efforts to slow global warming," said Phil Robertson, director of MSU's

Kellogg Biological Station Long-term Ecological Research Program.

"Agriculture accounts for 8 to 14 percent of all greenhouse gas

production globally. We're showing how farmers can help to reduce

this, by applying nitrogen fertilizer more precisely."

The production of nitrous oxide can be greatly reduced if the amount of

fertilizer crops need is exactly the amount that is applied by farmers.

When plant nitrogen needs are matched with the nitrogen that's

supplied, fertilizer has substantially less effect on greenhouse gas

emission, Robertson said.

Iurii Shcherbak, lead author noted that the research also informs about

fertilizer practices in under fertilized areas such as sub-Saharan Africa.

"Because nitrous oxide emissions won't be accelerated by fertilizers until

crop nitrogen needs are met, more nitrogen fertilizer can be added to

under fertilized crops with little impact on emissions," he said.

Adding less nitrogen to over fertilized crops, however, would reduce

greenhouse gas emissions in those regions. Source: www.sciencedaily.com

Nigeria to launch crop insurance for farmers

Following the 2012 flooding which destroyed some crops

and farmland leading to low productivity and loss of crops to

farmers, the Federal Government is set to launch national

crop insurance for farmers. This was made known by the

Minister of Agriculture, Dr Akinwumi Adesina, in Abuja,

during a workshop on water management solutions for flood

recession and dry season agriculture in Nigeria.

Adesina said the program, which would start from 2015 and

targeted at 10 million farmers, would insure farmers against

shocks and losses from weather-related events.

“Our goal is to insure no fewer than 10 million farmers. We

will also design and implement a flood disaster payment

policy that will protect farmers, communities and states from

economic losses due to flood,” Adesina said.

He also stated that water must be managed efficiently to

improve production, stressing that water would be the most

limiting factor affecting food production.

“We must improve the efficiency with which we use water

and get more grains per drop of water. To achieve this, I

believe we must focus on small scale water management

system, not just the large scale irrigation schemes,” he said.

Adesina added that “small-scale water management systems

are more cost-effective, easier to implement, reaches millions

of farmers, have greater impacts on expanding food

production and food security.”

Speaking on International Water Management Institute

(IWMI) collaboration in Nigeria, Adesina said the project

would be in two phases. The first phase, he explained, would

focus on creating an evidence-based framework on assessing

floods and a flooding pattern for decision making purposes.

Source: www.tribune.com.ng

4 Working together to improve fertilizer supply in Nigeria

Fertilizer Market Price Report for July 2014

For more information contact:

FEPSAN Nigeria Office Address 2nd Floor, Bank of Industry Building

18 Muhammadu Buhari Way, Kaduna, Nigeria Email: fepsannigeria@yahoo.com or info@fepsannigeria.com,

Telephone: +234(0) 803 3174409 Website: www.fepsannigeria.com 2014

Fertilizer Type (50kg)

Kaduna Hqtrs Price N

Kano (NW) Price N

Zamfara (NW) Price N

Bauchi (NE) Price N

Taraba (NE) Price N

Benue (NC) Price N

Niger (NC) Price N

Edo (SS) Price N

Rivers (SS) Price N

Imo (SE) Price N

Ebonyi (SE) Price N

Oyo (SW) Price N

Ekiti (SW) Price N

Overall Average Price N

NPK 4,750 4,094 4,748 5,150 7,550 4,750 4,625 5,167 4,250 4,975 4,888 4,500 5,000 4,944

Urea 46-0-0 4,150 4,200 3,958 4,500 6,550 5,500 5,000 5,000 4,250 5,000 5,100 4,500 5,200 4,839

DAP 18-46-0 - - - - - - - - - - - - - -

MOP 0-0-60 - - - - - - - - - - - - - -

SSP 0-18-0 - - 3,700 3,800 5,000 4,500 3,500 - - - - - - 3,417

Crystallizer - - - 1,200 - - - - - - - - - 1,200 Agrol

yser 300g - 550 300 - 850 - - - 500 - - - - 550

1 kg - 1,750 - 1,500 - - - - 2,000 - - - - 1,750

Others-(specify)

- - - - - - - - - - - - - -

A Fertilizer Factory

One of FEPSAN’s meetings

Observations

The average fertilizer prices across the states decreased by 2.62% for NPK, 2.34% for Urea, 17.66% for SSP, 6.46% for 300g Agrolyser while

Crystallizer and 1kg Agrolyser remains the same compared to average fertilizer prices of June, 2014. Average fertilizer price of NPK is now

6.45% lower, Urea is 10.04% lower, SSP is 24.90% lower compared to July, 2013. The available fertilizer brands in the market were Golden,

Tak-Agro, Affcott, Solar, Springfield, Ebonyi fertilizer, Notore, superphosphate fertilizer, Wacot, Elephant, Bauchi Blend, Stallion, Kaffo

Mines, Olam, Diamond, MBS Merchant and Saro. In the open market NPK sold between N4, 100 – N7, 550, Urea N3, 950 – N6, 550, SSP

N3, 500 – N5,000 Agrolyser N550 – N2,000 while subsidized prices ranges between N1,000 – N3,300

GESS Update from our data collectors

Bauchi state generic GESS had started with two bags of fertilizers (N5, 500) with maize (N200/10kg) and rice seeds (310/12.5kg) in 78

redemption centers across the state engaging the services of 20 fertilizer and 19 seed companies. The sorghum value chain program was rolled

out on 15/07/14 with two bags of fertilizer at N6, 000 and 10kg seeds free which are to be redeemed through sorghum farmers’ association in

20 LGAs. Benue state GESS had started on 24/6/2014 with creation of more redemption centers across the state. Edo state GESS had ended.

Ekiti state cocoa and cassava GES are ongoing. Kaduna state GES had started with commencement of distribution at redemption centers.

Niger state GESS had also commenced. Oyo state generic GES had ended but cocoa GES is yet to start as agro dealers were not supplied with

the necessary products. Rivers state GESS redemption closed.

International Fertilizer Prices as at 15/07/2014

S/N Fertilizer Types Price (US$ /ton)

1 Urea Prilled 531

2 DAP 591

3 MAP 621

4 MOP 483

5 Ammonia 686

6 UAN 28 348

7 UAN 32 399

With commodity prices falling considerably in recent weeks, it stands to reason that at

some point retail fertilizer prices will also begin to retreat. While DTN retail fertilizer

prices have not reflected any substantial changes yet, retailers believe lower prices could

be coming soon. Royce Bialas, location manager for Central Farmers’ Cooperative in

Dimock, South Dakota, said his educated guess is that fertilizer prices will be about 20%

lower by the time the fall fertilizer season begins, as fertilizer prices will follow commodity

prices. Fertilizer now is in the $500 per ton range could be closer to $350 to $400 per ton

after the drop, he estimated. “The late-summer/fall fill will be weaker as far as price

goes,” Bialas said. “You can’t have corn prices fall this much and not have fertilizer prices

drop right along with it.” Bialas said the lower retail fertilizer prices could be natural gas

prices, which have been stronger earlier this year. Higher natural gas prices could work

against lower fertilizer prices, but ultimately, the fall of the commodity market will most

likely push retail fertilizer prices lower, he said.... DTN