Ogun State - Engage in backward integration, Sokefun urges Agricultural Investors

[OgunState]

 Investors in the agricultural sector interested in the exploitation of raw materials have been asked to look inward for the provision of such materials through the backward integration process. Backward integration, the practice of companies establishing private farms where crops to be used as main raw materials are grown to augment the quantities they are able to source from other channels.

Ogun State Commissioner for Agriculture, Mrs. Ronke Sokefun who gave this advice during her visit to Green Tech Industries Limited, a starch processing factory at Agbara, explained that apart from enabling such companies to meet up with their installed capacity of production, it would also create employment opportunities for those engaged to work on such farms.

The Commissioner reiterated government’s commitment to land clearing and preparation for commercial agricultural purposes at a minimal cost, saying this was part of efforts towards ensuring industrialisation through agriculture. “It is the vision of this administration that Ogun State be seen as an industrial base of the nation. With our comparative advantage in agriculture, government has shown readiness to open up land at minimal cost and encourage commercial agriculture through the purchase of land clearing and preparation equipment.”

Mrs. Sokefun further called on investors to take advantage of the availability of agricultural land for backward integration, assuring them of government’s continued support for farmers towards producing adequate crops to be used as raw materials.

Earlier in his remarks, the General Manager of the starch processing factory, Engr. Demola Akinode disclosed that the factory was working at 10% production capacity due to shortage of raw materials. He added that he was presently working with farmers within the locality with a view to making them increase their supply of cassava which the factory needed as its raw materials, pointing out that he was already thinking of setting up farm where cassava could be planted abundantly and solicited the assistance of government in the clearing of land for easy access.

Via: Ogun State Government - Official Press Release

[Folami David]

Agriculture needs to be more appreciated in this part of the world. Things really have to change for that aspect to be better.