The reason Nigeria has a small profit margin from the trade in onions

by

The Nigerian Export Promotion Council (NEPC) has voiced concern about the small profits that are derived from onion sales in Nigeria even though it’s one of the top producers in Africa. Nigeria produces over 2 million tonnes of onions every year. However, the majority of them are sold in uncooked form. This is the primary cause of the lower profits.

Participating in a participatory discussion held in Gombe which was geared towards the development of an export strategy for onions, the Executive Director of NEPC Mrs. Nonye Ayeni, represented by Mustapha Umar Faruk, addressed the issues that the value chain for onions faces. The topic of onion farming is widespread across regions like the North East, North West as well as the North Central regions, yet there are obstacles to making the most of its potential due to lack of processing capabilities and strategies for export.

The Ms. Ayeni pointed out that even though the value chain of onions encompasses a variety of actors, ranging from logistics firms to farmers the majority of Nigerian onions are sold in their natural condition. The lack of value added in the form of processing products like onion paste powder, dehydrated flakes as well as other products, greatly reduces the profit margins of the earnings from exports.

The NEPC is focused on engaging with stakeholders to create the Onion Export Strategy document to tackle these issues. The aim is to increase Nigeria’s competitive advantage on the international market since other countries are increasingly capitalizing from the trade in onions.

Madame. Ayeni reaffirmed NEPC’s commitment to its “Double Your Export” initiative, which is aimed to revamp the industry of onions to improve the quality of exports. The Commissioner of the Ministry of Commerce, Trade, and Industry, Nasiru Aliyu, was awestruck by the NEPC’s work and encouraged farmers to boost their cultivation. Sale Sadauki, President of the Chamber of Commerce, emphasized the importance of choosing high-end seeds to ensure better storage and exportability.

Alhaji Sani Pantami, the North East Chairman of Onion Producers applauded NEPC to increase the understanding of the farmers as well as other stakeholders about international standards of market regarding onion production as well as packaging. The goal of this initiative is to give producers the abilities to boost their manufacturing processes as well as manage the market for exports successfully.

When Nigeria strives to grow its non-oil exports onion industry is a viable way to grow. Through strategic planning partnership, investment, and partnerships, Nigeria can elevate its onion business from a low-profit business to one that contributes significantly to the economy of the country.

Source: Daily Trust

Related Agroforestry News Posts:

  1. Otzarot HaYa’ar’s mushroom farm located in Western Galilee ceases operations In the first time since it was established since its inception, the Otzarot HaYa’ar farm for mushrooms located in Betzet, Western Galilee, is shut down. Shaked Ben Shitrit Barnea, the caretaker of the farm, along with her daughter, were forced...
  2. “The Ecuadorian banana has an vital expansion opportunity, specifically in Asia as well as the East” “One can claim that the development of our national sector has shaped the direction that the world’s banana industry is following. We can therefore think of ourselves as pioneers in certain markets that were initially marginal, but are now important...
  3. Aigen’s Series A releases True-Solar Farming Robots Aigen is an AI-driven robotics business that has raised $12 million through Series A financing through the world’s largest investors ReGen Ventures along with NEA, Cleveland Avenue, Incite, and Susquehanna Private Equity Investments LLLP. This funding will allow Aigen to...
  4. “Markets pay up to 10 times more than they did last year for mangoes” The lack of mango supplies coming from Peru has led to the price of the fruit increase dramatically as compared to last year’s. “Prices as compared to 2022/2023 seasons have grown dramatically because of the shortage of mango. The markets...
  5. WEC Lines enters refrigerated container market and adds 45-foot reefer containers to its fleet Dutch shipping company WEC Lines is entering the refrigerated container market with its first 50 brand new high-cut 45ft Pallet-Wide refrigerated containers (reefer) equipment to its large container fleet. The carrier says the demand for reefer containers has been rising...

Source: The Plantations International Agroforestry Group of Companies