Chapter 6. The role of the private sector and the engagement of smallholder farmers in food value chains 191
The few success cases of private-public partnerships, all start from actors who were able to self-
aggregate and meet demand in order to better access markets. Also processing could be a key
success factor when greater product value can be captured in meeting market demand, and if well
managed, allow great access to consumers. The significance of leaders at each phase of the value
chains, as well as programs and projects ownership cannot be overstressed.
There is more that can be done at the policy level to improve the business environment to foster a
more inclusive value chain development. First, investment promotion should take into consideration the
opportunity to support local medium and small enterprises and investments. Also critical are incentives
for agroprocessing companies that process locally add value and create jobs. This has strong implications
for appropriate trade policies that need to be fully harmonized with domestic policies aimed at promoting
the development of staple food value chains. There is a strong need to design and implement solutions
involving both government and the private sector with complementary roles for each.
The remainder of the chapter will present specific cases and initiatives from 3 West African countries:
Ghana, Nigeria and Senegal.
- Nigeria food processing and the trends towards smallholder
inclusive food supply chains*
Agriculture is the most important sector in the Nigerian economy. According to the Federal Ministry
of Agriculture and Water Resources, the country has a land area of 92.4 million hectares, with
approximately 79 million hectares suitable for agriculture; however, less than half of this available land
is being utilized. The sector engages approximately 60 percent of the Nigerian population, including
many rural women, and contributes 42 percent of the country’s national GDP.
As in many African countries, agriculture in Nigeria is dominated by smallholder farmers, who cultivate
an average of one hectare of land, with limited access to fertilizer, irrigation, improved seeds, storage
and processing capabilities and markets. They typically experience poor yields, and significant losses.
As a result, Nigeria remains a net importer of food, spending over USD 4.2 billion annually on food
imports. In addition, local food prices are prohibitively high for the average Nigerian family and the
country continues to experience alarming rates of malnutrition.
Given the context, this chapter will outline key success factors for agroprocessor engagement with
smallholder farmers and will use the case study of AACE Food Processing & Distribution, a start-up
agroprocessing company. It will also attempt to outline practical actions that can be taken to improve
the agriculture sector and enhance the lives of smallholder farmers.
- This section 2 was contributed by Ndidi Nuweli.