Harvest Feeds Agro Processing Company has said that that in the next few months, they Company would be injecting about N5 billion annually into the nation’s Gross Demostic Products.
The Chairman of the company Goke Adeyemi disclosed this while speaking with Nigerian Tribune at the company’s headquarters in Ajura Community, Ogere, Ogun State.
Adeyemi said the company which is undergoing expansion is currently contributing about N2 billion into the country’s GDP, and upon completion of the expansion, it would double its production.
Adeyemi who spoke after receiving the Mandatory Conformity Assessment Program (MANCAP) from the Standard Organization of Nigeria (SON), said the company which is currently utilizing about 150 tons of cassava tubers daily would double it when completes its extension.
“Right now, we are running on a 25 tons per day cassava starch production, which utilizes between 120 and 150 tons daily of cassava tubers in the production, that is our capacity and if you look at that in terms money on yearly basis, it will add about N2 billion to the Gross Domestic Product of the Country.
“In about 3 months ago, we started an expansion program which is just a mirror image of our current capacity, it is slightly bigger, (a 30 tons per day cassava starch factory) which is directly opposite the current one, and that will take our total capacity in the next 2 months to 50 tons per day, that will also add maybe about N3 billion to the GDP.
“In total, between October onward, this company will be adding close to N5 billion yearly to GDP of Nigeria. That is what we are aiming at, probably because cassava starch production is still at infancy in Nigeria, there is still much more bigger opportunities in years to come for further expansion to that business”, he said.
Furthermore, while lamenting the difficulties in accessing raw materials, Adeyemi urged the government to empower cassava farmers within the community where the company is located to provide raw materials for the factory, which he said is cost effective.
He also called on the federal government to increase import duty on imported starch, which he said would enable the locally processed starch to compete favorably in the market.
“We are in Ogun state right now, what I want Ogun state government to do cassava is grown in Ogun state, I want the Ogun state government to make cassava plantation around this factory such that we can have commercial cassava cultivation between the local governments that surround this factory because on daily basics, this factory would be consuming close to 250 tons of cassava tubers every day, and 250 tons is an equivalent of between 8 and 9 trailers of cassava tubers, that is massive, and even buying at N20,000 per ton at that price, that means this company will be paying N5 million daily into the hands of farmers, it is a lot of money, and if you do that for years, you will definitely see that there would be big transformation in the economy of farmers.
“Federal Government probably will still need to do something for us, we have been asking for import adjustment tax on imported starch that comes to Nigeria, what we are asking government to do is to slam import duty imported starch or cassava products imported into the country from 5-10 per cent to 6 per cent, that will make the landing cost of imported starch a little bit higher than what it is now.
The landing cost now is about N140,000 to N150,000 per ton, no local cassava starch producer can sell at that price, it is not possible. But if import duty is increased, they would be selling between N200,000 to N210,000 per ton, and that the price that we also sell our locally processed cassava starch, in terms of quality, we are even better than the imported starch but the only disadvantage is the cost of imported starch is lower than that of the locally produced, and it’s because ur orders are open, import duty is very low and people coke and dump a lot of starch and cassava products in Nigeria”, Adeyemi added.
Source: Nigerian Tribune