By Ijoho Msonter Samuel
Agriculture remains a cornerstone of economic development, particularly for Benue State, where its rich agricultural landscape offers immense potential. Globally, the demand for high-quality agricultural products continues to surge, driven by rising populations, increasing health consciousness, and a growing preference for healthy hygienically processed and value-added food products. This presents a unique opportunity for Benue State to position itself as a significant player in the global agribusiness market.
The global agricultural sector is increasingly shifting towards value addition, with consumers seeking nutritious and convenient food options. This trend opens avenues for Benue farmers to explore new markets for processed goods such as pharmaceutical-grade yam flour, fruit concentrates, and other agro-based products and byproducts. By tapping into these global opportunities, the state can enhance its agricultural output and boost revenue streams significantly.
However, to capitalize on these opportunities, proactive government involvement is essential. The government must not only invest in infrastructure but also create policies that support innovation, sustainable practices, and organized agribusiness structures. Currently, Benue State faces several challenges, including poor product qualities, inadequate infrastructure, poor market access, high post-harvest losses, and a lack of value addition in agricultural products. These issues hinder the state’s agribusiness potential and limit economic growth. Furthermore, establishing strong monitoring and evaluation (M&E) systems in collaboration with agricultural and business development experts will ensure that the strategic goals of the agribusiness sector are met effectively and efficiently. The time has come for Benue State to embrace its agricultural potential and leverage global market dynamics for the benefit of its citizens.
Recognized as Nigeria’s food basket, Benue State possesses immense agricultural potential. Yet, the full scope of its capabilities remains largely untapped. While the state boasts vast arable land and a significant portion of its population engaged in agriculture, current practices often lean towards subsistence farming, with minimal focus on value addition, infrastructure, and strategic market linkages. This significantly limits the value derived from agricultural activities.
The role of government in advancing agriculture cannot be overstated. Benue State has the opportunity to convert its agricultural riches into sustainable revenue streams and significant job creation avenues through well-coordinated government interventions. Proactive government involvement is critical in establishing a long-term, sustainable agribusiness framework, especially by providing the necessary infrastructure, engaging the private sector, and ensuring that farmers and agripreneurs can fully participate in global agricultural value chains – robust M&E system is essential to ensure these opportunities are realized. The Benue State government must partner with business development experts and consultants who can work closely with government agencies to unlock the commercial potential of agriculture. With the right oversight and strategic planning, Benue State can transform into an agribusiness powerhouse, creating jobs, generating revenue, and fostering long-term economic sustainability.
1. THE NEED FOR GOVERNMENT-LED INFRASTRUCTURE DEVELOPMENT IN AGRIBUSINESS
For Benue State to achieve its agribusiness potential, infrastructure development must be prioritized. The government has the responsibility of creating the necessary environment for agribusiness to thrive, starting with key infrastructure investments. This involves establishing agro-industrial parks, processing plants, and other critical infrastructure that will enable farmers and agripreneurs to scale their operations and add value to their produce.
Key infrastructural needs include cold storage facilities to reduce post-harvest losses, improved transportation systems to link rural farming communities to urban markets, and reliable energy sources to power processing plants and storage centers. Without these foundational elements, the state’s agricultural output will remain trapped in low-value, raw commodity exports, which diminishes profitability and limits long-term economic growth.
By investing in these infrastructures, the government can unlock new revenue streams for farmers and agripreneurs, while also attracting private sector participation. Moreover, the creation of agro-industrial hubs will enable the clustering of related businesses, making it easier to achieve economies of scale and support innovation in food processing, packaging, and other agribusiness ventures.
2. DIRECT GOVERNMENT PARTICIPATION IN AGRIBUSINESS
It is a common misconception that the government should not be involved in direct business activities. However, in a developing economy like Benue State’s, the government must play a catalytic role in agribusiness development by actively investing in critical areas where private sector participation may be lacking.
For example, the establishment of agro-processing industries is crucial for value addition. The government must lead the way by investing in processing plants that can convert raw agricultural products such as yams, cassava, oranges, and mangoes into high-value products like pharmaceutical flour, fruit concentrates, and other agro-based industrial inputs. This approach can substantially increase the income earned from these commodities, creating wealth across the value chain.
Additionally, Public-Private Partnerships (PPP) offer a viable route for scaling agribusiness ventures. By taking on an active role as a stakeholder, the government can drive investment, reduce risks for private sector players, and create a business-friendly environment that encourages innovation and job creation. Direct involvement and partnership models will enable the government to maximize the state’s agricultural potential and ensure that farmers benefit from value-added agribusiness processes.
3. SEIZING OPPORTUNITIES WITHIN THE AGRIBUSINESS VALUE CHAIN
The agribusiness value chain presents immense opportunities for Benue State, but many of these remain untapped due to inefficient value chain management and a lack of emphasis on value addition. At present, the state is heavily reliant on the sale of raw agricultural produce, which significantly reduces the potential income for farmers and agripreneurs.
Government intervention is critical to restructure and organize these value chains. One effective approach is the development of offtaker programs. These programs ensure that there are ready buyers for agricultural produce, minimizing the risk of post-harvest losses and stabilizing income for farmers. Furthermore, by introducing value addition processes – such as converting yams to flour for pharmaceutical use or turning fruits like oranges and mangoes into concentrates – farmers and the state can earn significantly higher revenue compared to selling raw produce.
Efficient management of the value chain would also include better harvest, transportation, and storage methods. Investing in modern farming techniques, efficient supply chains, and robust processing infrastructure will lead to reduced post-harvest losses and improved profitability across the agricultural sector.
4. LEVERAGING AGRIBUSINESS FOR JOB CREATION AND REVENUE GENERATION
One of the greatest benefits of agribusiness is its potential to create jobs and generate revenue. By adding value to farm produce and organizing agribusiness structures, Benue State can create thousands of jobs across various segments of the agricultural value chain. From farming and harvesting to processing and packaging, there are numerous touchpoints where employment can be generated.
In addition to job creation, value addition can dramatically increase revenue for the state. Instead of exporting raw produce, which typically has lower margins, processed goods can command higher prices in both local and international markets. For instance, pharmaceutical-grade yam flour or fruit concentrates can fetch multiple times the value of raw yams or fresh fruits, which opens up more lucrative revenue streams for the state and its citizens.
Moreover, the agribusiness sector’s growth has a multiplier effect on local economies. The expansion of agro-processing industries will spur the development of ancillary businesses, such as logistics, packaging, marketing, and retail. This creates a broad economic impact, leading to sustainable revenue generation and wealth creation.
5. SUSTAINABLE AGRICULTURAL PRACTICES AND INFRASTRUCTURE FOR LONG-TERM GAINS
Sustainability is key to the long-term growth of Benue State’s agribusiness sector. Investments in zero-waste agro-processing factories, which extract every possible value from agricultural produce, will not only reduce environmental impact but also increase profitability. Factories such as those processing soybeans, groundnuts, and yams can produce a range of by-products that can be repurposed into animal feed, biofuels, and industrial inputs, minimizing waste and maximizing output.
Implementing sustainable agricultural processes – such as crop rotation, organic farming, and water conservation techniques – will also help ensure that agriculture remains viable for future generations. The government’s role in this is to promote these practices through policy incentives, subsidies, and education for farmers.
Additionally, infrastructure such as irrigation systems, renewable energy solutions, and climate-smart technologies will enable farmers to overcome challenges such as droughts and fluctuating weather patterns, ensuring consistent and reliable agricultural outputs.
6. STRATEGIC GOVERNMENT INTERVENTIONS TO DRIVE AGRIBUSINESS GROWTH
The government of Benue State must adopt a strategic approach to ensure the full potential of agribusiness is realized. Reviving dormant agro-industrial facilities like Taraku Mills is a critical first step. These facilities, when operational, can serve as hubs for processing oil seeds (soybeans, groundnuts, etc.), thereby reducing the need to sell raw produce outside the state. Such initiatives keep more wealth within the state and reduce dependency on external markets.
Another essential intervention is the revitalization of agro-milling infrastructure to support rice farmers. Currently, the practice of selling raw paddy rice to external buyers who mill and resell at exorbitant prices is not economically viable. By ensuring that Benue farmers have access to functional milling facilities within the state, the government can help farmers capture more value from their produce.
The government should also invest in research and development to foster innovation in agribusiness. This includes the development of new crop varieties, processing techniques, and packaging methods that can improve productivity and marketability. These strategic interventions will not only boost agribusiness but also position Benue State as a competitive player in both local and global agricultural markets.
CONCLUSION
In conclusion, Benue State is poised to capitalize on its agribusiness potential, yet significant challenges remain. Inadequate infrastructure, high post-harvest losses, and a lack of value addition hinder progress and limit profitability for farmers. To transform these challenges into opportunities, the government must take a proactive role in driving agribusiness development.
Investing in key infrastructure, such as agro-industrial parks and cold storage facilities, is essential for creating a supportive environment for agribusiness. The establishment of organized value chains and offtaker programs will enable farmers to connect with markets more effectively, reducing losses and maximizing profit margins. Furthermore, direct government participation through Public-Private Partnerships (PPP) will facilitate innovation and ensure that the state remains competitive in global markets.
By addressing these areas – job creation, revenue generation, sustainable agricultural practices, and organized agribusiness structures – the government can foster a resilient agribusiness ecosystem. Additionally, strong monitoring and evaluation systems, developed in collaboration with agricultural business consultants, will ensure that strategies are implemented effectively and align with the state’s broader economic goals.
Ultimately, the success of Benue State’s agribusiness sector hinges on the government’s willingness to invest deeply in this vital area. With the right resources and strategic initiatives, Benue State can transform its agricultural landscape, creating lasting economic benefits for its citizens and establishing itself as a leader in the global agribusiness market. The time for decisive action is now; the future of Benue’s economy depends on it.
Ijoho Msonter Samuel is an entrepreneurship and agricBusiness specialist, and executive director, Levelrage Agrobiz Consults, July 2024.
