Rice is the second largest produced cereal in the world. At the beginning of the 1990s, annual production was around 350 million tons and by the end of the century, it had reached 410 million tons. Bilateral trade between Nigeria and Thailand has been described as robust and Nigeria imports one million tonnes of rice, valued at $700m or aboutN106 billion.World rice production in 2008-2009 rose 1.8% to 655 million metric tons. The world's largest rice producers China with 29% (of world production)India with 22%Indonesia 9%Bangladesh 7%Vietnam 5%Thailand 4% (#1 exporter)Reasons why you should invest in rice- Rice is The world's most important food commodity : An average Nigerian now consumes 24.8 kg of rice per year, representing 9% of total caloric intake (Rice Web, 2001).- Rice is one of the most heavily subsidised and protected commodities in the U.S.: Because rice is such an important commodity, it is one of the most heavily subsidised commodity in the US (and probably the world).National Cereal Research Institute (NCRI) the nation's premier rice and other cereal research institute has revealed tha there are factors that favour rice production and also has approximately 5million hectares of land suited for rice production.The climatic condition that cut across the mangrove, forest and savanna regions terminate at Sahel region. NCRI and WARDA (West African Rice Development Association), have reported that apart from the latest NERICA, over 50 varieties of rice have been developed suited for each of the six geo-ecological regions in Nigeria.The climatic condition is a natural facility for rice programme in Nigeria. Major rice producing zones in Nigeria include: Kano, Niger, Benue, Yobe, Kaduna, Anambra, Ebonyi, Kwara, Edo, Taraba and Kebbi states etc.In order of production level, Zamfara, Jigawa, Borno, Adamawa, Ondo, Ogun, Cross River states follow very closely, especially with specialisation on processing facilities. Private sector organisation like Veetee rice, Olam rice, Dangote group of Company etc are making impact in rice production, processing and marketing rice in Nigeria.Several opportunities which exist for investors in the three components of Rice industry are : Production, Processing and Marketing. :Facts on rice production and demand in Nigeria by Rice Farmers Association in Nigeria(RFAN)* As at 2003, demand for rice was put at 5million metric ton* Rice is now staple food to over 60% of Nigerian homes;*External demand for Nigerian Rice is estimated at 7 to 10 million metric* The price of a 100-kilogram paddy rice has improved appreciably between 2002 and 2005 from N2000 to N6, 500.00 ' N7000 in 2004 ' 2005; while 50 kilogram of milled Nigerian rice sells at N5, 000.- N7,000.* Nigeria has a population of over 128 million people: A viable market.* Nigeria has over 3 million out of about 60 million rural farmers who are rice farmers.* Nigeria has approximately 5million hectares of arable land suitable for rice production.* Nigeria is suited for both rain-fed upland and lowland rice production* Nigeria has sizable number of irrigation facilities* Nigerian Research Institutes have developed over 50 varieties of rice.Profitability On 1 hectare, all things being equal, a farmer can harvest close to 3-5tonnes of rice depending on the variety which is about 100bags(25kg). A 25kg of rice is about N3,500. So about N350,000 can be realised from 1hectare of land . An investment on 100hectares will yield N35,000,000 per harvest and rice can be grown twice a year if it is mechanised.To be continued next week. Happy farming !
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