Niger Agriculture – a glance
Niger’s annual population growth rate of 3.9 percent is the sixth highest in the world. The current population of about 17 million is projected to exceed 66 million by 2050. Nearly 40 percent of Niger’s GDP is derived from the formal agriculture sector, while only 15 percent of land is arable and suitable for rainfed agriculture.
Revenue from the extractive industries sector is projected to increase to about five percent of GDP by 2015. Niger is the fifth largest producer of uranium in the world, and production is likely to triple by 2018.10 Uranium remains an important determinant of the national economic outlook, accounting for about 50 percent of total exports.
Agricultural production is characterized by two seasons: a rainfed season, which is determined by annual rainfall, and an irrigation season (also known as the off-season). Rainfed agricultural production is primarily for staple cereal crops, including millet, sorghum, rice, fonio, wheat, and commercial cash crops such as cowpea, peanuts, sesame, souchet, and onions. Off-season production includes rice, vegetables, and staple cereal crops. Millet is the strongly preferred staple food and domestic millet production accounts for about 76 percent of cereal production in the country. An estimated 90 percent of all cultivated land is allocated to millet.
Demand for rice is increasing as consumption patterns evolve, particularly in urban areas. Domestic rice production accounts for just over 30 percent of supply, and is produced primarily in the Kirtachi, Gotheye, Tillaberi, Gaya, and Sabon Machii (Maradi regions using rainfed, flood recession, and irrigation production systems.
Niger is a leading producer and exporter of onions in the region, with onion crops in the Tahoua region accounting for over 75 percent of national production. The onion industry is a key livelihoods source for farmers across the country, and domestic production averages 500,000 tons per year, much of which is marketed in West Africa through a commercial network that supplies coastal countries in the sub region. Nigerien households consume about five percent of national production (21,000 tons, or 4.4 kilograms per person per year).
Niger is the second largest producer of cowpeas in the West Africa, after Nigeria. Cowpeas are used as both an export crop and as a source of animal feed. Nigeria is a primary consumer of Nigerien cash crops, namely cowpea, groundnut, and souchet. Market gardening vegetable production, particularly for onions, peppers, and chilis, is intensively practiced in all of the southern regions. Onions are produced as the primary dry season crop (> 30,200 hectares cultivated), followed by gombo, eggplant, and cabbage.
I. Fertilizer sector status in Niger
Since 2010-11, Centrale d’Approvisionnement en Intrants et Matériels Agricoles
(CAIMA) – a para-statal agency under the ministry of Agriculture is involved in distributing subsidized fertilizers and agri equipment (negligible quantities of seeds occasionally supplied through CAIMA but not included in the regular operations of input procurement or distribution) to farmers - set up under MinAgri – since 2010-11.
Primary objective of CAIMA is to reach the food self-sufficiency, make good quality fertilizers available to farmers at affordable prices. Prior to 2011, this agency was called Centrale d’Aprrovisionnement (CA), which was in operation from 1978. CA managed the fertilizer given by donors (KRII, South Africa, Nigeria, Japan etc.,). Currently CAIMA in addition of the free fertilizers received by the donors, has an exclusive budget allocated by GoN budget dedicated for fertilizer and farm implements program of MINAGRI.
Fertilizer imports through CAIMA
· CAIMA purchase fertilizer through a national tender (which allow only to the firms registered and tax payer in Niger to participate).
· The process of fertilizer procurement through CAIMA involves mainly importers (4 to 6) such as AOM, Sahara, AFCOM, Soumaile Ets, Rimbo SARL. None of those firms are professional of fertilizer, (but import rice, iron, or vehicles etc) and often lead their own truck fleet
· CAIMA imports a first lot with the budget allocated by the Ministry of Finance and then with the money of sale collected re launch a new tender until the money end.
· 2 seasons of procurement corresponding to dry and rainy season
· This is CAIMA who take care of the distribution of the fertilizer in all the country and stock the fertilizer are sent from Niamey central warehouse to the one warehouse in each region of the 8 regions. And then based of need expressed are distributed at village or Association, project (see scheme). Actually 288 warehouse are identify.
· MINAGRI estimates the demand for fertilizers prior to the cropping season through their extension agencies network by collecting information to farmers’ organizations and farmers (agro dealers or input networks of the seed firms; seed producers organization, individual commercial growers, farmers) - and supply them the required fertilizers.
Fertilizer prices
· It seems that all fertilizer (urea, DAP, T.15) are supplied to CAIMA at the same price, currently FCFA/MT 500,000 CIF CAIMA Niamey warehouse (FCFA 27,000 per bag.
· Then CAIMA fix a subsidized price, which is the same in all the country and for all kind of fertilizer. The farmers’ price for the last season was FCFA/MT 270,000 means FCFA 13,500 per bag. Since 2010 up to now the farmer price is remained the same
· CAIMA pay the supplier between 1 to 4 months after delivery
· CAIMA sell to the farmers’ asso, NGOs at 50% credit (50% at delivery and 50% at the harvest) or 100% credit regarding the trust with them. The smaller “client ‘ pay cash
Fertilizers imported and distributed & market
· Fertilizers supplied by CAIMA include NPK (15:15:15), DAP (18:46:0) and Urea (46:0:0). CAIMA imports the fertilizers through national private importers (4 or 6 of them); the distribution is done through extension agencies through regional offices that in turn supply to existing agri-input supplier networks – boutique entrants.
· CAIMA guarantee the quality of the fertilizer by analyzes done in Lab Sol (National lab).
Fertilizer supply/ prices /demand
Fertilizer supplied by CAIMA (Metric Tons)
Years / FertilizerFAO STAT / Fertilizer
MINAG estimates
2011/12 / 16,000 / 21,000
2012/13 / 41,000 / 45,000
2013/14 / 17,000 / 30,000
2014/15 / NA / 30,000
· The fertilizers supplied through CAIMA as estimated by MINAG is around 30,000 MT for the year 2014/15 seasons. Note: However the FAOSTAT shows the consumption of fertilizers at a lower level for 2 of 3 years since CAIMA in operation.
· The price(s) of the fertilizer sold to farmers still remains the same since 2011 – the fertilizer prices are uniform across all the 8 regions of Niger and across all fertilizer types – at 13,500 FCFA/50 kg bag.
· CAIMA supply fertilizers to farmers associations or dealers on receiving 50 % cash payment during the placement of demand and the remaining 50 % to be paid by the associations on receiving the fertilizer from CAIMA.
· The demand estimated by MINAGRI for the year 2015/16 is at 60,000 MT.
· Currently the crops which use fertilizer are in the irrigated regions of Maradi, Tillaberi regions for crops such as souchet (sweet pea), irrigated rice & vegetables, and onion.
· From our discussions, it was evident that though CAIMA imports based on the demand given by the farmers – often the final quantity is decided by the availability of funds from the government, which seems to be around 30,000 MT/year.
Private sector business opportunity
· There exists opportunity in the existing CAIMA distribution system for the private sector – especially the fertilizers sold through agro dealers – who re-pack the CAIMA fertilizers in to small bags for sale to small farmers – which often is sold at higher prices than CAIMA prices.
· CAIMA mostly caters to the organized farmers; medium-large farm size holdings of cash crops (Onion, vegetables, rice,) - so the small, unorganized and farmers with low purchasing capacity who cannot estimate the demand prior still depend on local markets, could say. This segment of farmers may provide additional market for CAIMA if found ways to include them.
· In addition due to the shortage of fertilizer in the market created by a wrong timing in the tender and purchase, some private sector firms (still no fertilizer professional) see fertilizer business opportunity and import fertilizer from Nigeria or Benin at competitive price vs subsidized fertilizer of CAIMA
· The private fertilizer sector is quasi non existing and is make of small opportunities
There are few issues with existing CAIMA fertilizer importation and distribution system; our interviews with 8 importers (some of them got CAIMA contracts and some of them could not win the contract) revealed that all importers find CAIMA contracts very lucrative – as there is no risk involved – payment is made within 3- 4 months and none of these importers do not want to take the risk of setting up a distribution network to take the fertilizers to the farm level. The importers who could not win the contract from CAIMA were very critical about the non-transparency in the system – nepotism in selection of importers – too political etc.
Non – CAIMA fertilizer sources (cross-border trade)
Other sources of fertilizers include imports by traders in local markets of Niger – especially in the border markets and regions. It is estimated that nearly 2500-3000T of fertilizers are exchanged through non-CAIMA sources per season.
Fertilizers are imported from other neighboring countries by the local traders – from Benin, Burkina & Nigeria who have some input subsidy programs in place and more competitive than Niger – for e.g. the fertilizers from Benin are sold in Niger markets for as low as 11,000 FCFA/bag (less than CAIMA prices). Sometimes, during the planting season, the local traders sell fertilizers in small quantities or in bags to small farmers– come across the border from Nigeria mostly. Prices on such cases are as high as 26,000 FCFA/bag.
Constraints to develop a professional fertilizer private sector
· Only cash crop consume fertilizer /small market, rice, onion, sweet pea
· No control of the fertilizer entering via the private sector
· Access to credit difficult due to lack of collateral
· Very seasonal business and huge distance to cover with small volume
· Unfair price competition with subsidized in Niger and sometime in the neighboring countries
II. Seed sector status in Niger
Components of the seed sector: The current institutional structure includes two components.
· The public sector (service component) handles the following components: research, production of breeder and foundation seeds, legislation, and extension.
· The private sector (operational component) takes care of seed multiplication and marketing.
Certified seed production (R1&R2) and use by different sources which include private firms, seed-producers and associations from 2011 – 2015
Year / Quantity of certified seeds (Tons)2011/12 / 5,500
2012/13 / 10,199
2013/14 / 12,052
2014/15 / 12,719
· Pre-basic (G3/G4 types) and basic seeds are provided by INRAN seed unit (national agricultural system) and ICRISAT to seed firms, seed producers/ or farmers’ associations and private producers (R1 & R2 types).
· Currently 8 private firms are involved in certified seed multiplication in Niger
· The official number of seed multipliers registered with MINAGRI are 14, which include farmers associations, private producers/farmers.
Quantity of certified seeds (R1&R2) produced (kg) and distributed for major crops in 2014/15
Crop seeds / 2014/15 / Firms/Organizations involved in multiplication (#) / Actors involved in distribution *Mil / 8,302,592 / 21 / 24
Sorghum / 1,090,295 / 13 / 24
Rice / 329,000 / 4 / 4
Maize / 8,049 / 6 / 8
Cowpea / 2,717,662 / 14 / 22
Groundnut / 243,302 / 8 / 12
Source: MINAGRI, GoN (2015)
Note: * includes development organizations – NGOs, Projects, Government programs
Major market for seed firms currently
· Government: 50-55%
· Projects of NGOs (Donor related projects): 30 - 35%
· Direct purchases by farmers from seed outlets of seed firms: 15 – 20%
Seed market – demand estimates
· The official statistics of the government estimates the market for certified seeds are as high as 30,000 T of improved seeds per year.
· Total seed demand as estimated by the private firms and APPSN (association of seed producers of Niger) – 20-25,000 tons per year.
· Still there is gap in supply and demand as high as 10- 12,000 MT exists for high yielding and quality seeds.
Crop- seeds of demand (in the order of purchases and seed replacement)
Note: All seeds are OPVs (open pollinated varieties) – millet, sorghum, rice, vegetables (hybrids – farmers do purchase every year); sesame, cowpea, and groundnut.
· Cowpea (once in 2 seasons)
· Millet (3-4 seasons)
· Rice (3 seasons- depending on the association requirement, only 3 varieties dominate + few local cultivars)
· Vegetables (farmers purchase every year – seed saving is observed only in bulb crops like Onion – due to varietal preferences, Souchet (sweet pea)
· Groundnut (every 2 to 3 years)
· Sorghum (3 to 4 years)
Potential markets for Hybrid seeds
Introduction of hybrid millet, sorghum and maize and HY cultivars for rice would generate additional demand for seeds especially for irrigated and upland irrigated regions.
Millet Hybrids: ICRISAT/INRAN has been testing 2 millet hybrids and are in the final trial stages – at farmers’ fields; potential exists for growing hybrids in the ‘uplands’ of irrigated areas of Niger basin; the yields are doubled (950-1200kg/ha) compared to the existing mean yields of 300-400 kg/ha for millets.
Maize Hybrids: AGRIMEX has been supplying hybrid maize seeds (from Burkina Faso) in the last 2 seasons – Komasaya Maize Hybrid – sold 10 MT of hybrid maize seeds to farmers in Dosso region (for irrigated tracts);
Potential also exists for introducing Hybrid Maize cultivars through DTMA (Drought Tolerant Maize for Africa)
Rice seeds: Potential to extend irrigated areas and thus demand for good quality seeds for rice and also new high yielding cultivars of rice exists in the irrigated regions of Dosso, Niamey and Tillabery.
In Tillabery rice growing region, the seed farm of Saguia, under the responsibility of the ONAHA, is the main and only source of certified rice seed for local farmers’ unions, who united into a federation of rice farmers’ unions of Niger (FUCOPRI). It is clear that the lack of other seed companies competing with the Saguia Farm has had a negative impact on the rice seed sub-sector of Niger. This monopoly cannot be however the sole explanation for the shortage of certified seeds to reach small-scale farmers in the country. The official rice seed supply in Niger has undergone changes during the last 20years (from state-led intervention to farmers’ association-led intervention) but with less impact than expected. In addition to the lack of competition, this situation is affected by the shortage of qualified seed inspectors and a clear and strict national seed policy to ensure access to quality seed by smallholders. The promotion and creation of small private seed enterprises could gradually enhance farmers’ access to seed and may revitalize the rice seed system and complement the local informal seed supply. In summary, Niger must implement a national seed policy that restructures the formal seed sector and opens it to non-government organizations and small private enterprises. Additionally, staff of Saguia seed farm, seed producers of local farmers’ association, as well as seed inspectors should be trained in appropriate seed production and policies. (Sow et al, 2015)