Femi Ibirogba examines the benefits of integrated agriculture, reverse integration and the concept of waste as a means of sustainability in agribusiness.
Integrated agriculture and reverse integration are interrelated agricultural and business strategies that most of the strong and prosperous agricultural enterprises have used for storms and remain afloat.
Integrated agriculture, also known as mixed farming, is a system of simultaneous agricultural work involving crops and animals.
The goal of integrated agriculture is to maximize the support of output components, reduce costs and ensure the stability of inputs and smooth operation.
Poultry can use manure generated on his farm to grow corn, an ingredient that consumes more than 50% of poultry feed.
Thus, a farmer turns his waste into a means of reducing costs by making cheap maize production for feed.
This significantly reduces the cost of production and increases the profitability and sustainability of the business.
The same farmer can start goats using a folder made from corn to supplement goat food, thus aggravating profits by adopting the principle of "no waste".
The farmer-lead can also combine fish farming and rice growing using clay ponds.
He uses pork extracts to breed the larvae to feed the fish, and uses the same water in the pond to produce low-lying rice, creating an elevated platform in the middle of the pond.
The same water, pond and energy are used for exporting fish and growing rice, which saves money on fish feed with larvae.
Professors Emmanuel Ajani and the Department of Fisheries and Aquaculture of the University of Ibadan at the University of Ibadan in their studies on the integration of poultry, fish farming and rice cultivation have found, for example, manure generated as waste from poultry, used to create larvae and larvae or fed directly on fish, or processed into a meal of salmon, which is used as part of the ingredients in a diet for fish.
Waste generated in the pond, they added, served as a source of nutrients for planted rice.
Visceral obtained from processed fish is further processed into fish dishes and oil, which form part of the ingredients for poultry and fish feed, which leads to a significant reduction in the cost of fish and poultry feed, which account for more than 70% of operating costs.
Ajani and Owimiyin stated that the integration of fish and rice allows to harvest three rice crops a year.
Likewise, reverse integration is the process by which the raw material consumer acquires its suppliers or creates its own opportunities to provide a more reliable or cost-effective supply of resources for its production.
Benefits include monitoring the value chain in a more efficient manner, and costs can be significantly controlled throughout the entire distribution process.
Nigerian flour for flour and Premier League
EAGLES Flour Mills Plc, Ibadan, uses wheat bran, a by-product of processing wheat flour, as its main ingredient in the production of animal feed by its subsidiary, Premier Feeds Mill, a manufacturer of Topfeed brands.
Wheat bran is 20 percent of the poultry.
The group adopts an integrated model and combines its profits by adding value to the wheat bran, and not selling it.
This leads to production efficiency, which makes the brand of feeds one of the most acceptable in the industry.
Olam Rice Processing Mills and rice farm
OLAM Rice Mill is located in Rukubbi, Nasarawa.
To provide an adequate and quality platform for its modern mill, it moves to rice cultivation for 10,000 hectares of rice fields with an irrigation system from the Benue River water intake.
Olam uses helicopters to apply fertilizers, herbicides and insecticides to massive rice fields, with the exception of thousands of farmers who are food suppliers for the company.
Olam Group operates feed mills in Ilorin, Kvara state and in the village of Chikum, Kaduna.
Rice bran is used as a substitute for wheat bran in the production of animal feed, and the group easily provides some of its own raw material from rice mills, reducing costs and increasing production efficiency through reverse integration and integrated farming models.
Chi Limited and Ajanla Farms
CHI Ltd is the home of the agro-industrial sector in the country.
From poultry to beverages, milk and confectionery, the group has diversified its product based on economic opportunities for reverse integration and integrated farming models.
Chi Ltd produces chicken, uses the gut as part of the requirements for proteins for aquaculture, produces animal feed for its use and uses its fish in the composition of fishmeal necessary for the production of animal feed, just to mention a few, maintaining the system automatically.
From end to end, the company has zero tolerance for waste and realizes economies of scale generated by such a system.
Ajanla Farms, a subsidiary of Chi Limited, participates in several agro-industrial enterprises, such as the production of several types of fruit crops used as raw materials for the processing of fruit juices, the distribution of equipment, medicines, vaccines and disinfectants, and the provision of training and technical support services in Nigeria
Ajanla Farms Limited has been operating in business for about three decades and is steadily growing and dramatically strengthening and diversifying its product range and services in poultry, aquaculture, fish feed, livestock and fattening, meat and meat processing, using economic energy from a truly integrated agriculture and reverse integration.
Undoubtedly, the group is one of the quiet, but well-proven business conglomerates in the country.
Oil and palm plantation Slabmark
The SLABMARK group was founded in 1997 and began operations in 2000 with the commissioning of a 100 tonne solvents production plant in the state of Oyo.
The main activity of the company is the processing of oil into edible oils and fats.
The company grew up in an agrarian union with backward integration, investing in oil palm plantations to reduce its cost and ensure the reliability of raw materials for the edible oil refinery that it operates.
Red oil and seed oil from the palm kernel emanating from its plantations are much cheaper raw materials, which helps the company survive even during periods of economic crises.
The Managing Director, Mr. Tunde Cucu, showed that in order to survive the tough economic situation in the country, integration was expedient and rational.
Okumskaya oilseed and palm plantation
OKOMU Oil Palm Company Plc is a Nigerian company engaged in the cultivation of an oil palm, processing fresh fruit bunches in raw palm oil for resale, rubber plantation and processing rubber pieces for a rubber cake for export.
The company operates through two segments: brass products and rubber products.
The company produces products for cooking and natural rubber.
The plantation is working on the cultivation of oil palms and rubber, while it also improves edible oil, processes the core and participates in the reproduction and sale of seeds.
It makes full use of integrated agriculture and reverse integration.
Flour Mills Nigeria
FLOUR Mills Nigeria Plc, founded in September 1960 in Nigeria by George Stravos Kumantaros, is engaged in agriculture, livestock feed, food processing of oil, flour and macaroni products, noodles and refined sugar.
It works through the following food, agricultural and packaging segments.
The food segment produces and sells rice, flour, pasta, snacks, sugar and noodles.
The agroecological segment cultivates corn, cassava, soy, sugar cane and oil palm for feeding processing enterprises, while the packaging segment produces and sells laminated woven polypropylene bags.
The company also operates a network of producers that combines products from numerous farmers to ensure stable supplies of raw materials to processing sites.
He experienced obstacles with integrated agriculture and overcame storms with reverse integration, with thousands of hectares as crops in Niger and the states.
Professor Ajani said that if integrated agriculture works for large players, the more small and medium-sized farmers, as studies have shown, encouraging farmers in Nigeria and Africa with limited resources to make full use of various combinations of agricultural enterprises to reduce costs, produce more and get more income with the same resources.
Statistics show that about 80 percent of small and medium-sized enterprises in Nigeria fail in the first three to five years of their existence because of the complex business environment of the country and other factors such as lack of experience and poor financial base, reducing competition and wrong business practices.
Given the foregoing, integrated agriculture and reverse integration can also help new start-ups in agriculture cut costs, diversify the product base, maximize the use of limited resources and survive the turbulent years of start-ups.
Professor Owimiyin said that the education of farmers should be a priority, by raising awareness among various associations of farmers and cooperatives in order to take advantage of integrated agriculture, as studies have convincingly proved that it is a sustainable way to increase productivity, improve household incomes and eradicate hunger.