Farmers producing at loss– Onion association

Onion farmers across Nigeria are producing at a loss despite abundant food supply and relatively stable market prices, the National President of the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN), Aliyu Maitasamu Isa, has said. Isa spoke on Trust TV’s Business Daily programme on Wednesday while reacting to the latest National Bureau […]

Onion farmers across Nigeria are producing at a loss despite abundant food supply and relatively stable market prices, the National President of the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN), Aliyu Maitasamu Isa, has said.

Isa spoke on Trust TV’s Business Daily programme on Wednesday while reacting to the latest National Bureau of Statistics (NBS) food price report, which showed a 0.98 per cent increase in onion prices despite a glut in the market.

He said rising production costs had made it difficult for farmers to recover their investments, noting that many were continuing farming more as a tradition than a profitable business.

“The economic cost of production of onion per hectare is almost N2.5 million to N3 million. But at the end of the day, if we harvest this produce, the value of the produce cannot even pay for the cost of production,” he said.

Isa explained that the rising cost of fertiliser, improved seeds, agrochemicals, petrol and irrigation was putting pressure on farmers’ earnings.

“For Nigerian farmers, I think they are just doing it as a culture, not because they want to treat farming as a business. If they do so, I tell you nobody is making profits as it is now,” he added.

He noted that while consumers were celebrating lower food prices, farmers were bearing the burden of the market downturn.

“Everybody will be celebrating that food has crashed, but at the expense of the farmer. It can’t continue to work like this,” he said.

The NOPPMAN president also blamed inadequate storage infrastructure for worsening farmers’ losses, saying a significant portion of harvested onions goes to waste.

He explained that Nigeria produces about 2.1 million metric tonnes of onions annually but lacks modern storage facilities capable of preserving large quantities of the crop.

“We don’t have any sophisticated storage facility that can take 20,000 metric tonnes. We only use the traditional system of storage and after some months, 50 per cent of what we store goes to waste,” he said.

Isa called for the establishment of strategic food reserves and government backed storage facilities to absorb excess produce during peak harvest periods.

“If the country can have a strategic reserve, when farmers produce in excess, the government or a private arrangement can take the excess produce and store it. At the end of the day, farmers will have value for their output and be able to meet the cost of production,” he explained.

On the recent disruption of onion exports to Ghana, Isa said informal trade arrangements and actions by some groups in the importing country contributed to the problem.

He noted that the matter was resolved after intervention by Ghanaian authorities and discussions between stakeholders.

Isa defended agricultural exports, arguing that they provide markets for surplus produce that would otherwise spoil due to limited storage capacity.

“We are business people, we are not doing charity. The essence of business is to make profit,” he said.

“If you don’t quickly dispose of the excess produce, it will go to waste. We need alternative markets for these products,” he added.

He further noted that Nigeria’s domestic onion demand stands at about 2.5 million metric tonnes annually, exceeding the country’s reported production of about 2.1 million metric tonnes.

Isa also called for improved agricultural data collection to support planning and investment decisions in the sector.

“Without data and statistics, people cannot plan. And when people are not planning, they are planning to fail,” he said.