Samuel Aruwan, Kaduna: To sustain Kaduna State’s leadership position as a major grower of farm produce such as maize, ginger, soyabeans, sorghum and tomatoes, the Kaduna State Government and its private sector partners have announced the take-off of the Kaduna Produce Management Company (KADPMC). The company is expected to announce the minimum guaranteed price it would offer farmers in Kaduna State for selected crops in the 2018 cropping season.
KADPMC’s mandate is to provide support for famers in a way that rewards output and encourages farmers to produce more. The company is expected to channel thisoutput support by guaranteeing minimum prices for selected crops and acting as a buyer of last resort when necessary. The company will also be responsible for the produce aggregation, storage and quality control services that the old commodity and marketing boards used to provide for farmers and buyers.
The boost to farm output from KADPMC activities is expected to energise value chain promotion by making raw materials readily available to serve the agro-cluster in the Green Agro-Allied Industrial Zone (GAAIZ) that has Olam’s poultry project and OCP Africa’s fertilizer operations as anchor tenants.
Malam Nasir El-Rufai sought and obtained the approval of the Kaduna State Executive Council for the establishment of KADPMC on 28th November 2016. KADPMC is conceived as a private-sector led and managed entity, initiated by the Kaduna State Government, to support farmers in the state in a sustainable manner.
Therefore, the government and its private sector partners spent most of 2017 agreeing the Public Private Partnership (PPP) structure for KADPMC. Major players like Flour Mills of Nigeria, the Olam Group, Falke, Stallion Group and Springfield Agro were approached. KADPMC was subsequently incorporated with Flour Mills, Falke Industries and Crown Flour Mills (an Olam company) as the initial majority shareholders, with KDSG holding a minority stake. Other companies like Tomato Jos, ShebagHoldings and Namalco are joining the KADPMC team.
The KADPMC promoters believe that it is more prudent to offer farmers an incentive to produce more, rather than merely providing subsidised inputs.
In April 2018, the KADPMC announced the resumption of Mr. Chris Gaiya as its Managing Director.