There are 3 basic needs of man, food, clothing and shelter and there is an adage in the Yoruba parlance that says if food is excluded from poverty, then poverty is already conquered. A recent research revealed that rice is one of the most consumed foods in Lagos and that gave reason for the high influx of different brands of rice in the state before the former governor of Lagos, Mr Akinwunmi Ambode took the initiative to invest in massive rice production for Lagosians tagged the LAKE Rice. With a population of well over 18 million people, whatever is well-produced, branded, marketed and well communicated to Lagosians will of a truth thrive with the right conditions. These and many more were the reasons City People’s Brands & Products took it upon itself to see how well the LAKE Rice launched in 2016 is faring in the market today.
The year 2020 began with some positive indications that a good number of brands will thrive well and one of them is the LAKE Rice Brand. The yuletide season just ended and one of the brands of rice that that did well in the market was the Lagos Lake rice because of some factors that worked in its favour; chiefly, the land border closure. City People’s Brands & Products did a market survey very recently and realized that this brand of rice has the potential to take over the market space not just in Nigeria alone but also in West Africa.
HOW IT ALL STARTED
The immediate past Governor of Lagos, Mr Akinwunmi Ambode and the Kebbi State Gov, Alhaji Atiku Bagudu on Wednesday, Dec 21, 2016, launched the much anticipated Lagos-Kebbi Rice christened LAKE RICE, saying that the partnership which culminated into the launch was not only designed to ensure food security but showcase the ability of Nigeria to become a producing nation. Speaking at the launching ceremony held at Lagos House in Ikeja, Mr Ambode said the development was a great and historic moment for both states and Nigeria, as the rice would not only be sold at a highly reduced price, compared to what obtains in the market but is also very fresh and safe for consumption.
“Today is a historic day for Lagos and Kebbi States. In March 2016, we signed an MOU with an understanding that we, being proudly Nigeria, we want to come out with what is made in Nigeria and what is good in Nigeria. We took all that President Muhammadu Buhari said that we need to grow our food and we decided that we will prove a point and that is what today is all about.”LAKE RICE is of good quality. The major difference between LAKE RICE and the ones imported is that the imported has a minimum storage of five to six-year storage life span, but LAKE RICE is fresh.”
He said the partnership would in the nearest future lead to an expansion of production of the rice, saying that Lagos has the largest consumption market. Giving a breakdown of the prices, MrAmbode said that while the 50kg will sell for N12,000, 25kg would go for N6,000 and 10kg for N2,500, adding that for now, an individual would only be allowed to purchase a bag to enable it go round.
Governor Bagudu, who went down memory lane of how the collaboration started with a discussion between him and Governor Ambode during a meeting in Abuja, said the partnership was a confirmation of both State Governments’ commitment to the agenda of making Nigeria a big market in Africa. He said while Kebbi State has a comparative advantage in the area of rice production, Lagos boasts of the largest consumption market, saying that the LAKE RICE can stand any integrity test in Nigeria.”Our rice is of quality. I am proud of this joint venture. We can do more with other commodities like Cocoa, Soya beans and Sorghum and I am very glad that we are launching the LAKE RICE today,” Bagudu said.
SUBSIDY
The Lagos State Government said it has spent a total of N4.6 billion on the purchase of Lake Rice in the last three years to make the product available and affordable to residents. It also subsidised the product with N1.049 billion from December 2016 till date, as part of efforts aimed at sustaining food sufficiency and security in the state. The state further explained that the subsidy includes the cost of transportation, bagging and differentials in cost of production, adding that the initiative has reduced the increasing price of rice.
The state had concluded arrangements to acquire and establish a 32 tons per hour rice mill with AG (Bühler), a leading rice-mill producer in the world. “It is estimated that the partnership would facilitate the creation of 274,000 jobs across the agriculture value chain, and will bring about the cultivation of 32,000 hectares of farmland to produce rice paddy. “This amounts to an estimated 130 million Kg of processed rice per year, which is an equivalent of 2.6 million 50kg bags of rice.”
DISTRIBUTION
One of the factors helping the growth and acceptability of LAKE Rice in Lagos is the distribution technique adopted by the state government.
The Commissioner for Agriculture, Prince Gbolahan Lawal said that Lake Rice was available for sale in 10 centres across the state. The rice was available at the Agricultural Development Authority Complex, Oko-Oba; Lagos State Agriculture Inputs Supply Authority (LAISA), Ojo and the Blue Roof at LTV Complex, Agidingbi, Ikeja. Other centres such as the Lake Rice Sales Centre at Farm Service Centre, Epe; Odogunyan Farm Service Centre, Ikorodu; Teslim Balogun Stadium, Surulere and Farm Centre, Ajah.
The rice can also be bought at Government Technical School, Ikotun; Farm Service Centre, Badagry and the Mobolaji Johnson Sports Centre, Rowe Park, Yaba.
He said that a 50kg bag of Lake Rice costs N17,000, while the 25kg bag would be sold for N8,500, warning that the commodity should not be sold above the approved prices.
“For individual buyers, you cannot buy more than two bags in order to allow the rice go round everybody that needs it. Yes, it was N12,000, then N14,000 and now N17,000; the challenge has always been with the farmers. The cost of production then is not the same as now.
“The Federal Government and other states are working assiduously to ensure that the prices are within the range,” he said.
The commissioner said the Lake rice initiative was an intervention programme, adding that the completion of the Lagos State Rice Mill in Imota, would make the rice more affordable. He said the cost of production was responsible for the increase in price which was further expanded by the border closure. “For Lagos, this arrangement is an intervention programme.
He said that the government would continue to ensure adequate production and fair distribution of Lake Rice, with a view to ensuring its availability to the masses in the various designated sales centres across the state.
THE IMOTA RICE MILL PROJECT
One of the big plans of the Lagos State Government under the leadership of GovBabajideSanwo-Olu is a huge investment in agriculture, a feat that will ensure that youths are gainfully employed and are contributing their quota to the economic development of the state. Presently, the state is working hard to ensure the completion of Imota Rice mill project to ease expenses on the milling of lake rice. The Commissioner said work was in progress at the Imota rice mill, adding that upon completion, it has the capacity to produce 26 million 50kg bags annually and also create 250,000 direct and indirect jobs.
“It is a 32 tons capacity mill, it has the capacity to produce 26 million 50kg bags annually and it is going to create almost 250,000 jobs directly or indirectly.
“For now, we have a partner in Kebbi State. Kebbi also depends on the farmers, it is not as if it is Kebbi that is also milling, no, Kebbi State facilitates the farmers and the millers.
“What we do in Lagos essentially, is the marketing, so it is difficult for us. It is an intervention programme, it is a transit period for us.
“This policy is what we call import substitution industrialisation policy of the federal government.
“Now there is a policy, a total ban on importation of rice because the rice farmers association in Nigeria, they have the capacity to produce 10 million tons of paddy rice,” the commissioner said.
“By the time we have our own rice mill, which is over 50 per cent completion now, we will be able to determine how much we sell, and we will come up with a business case that will be affordable to everybody in Lagos and also people that want to partner with us in the demand.
“So our N17,000 is a blank check, we get supply, we pay Kebbi State, the farmers and the millers, whatever we are getting and we are selling it, is very competitive.
“By the time we have our own mill; we can say this is how much we want to be selling it,” he said.
He said that the state did not have total control over the price of the rice due to the partnership.
LAND BORDERS CLOSURE
Another factor that is working and will continue to work for the Lake Rice project is the lack of infiltration of the market by other foreign brands. Ever since the Federal Government declared the land borders closed, there has been an increase in the sales of local rice. The Lake Rice has enjoyed healthy competition from other brands of local rice but the involvement of the state government has given it an edge over many other competitors. This will most likely continue especially with the Imota Rice Mill project nearing completion very soon.
THE SOUTH-WEST FACTOR
No doubt, the LAKE Rice is presently being planted in faraway Kebbi state but further investigation revealed that the Lagos State Government is ready to spread its tentacles across the Southwestern states for the planting of the LAKE rice. An inside source revealed to BRANDS & PRODUCTS that Oyo, Ondo, Osun, Ogun, Ekiti and Lagos states will soon commence the planting of LAKE Rice in other to meet the needs of the ever increase consumers across the state and beyond.
With the indices noted above, there is no doubt that the LAKE Rice is one of the brands to watch out for in the agriculture sector and it can take the market by storm with all other things being equal.
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