Thursday, September 29, 2022

Nigerian producers grapple with wheat, energy crunch

Nigerian producers grapple with wheat, energy crunch

Mmachukwu Orizu started his baby formula business six years ago after leaving his former job as a medical lab scientist.

She uses grains like corn, rice and brown wheat to make her recipes. She then packages them up and prepares them for delivery.

But because of Russia’s war in Ukraine, it’s not sure when it’ll get its next supply of wheat, and said wheat shortages are also affecting prices of other materials.

Orizu is the founder of Soma’s Yumies.

“I use wheat along with oats and yam flour for that particular production,” Orizu said. “I won’t lie to you, it’s also difficult to get it. It’s not just about the rise in price. It’s difficult to get wheat now because I buy in bulk. I’ve made too many calls to some of my suppliers.” “

While it’s hard to come up with a key ingredient these days, business hasn’t been the same, Orizu said. She said she’s starting to explore other options, even though she’s concerned about her customers’ preferences.

“When you produce, and you’re not making your profit, it becomes a problem. It won’t be a business anymore,” Orizu said. “I’m already trying to research how to switch wheat for something else. Right now we have acha – that’s acha (grain). I’m going to make that decision now and Friday. between.”

Since Russia invaded Ukraine in February, grain prices have been rising steadily. At the start of the war, the Food and Agriculture Organization of the United Nations stated that the price of a bushel of wheat immediately increased by 5.7%.

But even before this, due to the shortage in the house, the price of wheat in Nigeria had increased by about 30 percent. The Wheat Farmers Association of Nigeria said that the local production of wheat here is less than 10%.

According to the country’s Bureau of Statistics, Nigeria imported an average of $2 billion worth of wheat in 2020 and 2021, mostly from the United States and Russia.

However, the Nigerian Manufacturers Association (MAN) said that grain shortages are not the only problem. Before the Russian invasion, businesses were already grappling with power and fuel shortages, inflation, poor infrastructure and growing insecurity.

Segun Ajayi-Qadiri is the Director General of the Manufacturers Association of Nigeria (MAN).

“The insecurity has made supply chain very difficult internally,” Ajay-Qadiri said. “The most affected parts of the country are also where we get most of our food from. Apart from the fact that there is insecurity, the roads are also bad. We have challenges – now this is compounded by the fact that people are farming. Can not even.”

Nigerian officials have blamed power outages for the national grid several times since January.

Officials also said that the recall of 17 crore liters of tainted fuel from circulation in January led to fuel shortage.

Many businesses, such as Osman Mohamed’s Bakery, are cut off from electricity and rely on diesel fuel to power generators. But he added that the price has also increased three times since the beginning of the year.

“Every day, we use a lot of diesel, because the power is too low,” Mohamed said, “so, we need to buy a lot more diesel. This has affected our production and the price of bread.”

For now, many business owners like Orizu and Mohamed are just coming and hoping for better days.

This article is republished from – Voa News – Read the – original article.

Nation World News Desk
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