LG Autonomy: Court dismisses state govts’ suit, affirms NFIU guidelines

The Federal High Court in Abuja, on Monday, dismissed a suit filed by Attorneys-General of the 36 states against the Nigerian Financial Intelligence Unit (NFIU) from implementing its guidelines on the administration of local government funds.

The guidelines limited the cumulative amount that can be withdrawn from a local government account to not more than N500,000 daily.

But the plaintiffs (state governments) had argued that the guidelines were in breach of the financial autonomy of the various states as enshrined in the Nigerian constitution.

Inyang Ekwo, the judge, held that the case lacked merit.

In the suit, the Attorney-General of the Federation (AGF), the NFIU and the Nigeria Union of Local Government Employees are defendants.

The NFIU issued some guidelines in May 2019 to guard against the overbearing influence of state governments in the administration of local government monthly allocations.

Delivering his judgement, Mr Ekwo held that the essence of the NFIU guidelines is to entrench financial transparency in government transactions at the local level.

Mr Ekwo agreed with the AGF that going by Section 23 (2) (a), Section 28 (2) and Section 31 of the NFIU Act, the “unit has the power to make the guidelines.”

The guidelines are aimed at reducing “crime vulnerabilities created by cash withdrawal from local government funds throughout Nigeria effective from June 1, 2019.”

Suit’s hearing

During the legal fireworks on March 2, the lawyer to the state governments, Omonsoya Popoola, said the state governments are not subject to the control of the NFIU.

Mr Popoola told the court that going by the operation of the State Joint Local Government Account, the states are regulated by legislation passed by the State Houses of Assembly, not the NFIU.

He urged the court to declare that the NFIU lacks the statutory powers to make guidelines for the regulation, monitoring and operation of the State Joint Local Government Accounts.

But the AGF represented by Tijjani Gazali, a Senior Advocate of Nigeria, said the NFIU has not encroached on the powers of the states or local governments.

“There is nothing wrong or unconstitutional about the NFIU guidelines as they do not usurp the powers of the plaintiffs,” Mr Gazali, acting Director, Civil Appeals at the Federal Ministry of Justice, Abuja, told the court.

Mr Gazali contended that “it is clear from the provisions of the NFIU Act, especially Section 23 (2) (a) and Section 28 (2) and Section 31 of the NFIU Act, that the unit has the power to make the guidelines.”

Similarly, counsel to the NFIU, Arthur Okafor, also a SAN, said the agency acted within its statutory powers to prevent abuse of office and other forms of financial crimes that might arise at the local government level.

Background

PREMIUM TIMES reported that in 2019, the Nigerian Governors Forum (NGF) approached another Federal High Court judge, John Tsoho, who is the current Chief Judge of the court, to stop the NFIU’s guidelines from being implemented, but Mr Tsoho declined the request.

Due to complaints by the governors, another federal judge in Uyo, Akwa Ibom State, refused to restrain the NFIU from pushing through with its guidelines.

The guideline mandates that state and local government joint accounts be operated solely as transit accounts from which funds will be distributed directly to the accounts of the local governments.

Financial institutions were directed to ensure the full implementation of the guidelines with effect from June 1, 2019.

In March this year, the National Assembly passed a bill abolishing the state joint local government account and providing for a special account where all allocations due to the local government councils, from the federation account and state government, shall be paid.

In the bill, each local government council is to create and maintain its own special account to be called the Local Government Allocation Account into which all the allocations will be paid.

The legislation also mandates each state to pay to local government councils in its area of jurisdiction such proportion of its internally generated revenue on such terms and in such manner as may be prescribed by the House of Assembly.

But for the bill to become a law, it has to receive the approval of at least 24 state Houses of Assembly.

Local government autonomy up to Nigerians, not NASS – Gbajabiamila

Local government autonomy can only be determined by Nigerians and not the National Assembly, Speaker Femi Gbajabiamila said on Monday.

Speaking at a two-day leadership training for local government chairmen and councilors from Delta state sponsored by House Minority Leader, Ndudi Elumelu, the Speaker said Nigerians have the opportunity to decide what type of local government system they want through the ongoing constitutional amendment.

He said: “It’s not for us as legislators to do that. I’m sure you’re surprised. But it’s actually for the people to address. We have constitutional amendment, we will throw it to the people and they will make their decision.

“We did it the last time and went back to the states as required by the constitution. But we couldn’t get the 2/3rd. There is a process and we followed due process.

“We amended it last time but 2/3rd of the states did not agree with us. So it’s the people that will decide whether they want autonomy or not. We will do what we need to do as Constitution provides”.

The Speaker described the local government as “the foundation of democratic governments in Nigeria. Ideally, it ought to be the center of governance activities and government innovations that serve to improve quality of life for all Nigerians.

“The system we have in place now has not served as well because of obvious overemphasis on the centralised policy planning and implementation at the federal government level.

“We have an obligation to try as much as we can to change the status quo in favour of an alternative that serves present needs and meets future expectations.”

The Speaker stressed there has been a lot of misunderstanding about the local government system in the country while many elected local government chairmen and councillors do not understand the role for which they were elected.

He said: “Many people believe that there are three tiers of government. Yes, there are three tiers of government. But do we understand what a tier means?

“A tier means that there are different layers and those layers are independent and they check each other. Many people believe there is separation of powers.

“Let me ask quickly, without trying to embarrass any of the Chairmen or Councilors. Constitutionally, what do you understand your role to be in government? Does anybody have an answer to that? I don’t think so. But we all have a general understanding.

“But many of us are not bold enough when we are told the specifics of what our roles are because we are beholding to whoever and I said this at the risk of respecting the powers of State Governors, the federal government, and in also balancing it on understanding the powers within these responsibilities of the local government.

“So there’s something called utra vires in law and that concept cuts across everything including governance. The President cannot interfere in the work constitutionally given to you at the local government level. Neither can you do what the state Governor is supposed to do.

“So when we talk about separation of powers, most time people understand that concept to mean executive, judiciary and the legislature but that’s a very narrow interpretation of separation of powers. That is the horizontal separation of powers.”

Creating sustainable value chains for staple crops in Nigeria: Nestlé, IDH, TechnoServe partner for better livelihoods for smallholders

Nestlé, IDH the Sustainable Trade Initiative, and TechnoServe announced Tuesday the launch of the Developing Inclusive Grain Value Chains project. The initiative will help 5,000 smallholder farmers earn better livelihoods by supplying high-quality maize, soybeans, millet, and sorghum to Nestlé.

The seven-month project will enable more inclusive and transparent sourcing of maize, soybeans, millet, and sorghum for Nestlé’s operations in Nigeria.

Women sorting grains

Women sorting grains

Incorporating smallholders into a value chain like Nestlé’s will not only benefit the farmers – who will see increased incomes from selling into stable and formal markets – but also the company, which will benefit from a steady supply of locally grown crops. The importance of local supply chains has been highlighted over the past year, as the COVID-19 pandemic disrupted global shipping.

Over the last few years, Nestlé has worked with smallholder farmers and aggregators in Kaduna State, Nigeria to improve crop quality, significantly reducing rejection rates from over 30% to 4%. Abnormal rainfall patterns caused by climate change make it difficult for farmers to properly dry their grain, and therefore it is difficult to build upon and maintain the crop quality.

The Developing Inclusive Grain Value Chains project will engage stakeholders across the supply chain to address these challenges. The project will work with six small- and medium-sized enterprises (SMEs) that aggregate crops and supply them to Nestlé factories. The initiative will build the capacity of businesses all along the grain value chain: aggregators and sub-aggregators will receive training on proper grain handling, storage, and testing, as well as entrepreneurial and financial skills, while logistics partners will receive training on proper handling and storage of grain during transit. The initiative will also work with extension agents from the aggregators to provide agronomy training to farmers, with a focus on good agricultural practices and post-harvest handling.

The project will increase traceability by working with aggregators to improve record keeping and by using assay testing kits to track the quality of grains provided by individual farmers. This will also enable the initiative and stakeholders to better tailor training to the specific needs of smallholders. To address the challenges posed by climate change, the project will work with the aggregators to provide accurate weather forecasts to farmers, helping them to make better decisions about when to dry their grains. The initiative will also engage stakeholders to pilot new, low-cost technological innovations like solar dryers.

The Developing Inclusive Grain Value Chains project is expected to improve the incomes of 5,000 smallholder farmers and increase the sales of the six aggregator SMEs by at least 10%.

Nestlé Nigeria Managing Director and CEO,Wassim Elhusseini said of the project, “At Nestlé, we are committed to building strong communities and supply chains, improving livelihoods in communities directly connected to our business activities. Therefore, we are delighted to work with IDH and TechnoServe to improve the livelihoods of smallholder farmers and SMEs who work within our supply chain. This project will help 5,000 families apply more sustainable farming practices to improve their household income while protecting the environment for the generations to come.”

IDH Nigeria Country Director, Cyril Ugwu added, “We are excited at this opportunity of working with TechnoServe and Nestlé in our joint mission to contribute to the improvement of agribusiness entrepreneurship in Nigeria. The partnership is crucial as it not only contributes to improved local sourcing of commodities by a reputable brand as Nestlé, it also contributes to food security and the economic wellbeing of a teeming number of farmers in the region.”

“Building more inclusive supply chains is a win-win for farmers and the private sector,” said Ayokanmi Ayuba, TechnoServe’s deputy country director and director of programs in Nigeria. “We are excited to work with Nestlé and IDH on this initiative to create lasting impact for smallholders, small businesses, and the sector as a whole.”

Nestlé Nigeria is one of the largest food and beverage companies in Africa. For over 58 years, the company has been delighting consumers around Nigeria by consistently delivering high quality nutritious food. With a staff strength of over 2,200 direct employees, 3 manufacturing sites, 7 branch offices and a head office located in Lagos, the company produces and markets several iconic brands including NESTLÉ PURELIFE, GOLDEN MORN, MILO, MAGGI and NESCAFÉ.

Nestlé’s purpose is to unlock the power of food to enhance quality of life for everyone today and for generations to come.

IDH, the Sustainable Trade Initiative is an international organization that works with businesses,
financiers, governments and civil society to realize sustainable trade in global value chains. Funded by different governments and foundations, IDH delivers scalable, economically viable impact on the Sustainable Development Goals and at the same time creates value for all parties along the entire supply chain. IDH brings together over 600 companies and governments to promote and improve new sustainable production and trade models in emerging economies.

The Developing Inclusive Grain Value Chains project is part of IDH’s Value Chain Development (VCD) program. The VCD program focuses on Africa and is aimed at creating economically viable, inclusive and resilient agricultural value chains.

TechnoServe is a leader in harnessing the power of the private sector to help people lift themselves out of poverty. A non-profit organization operating in 29 countries, they work with hard-working men and women in the developing world to build competitive farms, businesses, and industries. By linking people to information, capital, and markets, they have helped millions to create lasting prosperity for their families and communities.

Founded over 50 years ago, TechnoServe has been named the #1 nonprofit for fighting poverty by the Impact Matters charity ratings agency.

ALGON: STRATEGICALLY POSITIONING FOR FUTURE

Algon general Assembly held one day conversation on Wednesday the 24th of March 2021 at Shehu Musa Yar’adua center
Abuja.

The event was to deliberate on some of the topical issue that affect the grassroots such as insecurities, how the Covid-19 Vaccines will get to every mini Nigerian at the grassroots level, New approach to some issues and elect the Algon new Executives.

HON. IBE MICHAEL. ABIA STATE ALGON CHIARMAN.

HON. IBE MICHAEL. ABIA STATE ALGON CHIARMAN.

All the Algon Chairman from the 36 States was present and those who could not make it due one or two things were represented.
Honorable minster of special Duties and inter-Governmental affairs Sen. Dr. George Akume, Rt. Hon.Femi Gbajabiamila the speaker house of representative of federal republic of Nigeria and other were also present at the event venue.
The president of the the association of local government of Nigeria hon. Alabi welcomed all the unique and all important General Assembly, that took out time out of their busy schedule to attend the convention.
” Our system has always been challenged but we have always risen to the occasion by providing leadership, the theme of general Assembly is indeed a soul searching one as we strategically position for future in this
We are poised to take new and bold steps in the journey and implore you all to join and make necessary sacrifices in this journey and successful as we renew our constitution and elect a new National Officers to guide our great Association Algon Chairman Abia state hon. Ibe Michael appreciated the new leadership of Hon. Kolade David Alabi , and said that they will continue to support the new leadership of Algon family and they also have confident that the new Exco’s will do well.

He urge the state government to continue to support the grassroots.

HON.ADO BUBBA. PLATEAU STATE ALGON CHIARMAN.

HON.ADO BUBBA. PLATEAU STATE ALGON CHIARMAN.

In a same vein Ado Buba the Algon Chairman Plateau State congratulated the new Executives and pledge his supports for them.

Buhari Orders Immediate Dissolution of LG Caretaker Committees Nationwide

President Muhammadu Buhari’s has ordered for the immediate dissolution of Local Government caretaker committees nationwide.

The Attorney-General of the Federation, Abubakar Malami, asked state governors operating caretaker committees at local government level to immediately disband such committees and restore democratically elected representatives.

According to Malami, caretaker committees were outrightly illegal and unconstitutional as they amount to a breach of the provisions of Section 7(1) of the 1999 constitution (as amended).

This is as he described the practice of some state governors dissolving elected local government councils as unconstitutional, null and void and continued disobedience of the Supreme Court judgment of 9th December, 2016 in the case of Governor of Ekiti State & Ors vs Prince Sanmi Olubunmo & 13 Ors.

Apparently identifying Oyo State as one of the concerned states, Malami had placed such request on Governor Seyi Makinde in a letter dated 14 January, 2020, reference number HAGF/OYO/2020/Vol.I/I. entitled.

“Unconstitutionality of Dissolution of Elected Local Government Councils and Appointment of the Caretaker Committee: The Urgent Need for Compliance with Extant Judicial Decisions”, addressed to the state Attorney-General, Professor Oyewo Oyelowo.

A development described as unpleasant, Malami added that the request was in upholding the rule of law and not hindering the much-needed grassroots development at local government level.

The letter read, in parts: “The Honourable Attorney General of the Federation in line with the constitutional role as the Chief Law Officer of the Federation under Section 150(1) of the 1999 constitution (as amended) has noted with dismay the continued non-adherence by some state governors and state houses of assembly to the provisions of the Section 7(1) of the 1999 constitution (as amended) as it relates to the existence, administration and control of local government councils in Nigeria.

“This unpleasant development, without doubt, is hindering the much needed grassroots development expected to be put in place by the third tier of government.

“It is apt to make reference to the provisions of the 1999 constitution (as amended) under section 7(1) which states thus: ‘The system of local government by democratically elected local government councils is under this constitution guaranteed and accordingly, the government of every state shall, subject to section 8 of this constitution, ensure their existence under a law which provides for the establishment, structure, composition, finance and functions of such councils.’

“It is to be noted that the decisions of the Court of Appeal, which underscored the supremacy of the constitution over any other law, have been affirmed by the Supreme Court in Governor of Ekiti State & ORS V. PRINCE SANMI OLUBUNMO & 13 ORS (APPEAL NO: SC 120/2013) in a judgment delivered on 9th December, 2016, wherein His Lordship, Chima Centus Nweze, JSC sated in the leading judgment at PP. 28 & 29 thus:

“Having thus guaranteed the system of local government by democratically-elected local government councils, the constitution confers a toga of sacro-sanctity on the elections of such officials whose electoral mandates derive from the will of the people freely-exercised through the democratic process. Put differently, the intendment of the constitution is to vouchsafe the inviolability of the sacred mandate which the electorate, at that level, democratically-donated to them.

“Simply put, therefore, the election of such officials, into their offices and their tenure is clothed with constitutional force. They cannot, therefore, be abridged without breaching the constitution from which they derive their force.

“In view of the final decision of the Apex court which is binding on all the 36 states of the federation, the common practice by some state governors in dissolving elected local government councils is unconstitutional, null and void. So, also, any systems of local government run by caretaker committees are outrightly illegal and unconstitutional.

“To this end, I hereby request all their excellencies, state governors and speakers of state houses of assembly, who are currently acting in breach of the provisions of Section 7(1) of the 1999 constitution (as amended) and also acting in disobedience of the Supreme Court judgment highlighted above, to immediately retrace their steps by ensuring compliance with the above in the overall interest of the rule of law and our democracy.

The need to immediately disband all caretaker committees and restore democratically elected representatives to man the local governments has, therefore, become obligatory.

“I hereby request that you take positive steps to ensure compliance in your state accordingly. In the coming days, Mr. President and other relevant agencies will be advised further on compliance measures that should be taken in the national interest.”

Nigeria needs to close the financial inclusion gap for women smallholder farmers

Women smallholder farmers contribute significantly to the Nigerian economy.
Shutterstock

Olayinka Adegbite, University of Pretoria; Elizabeth Mkandawire, University of Pretoria, and Lepepeule Machethe, University of Pretoria

Women smallholder farmers in Nigeria are involved in all aspects of agriculture. This ranges from producing food on farms to putting it on plates. They’re involved in planting crops, livestock production, harvesting, marketing and processing of farm produce as well as food preparation and family care.

Yet, because they are women, they are held back by unequal access to resources – especially finances – that would help make them become more successful.

Agriculture contributes significantly to Nigeria’s economy. It is also the largest employment provider, with female smallholder farmers making up almost half the number of agricultural workers. They also play an important role in aspects of sustainable development. This includes being a bulwark against hunger and poverty in rural areas. Yet the majority still struggle to access affordable financial services to help them develop their farming operations and livelihoods.

Nigeria has made progress in strengthening regulations to enhance financial inclusion. But our study found that these regulations aren’t as effective as they could be to transform agriculture.

In the study, we looked at the gender gap in access to finance among smallholder farmers in Nigeria. And the impact of this on sustainable development.

Our research showed that these women farmers tended not to have bank accounts. This meant they lacked access to financial services like savings, credit and transactions.

This gender gap needs to be closed. We propose that this be done by introducing policies that favour women farmers. This could include targets for financial inclusion. It could also include implementing policies through collaboration with public organisations, the private sector and civil society.

Including women smallholders

Financial inclusion is meant to ensure all people have equal opportunity to access and use affordable financial services. These services include savings, credits, insurance, payments, transfers and remittances.

It’s been shown to have very positive effects on the lives of poor people. In addition, financial inclusion and achieving gender equality has been shown to have a positive influence on sustainable development.

Yet, the plight of women smallholders is often ignored by policy makers, financial institutions and those working in the agricultural sector.

Our study found that a significant financial inclusion gender gap exists in Nigeria’s smallholder agriculture. The largest gender gaps were in formal account ownership and savings. In other words fewer women farmers had accounts and saved with bank financial institutions, non-bank or mobile money service providers.

Also, fewer women smallholders owned mobile phones compared to men. As mobile banking is growing in Nigeria, not having a mobile phone means that women are excluded.

Other factors contributing to women’s financial exclusion include: poverty, low levels of literacy, limited education and limited assets. In addition, because of cultural and patrilineal traditions women typically don’t own land. They also have limited decision making powers when it comes to money.

Other restrictions include the fact that most women are constrained from participation in the marketing of high value crops. And then there’s institutional discrimination. An example is when financial institutions require a male signatory to grant a formal loan to a female farmer.

Need for financial inclusion

Nigeria tabled a revised national financial inclusion strategy in 2018. It identified the need to address gender gaps in financial inclusion. But no key performance indicator was set for women in smallholder agriculture.

Our study suggests this is a major omission. Failure to address the causes of women’s financial exclusion in Nigeria’s smallholder agriculture could result in a network of negative consequences. For example, the financial inability to adopt modern technologies – or access information – increases vulnerability on a number of fronts. This includes climate change, food insecurity and malnutrition, all while the population is increasing.

In turn, this degenerates into a vicious cycle of income inequality, poverty and poor socioeconomic development. This affects not only the women smallholder farmers, but their children, households, communities and the Nigerian economy.

Recommendations

No single approach can tackle the interrelated causes and effects.

But our study identified the need for Nigeria’s strategy to integrate gender specific goals for financial inclusion in smallholder agriculture. It is also important to establish partnerships between different stakeholders. These would include government, private and non-governmental organisations that have a common interest in women smallholders’ access to finance. Such partnerships should implement and finance clear-cut strategies in bridging financial inclusion gender gaps in smallholder agriculture in Nigeria.

Approaches should include developing agricultural finance innovations that reflect the realities of women. They need to be affordable, based on the financial needs of farmers. For example financial institutions should come up with and accept options – apart from land – that can be used as collateral for women smallholder farmers.

Similarly, successful models like the Nigerian Incentive-Based Risk-Sharing System for Agricultural Lending should integrate and empower women smallholders in their agricultural value chain financing models.

Finally, it is important that Nigeria’s financial literacy agenda extend to smallholders and rural areas. And there should be systemic efforts at all level of society to ensure that women have direct access to finance and control.The Conversation

Olayinka Adegbite, PhD candidate, University of Pretoria; Elizabeth Mkandawire, Postdoctoral Fellow and Coordinator: UN Academic Impact Hub for SDG2, University of Pretoria, and Lepepeule Machethe, Professor of Agricultural Economics, University of Pretoria

This article is republished from The Conversation under a Creative Commons license. Read the original article.

To reduce world hunger, governments need to think beyond making food cheap

Iraqis buy produce at a street market in Baghdad during the COVID-19 pandemic, July 14, 2020.
Ahmad Al-Rubaye/AFP via Getty Images

Michael Fakhri, University of Oregon and Ntina Tzouvala, Australian National University

According to a new United Nations report, global rates of hunger and malnutrition are on the rise. The report estimates that in 2019, 690 million people – 8.9% of the world’s population – were undernourished. It predicts that this number will exceed 840 million by 2030.

If you also include the number of people who the U.N. describes as food insecure, meaning that they have trouble getting access to food, over 2 billion people worldwide are in trouble. This includes people in wealthy, middle-income and low-income countries.

The report further confirms that women are more likely to face moderate to severe food insecurity than men, and that little progress has been achieved on this front in the past several years. Overall, its findings warn that eradicating hunger by 2030 – one of the U.N.‘s main Sustainable Development Goals – looks increasingly unlikely.

COVID-19 has only made matters worse: The report estimates that the unfolding pandemic and its accompanying economic recession will push an additional 83 million to 132 million people into undernourishment. But based on our work serving as independent experts to the U.N. on hunger, access to food and malnutrition, under the mandate of the Special Rapporteur on the Right to Food, it’s clear to us that the virus is only accelerating existing trends. It is not driving the rising numbers of hungry and food-insecure people.

The U.N. Food and Agriculture Organization’s Food Insecurity Experience Scale (FIES) is a global reference for measuring food insecurity. SDG Indicator 2.1.2 measures progress toward the Sustainable Development Goal of ending hunger by 2030.
FAO, CC BY-ND

How much should healthy food cost?

Experts have debated for years how best to measure hunger and malnutrition. In the past, the U.N. focused almost exclusively on calories – an approach that researchers and advocacy groups criticized as too narrow.

This year’s report takes a more thoughtful approach that focuses on access to healthy diets. One thing it found is that when governments primarily focused on making sure people had enough calories, they did so by supporting large transnational corporations and by making fatty, sweet and highly-processed foods cheap and accessible.

[Get facts about coronavirus and the latest research. Sign up for The Conversation’s newsletter.]

This perspective raises some important issues about the global political economy of food. As the new report points out, people who live at the current global poverty level of US$1.90 per day cannot feasibly secure access to a healthy diet, even under the most optimistic scenarios.

More broadly, the U.N. report addresses one of the longest-running debates in agriculture: What is a fair price for healthy food?

One thing everyone agrees on is that a plant-heavy diet is best for human health and the planet. But if prices for fruits and vegetables are too low, then farmers can’t make a living, and will grow something more lucrative or quit farming altogether. And costs eventually go up for consumers as the supply dwindles. Conversely, if the price is too high, then most people can’t afford healthy food and will resort to eating whatever they can afford – often, cheap processed foods.

What it will take to achieve a zero-hunger world.

The role of governments

Food prices don’t just reflect supply and demand. As the report notes, government policies always directly or indirectly influence them.

Some countries raise taxes at the border, making imported food more expensive in order to protect local producers and ensure a stable supply of food. Rich countries like the U.S., Canada, and in the EU heavily subsidize their farming sectors.

Governments can also spend public money on programs like farmer education or school meals, or invest in better roads and storage facilities. Another option is to grant people living in poverty food vouchers or cash to buy food, or to ensure everyone has a basic income that allows them to cover their fundamental spending. There’s a host of ways in which governments can make sure food prices allow producers to make a living and consumers to afford healthy meals.

The human cost of cheap food

The U.N. report focuses on trying to make sure that food is as cheap as possible. This is limited in a number of ways.

New research highlights that mostly focusing on cheap prices can promote environmental damage and brutal economic systems. That’s because only large corporations can afford to compete in a market committed to cheap food. As our research has shown, today and in the past, people’s access to food is usually determined by how much power is concentrated in the hands of the few.

One current example is meatpacking plants, which have been coronavirus transmission centers in the U.S., Canada, Brazil and Europe. To keep prices low, people work shoulder-to-shoulder processing meat at an incredible speed. During the pandemic, these conditions have enabled the virus to spread among workers, and outbreaks in factories have then spread the virus to nearby communities.

New international standards allow factories to continue to operate, but in a way that protects workers. In our view, governments are not adequately enforcing these safety standards to stop the spread of the virus. Globally, four corporations – Brazil’s JBS, Tyson and Cargill in the United States, and Chinese-owned Smithfield Foods – dominate the meat-producing sector. Studies have shown that they are able to lobby and influence government policy in ways that prioritize profit over worker and community safety.

Our work has convinced us that the best way for governments to make sure that everyone has access to good food is to view a healthy diet as a human right. This means first understanding who has the most power over food supplies. Ultimately, it means making sure that the health, safety and dignity of people who produce the world’s food is a central part of the conversation about the cost of healthy diets.

This article was updated to correct the figure for predicted undernourishment.The Conversation

Michael Fakhri, Associate Professor of International Law, University of Oregon and Ntina Tzouvala, Senior Lecturer in International Law, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Why Nigeria’s African swine fever outbreak will hit farmers hard

The Nigerian government must come to the aid of pig farmers to cushion the devastating effect of African Swine Fever.
Deyana Stefanwa Robova/Shutterstock

Oladipo Omotosho, University of Ibadan

Nigeria is in the throes of a fresh outbreak of African swine fever which has affected 145,000 pigs in Oke Aro, West Africa’s largest pig farm estate. Dr. Oladipo Omotosho of the Department of Veterinary Medicine, University of Ibadan, explains the disease, its impact and how to prevent future occurrences.

What is African swine fever?

African swine fever is a highly contagious haemorrhagic disease of pigs. It is caused by a virus and was first discovered in Kenya in 1921, in recently imported European pigs. The disease was transmitted from wild pigs, which are relatively resistant, and killed most of the domestic pigs.

The disease can be spread via ticks or among pigs by oral and nasal transmission. Pigs can also get infected through contamination of wounds or food. There is a wide range of symptoms, including loss of appetite, fever, skin haemorrhages, vomiting and abortion.

Commonly 40% to 85% of the pigs in a herd will be affected and those that will die may range from 20% to 100% of those affected. The pigs that survive then become carriers of the virus.

There is no treatment or vaccine.

The animals that die of any disease are not fit for human consumption. And the carcasses of pigs with the fever should be buried to prevent further spread of the virus from its body fluids.

It is not infectious for humans and does not directly affect public health. But the meat of diseased pigs is not safe for consumption.

The disease was confined to Africa until 1957, then spread from Angola to Lisbon. It is now seen around the world and is endemic in many sub-Saharan countries.

African swine fever can result in serious economic losses to farmers and in terms of government revenue and higher meat prices. For example, an outbreak in China in 2018 pushed up retail pork prices by 47%. China farms and consumes about half of the world’s pigs. A study in the US found that an outbreak could cost the industry US$50 billion over 10 years.

How serious is this latest outbreak in Nigeria?

The latest outbreak is at epidemic proportions. The rate of spread within and between farms is alarming and the death rate is higher than has been seen in the last 12 years. There are farms that have experienced the death of hundreds of pigs within 24 hours. The major reasons are weak farm biosecurity, disease surveillance and warning systems.

The disease has ravaged many areas, especially in Lagos and Ogun States. The main cluster of the outbreak is in Oke-Aro pig farm settlement, one of the largest pig farming estates in West Africa. It accommodates thousands of pig farmers with huge investments in the industry. It’s too early to say how great the total losses will be but it’s estimated that the Oke-Aro farm estate has already lost more than 145,000 pigs. This number excludes individual pig farms, large and small, that have been devastated by the disease.

This removes a source of affordable animal protein for many Nigerians. The livestock industry will take several years to recover from this outbreak. The last one like this was in 2008 and some farms have never resumed operation. Others down-scaled production because of the uncertainty linked to outbreaks.

How is African swine fever treated?

No treatment or effective vaccine against the virus is available, despite many attempts to develop one. Prevention and control of spread is therefore important. If it is suspected in a herd, measures should include: strict restriction of movement of infected pigs and carcasses; prompt diagnostic studies; identification and slaughter of all infected animals; depopulation of infected herds; and surveillance and detailed epidemiological investigation.

Farm premises must be thoroughly cleaned and disinfected after removal of all livestock. Replacement stock should be obtained from areas free of the disease, and strict biosecurity measures on farms are recommended.

What are the likely economic impacts of the disease?

It has serious economic impacts on the trade of swine, pig by-products, and food security, particularly in Nigeria where pigs are an important source of protein. It is estimated that Nigeria and neighbouring Ghana consume $3 billion worth of pork annually. Though data on this is scanty, production of pig meat for Nigeria was 283,793 tonnes in 2018 and the total number of pigs in 2011 was 7.1 million.

The number of affected farmers is not exactly known but they will lose capital and revenue. The government may lose funds in paying compensation and from loss of rents and tax paid by the farmers. There will be a short supply of pork and other pig products that may lead to higher prices. Suppliers of raw materials for pig feed will make lower sales. Export revenue will be hit because other countries will not want to receive pigs from an affected location. Banks and other financial institutions that fund farmers will be affected as some of their loans may become bad debts. And there will be economic losses through the humane killing of surviving pigs that carry the virus on affected farms.

What can be done to improve prevention in future?

Pigs that replace diseased stock or are used to start herds must be screened. All imported pigs should be screened for the virus too. The carriers have to be humanely destroyed and farmers must be compensated for this. All pig farms should be registered with government to standardise practice and make it easier to track disease.

Farmers should be trained and made to comply with biosecurity and sanitary measures to prevent diseases. They also need to insure their farms against disease outbreaks.

A system of national disease surveillance is needed to provide accurate information about the risk and prevalence of diseases so that government can make proper policies and interventions.The Conversation

Oladipo Omotosho, Lecturer, Swine Medicine Unit, University of Ibadan

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Amazing! How smart farming techniques by South Korea can future-proof agriculture.

South Korea’s approach to agriculture involves both old century’s traditions and techniques that belongs to the same time. They adapted to the changing times and modified their traditions and techniques according to environmental conditions and climate change. We can learn from them and do the same to future proof our food production.

Various countries have hailed South Korea as a model in handling COVID-19 crises, but they are also playing a vital role in finding solutions to the long-term problems of climate change and agricultural production with its agricultural techniques and traditions.

How South Korea can be an ideal example for agriculture in the recent times:

In Chuncheongnam province, there is a town called Geumsan. It is the heartland of the country’s most famous crop Ginseng, also locally known as Insam. They apply their knowledge of Korean landscape management techniques and uses transition areas between different types of landscapes, known as ecotones. The crops of Ginseng are planted at greatly precise places depending on wind and sun exposure and also temperature, direction and rainfall. Centuries of plantation have taught these farmers that Ginseng grows best on 25-30 degree slop in mountain valleys and from east to south direction. This helps in maximizing sunlight, ventilation and water drainage. The structures of wood and cloth are angled specially to make sure that methods of farming are adapted to environmental conditions.

This is how the farming of ginseng has adapted to Chuncheongnam’s mountainous topography using hill forest to its advantage. The forests serve as green walls and windbreaks, controlling sun and wind exposure for the crop to grow to optimum yields.

Enhancement of soil fertility:

The management and usage of land reflects developed Korean farming combining intercropping, multi-cropping, crop rotation, and resting periods, all rolled into one dynamic system. The traditional knowledge about nitrogen-fixing plants, micro-organisms and soil bacteria and the relation between all to increase soil fertility, boosting crop health and reducing pest infestations.

An area allocated for vegetables in this system will intercrop two or more plants such as cabbage, pepper and radish, followed by a plot intercropping barley, beans, corn or rye, and finally a plot for rice.

Here farmers make their own natural fertilizer and pesticides by using their Korean traditional knowledge of soil nutrients. They do this by culturing and multiplying micro- organisms, bacteria, fungi to enhance fertility of soil without the need of livestock waste.

Water management:

The island of Cheongsando is a region of severe water scarcity. Yet, the famers here are planting rice, a crop which is highly water dependent. By using an agricultural technique that is 500 years old farmers have adapted to the water scarcity of the area and have built terraces for rice.

Basically, the farmers here use underground aqueducts to irrigate rice fields on top. Farmers lay a flat stone and stack rocks. After that they put a layer of red mud and finally arable soil for the rice. The rice grows in the soil, while the red mud retains and controls the amount of water, with any excess dripping between the stacked stones and into the rice terrace below.

The high rate of water drainage and thin layer of soil results in high loss of nutrients. To tackle this farmers apply traditional fertilizers made up of mixture of grass, leftover animal feed, human manure to supplement. For controlling pests antiseptic leaves from the silk tree are used.

This whole process helps in maximizing the use of land without adverse effects on the surrounding environment. The aqueducts simultaneously serve as a home to diverse aquatic flora and fauna.

Some parts of South Korea witness regular floods, farmers here have developed an Agroforestry system. For 1200 years they planted and cultivated diverse tea trees in that areas. Now long adapted to the ecosystem, the trees themselves serve as barriers to the flooding of villages, and bring in revenue for this region that accounts for 20 per cent of South Korea’s domestic tea production.

The climate change crises is growing on intense level and it is the farmers who can be change makers and push through by adaptations responses as they are the one who are on the front lines of climate change. They are vulnerable as their livelihoods can get directly impacted by this.

Contract Farming Is Modi’s Biggest Gift To Farmers; Here Are 6 Ways It Can Transform Indian Agriculture

onions being offloaded

Onions being off-loaded at an agricultural produce yard.

  • The regulatory reform needle for Indian agriculture moved more yesterday (15 May) than it did during the last seven decades.

There are decades where nothing happens, and there are weeks where decades happen.

— Vladimir Lenin

The above quote is in rage these days, especially among stock market investors though Lenin wouldn’t be very happy about it.

Many smart folks are making moolah like they did during the 2008 financial crisis so much so that they could happily retire if their greed permits.

But the Covid-19 pandemic is a far bigger, wider and deeper crisis than the 2008 crash in financial markets. And larger the calamity, grander the opportunity to reap benefits.

Nonetheless, the Lenin quote is not just applicable to investors. It is representative of drastic changes taking place all over the world in response to the havoc wreaked by Covid-19. It’s true for India as well.

Speaking purely on the basis of potential and hope, I would dare say that the regulatory reform needle for Indian agriculture moved more yesterday (15 May) than it did during the last seven decades.

Yesterday was a day where decades happened.

Union Finance Minister Nirmala Sitaraman announced three radical reforms: contract farming, amendments to Essential Commodities Act of 1955 and a central law facilitating farmers to sell their produce anywhere in the country rather than to licensed buyers at designated mandis.

All three of these reforms are critical. If the government had left out even one of these from its package, the impact would’ve been much less as I will explain later. But of all the three, contract farming is Modi government’s biggest gift to farmers.

It has the potential to transform Indian agriculture in ways that are currently not even fathomable.

First, the biggest problem with Indian agriculture is that of scale (or lack thereof).Small and marginal holdings (less than two hectares) constitute 86.21 per cent of the total land holdings in the country. This not only doesn’t allow farmers to have sufficient or sustainable income but is also very damaging to overall productivity because smaller the farmer, lesser the capital, will to experiment with crops, seeds, water-use, fertilizer, etc.

And thus outdated policies continue. Experts after experts have been pointing out the need for consolidation of farms if Indian agriculture has to have a shot at achieving decent levels of growth.

But no policy of the government has helped. Here, contract farming can prove to be a boon. If big businesses make major moves on this front, the possibilities are immense.

A single firm can contract with tens of thousands of farmers and consolidate their farms in one go. That solves India’s biggest policy challenge.

Second big challenge for Indian agriculture is low productivity.Contract farming can prove revolutionary here. Most Indian farmers are small and they don’t have the know-how or resources to innovate in any area of production. Policy pundits have been complaining about the lack of private sector investment in agriculture sector for decades now.

Now, contract farming paves the way for this. Businesses have specific requirements regarding the quantity and quality of farm produce they need for making their end products.

So, they will have skin in the game to invest in Research and Development of each aspect of production from seeds to harvest.

Companies which are engaged in contract farming in India at present in some states for select crops have been helping farmers in procuring better seed qualities and also training them in better methods of farming, which can improve yields.

Third major issue has been our pathetic record in post-harvest value add.Farm policy experts have been exhorting the government to invest in cold storage chains, warehouses, marketing reforms, food processing and what not. But government after government has failed at that.Even if the government succeeded, it wouldn’t be able to run them efficiently and competently as its record of managing its own godowns shows.

This is where contract farming comes into the picture. Big businesses will now have an incentive to invest in agriculture infrastructure for storage and food processing (maybe in partnership with other Agro-based industries).

Backward and forward market linkages can be easily created. This will give a big boost to agriculture as an industry and create many jobs as well in agri-related activities.

Fourth, contract farming is effectively the biggest insurance scheme for farmers. As the sale of their produce is guaranteed at a pre-determined price, they don’t have to fret about crash in prices in harvest season. It ends unpredictability in their incomes to a great extent.

Companies currently involved in contract farming in India not only provide farmers with the inputs like seeds and fertilisers and technical know-how but have also been providing loans to them.

Once this system becomes widespread, farmers will be freed from the clutches of moneylenders and move into a transparent system of contracts.

Contract farming will do more to stop farmer suicides than any government loan waiver did in the past seven decades.

Fifth problem with Indian agriculture is lack of diversification in crops. There is too much focus on food crops like wheat, paddy, etc. Contract farming can solve that as well.

As businesses contract with farmers, they can dictate their decisions on what to grow based on the demand of the said produce in the market here in India as well as abroad.

Currently, the decisions of farmers are dictated by government policies on Minimum Support Prices (MSP), which are oriented more towards food crops.

No wonder, there is little diversification because the selling of produce (wheat, paddy, etc) is guaranteed for farmers at attractive prices.

Now, what contract farming does is that it also guarantees farmers a fixed price and guaranteed buy.

So, if someone asks them, they can grow any other non-food crops as well, as long as it gets them same or higher price.

Given the market for non-food crops and the prices these fetch, it wouldn’t be difficult to make them switch.

Last, but not least, the biggest problem with Indian agriculture is that there are too many people involved in it.

Half of them can get out of it tomorrow and no one would notice. There won’t be any change in productivity.

This issue of disguised unemployment is big and contract farming can solve it to a great extent.

Once big corporations control vast swathes of agriculture production by pooling in lands of thousands of farmers where technology replaces most labour work, a lot of people can move out of this unproductive profession.

Many will get jobs in agriculture-related activities that contract farming will help create while others will have to be absorbed somewhere else.

There are many other positive changes contract-farming will usher in. We can’t fathom all of those.

And that says a lot about the potential of this Big Bang reform.

In the beginning I mentioned that the reform package wouldn’t be complete without other two reforms announced by the government — breaking the monopoly of licensee cartel in mandis which will facilitate barriers-free trade across the country and amendments to the Essential Commodities Act (ECA).

ECA is a legislation from an era of shortages of the Nehruvian India where the government needed to crack down on hoarders of essential commodities.

It isn’t compatible with Modi’s India of contract farming, where large volumes of commodities will need to be be stored and moved seamlessly across state borders.

As far as breaking of APMC monopoly is concerned, this may not be consequential to an individual farmer but it is critical to the success of contract farming, for, the contractor will need the freedom to transport and sell it to any buyer not just in the country but even outside.

Why did Modi’s ambitious idea of e-mandis not take off?Because, for most small farmers, it doesn’t make sense to sell it to a person or a place beyond their district boundaries.

The transportation cost would be too overwhelming even if they are getting an attractive price.

So, a farmer in Rohtak would rather sell his produce in local mandi at lower price than take the trouble of going to Delhi and selling it at a higher price.

But businesses won’t have that problem. They can easily transport huge volumes from one state to another, or to ports for transportation to foreign countries.

Contract farming is the real deal.

If ever there existed a Rama-baan to solve the woes of Indian agriculture and farmers, this is it.

Only one thing can stop this idea from realising its full potential: the government. It should stay as far as possible from the contractual agreements between farmers and businesses.

It shouldn’t give into its socialist impulses and set a minimum floor price for crops in contracts. This will neutralise the whole reform.

The government should restrain Itself from intervening on the side of farmers when they break their contract (There have been cases where farmers sold their produce in the market instead of selling it to the business they had signed contracts with because they were getting a higher price in the market.).

Such breaches of contracts should be left for the courts to decide. The government must focus on strengthening the justice system. India fares terribly on implementing contracts fairly.

The government has its task cut out for itself: stay away, don’t give into populism, be fair, don’t become an active participant in the process and only remain a facilitator.