TheCable

Dangote Rice Limited will launch a 25,000-hectare “rice outgrower” scheme in 14 states, beginning with Jigawa and Sokoto, on Wednesday.

In a statement on Monday, the company said the aim of the scheme is to reduce Nigeria’s food import bill.

The statement said the company would produce 225,000 metric tonnes (MT) of parboiled, milled white rice by the end of 2017.

“The flag off ceremony, which will be performed by the governor of Sokoto state, Aminu Tambuwal, will witness seedlings being distributed to the primary local farmers who will in turn plant the seed after which Dangote Rice company will purchase from them for milling and final processing,” the statement read.

“Dangote Rice projects in the 14 states, when, operational, will generate a significant number of jobs and increase take-home income for smallholder farmers, all while diversifying Nigeria’s economy and reducing the nation’s food import bill.

“By year-end 2017, Dangote Rice plans to produce 225,000 MT of parboiled, milled white rice. This will allow us to satisfy 4% of the total market demand within one year.

“Our model can then be successfully scaled to produce 1,000,000 MT of milled rice in order to satisfy 16% of the domestic market demand for rice over the next five years.

“By end of 2017, Dangote Rice will have 25,000 hectares under rice cultivation across three sites in northern Nigeria, having identified rice-growing communities in Jigawa state (5,000 hectares), Sokoto state (10,000 hectares) and Zamfara state (10,000 hectares).”

In addition to the outgrowers, the company aims to provide about 260 jobs as agronomists, credit officers and mill staff.

“The 25,000 hectares will be farmed by nearly 50,000 outgrowers in the selected site areas. These outgrowers are already organised into cooperative associations. We will engage with these organisations to register and sign contracts with each farmer.

“Upon harvest, Dangote Rice will offtake rice paddy and transport the paddy to be processed. One centralised mill will mill the stored paddy rice from all three sites.

“Dangote Rice will establish raw material reception, drying, hulling, parboiling units and silos in strategic areas throughout the country near our additional outgrower communities. Each site will store dried, hulled, parboiled bran rice. The rice bran will then be transported to a mill, where finished rice will be produced.”