Deal #4778

Location #1

Spatial accuracy level
Administrative region
Location
Apata, Nigeria

Target country
Nigeria
Comment on location
Farm and processing facilities. Apata community of the Lokoja Local Government Area of Kogi State

Location #2

Spatial accuracy level
Administrative region
Location
Osun, Nigeria

Target country
Nigeria
Comment on location
Pilot project

Land area

Intended size (in ha)
20000
Size under contract (leased or purchased area, in ha)
[2013] 13000
Comment on land area
Another data source states 15000ha, company website states 13000ha. Three phases - 2013-2016, 10000ha farm, 2016-2018, 5000ha farm and 2018-2020, 5000ha farm.

Intention of investment

Intention of the investment
Food crops, Non-food agricultural commodities
Comment on intention of investment
cassava starch for the food processing, pharmaceutical and textile industries

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2013] Concluded (Contract signed)

Implementation status

Implementation status
[2014] Startup phase (no production)
Comment on implementation status
In August 2013, CAP commenced operations on a 30 hectare pilot farm in Osun State. In February 2014 commenced land preparation activities on its permanent site in Kogi State. This investment will take place over 7 years. This investment will be executed in 3 phases: phase 1: 2013-2016: 50,000 ton/annum starch processing capacity and 10,000 hectare cassava farming and outgrower capacity; total capital requirement for this phase is estimated at $30-36 million, phase 2: 2016-2018: 25,000 ton/annum starch processing capacity and 5,000 hectare cassava farming and outgrower capacity; total capital requirement for this phase is estimated at $15-18 million, phase 3: 2018-2020: 25,000 ton/annum starch processing capacity and 5,000 hectare cassava farmer and outgrower capacity; total capital requirement for this phase is estimated at $15-18 million

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
Comment on contract farming
IITA will assist to develop and implement the out-grower scheme. The company will provide outgrowers support with inputs and training to ensure compliance with cultivation standards and requirements while also facilitating access to land, equipment and financing where applicable and feasible. Crest Agro runs a two-tier outgrower scheme on designated areas of the land under contract. Smallholders: the company works with local farmers to improve farming practices and yield, while guaranteeing off-take of their produce by our processing plant. These farmers typically have less than 5 hectares, and benefit from extension services and shared access to mechanization. Mid and Large Scale: Experienced farmers can apply to lease areas of a few-hundred to a few thousand hectares on company land. The company works with these farmers to develop a farming plan that aligns with seasonal processing needs.

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
300
Planned daily/seasonal workers (domestic)
1000
Current number of jobs (domestic)
[2015] 20
Current number of daily/seasonal workers (domestic)
[2015] 50
Comment on jobs created (domestic)
At full capacity the project will create employment for over 3,500 people spanning from small holder farmers to the several service providers cutting across the entire cassava value chain.

Operating company

Comment on investment chain
In partnership with the Kogi State Government - on behalf of the Federal Ministry of Agriculture and Rural Development- and several financing and operating partners- Chokyeunyong (thailand), IITA, Sterling Bank. IITA will assist to develop and implement the out-grower scheme. Chokyeunyong is advising on processing plant OEM selection, equipment design, operations requirement, supervision of plant installation and overseeing start-up operations. Kogi State Government (on behalf of the FMARD) facilitated access to the farmland and assisted seeking support and alignment from the local communities.

 

Network of parent companies and tertiary investors/lenders. Please right-click the nodes to get more details.

Legend
  • Is parent company of
  • Is tertiary investor/lender of
  • Left-click to reveal related parent companies and tertiary investors/lenders.
  • Right-click on investors to get more information.
  • Left-click to hide related parent companies and tertiary investors/lenders.

Data source #1

Data source type
Company sources
File
Comment on data source
Crest Agro Products Limited

Data source #2

Data source type
Company sources
File
Comment on data source
Crest Agro website

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Cooperation Framework to Support the New Alliance for Food Security and Nutrition in Nigeria.

Data source #4

Data source type
Research Paper / Policy Report
File
Comment on data source
New Alliance, New Risk of Land Grabs, Action Aid, May 2015

How did the community react?

Community reaction
Consent
Comment on community reaction
Kogi State government assisted the company in gaining community support for the project.

Displacement of people

Comment on displacement of people
Apata community

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The company is working with the Government to appropriately compensate and implement a gradual relocation program for the affected local farmers and Fulani herdsmen.

Promised benefits for local communities

Promised benefits for local communities
Roads
Other
Comment on promised benefits for local communities
Water and Electricity

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Marginal land

Detailed crop, animal and mineral information

Crops area
Cassava (Maniok)

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
Product to be used in Nigeria and the broader West Africa region

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
cassava starch processing facility- the factory is on track to be commissioned by the fourth quarter of 2016 and to commence full commercial production and trading by the first quarter of 2017.

Overall comment

Overall comment
In August 2013, CAP commenced operations on a 30 hectare pilot farm in Osun State. IITA provided technical & operations guidance on the pilot phase of cassava plantation. In addition IITA will assist to develop and implement the out-grower scheme. Chokyeunyong is advising on processing plant OEM selection, equipment design, operations requirement, supervision of plant installation and overseeing start-up operations. Kogi State Government (on behalf of the FMARD) facilitated access to the farmland and assisted seeking support and alignment from the local communities. This investment will take place over 7 years. This investment will be executed in 3 phases: phase 1: 2013-2016: 50,000 ton/annum starch processing capacity and 10,000 hectare cassava farming and outgrower capacity; total capital requirement for this phase is estimated at $30-36 million, phase 2: 2016-2018: 25,000 ton/annum starch processing capacity and 5,000 hectare cassava farming and outgrower capacity; total capital requirement for this phase is estimated at $15-18 million, phase 3: 2018-2020: 25,000 ton/annum starch processing capacity and 5,000 hectare cassava farmer and outgrower capacity; total capital requirement for this phase is estimated at $15-18 million

Nov. 23, 2016, 11:49 a.m.

overwritten

This version

Compare with previous version

Sept. 21, 2015, 12:48 p.m.

overwritten

Show this version

Compare with previous version

Sept. 18, 2015, 4:37 p.m.

overwritten

Show this version

Compare with previous version

Sept. 18, 2015, 12:27 p.m.

active

Show this version

First version

There are no comments to this deal yet.

Add a comment

(mandatory)
(mandatory)
(mandatory)

I've read and agree to the Data Policy.