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Deal #4798

Location #1

Spatial accuracy level
Administrative region
Location
Kogi, Nigeria

Target country
Nigeria

Land area

Comment on land area
The proposed farming model would set-up a ‘nucleus farm’ to be run and managed by Cargill and which would support additional smallholder farming by the local community. The size of the proposed nucleus farm and processing facility is unknown. Union Dicon Salt Plc took over the project in 2016.

Intention of investment

Intention of investment
Food crops, Agriculture unspecified
Comment on intention of investment
cassava (for food and beverages), maize and soy

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
For processing facility and nucleus farm

Negotiation status

Negotiation status
[2015] Intended (Under negotiation)
[2016] Concluded (Contract signed)
Comment on negotiation status
Cargill is exploring several investments in Nigeria-- this project being one of them. Cargill is currently in dialogue with the Federal government and Kogi State, and other stakeholders, and is conducting location-specific feasibility and due diligence on the proposed processing facility and agricultural supply chain. Union Dicon Salt Plc took over the project in 20160- and was allocated the land.

Implementation status

Comment on implementation status
Proposed investment would be U.S. $100 million

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
30000
Comment on contract farming
Support the development of local cassava, maize and soy agricultural supply chains over approximately 30,000 hectares to supply the processing facility. smallholder farmers will have access to training, crop inputs and a reliable, fair market for their crops.

Number of domestic jobs created

Jobs created (domestic)
Yes
Comment on jobs created (domestic)
In the processing facility

Operating company

Comment on investment chain
Previous investor was Cargill.

 

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Data source #1

Data source type
Media report
File
Date
2015-10-08
Comment on data source
Farmland Grab- Staple Crop Processing Zone Kogi: Another form of land grabbing?

Data source #2

Data source type
Company sources
File
Comment on data source
Cargill website

Data source #3

Data source type
Media report
File
Date
2016-06-22
Comment on data source
Union Dicon Plc Replaces Cargill as Core Investor in $100m Alape Staple Crop Processing Zone

Data source #4

Data source type
Media report
File
Date
2016-07-06
Comment on data source
Vanguard- FG’s N28bn Alape agribusiness sold to cash-strapped company Read more at: https://www.vanguardngr.com/2016/07/fgs-n28bn-alape-agribusiness-sold-cash-strapped-company/

How did the community react?

Community reaction
Mixed reaction

Displacement of people

Comment on displacement of people
The company does not expect that any locals will be displaced by the project, as far as possible.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The community states that without compensation the investors will not get the land for the processing facility and nucleus farm (although the communities admit that they have no options if the investor does not compensate them).

Promised benefits for local communities

Promised benefits for local communities
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Roads
Capacity Building
Other
Comment on promised benefits for local communities
Power Additional benefits : Cargill will develop a corporate responsibility plan to put in place activities to bring benefits to the local community. This plan would be informed by the findings of the Environmental and Social Impact Assessment (ESIA).

Former land owner (not by constitution)

Former land owner
Community
Comment on former land owner
Land for the processing facility and nucleus farm. Land was under negotiation with Cargill as the investor in 2015. Dicon took over the project in 2016.

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), Corn (Maize), Soya Beans

Use of produce

Has domestic use
Yes
Domestic use
100
Comment on use of produce
The starch facility would produce up to 90,000 metric tonnes (mt) per year of cassava starch to supply Nigerian food and beverage manufacturers.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Cassava starch processing facility. In the future the company may build a soybean crush facility and an animal feed mill.

Water extraction envisaged

Water extraction envisaged
Yes
Comment on water extraction envisaged
Water for the Processing facility

Overall comment

Overall comment
Part of the Staple Crop Processing Zone-- Cargill would become the first private sector investor in the Kogi State SCPZ to support the agricultural transformation strategy set out by the Federal Ministry of Agriculture and Rural Development (FMARD). Dicon took the project over in 2016.

April 5, 2018, 1 p.m.

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April 5, 2018, 12:44 p.m.

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Feb. 22, 2018, 2:42 p.m.

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Oct. 8, 2015, 6:42 p.m.

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