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1 Nigerian Export Promotion Council Development of Evaluation Mechanisms For STDF 172 An Internship Project Summer 2014 Lawi Laktabai The Elumelu Foundation

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Nigerian Export Promotion Council

Development of Evaluation Mechanisms For STDF 172

An Internship Project

Summer 2014

Lawi Laktabai

The Elumelu Foundation

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TABLE OF CONTENTS

Page

EXECUTIVE SUMMARY 3 1 INTRODUCTION 4 1.1 Context 4 1.2 Role of intern in evaluation of the implementation of STDF Project 172 2 METHODOLOGY 5 3 OVERVIEW OF EVALUATION CRITERIA 6 3.1Relevance 6 3.2 Effectiveness 3.3 Efficiency 6 3.4 Impact 6 3.5 Sustainability 7 4 PROCESSING CENTER VISITS AND FINDINGS 7 4.1 Field visits 7 4.1.1 Anyigba processing center 7 4.1.1.1 Discussion of findings 8 4.1.2 Saki processing center 9 4.1.2.1 Discussion of findings 10 5 CURRENT MARKET STATISTICS AND OBSERVATIONS 10 6 RECOMMENDATIONS 12 6.1 Model processing centers (Saki & Anyigba) 12 6.2 Warehouse storage 12 6.3 Laboratory & testing infrastructure 13 6.4 Research & development 13 6.5 Organic certification 14 6.6 Building a culture of high-quality-expectations 14 6.7 Incentives for Good Agricultural Practices (GAP) 15 7 POSSIBLE AREAS OF PARTNERSHIP BETWEEN NEPC & TEF 16 8 LESSONS LEARNED 16 APPENDIX: Appendix 1: Questionnaires

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Executive Summary

This report presents the evaluation of “STDF Project 172” project, which was formally concluded in May, 2014. The project was funded by World Trade Organization in partnership with NEPC and was aimed at expanding Nigeria’s export of sesame seeds and shea-nut/butter through improved SPS capacity building for private and public sectors.

One of the project’s deliverables was the development of an effective aflatoxin control system for sesame seeds and an effective Free Fatty Acid (FFA) control system for shea-butter; the quality control systems established would provide quality control for all stored cereals and pulses for local consumption and export. The project also resulted in the construction of eight processing centers and installation of some processing equipment such as; beds, driers, crackers/parboiling tanks, and thrashers in eight beneficiary states. The deliverables formed the basis for the evaluation of the STDF project. The evaluation methodology used focused on; review of project documents, face to face interviews with some stakeholders, online research, and briefing from NEPC officer involved in the project. On-site visits were integral part of the evaluation although time constraints limited visits to only two centers – the assumption was that the two centers represent the other six.

The centers had not been fully utilized at the time of my visits. The investors pointed out that they would begin operations soon. There were no financial risks noted at both centers and the operational risks noted are negligible and could be addressed easily. Sesame seed farmers face challenges in sourcing quality seeds and are yet to register with the GES scheme (a national seed-sourcing platform). The STDF project was effective in developing skills and reducing the knowledge gap among farmers, extension agents, and standards enforcers, particularly as related to aflatoxin critical control points. Continuous training needs to be done to sustain its effectiveness.

Current statistics on sesame seed exports to Europe show that more EU countries are importing from Nigeria. In the first two quarters of 2014, six countries that did not import from Nigeria from 2011 to 2013 recorded imports. There is an upward trajectory in the dollar value of total sesame seed exports year-to-year. Although the results couldn’t be directly linked to the implementation of STDF Project 172, other efforts by NEPC to boost sesame seeds exports could have played a role.

Most of the recommendations given are geared towards sustainability of the implementation of the STDF project. Seeking organic certification, building a culture of good-quality-expectation, establishing warehouse and laboratory infrastructure, and giving incentives for good agriculture practices (GAP) would provide a solid ground for sustainability.

To encourage public-private partnership in the implementation of this project, possible areas of collaboration between NEPC and the Tony Elumelu Foundation were suggested in this report. TEF could partner in; building of warehouse infrastructure for sesame seeds, provision of quality sesame seeds to farmers, and assistance in continuous training of all stakeholders both for sesame seeds and shea-nut/butter.

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1. Introduction

1.1. Context

The Nigerian Export Promotion Council’s (NEPC) key role is to boost Nigeria’s non-oil

exports and “make non-oil export a significant contributor to Nigeria’s GDP”1. In order to

achieve this, NEPC focuses on – among other things – the development of priority

export products/produce to meet required standards and competitiveness for export. In

the Agriculture sector, some of the priority export produce are; sesame seeds, shea-

nut/butter, cashew nuts, cocoa, cassava, walnuts, and a range of fruits just to mention a

few. This report focuses on sesame seeds and shea-nut/butter as priority export

products.

Nigeria is ranked second – in Africa – in the production & export of sesame seeds. The

bulk of sesame seeds are exported to such countries as; China, Japan, Turkey,

Republic of Syria, and South Korea. In shea-nut production, Nigeria is considered the

world largest producer; it produced 325,610 metric tons in 2010 according to (FAO).

In spite of high productivity and rankings, Nigeria has not been able to successfully (on

a larger scale) exported to major markets such as; the European Union (EU) and the

United States of America because of failure to meet sanitary and phytosanitary (SPS)

standards set by these countries. SPS standards are enforced by individual countries

for their local food consumption and overseen by the World Trade Organization (WTO)

to ensure safety of food for consumers and to prevent the spread of pests and diseases

among animals and plants across borders in the context of global trade.

In order to ensure compliance of the SPS standards and hence expand Nigeria’s export

of sesame seeds and shea-nut/butter, NEPC in partnership with WTO sponsored the

“STDF (Standards for Trade Development Facility) Project 172” to improve SPS

capacity building for private and public sector.

The STDF Project 172 was designed to achieve the following specific objectives;

Expand Nigeria’s export of sesame seeds and shea-nut/butter through improved

SPS capacity building for private and public sector.

Develop an effective aflatoxin control system for sesame seeds export and

effective Free Fatty Acid (FFA) and impurities control system for shea-butter

export.

The quality control system established would provide quality control for all stored

cereals and pulses for local consumption and export.

1 http://www.nepc.gov.ng/page_corporate_overview.html

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Construction and installation of some processing equipment like beds, driers,

crackers/parboiling tanks, thrashers etc. in the beneficiary states.

1.2. Role of intern in evaluation of the implementation of STDF Project 172

Description of tasks:

The intern shall work closely with key officers in developing the evaluation mechanisms

for STDF 172, attend meetings/seminars to facilitate understanding and effective

participation in the program, and visit selected shea-nut/butter and sesame seeds

processing centers, in particular, to;

Carry out evaluation of the implementation of the project

Undertake a performance measurement framework of the project with the aid of

M & E tools

Identify and evaluate risks that are associated with the implementation of the

centers; financial, operational etc.

Identify other needs in terms of development of proposal to attract donors in

replication of the project in other states of the Federation

Submit report of activities

2. Methodology

This report has been prepared on the basis of; online research; project documents; and

seminar tapes. Information was also gathered by; visiting sesame and shea-butter

processing centers, farms, NAFDAC offices, and cooperative societies.

Questionnaires (see appendix 1) were designed to capture activities of participants in

the value-chain; input suppliers (for the case of sesame seeds),

producers/farmers/sheanut collectors, brokers/buyers, processors, exporters, and

service providers (e.g. transporters, trainers etc.) However, because of time constraints

the questionnaires were not distributed beforehand, but rather used as guides during

face-to-face interviews. The questionnaires were developed based on STDF standard

evaluation criteria, which focus on measuring; relevance, effectiveness, efficiency,

impact, and sustainability of the project.

This report addresses the; relevance, effectiveness, efficiency, impact, and

sustainability of the project in the “discussion of findings” and “recommendations”

sections.

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3. Overview of the evaluation Criteria

3.1. Relevance

STDF Project 172 is relevant to the extent that the project provides the right answers to

the Nigerian sesame seeds and Shea-nut/butter export needs and to the extent that the

identified needs, which gave rise to the project (presence aflatoxins in sesame seeds

and Free Fatty Acids (FFA) & impurities in shea-nut/butter), are being addressed to

meet set standards for export.

3.2. Effectiveness

For the purposes of this report, STDF 172 project is considered effective to the extent

that the objectives below were achieved or are likely to be achieved;

Overall expansion of sesame seeds and shea-nut/butter export

Improved SPS capacity building;

o Continuous training/awareness/involvement of farmers and all

stakeholders in the value chain

o Established robust aflatoxin control system for sesame seeds and shea-

nut

o Established robust FFA and impurities control system for shea-butter

Installation and subsequent efficacy of the processing equipment in the

beneficiary states

3.3. Efficiency

This project is considered efficient if it is, in a cost-effective manner, addressing the

intended beneficiaries’ needs.

3.4. Impact

The assessment of the impact of the intervention would address the following questions;

o Is there evidence that the intervention narrowed the knowledge gap regarding

conditions that harbor the production of aflatoxin and created awareness of the

critical control points?

o Is there increased participation of individuals in SPS capacity building through;

cooperatives membership and training workshops attendance etc.?

o Is there a measurable impact on export market access?

o Is there evidence of poverty reduction?

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3.5. Sustainability

Sustainability is a very important evaluation criterion because it sums up the other

criteria and projects a long-term horizon. For the purpose of this report, the

implementation of STDF Project 172 is deemed sustainable if; the benefits of the project

are evident long after STDF funding ceased; the beneficiaries of the project have the

necessary capacity to overcome foreseen and unforeseen challenges to sustain positive

results; and if there are solid measures in place to ensure sustainability of the

interventions.

4. Processing Centers Visit and Findings

Although four sesame processing centers and four shea-butter processing centers were

built as part of the STDF Project 172, time and logistical constraints limited my visit to

two processing centers; one for sesame seeds and one for shea-butter. This report

assumes that the two centers represent the other six and that the findings and

recommendations would be applicable across the board.

During my visit, I had an opportunity to hold meetings with; investors, agricultural

extension officers, cooperative societies’ leaders, and farmers. The meetings helped to

bring to light how implementation of the project is run and what impact it has on the

beneficiaries. Below are the findings;

4.1. Field Visits

4.1.1. Anyigba Sesame Seeds Processing Center

- Farmers complained about the unavailability of hybrid seeds and if the seeds

were available, they were sold to farmers at unaffordable prices. The farmers

pointed out that they had not been able to plant sesame seeds and the planting

season was about to come to an end. In response, the investor advised farmers

to register with the Growth Enhancement Support Scheme (GES), an electronic

resource for sourcing affordable seeds, agro-chemicals, and fertilizer in order to

access quality seeds in a timely manner.

- The farmers admitted that they are quite aware of the new methods of farming

that would reduce contamination of sesame seeds and there was palpable

enthusiasm among the farmers regarding the benefits of the processing center.

Some farmers seemed concerned about the high cost of acquiring tarpaulin for

drying sesame seeds after harvest as a way of reducing contamination.

- The center is ready for use as evidenced in the trial-run that was performed

during my visit; however, the center is yet to be utilized fully. I was informed that

the next harvesting season will mark the beginning of full utilization of the

processing center.

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- Farmers were concerned about marketing of their produce in order to fetch

higher prices in the market. They said that they sell their produce at local markets

at poor prices.

- The assessment of financial risk analysis couldn’t be performed at this time

because the processing center is not fully operational. However, it is worth

mentioning that the comprehensive memorandum of understanding (MOU)

between the investor and the cooperative society adequately addresses financial

risks.

- The center is in no operational risk at this time. The location of the processing

center is well-secured and it is in sound operating condition.

- The farmers are organized in 29 cooperative societies consisting of about 10

members each making it easier for dissemination of information and coordination

of such activities as; training, seeds-sourcing, and transportation of sesame

seeds to the center.

- The extension officer in-attendance pointed out that extension officers are

participating in the implementation of the project and have demonstration plots to

train farmers on Good Agricultural Practices (GAP). He said that they could do

more if they had sufficient funding.

4.1.1.1. Discussion of Findings

The issue of unavailability of seeds could easily be addressed through timely delivery of

information to farmers regarding how to register and use the GES scheme. This scheme

is already available nationwide and is geared towards availing affordable hybrid seeds

to farmers. The cooperative societies and the investors could play a major role in not

only coordinating activities and disseminating information to farmers, but also providing

loans or quality seeds on credit with the purpose of recovering the loans after farmers

harvest their produce. In addition to providing loans for seeds, cooperative societies

and/or investors can purchase tarpaulins to be loaned out to farmers for use during

drying of sesame seeds to prevent contamination.

It is encouraging to note that farmers are aware of the new farming practices that

address the aflatoxins issue; their level of awareness is attributed to the training they

received during the STDF Project 172. The extension officer, who was present at the

meeting acknowledged the need for continuous training and admitted that his team

could do more if they had sufficient funding to conduct more training exercises in more

areas within their jurisdiction. There is need for continued partnership between NEPC

and extension officers, with the help of other experts in the industry (such as NAFDAC

personnel), to ensure that extension officers, cooperative societies’ members, and

farmers are continually trained on GAP.

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4.1.2. Saki Shea-butter Processing Center

- The center is in sound operating condition as seen in the demonstration that was

performed during my visit. Just like the sesame seeds processing center, the

shea-butter processing center is yet to be fully utilized. The investor pointed out

that full operation of the center will commence at the end of the month (August,

2014).

- The investor pointed out that although she will start producing shea-butter at the

center in a few weeks, there are several improvements she needs to make in

order to bring the center to optimum operating condition to manufacture top

quality products – free of contamination. She specifically mentioned that she

needs to install water sterilization equipment because the water used at the site

is visibly unclean. She also floated the idea of installing air conditioner to regulate

room temperature and tiles to ease cleaning and prevent contamination.

- It is noteworthy that the investor is significantly involved in continuously training

the women who process shea-butter. She trains them mostly on hygiene and

best processing practices to achieve desired product quality. The women

appeared excited about the benefits of the processing center; in fact, I met two

women who had just joined the cooperative society because they are interested

in processing shea-butter at the center.

- The investor is planning to install a mobile laboratory at the center to help in

testing the product at different levels of processing.

- The following operational risks were noted;

o The location of the center is prone to flooding – proper drainage needs to

be done.

o There is a logistical issue in terms of bringing nuts from the hinterland to

the center. This may lead to delay in delivery of shea-nuts exposing the

nuts to contamination due to poor handling.

o The area surrounding the center is bushy during rainy season. If not

checked, the bushes may become fire hazards when they dry up or may

become breeding ground for contaminants.

- The analysis of financial risk couldn’t be done at this time because full operation

at the processing center has not begun. It is worth noting however, that the

investor is fully committed to, and passionate about the project in addition to her

desire to make a difference in the lives of the women there. Additionally, the

MOU addresses financial risks adequately.

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4.1.2.1. Discussion of Findings

Commencement of production at the processing center is very important because it is

only then, that the women groups would realize the full benefits of the project and the

investor would achieve economies of scale so as to be able to run the center

sustainably. It was clear during the visit that the center has a pull-factor effect and

women are getting involved in large numbers. Although the center is in proper operating

condition, the operational risks mentioned above should be addressed in a timely

manner to avoid disruptions when production begins.

The investor is doing a commendable job in continuously training the women on best

processing practices and hygiene. Since critical control points for aflatoxins begin at the

shea-nut collection point, more work needs to be done in continuously training shea-nut

collectors on best practices. The collectors, who go deeper into the hinterland to collect

shea-nuts, are men; the collection points are far and not easily accessible because of

massive undergrowth. There is need for continuous training and logistical support to

build capacity of the collectors which will subsequently increase the volume of

uncontaminated nuts. The knowledge of extension officers and their connection to the

collectors on the ground could be utilized to continuously monitor the implementation of

best practices.

5. Current market statistics & observations

Below are statistics representing the value of sesame seeds exported from Nigeria; to

various countries in the EU, USA, Turkey, and to other countries (Asia etc.) There is an

overall upward trend in the value of exports; for example, this year alone, the value (in

$) of exports for the first two quarters amount to almost the entire value of exports in

2012.

It is very clear that more EU countries imported sesame seeds from Nigeria in 2014

than in 2011, 2012, and 2013. I was not able to link the STDF 172 Project directly to the

recent positive trend of sesame seeds export from Nigeria however; the increase in

overall exports and more particularly exports to EU is a testimony that the produce is

increasingly meeting international standards.

NEPC has been working separately (outside the STDF project) to promote exportation

of sesame seeds and has been creating awareness and supporting farmers by

disseminating information on better methods of farming and supplying quality seeds.

See the export statistics on the next page:

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NIGERIA SESAME SEEDS EXPORT: 2011, 2012, 2013, 2014 (Q1 & Q2) in US$

COUNTRY 2011 2012 2013 2014 (Q1 & Q2)

Belgium 32,280

Croatia 35,550

Cyprus 50,400

France 53,994

Germany 2,768,879

4,974,691

11,790,414

8,395,111

Greece 8,170,525

Italy 133,650

701,793

1,668,073

Netherlands 2,436,375

6,199,420

19,501,094

13,557,097

Poland 2,605,471

Spain 26,513

43,174

174,060

379,723

TOTAL European Union

5,365,417

11,919,078

31,465,568

34,948,224

Others 124,802,761

163,143,609

126,937,460

135,446,199

USA 1,102,932

1,488,827

3,003,807

1,246,019

Turkey 68,354,890

77,854,486

109,362,165

77,638,558

Total Export 199,626,000

254,406,000

270,769,000

249,279,000

Source: Cobalt International Services Ltd. - compiled by NEPC Trade & Information Department

The above statistics were provided by the NEPC Trade and Information department.

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6. Recommendations

6.1. Model processing centers (Saki & Anyigba)

There is need to build success stories at the two model centers by impressing upon the

investors to start full utilization of these centers soon. Once the two centers are

operational and providing full economic benefits to the communities and the investors,

the local government and/or individual entrepreneurs would be willing to invest in

replicating the success stories elsewhere in the respective states. Therefore, it is

important for NEPC to continuously and closely work with the investors until the

processing centers are producing meaningful results.

6.2. Warehouse storage

Poor sesame seeds handling methods, especially after harvesting, contributes to a

larger extent to aflatoxins (B1, B2, G1, G2) contamination. Aflatoxins thrive well in an

environment where moisture content is high (about 7%) and temperature is elevated.

Proper storage of sesame seeds is very important in controlling the growth of fungi

hence the need for proper drying and storage facilities as soon as harvesting is done. It

is important to note that prior to storage, sesame seeds are exposed to high moisture

due to rains that occur harvesting time.

I recommend that a public-private partnership be utilized in sesame seed handling

especially starting at the point of harvest and extending to the point of storage. NEPC

can play a role of incentivizing entrepreneurs, who are driven by profit-making motive, to

establish their own temperature-controlled warehouse infrastructure. Alternatively,

NEPC can build its own warehouse infrastructure and recover the cost of building

warehouses by issuing licenses to vetted private investors, who would run the

warehouses in a sustainable manner. Apart from providing a solution to controlling

aflatoxin and other contaminants right from the base of the supply chain, the private

involvement would ensure long-term sustainability as a result of efficiency and hence

relieve NEPC to focus on other projects while maintaining an oversight role.

NEPC could also forge a public-private partnership with private investors, who would

invest in constructing large warehouses in strategic sesame seeds producing areas and

provide drying and cleaning services to farmers. These warehouses should be

registered to facilitate traceability and probably linked to the local or national

commodities exchange systems to enable farmers to have access to wider markets,

where they can fetch higher prices for their produce. Under this arrangement, farmers

could easily access finances by using Electronic Warehouse Receipts (e-WR) as

collateral.

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6.3. Laboratory and testing infrastructure

It is important to have laboratory services or portable contaminants and temperature

testing kits available to farmers at the point of harvest and storage to help in the

implementation of corrective measures at critical points. This will increase the analytical

capacity of all players in the value chain. Additionally, there needs to be inter-agency

collaboration in collecting data on lab results, aggregating these results, and feeding

them into a central database to help monitor progress and trigger response activities

where necessary.

6.4. Research & Development

Shea tree takes about 10 to 15 years to produce the first fruits and 20 to 30 years to

achieve full nut production potential. Because of the length of time it takes to realize the

full benefit of a given shea tree, it is imperative to preserve the already existing trees

and make concerted efforts to research the possibility of introducing new species that

mature sooner without altering the quality of the nuts produced.

In 1976, Cocoa Research Institute of Ghana (CRIG) established a research substation

whose aim was to research ways of improving shea tree yield for export and local

consumption. The research came up with the following discoveries2;

- Optimum yield of shea tree per hectare is achieved when shea trees are

planted at a spacing of 10 X 10 meters. This represents 100 trees per

hectare.

- Transplantation of shea butter tree seedlings from polythene bag sleeves

increases growth rate and reduces the time between initial growth and

transplantation.

- The use of bio-zyme, a bio-stimulant that enhances plant growth, stimulates

early maturation of shea butter.

- Surrogate grafting method results in the development of shea butter varieties

that are high yielding and that mature early.

- Natural regeneration of shea butter trees from old shea tree stumps reduces

fruition time to 7 years as opposed to between 12 and 15 years. It was noted

that bush fires and browsing animals hinder natural regeneration.

Ghana reckons that since the establishment the CRIG substation, shea-nut yield per

capita, per year has increased. The above information provides evidence that there is

need for Research & Development on Shea tree not only on its planting and processing,

but also on expanded commercial use of other shea tree parts.

2 http://www.solutions-site.org/node/110

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Additionally, it would be a nice idea to establish R & D partnership with the entire 19

countries that have shea trees across the savanna. This could be done by either

establishing a central research center to handle the research for the entire 19 countries

or establishing several research centers and coordinate research activities to allow for

knowledge sharing and technology transfer. It is evident that Ghana has made strides

towards extensive shea tree research – Nigeria can build on their knowledge base and

6.5. Organic Certification

As the market needs change, so should the products available to these dynamic

markets. Current market statistics show that there is growing demand for organic

products in the global market, more particularly in North America and Europe.

Research shows that US organic food market will grow by about 14% from 2013 to

20183. According to Transparency Market Research, organic personal care products

market will reach 13.2 billion by 2018 (a growth of about 9.6% from 2013). SPINS, Inc.,

the “provider of retail consumer insights, analytics reporting and consulting services for

the Natural, Organic and Specialty Products Industry” revealed that organic sales in US

achieved a milestone of $81.3 billion in 2012.

In the European Union (EU), organic food market growth rate hovers around 10% with;

Finland, Norway, and Netherlands recording over 10% growth year-to-year.

The above statistics clearly point out the opportunities available for the organic

produce/products in the coming years. The global market is developing towards

accepting more organic products because of the global awareness of the health benefits

of eating and using natural products. Shea butter for instance, grows naturally without

the use of fertilizer and pesticides; since Shea butter is used in Europe as an ingredient

that substitutes cocoa and is also used in beauty products.

Based on the foregoing information, it would be a good idea to seek organic certification

for shea-butter from Nigeria. Instead of building an organic certifying body from scratch,

it would be more economical to utilize globally recognized organic certifying bodies such

as ECOCERT to inspect and certify finished shea-butter products for export.

6.6. Building a culture of high-quality-expectation

There is need for all participants in the value chain to expect and deliver quality

product/produce. Contaminated food poses health risks to consumers; aflatoxins

causes cancer and stunted growth (in children).

3 http://www.foodnavigator-usa.com/Markets/US-organic-food-market-to-grow-14-from-2013-18

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It is important to run a continuous public awareness campaign to sensitize consumers

about the dangers of consuming aflatoxin contaminated food and the need for

consumers to purchase food from only those food brands that adhere to the existing

aflatoxin standards. The awareness would encourage food processing companies to

clean up the food chain by possibly backward integrating their businesses and/or

working with farmers or suppliers to influence farming and manufacturing processing

practices that would result in aflatoxin-free products. The public awareness campaign

should be fully supported by intensive and regular testing of food at every critical point

with the purpose of publicizing results and performing product recalls if necessary. In

addition, aflatoxin tests should be conducted regularly at local food grocery markets and

infected food disposed to encourage traders to adopt a habit of sourcing

uncontaminated food. As for the smallholder farmers, who practice subsistence farming

and sell their produce through the informal channels, there is need for capacity building

of agricultural extension officers, who would support these farmers on continuously

raising awareness about aflatoxin-free farming methods and guiding them incessantly.

6.7. Incentives for Good Agricultural Practices (GAP)

There needs to be meaningful incentives to encourage participants to engage in

aflatoxin control. Price differential gained from exporting quality products should trickle

down to the farmers, who play an important role in the initial handling of farm produce to

meet the required export standards. In the event that there is no price differential as a

result of good produce/product quality, I suggest that public agencies e.g. the ministry of

Agriculture or NEPC could provide monetary or non-monetary incentives to farmers,

through cooperatives, to trigger and encourage delivery of produce that is within the

required standards. It is obviously challenging to ask farmers to employ additional

measures, which may be costly, to rid their produce of contaminants yet they don’t see

any meaningful benefits to themselves. These farmers have probably known only one

way of processing shea butter or farming sesame seeds and changing their mindset

would require considerable motivation beyond just showing them new methods of

processing/farming.

The public sector needs to provide an enabling environment for local or multi-national

enterprises that participate in trading shea-nut or sesame seeds to engage farmers in

mutual relationships that extend beyond purchasing products from farmers and into

product development. These enterprises could play a role in supplying quality farm

inputs and materials as well as providing technical support and training to farmers as a

way of building capacity for achieving export-standard products.

On the other hand, measures need to be in place to reinforce GAP by discouraging

traders or processors from accepting the collection and delivery of poor quality produce

to local markets

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7. Possible areas of Partnership between NEPC and TEF

Below are three areas that NEPC and Tony Elumelu Foundation could partner to ensure

the continuity of implementing SPS interventions as a way of combating technical

barriers to trade of sesame seeds and shea-butter in Nigeria.

- Provision of access to warehouse storage infrastructure to sesame seeds

farmers in sesame seeds growing regions/sub-regions. This could be

packaged with mobile dryers (to dry the produce after harvest) and hand-held

laboratory gadgets (to test for contamination on sesame seeds at every

critical controls point before they get to the warehouse). The warehouse

storage link to the commodity exchange system would benefit farmers by

giving them access to better prices for their produce through open access to

global markets and access to loans through the use of electronic warehouse

receipt (e-WR).

- Continuous training program and technical advice support to cooperatives,

extension agents, and farmers on good agricultural practices (GAP) and on

good handling practices (GHP) purposely to eradicate contaminants.

Additionally, there is need to train the investors who manage the sesame

seeds and shea-butter processing centers on best management practices.

Baring in mind that these investors work directly with low-income farming

communities, training them on the platform of impact investing and corporate

social responsibility would be mutually beneficial to both.

- Provision of high quality seeds, in the case of sesame seeds, to farmers to

boost production and encourage farmers to participate more in the

implementation of the STDF 172 Project.

8. Lessons learnt

There is need for continuous capacity building, on improvement of aflatoxin

management practices, along the informal smallholder supply chain for local and

regional consumption as well as the formal large scale supply chain geared towards

global export.

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Bibliography

1. Cocoa Research Institute of Ghana (CRIG). 2007. Research and development of the Shea tree and its products. http://www.solutions-site.org/cat11_sol119.htm. (Accessed 7/15/2014)

2. http://www.cabi.org/Uploads/CABI/expertise/sps-working-paper-4.pdf (Accessed 7/15/2014)

3. http://www.ifpri.org/sites/default/files/publications/focus20_08.pdf (accessed 7/16/2014)

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Appendix 1

Questionnaires for shea-butter (they were also used for sesame seeds by

replacing key words)

Collectors & processors

1. What role do you play in the Shea butter value chain?

a) Collector_____________________

b) Processor____________________

2. In your opinion, did STDF 172 project (intervention) activities address the issues

of Free Fatty Acids (FFA) and impurities in Shea butter?

3. In your opinion, how was the project beneficial to;

a) The overall Nigerian Shea-butter industry?

b) Your cooperative/business in particular?

4. Did you participate in any workshops/training on the project subject matter during

and/or after the project completion?

If yes, which one(s)?

5. How beneficial were the workshops/courses to your understanding of improved

methods of collecting/processing Shea butter for export? Please explain.

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Were the workshops conducted according to your expectations or should they

have been conducted differently? How often should future workshops be done

and what is the most effective method - from your experience?

6. Are there topics/subjects/activities that the project should have provided more

information on?

7. Has the training influenced the way you collect/process Shea butter?

8. Did the project encourage private-public engagement and partnership in the

Nigeria Shea-butter sector

9. To what extent has the project influenced the economic, social, and cultural

aspects of the Shea-butter community? Please explain.

10. How has the membership of cooperative changed since the intervention? Has

there been increasing interest in the formation of new cooperative societies.

11. Please share your comments and suggestions on STDF 172 Project e.g. what

challenges do you face at the moment? What challenges do you anticipate in

future?

12. In your opinion, how beneficial is the shea-butter center what should be done to

ensure the sustainability of the processing centers?

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Buyers/licensed buying agents/investors

1. What role do you play in the Shea-butter production value chain?

a) Exporter_____________________

b) Buyer/licensed buying agent_______________

2. In your opinion, did STDF 172 project activities address the issues of aflatoxins/

Free Fatty Acids (FFA) and impurities in Shea butter?

3. In your opinion, how was the project beneficial to;

c) The overall Nigerian Shea butter industry?

d) Your business in particular?

4. Did you participate in any workshops/training regarding the project subject matter

during and/or after the project completion?

5. How beneficial were the workshops/courses to your understanding of improved

methods of collecting/processing Shea butter for export? Please explain.

Were the workshops conducted according to your expectations or could they

have been conducted differently? Please explain.

6. Are there topics/subjects/activities that the project should have provided more

information on?

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7. Has the training influenced the way you purchase/export/handle Shea butter?

8. Did the project encourage private-public engagement and partnership in the

Nigeria Shea-butter sector?

9. In your opinion, did the project encourage information sharing across all

participants in the value chain?

10. In what way/extent has the project influenced the economic, social, and cultural

aspects of the Shea-butter community? Please explain.

11. How has the intervention affected your revenue/returns, volume of inventory and

sales?

12. Please share your additional comments and suggestions on STDF 172 Project

intervention

13. In your opinion, how could sustainability be achieved?

Collaborating Institutions (NAFDAC/IITA/SON/NASPAN)

1. What role did you play in the STDF 172 Project?

2. In your opinion, did STDF 172 project activities address the issues of aflatoxins

in sesame seeds and Free Fatty Acids (FFA) and impurities in Shea butter

3. In your opinion, how was the project beneficial to;

a) The overall Nigerian Shea butter industry?

b) The intended beneficiaries in particular?

4. Did you facilitate workshops/training regarding food safety management system

along sesame seeds and Shea-butter value chain during and/or after the project

completion?

5. Are there topics/subjects/activities that the project should have covered or

continue to cover to provide continuous guidance more information on?

6. In your opinion, did the training influence the way the intended beneficiaries;

purchase/export/handle Shea butter?

7. In your opinion, did the project recommendations address diverse; production &

handling methods, supply chain structures, and focus target markets as may

have been exhibited in different regions?

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8. In what way or to what extent has the project influenced the economic, social,

and cultural aspects of the Shea-butter community? Please explain.

9. In your opinion, do you think extra measures/effort should have been put in place

to enhance the effectiveness and efficacy of the project activities to improve

results?

10. In your observation, were there time and/or budgetary challenges in the

implementation of certain project activities?

11. What areas/activities were very successful in addressing the existing gaps that

lead to higher levels of aflatoxins in sesame seeds and Free Fatty Acids (FFA)

and impurities in Shea-butter?

12. What areas/activities were least successful in addressing the existing gaps that

lead to higher levels of aflatoxins in sesame seeds and Free Fatty Acids (FFA)

and impurities in Shea-butter?

13. In your opinion, what is measurable impact did STDF 172 Project have on the

export of sesame seeds and Shea-butter?

14. What is your opinion on the long term sustainability of improvements made as a

result of the implementation of STDF 172 Project?

15. Please share your additional comments and suggestions on the STDF 172

Project