Background

The agricultural base of Bayelsa State is extremely rich. Food and tree crops like cassava, plantain, sugar cane, coconut, oil palm, raffia rapfia palm, African mango, rubber and seasonal food crops like maize and fruits, as well as timber, which are abundant locally and can provide sources of raw materials for allied industries. This defines the need for agro-industrial development that involves the utilization for these resources in cottage and large-scale industries to serve local needs, and also for export. Along these lines, the potential exists for the establishment of a variety of industries in the state.

Food Storage & Export

This offers the opportunity to store and preserve excess production, especially for seasonal crops that are perishable over short intervals of time but are in high demand for direct consumption and as raw material input in allied industries. In the fruiting period of seasonal crops, waste is inevitable as farmers race against time to dispose of their products. As much as this reduces the economic value of farmers’ produce, it also diminishes morale, puts a clamp on productivity and so affects the overall local food production industry.

The Bayelsa State Government, in its resolve to join the International Alliance Against Hunger, is interested in providing central storage facilities to cater for excess production in order to minimize losses by farmers. However, non is yet in place. Food storage and preservation facilities would open up avenues for intense activity in crop production and increase the opportunities for exportation of crops such as plantain, banana, pineapple, orange and grains, which are readily available. With a steady source of power in the state, there are no peculiar or insurmountable challenges to this investment option.

Beverage & Food Drinks

The fruit drink/juice industry can be supported by the increase production of various crops like pineapple, banana, pawpaw, African Mango, Cocoa, Maize and Coconut. Such industries are as yet non-existent in Bayelsa. Opportunities exist for small, medium, and large-scale investors in the industry.

Cassava Processing

Cassava is the source of garri, a staple food made of cassava flour. Almost every household in a rural areal has a cassava farm. In Bayelsa State, it is extensively grown in all the local government area, and serves also as a source for fufu (a starch-like food), starch, tapioca and farina. It is one of the major crops which the government is interested in development the encouraging investment in. local farmers are already benefiting from the government’s cassava commercialization programme, through the provision of planting materials available to cassava farmers.

The two major species of cassava produced in the state the bitter cassava and sweet cassava. However, the state’s Agricultural Development Progamme (ADP) is encouraging farmers to plant improved varieties, which also made available to them. With a cassava plant population of 10,000 plants per hectare, average yield of 15 – 25 tonnes per hectare and an estimated land cultivation rate of about 3 hectares per season per farmer, current cassava production in the state is enough to support local need and exports. With the government’s renewed effort in the cassava programme, where local farmers receive improved species and planting materials, production expected to accelerate. This would certainly drive the anticipated industrial revolution in cassava-based industries in the state.

Basically, every aspect of the processed tuber is useful, but derived utility is always limited by exhaustive processing due to the lack of adequate modern processing facilities. Cassava is useful as a raw material for a variety of products, and its abundance would support cottage and large scale industries throughout Bayelsa State. The following potentials may be developed :

Garri Processing

This would enhance the widespread production of garri for local consumption and for export, provide chips for food production and create employment opportunities. At present, traditional methods of processing cassava into garri are used, but takes two days. Virtually every households can produce garri from cassava using local means. The use of grating enginesto grind cassava tubers is the only mechanized aspect of the process; the squeeze-drying, sieving and frying aare manually done. These take time and inhibit large-scale production. A cassava processing facility would also produce fufu flour, which is an export product, especially in the West African sub-region.

Bayelsa State is a member of the Cassava Group in Nigeria. In 2003 the state government announced plans to establish cassava processing plants in the cassava belt. Some have been established, although non is yet established, this informs the need for investment in this area.

Starch Industry

Industry starch can be readily processed from cassava. This would served the needs of textile, drug and papare industries. No such industry is currently available in Bayelsa State, but one which could be sustained by the rich raw material base. This product could be branded for local need and for export. Ethanol can also be produced from cassava.

Sugar Industry

Intensive farming and abundant production of sugar cane in Bayelsa State provides investment opportunities for sugar production, for local consumption and export. Brown sugar is useful in food and industrial application, e.g. in brewing and pharmaceuticals. Industrial alcohol is also derivable from sugar can processing. At present sugar supplies to the state, and most of Nigeria are from imports. A local sugar factory sited economically advantageous. Non is available at present. Sugar cane harvested in local farms is distributed within the state and also collected at urban markets for sale to dealers.

Palm Oil Processing

The oil palm tree is the most ubiquitous crop in this part of Nigeria.  In Bayelsa State, wild groves of oil palm trees are the major source of edible oil.  Indeed, Bayelsa State is a major producer of oil palm/palm kernel in the country.  Government owned and small individual holding plantations are also available.  The abundance of this cash crop is a potential for investment in palm oil processing and allied industries in the state.

Palm Oil Mills

Palm oil processing mills would employ modern techniques for the commercial production of palm oil, palm kernel and kernel oil from the palm fruits. In some communities in Bayelsa State, the traditional methods of boiling and pounding to extract oil, and manual cracking of the nut to obtain the kernel are used. However the old screw-type hand-press device is still in use in small mills in most communities. Hence production is obviously limited. Large-scale production of palm oil requires modern tools and large capacity process in mills. The state government has installed a 10/20 tonne/hr oil mill to take care of the processing needs of its 1,000-hectare oil palm plantation in for investment in oil palm production as the mill’s capacity need at least over 50,000 hectares to satisfy capacity. This is a large capacity for exportation of processed oil palm products including palm oil (edible oil), palm kernel/kernel oil. But would also be lucrative to employ them as raw materials for the production of high-demand products.

Palm Oil Associated Industries

Large-scale availability of palm oil and kernel is an attractive potential for investment in the production in the production of Vegetable Oil, Detergents and Soaps. The ban on importation of all classes of soaps in the country in January, 2004 creates opportunities for investment in this area, such as cream, pomade, industrial oils and industrial alcohol Crushed kernel provides feed extract for fish and poultry farming. Non of such industries presently exist in Bayelsa State despite the large consumer market.

Coconut Processing & Export

Coconut is moderately grown in homesteads in most parts of Bayelsa State; but most commonly in the Nembe and Yenagoa area. It is also cultivated in plantations and dispersed naturally by water; hence it grows in most riverine areas and beaches. The coconut fruit is consumed locally and used for export. Its concentration in Bayelsa State provides investment opportunities in lowing areas: the development of coconut plantations; confecting industry; production of coconut-flavored confectioneries; cosmetic industry, the production of cream, soaps and oils; export of processed products/coconut fruits. By-products of coconut processing can also be used for feed in agriculture and poultry farming. Presently, the coconut fruit is yet to be utilized in any of these ways in Bayelsa or neighouring states.

Rubber Processing

Rubber tree are commonly found in Bayelsa State, with plantation mostly based in the Ogbia and Sagbama regions. The lack of industrial demand for rubber in Bayelsa State has had a negative impact on rubber cultivation. However the current situation provides opportunities for investment in: the development of rubber plantation; rubber processing factories for production of latex and glue for the wood, paper, leather products and allied industries. Rubber seed oil is used in soap and paint manufacturing, for production of soap, liquid soap and alkyd resins for paint making. Rubber seed cake is useful as protein substitute in animal rations, especially in poultry.

In the meantime, latex tapped from plantations in Bayelsa is sold for industrial use in rubber processing factories in the neighouring Delta State. A local rubber factory would have a steady source of raw materials within Bayelsa State.