Business & Investment

How GB Foods Create Value with Agric Using Backward Integration

Poverty remains a major socio-economic problem in a world where countries strive to promote human capital development. Because of this challenge, the United Nations has made poverty eradication the first sustainable development goal to be achieved by 2030.

While some progress has been made in the fight against poverty, the Covid 19 pandemic has caused a setback due to the blockade, affecting the downward spiral of income for many.

The World Bank estimates that 88 to 115 million people have fallen into poverty, mainly in South Asia and sub-Saharan countries, as a result of the COVID-19 pandemic. The United Nations recognizes poverty as a violation of human rights and has declared on October 17th each year that it will comply with International Day for the Eradication of Poverty. A day dedicated to presenting and promoting poverty and the eradication of poverty.

This year’s theme is “Going Together: Ending Persistent Poverty and Respecting All People and Our Planet.” This approach aims to transform the relationship between humans and nature while discouraging discrimination against the poor. It also means building on the moral and legal framework of human rights and putting dignity at the center of our actions.

In the process of moving forward, those living in poverty will be encouraged, supported and involved in decision-making for collective progress. Beyond the economic aspects of things, they are rich in knowledge, positive energy and wit for the growth of communities and societies.

Over the years, the Nigerian government has endeavored to eradicate poverty. The National Poverty Reduction Program (NAPEP) was established in 2001 as an alternative to the Poverty Reduction Program (PAP), which was established a year ago. Since its inception, NAPEP has provided skills and training for independence through collaboration with various institutions and organizations. But more needs to be done to eradicate Nigeria’s poverty.

The National Bureau of Statistics, based on the 2019 Poverty and Inequality Report in Nigeria, emphasizes that 40% of Nigeria’s population is below the country’s $ 381.75 annual poverty line.

To improve poverty eradication, the government has diversified its focus on other sectors besides oil and gas to generate income. By expanding into the agricultural sector, citizens can create income and human capacity potential through subsistence agriculture and commercial agriculture.

At the self-sufficient level, families can meet their dietary needs, regardless of income, and save money for other necessities. At the commercial level, governments continue to create an environment to drive growth and sales by partnering with private organizations to drive development.

As one of the largest food brands in Africa GB Foods By empowering farmers in different communities, it remains at the forefront of celebrating the growth of indigenous peoples of agriculture. Through effective and sustainable cooperation with the government and other stakeholders, the company continues to take steps to eradicate poverty among farmers and other grassroots community members through backward integration.

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In 2017, the federal government implemented measures aimed at blocking imports by raising tariffs on tomato concentrates from 5% to 50% and taxing $ 1,500 per ton. The government will also increase the value of the tomato chain from the growing stage to the harvest, in line with economic diversification plans, and help farmers produce fresh tomatoes for local industry and foreign exchange income. Draft Code of Conduct.

The federal government recently amended this policy, which consists of supplementary safeguards to implement the ECOWAS Common External Tariff, from September 6 and will be available for retail sale with a 10% tariff rate and a 20% IAT tax. Limited to a national supply gap by investors / processors with a verifiable backward integration program (BIP) for imports of tomatoes that are not.

GBFoods remains the most BIP-compliant organization and strives to promote a comprehensive value chain. Having seen some of the challenges of previous policy, the government has modified it to further boost stakeholder growth.

Through backward integration, GBFoods has installed cost-effective and reliable production equipment. There is room for a larger platform and more people with lower executives can be involved in the production process, so there is a way to get stable jobs on the road to poverty eradication. In order for farmers to profit effectively, it is appropriate that there must be a sustainable value chain that affects production. This should be a way for the average farmer to absorb the solution.

“To improve the value and supply chain of this sector, it is important to prioritize backward integration to solve some indigenous production, growth and pricing challenges. At GBFoods, farmers and consumers This is a major step in the fight against poverty eradication and the need to empower grassroots women. GB Foods Corporate Affairs Director Teddy Ngu said we are In the communities in which they operate, women are very active and continue to incorporate our opinions and enable them to acquire their own companies and take ownership.

The Federal Government of Nigeria also sees backward integration as an important pillar of job creation and poverty eradication. In the tomato sector, the government has developed a tomato policy that encourages the use of growers and grows tomatoes on farms owned by sector players. GBFoods has been very supportive of this policy … and in the words of Dr. Vincent Egbe of GBFoods in Nigeria, GBFoods is most compliant with the government’s tomato policy through its integrated farms and factories in Kebbi. I am.

Nigerians may recall that in 2020, GB Foods worked with the Central Bank of Nigeria, the Government of Kebbi, and the Emirate of Yawley to build a 20 billion N tomato processing plant. The Fresh Tomato Processing Plant is one of the largest plants in Africa and the only fully backward integrated plant in the sub-Saharan African region. The project has created more than 1,000 jobs for grassroots people, including farmers, factory workers and construction workers.

In addition, smallholders were engaged as outsiders from the company. They were also trained in good practices and equipped with seedlings, pesticides and other agricultural essentials to improve capacity and productivity.

The ability to create opportunities for growth rather than importing produce allows more farmers and other workers to become more competent and productive and guide resources for economic growth. You can access the knowledge to do. We also encourage members of the community in which GB Foods operates to have a sense of belonging and build together. This will be of great help in the fight for poverty eradication. GB Foods’ three bosses.

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How GB Foods Create Value with Agric Using Backward Integration

https://businessday.ng/features/article/poverty-eradication-in-nigeria-how-gbfoods-creates-value-in-agric-using-backward-integration/ How GB Foods Create Value with Agric Using Backward Integration

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