RE-ENGINEERING THE LIVESTOCK INDUSTRY IN SOURTHERN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Livestock farming is the science of the practice of rearing animals. The individuals that indulge in animal farming are called livestock farmers. A livestock farmer needs to know how to rear his or her animals and birds and he or she is involved in animal husbandry and how to tend his or her livestock. Many firms consist of several different sections, each devoted to the production of one kind of livestock or the other. These sections of the livestock firm are known as enterprises (Upton and Anthonio, 2005).

Every livestock farmer must face the management problems of deciding which enterprise to have, how much to produce in each enterprise and what methods to use. In the past, advisory work among livestock farmers has been almost entirely concentrated upon the technical problems of producing different types of livestock. Now, it  is realized that improvement in the livestock farming needs technical knowledge should go hand in hand with the development of the managerial ability. Livestock Farm Management is now an important part of the study of agriculture.

Nigeria as a nation got her independence in 1960. Animal husbandry and agronomy making up agriculture were the mainstay of the economy. Between 1952 and 1953 before independence, agriculture’s contribution to the Gross Domestic Product of Nigeria was

66.2%, industry 10.5%, services 18.90% and government 4.5%. In 1960, agricultural contribution to the Gross Domestic Product went up by about 3% (International Bank for Reconstruction and Development (I.B.R.D, 1960).

In 1951, the First Exploration Well was drilled by Shell D’Arcy in Ihuo. In January 1956, the first successful crude oil well was drilled by Shell D’Arcy. In February 1958, the First shipment of crude oil was made from Nigeria. In April, 1973, The Federal Government of Nigeria made the first participation agreement and acquired 50% participation in Shell- B.P. leases and in the 1970s, there was a decline in the contribution of agriculture to the Gross National Product of Nigeria. The economy has since been dependent on crude oil and gas (Shell Petroleum Development of Nigeria Limited (S.P.D.C., 2002).

However, Meadley (1978) is of the view that livestock farming and agriculture in general will remain the economic base of nearly all the countries that constitute West African Farming. West African livestock farming will remain the source of livelihood for the majority of the population. Even Nigeria with its vast oil wealth must expand its livestock agricultural production just to feed its rapidly growing population and to meet the protein need of the people (Meadley, 1978) which is now put at N140 million.

The importance of livestock agriculture is widely recognized. Vast sums of money are being invested in livestock agriculture; much comes from the development agencies as grants and loans. There is a small amount of commercial investment and substantial credit to suppliers. The central banks of West African countries have agricultural finance departments. The countries have agricultural development banks. The commercial banks also grant credit to agriculture. However, this investment is not reflected in a market increase in livestock agricultural production.

It is only recently that the growing awareness of the role of livestock agriculture in the economic development of Nigeria has prompted various governments in the country to intensify efforts aimed at transforming livestock agriculture from its present subsistence level to a market-oriented production. There has been a number of policies, measures and programmes within the last two decades which involve the reconstruction or reformation of the whole structure of the livestock agricultural sector by the creation of appropriate institutions and public  services designed to  strengthen the economic position of the independent farmer. These measures and programmes are as discussed below:

Table 1.1 shows the measures and programmes of the agricultural sector in Nigeria from

1973 till date.

Table 1.1: The Measures and Programmes of the Agricultural sector in Nigeria

from 1973 till date

1	The establishment of the National Food Production Project (NAFPP) in 1973
2	The founding of the Nigerian Agricultural and Cooperative Bank (N.A.C.B.)   in April, 1973
3	The establishment of the Sokoto Rima Basin (for Sokoto) and the Chad Basin   Development (for Borno) Authorities in 1973
4	The  establishment  of  11  other  River  Basin  Development  Authorities   including the lower Basin (for Benue and Plateau), the Cross River for (Cross River), the Anambra-Imo (for Imo and Anambra, the Niger for (Kaduna, Niger and Kwara, the Ogun-Oshun for (Oyo, Osun and Lagos) the Benin- Owena (for Bendel and Ondo and Niger Delta (for Rivers) under Decree Nos 25 and 31 of 1976 and 1977.
5	The launching of Operation Feed the Nation in May, 1976
6	The launching of Agricultural Credit Guarantee Scheme in 1977.
7	The launching of the Green Revolution Programme in 1980
8	The establishment of the Agricultural Development Projects in 1974
9	The establishment of the National Agricultural Land Development Authority   in 1991.
10	The  Merging  of  Peoples  Bank,  Nigerian  Agricultural  and  Corporation   Development Bank and Nigerian Bank of Commerce and Industry in 2005, which is operating till date.
11	Federal Government Poverty Alleviation Through Agriculture in 2006.
12	Edo State Return to Farm Programme in 2007
13	Youth Empowerment Through Agriculture (YETA) initiated by Delta State   Government in 2008 – 2009.

Source: Anyanwu, J.C,  Oyefusi,  A,  Oaikhenan,  H.,  and  Dimowo, F.A.  (2010). The

Structure of the Nigerian Economy (1960 – 2010) Onitsha: Joance Educational Publishers

Limited, Pages 21 – 30.

From Table 1.1, it is shown that a lot of measures and programmes have been undertaken by the Federal Government to increase agricultural production between 1973 till date.

1.2      STATEMENT OF THE PROBLEM

Agriculture involves the  cultivation of land, raising  and  rearing of animals,  for the purpose of production of food for man, feed for animals and raw materials for industries. It involves cropping, livestock production, forestry, fishery, processing and marketing of these agricultural products. The role of livestock agriculture in transforming both the social and economic framework of an economy cannot be over-emphasized. It is a source of food and raw materials for the industrial sector. It is also essential for expansion of employment opportunity, for reduction of poverty and improvement of income distribution, for speeding up  industrialization and easing the pressure on balance of payments. In effect, it has been the main source of gainful employment, from which the nation can feed its teeming population, a regenerative, providing the nation’s industries with local raw materials and as a reliable source of government revenue (Anyanwu, et al,

1997).

The  agricultural sector  in  the  Nigerian context  embraces  all  the  sub-sectors of the

‘primary industry’. They include farming (which includes livestock rearing), fishing, and forestry.  Productivity is  still  very low  due  to the  inadequate application of modern technological advancements and farm inputs to improve quality and market value of the livestock implements such as tractors and chemicals.

Shifting cultivation which has perhaps almost completely disappeared in most parts of the world is still widely practiced by peasant farmers. This is due to fragmentation of farm holdings. Livestock farming which is predominantly practiced in the North is undertaken by large numbers of cattle Fulanis. These cattle Fulanis wander from place to place in search of good pasture for their cattle, especially in the dry season. Fishing is carried on along the coast by many fishermen who use canoes and throw-nets.

This structure of livestock agriculture in particular  and agriculture in general makes it laborious, tedious and poorly remunerative. These fragmentations make it difficult for the

farmers to have any strong case to support their applications for bank loans. The intention here  is  to  provide  a  background to  our  understanding of the  present  structure  and performance of livestock agriculture in the agricultural sector towards the economic development of Nigeria.

Before the colonial era, rural Nigeria had  fairly complex organization. These social organizations were predominantly peasant communities, producing a variety of commodities mostly to satisfy their needs with little surpluses for exchange with other communities. However, expansion and globalization through trading among the various communities, countries, and boarders have vastly improved livestock farming at the short and long run analysis, leading to constant and continuous decrease in protein level which is a major problem in the annals of a developing country like Nigeria.

1.3      OBJECTIVES OF THE STUDY

The objectives include:

(1)       To evaluate the extent to which the re-thinking of the business processes in the livestock industry in the areas understudy influences the performance of the industry;

(2)       To  analyze  whether  the  benefits  of  modern  technology  will  be  more acceptable than capacity building in the livestock industry;

(3)       To  analyze  the  factors responsible for  poor  performance in  the  livestock industry;

(4)      To identify the various publics that will benefit from implementing re- engineering processes in the livestock industry in the areas understudy.

1.4      RESEARCH QUESTIONS

The researcher is going to attempt to provide answers to the following questions:

1.         To what extent does the re-thinking of the business processes in the livestock industry in the areas understudy influence the performance of the industry?

2.         Will the  benefits of modern techniques be  more acceptable than capacity building in the livestock industry?

3.         What are the factors of performance in the livestock industry that have led to the poor performance?

4.         Who  are  the  various  publics  that  will  benefit  from  implementing  re- engineering processes in the livestock industry in the  areas understudy?

1.5      RESEARCH HYPOTHESES

The following hypotheses are to be tested in this study:

(1)       If business processes to be used in re-designing and the re-thinking in the livestock industry in Edo, Delta, Enugu and Anambra states will positively influence the performance in the industry to a significant level;

(2)       Adoption of modern technology is more acceptable than capacity building in the livestock industry;

(3)       Use of outdated and obsolete equipment has led to poor performance of the livestock industry than any other factors;

(4)       Whether benefits will accrue to both the industry and consumers of livestock, will be higher.

The objectives, research questions and hypotheses are to be handled by the use of the likert  scale  model.  If  it  stands  up  to  data  that  the  problems  are  either  financial, production, marketing material resources or human resource management in nature, then solutions can be proferred accordingly.

1.6      SIGNIFICANCE OF THE STUDY

The managers and owners of livestock firms will benefit by the re-engineering of the business  processes  so  that  their  profitability  and  other  performance  variables  will improve. This will be the same for managers and owners of livestock feed farms and prospective and present owners of livestock farming business firms. Veterinary doctors and animal scientists who earn their living by working on livestock when they are sick and not sick will benefit because they will now have more animals to work on and so they will be busier. Researchers and Students of Veterinary Medicine, Animal Science, Engineering, Agricultural Engineering, Food Science, Organizational Behaviour, Human Resource  Management,  Management  and  Business  Administration  will  also  benefit

because they would have a lot more to find out what is happening in the re-engineering phenomena.

1.7      AREA OF THE STUDY

Edo, Delta, Anambra and Enugu States in Nigeria were covered geographically for the distribution of the livestock industry. Ewu Feed Mill Irrua, Edo State; Livestock Industry Sapele Road in Benin City, Edo State; Songhai Amukpe Sapele in Delta State, Agricultural Development  Programme (ADP) Ibusa in Delta State; Ifeoma Agricultural Farms, Ngwo in Enugu State; Adani Farm Settlement in Enugu State; Igbariam Farm Settlement Otuocha in Anambra State; and Ekene Dili Chukwu Farms Amaku, Onitsha in Anambra State. All the other 32 states in Nigeria are not to be covered.

1.8      SCOPE OF THE STUDY

The study will only evaluate the extent to which the rethinking of the business processes, the benefits of modern technology and the various publics will be able to enhance the performance and the capacity building in the industry.

1.9      LIMITATIONS OF THE STUDY

Reluctance: The work has the limitation that some respondents are reluctant to give answers to survey probes.

Change of situation: The oral interview has the limitation that the situation may change from one occasion to another especially if more than one field data collector is used. Motivation: There is also a problem of motivating the subject and beyond it. Abstraction: A model has the limitation that it is only a representation or abstraction of the real situation and so the intuition and judgement of the managers must come in to play. Sampling has a limitation that there is always an error.

Scarcity of Time and Money: There is also a limitation of the scarcity of time and money resources and natural knowledge.

1.10    DEFINITIONS OF KEY TERMS

Re-engineering: This is the re-thinking and re-designing the business processes of a firm or group of firms to improve their performance (Ezigbo, 2007).

Livestock industry: This refers to a group of firms that produce animal products: inputs, machines and outputs for resale (Upton and Anthonio, 2005).

Performance: This refers to the extent to which a firm or group of firms have achieved their objectives (Osaze and Anao, 1989).

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