BLOG

Adewale Balogun: “Opportunities are limitless in Nigeria”

22 December 20148 min reading

The grain and flour industries in Nigeria are thriving. Like I mentioned earlier on, the production capacity is still not sufficient for the entire consuming populace. We intend to expand and take advantage of key opportunities available in the Nigeria market. Grain processing and milling is the next focus of our organization. Hopefully by the first quarter of 2015, we shall commence fully, both equipment procurement and other systems for successful implementations and operations for best practices.

Balogun Balinga Enterprises Nig Ltd is one of the foremost agricultural product supply company in Nigeria. As CEO of the firm providing lots of food products from cocoa, soya beans and sorghum to ginger, cotton seed and wheat in both national and foreign companies, Adewale BALOGUN states that the market in Nigeria has lots of opportunities; so they have investment plans about grain processing in association with agricultural production. Having an investment plan about grain processing in the first quarter of 2015, BALOGUN said: “Grain processing and milling is the next focus of our organization. By the first quarter of 2015, we shall commence fully, both equipment procurement and other systems for successful implementations and operations for best practices.” Adewale BALOGUN stating: “Nigeria is a very large market, the opportunities are limitless” replied the questions of our magazine. Mr. Balogun, firstly could you please give us some information on your company Balinga Enterprises Nigeria Limited? As we know you make grain, pulses and seed trade. Could you give us information on the varieties and especially grain varieties and their properties? We are Balinga Enterprises Nig Ltd, one of the foremost agricultural product supply company here in Nigeria with registration number RC: 31498 we are incorporated since 1981 and since then we have been playing a major role in the industry supplying agricultural products to both national and foreign companies, amongst the numerous supply are: • Cocoa • Soya Beans • Soya Meal • Sesame Seed • Shea Nut • Kola Nuts • Cashew Nuts • Sorghum • Maize • Millet • Ginger • Garlic • Hibiscus flower • Cotton Seed • Wheat Should anyone be interested in buying any of the above stated commodities of Nigeria origin we will be glad to do mutually beneficial business with your company. Meanwhile you can verify the existence of our company through (Corporate Affairs Commission) in Nigeria which is responsible for companies’ registration in Nigeria through our registration number; also we are a member of Nigeria Export Promotion Council (NEPC). Do you obtain all the grains that you trade from domestic market? If you do, could you please give information on the products that you import and the countries from which you prefer to import? Yes, we do purchase our grains from the domestic market. Likewise we import some grains to cope with the volume of demand of our various clients once our local market is in short supply. Taking advantage of the trade agreements between ECOWAS states, preferably we import majorly from Republic of Benin, Togo and at times Chad republic and Burkina Faso. The products we import to complement our local demands are Soya beans, Cotton seed both from republic of Benin and Togo, so also Sesame seed from Chad republic and Burkina Faso. Importing this products does not mean we do not grow them here in Nigeria, we have them in abundance but the demands for this products far outweighs its availability and supply, as a result, the cost of purchase becomes astronomical. Our import is just a stop gap concept, to acquire and sell at a reasonable price, most times better than the local price obtainable. Are you working only for the domestic market in grain trade? Do you have any export activities? If you have, could you please give information on the regions and countries to which you make export? We sell in the domestic market and as well export all year round depending on the season and produce. Our clients are in Asia, Middle East and Europe, but for the sake of confidentiality of our clients, I would not like to disclose names, but we do export on a regular basis even as far as Israel, China and India so also some West African Countries such as Benin, Togo, we also export to South Africa. What is the position of your country in the grain trade of your region? What would you like to say on the market share you have in your country and regions to which you make export and also on the effectiveness of your company? Nigerian is the highest producer and consumer of grains in Africa, our major export outside crude Oil is agricultural produce, considering our vast expanse of arable land, coupled with varieties of exportable agricultural produce and the work force of over one hundred and seventy million people, this had made Nigeria a potential market, not just on export but also import, the opportunities abound coupled with the present Government tireless effort on economic diversification from crude oil. Structures are in place to encourage exporters. Balinga Enterprises is now moving from an exporter of raw produce only to value addition to this materials been exported, a move which had been highly commended by the Government, we are in top discussion with the Bank of Industries on expansion and acquisition of modern day equipments for production to ensure our produce conforms with global standard, an attribute we gladly pride ourselves. What kind of grains are produced and demanded mostly in your country or in the regions generally you work for? Nigeria is a very large market, the opportunities are limitless, we produce and consume majority of our grains, even without export, a local supplier can never run out of business, so there are boundless opportunities in the agric sector for local consumption and as well as export. Here is some of the list of grains produced and demanded for: Millet, Sorghum, Maize, Rice, Wheat, Barley, and Oats Besides grain trade, do you have any other activities on grain processing and milling? If you have, could you please tell us about your activities? Grain processing and milling is the next focus of our organization and hopefully by the first quarter of 2015, we shall commence fully, both equipments procurement and other systems for successful implementations and operations for best practices. We presently mill with locally produce machinery, output is low considering time input, requires a lot of human intervention and it is completely manual. We are also looking at implementing a modern day grain storage systems also. Could you please give information also on the grain processing or flour industry in your country, consumption habits of your people? What can you say on the grain processing companies’ usage of technology, production amount, quality and consumption? The grain and flour industries in Nigeria are thriving, like I mentioned earlier on, the production capacity is still not sufficient for the entire consuming populace, so we depend on import to fill the vacuum, a move which the Nigerian Government does not support in order to encourage the local producers of flour, such imports are contraband as the Government had ban importation of such items, but the demand for flour far exceed its supply, which creates a booming market for the importers of flour though it’s a contraband on the Government list. Regarding quality, the companies that produce flour are global brands, such as Dangote Flour, HoneyWell Flour, and the list goes on. The issue of quality is non-negotiable, coupled with the watchful eyes of Nigeria Food and Drugs Administration and Control (NAFDAC), a regulating body for all food and drugs producing companies. The quality is of an international standard. As Balinga Enterprises Nigeria Limited, what is your investment and market target about the future? What do you want to do in order to increase your efficiency in your region? We intend to expand and take advantage of key opportunities available in the Nigeria market which there had been little service provision, this opportunity are in the edible oil section, 80% of edible oil are been imported into Nigeria, we intend to produce oil made from soya beans and cotton seed and sell to the public, likewise the residue of Soya bean and Cotton seed which is Soya meal and Cotton seed meal is also a source of income as it will be sold as Animal feed, which even the cost of soya meal is far more expensive than the Soya beans itself. We equally have a unit that is saddled with the responsibility of processing Shea nut to Shea butter for both local consumers and as export, also processing Cocoa, selling its constituent; Cocoa Butter and Powder. In Nigeria, this is a lucrative business which the gap had not been filled since the 1960’s majority of the companies that consume this products such as (Nestle, Cadbury) and so on depends on import for 80% of the goods to match up with their production, this are some of the markets we intend to key into and as well the export potentials of this aforementioned produce is limitless
Articles in Interview Category
14 September 20156 min reading

ABITRIGO, Sergio AMARAL: “There is a great room for wheat products consumption in Brazil”

“We estimate that there will be continuity in development of milling industry; because every day th...

04 May 201514 min reading

The Minister of Food, Agriculture and Livestock, M. Mehdi EKER: “The ministry reached the target in grain and pulses”

Stating, “The developments for grain and pulses production and trade have achieved the target durin...

09 November 20177 min reading

“We produce 60% of Palestine’s flour”

Abdelhafez Awad, Al Salam Mills CEO: “We have established our own millers in 2002 and since then we...