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Cablegate: Nigeria: Binational Commission Food Security And

VZCZCXYZ0009
PP RUEHWEB

DE RUEHUJA #2141/01 3291133
ZNR UUUUU ZZH (CCY ADE0550C MSI5219-695)
P 251133Z NOV 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 7587
INFO RUEHOS/AMCONSUL LAGOS 2370
RUEHLO/AMEMBASSY LONDON 0630
RHMFISS/HQ USAFRICOM STUTTGART GE
RUEHZO/AFRICAN UNION COLLECTIVE
RUEHZK/ECOWAS COLLECTIVE
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RUCLRFA/USDA WASHINGTON DC
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS ABUJA 002141
SENSITIVE
SIPDIS
C O R R E C T E D COPY CAPTION
STATE FOR AF/FO, AF/W, AF/RSA, DRL, INR/AA, S/CIEA, AF/PDPA
DEPARTMENT PASS TO USAID FOR AFR/WA (DALZOUMA)
USDA FOR FAS/OCBD/PATRICA SHEIKH

E.O. 12958: N/A
TAGS: PGOV PREL PHUM PINS PTER KDEM NI

SUBJECT: NIGERIA: BINATIONAL COMMISSION FOOD SECURITY AND
AGRICULTURE WORKING GROUP

REF: (A) ABUJA 2016
(B) ABUJA 2046
(C) ABUJA 2052

1. (SBU) Mission Nigeria has met several times since March 2009 to
discuss initiatives to increase reliable access to food in Nigeria
and the region through improvements in agriculture and trade policy.
We understand that the goals of the Binational Commission's Food
Security and Agriculture Working Group are to improve access to
agriculture inputs, processing, and post harvest storage facilities
that increase income of farmers, processors, and transporters; work
together to improve regional agricultural trade; and improve
harmonization of regional trade policies. In addition, our efforts
on food security will promote partnerships among Nigerian agencies
and institutions, and U.S. policy research institutions, including
agricultural research universities, and advance Millennium
Development Goals (MDG). The Mission is providing game plans for
each of the proposed BNC working groups. Reftels contain Mission
game plans for the BNC Working Groups on Energy and Investment,
Niger Delta and Regional Security Cooperation and the proposed
Government, Transparency and Integrity (GTI) focused areas of
election reform and anti-corruption. We understand that the BNC
themes are still being discussed in Washington; therefore the themes
in the game plans can be recast accordingly once there is a final
decision. End Summary.

----------
BACKGROUND
----------

2. (SBU) For FY 2009, the USG is supporting a $25 million Global
Food Security Response (GFSR) program to assist the Government of
Nigeria (GON) and the private agriculture sector to: 1) double
agricultural productivity and expand the market supply of essential
staple food crops; and 2) remove constraints to the movement of
staple crops within Nigeria and throughout the wider region. The FY
2009 program supports the Ministry of Agriculture and Water
Resources (MAWR) to implement key elements of its National Food
Security Program. GFSR is a three-pronged integrated package to
Increase Agricultural Productivity; Reduce Trade, Transport and
Supply Chain Bottlenecks; and Promote Sound Market-Based Principles.
This program directly supports the African Union's New Partnership
for Africa's Development and Nigeria's Comprehensive Africa
Agriculture Development Program (CAADP).


--------------------------------------------- -------
CURRENT USG AGRICULTURE AND FOOD SECURITY ACTIVITIES
--------------------------------------------- -------

3. (SBU) Through an on-going technical assistance and training
program with farmers, processors, and GON officials, the USG seeks
to increase productivity and market development of rice, sorghum,
millet, maize and cassava value chains. The program will help over
200,000 farmers and processors create 100,000 jobs, generate $190
million in revenues, leverage $23 million in credit, improve the
transportation environment, and strengthen trade and agriculture
policy. The current specific areas of focus and related activities
are:

4. (SBU) Increasing Agricultural Productivity: USG implementing
partner (MARKETS) is helping 215,000 farmers and processors gain
Qpartner (MARKETS) is helping 215,000 farmers and processors gain
improved technologies, management practices and processing options,
increasing yields by an average of 26% to 50% and generating gross
on- and off-farm income exceeding $40 million. This is being
achieved by: 1) improving access to science and technology
particularly for seeds, fertilizer, and new cultivation practices;
2) enhancing resource management and irrigation for an integrated
rice value chain program; and 3) developing agroprocessing capacity
by working with agri-business partners in the core food crops, and
forming commercial linkages with organized smallholder farmers and
producer groups. The USG is helping to strengthen cooperatives
through technical exchanges and has developed public-private
partnerships with international research institutes, the West Africa
Seed Alliance and the Gates Foundation, amongst others.

5. (SBU) Reduced Trade, Transport and Supply Chain Bottlenecks: The

USG is providing technical assistance and training to the GON
(National Customs Service, the Ministry of Commerce and Industry,
and Ministry of Transportation), shippers, and transporters to
reduce costs of trade and transportation; reduce transit times to
trade staple crops; link 50,000 producers with improved private
sector distribution, processing and storage; strengthen the capacity
of agribusiness partners to expand and diversify final product
markets; and improve marketing and food distribution to consumers.
The USG is assisting the GON to develop post-harvest storage
facilities. The USG will mobilize $7 million in new commercial
credit for firms and farmers.

6. (SBU) Promoting Sound Market-Based Principles: The USG provided
experts and training, organized stakeholder meetings, and conducted
research to help the GON host a CAADP roundtable and develop a CAADP
compact (October 2009). The USG is funding a Senior Agriculture
Policy Advisor and in-depth analysis jointly with the Ministry of
Agriculture and Water Resources and Nigerian policy research groups
and is providing assistance to build MAWR capacity in agriculture
statistics.


--------------------------------------------- --------
PROPOSED USG AGRICULTURE AND FOOD SECURITY ACTIVITIES
--------------------------------------------- --------

7. (SBU) The U.S. Mission is proposing a $32.75 million FY 2010
Global Health and Food Security Program called the Agriculture
Transformation Program (ATP) for Nigeria. ATP expands the FY 2009
GFSR Program and supports the GON's implementation of the CAADP and
the new GON Five-Point Plan for Agriculture. The FY 2010 program is
a four-pronged package to Increase Agricultural Productivity; Reduce
Trade, Transport and Supply Chain Bottlenecks; Promote Sound
Market-Based Principles; and Accelerate the Participation of the
Very Poor in Market Economies. The FY 2010 program will build our
current efforts and the GON capacity for a significantly larger
program starting in FY 2011.

8. (SBU) The FY 2010 program will significantly expand the current
program. The objectives of the FY 2010 program are to:
--Increase agricultural productivity by 50-75% for key commodities
in 10 states;
--Increase incomes of 750,000 processors, and shippers by $90 per
year over two years;
--Expand domestic and regional market supply of essential foods by
900,000 tons per year;
--Improve the policy environment for agriculture development and
West African regional trade; and
--Build the capacity of the public and private sector for a larger
transformational program in the framework of CAADP. Specific areas
of focus and activities that will be implemented as follows:

9. (SBU) Increase Agricultural Productivity: Technical assistance,
training, and development of public private partnerships will assist
farmers and processors to increase productivity and sales of food
commodities to the consumers. Further, the USG and GON will seek to
attract domestic and foreign investment in agriculture processing
and production to:
--Identify and remove bottlenecks in key food commodities value
Q--Identify and remove bottlenecks in key food commodities value
chains;
--Form business linkages between farmers and small to large-scale
commercial processors;
--Improve access to technology, fertilizer, seeds, and farm
equipment for farmers (rice, sorghum, cowpea, cassava, maize,
aquaculture, sesame, and fruit);
--Expand private sector entrepreneurs' agro-processing and post
harvest storage capacity and work with the GON to improve grain
post harvest storage and handling practices at federal and state
level.
--Expand development of private fertilizer and commercial seed
companies;
--Improve water management in key irrigation areas; and
--Increase access to financing from commercial banks (e.g., Bank of
Industry, First Bank).

10. (SBU) Reduce Trade and Transportation Barriers: Technical
assistance will be provided to the GON to:

--Reduce bottlenecks in trade and transportation by removing
procedural delays;
--Improve transportation corridor management to increase trade along
the Lagos-Maradi, Republic of Niger; and Lagos-Cotonou, Benin
roads;
--Continue to modernize the Nigerian Customs Service;
--Build capacity to address trade policies, including expanding on
the draft GON trade and industrial policy that provides for a better
enabling environment for investors; and
--Accelerate the African Development Bank and World Bank investments
in rural roads.

11. (SBU) Improve Sound Market-Based Principles for Agriculture
Growth: The USG will provide technical experts and conduct training
to build the MAWR' and Nigerian policy groups' capacities in
agriculture policy and planning. Specific areas for assistance will
include:
--Revising the national agriculture strategy;
--Implementing the CAADP compact;
--Addressing the role of women in agriculture;
--Establishing a strong monitoring and evaluation system for
agriculture programs;
--Improving national statistics through a national agriculture
census, and strengthening information systems;
--Conducting short-term analysis of agriculture policy for emerging
issues;
--Promoting biotechnology, food safety policy, sanitary and
phytosanitary measures; and
--Planning for adaptation to climate change.
The USG will build the capacity and skills to design and implement
fertilizer, seed, and mechanization policies.

12. (SBU) Accelerate participation of the very poor and improve
nutrition: The USG will:
--Design a program to assist the very poor in on-farm productivity
in collaboration with the World Bank Fadama program, or to work with
other partners; and
--Develop a nutrition project for northern Nigerian States where
malnutrition and stunting are the highest in the country.

---------------------------------------------
Major Expected Results with FY 2010 Resources
---------------------------------------------

13. (SBU) The targeted results of USG support to the GON and
partners are to:
--Increase the sales of agriculture products by $220 million for
750,000 farmers, processors, and shippers, of which 300,000 are
women (40% of the overall beneficiaries);
--Create 50,000 new jobs, of which a high percentage will be for
women and the very poor;
--Increase the yields of rice, sorghum, cowpeas, cassava, millet,
maize, aquaculture, and fruit by 50-75%;
--Leverage $30 million for small holder and agribusiness in
commercial credit;
--Train at least 250 federal and state officials in the USAID
MARKETS private sector model;
--Increase trade along improved roads allowing more farm produce to
reach markets;
--Improve trade corridor operations (Lagos-Maradi, Republic of
Niger; Lagos-Cotonou, Benin) by reducing administrative barriers and
building more rural roads;
--Improve the policy environment for agriculture and trade in
support of the CAADP Compact;
--Develop a program to address the very poor and reduce
malnourishment; and
--Design a nutrition program for two states and identify
beneficiaries and expected results.
Q
14. (SBU) COMMENT: The activities proposed under the BNC's Food Security
and Agriculture Working Group have the potential to reap significant
results, given the President's emphasis on Food Security and
promised additional funding for this area and the GON interest in
expanding its agricultural sector. Mission Team members are
coordinating internally and with other donors on food security and
agriculture assistance being provided to Nigeria, including robust
public diplomacy and outreach efforts with GON. We are actively

pursuing public-private partnerships with the private sector to
increase agriculture investments. In addition, the Mission will work
with other USG agencies such as EXIM, FAS, USCS, OPIC and USTDA to
attract additional resources for these activities. This
coordination will continue under the rubric of the BNC Food Security
and Agriculture Working Group.

15. (U) Embassy Abuja coordinated this telegram with ConGen Lagos.
SANDERS

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