What is a Corridor?
The corridor involves cooperation between government, private companies, donors, development institutions and academia. The concept includes improved financing facilities and credit schemes, especially for smallholders and agro-dealers. By easing farmers’ access to regional and international markets and deployment of climate smart agriculture create resilience agriculture and sustainable development. As a strategy, incentives are provided to promote diversified
agro-industries based on local agricultural production for export and food security. Converged academia, government and industries to commercial doctoral research outcome to create wealth.
Agro Corridor Five ‘P’ Principles
It promotes agro-ecology with the five ‘p’ Principles: Aviation technology for farmers improved farming and productivity. The system enhances energy, advance production and liquidity, provides knowledge and organic farm inputs (climate smart agriculture) and post-harvest management (grains storage management and biotechnology treatment of grains). The buyers (large and small) provide ready outlets and logistics service providers enable movement along the corridor with agro-air-cargo for logistic to the market globally. ARATI agro-corridor (model Agro-corridor) provides the following services:
- An agro-based cluster where the geographic concentration of interconnected producers, agribusinesses and institutions that are engaged in the same agricultural or agro-industrial subsector, and interconnect and build value networks when addressing common challenges and pursuing common opportunities;
- An agro-industrial park where centrally-managed platform that offers high-quality infrastructure, logistics and specialized facilities and services to a community of tenants, formed by agro-industries, related agribusiness firms, service providers and knowledge institutions;
- An agro-based special economic zone demarcated geographically area where firms engaged in agribusiness and agro-industrial activities benefit from a more favourable regulatory, business and fiscal environment than those in the rest of the country;
- An agribusiness incubator where, an entrepreneurial development model that provides a common environment (either physical or virtual) to nascent agro-based companies, where they have access to shared infrastructure, and networking, coaching, business and financial services.
Benefits of Agro Corridor
Policy leaders should take an integrated approach to food security, poverty and climate change within the co-value creation of Agro-corridor . These approaches include:
- Integrated planning of land, agriculture, forests, fisheries and water at local, watershed and regional scales, to ensure synergies are properly captured.
- Promoting activities that increase carbon storage, combine animal husbandry and trees with food production, and are geared towards improving soil fertility.
- Reducing a variety of emissions from agriculture such as nitrous oxygen from fertilizer application, livestock emissions and methane from rice cultivation.
- Exploring carbon finance as a “lever” to promote sustainable agricultural practices that have many other direct benefits for smallholder farmers and the environment.
Diversifying income sources and genetic traits of crops to help farmers hedge against an uncertain climate.
- Developing sound risk insurance and risk management strategies as well as resilience building strategies including safety nets that reach the poorest farmers.
- Adaptive management that disseminates timely climate information to farmers and monitors the local outcomes of different actions, builds on the traditional knowledge of farmers, and tailors techniques to shifting climatic conditions without harming ecosystems
What Is Contract Farming?
The end of 20th century contract farming became more important in agri-food industry liberalization, globalization, changing consumer demands, technology, government policies, development of supply chains and trading networks, especially rise of supermarkets.
Advantages of Contract Farming:
- a) For Agribusiness Firms
- Access to land is facilitated (not ‘land grabbing’); hence. greater political acceptability political acceptability;
- Reduced risk of loss from disease, pests or drought;
- Labour costs are reduced;
- Some crops considered more suitable for small-scale production, and hence contract farming;
- Greater regularity of agricultural product supplies to the firm: greater regularity of agricultural product supplies to clientele:
- Enables it to meet its contractual and delivery obligations to its buyers (in supply chain).
- Guarantees factory throughput.
- Ensures supplies are available at the right time, in the right quantity, of the right variety and necessary quality.
- Ensures compliance with buyers’ standards or other certification requirements.
- b) For Farmers:
- Market access is more secure, promoting reliable revenue stream and income stabilization.
- Credit access is enhanced (in kind or via banks) stream and income stabilization
- Inputs supply more easily obtained (less uncertainty regarding availability timing quality) availability, timing, quality).
- Agro-services and technological assistance can also be obtained (mechanization, transportation, extension).
- Production and management skills of group’s enhancement.
- Risk reduction production planned to only meet demand reduces losses as well as price fluctuation.
- Higher value crops yield and integrated soil nutrient management and productivity.
Contract Farming Models:
- Centralized Model , classical model – huge processor/packer and large number of (small) farms – Palm oil, rice, cassava, soy bean, sugarcane, tea, coffee, livestoks,
- Nucleus Estate Model – variation of (i) with own production facility (estate/plantation) – base throughput for processing facility, R&D, breeding. Involve ‘out-growers’- mainly annual and perennial crops etc.
- Multipartite Model – Joint venture between statutory bodies with private company, contracts with farmers – Anchor Borrowers scheme etcs.
- Informal Model – Individual entrepreneurs or small companies contract in informally with farmers on seasonal basis – horticulture, fresh fruits and vegetables, success depends on availability of agri-support services provided by government and stakeholders.
- Intermediary Model – Involving at least 3 parties (combination of sector (middleman) who the informally contracts with a number of farmers.
ARATI Agro – Corridor Wealth® Management Conceptual Framework illustration of OTAIGRO®
Big/ Small holder Farmer Agro- Corridor Value Chain Development Model
Source: 2019 Huetz Mobile
Collaboration illustration of OTAIGRO ® framework web-based Farm Management Information
Systems (FMIS) for ARATI Agro – Corridor .
Example of the ARATI Agro- Corridor Wealth® Management for rice value chain
- What is AGRO Corridor Architectural Design?
Agro-Corridor, Nigeria: site plan layout
Visitor Green Park
Knowledge Clusters Centres
ARATI Farms & Resorts
See attached document for content