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May 18, 2020

A pandemic price drop: new storage easing impact in Nigeria

Fresh Produce
Nigeria

In a place such as Sokoto State, where onion production is an essential livelihood for many northwestern Nigerians, COVID-19 has already had a significant impact on the local industry. Instead of strong post-production sales and pricing, onion producers are witnessing considerable price drops.

Currently one 120kg bag of onions which used to sell for around 8000 NGN (20 USD), now sells for only 4000 NGN (10 USD). The reason for this 50% drop has been attributed to the impact of the pandemic, particularly the restriction of movement of people and goods, outside the state. Although there are exceptions for trucks transporting essential products such as food and medicine, several roadblocks have been set up along highways by security officers. In addition to the huge increase in roadblocks across the country, road harassment has also discouraged many truck drivers.

Unfortunately, most of the trucks carrying onions from Sokoto to markets of southern Nigeria come mainly from Ibadan, Lagos, Onitsha and Portharcourt, which are all remote areas. Now trucks are parked in their garages or only travel short distances. As a result, the decline in the number of trucks to transport onion from Sokoto to other localities led to the fall of onion prices in Sokoto.

A tragedy for fresh produce

In general, all fresh produce is impacted by this deteriorating situation. But for the particular case of Sokoto's onion producers, the lack of adequate infrastructure for preservation increases the impact on crops. Therefore Tays Food Limited and 2SCALE are supporting farmers by promoting improved facilities to store their onions. Eight improved onion storage facilities will be built by the end of June, within eight agribusiness clusters in Sokoto. These structures, known as Sokoto Improved Model (SIM) can store onions for four to six months. These facilities will allow producers to keep the onions and then sell them during the off-season when prices are better.

The situation in other 2SCALE countries

Like Nigeria, there has been a negative impact on fresh produce in our other program countries. Although the degree of this impact is different, partners have already begun exploring and implementing new solutions to help mitigate COVID-19-related challenges. In Kenya, drying the product for longer and better conservation is a best solution, just like our partner Sweet & Dried does by providing consumers with affordable dried vegetables that they can keep for a long time.

Although we are already seeing the easing of restrictions in some of our countries, which may lead to the effective resumption of activities, along with our partners we will continue to innovate. To help counter the impact of the pandemic.

Stay tuned for more updates.

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