The Chairman, Flour Mills of Nigeria Plc, Mr. John Coumantaros, says the company flourished even during the recession because of the organisation it had carried out. In this exclusive interview with FRANCIS KADIRI, Coumantaros, whose organisation has produced leading nourishment brands in Nigerian food processing unit for over 50 years, discusses business opportunities obtainable in the Nigerian economy, among others. Excerpts
As an industrial giant operating in Nigeria for over 50 years, what percentage of Nigerians is in your local staff?
I will say about 97 per cent of our manpower is sought within Nigeria. We rely on foreign expertise in the areas where we need technical competence and it’s only where such competence is not available in Nigeria that we look outwards. I am proud to say that Flour Mills of Nigeria has one of the best workforces not only in Nigeria, but also in the continent of Africa.
How has the recent economic recession affected your businesses in Nigeria?
FMN recorded a very robust result in the second quarter of this year. We expect the trend to continue. I think that the Nigerian economy is stable at the macro level. There is now a good foundation on which future growth can be built, and it offers a growth-base for the diversification of the economy. Every business needs to prepare for difficult and turbulent economic climates, and I say we were ready, and so we stood even during the storm.
It is a misconception to think that large-scale commercial farmers and small-scale farmers cannot co-exist. I believe that once they cooperate, 200 or 300 farmers can come together to produce on a large scale
Are there opportunities for small-scale farmers to participate within the business chain of Flour Mills?
I think it is a misconception to say that large-scale commercial farming is harming small farmers. On the contrary, large-scale farming is what will enable small farmers to really grow. The only reason we entered farming in the first place is to ensure we secure our basic raw materials. We very much bank on the small-scale farmers and encourage them to do well. We always see ourselves as an enabler for the small-scale farmers to flourish and grow. It is a misconception to think that large-scale commercial farmers and small-scale farmers cannot co-exist. I believe that once they cooperate, 200 or 300 farmers can come together to produce on a large scale, which is another form of large-scale farming because small-scale farmers are aggregated.
How can Nigeria produce enough food to feed her citizens and even export?
I think Nigeria is already doing that, because we exported about 100,000 tonnes of soya beans meal last year. We also exported local garri and cassava and we are also working towards developing other local content.
What are the plans to make FMN able to play big in the emerging food industry?
Our strategies are very clear. We are one of the foremost food companies in the country and we are also one of the most prominent agro allied groups in the country. We would like to continue to be the most efficient and profitable agro-allied concern, as well as one of the most profitable and more efficient food business outfits. We would like to drive our local content to the highest possible level so that we are not dependent on imported raw materials and we will continue to remain innovative and create products that cater to the Nigerian market; one that is driven by local content. We would like to flood about 400,000 sale outlets throughout the country with our goods. We would also like to reach out, aggregate and collect raw materials from as many points and suppliers as possible. So, our focus is really to reach our consumers, reach out to our customers and connect with them with our goods and services.
Tell us more about FMN
FMN has been in business in Nigeria for 57 years. The company has since evolved into a Group with direct and indirect investments in the foods and agribusiness sectors of the economy; employing more than 11, 000 persons, and actively contributing to the Gross Domestic Product of Nigeria. A lot of FMN’s business operations can very easily relate to the theme of this year’s summit. Our business is creating a lot of opportunities every day for many families across several states in the country. In agriculture alone, we have created numerous opportunities for farming-cassava farming and processing in Kwara State. We also have sugar plantation in Niger State, and palm plantation in Edo State and in different regions of the country, where we are aggregating, processing and selling agro-allied services.
On the average, we store over 600,000 tonnes of grains all over the country that include maize, soya beans, sorghum, local wheat, oil palm and cassava. These cultivations involve between 200,000 and 250,000 farmers throughout the country.
What are the challenges confronting FMN’s operations in Nigeria?
There is nothing in life that is easy. There are difficulties everywhere there are humans. What is required is discipline, perseverance, determination, long-term thinking and planning. That was the philosophy of my late father who saw the long-term vision of where the nation was going and where Flour Mills Plc. could partner to help her growth; and I am very proud to align with that vision.
In terms of doing business, how is Nigeria different from other African countries?
At FMN, we are passionate about developing many new industries and breaking new frontiers. For example, with our soya beans crushing facility, we managed to export nearly 100,000 tonnes of soya bean meal last year for the first time in the history of this country. This was something that was not possible before that time. We have the first margarine plant in the country. We have one of the largest animal feeds operations not only in Nigeria but also in sub-Saharan Africa. We have created value by adding opportunities that were never there before. There is enormous potential for growth in Nigeria; the country needs to grow and process her food. It also needs to find ways of doing that better with quality seeds, better fertiliser application, better agronomic skills and better control of its mineral resources. FMN has always been at the forefront of developing new innovations, because of the opportunities that are inherent in Nigeria, her resources and
the economy.
