Corporation, and in the southern part of Nigeria where small-scale plantations for rubber, cocoa, and forest products have been established either by Government or private enterprise, mainly the United Africa Company of Nigeria, Ltd. (see chapter V).

Subsistence farming is done mainly by means of the shifting system of cultivation whereby farmers will clean one or more scattered plots of land, place them under cultivation for 2 to 7 years, and then move to adjacent new ground, leaving the original plots to regenerate their fertility through natural reversion to bush or grass.

Permanent cultivation of land for annual crops is possible at present only where the fertility of the soil is maintained through animal manures in regions relatively free from the tsetse fly. Such cultivation is particularly found in the cotton-, peanut-, and rice-growing areas around Kano, Zaria, and Sokoto. Cattle- and sheep-raising is largely a nomadic pastoral activity, and animal manuring of soil is a haphazard incident dependent on arrangements between the cattle herdsmen and farmer owners for grazing of cattle. Consequently, mixed farming on a permanent basis is very primitively organized and not well established. Agricultural production for export is on a peasant basis and follows the general pattern outlined above except for tree crops which, as in the case of palm oil and kernels, are harvested from wild, indigenous trees or, as in the case of cocoa, kola, and rubber, are produced from specialized permanent farm holdings.

The nature of peasant production necessitates therefore a highly intricate and developed system of marketing from the original collection of produce from individual producers to their eventual shipment abroad to oversea purchasers.

For certain key export produce, the marketing mechanism functions through the governmental produce marketing boards (see chapter V) whereby produce is purchased on behalf of the boards through licensed private agents. For noncontrolled produce, the marketing mechanism is much the same except that the private companies or individual traders buy in their own right for eventual sale abroad.

The overwhelming importance of agriculture in the economy is reflected in almost all economic and statistical indicators. Of a work force in Nigeria in 1952-53 estimated at 14,880,000, no less than 11,657,000 were occupied in agriculture, forestry, pastoral, or fishing pursuits. These activities account for 66 percent of the total gross domestic product; agricultural products accounted in 1955 for about 85 percent of all exports.

AGRICULTURAL EXPORT CROPS

In order of value, the most important agricultural exports of Nigeria generally are palm produce (oil and kernels), cocoa, peanuts, cotton, and rubber. As a group, the oil-bearing crops are by far the dominant component of Nigeria's export trade.

Palm Oil and Kernels

The semiwild oil palm in Nigeria is found principally in a coastal belt, varying in depth from 100 to 150 miles. It has been estimated that the palm belt of Nigeria encompasses an area of approximately 70,000 square miles. The palm growths are denser, by far, in the Eastern Region than in the Western Region where cocoa production for export is the major agricultural item. Such oil as is produced in the Western Region is, by and large, consumed locally, and when surpluses do exist they are usually marketed in other parts of Nigeria, primarily the North, rather than exported overseas.

The main production is centered in the area around Warri, Port Harcourt, and Calabar, an area formerly called the Oil River District. The first recorded shipment of palm oil from the area was on a British ship during the year of the Spanish Armada.

Production methods.-The fruit of the oil palm, which is indigenous to West Africa and grows in clusters (bunches), contains an outer layer enclosing the palm kernel. Palm oil and palm kernel oil are extracted from the fruit. Palm oil is extracted locally but extraction of oil from the palm kernel 1 is done overseas, for the processing of the kernels is a complex operation requiring advanced crushing machinery and techniques not yet available in Nigeria.

Oil palms grow wild in Nigeria and plantation cultivation is limited. Regeneration is accomplished by natural means, and a tree requires about 15 years to reach maturity. The fruit grows near the top of the tree and requires hand cutting by African boys using machetes. Ropes are used to aid collectors in scaling trees to chop out the fruit bunch.

Nigerian palm oil produced from wild trees as distinct from plantation-cultivated trees is commonly known as "trade oil." The quality of the oil, as determined by its free fatty acid content, governs the price to the producer by the

1 The cracking of the palm kernel and other preparation for its export abroad is a function of village women as a separate operation during the hand expressing of palm oil. The income so derived from the sale of kernels by custom reverts to the women. In some areas, such sales represent the principal independent income of the women. This factor has impeded efforts to mechanize oil expressing by establishing pioneer oil mills. At present, palm kernels that are not consumed locally (in contrast to palm oil) have an export value far above that of palm oil.

marketing boards. Palm oil is composed chemically of fatty acid and glycerol. Fruit enzymes act as a catalyst, and through this medium the oil in the fruit gradually deteriorates, splitting the oil into its two chemical components. The free fatty acid (f.f.a.) content is the proportion, by weight, of the acid to total (oil plus acid). This proportion, expressed as a percentage, measures the deterioration of the oil; the lower the f.f.a. the higher the quality of the oil. Oil for edible purposes requires a low f.f.a. content and commands, therefore, a higher price.

When the fruit is first cut down in its ripe stage (palm fruit ripens throughout the year and is therefore continuously harvested) the oil in the pericarp of the fruit is neutral and contains little or no free fatty acid. The fruit enzymes immediately begin their work of separating the glycerol from the fatty acids.

This fermenting operation with resultant rise in f.f.a. content is arrested when the fruit is sterilized by boiling or other method and by prompt expressing of the oil from the fruit bunch. Consequently, the speed with which the palm fruit bunch is processed and the oil extracted is a vital factor in determining the f.f.a. content (and hence the quality) of the palm oil. Likewise, since bruising of the fruit speeds up the fermentation process, care in handling of the fruit is also important in keeping down the f.f.a.

These technical details help explain the Nigerian Government's preoccupation with ways of improving the expressing of Nigerian oil from the palm. Production on a peasant farming basis obviously is at a disadvantage in relation to the extensive scientific production and processing possible under a system of plantation cultivation, and while Nigeria is the largest world source of oil, sale of its product has suffered from the effects of plantation production in the Belgian Congo and elsewhere. Although plantations in Nigeria exist and will certainly expand in the future, the major part of the output is likely to remain in the hands of the peasant producer, and efforts must be devoted to improving peasant processing of Nigerian oil in order to maintain a competitive position in world markets and to increase total output.

Palm oil is processed by three methodshand processing, hand press extraction, and "pioneer oil mill."

Hand processing. The hand method of oil processing generally means that the family works as a unit, with the younger members responsible for climbing the trees, chopping out the fruit, and collecting the fruit bunches in heaps near the dwelling place. The bunches are allowed to ferment for several days to loosen the fruit; then, the fruit are detached and

boiled in water to sterilize them. This second operation is usually performed by women. The steamed fruit is placed in a mortar and pounded with a heavy wooden pestel; the fruit is converted to a pulp consisting of a fiber containing oil and nuts. The nuts are separated from the fiber by hand. The fiber is then placed in a rope net which is twisted with a wooden stick for additional leverage. This wrings the oil from the fiber. The fiber is boiled in water, and the oil, which rises to the surface, is skimmed off. The nuts are cracked by hand one at a time with rocks. This is called the soft oil method. There are variations in the method, such as placing the fruit mass in a canoe and treading out the oil with the feet. After fermenting in the canoe the freed oil is collected in one end by tilting. Such exclusively hand methods of extracting oil will yield from 45 to 55 percent of the oil of the palm fruit.

Hand press extraction.-A more advanced method, one that is encouraged by the Government, is the hand press for the family unit in the extraction of oil after the fruit has been sterilized by boiling. The hand press is designed to take up to 114 hundred-weight of fruit at a time and will extract up to 65 percent of the oil of the fruit. The hand press, however, requires an investment of some £30 by the family, and, while at the end of 1953 there were 5,300 hand presses in use, the greater part of Nigerian oil is still produced by exclusively hand methods.

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Pioneer oil mills.-In certain districts, the Government has established large mills for expressing oil known as pioneer oil 2 mills, to which the African can take the picked fruit for processing. The producer is paid according to the weight of the fruit brought in. Each mill is capable of handling 5 tons of fruit in an 8-hour period and of producing approximately 350 tons of palm oil a year. After purchase of the fruit by the factory the process of extracting the oil is carried on by the modern means available in the mill. A drawback to the mill process is that economical operation depends on regular supply to permit continuing capacity operation. At present supplies tend to be irregular. Oil yield by the pioneer oil mill method reaches 85 percent, as compared with 55 percent by hand and 65 percent by hand press. Most of the Nigerian oil is still produced by the hand method, but the number of pioneer oil mills installed is increasing as a result of Government development efforts to finance such mills. At the beginning of 1954 in the Eastern Region 53 pioneer oil mills were in production.

Insofar as the quality of the oil is concerned,

The pioneer oil mill was originally designed and introduced into Nigeria by the United Africa Company, Ltd.

Throughout this report the ton is the long ton of 2,200 pounds, unless otherwise indicated.

hand processing can produce an f.f.a. range from as low as 3 percent to up to 35 percent, depending on the speed and pains taken by the peasant producer. Since pioneer oil mills produce oil generally in the range of 3 to 6 percent f.f.a., hand processing can produce the same quality oil as the mill. Remarkable improvement has been registered in the quality of Nigerian oil exports through price incentives established by the marketing boards.

Palm oil and kernels are controlled produce that are purchased and exported abroad by the marketing boards (see chapter V for discussion of the structure and organization of the marketing boards).

Marketing. After its initial processing, the oil is transported to numerous out-stations and collecting centers that are manned by licensed buying agents who have contacted purchasing middlemen, submiddlemen, and often the peasant producer. Puchases by middlemen at these stations are paid for at an official rate fixed by the board. Middlemen may go either into the producing areas or establish themselves in small towns in or near official collecting centers to buy small lots, which are combined and sold to licensed agents. Some middlemen purchase from other middlemen or submiddlemen. In cases where the licensed agents employ buyers, funds may be advanced by the agents for such purchases as are made. The legal relationship is usually defined by a signed agreement. Factors under contract to licensed agents operate under their own name and with funds advanced by their agent. Middlemen grade the oil as it is purchased and each lot is blended in large drums and sold to the licensed agents who are responsible for transport to bulking areas and to oversea destinations.

In determining the scale of prices to purchasers for the various grades of oil, based on the f.f.a. content, the marketing boards have attempted to provide an incentive to produce a better grade oil. The widespread use of synthetic detergents rather than low-grade palm oil in soap making beginning in 1949, seriously threatened Nigeria's oil export trade since over 99 percent of all its palm oil was over 41⁄2 percent f.f.a. at that time. Through their price incentive program, however, the boards have been remarkably effective in getting peasant producers to process a higher grade oil. In 1950, oil classed as special (not over 42 percent f.f.a.) constituted 0.2 percent of total palm oil exports; thereafter, the percentage rose to 6.3 percent in 1951, 29.6 percent in 1952, 50.4 percent in 1953, and 60.9 percent in 1954. It is now believed to be in excess of 70 percent.

In 1955, the marketing boards broke the special grade into 2 grades: Grade 1 with an f.f.a. of 3.5 percent and grade 2 with an f.f.a. of 4.5

By far and large, the principal area for production of peanuts, or ground nuts, in Nigeria, is the low-rainfall open plains of the Northern Region. It has been estimated that approximately 3.5 million acres of land were devoted to the production of this major export item in 1955-56. Nigeria, exporting peanuts in 1955 valued at £28 million, is the world's largest exporter of peanuts, followed by French West Africa and Gambia, in that order. Kano, the chief commercial city of the Northern Region, is also the center of the peanut industry; other key areas being around Katsina, Sokoto, and Maiduguri, with some small production for export in Benue. Some peanuts are grown in the South, where the average rainfall is high, and in exportable quantities in the East, in Adamawa.

The plant is well suited to the sandy soil of the north where it nourishes the soil with nitrogen and is an added advantage in the north, where the cost of artificial fertilizer prohibits any large-scale use. Aside from their importance as an export item, peanuts and peanut oil are staples of Nigeria. The 1955-56 round shelled peanut crop was reported to be 776,000 tons of which it is estimated that 200,000 tons

were consumed locally and another 50,000 tons used for seed.

Peanuts are not indigenous to West Africa. They were introduced from the New World by the Portuguese via Brazil. The production of peanuts for export began about 45 years ago and was, in comparison with present day export figures, negligible, amounting to an average of 8.2 thousand tons a year for the 5-year period 1910-14. In the 26-year period from 1911-37, over 1 million acres were brought into cultivation. After favorable marketing conditions were created, the rise in peanut production was almost entirely on the initiative of the African peasant.

Production methods.-There are two types of peanut plants in Nigeria a running, or spreading, type and a bunched, or upright, type; the latter has a higher yield, but is more difficult to harvest. Their oil content is about 48 percent, comparing favorably with palm kernels at about 50 percent. World demand and a means of transport for surpluses are responsible for the part peanuts play in the economy of the Northern Region. Development of oilseed crushing by the French and the subsequent discovery of a method of hydrogenation, which renders oil firm and odorless, were the first factors of importance to the peanut producers of Nigeria. The hydrogenation process was perfected in 1903. The second factor was the railway, which reached Kano in 1911. The following year, 2,500 tons of peanuts were exported. A total of 19,000 tons were exported in 1913.

In 1950, it was estimated that at least 60 percent of the peasant population of the 4 areas of Northern Region was dependent to a degree on peanuts as a cash crop. The average farmer cultivates at least 1 acre in peanuts as a cash crop. The yield is approximately one-fourth of a ton per acre in light soil, and somewhat less in heavy soil. Peanuts intended for seed purposes are kept in the shell until seeding time and are generally removed from the shell before planting in order that the quality of the seed may be determined. Maturity is reached in from 3 to 5 months, depending on soil and climatic conditions. Harvesting generally takes 3 months. The plant withers as the nut ripens, and upon maturity, the plant is uprooted and allowed to dry in the sun for a short period. Then the nuts are handpicked and moved to a central area where the drying-out process is completed.

When the nuts are completely dry, they are pounded in a wooden mortar to break the shells and winnowed in calabashes. This work is usually done by women. Two persons can decorticate and clean a ton of peanuts, the entire crop of 4 farmers, by the mortar and pestel method, in less than a week.

Marketing.-Marketing of peanuts, under the marketing board system, generally starts early in November and, as in the case of palm oil, includes licensed buying agents, contractors, middlemen, factors, submiddlemen, and producer phases. The process of marketing is similar to that experienced in marketing palm oil and kernels. Licensed buying agents, acting on instructions received from the Government, make their own financial arrangements to purchase peanuts for the marketing board, arrange for the collection, storage, and transport of the nuts to the export point, and receive from the marketing board at the port full price paid plus incidental expenses.

After the licensed buying agents rank the highly important group of tradesmen known as the Kano contractors, who are African or Syrian middlemen operating from Kano and having their own buying agents throughout the production areas. They contract with buying agents to deliver specified tonnages of peanuts.

Another link in the chain stretching from the marketing board to the producer is the middleman, who may be African, Syrian, or Arab and who, like the Kano contractor, works for a commission and may buy directly from the producer or a smaller middleman. Middlemen may sell their accumulations to the Kano center, to local centers, to out-stations, or to temporary buying clerks.

Factors operate in their own names and, like the middlemen, may be African, Syrian, or Arab. As a rule, they work with funds supplied by licensed agents and receive a salary and commission based on the volume of their business.

Peanuts are transported to collecting points in calabashes, jute bags, and, in some instances, in leather bags known as tekkis. Larger loads may be carried by donkeys, oxen, or camels; smaller amounts are moved as head-carried loads.

Minimum prices to be paid at various points in the marketing chain are determined by the board. Buying points in the Northern Region are licensed into two categories (1) gazetted stations, where licensed buying agents and large middlemen are established; and (2) authorized buying points, where temporary clerks, middlemen, and submiddlemen are authorized to buy. In addition to these locations there are innumerable points at which middlemen and submiddlemen operate. In the upper NigeriaBenue area, the peanut area is divided into two zones, and a flat price is paid, with certain exceptions, in each zone.

Transport of decorticated and bagged nuts from collection stations to railheads is generally by motortruck. After arriving at rail points, the bags are stacked in the open air in the form of pyramids, each pyramid containing