THE EFFECT OF RESEARCH AND DEVELOPMENT EXPENDITURE ON THE GROWTH OF NIGERIAN BREWERIES PLC..
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria Breweries Plc, a pioneer and public company quoted on the Nigeria stock exchange was incorporated on the 6th of November 1946 under the Nigerian breweries Limited. The name was changed on the 7th of January 1957 to Nigerian Breweries Limited and thereafter to Nigeria breweries Plc in 1990 when the companies and Ailied matters act of the year came into effect. The company is a subsidiary of Heineken N.V of the Netherland which holds a 54.09% interest in the equity if Nigerian Breweries Plc.
Its research and development expenditure on research activities, undertaken with the prospect of gaining. new scientific and technical knowledge and understanding is recognized in profit or loss as incurred.
Research activities in Nigeria Breweries involves a plan or design used by the industry to improve its manufacturing process. The research and development is a process by which new innovations are' designed to - enhance the industry's agricultural and-raw materials.
Nigeria Breweries plc, being a brewery industry its major source of raw material, water and sorghum. Sorghum is a genus of grasses, with about 30 species, one of which are raised for gain and many of which are used as fodder plants, either cultivated or as past of pasture. The plants are cultivated in warm climates worldwide. These sorghums include corn, wheat, cassava.
The effect of research, on the productivity 'of the company's product involved in activities aimed at development of new sorghum hybrids with the potential of increasing the quality of malt produced and yield/output for the sorghum growers. The activities include evaluation of available raw sorghum varieties with the aim of identifying peculiarities of the seeds and impact on malt production. These will help stimulate the sorghum industry and define a sustainable malting process which will guaranty the production of high-quality sorghum malt that will consistently meet all specifications for beverage making in our breweries. The company also has a subsisting consultancy agreement with a Nigerian professor on the development of sorghum seeds.
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