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Compact Case Study of Cassava Value Chain Analysis and Production Trend Analysis-2020

Cassava Value Chain Analysis and Production Trend. This study was carried out to examine the cassava value chain development analysis and production trend in Nigeria-West Africa.

Cassava Value Chain Analysis and Production Trend – Significance for economy

Importance of cassava in the world

Cassava is the most important tropical root crop. Its starchy roots are a major source of dietary energy for more than 500 million people. It is known to be the highest producer of carbohydrates among staple crops. According to the United Nations Food and Agriculture Organization (FAO), cassava ranks fourth as a food crop in the developing countries, after rice, maize and wheat. The leaves are relatively rich in protein and can be consumed. Cassava can be stored in the ground for several seasons, thereby serving as a reserve food when other crops fail. Cassava is also increasingly used as an animal feed and in the manufacture of different industrial products. It is also used in industrial processes.

 

According to FAO estimates, 172 million tonnes of cassava was produced worldwide in 2000. Africa accounted for 54%, Asia for 28%, and Latin America and the Caribbean for 19% of the total world production. In 2017 , Nigeria produced 55 million MT, making it the world ’s largest producer. A total of 16.8 million hectares was planted with cassava throughout the world in 2000; about 64% of which was in sub-Saharan Africa.

 

The average yield in 2000 was 10.2 tonnes per hectare, but this varied from 1.8 tonnes per hectare in Sudan to 27.3 tonnes per hectare in Barbados. In Nigeria the average yield was 10.6 tonnes per hectare.

World cassava production is projected to increase to 209 million tons (fresh weight) by 2005 or 2.2 per cent annually as in the past, reflecting both yield improvements and area expansion. World utilization is projected to increase by 2.3 per cent annually to 209 million tons. Sixty per cent of the total demand is for food, the remainder for other uses.

 

Cassava Value Chain Analysis – Market potential

With an annual production of between 50 and 55million MT, Nigeria is widely acknowledged as the largest producer in the world, also accounting for over 70% of the total production in West Africa. Cassava is a staple crop of Nigeria. Tubers are traded for preparation at household level. Processed cassava food products are manifold and there is a trend towards industrial processing. Globally, the traditional use of cassava is changing from primarily human consumption to processing into industrialized products such as starch, High-Quality Cassava Flour (HQCF) and ethanol.

International trade in cassava is growing rapidly; trade volumes between 1995 and 2005 increased by about 36% and projection for the year 2015 is 40% growth rate and estimated at 11.76 million MT.

Cassava Value Chain Analysis – Target markets

Domestic: direct human consumption, as material for industrial use, animal feed.

International (Gari and Odourless fufu powder). Many Nigerians in the diaspora crave for basic Nigerian traditional foods. Cassava starch is yet to satisfy the local demand as well as there are alternatives in the international market and for now Nigerian Cassava Starch may not be able to compete internationally, but there is ongoing effort meet the by the processors o meet the required international standard.

Products

Gari

Fufu

Starch

HQCF

·     Casalina (composite cassava flour product)

·     Sweeteners (glucose syrup, sorbitol, etc)

·     Tapioca (for making pudding for human

Other products                             consumption)

·     Fresh cassava                 ·     Pupuru (now popular in (Abacha) – Ondo State)

·     Lafun                               ·     Beer Ethanol ·                                                     ·     Animal Feed

 

Cassava Value Chain Analysis – Production

Top 10 producing states account for 62.9 % of the total national production in 2012/13 (50-55million tons, which is 20% of global production and equivalent to 16billion US Dollars).

 

Average cassava production (‘000 MT) from 1994/95 – 2012/13 for Top 10 producing states

Top 10 producing states account for 65.81% of the total national cumulative average production between 1994/95 – 2012/2013.

Data from NBS

Cassava Value Chain Analysis-  Yield Analysis for 1994/95 – 2012/2013

Cassava yield trend from 1994/95 – 2012/13

Data from NBS

Cassava yield trend from 1994/95 – 2012/13 (Area view)

Cassava Value Chain Analysis – Imports

Starch: Cassava starch imports increased from 15metric tons in 2002 to 591metric tons in 2012 and its modified form (glucose and dextrose) from 43,267 metric tons in 2002 to 121.539 metric tons in 2008. The demand continues to increase hence increased importation due to inadequate local starch production. The Nigerian demand for starch was estimated at 230,000 tons /Yr.; with 60,000 tons of starch used by Nestle and Unilever alone (UNIDO 2006).

Wheat: is mentioned here as cassava flour can substitute wheat flour for production of bread. 4.75 million Metric tons Wheat imports to Nigeria account for $4billion p.a. 50% from USA, down from 90% in 2012. Other exporters include Russia, Australia, Canada & Ukraine.

 Cassava Value Chain Analysis – Primary Producers Supplying the Product

 Cassava Value Chain Analysis
Cassava Value Chain Analysis
  • Small-scale producers
  • Large-scale producers partially running out-grower schemes – Thai Farms, a subsidiary of Flour Mills of Nigeria , Psaltry , Anambra Starch Mill, MATNA and a host of other

 

Cassava Value Chain Analysis – Cassava Value Chain Operators

  • National Cassava Processor and Marketers Association(NCAPMA)
  • Flour Milling Association of Nigeria.
  • Association of Master Bakers and Caterers of Nigeria(AMBCN)
  • Nigerian Cassava Growers Association
  • Association of Fast Food and Confectioners of Nigeria (AFFCON)
  • Suppliers of chemical inputs and equipment
  • Cassava traders
  • Multipliers of planting material (improved varieties)
  • Flour mills
  • Retailers of flour
  • Industrial bakeries, SME bakeries
  • Manufacturers using starch for finished food products
  • NAFDAC
  • SON (Standard Organization of Nigeria).
  • Marketers selling consumer products
  • Supermarkets selling cassava products
  • Transporters
  • Cassava initiatives: SEDIN, Cassava revolution, CAVAII etc.

 

Cassava Value Chain Analysis – Constraints for Cassava Production.

  • Value of cassava losses along the VC estimated at 139,996,245,788 NGN p.a. (Source: GIZ 2013. Food losses in cassava and maize value chains in Nigeria.
  • The cassava root is highly perishable
  • Insufficient knowledge on production & post-harvest techniques
  • Business linkages with processing companies (many operating below capacity)
  • Inability of processors to comply with required quality of products
  • The high cost of flash drier
  • The high cost of cassava roots due to very low yield and high expenses especially for hired labour
  • Expensive transport of a bulky, highly perishable product from the farm over poor roads/paths to public road network
  • It’s perceived that cassava, being poor man’s food, requires little care and fertilization.
  • A modest expectation from the crop, resulting in acceptance of mediocre yields, without the endeavour to make the very best of it. Virus and insect damage not taken seriously.
  • Keeping the crop in the soil until needed is an advantage in terms of food security and management. It is not an advantage for root quality or in terms of farm income and adds to the production costs (longer care is needed) and ties downland.
  • Low market price for HQCF from the flour millers
  • Many processors cannot source sufficient cassava roots

 

Cassava Value Chain Analysis – Potential for Value Addition

  • Outgrower schemes for steady supply of quality cassava for processing
  • Better farming practice allows sinking of unit production costs and improved quality, making the raw material attractive for the processing industry
  • Substitution of imported wheat by HQCF and starch
  • Production of industrial alcohol
  • Beer brewing
  • Sweeteners (glucose, maltose) for pharmaceutical and soft drinks industries
  • Production of dried chips for animal feeds.
Knowing the Stages of Rice Production in Nigeria

 

Cassava Value Chain Analysis – Employment Potential in Downstream Enterprises

  • Limited in industrial processing enterprises
  • High potential in small-scale processing with the use of improved technology such as mechanized grater, peeler, hydraulic press etc.
  • Support mechanization of cassava production to reduce production cost and increase yields.
  • Need for redirecting the labour force to acquire new skills such as use of ICT in agriculture, repair and maintenance of farm and processing equipment, tractor driving and operations. This kind of skills will encourage more youth into agriculture.
  • Females dominate cassava production in some states.
  • Small scale processing and marketing are exclusively women’s role

Cassava Value Chain Analysis – Prices

Prices Type of product Current price (NGN /kg)
Fresh cassava Farm gate 9
Fresh cassava Urban market 25
Gari Local market 200
Gari Supermarket 270
Fufu (dry odourless) Supermarket 250
Lafun Local Market 120
HQCF Factory 80
Casalina Supermarket 300
Casavita Supermarket 150
Pupuru Supermarket 200

 

Cassava Value Chain Analysis – Cost-Benefit Analysis

Cost-Benefit Analysis for primary production Case Ogun State 1 hectare
Variable Cost
Cost of labour 81,580
Cost of fertilizer 18,285
Cost of Agro Chemicals 9,650
Cost of cuttings 12,500
Transportation Cost 1,500
Total variable Cost Total (TVC) 123,515
Fixed Cost
Land rent 1,930
Implement cost 8,112
Total Fixed Cost 10,042
 Total cost 133,557
Gross revenue with GAP, 275,000
Yield/Ha is 25tons @N11,000
Profit 141,443
C/B 2.05

Cassava Value Chain Analysis – Potential partners for Value Chain Upgrading      

  • Input Suppliers
  • Nigeria Seed Council
  • Equipment Suppliers and Local Fabricators
  • Packaging industries
  • Large scale commercial cassava farmers
  • Producer and Business Associations (see above)
  • Companies processing starch or flour (incl. outgrower schemes)
  • Extension at state level (ADP)
  • Federal Directorate of Agricultural Extension
  • GESS
  • IITA and related consultants
  • FIIRO, NCRI, RTEP, Harvest Plus
  • BOA, BOI, NIRSAL, CBN/DFD, FAFIN (FMARD-KfW-Sahelgroup), Commercial banks,
  • Insurance companies VC Upgrading.

For quality, Cassava production check out this video on Good Agricultural Practices,

Click here to watch the video

 

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