Cassava Value Chain Analysis - NDPI Foundation
NEW NIGERIAFOUNDATIONA Report onCassava Value ChainAnalysis in the NigerDelta2011Foundation for Partnership Initiatives in the Niger Delta (PIND)1st Floor St. James Building,167 Ademola Adetokunbo Crescent,Wuse II, Abuja, Nigeria
AcknowledgementsThe study team wishes to acknowledge the financial and technical support that PIND contributed to thesuccess of the study. The useful information provided by farmers, processors, traders, input suppliersand other key informants at all the study locations in the Niger Delta Region of Nigeria; their specialinput and their friendly and accommodative nature during the field work of this study are very muchappreciated. In particular, the authors would like to thank and express gratitude to: Cassava farmingvillages in Edo, Delta and Imo States; the management of Matna Starch, Nigerian Starch Mill, EkhaAgro, VESA foods, Rose Endeavours and other numerous SMEs in the region. The ProgrammeManagers of ADPs in the different states are much appreciated.It is noteworthy to mention the great work and positive contributions of Tim Canedo, Bill Grant (DAI)and Professor Lateef Sanni of University of Agriculture, Abeokuta, Nigeria towards the finalization of thereport.Finally, we thank Chevron for creating PIND to stimulate economic growth in the Niger Delta region.
Table of ContentsACKNOWLEDGEMENTS. iEXECUTIVE SUMMARY .viiOpportunity for Growth. viiiStrategy for Growth . ixImprove Value Chain Coordination . ixImprove Production and Productivity . ixImprove Processing to Meet the Supply Chain Needs of the HQCF Market . ixStrengthen Coordination and Advocacy Bodies . xSpecial Considerations for PIND in the Design of its Pilot Activities . xINTRODUCTION. 1Overview . 1Reasons for Selecting Cassava Value Chain . 2Methodology . 2Structure of the Report. 3THE END MARKETS. 4Traditional Food Oriented Market . 4Garri . 5Fufu . 7Kpokpo Garri . 7Edible Starch . 8Abacha . 8Industrial Market . 8High Quality Cassava Flour - HQCF . 8Starch . 9Cassava Chips .11Ethanol .11PRODUCTION AND PROCESSING .12Cassava Production .12Cassava Varieties .13Processing Activities in the Niger Delta .17Large Scale Starch Production in the Niger Delta .19THE VALUE CHAIN MAP .21Description by Function .21Cassava Producers .21Traders .23Cassava Processing .24Description by Channel .25Small Scale Production for Traditional Food.25Medium Scale Production for Improved Food Products .25Large Scale Production for Industrial Products .25Supporting Organizations and Regulatory Framework .26Support Organizations .26Quality and Safety Standards for Cassava in Nigeria .28ii
The Presidential Initiative for Cassava .28Tax Regime .29International Institute for Tropical Agriculture – IITA .31Donor Funded Programs.31VALUE CHAIN DYNAMICSAND POINTS OF LEVERAGE .32Trends and Drivers .32Trends .32Drivers .32Points of Leverage .33Producer Associations .33Large Processors .33Extension Service Providers .33Ministry of Works/NDDC/Oil Companies .33IITA and other Donor Programs .34Constraints and Opportunities Matrix: .34VISION FOR GROWTH .44Major Opportunities for Economic Growth .44Strategies .44Expanding Industrial Markets .44Improved Linkages within the Value Chain .45Increased Cassava Production .45Improved Cassava Products .45Recommended PIND Implementation Strategy .45Improve Value Chain Coordination .46Improve Production and Productivity .46Improve Processing to Meet the Supply Chain Needs of the Industrial Processors .46Strengthen Coordination and Advocacy Bodies .46Special Considerations for PIND in the Design of its Pilot Activites .47Further Information and Analysis .47APPENDICES .48REFERENCES .48APPENDIX 1: SURVEY ANALYSIS REPORT .50Introduction .50Methodology .50Results and Discussion .50Section 1: Marketers .50Section 2: Demand Component .57Section 3: Supply Component .60Survey Tables .62APPENDIX 2: STATISTICAL TABLES .66APPENDIX 3: STANDARDS OF CASSAVA BASED PRODUCTS .71Standard for Cassava Starch (Food and Industrial Grade) [NIS 386: 2004] .71Quality and Safety Standards for HQCF .73APPENDIX 5: REPORT OF PIND CASSAVA VALUE CHAIN ASSESSMENT VALIDATIONWORKSHOP .76iii
List of FiguresFigure 1: Global cassava production . 1Figure 2: Potential market for cassava by product (Kormawa, 2003, quoted by Echebiri and Edaba,2008 . 4Figure 3: Major source (rural) and destination (urban) markets for Garri in Nigeria (Ezedinma et al 2007). 5Figure 4: Distribution of Garri destination markets in Nigeria, source Ezedinma, et al 2007 . 6Figure 5: Commodity chain of Garri in Enugu and Benin City markets . 6Figure 6: Dried fufu and wet fufu, Sanni et al (2008) . 7Figure 7: Major rural and urban markets for starch in Nigeria, source: Ezedinma et al, 2007 . 11Figure 8: Percentage share of Niger Delta states in Nigeria‘s cassava output . 12Figure 9: Cassava output in the Niger Delta region . 12Figure 10: Yield of old and new varieties of cassava in the CEDP, from CEDP closeout report . 14Figure 11: Women processors in Akwa Ibom, Source: IITA-CEDP . 18Figure 12: Cassava products in the Garri market . 19Figure 13: Cassava value chain map. 22Figure 14: Opportunities for economic growth . 44List of TablesTable 1: Frequency of Cassava Consumption . 5Table 2: Imports of Cassava Starch and Starch Based Products into Nigeria . 9Table 3: Improved Varieties of Cassava Available in the Niger Delta Region . 13Table 4: Cassava Production Cost from Niger Delta Region . 15Table 5: Farm Level Budgets for Cassava Producers in the Niger Delta Region . 16Table 6: List of Existing Cassava Processing Centers/Enterprises in the Niger Delta Region . 18Table 7: Cost of Production of HQCF, Fufu and Garri (N/ Per Mt) . 24Table 8: Price Differentials of Cassava Along the Value Chain . 26Table 9: Role of Public Sector Actors . 26Table 10: Role of Private Sector Actors . 27Table 11: Achievements and Challenges of 10% HQCF Inclusion in Nigeria . 28Table 12: Duties for the Import of Cassava and Cassava Competing Products . 29Table 13: Constraints and Opportunities Matrix. 34iv
List of DCSMETFIUNIDOUSAIDAgricultural Development ProjectAfrican Growth Opportunity ActCentral Bank of Nigeria.Cassava Enterprise Development ProjectDutch Agricultural Trading CompanyEconomic Development CentreEuropean UnionFood and Agriculture OrganisationFederal Ministry of Agriculture and Rural DevelopmentHigh Quality Cassava FlourInternational Fund for Agricultural DevelopmentInternational Fertilizer Development CooperationInternational Institute for Tropical AgricultureLift Above Poverty OrganisationMicro Processing CentresMicro Small and Medium Enterprisesmetric tonsNiger Delta Development CommissionNiger Delta RegionNon-governmental Organisation.Partnership Initiatives in the Niger DeltaRaw Materials Research and Development CouncilRivers State Sustainable Development AgencyStandards Organisation of NigeriaShell Petroleum Development CompanySmall and Medium Enterprises.Tai Farm InternationalUnited Nations Industrial Development OrganisationUnited States Agency for International DevelopmentTeam Members1.2.3.4.5.6.Ayodele DanielsAndrew UdahNnennaya ElechiChijioke OriuwaGaniat TijaniProfessor Lateef Sanniv
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Executive SummaryThe objective of the cassava value chain analysis is to provide comprehensive information on thecassava sub-sector in the Niger Delta Region as a guide for future intervention and investment in thesector. Specifically, the study team was mandated to study cassava production, processing and marketstructures, major opportunity for growth, supporting organizations, regulatory framework, constraintsand solutions and suggested actions for future intervention for sustainable economic growth of thecassava sub-sector in the Niger Delta Region. The study was commissioned by the PartnershipInitiative in the Niger Delta (PIND) - a non profit organisation (supported by Chevron) that is interestedin the sustainable economic growth and development in the Niger Delta region.Nigeria is the largest producer of cassava tubers in the world with average annual production of about35 million mt over the last 5 years. About one-third of the total national output comes from the NigerDelta region where many livelihoods depend on cassava as a main source of food and income. It hasbeen estimated that the number of small commercially oriented cassava producers within the regionwould be in the range of 70,000- 120,000 (out of the more than 1 million producers) and over 400-500cooperatives and cottage industries, 800,000-950,000 traders, 46 small medium processing industriesand 1 large processing industry in the region. About 70% of cassava farmers in the region are women;also, women are almost entirely responsible for the processing and marketing of cassava and it‘s byproducts in the region.The end markets for cassava in the Niger Delta region can be broadly categorised into: traditional foodoriented segment (which is the dominant segment as it accounts for about 90% of cassava produced)and the industrial product segment (including starch and high quality cassava flour – HQCF) whichaccounts for less than 10%. Across Nigeria, the demand for industrial cassava based products such asglucose and dextrose, starch is rising; e.g. about 121,000 mt of glucose and dextrose was imported in2008, which is about three times more than imports in 2002. The bulk of this demand is being met byimportation and inadequate local production of starch and glucose syrup, thus opportunities exist forincreased production of these products provided they are cheaper than imports. The demand forpackaged and improved cassava food products (garri, odourless fufu flour) is also rising in urbancentres; cassava products from factories like Vesa Foods Benin are found Shoprite and majorsupermarkets in Lagos, as well as Europe and America where a large population of Nigerians reside.In addition, demand HQCF for bread, bisquits and pasta could be strengthened significantly if the rightquality were available at competitive prices.The cassava value chain comprises input suppliers, farmers/farmers cooperatives, processors, traders,collectors, intermediate and final consumers within and outside the region. Cassava production ischaracterised by small holder subsistence farmers (who accounts for about 95% of total cassavafarmers) planting 0.2-1 ha (usually intercropped with maize, melon, vegetables) with yield of 8-10 t/ha.The farmers who plant for commercial purposes usually have between 1-10ha and adopt the use ofhigh yielding varieties, however a lot of them do not adopt good agronomic practices which results in anaverage yield of 11-15 t/ha instead of potential yield of 25-30 t/ha obtained for IITA/CEDP beneficiaryfarmers in the region. Large scale farmers are quite few in the region with farm size accounting for morethan 10ha and up to 1,000 ha, improved varieties and mechanized farming are adopted by thesefarms with output of about 27 – 35 t/ha, however the high cost of operating the farms is making some ofthese firms to scale down on investments. One of the major cost components of subsistence andcommercial cassava production is labour cost, which accounts for about 70% of total production cost.Trading of cassava roots follows a seasonal pattern; it is as cheap as N4,000/mt during the rainyseason when there is a glut in harvest and as high as N17, 000/mt during the dry season when it hardto harvest. As at the time of this study, the farm gate price was N7000 /mt while the factory gate pricevaries from N8,000 to N17,000 for the different processors. There is also a strong geographicconsideration in the farm gate price of cassava – cassava grown close to major transportation arteriescaptures a higher price than the cassava grown in the interior because of proximity and timeliness ofsupply.Processing of cassava occurs in household (mortar and pestle), micro processing centers, cottagemilling, and small, medium and large scale processing plants. Cassava is processed into traditionalvii
food products at household and micro processing centers while cassava is processed into improvedfood products and industrial products at the SMEs and large scale plants. Many recent SMEsprocessing plants have shut down because they could not produce HQCF due to low prices from theflour mills. This led to the unprofitable nature of producing HQCF which was the product most of themfocused on, however few diversified into production of odourless fufu flour whose demand is increasing.Supply of cassava roots to urban based SMEs and large processing plants for production of industrialcassava products has been poor due to challenges of cost and timing of transport from the rural areas.A major constraint identified for production of HQCF was the inability of many farmers to deliver freshlyharvested cassava roots to processing plants within 24 hours; this has high cost implication in terms oflabour for harvesting and transportation of roots to the processors. At the same time, the flour millers(who are the only user of HQCF) are unwilling to buy it at more than N85,000/mt whereas processorsclaim they are only profitable at N110,000/mt. So the product appears to be unprofitable, whichprompted many SME processors to stop production.There are three channels by which cassava and its by-products reach the end markets: small scaleproduction for traditional food; medium scale production for improved food products and large scaleproduction for industrial products. The first channel dominates the industry (at least 80% going fortraditional food, nationally), with only 10 % passing through the third channel into the industriallyprocessed products. While the traditional food market is fairly saturated and offers small opportunity forgrowth, the industrial processed products still offer significant growth potential, if the right dynamics canbe created on supply relationships, cost of production, and demand by local end markets.The recent investment by government, donor agencies and private sector organisations are targeted atutilising cassava for industrial products; IITA/USAID/SPDC investment in the region and thePresidential Initiative of Cassava. However, while there have been good advances on the productionside (yields and varieties), there has not been success with developing the new markets, due totechnical and relational constraints.Over the last 5 years, there has been rising demand for industrial products (starch, glucose, dextrose)that could be produced from cassava, increased patronage of packaged cassava food products. Whilethe flour millers have been flouting the mandatory 10% HQCF blending with wheat flour and the ban onimportation of cassava based products have been lifted, there is still large potential to address theissues facing these market opportunities. Recent (2011) government engagement around enforcing the10% minimum blending requirement is taking hold, however, and more factories are getting interestedin HQCF again.The constraints faced by actors in the value chain include: under utilization of cassava roots in theimproved food and industrial products channels because of weak linkages between actors in the chainto deliver cassava to industrial processors within 24 hours, inadequate input supply, weak extensionservices, lack of access to credit for operating and expanding enterprises, low efficiency of processingenterprises, and the non commercial orientation of many farmers and processors in the region, etc.Opportunity for GrowthOpportunity for growth lies with the industrial usage of cassava through expansion of competitivecassava production and improved products. The growth potential of the non traditional cassava foodsectors in Nigeria is strong. The expansion of this non-food market will foster growth in the cassavaproduction and processing especially the provision of diversified alternative products and sales outletsin the medium to long-term. This will ensure import substitution for starch, continued import substitutionfor glucose and open up export market for starch (native and modified). Import substitution can absorbup to 900,000 mt of finished product, equivalent to nearly 4.5 million mt of cassava tubers.viii
Strategy for GrowthWhile many of the challenges facing the cassava value chain are common to all agricultural products(weak extension services, poor access to credit, poor availability of input supplies, fragmentedmarketing, etc), addressing the needs of the processors to supply the processed food and industrialmarket needs coordinated strategies. PIND should develop a market based approach to addressingthe challenges, initially focusing its efforts on those small farmers who are commercially oriented andon processors with a strong business foundation. These will address cost reduction strategies forproducing industrial cassava products to make them more competitive with imported products. Somesuggestions for proposed interventions to further develop the subsector in the Niger Delta regioninclude:Improve Value Chain CoordinationPIND should address the challenges in the coordination of the supply from the farmers to theprocessors to deliver the right raw material (consistent varieties) to the processing plants within therequired time frame in a cost effective manner: Refine the understanding of the challenges linking the small commercially oriented producers tothe viable SME and large scale processing plants that are producing for the flour milling andindustrial markets; Address the challenges of improved bulking and logistic operations, and enhanced relationsbetween the farmers and the processors; Facilitate linkages between medium/ large scale processors with micro processing centres(MPC) that can process cassava in rural areas for onward delivery to the former; and Engage with the DADTCO/IFDC/Dutch government initiative which provides market linkage forfarmers through mobile processing with improved production practices to explore areas forreplication.Improve Production and Productivity Engage with the IFDC cassava production team to gain a better understanding of their supportactivities to small cassava farmers around group formation, production techniques, and accessto services; Promote the consistent use of improved high yielding, disease resistant, cassava varietiescoming from certified nurseries where the varieties can be traced; Promote good agronomic practices through public and private extension to farmers as a way ofimproving productivity, including improving access to and use of fertilisers, herbicides,pesticides, etc to farmers;Analyze the constraints around the commercial supply of labour saving devices (harvester,lifter) that could reduce the labour cost of farmers;Enable the provision of viable and relevant extension services to farmers; andImprove the capacity of nurseries to provide consistent varieties with the traits desired by theprocessing companies and to develop viable business models for commercial distribution. Improve Processing to Meet the Supply Chain Needs of the HQCF Market Improve the MPC technology to facilitate the intermediate processing to reduce the weight andstabilize the cassava raw material, which will reduce the transport costs and facilitate logisticaloperations; Strengthen capacity of processors to optimize product quality and reduce operational cost ofproduc
Specifically, the study team was mandated to study cassava production, processing and market structures, major opportunity for growth, supporting organizations, regulatory framework, constraints and solutions and suggested actions for future intervention for sustainable economic growth of the
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by upgrading value chains for new cassava products such as High Quality Cassava Flour (HQCF). This report revisits the value chains for cassava and cassava products in Tanzania and aims to develop new ideas for future interventions based on an up to date picture of the key and emerging demand drivers.
Product Value Chain (PLM), Procurement, Maintenance, Manufacturing, Value Chain Execution, and Value Chain Planning. New this year is a Cross Value Chain track, an integrated view across all areas. Product Value Chain Solution Area The Product Value Chain Solution Area
This report provides a unique assessment of the palm oil value chain in the Niger Delta area of Nigeria and its actors of value chain functions, as well as impact on economic diversification and the environment. It was commissioned by the Partnership Initiative for the Niger Delta (PIND), as part of its
1Faculty of Food Science and Nutrition, University Malaysia Sabah, Malaysia 2 Japan International Research Center for Agricultural Sciences, Tsukuba 305-8686 Japan Email: 1jsmsulthan@gmail.com, 2krachaai@ybb.ne.jp ABSTRACT Modified cassava starch (MCS) is a product derived from cassava chips that uses a principle of modifying
and the national household surveys in terms of reported cassava production and yields further underscore the need for methodological research for improving the statistics on root, tuber and tree crops in general, and cassava in particular. Considering the importance of cassava for food security and the absence of best practices in
non-fermented cassava flour. It focuses on quality assurance of the raw materials, processing, hygiene, storage and transportation, packaging and labeling. The manual outlines the operational steps or procedures that should be followed in the manufacture of safe and good quality cassava flour.
the methods described in ASTM-C181 [4] and ISO 1927-3 [5]. From these results, the WI (based on the four first rams, calculated in Eq. (1) ), the extended WI (based on all 100 rams, calcu- lated in Eq. (2)) and changes in height and changes in density per ram as reported by the auto- mated sand-rammer. The density calculation is based on the .
