International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
ROOT AND TUBER SYSTEMS PROGRAM:
Commercial Viability of Agro-enterprises
Year 2007
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
IN THIS PRESENTATION:
1. Cassava Enterprise Development Project in Nigeria
2. Small-scale Cassava Processing and Vertical Integration of the
Cassava Sub-sector in Southern and Eastern Africa
3. Utilization of Cassava Chips in Animal Feed in the ECA
Region
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
THE CASSAVA ENTERPRISE DEVELOPMENT PROJECT
IN NIGERIA
• Main objective is to increase economic opportunities through sustainable and competitive cassava production, processing, marketing and agro-enterprise development in selected communities of the South-South and Southeast States of Nigeria
• Implemented in the States of Abia, Akwa Ibom, Anambra, Bayelsa, Cross River, Delta, Ebonyi, Edo, Enugu, Imo, and Rivers
• In partnership with the Federal Ministry of Agriculture and Water Resources, National Root Crops Research Institute (NRCRI), Root and Tuber Expansion Programme (RTEP), Agricultural Development Programmes (ADPs), farmers, and private investors
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
PRODUCTION PROCESSING MARKETING
• create awareness
• training (crop prodn and mgt)
• Cluster farming
• Setting-up and training service
providers
• Link to input suppliers (agro-
chemicals, cuttings)
• demo on farm machine utilization
• Training on processing technologies
• Linking cassava processors to machine
fabricators
• Training on equipment and general
factory maintenance and hygiene
• Mechanized farming
• Guaranteed supply of farming
inputs
Guaranteed supply of raw
cassava tubers for processing
BUSINESS DEVELOPMENT SERVICES
• Facilitate establishment
of market linkages
CREATED JOBS, IMPROVED LIVELIHOODS
BIRD’S EYEVIEW OF ACTIVITIES
Improved
regularity of supply
of processed
products
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
CEDP ACHIEVEMENTS AS OF 2007 END
• Introduced 43 improved CMD resistant cassava varieties with a potential yield of
over 30 Mt/ha. Ten of these have been released and seven more submitted to the
committee for approval
• More than 200,000 farmers are planting improved varieties and the area currently
under sustainable land management is over 19,000 ha
• Commercial farms now exist
• 120,000 farmers received improved
CMD resistant varieties, and their
yields increased from 11 Mt/ha to
25.6 Mt/ha.
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
28.4
28.3
23.2
24.7
24.2
27.3
25.4
27.1
21.7
12.1
13.4
13.9
15.1
10.6
15.8
10.5
11.6
12.3
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Anambra
Abia
A' Ibom
Cr. River
Delta
Ebonyi
Edo
Enugu
Imo
Sta
tes
Yield t/ha
Loc_yld
Imp_yld
Yield of improved and local cassava varieties in farmers fields by State
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
• Established 451 processing
enterprises, 71% of which started
operations within 2007. The
types of processing centres are
SMEs (1-2 Mt/day), MPCs (<1
Mt/day), ICs, and mobile
cassava graters (0.5 Mt/day)
The new mobile grater entrepreneurs in
Enugu State (capacity 400 kg/day)
Job creation for youth and women
A micro processing center (MPC) in
Cross River State (capacity 600 kg/day)
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
• In these enterprises, 3,000 new jobs were created.
• Generated an accumulative income of N1,400,465,436 or $11,868,251.15 USD
(December 2007 exchange rate of 1USD=118N):
Mobile grater enterprises (MGEs) = 0.78%
Micro-processing centers (MPCs) = 2.58%
Small to medium-scale enterprises (SMEs) = 27.98%
Sales of fresh cassava tubers by farmer-beneficiaries = 68.10%
Weed control service enterprises = 0.56%
• In collaboration with Ekha Agro Farms Limited, the largest glucose syrup factory
in Africa was built in Ogun State, which has saved Nigeria $15 million per annum
on importation
• Promoted local, national, regional and international trade by linking producers,
fabricators and processors to markets
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
• Some examples:
The Aquada Enterprise (Abia State) now exports Scintilla hyper-fine gari flour to
Baltimore, USA under the AGOA Initiative. Export to date is 11 tons valued at
$46,875.00.
Drena Farms Limited (Delta State) now exports Gari and fufu to London and New
York in the USA. Export to date is 35 t valued at $22,400.00.
“White garri” for export
from Jon Tudy Foods in
Delta State
Jon Tudy Foods (Delta State) now
supplies 2,700 20-pound-bag gari to
USA and currently has an order of
3,000 bags per month.
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Quality and
Standards
Quality and standard
specifications are available for
cassava flour/composite flour,
Gari & Starch by Standards
organization of Nigeria. The
Standards was largely derived
from ISO, Codex Alimentarius.
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Financial Performance of Sample Enterprises (21% of 65%)
BENEFITS & COSTS
SAMPLE ENTERPRISES, ABIA STATE
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Um
uaba
li
Igere
Osisiom
a
Ngw
a 1
Ngw
a 2
Um
uahia1
Alayi
Ikwan
o
Um
udike
Um
uahia 2
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
BENEFITS & COSTS
SAMPLE ENTERPRISES, AKWA IBOM STATE
-40,000
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Nun
g Et
ap
Uyo
1
Nun
g Es
i
Oka
p Ndu
a
Uyo
2
Aba
k
uyo 3
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, ANAMBRA STATE
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Umuze Ihiala AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, BAYELSA STATE
-20,000
0
20,000
40,000
60,000
80,000
100,000
Bay
elsa
1
Bay
elsa
2
Ned
ugo
Sagb
ama
Gweg
we
Bay
elsa
3
Bay
elsa
4
Ogb
ia
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
COSTS & BENEFITS
SAMPLE ENTERPRISES, CROSS RIVER STATE
-40,000
-20,000
0
20,000
40,000
60,000
80,000
100,000
Abualegu Kanyang Kesimekpa NTABE Godilogo AVERAGE
VA
LU
E (
Nair
a) FIXED COST/Location
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, DELTA STATE
-20,000
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Ugh
eli
Otor-ow
eh
Sape
le 1
Sape
le 2
Kwale
Nsu
kwa 1
Nsu
kwa 2
Nsu
kwa 3
Agb
or
Aba
vo
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, EBONYI STATE
-20,000
0
20,000
40,000
60,000
80,000
Abakaliki Ebonyi 2 Ebonyi 3 AVERAGE
VA
LU
E (
Naira) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, EDO STATE
-100,000
-50,000
0
50,000
100,000
150,000
Auc
hi
Idum
oza
Evb
odia
Ugo
Ivbiaro
Igbo
loba
Igba
nike
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
COSTS & BENEFITS
SAMPLE ENTERPRISES, ENUGU STATE
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Nike Nsuka Enugu 3 AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, IMO STATE
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Imo 1 Imo 2 Ave
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
COSTS & BENEFITS
SAMPLE ENTERPRISES, RIVERS STATE
-40,000
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Bori
Ban
-Ogo
i
Umue
bulu
Kpo
rak Fa
rms
Omok
wa Fa
rm
AVERAGE
VA
LU
E (
Nair
a) FIXED COST
VARIABLE COST
TOTAL COST
TOTAL SALES, 1 TON
NET INCOME, 1 TON
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Not all enterprises are making profit
• Internal group problems
• Poor accountability
• Breakdown of machines
CEDP’s approach to challenges mitigating profit:
• Community analysis before
intervention
• Part contribution by community
• Agroenterprise training
• Equipment maintenance training
• Conflict resolution
with group members
• Regular visits
• Cross enterprise visits
• Linkages to markets
AVERAGE COSTS & BENEFITS
SAMPLE ENTERPRISES, ALL CEDP STATES
-20,0000
20,00040,00060,00080,000
100,000
Abia
A.Ibo
m
Ana
mbra
Bay
elsa
C.R
iver
Delta
Ebo
nyi
Edo
Enu
guIm
o
Rivers
AVERAGE
VA
LU
E (
Nair
a)
FIXED COST
VARIABLE COST
AVERAGE TOTAL COST
SALES FROM ONE TON
NET INCOME
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Some Challenges
• Limited capacity of local fabricators to produce high quality processing machines
even though machinery fabrication has been localized in the States
• Inconsistent policies
• High production costs (manual labour)
• Restive youths
• Militants
• Political problems
• Poor infrastructure (particularly in the Niger Delta region)
• Internal group disagreements, especially with the management of the MPCs
• Enterprises are facing difficulty to sell cassava to flour millers as a result of the non-
enforcement of the policy to use 10% of cassava flour in bread
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
RESULTS/OUTCOMES
• Small scale farmers, private investors and NGOs have adopted the HQCP
technologies
• Project outputs have influenced development of National standards for cassava
products by Standards bureau of Project Countries
Madagascar – 4 National Standards Approved (Roots, Starch, HQCF, Chips)
Tanzania - – 4 National Standards Approved (Starch, HQCF, Chips, HCN
Analysis)
Zambia– 2 National Standards Approved (HQCF, Chips)
• National Committees were formed partly based on the project outputs/experience
Tanzania - Ministerial Committee on Cassava Development
Committee on Standards for Root and Tubers and their by products
Zambia - Technical Committee on Standards for cassava products
Madagascar - National Committee on Standards for cassava products
THE SMALL-SCALE CASSAVA PROCESSING AND VERTICAL
INTEGRATION OF THE CASSAVA SUB-SECTOR IN
SOUTHERN AND EASTERN AFRICA
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Musa - Bungu Group
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
RESULTS
• 8 farmer groups sensitized on production of high quality chips
• 9 local fabricators were trained on chipper fabrication + 15 local artisans trained
in machine operation and maintenance, drier construction and warehouse
maintenance.
• The introduction of combined improved processing methods reduced on
moisture retention, aflatoxin contamination and cyanide toxicity after chips
drying, while bag stacking on the wooden pallets reduced on moisture
uptake/pickup, aflatoxin contamination, insect damage and discoloration of dried
cassava chips during storage
• Increased use of improved technologies for processing high quality cassava
chips in the region
UTILIZATION OF CASSAVA CHIPS IN ANIMAL FEED IN THE
ECA REGION
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
• Well-organized and positioned market-oriented farmer groups with market
linkages in place
• Heightened positive farmers’ attitude and enthusiasm towards cassava as a high
income crop
• Improved product quality, reduced processing cost, increased product value
(Uganda: increase of 20-26% in product value; ave. 37.5% Gross Margin)
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org
Abass, A.; Asiedu, R.; Davis-Mussagy, M.; Ntawuruhunga, P.;
Okechukwu, R.; Sanni, L.; Tarawali, G.