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Global Futures and Strategic Foresight Project Policy, Institutions and Markets CRP
Cassava Value Chains WorkshopCIAT, Cali, ColombiaAugust 24-26, 2016
BERNARDO OSPINA PATIÑOExecutive Director - CLAYUCA Corporation
WHY ISN´T COLOMBIA THE LAC VERSION OF THAILAND FOR THE CASSAVA CROP?
THAILAND – A CASSAVA KINGDOM
Source: Klanarong Sriroth, (SCST). Kasetsart University & BIOTEC. 2013,
CASSAVA – A CASH CROP FOR THAILAND FARMERS
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
CASSAVA – AN INDUSTRIAL CROP
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
Source: Thai Tapioca Starch Association, TTSA (2010)
CASSAVA IN THAILAND: CONSOLIDATED MARKET STRUCTURE
Thailand: World N. 1 Cassava ExporterCassava Exports
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
Thailand Cassava Sector
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
Cassava in Latin America and the Caribbean:
Maize and cassava plants
Mochica culture – Peru
Museum Amano, Lima, Perú
1300 AC
An ancient culture
Cassava Innovation in Colombia:
1980´s
First public sector-initiated effort topromote cassava agroindustrial development
with small-scale farmers
The North Coast of Colombia, 1980´S
• Population poor by national standards
76% vs. 64% with unsatisfied basic needs
55% vs. 36% in misery
• Semi-arid region with few crop alternatives:
cassava : one of the most popular crops
• Important for food security and cash income
40% of small farmers income
• Employment generator:
7.3 million wage-days per year
Colombian Political, Economic and Social Environment in 1980s
• Import-substitution policy to protect nationalproduction
• Integrated Rural Development (IRD) approach: (subsidized credit, land reform, research, technicalassistance )
• External donor support: CIDA, WFP
• Organizational processes in place as a result of social struggles to secure access to land
Agricultural Development Model
The Challenge• High cassava production as a result of
land reform and DRI-program credit
• Stagnant demand for fresh cassava: depressed prices
• Massive credit default
• Failure of initial DRI-program basicpremise
• CIAT help requested to find a solution
CIAT in the 1980s
Commodity-based Program with multi-disciplinaryresearch
Lack of adoption of cassava technologies in LatinAmerica created doubts about the impact of cassavaresearch
Demand studies identified new market opportunities for
cassava (animal feed)
Internal planning exercises led to a change in strategy:
research only to R&D
primary production to agri-food chain
ICRDP Methodology
Planning at the macro level
Commercial expansion
Planning at the micro level
Pilot project
INTEGRATEDCASSAVA
RESEARCH &DEVELOPMENT
PROJECTS(ICRDPs)
Best-bet Solution
Experience on cassava dryingrelated to Asia (Thailand)
Public-sector Initiated Innovation Process
Technologicalprototype simple,
small-scale and withlow investmentrequirements
Organizationalprototype based onsmall-scale farmergroups of 25-30 farmers to manage theemerging rural agroindustries
ResearchTechnical
AssistanceMarketing Organization Credit
Strong Public Sector Involvement
Small Cassava Farmer Organizations
DRI-Program
CIDA WFP
CORFAS
ICA
Caja Agraria
INCORA
CIAT
SENA
DANCOOP
CECORA
CORFAS
Caja
Agraria
CORFAS
ICA
CIAT
CORFAS
CECORA
Private Sector participation in the Innovation Process
• Private sector role : end-user; the market
Out scaling of dry-cassava agroindustries: (1981-89)
0
1000
2000
3000
4000
5000
6000
7000
8000
1981 1982 1983 1984 1985 1986 1987 1988 1989
Pro
cessin
g C
apacit
y (M
T)
Year
Cooperatives Private Entreprenuers
Trends in cassava prices paid to producers in the North Coast of Colombia, 1975-90
0
50000
100000
150000
200000
250000
Year
Fresh Market Dry-cassava Plant
- 6.2 3.5
0.03
Start of
the ICRDP
PeriodCol $ / kg (1998)
Trends in Cassava Area and Yield in the North Coast of Colombia, 1975-93
0
2000
4000
6000
8000
10000
12000
0
20000
40000
60000
80000
100000
120000
140000
75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93
(kg
/ha)
(ha)
Year
Area Yields
-0.4
-2.1
0.6
7.0
Start of the
ICRDP
Period
“Before, we didn’t eat three meals per
day… if we had breakfast; we didn’t have
lunch. And now… I said that there was a
change. When we got this land in 1971,
we used to plant a quarter or half of an
hectare… and now we even plant 5
hectares with cassava. Therefore, things
have improved.
Don Carlos, cassava farmer and member of COINPROSAN, Segovia, Sampués, Sucre
“I was able to support my family, educate
my children… Since these programs came,
my life has changed from a poor peasant
who didn’t have anything to a peasant who
has enough to eat... I have already told you
that all my children are professionals… all of
them because of the land reform and the
DRI-program.
José Ortega, cassava farmer and member of COAPROBE, Montañita, Betulia, Sucre
Voices of Impact
The Political, Economic and Social Environment in the 1990s
• Free market policies, economy open to to external competition
• Massive imports of grains to attend the growing demand of the feed industry in Colombia (1 million TM per year)
• Donor and public sector support reduced to a minimum
• Competitiveness based on lower wages and only marginally on innovation
• Limited access to credit
The new macro-scenario, 1990s
• Public sector: reduced support to a minimum and places policies that affect the agroindustry negatively
• Donors: absent
• Local support organizations: replaced public sector and donor support
• Private sector: continued to act only as end-user
Trends in Cassava Area and Yield in the North Coast of Colombia, 1975-99
0
2000
4000
6000
8000
10000
12000
0
20000
40000
60000
80000
100000
120000
140000
(kg/h
a)
(ha)
Year
Area Yields
-0.4
-2.1 0.6
7.0
-0.2
-1.3
Start of ICRDP
0
50000
100000
150000
200000
250000
(19
98
$C
ol/
Kg
)
Year
Fresh Market Dry-cassava Plant
- 6.2 3.5 - 5.0
11.2
0.03- 4.4 0.01
Start of the
ICRDP Period
Start of
CLAYUCA Period
Trends in cassava prices paid to producers in the North Coast of
Colombia, 1975-99
Trends in cassava prices and dry cassava production in the North Coast of
Colombia (1981-2001)
0
10000
20000
30000
40000
50000
60000
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Pro
ducti
on (M
T)
Pri
ces
(19
98
$C
ol/
Kg
)
Year
Dry-cassava prices Cassava roots prices Dry-cassava production
-0.02-5.5
62.4 -11.3
Start of the
CLAYUCA Period
74.8
1.6
Small-scale
Mostly land rentersfew landowners
No inputs
Organized intoassociations
Yield = 10-12 MT / ha
0.5-1.0 ha
SMALL-SCALE CASSAVA FARMERS –COLOMBIA NOTH COAST, TODAY
CASSAVA VALUE CHAIN DYNAMICS(SMALL-SCALE, LANDLESS FARMERS); 12 MT / ha
Dry cassava chips offers negative returnto farmers and processors
11.3
9.2
11.3
21.8
14.9
0
10
20
30
40
50
60
70
80
USD
/ M
T o
f ca
ssav
a ro
ots
Dry Cassava Chips Production costs(Share of production costs for dry cassava chips
Harvesting
Weeding
Land rental
Planting
Land preparation172.5
-13.1
3.4
23.7
-15
35
85
135
185
Farm gate pricecassava roots
Transport Processing cost Producer margin
USD
$ /
MT
dry
cas
sava
ch
ips
Value distribution (Relative costs of producing 1 ton of dry cassava chips from
2,6 t of fresh cassava roots)
Small- to médium-scale
Mostly land renters , fewlandowners
Use modern inputs (fertilizers, herbicides, credit, technicalassistance, administration)
Organized into primary- and secondary-degree associations
Yield= 20 MT / ha
Yield = 8 MT dry cassava chips /ha
FARMERS ASSOCIATION (Producers and Processors, dry cassava chips) chips processors)
FARMERS ASSOCIATION (Producers and Processors, dry cassava chips) chips processors)
CASSAVA VALUE CHAIN DYNAMICS(Farmers Association, Commercial Scale); 20 MT/ ha; 8 MT dry cassava chips / ha
Dry cassava chips offers a fair return to farmers and processors
Source: ANPPY, 266 hectáreas Project; 2013.
11.9
24.3
23.3
61.9
41.4
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
US$
to
n d
ry c
assa
va c
hip
s
Dry Cassava Chips Production Costs(Share of production costs)
Land preparation
Hand Labor
Inputs
Harvesting &Drying
Indirect Costs
162.7
20.3
50
70
90
110
130
150
170
190
cus
$ /
to
n o
f d
ryca
ssav
ach
ips
Value distribution(Relative costs of producing 1 ton of drycassava chips from 2,6 t of fresh cassava
roots)
Production costs Farmers marginncosts
CASSAVA VALUE CHAIN DYNAMICS(COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
Commercial-scale
Mostly land renting
Use modern inputs (fertilizers, herbicides, credit, technical assistance, administration)
Yield= 25 MT / ha
CASSAVA VALUE CHAIN DYNAMICS(COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
6.8
5.7
9.1
17.0
6.1
14.0
10.8
5.4
0
10
20
30
40
50
60
70
80
90
US
$ /
MT
fres
h c
assa
va r
oo
ts
Fresh cassava roots production costs(Share of production costs)
Contingencies
Land Renting
Harvest
Pest & DiseaseControl
Fertilizer & LimeApplication
Weed control
Planting &Seeds
Landpreparation
CASSAVA VALUE CHAIN DYNAMICS(COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
FRESH CASSAVA MARKETS OFFERS THE HIGHEST RETURN(FRESH; FROZEN; PARAFFIN-COATED)
75
67.8
30.5
98
170
237
0
50
100
150
200
250
300
350
400
450
Production Costs Processing costs Transportation Producer marginfresh roots
Producer marginfrozen cassava
Producer marginparaffin-coatedcassava roots
US
$ /
to
n f
resh
cas
sava
ro
ots
Value distributionRelative costs of producing 1 ton of fresh cassava roots
CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA
PRODUCTION
PRODUCTS
PROCESSING
CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA
PRODUCTION
PRODUCTS
PROCESSING
POLICY
GRACIAS!
BERNARDO OSPINA PATIÑODirector Ejecutivo – Corporacion CLAYUCA
THANK YOU!