Cassava Enterprise Development Project in Nigeria,Small-scale Cassava Processing and Vertical Integration of the Cassava Sub-sector in Southern and Eastern Africa,Utilization of Cassava Chips in Animal Feed in the ECA Region

1. 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

2. 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

3. 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

4. BIRD’S EYEVIEW OF ACTIVITIES
PRODUCTION PROCESSING MARKETING
• create awareness • Training on processing technologies • Facilitate establishment
• training (crop prodn and mgt) • Linking cassava processors to machine
of market linkages
• Cluster farming
fabricators
• Setting-up and training service
• Training on equipment and general
factory maintenance and hygiene
providers
• Link to input suppliers (agro-
chemicals, cuttings) BUSINESS DEVELOPMENT SERVICES
• demo on farm machine utilization
• Mechanized farming Guaranteed supply of raw Improved
regularity of supply
• Guaranteed supply of farming
cassava tubers for processing
of processed
inputs products
CREATED JOBS, IMPROVED LIVELIHOODS
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

5. 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

6. Yield of improved and local cassava varieties in farmers fields by State
12.3
Imo 21.7 Loc_yld
11.6 Imp_yld
Enugu 27.1
10.5
Edo 25.4
15.8
Ebonyi 27.3
States
10.6
Delta 24.2
15.1
Cr. River 24.7
13.9
A' Ibom 23.2
13.4
Abia 28.3
12.1
Anambra 28.4
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Yield t/ha
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

7. • 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)
A micro processing center (MPC) in
Job creation for youth and women Cross River State (capacity 600 kg/day)
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

8. • 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

9. • 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.
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.
“White garri” for export
from Jon Tudy Foods in
Delta State
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

10. 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

11. Financial Performance of Sample Enterprises (21% of 65%)
BENEFITS & COSTS BENEFITS & COSTS
SAMPLE ENTERPRISES, ABIA STATE SAMPLE ENTERPRISES, AKWA IBOM STATE
80,000 120,000
70,000 100,000
FIXED COST
VALUE (Naira)
60,000
VARIABLE COST
80,000 FIXED COST
50,000
VALUE (Naira)
40,000 TOTAL COST 60,000 VARIABLE COST
30,000 TOTAL SALES, 1 TON 40,000 TOTAL COST
20,000 NET INCOME, 1 TON 20,000 TOTAL SALES, 1 TON
10,000
0 NET INCOME, 1 TON
0
-20,000
i
E
ap
-10,000
o3
o1
o2
ak
ua
Es
E
1
li
Um ike
1
2
2
ere
AG
a
i
no
AG
ay
hia
ba
Et
om
Ab
Nd
wa
wa
hia
uy
Uy
Uy
ng
wa
ud
Ig
Al
ua
ua
-40,000
ER
ER
ng
isi
Ng
Ng
ua
Um
Nu
Ik
ap
Um
Um
Os
Nu
AV
AV
Ok
COSTS & BENEFITS COSTS & BENEFITS
SAMPLE ENTERPRISES, ANAMBRA STATE SAMPLE ENTERPRISES, BAYELSA STATE
80,000 100,000
70,000
80,000
60,000 FIXED COST
VALUE (Naira)
FIXED COST 60,000
VARIABLE COST
VALUE (Naira)
50,000
VARIABLE COST
40,000 40,000 TOTAL COST
TOTAL COST
30,000 20,000 TOTAL SALES, 1 TON
TOTAL SALES, 1 TON
20,000 NET INCOME, 1 TON
NET INCOME, 1 TON 0
10,000
E
a
1
2
3
4
we
go
bia
-20,000
am
AG
ls a
ls a
ls a
ls a
du
0 eg
Og
gb
ye
ye
ye
ye
ER
Ne
Gw
Sa
Umuze Ihiala AVERAGE
Ba
Ba
Ba
Ba
-10,000
AV
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

12. COSTS & BENEFITS COSTS & BENEFITS
SAMPLE ENTERPRISES, CROSS RIVER STATE SAMPLE ENTERPRISES, DELTA STATE
100,000 80,000
80,000
70,000
60,000
FIXED COST
VALUE (Naira)
60,000 FIXED COST/Location 50,000
VALUE (Naira)
40,000 VARIABLE COST
40,000 VARIABLE COST
30,000 TOTAL COST
TOTAL COST
20,000 20,000 TOTAL SALES, 1 TON
TOTAL SALES, 1 TON
10,000
NET INCOME, 1 TON NET INCOME, 1 TON
0 0
Abualegu Kanyang Kesimekpa NTABE Godilogo AVERAGE -10,000
i
E
Ab r
Ns a 1
Ns a 2
3
Sa 1
2
Ns ale
ER o
Ot ghel
Sa h
-20,000
bo
AG
AV av
we
le
le
wa
-20,000
Kw
w
w
Ag
pe
pe
-o
U
uk
uk
uk
or
-40,000
COSTS & BENEFITS COSTS & BENEFITS
SAMPLE ENTERPRISES, EBONYI STATE SAMPLE ENTERPRISES, EDO STATE
80,000 150,000
60,000 100,000
FIXED COST FIXED COST
VALUE (Naira)
VALUE (Naira)
40,000 VARIABLE COST 50,000 VARIABLE COST
TOTAL COST TOTAL COST
20,000 TOTAL SALES, 1 TON 0 TOTAL SALES, 1 TON
E
NET INCOME, 1 TON
i
za
ike
dia
o
a
o
NET INCOME, 1 TON
ch
b
iar
Ug
AG
mo
olo
Au
bo
0
an
-50,000
Ivb
ER
Idu
Igb
Ev
Igb
AV
Abakaliki Ebonyi 2 Ebonyi 3 AVERAGE
-20,000 -100,000
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

13. COSTS & BENEFITS COSTS & BENEFITS
SAMPLE ENTERPRISES, ENUGU STATE SAMPLE ENTERPRISES, IMO STATE
70,000 70,000
60,000 60,000
50,000 FIXED COST FIXED COST
50,000
VALUE (Naira)
VALUE (Naira)
VARIABLE COST VARIABLE COST
40,000 40,000
TOTAL COST TOTAL COST
30,000 30,000
TOTAL SALES, 1 TON TOTAL SALES, 1 TON
20,000 20,000
NET INCOME, 1 TON NET INCOME, 1 TON
10,000 10,000
0 0
Nike Nsuka Enugu 3 AVERAGE Imo 1 Imo 2 Ave
COSTS & BENEFITS
SAMPLE ENTERPRISES, RIVERS STATE
120,000
100,000
80,000 FIXED COST
VALUE (Naira)
60,000 VARIABLE COST
40,000 TOTAL COST
20,000 TOTAL SALES, 1 TON
0 NET INCOME, 1 TON
-20,000
lu
E
i
rm
ri
s
go
arm
AG
bu
Bo
Fa
n-O
ue
-40,000
kF
ER
wa
Um
Ba
AV
ora
ok
Om
Kp
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

14. AVERAGE COSTS & BENEFITS
SAMPLE ENTERPRISES, ALL CEDP STATES
100,000
80,000
VALUE (Naira)
60,000 FIXED COST
40,000 VARIABLE COST
20,000 AVERAGE TOTAL COST
0
-20,000 SALES FROM ONE TON
ER rs
r
E
o
A. ia
An m
C. sa
yi
u
Eb ta
En o
bra
NET INCOME
ve
Im
ug
Ed
AG
AV ve
Ab
Ibo
l
on
l
De
ye
Ri
am
Ri
Ba
Not all enterprises are making profit CEDP’s approach to challenges mitigating profit:
• Internal group problems • Community analysis before • Conflict resolution
• Poor accountability intervention with group members
• Breakdown of machines • Part contribution by community • Regular visits
• Agroenterprise training • Cross enterprise visits
• Equipment maintenance training • Linkages to markets
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

15. 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

16. THE SMALL-SCALE CASSAVA PROCESSING AND VERTICAL
INTEGRATION OF THE CASSAVA SUB-SECTOR IN
SOUTHERN AND EASTERN AFRICA
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
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

17. Musa - Bungu Group
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

18. UTILIZATION OF CASSAVA CHIPS IN ANIMAL FEED IN THE
ECA REGION
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
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org

19. • 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

20. Abass, A.; Asiedu, R.; Davis-Mussagy, M.; Ntawuruhunga, P.;
Okechukwu, R.; Sanni, L.; Tarawali, G.
International Institute of Tropical Agriculture – Institut international d’agriculture tropicale – www.iita.org