SlideShare a Scribd company logo
1 of 19
Africa Innovations Institute
Plot 78, Old Kiira Road,
Bukoto.
P. O. Box 34981,
Kampala.
Tel. 0414530288
HQCF AND CAVA
Cassava Adding Value for Africa II is a project funded by the Bill and Mellinda
Gates foundation in it’s second phase running across five African countries including
Ghana, Nigeria, Malawi, Tanzania and Uganda. It is implemented by Africa
Innovations Institute in Uganda and aims at increasing the incomes of small holder
farmers through value addition, yield increase in cassava. Through value addition it
promotes the processing of cassava into High Quality Cassava (Tapioca) Flour also
called improved quality unfermented cassava flour. The flour is processed to reduce the
cyanogenic glucoside levels and moisture content and to increase shelf life of cassava
flour.
HQCF is processed within a time frame of 24 hours from harvest of the roots to
preserve its freshness and to avoid fermentation. Currently the most common drying
method in Uganda is sundrying on raised metallic racks with Uganda set to receive two
artificial dryers of 3000kgs per shift of eight hours due in October. This will ensure
consistent quality and supply as compared to the sun drying method for the markets in
Uganda and beyond.
There are two types of HQCF namely HQCFC and HQCFG which slightly vary
depending on the method of processing. HQCFC has a relatively mild cassava flour
scent, larger particle size than HQCFG and is mildly creamy in colour. It is higher in
starch content, around 80% and is processed without pressing; the method which
reduces starch content in the cassava mash. HQCFG however is processed with the
pressing included, which results in a softer and finer flour, lower in starch, around 70%.
The latter is favorited for bakery, composite and paperboard markets because of it’s
qualities. It also has a smaller particle size than HQCFC. HQCFC is favourited by the
breweries market for it’s high starch content.
WHY INVEST IN CASSAVA FLOUR?
Cassava starch can be used in it’s native form with minimal processes required
for extraction saving the investor costs in fuel and production costs as well as lots of
time. HQCF also known as improved quality cassava flour possesses a strong film, clear
paste, good water holding properties, and stable viscosity. This makes it most suitable
for adhesive purposes; it has great sensory qualities and a blunt taste with clear to sight
which makes it a suitable blending product that adopts the taste and appearance of the
product blended with without interference and lasts longer on the shelf compared to
other products.
WHY HQCF AS COMPARED TO OTHER FLOURS?
Cassava starch-HQCF is non fermented improved quality cassava flour which is
processed within a period of 24 hours. As a result it is low in microbial load, has lower
cyanogenic glucosides (lower cyanide levels due to the processing technology) than
common locally processed cassava flour, is industrially applicable with high starch
content, has a longer storage lifespan.
It has a small particle size as compared to other cereal starches and stronger
binding qualities which make it suitable for adhesive manufacture in paperboard and
plywood, texturizer and thickener in foods like tomato paste, soups and pasta and
toothpaste, a binder in beef sausages and other meat products, breweries and alcohol,
bio ethanol, paint, pharmaceuticals, a hardener in clay tile manufacturing, cooking
briquettes, in yarns and thread manufacture for textiles, a wheat flour substitute in
composite flour, and a diluant for fortificants and bread improvers in milling, in cakes,
biscuit, bagiya and sweets and pastries manufacture.
Initial studies carried out by National Resources Institute United Kingdom in
Ghana and Nigeria where the trials were initially conducted proved that consumer
acceptability of HQCF in products exists and that cassava’s qualities far outweigh those
of other starches in terms of ease of processing since it has no epicarp and can be
processed using the simplest technology and machinery with the extraction process
requiring little to minimal stages of alteration to make it suitable for use.
HQCF conforms to the EAS standards on cassava processing EAS 7402010 and
UNBS standards on cassava flour processing. This ensures it’s industrial applicability.
Cassava in Uganda is the second most farmed crop after maize and is among the
Uganda government’s top 10 priority crops under the Ministry of Agriculture Animal
Industries and Fisheries. This ensures favourable policies which promote it’s
production and availability locally at a cheap price and ensures that research into the
best varieties and farming practices including technical support are widely available
from government and it’s partners which would save the investor extensive costs in
research and partner linkage.
Cassava in Uganda both in farming and in processing attracts no tax as it is one
of the government’s top ten priority crops and similarly agro processing facilities
outside Kampala benefit from income tax waiver when applied for on an annual basis.
It is lower in moisture content bearing between 10 – 12% moisture which aids in
transportation and storage and prevents moulding, and is of lower cost compared to
wheat flour with a kilogram selling at Ush 1500/= at market price and possesses a very
smooth texture compared to maize flour making it a suitable flour for blending in final
products as the particle has stronger absorbance and sensory qualities than maize
particles which remains rough to the taste.
It also has a benefit of absence of mitotoxins which are a risk in maize flour and
pose a health harzard to poultry and humans making it suitable for animal and human
consumption.
As majority of the root tuber is made from starch the process for starch extraction
in cassava is a relatively basic and cost effective as mature root is mainly composed of
starch and water with minimal other compounds including protein. This ensures the
starch can be used in it’s most basic form, saving the investor significant costs in
processing.
Investing in HQCF provides an investor with an opportunity to profit while
fulfilling his corporate social responsibility to maintain environmental sustainability as
the technology used in it’s grating process is fuel efficient at 1 litre per 1000kgs while
with the artificial flash dryer 64 litres per 3000 kgs of flour with minimal or no
emission an added benefit in obtaining international certification. Africa Innovations
Institute partners with NACCRI to train farmers of cassava on safe agronomic practices,
post harvest handling and quality practices within the country. This encourages
dissemination of environmentally friendly training to farmers at the grassroots level
enhancing their livelihoods and securing the environment in the process. Currently the
project is benefitting several small holder farmers with the number expected to reach
24,000 by 2019. With copying practices and multiplier effect the project will change the
nature and face of farming for generations to come.
The current number of households depending largely on farming cassava for
their livelihood in Uganda is 75% of the population and 96% of these are small holder
farmers who largely depend on staples including maize and cassava for food security.
70% of the food staple grown is cassava. The addition of value to cassava increases
income for these small holders improving their access to essential basic needs like
medical care and better education. Currently the number of households benefiting
from cassava through value addition as HQCF is 2000 and this number projected to
increase to 14000 and more as increased production of HQCF and other cassava
products in Uganda is realized. An average farm gate price of fresh cassava roots which
is the largest current form of cassava sold in the market is 100 - 300/= and when value is
added the price per kilogram increases between 600 – 1500/= in the domestic market
which is an income increase of 50 % and 80 % from a farm gate price of 100 and 300/=
respectively. Investing in cassava as an investor would provide a chance to improve the
lives of some of the world’s poorest who live under 1.25$ a day and depend on farming
for livelihood who make up 19.7% of Uganda’s current population.
Uganda is gifted with plenty of natural resources including water and land for
expansion and cheap available labour which would enhance an investor’s productivity
and hence maximize profit.
Investing in value added cassava enhances the lives of Uganda’s over 6,350,400
under 25 year old labour force who are largely unemployed through creating market,
supply and production opportunities along the value chain. The rising trend of youth
joblessness in Uganda at 62% set to increase at 4.2% every year is a worrying trend that
can cripple the growth of the economy by creating more dependants hence reducing
buyer power in the economy. Already the 33 sites processing have generated
employment for youth within their communities who had previously few skills and
were unable to obtain employment within their communities. Majority of these are
women. Investing in HQCF provides an opportunity to be part of the solution by
improving the lives of unemployed people within the community through creating
employment while enhancing the company’s corporate social responsibility.
Cassava value addition through cassava processing increases food security by
enabling storage for prolonged periods of time. HQCF can be stored on shelf at room
temperature for up to 2 years without spoilage when under air tight storage and six
months when in lined polythene bags. This enhances the possibility of accessing export
markets at a cheaper cost as one factor of hindrance is the high perishability and
bulkiness which is reduced through value addition.
Engaging in value addition in cassava through HQCF impacts the market
through enhancement of the introduction of new value added products to the market
and thus creating new demand and new value chains in the economy. This ensures a
stable economy and growth with the country depending less on imports improving the
country’s balance of payment.
HQCF though a relatively fresh concept in Uganda has been around since 1992
when trials were initiated in Ghana and Nigeria by National Resources Institute. It
boasts low competition in the market giving the investor a first mover advantage
essential in creating customer loyalty to the brand. It enables the investor to tailor their
product to the market and set the market standard ahead of any subsequent
competition providing an advantage in the long term for business sustainability and
growth.
The increasing demand for healthier food products is yet another factor that
makes investing in HQCF a profitable venture. HQCF is a product whose gluten level is
low while essentially high in starch content. As cassava is second only to sugarcane as
the world’s highest energy giving food. This makes it a suitable high energy food
without the downside of high gluten levels as in other starchy foods. It is essentially
useful in maintaining lower gluten levels in gluten sensitive patients. Who alone
constitute 8.3% of Uganda’s population and it’s lower cyanide content <10% which
matches with the international standard requirements, lowers the possibility of cyanide
induced poisoning which is common in locally processed and consumed cassava. This
bears an advantage for the investor since it passes local; UNBS, international and
regional; EAS quality standards for cassava flour. Making it essential for Uganda’s
young and energetic population as well as her elderly and icreasingly health conscious
consumers.
HQCF provides for the investor various options as it bears the advantage of
versatility in application. It can be applied as a texturizer and thickener in numerous
food products including tomato paste, soups, pasta, beef sausage; in composite flours,
milling as diluant for fortificants, wheat substitute in biscuits, bagiya, doughnuts, cakes,
pastries; as a binding agent in industrial application including paperboard and
plywood adhesive extender; paint and textile yarn (thread) manufacturing in clay tile
manufacturing, briquettes; in toothpaste and pharmaceuticals as a thickener; livestock
feed including poultry, cattle and fish feed; brewing beer, alcohol and bio ethanol. As a
product with versatile applications both industrially and in home consumption, this
allows for security in business as these various end markets can offer alternative outlets
for HQCF in event of unforeseen limitations in one market as they will be in a better
position to tailor their business model to different outlets that are be subject to variant
market influences. It increases profit maximization and enhances risk mitigation.
It’s performance as an application in all these products out performed it’s
competitor products: wheat, maize and locally produced cassava flour in having
superior sensory qualities and stronger adhesive binding qualities, longer shelf life in
storage, ease of adaptability, ease of milling and cost benefits, tax and government
exception and stability in prices and yield, lower microbial load, lower cyanogenic
glucosides while retaining a better visual appeal.
The future for cassava and HQCF in Uganda and the world is bright. As we see
rising costs of wheat flour and taxes imposed on imports, fluctuations in foreign
exchange, increasing competition among wheat millers and producers, with the
growing uncertainty about the future of fuel prices, investors need to ensure
engagement in cost reduction to remain sustainable. HQCF provides this option as it is
a low cost preparation process involving less labour and capital intensive investment.
HQCF supply in Uganda currently stands at close to 7000 per annum in 2014 from
Sundrying. It is due to increase by 1,872,000kgs per annum after the acquisition of two
artificial flash dryers in Uganda in October 2015. This will be in addition to the current
production from the sun drying processors who currently process mainly HQCFC.
HQCF, WHEAT AND MAIZE COMPARISON
HQCF WHEAT MAIZE
1.No epicarp, fewer
compounds to separate in
milling process
Has epicarp and more
compounds to separate in
milling process
Has epicarp to separate in
milling process
2.Process involving less
labour and less fuel cost
Longer process involving
labour and power costs
Longer and more expensive
milling process
3.Minimal percentage of
other compounds hence
minimal loss in milling
Loss of flour due to
extraction rate
Loss of vital nutrients in
epicarp
4.Higher in starch second
only to sugarcane
Less starch content than
HQCF
Less starch content than
HQCF
5. No Gluten Has Gluten No gluten
6. Excellent sensory
qualities and faint or no
cassava scent with smooth,
clear and extra fine
particles to taste
Good sensory qualities
with white creamy foggy
particles
Fair sensory qualities with
white creamy foggy
particles
7.Neutral taste and scent
hence adopting the taste
and scent of other
compounds
Strong wheat scent retained
in flour interfering with
final taste of mixed product
Strong maize scent and
rougher particles to taste
8.Longer shelf life in
storage up to six months in
lined bags
Dry storage required Dry storage required
9. Excellent binding
qualities
Good binding qualities Sets and hardly reusable
the next day
10.No taxation on cassava High taxation on wheat Taxation on Maize imports
and agro processing
outside Kampala
imports into Uganda into Uganda
12. Priority crop attracting
government and it’s
partners support
Attracts taxes on import Also a government priority
crop in Uganda
14. Resilient under harsh
weather conditions fewer
pests
Vulnerable under harsh
weather conditions
Extremely vulnerable
under harsh weather
conditions
15. Lower investment and
running costs
More capital required for
investment
More capital required for
investment
16. Cyanide content
reduced to <10ppm after
processing
No cyanide High risk of Mitotoxin
poisoning when used in
feeding.
PROCESSING HQCF
The fresh roots are harvested from the farm and transported to the processing site
where they are peeled and soaked for 24 hours to lower the cyanogenic glucoside levels
and then chipped or grated depending on the required flour. The chipped or grated
root is then dried using sun drying racks or artificial drying method using the flash
dryer. With sun drying the process takes 3 – 4 hours and with artificial drying this can
take between 5 seconds using Flash dryer or to 1 hour depending on the other type of
machine used. The output with sun drying is between 500 – 800 kg per day and
artificial drying using the flash dryer is 3000kgs per day in an 8hr shift. The dry chips or
mash retain moisture content of 10 – 12% and is then milled and packaged in lined
plastic bags and stored at room temperature.
COMPARISON BETWEEN BUYING HQCF AND PROCESSING HQCF
BUYING PROCESSING
Less cost and quality control Sufficient cost and quality control
Lower level of investment Higher level of investment
Instant applicability Investment set up required before
applicability
Shorter application process Longer application process
Requires flour, packaging, minimal
operational and transportation costs
Requires purchase of machinery,
transportation, importation tax, fresh roots
supply, water, peeling, packaging, higher
loading cost, fuel cost
With buying the flour is loaded onto the truck and transported to the factory where it is
offloaded, repackaged or utilized before delivery to the market outlets.
With processing the roots are identified and purchased from farmers and loaded onto a
truck and transported to the processing site where they are peeled, washed, grated,
pressed and dried using either sun or artificial drying. Then the dry mash is milled and
packaged and transported to the factory where it is repackaged or utilized before
delivery to the market outlet.
The cost per kilogram with buying ready processed flour goes at 1500 or 1400/= and the
cost of processing with the sun is 550/= and artificial drying is 850/=.
BUYING SUN
PROCESSING
ARTIFICIAL
PROCESSING
WHEAT COST MAIZE
COST
1400 550 850 2200 1500
$ 0.50 usd $ 0.20 usd $ 0.30 usd $ 0.79 usd $ 0.53 usd
GENERAL PERCENTAGE COST REDUCTION IN USE OF HQCF FROM COST OF
WHEAT
BUYING % REDUCTION SUN PROCESSING %
REDUCTION
ARTIFICIAL PROCESSING
% REDUCTION
36.3 75 61.4
GENERAL PERCENTAGE REDUCTION FROM COST OF MAIZE at 1500 (pkg)
BUYING % REDUCTION SUN PROCESSING %
REDUCTION
ARTIFICIAL PROCESSING
% REDUCTION
6.6 63 43
With sun processing the price reduction is lowest however there are moderate
limitations in supply consistency during the rain season.
With artificial drying the price reduction is optimum and provides the best consistency
in terms of quality and supply as it is not limited by weather conditions.
With buying the price in negotiable with the processors depending on delivery
arrangements and it can be extended to both artificial drying processors and sun drying
processors.
PERCENTAGE REDUCTION WITH COMBINED WHEAT AND CASSAVA PER
KILOGRAM OF FLOUR USED IN BISCUITS, BAKERY AND COMPOSITE.
1. IN BUYING HQCF
(AT CASSAVA FLOURCOST OF 1500/= PER KILO)
BREAD AND BISCUITS AT SUBSTITUTION RATE OF 25% CASSAVA FLOURAND
75% WHEAT FLOUR
250G CASSAVA = 375/= (at a cost of 1500 pkg)
750G WHEAT = 3750/= (at a cost of 5000pkg)
SAVING OF WHEAT = 250G WORTH 1250/=
ACTUAL SAVING = 875/= PKG OF FLOURUSED TO MAKE BREAD
39.7% SAVE
2. IN PRODUCING ONES OWN HQCF BY SUNDRYING
FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR
COMBINATION
ASSUMING COST OF PRODUCTION = 550 PER KG CASSAVA FLOURAND 5000
PER KG OF WHEAT FLOUR
250G CASSAVA = 137/= PKG
750G WHEAT = 3750/= PER KG
SAVING 250G WHEAT FLOURPER KILO USED WORTH 1250/=PKG
ACTUAL SAVING = 1113/= PER KILOGRAM OF FLOUR USED TO MAKE
BISCUITS/BREAD
50.5% SAVE
3. IN PRODUCING ONES OWN BY FLASHDRYING
FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR
ASSUMING COST OF PRODUCTION = 850 PER KG CASSAVA FLOURAND 5000
PER KG OF WHEAT FLOUR
250G CASSAVA = 213/= PKG
750G WHEAT = 3750/= PER KG
SAVING 250G WHEAT FLOURPER KILO USED WORTH 1250/=PKG
ACTUAL SAVING = 1037/= PER KILOGRAM OF FLOUR USED TO MAKE
BREAD/BISCUITS
47% SAVE
IN COMPOSITE
EG; PREMIXES, DILUANTS AT RATE OF 10% CASSAVA FLOUR AND 90%
WHEAT FLOUR
1. IN BUYING
AT 1500 PER KG OF CASSAVA FLOUR AND WHEAT AT 2200/= PER KG
100G CASSAVA FLOUR = 150/= PKG
900 G WHEAT FLOUR = 1980/= PKG
SAVE 100G WHEAT PER KILO OF FLOUR= 220/=
ACTUAL SAVING = 70/= PER KILO GRAM OF FLOUR MADE
3% SAVE
2. IN PRODUCING OWN USING SUN DRYING
AT COST OF 550/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR
100G CASSAVA FLOUR= 55/= PKG
900G WHEAT FLOUR = 1980/= PKG
SAVE 100G WHEAT PER KILO OF FLOUR= 220/=
ACTUAL SAVING = 165/= PER KILO GRAM OF FLOUR MADE
7.5% SAVE
3. IN PRODUCINGOWN USING FLASH DRYING
AT COST OF 850/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR
100G CASSAVA FLOUR = 85/= PKG
900G WHEAT FLOUR = 1980/= PKG
SAVE 100G WHEAT PER KILO OF FLOUR= 220/=
ACTUAL SAVING = 135/= PER KILO GRAM OF FLOUR MADE
6.14% SAVE
FOR PREMIXES IN COMPOSITE
AT 1500 PER KG OF CASSAVA FLOURAND WHEAT OR MILLET AT 2200/= PER KG
20% CASSAVA FLOUR AND 80% WHEAT FLOUR COMBINED
200G CASSAVA FLOUR = 300/= PKG
800 G WHEAT FLOUR= 1760/= PKG
SAVE 200G WHEAT PER KILO OF WHEATFLOUR = 300/=
ACTUAL SAVING = 140/= PER KILO GRAM OF FLOUR MADE
6.1% SAVE
AT A COST OF 1400 PER KILO (IN BUYING HQCF
ALREADY PROCESSED)
1. COMPOSITE AT 10% CASSAVA FLOUR AND 90% WHEAT FLOUR
COMBINED
CASSAVA AT COST OF 1400/= PER KG CASSAVA AND 2200 PKG OF WHEAT
FLOUR
100G CASSAVA FLOUR = 140/= PKG+
900G WHEAT FLOUR= 1980/= PKG
SAVE 100G WHEAT PER KILO OF FLOUR= 220/=
ACTUAL SAVING = 80/= PER KILO GRAM OF FLOUR MADE
3.6% SAVE
2. BISCUITS AT 20% CASSAVA FLOURAND 80% WHEAT FLOUR
COMBINATION (BUYING)
For biscuits the recommended substitution is between 20 – 30% Improved cassava flour
(HQCF) for hard dough biscuits. The cost variation here would be for a kilo of Wheat
flour the estimated cost being 2200/= and for Improved cassava flour (HQCF) it is
1400/=.The difference in cost is 800/=. This would mean at a 20% substitution rate of
wheat flour with HQCF per kilo of flour used in biscuit making the cost of a kilo of
combined wheat and cassava would be a 36.4% price variance per kilogram of Cassava
flour as compared to wheat.
The price spent on one kilogram of flour for biscuits would be 1760/= (a reduction from
by 20%) + 280 (cost of 20% of I kilo of cassava flour) is 2040. From 2200/= to 2040 is a
price reduction by 160/= (7.3% reduction in cost of flour used in biscuits making). And
2000/= at a 30% substitution rate a 9% reduction in cost spent on 1 kilo of flour used to
make biscuits.
3. QUEEN CAKES
For Queen cakes at a 20% substitution rate would mean a reduction in cost spent on I
kilogram of flour similarly by 7.3% the cost spent on I kilo being 2040/= and a similar
price reduction by 160/=.
Even though Queen cakes can be substituted with 10% – up to 50% cassava flour
aspects of similarity to the non substituted queen cakes must be considered including
shelf and temperature variation performance after storage over long periods of time
and customer preferences.
4. BAGIYA
Bagiya may be made with up to 100% substitution rates depending on the cost needs
and customer preferences. With a 50% substitution rate the cost spent on a kilogram of
combined wheat and cassava flour to make bagiya would be 1100 + 700 =1800/=. This
would be a reduction in cost per kilogram of flour by 400/= (an 18% reduction).
Tomato Paste (as a texturizer and thickener )
The current common thickeners in use include Tomato pulp powder, starches including
potato starch, corn starch, modified starches, hydrocolloids including
carboxymethylcellulose, xanthan gum, locust been gum, guar gum, traganth gum.
Tomatoes used to make tomato ketchup and paste may be substituted with a 20 – 30 %
utilization of Cassava flour (HQCF). This would be done without any changes in
texture and taste as HQCF has a bland taste and smell and is clear to sight hence it
easily adapts the qualities of the substance it blended with. This in addition to the
sensory and other benefits make HQCF a viable substitute for cost reduction in tomato
paste.
At a 30% substitution the cost spent on making 1 kilogram of paste would be at a rate of
5: 1 ( 5 kilograms of tomatoes – 1 kilogram of paste)
5000kg (per I kg of tomatoes in Uganda) * 5 (kgs of fresh tomatoes to make 1 kg of
paste) = 25000/=
Which would be a price reduction to 17,920= from 25,000/=.
A cost reduction by 7,080/= (a 28% reduction in cost spent on tomatoes to make 1
kilogram of paste)
5. IN PAPER (AS AN ADHESIVE)
Cassava starch possesses a strong film, clear paste, good water holding properties, and
stable viscosity. This makes it most suitable for adhesive purposes; at the end of the
wet treatment, when the basic cellulose fiber is beaten to the desired pulp to increase
the strength of the finished paper and to impart body and resistance to scuffing and
folding; at the size press, when the paper sheet or board has been formed and partially
dried, starch (generally oxidized or modified) is usually added to one or both sides of
the paper sheet or board to improve the finish, appearance, strength, and printing
properties; in the coating operation, when a pigment coating is required for paper,
starch acts as a coating agent and as an adhesive.
In paperboard 96.4% of adhesive is made up of flour and the rest is made up of sodium
hydroxide, borax, sodium formaldyhyde for basic adhesive. In some instances clay,
antifoam, sodium bisulphate, calcium stearate or magnesium sulphate may be added.
If 25% substitution of starch used to make glue extender is cassava flour (usually wheat
or maize ) If wheat starch is replaced with cassava flour the cost reduction would be less
by 800/= when HQCF sells at a price of 1400/= per kg. The benefits of cassava starch are
that it provides stronger binding properties and does not set as maize flour does and
can be used for longer.
6. IN BISCUITS
Tests conducted by National Resources Institute in Ghana in 1996 on the consumer
acceptability of cassava flour in the biscuits and bakery products. In greater Accra the
tests showed a consumer acceptability of 35% cassava flour in sweet dough biscuits and
60% in hard dough biscuits, however the recommended maximum substitution is 50%
due to brittleness of products containing high levels of cassava flour.
At 35% substitution for 0.5kg used to make 1kg of sweet dough biscuits a cost saving of
32% was made.
7. IN LIVESTOCK
In livestock HQCF in the form of pellets (grits) is a healthier and safer choice for the
poultry and ruminants as it contains a minimal amount of cyanide at <10 parts per
million. Much as maize flour is available and cheaper than HQCF, Maize flour bears a
risk of mitotoxins which are the highest cause of death in reared poultry and would be a
much better choice for a livestock investor who wishes to secure the health of his stock.
NOTE: HQCF/G and C can be used in other products including toothpaste, pharmaceuticals,
thread binding in textiles, bio fuel, ethanol, several of which have not been included. For
purposes of business strategy, the areas concentrated on present a bigger share in the area of
Uganda and East Africa’s market segments in terms of production. An investor wishing to
invest in the above is also encouraged.
INVESTMENT COST PER METHOD OF PROCESSING USED
SUNDRYING COST
for every
set of 2
racks
SOLAR
DRYING
COST
For every 1
solar dryer
FLASHDRYING COST
for every 1
flash dryer
Raised
metallic racks
(2)
2,000,000 Raised
metallic
racks (2)
2,000,000 Flash dryer 1
and shipping
200 -
250,000,000
Washing
basins 2
550,000 Washing
basins 2
50,000 Washing basins
2
50,000
Press 1 and
Grater 1
8,000,000 Press 1 and
Grater 1
8,000,000 Press 1 and
Grater 1
8,000,000
0 0 0 0 Generator 30
kva
30,000,000
0 0 Solar Dryer
shade
2,000,000 0 0
Store house
(optional)
40 –
100,000,000
Store house
(optional)
40 –
100,000,000
Store house
(optional)
40 –
100,000,000
Truck 3 ton
(optional)
40 –
80,000,000
Truck 3
ton
(optional)
40 –
80,000,000
Truck 5 ton
(optional)
40 –
80,000,000
MARKET OPENINGS
Industry Name ofthe end product
Actual market in(Tons)Per
annum
Actual
Market Size
in (USD)
Potential
Market size in
(USD) Currently
Imported
Products (2013)
BISCUIT HARD DOUGH BISCUITS 4248 TON PER ANNUM 1,888,000
904,494,000
PAPER BOARD STARCH BASED ADHESIVE 1440 TON PER ANNUM 640,000
4,897,000
PLYWOOD GLUE 250 TON PER ANNUM 111,111
143,000
ANIMAL FEED 8000 TON PER ANNUM 3,555,555
193,000
BREWING BEER 2500 TON PER ANNUM 1,111,111
1,574,000
BAKERIES BREAD AND PASTRIES 14,000 TON PER ANNUM 6,222,222
9,546,000
COMPOSITEFLOUR COMPOSITE FLOUR 1000 TON PER ANNUM 444,444
408,000
PHARMACEUTICALS STARCH 0 787
6,660,000
RISKS AND MITIGATION OF RISKS FOR HIGH QUALITY CASSAVA FLOUR AS
COMPARED TO WHEAT AND MAIZE RISKS
CASSAVA WHEAT MAIZE
1.Cyanogenic glucosides High Import taxes on
wheat
Mitotoxin poisoning
2.Roots bulkiness
increasing transport costs
High exchange rates
variance
Intense price fluctuation
and flooding on the market
3.High perishability of
fresh roots
High transport costs of
grain
High susceptibility to harsh
weather damage
MITIGATION OF RISKS
CASSAVA WHEAT MAIZE
1.Processing method
reduces cyanogenic
glucosides to <10 ppm
High Import taxes on
wheat
Mitotoxin poisoning
2.Processing techniques
reduces moisture content
by up to 90% reducing
bulkiness and high
transport costs
High exchange rates
variance
Intense price fluctuation
and flooding on the market
3.Processing techniques
reduces moisture content
by up to 90% reducing
perishability and
prolonging shelf life
High transport costs of
grain
High susceptibility to harsh
weather damage
CONCLUSION
Cassava, apart from being the staple food for many households in Uganda is a crop that
is readily available, easy to farm and tolerant to harsh weather conditions. The new
varieties released minimize the risk of damage to disease in cassava. Cassava is a high
priority crop under the Ministry of Agriculture, Animal Industries and Fisheries and
immense support is available through Non Governmental Organizations and
government to promote agro processing and value addition so as to enhance the lives of
millions of Ugandans dependant on agriculture and cassava in particular. Investing in
High Quality Cassava Flour supports Uganda’s Sustainable Development Goals and
Poverty Eradication Action Plan through creation of jobs and skills transfer especially to
the youth and value addition to agri based products.
AI for Africa: Investing in HQCF Cassava Flour

More Related Content

What's hot

dudhsagar dairy in mehsana, india largest milk production, indian dairy farm
dudhsagar dairy in mehsana, india largest milk production, indian dairy farmdudhsagar dairy in mehsana, india largest milk production, indian dairy farm
dudhsagar dairy in mehsana, india largest milk production, indian dairy farmBhargav Joshi
 
Market survey: Milk based products (Packaging)
Market survey: Milk based products (Packaging)Market survey: Milk based products (Packaging)
Market survey: Milk based products (Packaging)Moksha Chib
 
Commercialization of Philippine Native Cattle for Optimum Production
Commercialization of Philippine Native Cattle for Optimum ProductionCommercialization of Philippine Native Cattle for Optimum Production
Commercialization of Philippine Native Cattle for Optimum ProductionBureau of Agricultural Research
 
Value chain focused agro enterprise development
Value chain focused agro enterprise developmentValue chain focused agro enterprise development
Value chain focused agro enterprise developmentPoshadri Achinna
 
Promoting dairy farming to the public with DairyCo
Promoting dairy farming to the public with DairyCoPromoting dairy farming to the public with DairyCo
Promoting dairy farming to the public with DairyCoAHDB Dairy
 
establishment of value addition unit for agriculture produce
establishment of value addition unit for agriculture produceestablishment of value addition unit for agriculture produce
establishment of value addition unit for agriculture produceharsh parmar
 
Plat design on cashew processing
Plat design on cashew processingPlat design on cashew processing
Plat design on cashew processingKeerthana Surakala
 
Turning India Self Reliant in Edible Oil - Retrospect and Prospect
Turning India Self Reliant in Edible Oil - Retrospect and ProspectTurning India Self Reliant in Edible Oil - Retrospect and Prospect
Turning India Self Reliant in Edible Oil - Retrospect and ProspectDr. Mukti Sadhan Basu, Ph.D
 
Moving beyond subsistence - Novel products from sorghum and their commerciali...
Moving beyond subsistence - Novel products from sorghum and their commerciali...Moving beyond subsistence - Novel products from sorghum and their commerciali...
Moving beyond subsistence - Novel products from sorghum and their commerciali...ICRISAT
 
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...Bureau of Agricultural Research
 
Ndri composite experience-presentation
Ndri composite experience-presentationNdri composite experience-presentation
Ndri composite experience-presentationoshnic
 

What's hot (20)

Katraj dairy pdf
Katraj dairy pdfKatraj dairy pdf
Katraj dairy pdf
 
dudhsagar dairy in mehsana, india largest milk production, indian dairy farm
dudhsagar dairy in mehsana, india largest milk production, indian dairy farmdudhsagar dairy in mehsana, india largest milk production, indian dairy farm
dudhsagar dairy in mehsana, india largest milk production, indian dairy farm
 
Market survey: Milk based products (Packaging)
Market survey: Milk based products (Packaging)Market survey: Milk based products (Packaging)
Market survey: Milk based products (Packaging)
 
Corn Silage Production / Nilo Padilla
Corn Silage Production / Nilo PadillaCorn Silage Production / Nilo Padilla
Corn Silage Production / Nilo Padilla
 
Dynamix Dairy Industries Limited
Dynamix Dairy Industries LimitedDynamix Dairy Industries Limited
Dynamix Dairy Industries Limited
 
GGCP
GGCPGGCP
GGCP
 
Commercialization of Philippine Native Cattle for Optimum Production
Commercialization of Philippine Native Cattle for Optimum ProductionCommercialization of Philippine Native Cattle for Optimum Production
Commercialization of Philippine Native Cattle for Optimum Production
 
Value added agro
Value added agroValue added agro
Value added agro
 
Value chain focused agro enterprise development
Value chain focused agro enterprise developmentValue chain focused agro enterprise development
Value chain focused agro enterprise development
 
Promoting dairy farming to the public with DairyCo
Promoting dairy farming to the public with DairyCoPromoting dairy farming to the public with DairyCo
Promoting dairy farming to the public with DairyCo
 
FOOD PACKAGING: A GROWING TREND
FOOD PACKAGING: A GROWING TRENDFOOD PACKAGING: A GROWING TREND
FOOD PACKAGING: A GROWING TREND
 
establishment of value addition unit for agriculture produce
establishment of value addition unit for agriculture produceestablishment of value addition unit for agriculture produce
establishment of value addition unit for agriculture produce
 
Plat design on cashew processing
Plat design on cashew processingPlat design on cashew processing
Plat design on cashew processing
 
Agro processing study
Agro processing studyAgro processing study
Agro processing study
 
Turning India Self Reliant in Edible Oil - Retrospect and Prospect
Turning India Self Reliant in Edible Oil - Retrospect and ProspectTurning India Self Reliant in Edible Oil - Retrospect and Prospect
Turning India Self Reliant in Edible Oil - Retrospect and Prospect
 
Oil seed crops
Oil seed cropsOil seed crops
Oil seed crops
 
Moving beyond subsistence - Novel products from sorghum and their commerciali...
Moving beyond subsistence - Novel products from sorghum and their commerciali...Moving beyond subsistence - Novel products from sorghum and their commerciali...
Moving beyond subsistence - Novel products from sorghum and their commerciali...
 
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...
PhilMech compact cornmill / Dr. Romualdo Martinez, Dr. Michael Gragasin, and ...
 
Ndri composite experience-presentation
Ndri composite experience-presentationNdri composite experience-presentation
Ndri composite experience-presentation
 
VC_Postcards_FINAL
VC_Postcards_FINALVC_Postcards_FINAL
VC_Postcards_FINAL
 

Similar to AI for Africa: Investing in HQCF Cassava Flour

Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...
Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...
Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...Lateef Dimeji
 
Cassava shelf life.ppt
Cassava shelf life.pptCassava shelf life.ppt
Cassava shelf life.pptDiego Naziri
 
From Farm to Market: The importance of smallholder farmers for the agricultur...
From Farm to Market: The importance of smallholder farmers for the agricultur...From Farm to Market: The importance of smallholder farmers for the agricultur...
From Farm to Market: The importance of smallholder farmers for the agricultur...ICARDA
 
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...ICRISAT
 
Irish Farmers Monthly 2024 Forage_Guide_2024.pdf
Irish Farmers Monthly 2024 Forage_Guide_2024.pdfIrish Farmers Monthly 2024 Forage_Guide_2024.pdf
Irish Farmers Monthly 2024 Forage_Guide_2024.pdfde Paor Consultancy
 
Cassava processing
Cassava processingCassava processing
Cassava processingcyad
 
Assessment SNV- KMDP forage interventions in North Rift, Kenya
Assessment SNV- KMDP forage interventions in North Rift, KenyaAssessment SNV- KMDP forage interventions in North Rift, Kenya
Assessment SNV- KMDP forage interventions in North Rift, KenyaProDairy E.A. Ltd
 
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...Francois Stepman
 
Sweetpotato silage making for pig feed in uganda
Sweetpotato silage making for pig feed in ugandaSweetpotato silage making for pig feed in uganda
Sweetpotato silage making for pig feed in ugandaILRI
 
12th june ,2020 daily global regional and local rice e-newsletter
12th june ,2020 daily global regional and local rice e-newsletter12th june ,2020 daily global regional and local rice e-newsletter
12th june ,2020 daily global regional and local rice e-newsletterRiceplus Magazine
 
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...Malabo-Montpellier-Panel
 
Pibid background as presented by eng kibuuka ssempebwa r
Pibid background as presented by eng kibuuka ssempebwa rPibid background as presented by eng kibuuka ssempebwa r
Pibid background as presented by eng kibuuka ssempebwa rEng Sempebwa Kibuuka Ronald
 

Similar to AI for Africa: Investing in HQCF Cassava Flour (20)

Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...
Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...
Postharvest Loss Reduction and Agro-processing in Nigeria: Current Developmen...
 
Cassava shelf life.ppt
Cassava shelf life.pptCassava shelf life.ppt
Cassava shelf life.ppt
 
From Farm to Market: The importance of smallholder farmers for the agricultur...
From Farm to Market: The importance of smallholder farmers for the agricultur...From Farm to Market: The importance of smallholder farmers for the agricultur...
From Farm to Market: The importance of smallholder farmers for the agricultur...
 
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...
ICRISAT Research Program West and Central Africa 2016 Highlights-Development ...
 
Nutritious food and added value - Flagship Project 4 overview, ISTRC 2018
Nutritious food and added value - Flagship Project 4 overview, ISTRC 2018Nutritious food and added value - Flagship Project 4 overview, ISTRC 2018
Nutritious food and added value - Flagship Project 4 overview, ISTRC 2018
 
Irish Farmers Monthly 2024 Forage_Guide_2024.pdf
Irish Farmers Monthly 2024 Forage_Guide_2024.pdfIrish Farmers Monthly 2024 Forage_Guide_2024.pdf
Irish Farmers Monthly 2024 Forage_Guide_2024.pdf
 
Cassava processing
Cassava processingCassava processing
Cassava processing
 
Assessment SNV- KMDP forage interventions in North Rift, Kenya
Assessment SNV- KMDP forage interventions in North Rift, KenyaAssessment SNV- KMDP forage interventions in North Rift, Kenya
Assessment SNV- KMDP forage interventions in North Rift, Kenya
 
Forage guide 2016
Forage guide 2016Forage guide 2016
Forage guide 2016
 
Forage Guide 2016
Forage Guide 2016Forage Guide 2016
Forage Guide 2016
 
Forage_Guide_2022.pdf
Forage_Guide_2022.pdfForage_Guide_2022.pdf
Forage_Guide_2022.pdf
 
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...
Biofortified Sweetpotato as a Key Contributor to Sustainable Agri-Food System...
 
3.2 session by kulakow cassava breeding in ssa3 brief
3.2 session by kulakow   cassava breeding in ssa3 brief3.2 session by kulakow   cassava breeding in ssa3 brief
3.2 session by kulakow cassava breeding in ssa3 brief
 
Sweetpotato silage making for pig feed in uganda
Sweetpotato silage making for pig feed in ugandaSweetpotato silage making for pig feed in uganda
Sweetpotato silage making for pig feed in uganda
 
GRAPAS 2014
GRAPAS 2014GRAPAS 2014
GRAPAS 2014
 
12th june ,2020 daily global regional and local rice e-newsletter
12th june ,2020 daily global regional and local rice e-newsletter12th june ,2020 daily global regional and local rice e-newsletter
12th june ,2020 daily global regional and local rice e-newsletter
 
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...
MaMoWebinar: Why increasing the role of renewable energy mini-grids is essent...
 
Strategic analysis
Strategic analysisStrategic analysis
Strategic analysis
 
Sess2 1 demo_th2_abs124 [compatibility mode]
Sess2 1 demo_th2_abs124 [compatibility mode]Sess2 1 demo_th2_abs124 [compatibility mode]
Sess2 1 demo_th2_abs124 [compatibility mode]
 
Pibid background as presented by eng kibuuka ssempebwa r
Pibid background as presented by eng kibuuka ssempebwa rPibid background as presented by eng kibuuka ssempebwa r
Pibid background as presented by eng kibuuka ssempebwa r
 

Recently uploaded

Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Dipal Arora
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...lizamodels9
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewasmakika9823
 
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts ServiceVip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Serviceankitnayak356677
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation SlidesKeppelCorporation
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMRavindra Nath Shukla
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...anilsa9823
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni
 
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service Pune
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service PuneVIP Call Girls Pune Kirti 8617697112 Independent Escort Service Pune
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service PuneCall girls in Ahmedabad High profile
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfPaul Menig
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdfRenandantas16
 
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckPitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckHajeJanKamps
 
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Tech Startup Growth Hacking 101  - Basics on Growth MarketingTech Startup Growth Hacking 101  - Basics on Growth Marketing
Tech Startup Growth Hacking 101 - Basics on Growth MarketingShawn Pang
 
Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creationsnakalysalcedo61
 
Call Girls Miyapur 7001305949 all area service COD available Any Time
Call Girls Miyapur 7001305949 all area service COD available Any TimeCall Girls Miyapur 7001305949 all area service COD available Any Time
Call Girls Miyapur 7001305949 all area service COD available Any Timedelhimodelshub1
 

Recently uploaded (20)

Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
 
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts ServiceVip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSM
 
KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.
 
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service Pune
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service PuneVIP Call Girls Pune Kirti 8617697112 Independent Escort Service Pune
VIP Call Girls Pune Kirti 8617697112 Independent Escort Service Pune
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdf
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
 
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckPitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
 
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Tech Startup Growth Hacking 101  - Basics on Growth MarketingTech Startup Growth Hacking 101  - Basics on Growth Marketing
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
 
Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creations
 
Call Girls Miyapur 7001305949 all area service COD available Any Time
Call Girls Miyapur 7001305949 all area service COD available Any TimeCall Girls Miyapur 7001305949 all area service COD available Any Time
Call Girls Miyapur 7001305949 all area service COD available Any Time
 

AI for Africa: Investing in HQCF Cassava Flour

  • 1. Africa Innovations Institute Plot 78, Old Kiira Road, Bukoto. P. O. Box 34981, Kampala. Tel. 0414530288 HQCF AND CAVA Cassava Adding Value for Africa II is a project funded by the Bill and Mellinda Gates foundation in it’s second phase running across five African countries including Ghana, Nigeria, Malawi, Tanzania and Uganda. It is implemented by Africa Innovations Institute in Uganda and aims at increasing the incomes of small holder farmers through value addition, yield increase in cassava. Through value addition it promotes the processing of cassava into High Quality Cassava (Tapioca) Flour also called improved quality unfermented cassava flour. The flour is processed to reduce the cyanogenic glucoside levels and moisture content and to increase shelf life of cassava flour. HQCF is processed within a time frame of 24 hours from harvest of the roots to preserve its freshness and to avoid fermentation. Currently the most common drying method in Uganda is sundrying on raised metallic racks with Uganda set to receive two artificial dryers of 3000kgs per shift of eight hours due in October. This will ensure consistent quality and supply as compared to the sun drying method for the markets in Uganda and beyond. There are two types of HQCF namely HQCFC and HQCFG which slightly vary depending on the method of processing. HQCFC has a relatively mild cassava flour scent, larger particle size than HQCFG and is mildly creamy in colour. It is higher in starch content, around 80% and is processed without pressing; the method which reduces starch content in the cassava mash. HQCFG however is processed with the pressing included, which results in a softer and finer flour, lower in starch, around 70%. The latter is favorited for bakery, composite and paperboard markets because of it’s qualities. It also has a smaller particle size than HQCFC. HQCFC is favourited by the breweries market for it’s high starch content.
  • 2. WHY INVEST IN CASSAVA FLOUR? Cassava starch can be used in it’s native form with minimal processes required for extraction saving the investor costs in fuel and production costs as well as lots of time. HQCF also known as improved quality cassava flour possesses a strong film, clear paste, good water holding properties, and stable viscosity. This makes it most suitable for adhesive purposes; it has great sensory qualities and a blunt taste with clear to sight which makes it a suitable blending product that adopts the taste and appearance of the product blended with without interference and lasts longer on the shelf compared to other products. WHY HQCF AS COMPARED TO OTHER FLOURS? Cassava starch-HQCF is non fermented improved quality cassava flour which is processed within a period of 24 hours. As a result it is low in microbial load, has lower cyanogenic glucosides (lower cyanide levels due to the processing technology) than common locally processed cassava flour, is industrially applicable with high starch content, has a longer storage lifespan. It has a small particle size as compared to other cereal starches and stronger binding qualities which make it suitable for adhesive manufacture in paperboard and plywood, texturizer and thickener in foods like tomato paste, soups and pasta and toothpaste, a binder in beef sausages and other meat products, breweries and alcohol, bio ethanol, paint, pharmaceuticals, a hardener in clay tile manufacturing, cooking briquettes, in yarns and thread manufacture for textiles, a wheat flour substitute in composite flour, and a diluant for fortificants and bread improvers in milling, in cakes, biscuit, bagiya and sweets and pastries manufacture. Initial studies carried out by National Resources Institute United Kingdom in Ghana and Nigeria where the trials were initially conducted proved that consumer acceptability of HQCF in products exists and that cassava’s qualities far outweigh those of other starches in terms of ease of processing since it has no epicarp and can be processed using the simplest technology and machinery with the extraction process requiring little to minimal stages of alteration to make it suitable for use.
  • 3. HQCF conforms to the EAS standards on cassava processing EAS 7402010 and UNBS standards on cassava flour processing. This ensures it’s industrial applicability. Cassava in Uganda is the second most farmed crop after maize and is among the Uganda government’s top 10 priority crops under the Ministry of Agriculture Animal Industries and Fisheries. This ensures favourable policies which promote it’s production and availability locally at a cheap price and ensures that research into the best varieties and farming practices including technical support are widely available from government and it’s partners which would save the investor extensive costs in research and partner linkage. Cassava in Uganda both in farming and in processing attracts no tax as it is one of the government’s top ten priority crops and similarly agro processing facilities outside Kampala benefit from income tax waiver when applied for on an annual basis. It is lower in moisture content bearing between 10 – 12% moisture which aids in transportation and storage and prevents moulding, and is of lower cost compared to wheat flour with a kilogram selling at Ush 1500/= at market price and possesses a very smooth texture compared to maize flour making it a suitable flour for blending in final products as the particle has stronger absorbance and sensory qualities than maize particles which remains rough to the taste. It also has a benefit of absence of mitotoxins which are a risk in maize flour and pose a health harzard to poultry and humans making it suitable for animal and human consumption. As majority of the root tuber is made from starch the process for starch extraction in cassava is a relatively basic and cost effective as mature root is mainly composed of starch and water with minimal other compounds including protein. This ensures the starch can be used in it’s most basic form, saving the investor significant costs in processing. Investing in HQCF provides an investor with an opportunity to profit while fulfilling his corporate social responsibility to maintain environmental sustainability as the technology used in it’s grating process is fuel efficient at 1 litre per 1000kgs while with the artificial flash dryer 64 litres per 3000 kgs of flour with minimal or no emission an added benefit in obtaining international certification. Africa Innovations
  • 4. Institute partners with NACCRI to train farmers of cassava on safe agronomic practices, post harvest handling and quality practices within the country. This encourages dissemination of environmentally friendly training to farmers at the grassroots level enhancing their livelihoods and securing the environment in the process. Currently the project is benefitting several small holder farmers with the number expected to reach 24,000 by 2019. With copying practices and multiplier effect the project will change the nature and face of farming for generations to come. The current number of households depending largely on farming cassava for their livelihood in Uganda is 75% of the population and 96% of these are small holder farmers who largely depend on staples including maize and cassava for food security. 70% of the food staple grown is cassava. The addition of value to cassava increases income for these small holders improving their access to essential basic needs like medical care and better education. Currently the number of households benefiting from cassava through value addition as HQCF is 2000 and this number projected to increase to 14000 and more as increased production of HQCF and other cassava products in Uganda is realized. An average farm gate price of fresh cassava roots which is the largest current form of cassava sold in the market is 100 - 300/= and when value is added the price per kilogram increases between 600 – 1500/= in the domestic market which is an income increase of 50 % and 80 % from a farm gate price of 100 and 300/= respectively. Investing in cassava as an investor would provide a chance to improve the lives of some of the world’s poorest who live under 1.25$ a day and depend on farming for livelihood who make up 19.7% of Uganda’s current population. Uganda is gifted with plenty of natural resources including water and land for expansion and cheap available labour which would enhance an investor’s productivity and hence maximize profit. Investing in value added cassava enhances the lives of Uganda’s over 6,350,400 under 25 year old labour force who are largely unemployed through creating market, supply and production opportunities along the value chain. The rising trend of youth joblessness in Uganda at 62% set to increase at 4.2% every year is a worrying trend that can cripple the growth of the economy by creating more dependants hence reducing buyer power in the economy. Already the 33 sites processing have generated employment for youth within their communities who had previously few skills and were unable to obtain employment within their communities. Majority of these are
  • 5. women. Investing in HQCF provides an opportunity to be part of the solution by improving the lives of unemployed people within the community through creating employment while enhancing the company’s corporate social responsibility. Cassava value addition through cassava processing increases food security by enabling storage for prolonged periods of time. HQCF can be stored on shelf at room temperature for up to 2 years without spoilage when under air tight storage and six months when in lined polythene bags. This enhances the possibility of accessing export markets at a cheaper cost as one factor of hindrance is the high perishability and bulkiness which is reduced through value addition. Engaging in value addition in cassava through HQCF impacts the market through enhancement of the introduction of new value added products to the market and thus creating new demand and new value chains in the economy. This ensures a stable economy and growth with the country depending less on imports improving the country’s balance of payment. HQCF though a relatively fresh concept in Uganda has been around since 1992 when trials were initiated in Ghana and Nigeria by National Resources Institute. It boasts low competition in the market giving the investor a first mover advantage essential in creating customer loyalty to the brand. It enables the investor to tailor their product to the market and set the market standard ahead of any subsequent competition providing an advantage in the long term for business sustainability and growth. The increasing demand for healthier food products is yet another factor that makes investing in HQCF a profitable venture. HQCF is a product whose gluten level is low while essentially high in starch content. As cassava is second only to sugarcane as the world’s highest energy giving food. This makes it a suitable high energy food without the downside of high gluten levels as in other starchy foods. It is essentially useful in maintaining lower gluten levels in gluten sensitive patients. Who alone constitute 8.3% of Uganda’s population and it’s lower cyanide content <10% which matches with the international standard requirements, lowers the possibility of cyanide induced poisoning which is common in locally processed and consumed cassava. This bears an advantage for the investor since it passes local; UNBS, international and regional; EAS quality standards for cassava flour. Making it essential for Uganda’s
  • 6. young and energetic population as well as her elderly and icreasingly health conscious consumers. HQCF provides for the investor various options as it bears the advantage of versatility in application. It can be applied as a texturizer and thickener in numerous food products including tomato paste, soups, pasta, beef sausage; in composite flours, milling as diluant for fortificants, wheat substitute in biscuits, bagiya, doughnuts, cakes, pastries; as a binding agent in industrial application including paperboard and plywood adhesive extender; paint and textile yarn (thread) manufacturing in clay tile manufacturing, briquettes; in toothpaste and pharmaceuticals as a thickener; livestock feed including poultry, cattle and fish feed; brewing beer, alcohol and bio ethanol. As a product with versatile applications both industrially and in home consumption, this allows for security in business as these various end markets can offer alternative outlets for HQCF in event of unforeseen limitations in one market as they will be in a better position to tailor their business model to different outlets that are be subject to variant market influences. It increases profit maximization and enhances risk mitigation. It’s performance as an application in all these products out performed it’s competitor products: wheat, maize and locally produced cassava flour in having superior sensory qualities and stronger adhesive binding qualities, longer shelf life in storage, ease of adaptability, ease of milling and cost benefits, tax and government exception and stability in prices and yield, lower microbial load, lower cyanogenic glucosides while retaining a better visual appeal. The future for cassava and HQCF in Uganda and the world is bright. As we see rising costs of wheat flour and taxes imposed on imports, fluctuations in foreign exchange, increasing competition among wheat millers and producers, with the growing uncertainty about the future of fuel prices, investors need to ensure engagement in cost reduction to remain sustainable. HQCF provides this option as it is a low cost preparation process involving less labour and capital intensive investment. HQCF supply in Uganda currently stands at close to 7000 per annum in 2014 from Sundrying. It is due to increase by 1,872,000kgs per annum after the acquisition of two artificial flash dryers in Uganda in October 2015. This will be in addition to the current production from the sun drying processors who currently process mainly HQCFC.
  • 7. HQCF, WHEAT AND MAIZE COMPARISON HQCF WHEAT MAIZE 1.No epicarp, fewer compounds to separate in milling process Has epicarp and more compounds to separate in milling process Has epicarp to separate in milling process 2.Process involving less labour and less fuel cost Longer process involving labour and power costs Longer and more expensive milling process 3.Minimal percentage of other compounds hence minimal loss in milling Loss of flour due to extraction rate Loss of vital nutrients in epicarp 4.Higher in starch second only to sugarcane Less starch content than HQCF Less starch content than HQCF 5. No Gluten Has Gluten No gluten 6. Excellent sensory qualities and faint or no cassava scent with smooth, clear and extra fine particles to taste Good sensory qualities with white creamy foggy particles Fair sensory qualities with white creamy foggy particles 7.Neutral taste and scent hence adopting the taste and scent of other compounds Strong wheat scent retained in flour interfering with final taste of mixed product Strong maize scent and rougher particles to taste 8.Longer shelf life in storage up to six months in lined bags Dry storage required Dry storage required 9. Excellent binding qualities Good binding qualities Sets and hardly reusable the next day 10.No taxation on cassava High taxation on wheat Taxation on Maize imports
  • 8. and agro processing outside Kampala imports into Uganda into Uganda 12. Priority crop attracting government and it’s partners support Attracts taxes on import Also a government priority crop in Uganda 14. Resilient under harsh weather conditions fewer pests Vulnerable under harsh weather conditions Extremely vulnerable under harsh weather conditions 15. Lower investment and running costs More capital required for investment More capital required for investment 16. Cyanide content reduced to <10ppm after processing No cyanide High risk of Mitotoxin poisoning when used in feeding. PROCESSING HQCF The fresh roots are harvested from the farm and transported to the processing site where they are peeled and soaked for 24 hours to lower the cyanogenic glucoside levels and then chipped or grated depending on the required flour. The chipped or grated root is then dried using sun drying racks or artificial drying method using the flash dryer. With sun drying the process takes 3 – 4 hours and with artificial drying this can take between 5 seconds using Flash dryer or to 1 hour depending on the other type of machine used. The output with sun drying is between 500 – 800 kg per day and artificial drying using the flash dryer is 3000kgs per day in an 8hr shift. The dry chips or mash retain moisture content of 10 – 12% and is then milled and packaged in lined plastic bags and stored at room temperature. COMPARISON BETWEEN BUYING HQCF AND PROCESSING HQCF BUYING PROCESSING Less cost and quality control Sufficient cost and quality control Lower level of investment Higher level of investment Instant applicability Investment set up required before
  • 9. applicability Shorter application process Longer application process Requires flour, packaging, minimal operational and transportation costs Requires purchase of machinery, transportation, importation tax, fresh roots supply, water, peeling, packaging, higher loading cost, fuel cost With buying the flour is loaded onto the truck and transported to the factory where it is offloaded, repackaged or utilized before delivery to the market outlets. With processing the roots are identified and purchased from farmers and loaded onto a truck and transported to the processing site where they are peeled, washed, grated, pressed and dried using either sun or artificial drying. Then the dry mash is milled and packaged and transported to the factory where it is repackaged or utilized before delivery to the market outlet. The cost per kilogram with buying ready processed flour goes at 1500 or 1400/= and the cost of processing with the sun is 550/= and artificial drying is 850/=. BUYING SUN PROCESSING ARTIFICIAL PROCESSING WHEAT COST MAIZE COST 1400 550 850 2200 1500 $ 0.50 usd $ 0.20 usd $ 0.30 usd $ 0.79 usd $ 0.53 usd GENERAL PERCENTAGE COST REDUCTION IN USE OF HQCF FROM COST OF WHEAT BUYING % REDUCTION SUN PROCESSING % REDUCTION ARTIFICIAL PROCESSING % REDUCTION 36.3 75 61.4 GENERAL PERCENTAGE REDUCTION FROM COST OF MAIZE at 1500 (pkg)
  • 10. BUYING % REDUCTION SUN PROCESSING % REDUCTION ARTIFICIAL PROCESSING % REDUCTION 6.6 63 43 With sun processing the price reduction is lowest however there are moderate limitations in supply consistency during the rain season. With artificial drying the price reduction is optimum and provides the best consistency in terms of quality and supply as it is not limited by weather conditions. With buying the price in negotiable with the processors depending on delivery arrangements and it can be extended to both artificial drying processors and sun drying processors. PERCENTAGE REDUCTION WITH COMBINED WHEAT AND CASSAVA PER KILOGRAM OF FLOUR USED IN BISCUITS, BAKERY AND COMPOSITE. 1. IN BUYING HQCF (AT CASSAVA FLOURCOST OF 1500/= PER KILO) BREAD AND BISCUITS AT SUBSTITUTION RATE OF 25% CASSAVA FLOURAND 75% WHEAT FLOUR 250G CASSAVA = 375/= (at a cost of 1500 pkg) 750G WHEAT = 3750/= (at a cost of 5000pkg) SAVING OF WHEAT = 250G WORTH 1250/= ACTUAL SAVING = 875/= PKG OF FLOURUSED TO MAKE BREAD 39.7% SAVE 2. IN PRODUCING ONES OWN HQCF BY SUNDRYING FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR COMBINATION
  • 11. ASSUMING COST OF PRODUCTION = 550 PER KG CASSAVA FLOURAND 5000 PER KG OF WHEAT FLOUR 250G CASSAVA = 137/= PKG 750G WHEAT = 3750/= PER KG SAVING 250G WHEAT FLOURPER KILO USED WORTH 1250/=PKG ACTUAL SAVING = 1113/= PER KILOGRAM OF FLOUR USED TO MAKE BISCUITS/BREAD 50.5% SAVE 3. IN PRODUCING ONES OWN BY FLASHDRYING FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR ASSUMING COST OF PRODUCTION = 850 PER KG CASSAVA FLOURAND 5000 PER KG OF WHEAT FLOUR 250G CASSAVA = 213/= PKG 750G WHEAT = 3750/= PER KG SAVING 250G WHEAT FLOURPER KILO USED WORTH 1250/=PKG ACTUAL SAVING = 1037/= PER KILOGRAM OF FLOUR USED TO MAKE BREAD/BISCUITS 47% SAVE IN COMPOSITE EG; PREMIXES, DILUANTS AT RATE OF 10% CASSAVA FLOUR AND 90% WHEAT FLOUR 1. IN BUYING AT 1500 PER KG OF CASSAVA FLOUR AND WHEAT AT 2200/= PER KG
  • 12. 100G CASSAVA FLOUR = 150/= PKG 900 G WHEAT FLOUR = 1980/= PKG SAVE 100G WHEAT PER KILO OF FLOUR= 220/= ACTUAL SAVING = 70/= PER KILO GRAM OF FLOUR MADE 3% SAVE 2. IN PRODUCING OWN USING SUN DRYING AT COST OF 550/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR 100G CASSAVA FLOUR= 55/= PKG 900G WHEAT FLOUR = 1980/= PKG SAVE 100G WHEAT PER KILO OF FLOUR= 220/= ACTUAL SAVING = 165/= PER KILO GRAM OF FLOUR MADE 7.5% SAVE 3. IN PRODUCINGOWN USING FLASH DRYING AT COST OF 850/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR 100G CASSAVA FLOUR = 85/= PKG 900G WHEAT FLOUR = 1980/= PKG SAVE 100G WHEAT PER KILO OF FLOUR= 220/= ACTUAL SAVING = 135/= PER KILO GRAM OF FLOUR MADE 6.14% SAVE FOR PREMIXES IN COMPOSITE AT 1500 PER KG OF CASSAVA FLOURAND WHEAT OR MILLET AT 2200/= PER KG
  • 13. 20% CASSAVA FLOUR AND 80% WHEAT FLOUR COMBINED 200G CASSAVA FLOUR = 300/= PKG 800 G WHEAT FLOUR= 1760/= PKG SAVE 200G WHEAT PER KILO OF WHEATFLOUR = 300/= ACTUAL SAVING = 140/= PER KILO GRAM OF FLOUR MADE 6.1% SAVE AT A COST OF 1400 PER KILO (IN BUYING HQCF ALREADY PROCESSED) 1. COMPOSITE AT 10% CASSAVA FLOUR AND 90% WHEAT FLOUR COMBINED CASSAVA AT COST OF 1400/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR 100G CASSAVA FLOUR = 140/= PKG+ 900G WHEAT FLOUR= 1980/= PKG SAVE 100G WHEAT PER KILO OF FLOUR= 220/= ACTUAL SAVING = 80/= PER KILO GRAM OF FLOUR MADE 3.6% SAVE 2. BISCUITS AT 20% CASSAVA FLOURAND 80% WHEAT FLOUR COMBINATION (BUYING) For biscuits the recommended substitution is between 20 – 30% Improved cassava flour (HQCF) for hard dough biscuits. The cost variation here would be for a kilo of Wheat flour the estimated cost being 2200/= and for Improved cassava flour (HQCF) it is
  • 14. 1400/=.The difference in cost is 800/=. This would mean at a 20% substitution rate of wheat flour with HQCF per kilo of flour used in biscuit making the cost of a kilo of combined wheat and cassava would be a 36.4% price variance per kilogram of Cassava flour as compared to wheat. The price spent on one kilogram of flour for biscuits would be 1760/= (a reduction from by 20%) + 280 (cost of 20% of I kilo of cassava flour) is 2040. From 2200/= to 2040 is a price reduction by 160/= (7.3% reduction in cost of flour used in biscuits making). And 2000/= at a 30% substitution rate a 9% reduction in cost spent on 1 kilo of flour used to make biscuits. 3. QUEEN CAKES For Queen cakes at a 20% substitution rate would mean a reduction in cost spent on I kilogram of flour similarly by 7.3% the cost spent on I kilo being 2040/= and a similar price reduction by 160/=. Even though Queen cakes can be substituted with 10% – up to 50% cassava flour aspects of similarity to the non substituted queen cakes must be considered including shelf and temperature variation performance after storage over long periods of time and customer preferences. 4. BAGIYA Bagiya may be made with up to 100% substitution rates depending on the cost needs and customer preferences. With a 50% substitution rate the cost spent on a kilogram of combined wheat and cassava flour to make bagiya would be 1100 + 700 =1800/=. This would be a reduction in cost per kilogram of flour by 400/= (an 18% reduction). Tomato Paste (as a texturizer and thickener ) The current common thickeners in use include Tomato pulp powder, starches including potato starch, corn starch, modified starches, hydrocolloids including carboxymethylcellulose, xanthan gum, locust been gum, guar gum, traganth gum. Tomatoes used to make tomato ketchup and paste may be substituted with a 20 – 30 % utilization of Cassava flour (HQCF). This would be done without any changes in texture and taste as HQCF has a bland taste and smell and is clear to sight hence it easily adapts the qualities of the substance it blended with. This in addition to the
  • 15. sensory and other benefits make HQCF a viable substitute for cost reduction in tomato paste. At a 30% substitution the cost spent on making 1 kilogram of paste would be at a rate of 5: 1 ( 5 kilograms of tomatoes – 1 kilogram of paste) 5000kg (per I kg of tomatoes in Uganda) * 5 (kgs of fresh tomatoes to make 1 kg of paste) = 25000/= Which would be a price reduction to 17,920= from 25,000/=. A cost reduction by 7,080/= (a 28% reduction in cost spent on tomatoes to make 1 kilogram of paste) 5. IN PAPER (AS AN ADHESIVE) Cassava starch possesses a strong film, clear paste, good water holding properties, and stable viscosity. This makes it most suitable for adhesive purposes; at the end of the wet treatment, when the basic cellulose fiber is beaten to the desired pulp to increase the strength of the finished paper and to impart body and resistance to scuffing and folding; at the size press, when the paper sheet or board has been formed and partially dried, starch (generally oxidized or modified) is usually added to one or both sides of the paper sheet or board to improve the finish, appearance, strength, and printing properties; in the coating operation, when a pigment coating is required for paper, starch acts as a coating agent and as an adhesive. In paperboard 96.4% of adhesive is made up of flour and the rest is made up of sodium hydroxide, borax, sodium formaldyhyde for basic adhesive. In some instances clay, antifoam, sodium bisulphate, calcium stearate or magnesium sulphate may be added. If 25% substitution of starch used to make glue extender is cassava flour (usually wheat or maize ) If wheat starch is replaced with cassava flour the cost reduction would be less by 800/= when HQCF sells at a price of 1400/= per kg. The benefits of cassava starch are that it provides stronger binding properties and does not set as maize flour does and can be used for longer. 6. IN BISCUITS
  • 16. Tests conducted by National Resources Institute in Ghana in 1996 on the consumer acceptability of cassava flour in the biscuits and bakery products. In greater Accra the tests showed a consumer acceptability of 35% cassava flour in sweet dough biscuits and 60% in hard dough biscuits, however the recommended maximum substitution is 50% due to brittleness of products containing high levels of cassava flour. At 35% substitution for 0.5kg used to make 1kg of sweet dough biscuits a cost saving of 32% was made. 7. IN LIVESTOCK In livestock HQCF in the form of pellets (grits) is a healthier and safer choice for the poultry and ruminants as it contains a minimal amount of cyanide at <10 parts per million. Much as maize flour is available and cheaper than HQCF, Maize flour bears a risk of mitotoxins which are the highest cause of death in reared poultry and would be a much better choice for a livestock investor who wishes to secure the health of his stock. NOTE: HQCF/G and C can be used in other products including toothpaste, pharmaceuticals, thread binding in textiles, bio fuel, ethanol, several of which have not been included. For purposes of business strategy, the areas concentrated on present a bigger share in the area of Uganda and East Africa’s market segments in terms of production. An investor wishing to invest in the above is also encouraged. INVESTMENT COST PER METHOD OF PROCESSING USED SUNDRYING COST for every set of 2 racks SOLAR DRYING COST For every 1 solar dryer FLASHDRYING COST for every 1 flash dryer Raised metallic racks (2) 2,000,000 Raised metallic racks (2) 2,000,000 Flash dryer 1 and shipping 200 - 250,000,000 Washing basins 2 550,000 Washing basins 2 50,000 Washing basins 2 50,000
  • 17. Press 1 and Grater 1 8,000,000 Press 1 and Grater 1 8,000,000 Press 1 and Grater 1 8,000,000 0 0 0 0 Generator 30 kva 30,000,000 0 0 Solar Dryer shade 2,000,000 0 0 Store house (optional) 40 – 100,000,000 Store house (optional) 40 – 100,000,000 Store house (optional) 40 – 100,000,000 Truck 3 ton (optional) 40 – 80,000,000 Truck 3 ton (optional) 40 – 80,000,000 Truck 5 ton (optional) 40 – 80,000,000 MARKET OPENINGS Industry Name ofthe end product Actual market in(Tons)Per annum Actual Market Size in (USD) Potential Market size in (USD) Currently Imported Products (2013) BISCUIT HARD DOUGH BISCUITS 4248 TON PER ANNUM 1,888,000 904,494,000 PAPER BOARD STARCH BASED ADHESIVE 1440 TON PER ANNUM 640,000 4,897,000 PLYWOOD GLUE 250 TON PER ANNUM 111,111 143,000 ANIMAL FEED 8000 TON PER ANNUM 3,555,555 193,000 BREWING BEER 2500 TON PER ANNUM 1,111,111 1,574,000 BAKERIES BREAD AND PASTRIES 14,000 TON PER ANNUM 6,222,222 9,546,000 COMPOSITEFLOUR COMPOSITE FLOUR 1000 TON PER ANNUM 444,444 408,000 PHARMACEUTICALS STARCH 0 787 6,660,000 RISKS AND MITIGATION OF RISKS FOR HIGH QUALITY CASSAVA FLOUR AS COMPARED TO WHEAT AND MAIZE RISKS CASSAVA WHEAT MAIZE
  • 18. 1.Cyanogenic glucosides High Import taxes on wheat Mitotoxin poisoning 2.Roots bulkiness increasing transport costs High exchange rates variance Intense price fluctuation and flooding on the market 3.High perishability of fresh roots High transport costs of grain High susceptibility to harsh weather damage MITIGATION OF RISKS CASSAVA WHEAT MAIZE 1.Processing method reduces cyanogenic glucosides to <10 ppm High Import taxes on wheat Mitotoxin poisoning 2.Processing techniques reduces moisture content by up to 90% reducing bulkiness and high transport costs High exchange rates variance Intense price fluctuation and flooding on the market 3.Processing techniques reduces moisture content by up to 90% reducing perishability and prolonging shelf life High transport costs of grain High susceptibility to harsh weather damage CONCLUSION Cassava, apart from being the staple food for many households in Uganda is a crop that is readily available, easy to farm and tolerant to harsh weather conditions. The new varieties released minimize the risk of damage to disease in cassava. Cassava is a high priority crop under the Ministry of Agriculture, Animal Industries and Fisheries and immense support is available through Non Governmental Organizations and government to promote agro processing and value addition so as to enhance the lives of millions of Ugandans dependant on agriculture and cassava in particular. Investing in High Quality Cassava Flour supports Uganda’s Sustainable Development Goals and Poverty Eradication Action Plan through creation of jobs and skills transfer especially to the youth and value addition to agri based products.