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Global Futures and Strategic Foresight Project Policy, Institutions and
Markets CRP
Cassava Value Chains Workshop
CIAT, Ca...
THAILAND – A CASSAVA KINGDOM
Source: Klanarong Sriroth, (SCST). Kasetsart University & BIOTEC. 2013,
CASSAVA – A CASH CROP FOR THAILAND FARMERS
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conf...
CASSAVA – AN INDUSTRIAL CROP
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
Source: Thai Tapioca Starch Association, TTSA (2010)
CASSAVA IN THAILAND: CONSOLIDATED MARKET STRUCTURE
Thailand: World N. 1 Cassava Exporter
Cassava Exports
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World T...
Thailand Cassava Sector
Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
Cassava in Latin America and the Caribbean:
Maize and cassava plants
Mochica culture – Peru
Museum Amano, Lima, Perú
1300 ...
Cassava Innovation in Colombia:
1980´s
First public sector-initiated effort to
promote cassava agroindustrial development
...
The North Coast of Colombia, 1980´S
• Population poor by national standards
76% vs. 64% with unsatisfied basic needs
55% v...
Colombian Political, Economic and Social Environment in 1980s
• Import-substitution policy to protect national
production
...
The Challenge
• High cassava production as a result of
land reform and DRI-program credit
• Stagnant demand for fresh cass...
CIAT in the 1980s
 Commodity-based Program with multi-disciplinary
research
 Lack of adoption of cassava technologies in...
ICRDP Methodology
Planning at the macro level
Commercial expansion
Planning at the micro level
Pilot project
INTEGRATED
CA...
Best-bet Solution
 Experience on cassava drying
related to Asia (Thailand)
Public-sector Initiated Innovation Process
Technological
prototype simple,
small-scale and with
low investment
requirement...
Research
Technical
Assistance
Marketing Organization Credit
Strong Public Sector Involvement
Small Cassava Farmer Organiza...
Private Sector participation in the Innovation Process
• Private sector role : end-user; the market
Out scaling of dry-cassava agroindustries: (1981-89)
0
1000
2000
3000
4000
5000
6000
7000
8000
1981 1982 1983 1984 1985 19...
Trends in cassava prices paid to producers in the North Coast of
Colombia, 1975-90
0
50000
100000
150000
200000
250000
Yea...
Trends in Cassava Area and Yield in the North Coast of Colombia,
1975-93
0
2000
4000
6000
8000
10000
12000
0
20000
40000
6...
“Before, we didn’t eat three meals per
day… if we had breakfast; we didn’t have
lunch. And now… I said that there was a
ch...
The Political, Economic and Social Environment in the 1990s
• Free market policies, economy open to to external competitio...
The new macro-scenario, 1990s
• Public sector: reduced support to a minimum and
places policies that affect the agroindust...
Trends in Cassava Area and Yield in the North Coast of
Colombia, 1975-99
0
2000
4000
6000
8000
10000
12000
0
20000
40000
6...
0
50000
100000
150000
200000
250000
(1998$Col/Kg)
Year
Fresh Market Dry-cassava Plant
- 6.2 3.5 - 5.0
11.2
0.03
- 4.4 0.01...
Trends in cassava prices and dry cassava production in the North Coast of
Colombia (1981-2001)
0
10000
20000
30000
40000
5...
 Small-scale
 Mostly land renters
few landowners
 No inputs
 Organized into
associations
 Yield = 10-12 MT / ha
 0.5...
CASSAVA VALUE CHAIN DYNAMICS
(SMALL-SCALE, LANDLESS FARMERS); 12 MT / ha
Dry cassava chips offers negative return
to farme...
 Small- to médium-scale
 Mostly land renters , few
landowners
 Use modern inputs (fertilizers,
herbicides, credit, tech...
FARMERS ASSOCIATION (Producers and Processors, dry cassava chips)
chips processors)
CASSAVA VALUE CHAIN DYNAMICS
(Farmers Association, Commercial Scale); 20 MT/ ha; 8 MT dry cassava chips / ha
Dry cassava c...
CASSAVA VALUE CHAIN DYNAMICS
(COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
 Commercial-scale
 Mostly ...
CASSAVA VALUE CHAIN DYNAMICS
(COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
6.8
5.7
9.1
17.0
6.1
14.0
10.8
5.4
0
10
20
30
40
50
60
70
80
90
US$/MTfreshcassavaroots
Fresh cassava roots production cos...
CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA
PRODUCTION
PRODUCTS
PROCESSING
CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA
PRODUCTION
PRODUCTS
PROCESSING
POLICY
GRACIAS!
BERNARDO OSPINA PATIÑO
Director Ejecutivo – Corporacion CLAYUCA
b.ospina@clayuca.org
THANK YOU!
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Why isn´t Colombia the LAC version of Thailand for the cassava crop?

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Presentation at the Cassava Value Chains Workshop
CIAT, Cali, Colombia. 24-26 August 2016
Speaker: Bernardo Ospina Patiño
Executive Director, CLAYUCA Corporation

Published in: Science
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Why isn´t Colombia the LAC version of Thailand for the cassava crop?

  1. 1. Global Futures and Strategic Foresight Project Policy, Institutions and Markets CRP Cassava Value Chains Workshop CIAT, Cali, Colombia August 24-26, 2016 BERNARDO OSPINA PATIÑO Executive Director - CLAYUCA Corporation b.ospina@clayuca.org WHY ISN´T COLOMBIA THE LAC VERSION OF THAILAND FOR THE CASSAVA CROP?
  2. 2. THAILAND – A CASSAVA KINGDOM Source: Klanarong Sriroth, (SCST). Kasetsart University & BIOTEC. 2013,
  3. 3. CASSAVA – A CASH CROP FOR THAILAND FARMERS Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
  4. 4. CASSAVA – AN INDUSTRIAL CROP Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
  5. 5. Source: Thai Tapioca Starch Association, TTSA (2010) CASSAVA IN THAILAND: CONSOLIDATED MARKET STRUCTURE
  6. 6. Thailand: World N. 1 Cassava Exporter Cassava Exports Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
  7. 7. Thailand Cassava Sector Source: Klanarong Sriroth, Outlook of Thai Tapioca Industry, World Tapioca Conference, 2013,
  8. 8. Cassava in Latin America and the Caribbean: Maize and cassava plants Mochica culture – Peru Museum Amano, Lima, Perú 1300 AC An ancient culture
  9. 9. Cassava Innovation in Colombia: 1980´s First public sector-initiated effort to promote cassava agroindustrial development with small-scale farmers
  10. 10. The North Coast of Colombia, 1980´S • Population poor by national standards 76% vs. 64% with unsatisfied basic needs 55% vs. 36% in misery • Semi-arid region with few crop alternatives: cassava : one of the most popular crops • Important for food security and cash income 40% of small farmers income • Employment generator: 7.3 million wage-days per year
  11. 11. Colombian Political, Economic and Social Environment in 1980s • Import-substitution policy to protect national production • Integrated Rural Development (IRD) approach: (subsidized credit, land reform, research, technical assistance ) • External donor support: CIDA, WFP • Organizational processes in place as a result of social struggles to secure access to land Agricultural Development Model
  12. 12. The Challenge • High cassava production as a result of land reform and DRI-program credit • Stagnant demand for fresh cassava: depressed prices • Massive credit default • Failure of initial DRI-program basic premise • CIAT help requested to find a solution
  13. 13. CIAT in the 1980s  Commodity-based Program with multi-disciplinary research  Lack of adoption of cassava technologies in Latin America created doubts about the impact of cassava research  Demand studies identified new market opportunities for cassava (animal feed)  Internal planning exercises led to a change in strategy:  research only to R&D  primary production to agri-food chain
  14. 14. ICRDP Methodology Planning at the macro level Commercial expansion Planning at the micro level Pilot project INTEGRATED CASSAVA RESEARCH & DEVELOPMENT PROJECTS (ICRDPs)
  15. 15. Best-bet Solution  Experience on cassava drying related to Asia (Thailand)
  16. 16. Public-sector Initiated Innovation Process Technological prototype simple, small-scale and with low investment requirements Organizational prototype based on small-scale farmer groups of 25-30 farmers to manage the emerging rural agroindustries
  17. 17. Research Technical Assistance Marketing Organization Credit Strong Public Sector Involvement Small Cassava Farmer Organizations DRI-Program CIDA WFP  CORFAS  ICA  Caja Agraria  INCORA  CIAT  SENA  DANCOOP  CECORA  CORFAS  Caja Agraria  CORFAS  ICA  CIAT  CORFAS  CECORA
  18. 18. Private Sector participation in the Innovation Process • Private sector role : end-user; the market
  19. 19. Out scaling of dry-cassava agroindustries: (1981-89) 0 1000 2000 3000 4000 5000 6000 7000 8000 1981 1982 1983 1984 1985 1986 1987 1988 1989 ProcessingCapacity(MT) Year Cooperatives Private Entreprenuers
  20. 20. Trends in cassava prices paid to producers in the North Coast of Colombia, 1975-90 0 50000 100000 150000 200000 250000 Year Fresh Market Dry-cassava Plant - 6.2 3.5 0.03 Start of the ICRDP Period Col $ / kg (1998)
  21. 21. Trends in Cassava Area and Yield in the North Coast of Colombia, 1975-93 0 2000 4000 6000 8000 10000 12000 0 20000 40000 60000 80000 100000 120000 140000 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 (kg/ha) (ha) Year Area Yields -0.4 -2.1 0.6 7.0 Start of the ICRDP Period
  22. 22. “Before, we didn’t eat three meals per day… if we had breakfast; we didn’t have lunch. And now… I said that there was a change. When we got this land in 1971, we used to plant a quarter or half of an hectare… and now we even plant 5 hectares with cassava. Therefore, things have improved. Don Carlos, cassava farmer and member of COINPROSAN, Segovia, Sampués, Sucre “I was able to support my family, educate my children… Since these programs came, my life has changed from a poor peasant who didn’t have anything to a peasant who has enough to eat... I have already told you that all my children are professionals… all of them because of the land reform and the DRI-program. José Ortega, cassava farmer and member of COAPROBE, Montañita, Betulia, Sucre Voices of Impact
  23. 23. The Political, Economic and Social Environment in the 1990s • Free market policies, economy open to to external competition • Massive imports of grains to attend the growing demand of the feed industry in Colombia (1 million TM per year) • Donor and public sector support reduced to a minimum • Competitiveness based on lower wages and only marginally on innovation • Limited access to credit
  24. 24. The new macro-scenario, 1990s • Public sector: reduced support to a minimum and places policies that affect the agroindustry negatively • Donors: absent • Local support organizations: replaced public sector and donor support • Private sector: continued to act only as end-user
  25. 25. Trends in Cassava Area and Yield in the North Coast of Colombia, 1975-99 0 2000 4000 6000 8000 10000 12000 0 20000 40000 60000 80000 100000 120000 140000 (kg/ha) (ha) Year Area Yields -0.4 -2.1 0.6 7.0 -0.2 -1.3 Start of ICRDP
  26. 26. 0 50000 100000 150000 200000 250000 (1998$Col/Kg) Year Fresh Market Dry-cassava Plant - 6.2 3.5 - 5.0 11.2 0.03 - 4.4 0.01 Start of the ICRDP Period Start of CLAYUCA Period Trends in cassava prices paid to producers in the North Coast of Colombia, 1975-99
  27. 27. Trends in cassava prices and dry cassava production in the North Coast of Colombia (1981-2001) 0 10000 20000 30000 40000 50000 60000 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 Production(MT) Prices(1998$Col/Kg) Year Dry-cassava prices Cassava roots prices Dry-cassava production -0.02 -5.5 62.4 -11.3 Start of the CLAYUCA Period 74.8 1.6
  28. 28.  Small-scale  Mostly land renters few landowners  No inputs  Organized into associations  Yield = 10-12 MT / ha  0.5-1.0 ha SMALL-SCALE CASSAVA FARMERS –COLOMBIA NOTH COAST, TODAY
  29. 29. CASSAVA VALUE CHAIN DYNAMICS (SMALL-SCALE, LANDLESS FARMERS); 12 MT / ha Dry cassava chips offers negative return to farmers and processors 11.3 9.2 11.3 21.8 14.9 0 10 20 30 40 50 60 70 80 USD/MTofcassavaroots Dry Cassava Chips Production costs (Share of production costs for dry cassava chips Harvesting Weeding Land rental Planting Land preparation 172.5 -13.1 3.4 23.7 -15 35 85 135 185 Farm gate price cassava roots Transport Processing cost Producer margin USD$/MTdrycassavachips Value distribution (Relative costs of producing 1 ton of dry cassava chips from 2,6 t of fresh cassava roots)
  30. 30.  Small- to médium-scale  Mostly land renters , few landowners  Use modern inputs (fertilizers, herbicides, credit, technical assistance, administration)  Organized into primary- and secondary-degree associations  Yield= 20 MT / ha  Yield = 8 MT dry cassava chips /ha FARMERS ASSOCIATION (Producers and Processors, dry cassava chips) chips processors)
  31. 31. FARMERS ASSOCIATION (Producers and Processors, dry cassava chips) chips processors)
  32. 32. CASSAVA VALUE CHAIN DYNAMICS (Farmers Association, Commercial Scale); 20 MT/ ha; 8 MT dry cassava chips / ha Dry cassava chips offers a fair return to farmers and processors Source: ANPPY, 266 hectáreas Project; 2013. 11.9 24.3 23.3 61.9 41.4 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 US$tondrycassavachips Dry Cassava Chips Production Costs (Share of production costs) Land preparation Hand Labor Inputs Harvesting & Drying Indirect Costs 162.7 20.3 50 70 90 110 130 150 170 190 cus$/tonofdrycassavachips Value distribution (Relative costs of producing 1 ton of dry cassava chips from 2,6 t of fresh cassava roots) Production costs Farmers marginn costs
  33. 33. CASSAVA VALUE CHAIN DYNAMICS (COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha  Commercial-scale  Mostly land renting  Use modern inputs (fertilizers, herbicides, credit, technical assistance, administration)  Yield= 25 MT / ha
  34. 34. CASSAVA VALUE CHAIN DYNAMICS (COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha
  35. 35. 6.8 5.7 9.1 17.0 6.1 14.0 10.8 5.4 0 10 20 30 40 50 60 70 80 90 US$/MTfreshcassavaroots Fresh cassava roots production costs (Share of production costs) Contingencies Land Renting Harvest Pest & Disease Control Fertilizer & Lime Application Weed control Planting & Seeds Land preparation CASSAVA VALUE CHAIN DYNAMICS (COMMERCIAL-SCALE FARMER, PROCESSOR, COMMERCIALIZER); 25 MT / ha FRESH CASSAVA MARKETS OFFERS THE HIGHEST RETURN (FRESH; FROZEN; PARAFFIN-COATED) 75 67.8 30.5 98 170 237 0 50 100 150 200 250 300 350 400 450 Production Costs Processing costs Transportation Producer margin fresh roots Producer margin frozen cassava Producer margin paraffin-coated cassava roots US$/tonfreshcassavaroots Value distribution Relative costs of producing 1 ton of fresh cassava roots
  36. 36. CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA PRODUCTION PRODUCTS PROCESSING
  37. 37. CASSAVA VALUE CHAIN DEVELOPMENT IN COLOMBIA PRODUCTION PRODUCTS PROCESSING POLICY
  38. 38. GRACIAS! BERNARDO OSPINA PATIÑO Director Ejecutivo – Corporacion CLAYUCA b.ospina@clayuca.org THANK YOU!

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