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CASSAVA BUSINESS IN ASEAN 29102011 REV-3

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CASSAVA BUSINESS IN ASEAN 29102011 REV-3

  1. 1. CONTENTI. INTRODUCTION: 1. Background 2. What is Cassava? 3. Why Cassava ?II. FARMERS AND CASSAVA IN ASEAN : 1. Farmers in ASEAN 2. Cassava in ASEANIII. CASSAVA BUSINESS IN ASEAN : 1. Cassava Trading in ASEAN 2. Cassava Industry in ASEAN 3. Cassava : Prosperity for AllIV. FUTURE CASSAVA BUSINESS DEVELOPMENT IN ASEAN : 1. Organization 2. Management of Cassava BusinessV. CONCLUSION: 1. Cassava for Farmer’s Prosperity 2. Cassava for AllFIGURESREFERENCESAUTHOBIOGRAPHY OF PRESENTER 1
  2. 2. I. INTRODUCTION 1. Background . ASEAN countries mostly are developing countries in the tropical areas with two sessions during the year, dry session and wet or rainy session. It rich with biodidersity of plants and animals. It rich with volcanous mountain and with long beach, especially in Island Developing Countries like Indonesia and the Philippines. Natural resources are aboundant in ASEAN Region as a whole. All ASEAN countries, except Singapore, are agrarian countries, which are the income of the people mostly come from agriculture. From about 500 million people life in ASEAN region, not less than 60% are farmers and peason , where their life very depending on agriculture. There are some very important crops to ASEAN People in supporting their life, such : rice as a staple food, cassava as a staple food when the food crisis is occured in the regian, corn mainly for animal feed, soybean as a source of protein ( to make tempe and taufu for human consumption ), and many other local food crops are available and varied from place to another place in ASEAN countries. The increase in population and the growing urbanization of the developing world, including ASEAN, will lead to significant global changes and new challenges for feeding the increasing population. On the basis of current projections, it is expected that by 2020 cassava will be increasingly used in processed form for food, feed and starch-derived products. From a global perspective, non-food and non-feed uses of cassava will also grow in volume as a result of biotechnology research that enhances varietal characteristics and lowers its cost as a source of raw material. Thus, business opportunities for the uses of cassava as a human food, animal feed and industry raw material exist both in the domestic as well as export markets and, if well exploited could, offer good returns and investment. 2
  3. 3. ASEAN countries should be regionally integrated — it’s about time.But the process should consider the following:1. more power should be given to farmers’ groups; we should be able to influence and participate in policy-making processes, both at the national and regional levels. For this, we have to build the capacities of farmers’ groups to the governments2. need for a transparent process3. there must be a subsidizing mechanism like the CAP of EU4. integration must be a collaboration of government, private sector ,grassroots groups, including farmers’ groups, and other civil society organizations5. must be pursued, but based on common interests, common principles, mutual benefits, and mutual respect6. should enhance voice of small countries7. integration must start with sub-region cultures first understanding each other; promoting common language (Malay language for Indonesia, Malaysia, Philippines)8. implement common projects and programs, share information and resources9. should be pursued in all aspects, not only in industry or post- industry, but also in other important ones, i.e. Agriculture, economy, etcASEAN is embarking on building an ASEAN Economic Community(AEC) by 2015, which will be a single market and production base. Inthe process of working towards the AEC, the enhancement ofcompetitiveness of food, agricultural and forestry products ininternational markets, and the empowerment of farmers through thepromotion of agricultural cooperatives has become regional priorities.Emerging and cross-cutting relatedissues such as food security,mitigation and adaptation of climate change to the agriculture andforestry sector, and sanitary and phytosanitary (SPS) are also part ofthe priorities.Initiatives towards the Realisation of ASEANIntegrationThrough the harmonisation of quality and standards, assurances offood safety, and standardisation of trade certification, ASEANagricultural products are expected to be ready to compete in theglobal market by offering safe, healthy and quality foods. ASEAN hasbeen developing good agricultural practices (GAP), standards for the 3
  4. 4. production, harvesting and post-harvest handling of agriculturalproduces, the ASEAN maximum residue limit of pesticides, criteria forthe accreditation of livestock and livestock products establishments,guidelines on good management practices for shrimp, and a code ofconduct for responsible fisheries to be used as references fordeveloping national priorities and means to support the agro-industry.Ensuring food security continues to be the fundamental goal ofASEAN. In response to the increasing concern on food securityin the region recently, the ASEAN Statement on Food Security,ASEAN Integrated Food Security (AIFS) Framework andStrategic Plan of Action on ASEAN Food Security (SPA-FS) havebeen adopted to ensure long-term food security and to improvethe livelihoods of farmers in the ASEAN region. One of veryimportant and very demanding Food Crops, by ASEANCummunity, in supporting the ASEAN Integrated Food Security(AIFS), is CASSAVA .2. WHAT IS CASSAVA ?Cassava originated in Brazil and Paraguay. Today it has been giventhe status of a cultigen with no wild forms of this species beingknown.Cassava is a perennial woody shrub, grown as an annual. Cassava isa major source of low cost carbohydrates for populations in the humidtropics. The largest producer of cassava is Brazil, followed byThailand, Nigeria, Zaire and Indonesia. Production in Africa and Asiacontinues to increase, while that in Latin America has remainedrelatively level over the past 30 years. Thailand is the main exporterof cassava with most of it going to Europe. It was carried to Africa byPortuguese traders from the Americas. It is a staple food in manyparts for western and central Africa and is found throughout thehumid tropics. The world market for cassava starch and meal islimited, due to the abundance of substitutes. Cassava is a root crops, generally it well known by rural peoplein developing countries, including in ASEAN member countries. It isvery common be called in the lathin name, Manihot utilissima Pohl orManihot esculenta Crantz. In the International trade, it has menynames , such as : cassava ( English ); yuka ( Spain ); mandioca ( 4
  5. 5. Portugese ); and cassave ( Dutch ). I believe there are many other names in different countries, like in ASEAN Countries as well, in the Philippines, it is commonly called as kamoteng kahoy or balinghoy; in Indonesia commonly called as Singkong; even in one Country like Indonesia, it has also many difference names according to the region, for example : kaspe ( Central Java ndonesia); telo puhung ( East Java, Indonesia ); and sampeu or dangdeur or singkong ( West Java, Indonesia ). Figure-1 : Cassava stalks, Darul Hidayah Figure -2 : Cassavatrees, Figure -3 : Cassava Vietnam Description Unprocessed cassava root The root is long and tapered, with a firm homogeneous flesh encased in a detachable rind, about 1 mm thick, rough and brown on the outside. Commercial varieties can be 5 to 10 cm in diameter at the top, and 50 to 80 cm long. A woody cordon runs along the roots axis. 5
  6. 6. The flesh can be chalk-white or yellowish; raw cassava tastes like amixture of potato and coconut flesh, it breaks like a carrot, anddarkens quickly upon exposure to the air. For this reason, the skinnedroot must be kept under water until it is ready to be cooked. The rootsflavor spoils in a day or so, even if kept unskinned and underrefrigeration, which is a problem for supermarkets. A solution isusually to freeze it or seal it in wax. Figure 4 : CassavaFigure 5 : Cassava –Manggu ( Subang, West Java, Indonesia )The cassava plant gives the highest yield of food energy percultivated area per day among crop plants, except possibly forsugarcane. Cassava roots are very rich in starch, and containsignificant amounts of calcium (50 mg/100g), phosphorus (40mg/100g) and vitamin C (25 mg/100g). However, they are poor inprotein and other nutrients. In contrast, cassava leaves are a goodsource of protein if supplemented with the amino acid methionine. 6
  7. 7. The oldest evidence of cassava cultivation comes from a 1,400 yearold Maya site, Joya de Ceren, in El Salvador.[1] although the speciesManihot esculenta likely originated further south in Brazil andParaguay. With its high food potential, it had become a staple food ofthe native populations of northern South America, southernMesoamerica, and the West Indies by the time of the Spanishconquest, and its cultivation was continued by the colonialPortuguese and Spanish. Forms of the modern domesticated speciescan be found growing in the wild in the south of Brazil. While thereare several wild Manihot species, all varieties of M. esculenta arecultigens.In many places in the Americas, yuca was the staple food. Thistranslated into many images of yuca being used in pre-Colombian art.The Moche people often depicted yuca in their ceramics.3. WHY CASSAVA ?The Cassava is a plant with a lot of usefulness, especially it’s “root” orgenerally called “Cassava Root” which is the most importance part ofcassava plant. The cassava root, other than being edible as food, italso used as the raw materials in agro-based industry, animal feedsand industrial purposes as follows.It is used in various industries, for instance,• Food and Beverage: The cassava starch will be used in both its original form and its other modified forms, for instance, the instant noodle, sago, seasoning sauce including beverages;• Sweeteners: They are glucose and fructose which are used as the sweeteners in the beverage industry;• Textile Industry: It is used for slipping the thread and to make the thread being without hair during the weaving and to fortify the thread including the cloth printing in order to make the cloth being shining and durable;• Paper Industry: To mix it with the paper in order that the paper pulp to be tough and thick;• Glue Industry: To use it for producing glue including any products that’s their mixture is the glue; 7
  8. 8. • Plywood Industry: To use it in form of glue made from cassava starch in the process of plywood manufacture in order to make the plywood becomes qualified, tough and durable;• Medicine Industry: To use it as the diluent of capsule medicine and pill;• Monosodium Glutamate: To use it for producing the MFG for seasoning food;• Bio-Degradable Material Products: To use the cassava starch to be transformed as product by mean of adding the bio-degradable substance to be in place of plastic.• Animal Feeds: It is used as the ingredients of animal feeds;• Alcohol: It is used for producing alcohol for the liquor manufacture and the disinfectant.• Gasohol: To be used for producing Ethanol and mixed with fuel which is a renewable energy sourceCassava Root• Cassava starch•••••• 8
  9. 9. •Cassava has a function to support the food diversification and foodself reliance. The choice made due to the various fuction of cassava,such as for food, feed , fuel and other industrial function, including fordegridable plastic. In fact that cassava has a multi function.Regarding food utilization, widespread initiatives have beenundertaken in many vulnerable countries that target cassava to meetmore of the dietary staple needs. This is particularly evident in sub-Saharan Africa, where consumption of cassava (mostly in the form offresh roots and basic processed products) is on the rise. However,the overall production gain in the region is expected to barely matchgrowth in population, bringing about little change in per caput foodavailability. Measures to promote domestic cassava flour overimported cereals, either through direct consumption or throughblending remain active throughout the world and constitute animportant driver for higher cassava food consumption. Brazilmandates the inclusion of 10 percent cassava flour in wheat flour andit is estimated that 50 percent of the countrys cassava crop is utilizedin such blending. Though several major producing countries in WestAfrica have also promoted this initiative, especially Nigeria, manyhave fallen short of enforcement, owing to the limited availability ofcassava flour.The demand for cassava by ethanol sectors will again emerge as themost significant driver in the expansion of cassava utilization. Atypical production system can produce about 280 litres (222 kg) of96 percent pure ethanol from one tonne of cassava roots with30 percent starch content. China is forecast to produce around5 million tonnes of ethanol from cassava in 2009, requiring around7 million tonnes of dried cassava. The country has also securedagreements with several neighbouring countries to supply its ethanolindustry with the feedstock. In Thailand, an ethanol plant with acapacity to produce up to 0.5 million litres of ethanol per day was dueto go on-line in 2008, but, owing to rising costs during that year,construction was suspended. However, the ethanol facility isexpected to start production late in 2009. Thailand requires around2 million litres of ethanol to meet its 10 percent fuel substitution plan.Likewise in Indonesia, cassava is set to be used in 5 percent ethanolmandatory gasoline blends. With soaring prices of competingfeedstocks, sugar and molasses, cassava-based ethanol distilleries inboth countries are expected to operate at full capacity. 9
  10. 10. Utilization of cassava as animal feed, in the form of dried chips and pellets, is mostly concentrated in Brazil and Colombia in Latin America and the Caribbean, Nigeria in Africa, China and the Republic of Korea in Asia. Little is known how feed usage has faired in the former two regions, but the demand for cassava feed ingredients in Asia has plummeted. Similarly, in Europe, cassava applications in the manufacture of feed ingredients have been virtually non-existent in 2009.II. FARMERS AND CASSAVA IN ASEAN 1. FARMERS IN ASEAN : Farmers in ASEAN generally are small farmers with limited land holder for their farming. There are living in rural areas with other rural community . Their education are relatively low, pliminary school up to secondary high school. There are very limited graduated from university. The income of the farmers in ASEAN Countries are most relatively low, some times difficult to meet the family needs, such for food, cloths, education, etc. Asean Farmers Asosiation (AEA) : AFA( Asean Farmers Asosiation ) is a regional alliance of farmer federations and organizations in eight countries in East Asia, representing ten million farmers. As a regional organization, its aim to be: 1. an advocacy group on farmers’ rights and development, at national, regional And international levels 2. facilitator of our members’ commercial activities 3. a venue for solidarity and exchange The members are in Indonesia, Philippines, Thailand, Cambodia, Vietnam, South Korea, Japan and Taiwan. The organization hopes to expand its membership to other East and South Asia countries in the next three years. Farmers’ Situation and Issues 10
  11. 11. 1. Asia is the world’s largest and most populous continent, with morethan 60% of total human population. It is the largest consumer of rice;it has the most extensive forestry and fishery resources as well.2. The farming population in Southeast Asia is on the average 40-80%, as compared to Europe, which has only 5% farming population,and US, 1.7%.3. As of 2002, the population of poor people or those who earn lessthan US$ 1/day is 1.2 billion, of which 75% (or 900M people) is foundin the rural areas, and in which 600M people alone are found inrural South Asia.4. The poverty situation in ASEAN countries (2002) range from 32%in Thailand up to 77.7% in Cambodia, mainly from the rural areas.5. The typical farmer in East and South Asia is :small scale, subsistence farmer , working on lands less than 2hectares , either a man or a woman.6. The Farmers main problems are:a. lack of access and control over natural resources, mainly land and water. If farmers do not own the lands for their farming , farmers cannot decide on how best to use them for their own benefit. Farmers will remain to be poor however big the income from the farm will be, as much of the income go to the landowners.b. insecure incomes and massive displacement due to global agricultural trade liberalization. Advocates of free trade promised development to developing countries. But our experience in the ten years of implementation of WTO, and ASEAN economic integration through free trade, say that this is not so. The rules of global agricultural trade are unfair. It is like Sumo wrestling where one contestant weighs 200 kilos, and the other, just 50 kilos. Agricultural products from the developed countries are heavily subsidized, thus they are sold cheaper in our markets. Governments of developing countries subsidize very little, if at all. We can hardly compete. The entry of cheap agricultural products in our countries have lowered our incomes and made us more insecure. Many of us have lost our livelihoods.c. food security risks We are asked to plant export crops – asparagus, cut flowers, etc. But many of us are afraid to do this, 11
  12. 12. because we do not know how to plant them, we don’t have the capital, and we don’t know where to sell them. We want to plant staple crops because at least we will be assured we will have something to eat. If our countries will depend on imports for even our staple food, like rice, chicken and vegetables, what will happen to us if suddenly there is shortage of supply from them? Even if we will have the money, we will go hungry.d. increasing dependence on big national and transnational agribusiness corporations -Agriculture technologies being promoted by governments rely more and more on seeds, systems, inputs produced and sold by big agribusiness corporations.e. climate change – We are becoming more and more vulnerable to global climate change. We still do not know how we can cope us with the effects of global warming in our farms and communities.f. inadequate government support to agriculture, specially to small men and women farmers- We find governments’ inadequate supportg. weak organization of farmer’s groups and representation in government decision making bodies – except in Vietnam and Korea, only 10-20% of farmers are organized , able to put a significant number of people in government offices.Our Bases of UnityFarmers’ organizations came together in AFA to promote an 8-pointpeasant agenda, which includes:1. promote sustainable agricultural policies and practices2. study and promote alternatives to globalization3. promote agriculture towards the young4. promote fair and just treatment of farmers in developing countries5. promote food security measures to small farmers6. promote farmer-to-farmer market exchanges7. push for an ASEAN provision on access to farm resources, and rural development and protection of human rights8. strengthen AFA at national and regional levels, so it becomes able to participate in international development processes.Current Efforts in Advocacy and On-Ground ProjectsIn promoting the above agenda, one of our strategic aims is toinfluence key inter-governmental regional and international decision- 12
  13. 13. making bodies on common agricultural issues affecting small menand women farmers, namely:a. ASEAN economic integration, including ASEAN charter and FTAs with various countriesb. GATT-WTO-AoA /Doha Roundc. FAO – for pro small farmer policies and programs and support to on-ground SA projectsd. IFAD Farmers’ Forum – for genuine representation of farmers in agricultural policies and programs , and for support for capacity building work and on-ground poverty alleviation projectse. WB – for more pro-small farmer agricultural framework and policies We also would like to be actively involved in discussions about climate change and bio-fuels, as these emerging issues are likely to impact seriously on us.2. CASSAVA IN ASEAN:Cassava grow in all countries in ASEAN Region. Most people in ruralareas, farmers and non farmers are very familier with cassava. Manyrural people very depending on cassava. Their live, school of theirchildren are supported by cassava.CASSAVA IN BRUNEI DARUSSALAM.OFFICIAL NAME : Sultanate of BruneiCAPITAL : Bandar Seri BegawanSYSTEM OF GOVERNMENT : Absolute MonarchyAREA : 5,765 Sq Km (2,226 Sq Mi)ESTIMATED 2000 POPULATION : 318,000 LOCATION & GEOGRAPHY: Brunei is located on the northwest coast of the islandof Borneo in South East Asia. It is bound by the South China Sea tothe north and the Malaysian state of Sarawak to the west and south.The country is divided into two separate enclaves by Sarawak withthe main part to the west containing the Brunei-Muara, Tutong and 13
  14. 14. Belait districts while the east contains the Temburong district. Theterrain in the western enclave consists of hilly lowlands and theeastern enclave contains a wide coastal plain that rises to themountain regions of Sarawak. Equatorial rain forests which are verydense in some places cover 75% of the land area and mangroveswamps as well as sandy beaches lie along the coastal plains. MajorCities (pop. est.); Bandar Seri Begawan 46,000, Kuala Belait 21,200,Seria 21,000, Tutong 13,000 (1991). Land Use; forested 86%,pastures 1%, agricultural-cultivated 1%, other 12% (1993).ECONOMY: Gross National Product; USD $4,001,000,000 (1993).Public Debt; nil. Imports; BD $2,280,700,000 (1992). Exports; BD$3,630,200,000 (1992). Tourism Receipts; USD $35,000,000 (1990).Balance of Trade; BD $1,946,000,000 (1992). Economically ActivePopulation; 111,955 or 43.0% of total population (1991).Unemployed; 4.7% (1991).MAIN TRADING PARTNERS: Its main trading partners are Japan,Thailand, Singapore, South Korea and other ASEAN countries.MAIN PRIMARY PRODUCTS: Bananas, Cassava, Coffee, Fish, Oiland Natural Gas, Rice, Timber.CASSAVA IN CAMBODIAKompong Cham ProvinceCassava is a plant originally coming from South Africa. From thereit was spreading to various tropical and sub-tropical regions. Cassavais a crop that can be processed into many other products such asethanol, animal feed or cassava starch/flour for human consumption.Cassava, cultivated as a family-business, can be found mostly in thedistricts of Memot, Tambeir and Tbaung Khmom in Kampong ChamProvince.-Production: Cultivated area is 62,300 ha, yields amountapproximately to 1,006,816 tons/year.-Markets: Local processing companies and export to Vietnam as adry chip. 14
  15. 15. CASSAVA IN INDONESIAIn Indonesia, cassava is classified officially as a food crops, so itsdevelopment should be under the respondibility of Ministry ofAgriculture. Almost all cassava roots and their derivative products (e.g. chips, pellets, starch, food, feed and chemicals ) are traded orprocessed in other sectors, outside the jurisdiction of the Ministry ofAgriculture. As trading and/or processing activities affect the cassavagrower, directly or inderectly, any attempt to resolve cassavaproduction problems by only focusing on its cultural practices willfail.A holistic view and approach through integrating all related partiesconcerned( cassava growers, traders, processors, and consumers)as a continuum is unavoidable.Cassava is grown mainly by small farmers who use labor-intensivemethods. Due to its wide adaptability, cassava can be grown over awide range of soil and climatic conditions as well as levels ofmanagement. However, most areas allocated to cassava areuplands, characterized by marginal soil fertility, with sloping orundulating topography, underdeveloped infrastructure ( especiallytransportation ), and a number of other relatively unfavorablecircumstances.Most cassava in Indonesia is produced by small farmers that areweak in resources endowment , either in economic or social terms.Little purchased inputs, especially chemical or inorganic fertilizers,are applied, and as a result cassava production is frequently blamedas the cause of soil degredation. The crops is mostly grown in uplandareas with undulating topography. Since its planting time should becompatible with the distribution of rainfall, the flexibility in planting andharvesting time is limited. As a consequence, the existence of a peak 15
  16. 16. in planting and harvesting time is difficult to avoid. Abundance ofcassava roots during the peak harvesting time results in low prices.From an individual farmer’s point of view, his income is determined byhis productivity level. Logically, any improvement in productivityshould increase farmer’s income. However, this rarely happens,because the price is governed by total amount of roots produced . Asprice fluctation is the result of supply and demand imbalance, anydecrease in price can be perceived as an indicator of limited demand.There is a belief that cassava farmers, especially the low incomegroups, are trapped in a vicious cycle : changes in yield-planted areaproduction, are countered by changes in prices which go up anddown. This condition in turn prevents farmers from improving theirincome.If the opinionthat demand is the most important limiting factor forproduction growth is true, the best solution should be a demand led-strategy. Demand for cassava in Indonesia is mainly in the areas offood., industry ( mainly processing of starchand starch-basedproducts), export and feed. Future prospects for using cassava asfood will depend mainly on : (1) rice availability, since rice is the mostpreferred staple food for Indonbesian people; and (2) cassavaproduct development activities , as the social bias against cassava asbeing a food for the poor is strong and real. The existence of starchprocessing and starch –based industries, especially on a large scale,have been present for some time., but their role in improving farmers’wefare should be questioned. The growth in cassava exports will facetwo barriers: first, strong competition from Thailand, and secondly, thedomestic price. Demand for cassava as a raw material for productionof feed depend on its price in relation to that of maize.It can be concluded that from the growers view point cassava isa cash crop rather than a subsitence crop, and therefore thecrop is a source of income rather than a source of food. As aconsequence, every effort to improve the crop’s performance shouldstrife to ensure an increase in the grower’s welfare. In addition, therehas no be a significant increase in net income for individual farmers, 16
  17. 17. due to correct balance between production and demand. In fact,economic and social issues are the principal constraints.Unfortunately, these two issues are beyond the farmer’scontrol.Concerted effortsamong farmers, government and non-government organizations, research and development agencies, andothers are urgently needed. While technical expertise shouldcontinously be improved, much is known already to help increase thepresent productivity level towards its full yield potential.CASSAVA IN MALAYSIAIn Malaysia, the processing of sago starch predates that of cassava,having been established before 1416. With its introduction, cassava,which is a much shorter term crop, quickly replaced sago palm as thepreferred raw material among starch processors. Hence, except fora small amount serving the fresh food market, cassava is planted inMalaysia mainly for starch processing. The cassava area inPeninsular Malaysia has declined steadily to 1,631 ha in 1997 afterpeaking in 1976 at 20,913 ha. This decline is due to the curbing ofillegal cultivation; land alienation policy with a bias against cassava;switching from cassava to more lucrative crops; rising costs ofproduction; low prevailing price for cassava roots; and competition forland for agricultural and non-agricultural activities during theeconomic boom prior to July 1997. Of the eight starch factoriesreported in Perak in 1984, only two are still in operation. Recently, inSabah, a starch factory opened to process roots supplied throughcontract farming from an area of more than 3,000 ha. In trade,cassava starch takes the form of flour, flakes, pearls and starchpowder. There is a growing demand for starch with importsamounting to 88,210 tonnes in 1997.Most of this starch is used in food industries, particularly for makingmonosodium glutamate (using about 3,000 tonnes of starch permonth). Other significant users are manufacturers of glucose, bakeryand biscuit products, textiles and paper. There is also increasing 17
  18. 18. interest in growing edible varieties of cassava for processing intosnacks.The future potential in terms of domestic demand for cassava starchis very good. Since the onset of the economic downturn faced bySoutheast Asia, the Malaysian government has actively encouragedagriculture (to offset the countrys huge food import bill amounting toalmost US$ 2.9 billion a year) by providing easier access to farmland.There is recent renewed enthusiasm for planting cassava forproduction of starch, dried chips for livestock feed and sweeteners(high fructose glucose syrup or HFGS). For large-scale mechanizedcassava production, certain prerequisites of soil type, terrain, climateand farm size matching the factorys capacity, must besatisfied. While land is hard to come by in Peninsular Malaysia, morethan 80,000 ha of land are still available in Sabah.Starch is the most likely product to be feasible and profitable in theimmediate future compared to dried chips and HFGS production,because of a high demand in the local market, and a well-establishedtechnology for starch processing. Stable, high-yielding varieties withintermediate to high starch content to ensure higher starch recoveryare required; better still if they can be harvested early.The potential of using cassava as a carbohydrate-rich animalfeedstuff is promising, but being low in protein compared to maize,additional protein is required from another source, entailing extracosts. Also, it is costly to dry cassava by artificial means. Although itis technically possible to produce HFGS from cassava, it involvesconverting starch by enzymatic processes – a complicated andexpensive procedure. This does not seem economically feasible inthe immediate future, given the current low world price for sugar.Instead, modified starches and their products have very good futurepotential as profitable agro-based industries. Modification of starchesnot only expands their scope of utilization by altering their physico-chemical characteristics, but also increases their value as comparedto native starch. 18
  19. 19. An alternative use of cassava, which has some prospects, is theproduction of snack foods. Although oil-fried crisps and crackers aretraditional snacks produced by cottage industries, only recently haveattempts been made by larger food processors to improve theirquality and packaging, and to target the more up-market urbanconsumer and overseas market. Preliminary work at MARDI hasshown that cassava makes a very good raw material for extrudedsnacks.CASSAVA IN THE PHILIPPINESCassava (Manihot esculenta, Euphorbiaceae.) is a perennial shrubnative to South America that is now grown throughout the tropics.Other common names for cassava are tapioca, mandioca, manios,sagu, yuca. In the Philippines, it is commonly called as kamotengkahoy or balinghoy. It is a major source of calories for some 300million people in the developing countries of the world. It is one of theworlds most efficient converters of solar energy to carbohydrates.Cassava is grown both as a single crop, and in combination withsorghum, maize, groundnuts, cowpeas, yams, sweet potatoes ,upland rice and certain other vegetables. Plant only high varieties and according to needs. For starch, VC-1,VC-2, VC-3, Datu, Lakan or Golden Yellow can be used. For food, orfeeds, use only Lakan or Golden Yellow varieties.Select only fresh, mature or healthy stems. The planting materials areconsidered fresh if the latex or sap comes out within six (6) secondsafter cutting and mature if the diameter of the pith or cork is not morethan half the diameter of the cortex. It is considered healthy if it ispest-free and the diameter of the stem is not loess than 1.5 cm.Obtain stalks from a healthy stand which is at least eight (8) monthsold. Rouge out other varieties that are mixed with the recommendedvarieties if any. Use a saw or bolo to prepare cuttings at 20-30cmlong. Keep the stalks for not more than five days, under shade inupright position. Handle carefully and do not throw cuttings to avoiddamage to the nodes. Do not use cuttings stored for more than 5days. 19
  20. 20. CASSAVA IN THAILAND.Traditionally an agrarian economy with rice as its main product, thecountrys agricultural sector has since expanded to cope with thedemands of its newly industrialized state. Thai agriculture has a clearadvantage over other newly industrializing economies, namely thelarge portion of land allocated for cultivation, a climate suited to thegrowth of a wide variety of crops, and high quality strains ofagricultural products.Cassava production is anticipated to record strong growth in Asia,much on account of Thailand, where, according to officials, a20 percent rise in production is foreseen in 2009, exceeding30 million tonnes for the first time. The international market for Thaicassava products has traditionally been the main growth driver for thecountrys crop, but concerns over subdued demand abroad promptedthe Government to intercede heavily in the sector, through reinstatingits usual price insurance and intervention purchase scheme, as wellas granting preferential credit to farmers. However, the fiscal strain ofsupporting the agricultural sector has led the Government to launch inNovember an agricultural options programme, in place of the pricepledging or insurance scheme. The programme seeks to removesome of the distortionary effects of price supports and will encouragequality over quantity. It will also minimize a longstanding problem ofcross-border subsidization of agricultural production, whereby rootsfrom neighbouring countries have been able to benefit from minimumprices. Against the backdrop of falling domestic root prices during theplanting period, these incentives (or at least the expectations ofcontinued strong support) were largely behind the record cassavaarea in 2009, but expectations of robust demand for the crop as afeedstock for ethanol in domestic and neighbouring distilleries havealso played a role.CASSAVA IN VIET NAM 20
  21. 21. In the News: Pest and disease crippled Cassava production in SE Asia International Center for Tropical Agriculture CIAT scientists and their partners in Southeast Asia have issued urgent preliminary guidelines to tackle deadly pest and disease outbreaks that have crippled cassava production in parts of the region. The move follows a CIAT investigation into reports from Thailand’s eastern and northeastern regions, of damaged and stunted cassava plants with low root yields. Cassava is an essential pro-poor crop in the region, where it is grown by around 5 million smallholders, mainly to supply the starch processing and animal feed industries. In Thailand alone, the industry is worth US$1.5 billion, and the country accounts for three-quarters of the world’s cassava exports.III. CASSAVA BUSINESS IN ASEAN 1. Cassava Trading Cassava exports rise on ASEAN demand Demand from Thailand and Vietnam helped to drive up the Kingdom’s cassava exports 88 percent in the first three months of 2011, compared to the same period last year, according to Camcontrol, a division of the Commerce Ministry. Cassava exports between January and March totalled 204,618, up 87.7 percent from 108,987 tonnes in 2010. Higher prices also helped to boost export revenues for Cambodia. Revenues for the period equalled US$9.9 million, or about a 143 percent increase from last year’s $4.1 million. Khuon Savuth, director of Camcontrol, tied the rise to demand from the Kingdom’s larger neighbors and said the increasing prices are pushing more and more farmers to plant cassava. 21
  22. 22. “The high price of cassava not only improves the living standard ofpeople but also upholds the national economy.”Chhorn Saroem, President of Chey Chamroeun Company, whichexports agricultural products to Thailand, said the increased farmingboosted her cassava shipments in the first three months of the year50 percent higher than the same period last year.“This year the farmers throughout Pailin province flock to cultivatemore cassava than other crops because of high price,” she said.She added that a tonne fetched 370,000 riels this year compared to110,000 riel last year.Khiev Sophet of Pailin, who typically grows corn, said he emphasisedcassava this season because of its higher price. He said, even withthe increased farming of the crop, “I believe the price should hold fornext year.”According to data from Camcontrol, Cambodia’s cassava exports in2010 totalled just 165,229 tonnes worth $12 million.Global cassava production in 2009 is forecast at 242 million tonnes,4 percent above the record of the previous year. The high priceepisode of 2007/2008 for traded food staples reminded policy-makersin many vulnerable countries, as well as the international community,to look toward indigenous crops as an alternative source to potentiallyexpensive and volatile cereals. Among these crops, cassava hasbeen at the forefront. As a crisis crop, cassava roots require fewinputs, can be left in the ground for well over one year and harvestedwhen food shortages arise or when prices of preferred cerealsbecome prohibitive. These attributes are behind an anticipatedexpansion of output in Africa, of about 3 percent, to some121.5 million tonnes in 2009.Table 1. World cassava production 2006 2007 2008* 2009** WORLD 224 217 233 391 242 22
  23. 23. 483 536 069 117 104 121Africa 118 461 449 952 469Nigeria 45 721 34 410 42 770 45 000Congo, Dem. Rep. 14 989 15 004 15 020 15 036ofGhana 9 638 9 650 9 700 10 000Angola 8 810 8 800 8 900 9 000Mozambique 6 765 5 039 8 400 9 200Tanzania, United 6 158 6 600 6 700 6 500Rep.ofUganda 4 926 4 456 4 942 4 500Malawi 2 832 3 239 3 700 4 000Madagascar 2 359 2 400 2 405 2 000Other Africa 15 251 15 354 15 923 16 233Latin America 36 311 36 429 37 024 36 606Brazil 26 639 26 541 26 600 26 000Paraguay 4 800 5 100 5 300 5 400Colombia 1 363 1 288 1 444 1 500Other (Latin 3 509 3 500 3 680 3 706 23
  24. 24. America) Asia 70 465 75 882 77 631 83 715 Thailand 22 584 26 411 25 156 30 088 Indonesia 19 987 19 988 20 269 20 500 Viet Nam 7 783 7 985 8 300 8 600 India 7 620 8 429 8 959 9 200 China, mainland 7 500 7 875 8 300 8 700 Cambodia 2 182 2 215 3 604 3 275 Philippines 1 757 1 871 1 941 2 200 Other Asia 1 053 1 108 1 102 1 151 Oceania 258 272 275 280While promising ethanol prospects are behind record cassava cropsin Indonesia and Viet Nam, (the regions other principal producingcountries), falling cotton and coffee returns in those countries havealso prompted more farmers to switch to cassava cultivation. Officialsin Viet Nam put the 2009 harvest at around 8.6 million tonnes. In lessthan one decade, cassava output in the country has more thanquadrupled, reflecting a strategy to gear the sector towardspredominantly supplying the international market. However, futureprogress is likely to be moderated by policy measures to limit thecassava area to no more than 400 000 ha. In the Philippines, public-private sector efforts to develop competitive domestic animal feedand ethanol industries through the commercialization of cassava 24
  25. 25. could pave the way for a record cassava output of well over 2 milliontonnes. The country has earmarked a doubling of the cassava areaby 2014 from current levels. Smaller cassava producing countries inthe region, such as Cambodia and the Lao Peoples DemocraticRepublic have also attracted foreign direct investment from mainlandChina and the Republic of Korea to expand their cassava energyfeedstock and starch production, through land lease initiatives andcapital outlays towards processing. This initiative contributed to asurge in cassava plantings in Cambodia in 2008 by around60 percent giving rise to an official production record of 3.6 milliontonnes. Prospects for 2009, however, have been marred by adverseweather conditions, which could see production fall by 10 percent.Global cassava trade set to recover in 2009, but increasingly confinedto regional and cross-border transactionsAfter experiencing a near 15 percent contraction in 2008, world tradein cassava products in the current year is expected to rise by32 percent to a record 12.5 million tonnes (chip and pellet weightequivalent).Table 2. World exports of cassava (product weight equivalent) TOTAL 2006 2007 2008 2009 Flour and starch 4 852 4 686 4 265 4 651 Thailand 4 616 4 416 3 963 4 316 Others 236 269 302 335 Chips and pellets 5 629 6 506 5 187 7 802 25
  26. 26. Viet Nam 1 041 1 317 2 000 4 000 Thailand 4 348 4 824 2 848 3 450 Indonesia 132 210 170 160 Others 108 156 169 191This forecast is based on the improved competitiveness of cassavastarch relative to grain based products, combined with soaringinternational demand for cassava as a feedstock for ethanolproduction, which have resulted in a stronger pace of cassavashipments to date by Thailand, by far the worlds largestinternational supplier. Overall, the country is anticipated to shiparound 7.8 million tonnes of cassava chips, pellets and starch in2009, up by 14 percent in volume from the previous year. But thearrival of Viet Nam on the arena to fulfil rising industrialrequirements in Southeast Asia represents the main reason behindthe prospect of record trade in the year.China (mainland) looks set to consolidate its position as themost important buyer on the global stage, accounting for over70 percent of all inflows in 2009.Table 3 : Thai Trade in Cassava 2005 2006 2007 2008 2009 TOTAL 6 240 8 964 9 240 6 810 7 766 Flour and starch total 3 212 4 616 4 416 3 963 4 316 Japan 622 694 729 873 725 China 525 723 694 611 1 125 26
  27. 27. Chinese province of Taiwan 502 676 548 483 620 Indonesia 348 968 667 417 270 Malaysia 229 312 256 296 400 Others 986 1 244 1 523 1 284 1 176 Chips and pellets total 3 028 4 348 4 824 2 848 3 450 China 2 766 3 963 3 168 1 214 3 000 Republic of Korea 265 268 20 474 111 European Union 246 341 1 436 989 20 Others -249 -224 200 170 319 Source: TTTA, FAOTrade in Chips and pelletsThe composition of cassava trade has undergone major changes.Trade in pellets (mainly for animal feed), once the bedrock ofinternational cassava demand, has collapsed. In 2009, the share ofpellets in the total volume of trade amounted to just over 2 percent,compared with over 84 percent at the beginning of the decade. Asiancountries, especially China and the Republic of Korea, have takenover the European Union as the major destination for cassava feedingredients, and look set to import around 275 000 tonnes in 2009.Concerns about a permanent retreat of the European Union from theimport market are resurfacing again. Despite some activity in 2008,the European Union purchased just 17 000 tonnes in 2009 so far andis unlikely to engage in any major purchase in the foreseeable future.Increased availability of cheap feedstuffs in Member States hasminimized demand for cassava, to close to disappearance.Global trade in chips is again expected to be centred in Asia,with China established as the worlds leading importer, principallyto meet capacity of the burgeoning cassava-based ethanol sector. 27
  28. 28. Indeed, demand for chips by the country is set to underpin aggregatecassava trade in 2009 and imports of the feedstock could rise by asmuch as 50 percent from the previous year, to 7.7 million tonnes. Inthe past, Thailand has met this demand, but in the current year, VietNam is likely to emerge as the chief supplier, with around 4 milliontonnes of cassava chip exports, around double the level of last year.As members of the ASEAN community, imports to China from bothThailand and Viet Nam attract zero duty, which, by boosting thecompetitiveness of cassava, has constituted an important driver forthe expansion of the regional market.As for cassava starch and flour, world trade is expected torebound, but not to the same degree foreseen in the global chipsmarket. Thailand is expected to dominate internationalshipments, with China again anticipated to be the leading starchbuyer, reflecting the policy-induced price advantage that cassavabased starch has maintained over grain products in that market. TheChinese Province of Taiwan has engaged in significant internationalpurchases during the course of the year, following the liberalization ofalternative markets for maize starch.Experiences of Small Cassava Farmers in Bukidnon, a presentationby Ms. Agnes Bolaños, Executive Director, Agri-Aqua Coalition forDevelopment- Mindanao during the 3rd LSFM RTW, related aboutthe case of Balugo farmers’ Multi-purpose Cooperative in supplyingcassava chips and by-products to San Miguel Corporation, one of thebiggest food and beverage processing company in the Philippines. 28
  29. 29. 2. CASSAVA INDUSTRI IN ASEANHere’s a list of popular culinary uses of cassava in thePhilippines.There are two kinds of cassava; the bitter and the sweet. Bittercassava are used as source of flour that are use to make tapioca,bread, cakes and pasta. It is also the source of ethanol for fuel andanimal feeds. It has some medicinal uses too.Cassava is the third largest source of carbohydrates for human foodin the world. This article will focus on the culinary uses of sweetcassava. Especially now that the price of rice had gone so high andsome countries are experiencing rice crisis, like the Philippines.Cassava is the best alternative. Cassava is much cheaper than riceand can be prepared in several ways as a food.Cassava Cake 29
  30. 30. Grated cassava are mixed with condensed milk, evaporated milk,coconut milk, sugar, eggs and grated coconut and then baked forabout 25 minutes. Toppings are added consist of egg yolks,condensed milk, coconut milk and coconut cream and then bakedagain for another 25 minutes. This is a Filipino favorite desert.Cassava BibingkaIt is cook by mixing the eggs, sugar, evaporated milk, grated cassava,butter then pour into a greased pan lined with banana leaves orcookie sheet. Coconut milk with flour and condensed milk are thenadded. Followed by egg yolks pour over baked bibingka and sprinkledwith grated cheese and broil till golden brown.Cassava PuddingPackets of cassava is mixed with evaporated milk, sweetened youngstring coconut, condensed milk, and butter and baked for an hour.Cassava Chips 30
  31. 31. Cassava chips are prepared by slicing thinly the cassava in uniformmanner and deep fried and then soaked into a mixture of water andsugar, drained and fried again. There you have it, fresh and nutritiouscassava chips.Sweetened Cassava (Minatamis na Kamoteng Kahoy)Sweetened cassava is so easy to prepare. Peel and slice the cassavaaccording to your style, caramelized sugar in the pan then pour slicedcassava and wait until all liquid evaporated. It’s done, so easy.Boiled CassavaSimply peel the cassava and cut them according to your desired sizeand boil it and serve it with your favorite dish or dishes. It can alsoserve as a snack by dipping it in sugar.Fried Grated CassavaThis is one of the easiest and affordable ways of cooking cassava.Peel and grate the cassava add sugar and mix well. Pour somecooking oil in the pan, put one cup of grated cassava and flattened itafter a few minutes turn the other side until golden brown. 31
  32. 32. Cassava Balls (Bola-Bolang Kamoteng Kahoy)Just mix grated cassava, salt, flour, chopped spring onions and dicecarrots (optional) and deep fry. Serve with sauce, it’s done.Mashed Cassava (Nilupak Na Kamoteng Kahoy)Cassava For EnergyChina imports 98% of cassava production from Thailand to producebiofuel, the US uses 16% of the worlds corn supply - enough to feed350 million people - to produce ethanol only to be burned in its SUVs.Al Gore , who once supported the policy of ethanol production, nowcalls it a mistake because the rush for biofuel is driving the foodprices . The Food and Agriculture Organization ( FAO )) has assertedthat food prices have gone up by 15% during October 2010-January2011 alone, bringing additional 45 million people below poverty line.The soaring food prices are the cause of political turmoil in Algeria,Egypt and Bangladesh. My intention is not to make a case againstproduction of nukes and biofuel.This is about 0.2% of the worlds total GDP and is well within thecapability of G20 nations that account for about 90% of worlds GDP.If rich nations are really serious in saving the planet, some sacrificeneeds to be made by them. This is the only way to reduce our 32
  33. 33. dependence on fossil-based energy. The last four Conference ofParties - Bali (2007), Poznan (2008), Copenhagen (2009) and thelatest at Cancun (2010) - have not achieved anything worthwhile .• The Philippine Energy Plan. The Presidents Energy Plan aims to make the country 60% energy independent by 2010. Promotion of alternative fuels, including biodiesel and bioethanol, is one of the five components of the plan•• The Biofuel Act of 2006 (THE PHILPPINE) a. Mandates a minimum 1% biodiesel blend into all diesel engine fuels, which increases to 2% after two years. b. Mandates a minimum 5% bioethanol blend into all gasoline fuel distributed and sold in the country within two years, going up to 10% after 4 years. (source: Philippine DOE) c. Investments will go into land for marginalized landless farmers who are supposed to benefit from the opportunity to grow biodiesel feedstocks including sugar cane, cassava, maize, soybeans and jatropha.CASSAVA BUSINESS : PROSPERITY FOR ALLThe vision for cassava is that cassava will spur rural industrialdevelopment and raise incomes for producers, processors andtraders. Cassava will contribute to the food security status of itsproducing and consuming households.A raison dêtre for developing a global cassava marketing strategy isthe belief that it will contribute to the economic development ofprocessing communities and well-being of numerous disadvantagedindividuals in the world. It is suggested that a necessary condition forthe implementation of this strategy is the existence of a growingdemand for cassava.To achieve this vision the Global Cassava Strategy is proposed. Theessence of the Global Cassava Strategy is to use a demand-drivenapproach to promote and develop cassava-based industries with theassistance of a coalition of groups and individuals interested indeveloping the cassava industry. 33
  34. 34. The strategy consists of identifying, in a systematic manner, theopportunities and constraints of cassava at each stage of thecommodity development cycle. This can be done by groups andindividuals interested in developing the cassava industry; producers,processors and consumers of cassava, as well as associatednational, international and non-governmental organizations. Conceptsof business development and management as well as internationaleconomic cooperation are important tools in implementing thestrategy. Scientific support is also essential to help overcomeimportant problems within the production-processing-marketingcontinuum. Adaptive research is essential to ensure that existing andevolving knowledge is harnessed in an appropriate and usefulfashion. The overall aim is to achieve demand-driven technicalchange and economic growth.The Global Cassava Strategy suggests the utilization of "industryanalysis". Industry analysis consists of identifying, in a systematicmanner, the opportunities and constraints at each stage of the supplychain. Industry analysis involves stakeholders in a participatory effortto identify strengths, weaknesses and opportunities. Industry analysisis a demand-driven approach to technical change through:i) Explicitly considering stakeholders as equal partners in determining the needs and future plans for a dynamic cassava industry;ii) Building a practical, shared vision for cassava development;iii) Helping make action plans for the industry, including the who, what, why, and how, plus the question, with whose money?iv) Building better linkages with private sector organizations;v) Better links with and among public-sector institutions;vi) Co-stewardship of research and service outputs with users;vii)Rapid introduction of high-impact technologies through public and private sector partnerships.The initiation of this Strategy will require catalysts capable ofidentifying marketing opportunities, and bringing these to the attentionof stakeholders, and champions, capable of providing support andresources for the growth and development of cassava markets. Evenif the stakeholders agree that there is a growth market for cassava,there may still be need for research and development, provision ofinfrastructure and investments, and changes in policies to grasp thenew opportunity. 34
  35. 35. A necessary and perhaps first step in the development of a market-driven global cassava strategy is the identification of markets that aregrowing or could potentially grow. A second step is the provision of aconsistent supply of a relatively uniform product. A third step, relatedto step two, is to provide the market with a competitively pricedproduct that meets the consumers requirements. A fourth step is tosecure the cooperation of those associated with the marketopportunity.The development path for cassava will be product-, location- andtime-specific. Nevertheless, it would appear that if the market growthpotential exists because of a structural change in the economy (e.g.decreasing number of farmers and increasing number of urbanconsumers of cassava products, resulting in market growth) onewould expect that NGOs and national governments would be in thebest position to act as champions and catalysts. If, on the other hand,the market growth exists because cassava is price competitive thenboth national and international agencies may act as champions andcatalysts. Finally, in the case where cassava has a unique advantagethe catalyst or champion may not be a national or internationalagency, but instead be an industry or corporation that has proprietaryinterest in cassava.The global strategy should be seen as comprising both bottom-upand top-down approaches. The global strategy is an amalgamation ofnational, regional and continental strategies and plans, augmented byglobal efforts to identify and stimulate markets. The national effortswill be the action-sites for implementing the global strategy. Theglobal effort assists with financing, changing policies that constrainmarkets.National strategies should evolve from a process of industry analysis.In this process, the relevance of roots and tubers, especially cassava,as a possible entry point in developing a national strategy should beexplored. In particular, special reference should be given to the role ofthe cassava production-processing-marketing continuum in specificecological zones or socio-geographic communities, from theviewpoint of food security or income generation and economicdiversification.Regional strategies should be developed where farming systems,environmental conditions, and processing and utilization of cassavaare similar. Regional strategies should be supportive of and 35
  36. 36. supported by regional entities such as ASARECA in East and CentralAfrica, SACCAR in Southern Africa, or CORAF in West Africa that areactively involved in agricultural development of root crops. Theseregional entities could act as champions or catalysts for cassava.The continental strategy expands on national and regional strategies.The continental strategy highlights the needs and support thattranscend national and regional concerns.The Global Strategy seeks global support to help implement thestrategy. Development banks and institutions such as the WorldBank, Asian Development Bank, Inter-american Development Bankand African Development Bank may play a vital role. The GlobalStrategy provides assistance to cassava-growing nations that aredeveloping and supporting national strategies. The Global Strategyshould assist with the development of a global forum for the pursuit ofcassava market opportunities, identification of source of capital, andpromotion of a strong base of research support for global geneticresource and enhancement studies, including biotechnology.A Case Study : INDONESIAAn analysis for one cluster of Mocaf agroindustry development.Minimum size of one cluster : 300 hectaresOne Farm Family manages minimum land : 2,5 hectaresThe cassava high yeilding varity be grown by farmer who joint theCluster : Darul Hidayah or Manggu, with the productivity about 100ton/hectare of fresh cassava with the manurity is 10 months.Every month the farmer grows 0,25 hectares due to the maturity ofcassava to be grown ( Darul Hidayah or Manggu varieties ) is 10months. Thus the farmer can harvest his cassava every month for0.25 hectares for 10 months duration of one period of cassavafarming.If the Darulhidayah or Manggu variety grown by farmer can produce100 ton fresh cassava per hectare, then for 0.25 hectare every monththe farmer can harvest about 25 ton of fresh cassava. That mean thefarmer can produse cassava every month about 25 ton of freshcassava. 36
  37. 37. For one Cluster of 300 hectares will be managed by 120 farmers andthey will be grouped into 6 groups or 20 farmers for each group offarmers.All fresh cassava produced by all farmers in the Cluster should beprocessed into Cassava Chips or Dried Cassava, even it can befurther processed by farmers as a group into Cassava Powder orModified Cassava Flour ( Mocaf ) or Starch/Tapioca. Farmers whojoint the Cluster , will never sale fresh cassava, but only saleprocessed cassava to the factory or customers. Even in the very nearfuture, those farmers , member of Cluster of Cassava Agroindustrywill never sale any fresh cassava any more.In general the cost of production for produsing 30 tons of CassavaChips per hectare ( from 100 ton fresh cassava per hectare, ) aboutIDR 25 million or equivalence to USD 2.8 thousands/hectar, includingthe cost of slicer and dryer. Thus the cost of 0.25 hectar/month forproducing 7,5 ton of cassava chips is USD 700 . If the price of 1 toncassava chip is IDR 2,000,000 or USD 222/ton chips. Then therevenu of farmer by selling 7.5 ton of chips totaly USD1,665/month. Therefore the income of farmer for a monthbecome USD 1,665 – USD 700 = USD 965/month ( from 0.25hectare of land ) or equivalent to IDR 8.7 million/month. This isrelatively high income for the farmer in general compared to those ofother crop’s farmer including rice farmer. This is the income for thefarmer, during the month of 11th up to the 20th. At the month of20th all loans of farmer to the Bank or to the money lender iscompletly paid.Starting at the month of the 21 st. every farmer will have higherincome due to less in expences in producing the same amount ofchips, 7.5 tons/month. The farmer will have saving in from seeds,fertilizer, and the processing equipment (slicer and dryer). It wascalculated the farmer’s income starting the month of 21st and beyondwill be around Rp 16 million/month or equivalence to USD1,800/month.All participant farmers in the cluster, 120 farmers, work together toproduce Chips every month and send it to the factory of Mocaf. Thatevery month the Mocaf Factory received around 120 X 7.5 tons ofChips = 900 ton Chips/month and sell to Indofood. The factory makeprofit about IDR 300,000/Ton or equivalent to USD 33/ton. Thusevery month the Factory can earned frofit : 900 ton x USD 33 = 37
  38. 38. USD 29,700/month.The Cassava Business in ASEAN Region through the Agroindustry Clustering Model Development will become one of choice by farmers and businessmen, because this model can give benefit to all cassava stakeholders, including Farmers or we can said that Cassava : Prosperiry for all.IV. FUTURE CASSAVA BUSSINES DEVELOPMENT IN ASEAN : 1. Organization • ASEAN CASSVA BUSSINES BOARD (ACBB) • ORGANIZATION STRUCTURE : - General Chairmen (Base on Rotation) - Nine Chairmen - Secretary General - Secretary - Treasure - Vice Treasure - Directors of division (The Numer will be discussed) • VISION : Cassava Business in ASEAN as a prime mover in increasing prosperity of the farmers • MISION : - Increasing Cassava production in ASEAN - Quality Control on Cassava production - Strengthening intra ASEAN tread and ASEAN international tread in Cassava - Increasing income of the cassava Famers and other stake holders - Achieving and increasing prosperity for all • OBJECTIVE : Increase income of the farmers of the cassava famers and other cassava stake holder 38
  39. 39. • PROGRAM : Exchange information on cassava Joint Research and Deployment ln cassava Training and Education in cassava business Exchange of expert in cassava Exchange of Visit • OFFICE (Will be discussed) • FINANCIAL (Will be discus) 2. MANAGEMENT OF CASSAVA BUSINESS 1. In each ASEAN member country Should establish a National Cassava Business Board (NCBB). 2. Will be online operation between ASEAN Cassava Business Board and all National Cassava Business Board 3. Establish cassava agro- industry cluster model to be introduced and be implemented by the cassava famers in all ASEAN member countries. 4. The Farmers will sell only semi processed and processed cassava products : Cassava Chips, Dried Cassava, Cassava Powder, Mocaf, Tapioka, Starch, Ethanol, etc. 5. Every National Cassava Business Board (NCBB) Should have a stock of Cassava Product Ready For Sale.V. CONCLUSION 1. Cassava Business In ASEAN Cassava Business In ASEAN is very good opportunity, due to increase of world demand on cassava and relative high price Cassava Business In ASEAN is very prospective in the future, especially in facing food crisis suc as in the year of 2025 (food diversivication) 2. Cassava : Prosperity for All Sense Cassava has multy full process : food, feed, fuel (bio ethanol), bio degradable plastic an some medicinal 39
  40. 40. product, there for cassava will give benefit to many stakeholder. This means cassava can give prosperity for all.Nusa Dua, Bali, 8 November 2011Presenter,Mr. Suharyo HusenChairman, Indonesian Cassava Society (ICS) 40

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