Cassava is an important yearly food crop grown throughout Nigeria. It is a tuberous crop and has the ability to thrive in poor soil because it has considerable resistance to drought. Botanically called Manihot esculenta, maniac or tapioca, cassava tubers are used to produce one of Nigeria’s staple food garri.
Export
Types
Cassava for export includes dry cassava leaves, chips, pellets, cassava meal,
flour, flakes, starch, and ethanol. All these products can be exported.
Detailed research reports and feasibility studies on the establishment and
running of any of these aspects of the project are available.
Uses
Cassava is also used to produce animal feed. The dry roots chips and pellets
are usually preferred by industrial animal feeds producers in America and
Europe. Alcohol is also extracted from cassava. Textile and food industries
need starch.
Production
Nigeria is a major producer of this tropical crop in Africa. In 2012, it
produced over 80, 000 metric tonnes of the crop. Other major producers are
Brazil, Thailand, Indonesia, and Zaire.
Export
Globally, only 15 per cent of the total production of cassava is exported with
Thailand being the major exporter. Cassava and its derivatives were de-listed
from the export prohibition lists since 1996 and any Nigerian can invest and
export any processed product(s). Its export is now encouraged in the country
among other food crops.
Direction Of Export
The direction of export is mainly Europe and North America with European Union
accounting for about 90 per cent of the total buyers. Details of the foreign
buyers of industrial starch, cassava chips, pellets, and flour are available
for any prospective investor. About 30 per cent of cassava production globally
is used for starch and other industrial products with less than one per cent
processed into ethanol particularly in Brazil. It is also a choice animal feed
raw material because of its high carbohydrate content. It could also be mixed
with another protein source like soya beans.
Europe Market Overview
Europe is the major market for cassava. The compound feed formulation is the
main attraction for the crop. About 90 per cent of the traded cassava in Europe
is from the developing countries, including Nigeria. Main suppliers are
Thailand (about 85 per cent), Indonesia (about six per cent), sub-Saharan
Africa is yet to contribute significantly to world trade in cassava with about
three per cent recorded in the early part of the millennium.
The principal buyers are Netherlands (over 40 per cent of total Europe imports), Germany (about 20 per cent), Belgium and Luxembourg (about 13 per cent), France (eight per cent), U.K (10 per cent) and Italy (two per cent).
Transportation And Handling
Transportation and handling constitute high export costs. This is due to the
bulky nature of the product. This cost could be as high as 50 per cent of the
total cost. But proper management of cost reduction programme is therefore
recommended for those who wish to go into this venture, as the reduction of
costs will lead to a very high profit. Cassava pellets are usually cheaper to
transport and handle than other processed products like industrial starch.
Quality
Feed millers are very critical about quality. Consistency of quality is very
important for them to maintain the standards of their products.
Quality is usually in terms of nutritive value. Minimum standard specifications
are as follows: 70 per cent for chips and flour, while 62 per cent goes for
pellets. The moisture content remains at 14 per cent. For fibre the moisture
content is five per cent, while ash is three per cent.
Chips are normally white or near white, clean, free of mold, foreign matters, insect damage and without off odours. Length of chips should be 4-5mm. It should be noted that if the quality standard is not maintained the export project is bound to collapse.
Packaging
Packing is done in cotton sacks, multi-craft paper bags or clean jute bags;
pellets should be uniform in shape and size, less fragile and should be
compatible for handling, storage, and transportation. Palletising equipment
exist for the production of pellets. Prospective investors can see the
professional for guidance.
The current price of Thailand’s hard pellets (Nigeria’s equivalent) is 3,500 DM per ton, industrial starch $2,500 US per ton as of January 2011(please note that the international price fluctuates and project plan market price) would be worked out based on the current situation.
The Processing Plants
The plants and machinery for setting up the cassava chips and pellets,
industrial starch and flour are locally available. However, arrangements can be
made for foreign machines on request. There are foreign machines from Brazil,
South Korea, Japan, India, among others.
Raw materials, labour
and all other required inputs are locally available.
