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International Centre for development oriented Research in Agriculture

Kwame Nkrumah University of Science and Technology

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WorkGhan

dentary Farming Systems Project Ministry of Food and Agriculture

nstraints and opportunities for small and medium scale rocessing of cassava in the Ashanti and Brong Ahafo

Regions of Ghana

ing Document Series 117 a – 2004

Constraints and opportunities for small and medium scale

processing of cassava in the Ashanti and Brong Ahafo Regions of Ghana

Paulina S. Addy Imelda N. Kashaija

Margaret Taona Moyo Nguyen Khac Quynh

Sukhpal Singh Peter N. Walekhwa

This report is a product of team work with equal contribution from the authors whose names are listed in alphabetical order

International Centre for development oriented Research in Agriculture (ICRA)

P O Box 88, 6700 AB, Wageningen The Netherlands

Department of Agricultural Economics and Farm Management (DAEFM), Kwame Nkrumah University

of Science & Technology (KNUST), Kumasi, Ghana

Sedentary Farming Systems Project (SFSP) P O Box 473, Sunyani,

Ghana

Ministry of Food and Agriculture (MOFA) P.O. Box 86, Sunyani

Ghana

ABSTRACT

The study assessed the current and potential market for cassava products from small and medium scale processors in Brong Ahafo and Ashanti Regions of Ghana, and developed recommendations for improving small to medium scale cassava processing of cassava. The ICRA team followed the Agricultural Research for Development (ARD) procedure developed by ICRA. The ARD procedure contributes to wider development objectives such as poverty alleviation, food security, competitiveness of farming enterprises and sustainable resource use. The procedure uses participatory and systems approaches to integrate the varying perspectives of different stakeholders. It also facilitates team work across different disciplines and institutions. Based on its analysis of the cassava marketing chain in Ghana, the ICRA team came up with some insights which require stakeholders to look into: Research work done in Ghana indicates that it is feasible to substitute wheat flour by HQCF for bakery, glue extenders and other products. Using the information available on the substitution rates, potential demand for HQCF regionally and nationally in Ghana need to be established. Issues of scale of operation and organization of supply of raw material supply are also areas that need focusing to transform cassava into a competitive industrial crop.

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ACKNOWLEDGEMENTS The ICRA team would like to extend its profound gratitude to the International Centre for development oriented Research in Agriculture (ICRA), The Netherlands for fellowships granted and the learning opportunity offered. Our sincere thanks also go to the Kwame Nkrumah University of Science and Technology (KNUST) especially the Department of Agricultural Economics and Farm Management (DAEFM) of the Faculty of Agriculture for providing transport and accommodation for the entire period of the field study. Prof. D.B.Okai, the dean of the Faculty of Agriculture, deserves special mention for his warmth and readiness to provide support to the team and also Dr. Andivi Bakang, the Head and Dr. Kwasi Ohene-Yankyera of the DAEFM, for their immense assistance. Our special thanks go to the Sedentary Farming Systems Project of GTZ/MOFA, Sunyani for providing accommodation and transport during the data collection period. We are indeed grateful to Mrs Rita Weidinger, the GTZ Team leader for immense contribution to the study by offering direction. We would also like to acknowledge the reception and valuable contributions received from the Brong Ahafo Regional Minister and to Mr James Bekoe, without whom our movement in the region for the second leg would not have been possible. We also express our appreciation to the Root and Tuber Improvement Programme (RTIP) for providing relevant information and guidance to the study. To Mr. Vicent Achirinah and Dr Hans Dapaah of the Crops Research Institute, the team extends its gratitude for their valuable input. Primary information for this study would not have been possible without the information provided by the farmers and processors interviewed at Adidwan and Woraso, the end users of cassava products at Logs and Lumber Ltd and Ghana Bakers Association, Kumasi in the Ashanti Region. We also thank farmers, processors and end users of cassava products interviewed at Aworowa, Asueyi, Akrofrom, Techimantia, Akaanse, Berekum and Oti Yeboah Complex Ltd, Sunyani in the Brong Ahafo Region. The Plant Manager of the Ayensu Starch Company, Mr. Silva Lumor and Mr. Kofi Abura of Motherwell Farms, deserve our acknowledgement for all the information they provided. Last but not least, the team is indeed grateful to the Care-takers: Mr. Kwadwo Boakye and Mr.Boadi, of Guest Houses A and B respectively of the Institute of Renewable Natural Resources, KNUST for making our stay and working environment worthwhile. To Mr.George Allotey, our cook, we are so grateful for the wonderful meals provided to us. For the entire movement in Ghana during the field study period, Mr.Kwame Nkasa, our driver, deserves a pat on the back for the level of dedication exhibited. Start here!

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THE ICRA TEAM 2004, GHANA

Name: Imelda N.Kashaija Discipline: Crop Protection/ Nematology Institution: National Agricultural Research Organisation (NARO) Position: Centre Manager Address: Kachwekano Agricultural Research and Development Centre. P.O.BOX 421, Kabale, Uganda Telephone: 256 486 23064 Fax: 256 486 23935 E-mail: ikashaija@yahoo.co.uk Name: Margaret Taona Moyo Discipline: Livestock/Pasture Specialist Institution: Department of Agricultural Research and Extension Position: Head of Station Address: Henderson Research Station, P.Bag 2004, Mazowe, Zimbabwe Telephone: 263-75-2281-4 Fax: 263-75-2284 E-mail: moyomt@yahoo.com Name: Peter N. Walekhwa Discipline: Agricultural Economics Institution: Makerere University, Kampala Position: Lecturer Address: Department of Agricultural Economics and Agribusiness P.O.BOX 7062, Kampala, Uganda Telephone: 256-41-531152/256-77-511654 Fax: 256 41 531641 E-mail: walepet@yahoo.co.uk Name: Paulina S. Addy Discipline: Human Nutrition Institution: Ministry of Food and Agriculture. Position: Regional Development Officer Address: P.O. Box 86, Sunyani, Brong -Ahafo Telephone: + 233-61-27316 Fax: + 233-61-27194 E-mail: addypolly@yahoo.com Name: Nguyen Khac Quynh Discipline: Agricultural Economics Institution: Vietnam Agricultural Science Institute (VASI) Position: Senior researcher Address: Thanhtri - Hanoi - Vietnam Telephone: + 84-4-8615480 Fax: +84-4-8613937 E-mail: qqueduong@yahoo.com Name: Sukhpal Singh Discipline: Agricultural Economics Institution: Punjab Agricultural University (PAU) Position: Agricultural Economist Address: Department of Economics, PAU, Ludhiana Punjab, India Telephone: + 91-98146 28444 Fax: + 91-161- 400955 E-mail: sukhpalpau @ rediffmail.com

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TABLE OF CONTENTS Abstract i Acknowledgements iii Presentation of the 2004 ICRA Ghana team v Table of contents vii List of figures viii List of tables viii List of pictures ix List of acronyms xi Executive Summary xiii 1. INTRODUCTION 1 1.1 Institutional context 1 1.2 Objectives of the study 2 1.3 Focus of the study 3 2. METHODOLOGY 5 2.1 Research process 5 2.1.1 ARD-procedure 5 2.1.2 The phases of the ARD procedure 5 2.2 Methods and tools for data collection and analysis 8 2.2.1 Analysis of demand of processed products from cassava 9 2.2.2 Analysis of supply of cassava as raw material for gari, flour and starch 10 3. RESULTS 11 3.1 Traditional cassava in Ghana: gari 11 3.1.1 Current demand for gari 11 3.1.2 Potential demand for gari 16 3.1.3 Conclusions 18 3.2 Demand for flour for bakery products 18 3.2.1 Current demand 18 3.2.2 Potential demand 21 3.2.3 Conclusions 21 3.3 Demand for flour for glues and adhesives 21 3.3.1 Current demand 21 3.3.2 Potential demand 22 3.3.3 Conclusions 23 3.4 Processing of cassava flour and of gari 24 3.4.1 Scale of operation 24 3.4.2 Cassava flour production process 25 3.4.3 Major cassava flour processing activities 26 3.4.4 Profitability of the cassava flour processing enterprises 30 3.4.5 Processing capacity 32 3.4.6 Constraints and opportunities 32 3.4.7 Conclusions 33 3.5 Starch production 34 3.5.1 The Ayensu Starch Company 34 3.5.2 Costs of operation 35 3.5.3 Current demand for cassava starch for industrial use 37 3.5.4 Potential demand of cassava starch in Ghana 38 3.5.5 Conclusions 40

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3.6 Supply of fresh cassava for processing 40 3.6.1 Cassava production 40 3.6.2 Cassava marketing 46 3.6.3 Conclusions 48 4. RECOMMENDATIONS 51 4.1 Potential of substituting wheat flour by HQCF 51 4.2 Scale of processing 52 4.3 Organisation of supply 52 REFERENCES 53 ANNEXES Annex 1 Terms of reference 55 Annex 2 Stakeholder analysis 61 Annex 3 Research questions 63 Annex 4 Field study work plan 69 LIST OF FIGURES 1.1 Location of the study area 2 1.2 Research focus 4 2.1 Research process 5 2.2 Organising the team 6 2.3 Defining the system of interest 7 2.4 Identifying strategies 8 3.1 Analytical framework 11 3.2 Price trend for Gari (2002-2004) 15 3.3 Problems in the cassava market chain for gari 16 3.4 Problems in the cassava market chain for flour 20 3.5 Major cassava flour processing activities 27 3.6 Ayensu Starch Factory product destinations 35 4.1 Stakeholders and linkages required for analysing the cassava market chain 51

LIST OF TABLES 1.1 Objectives of the field study 3 2.1 Concepts and tools used 8 3.1 Gari exports from Ghana (1997-2003) 12 3.2 Retail prices of various grades of gari 14 3.3 Demand for wheat/cassava flour 18 3.4 Comparative prices of wheat flour and cassava flour in different bakery

associations 20

3.5 Export of cassava flour 21 3.6 Production of plywood and wheat flour used for plywood production in Ghana 22 3.7 Demand for what flour and cassava flour by plywood industries 23 3.8 Classification of cassava flour and gari processing enterprises 25 3.9 Scale of operation of processing units 25 3.10 Flour processing by a micro enterprise in Brong Ahafo 31 3.11 Flour processing at Motherwell Farms Ltd 31

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3.12 Prices and costs of starch of ASC in world markets 36 3.13 Starch imported into Ghana 1998-2002 37 3.14 Cloth production in Ghana 1998-2002 38 3.15 Glucose syrup imported into Ghana 1998-2001 39 3.16 Ethanol imports into Ghana 1998-2001 39 3.17 Area, yield and production of cassava in Brong Ahafo Region 41 3.18 Area, yield and production of cassava in Ashanti Region 41 3.19 Area, yield and production of cassava in Ghana 41 3.20 Varieties grown on Adidwan, Akrofrom and Aworowa areas of Ashanti and

Brong Ahafo Regions, and their uses 42

3.21 Yield and dry matter content of newly released improved cassava varieties at 12 month maturity period

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3.22 Cassava production costs in Adidwan, Akrofrom and Aworowa areas of Ashanti and Brong Ahafo Regions

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3.23 Cassava production costs 43 3.24 Farm-gate prices of cassava in selected locations in Brong Ahafo and Ashanti

Regions 47

LIST OF PICTURES 3.1 Peeled cassava ready for grating left on the floor 13 3.2 Peeled cassava ready for grating 13 3.3 Grated cassava left in the open for fermentation 13 3.4 Grated cassava exposed to animals 13 3.5 Effluent from fermenting cassava trailing on the ground 13 3.6 Evidence of training on quality issues by the Ghana Standards Board 13 3.7 Packed gari in a supermarket 17 3.8 Manual peeling of cassava roots 28 3.9 Washing of peeled cassava roots 28 3.10 Grating of cassava 28 3.11 Pressing of cassava grit before drying 28 3.12 Cassava roots for starch processing at the Ayensu factory 35 3.13 The cassava starch for ASC is loaded for export 35

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LIST OF ACRONYMS ARD Agricultural Research for Development BA Brong Ahafo CRI Crop Research Institute DAEFM Department Of Agricultural Economics and Farm Management EPA Environmental Protection Agency FDB Food and Drugs Board FORIG Forestry Research Institute of Ghana FRI Food Research Institute GEPC Ghana Export promotion Council GSB Ghana Standards Board HQCF High Quality Cassava Flour ICRA International Centre for Development Oriented Research In Agriculture IFAD International fund for Agricultural Development KNUST Kwame Nkrumah University of Science and Technology MG Monitoring Group NBSSI National Board of Small Scale Industry NGO Non Governmental Organization NRI Natural Resources Institute PSI Presidential Special Initiative RTIP Root and Tuber Improvement Programme SFSP Sedentary Farming systems Project TCC Technology Consultancy Centre TOR Terms of Reference

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EXECUTIVE SUMMARY 1. Terms of Reference As one of its approaches to capacity building, ICRA uses a real problem situation in a given country, to offer both professional context for learning and also to provide answers to complex rural development problems. ICRA’s partner organisation in Ghana, the Department of Agricultural Economics and Farm Management (DAEFM) of the Kwame Nkrumah University of Science and Technology (KNUST), asked the ICRA team to assess the current and potential market for cassava products from small-medium scale processors in Brong Ahafo and Ashanti Regions of Ghana, and develop recommendations for improving small to medium scale cassava processing. The Root and Tuber Improvement Programme (RTIP), the Sedentary Farming Systems Project (SFSP-GTZ), and the Presidential Special Initiative (PSI) for cassava joined DAEFM as main stakeholders with a strong interest in the field study results. 2. Methodology The ICRA team followed the Agricultural Research for Development (ARD) procedure developed by ICRA. This procedure is a process for planning research and development activities that respond to the needs of clients and beneficiaries. The ARD procedure contributes to wider development objectives such as poverty alleviation, food security, competitiveness of farming enterprises and sustainable resource use. The procedure uses participatory and systems approaches to integrate the varying perspectives of different stakeholders. It also facilitates team work across different disciplines and institutions. The study was conducted using mainly rapid rural appraisal methods. Data was collected through focal groups and key informants. 3. Results Cassava marketing chain The study focused on establishing the potential for producing marketable flour for industrial and food use, starch for industrial use, and gari for food from cassava by small and medium scale processors, and the possibility for realizing this in Brong Ahafo and Ashanti Regions. Emphasis was put on understanding of constraints limiting production and supply of both raw cassava material and processed products, and opportunities available for uplifting small and medium scale cassava processing to a level that would make it a viable enterprise. Demand and supply of gari For the demand and supply of gari in Ghana, a lot can be achieved if the required quality control measures are put in place. RTIP is entering into another phase with a focus on post production and marketing and this is the time it can establish a strong linkage with a marketing organization to manage the marketing aspect of the programme.

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Demand for flour for bakery products, glues and adhesives The use of cassava flour for industrial use, particularly for bakeries is still low in the country. Price of cassava flour is lower than that of wheat flour, but due to the non-availability of cassava flour and the absence of gluten in cassava flour, bakers were only using wheat flour for bread making. The potential demand for cassava flour is high, however, due to urbanisation and changing habits and preferences of the consumers. The demand for cassava flour in domestic and international markets is on the increasing trend. Due to the constant increase in the plywood production in the country, the potential demand of cassava flour is high. The team’s analysis revealed that plywood manufacturers were willing to substitute wheat flour with HQCF due to its lower prices, but due to non-availability of HQCF in the country, they were using wheat flour only. Processing of cassava flour and of gari The cassava flour processing units visited in the two regions were operating at a micro enterprise level with an average production of less than 100kg per day. All the cassava flour processing units visited were operating at excess capacity. Only one of the enterprises visited was operating at 50% of the installed capacity and the rest of the enterprises were operating below 50% of the installed capacity. This scale of cassava flour production cannot sustain commercial production for industrial use. Raw material for processing into cassava flour is not a major constraint. Raw materials can be accessed within a radius of 5 miles to processing units. Some of the varieties for producing HQCF are already being grown in the two regions. The key constraint is the organization of transportation of the raw materials from farms to processing units. Lack of drying facilities was the biggest setback to flour processing for the processing units visited in the two regions. No fermentation should occur in processing of HQCF. The drying facilities must be in place to process all the grated cassava the same day. Lack of big cassava drying facilities had driven some processors out of production. Starch production The Ayensu Starch Company Ltd. (ASC) is the first of ten proposed cassava starch factories planned under the President's Special Initiative. The team analysed the efficiency of this operation and found out that the sales of starch produced at ASC are inadequate to support an efficient operation of the factory. The consequent excessive effect of fixed costs on the unit costs of the product adversely affects the viability of the company. At present, using raw material with low dry matter and high transportation costs are amongst the many causes of high variable costs, which together reduce the profitability of the operation. In order to reduce the production costs both at the factory and in the field, more varieties with high dry matter and root yields suitable for starch processing should be selected and issued by RTIP, a sustainable raw material supply (both quality and quantity) should be put in place, much wider use of varieties with higher dry matter content and better yields by farmers should be promoted and transportation costs should be reduced, possible including the reduction of the average distance that roots are hauled.

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There is good potential demand for products that could be made from locally produced cassava and starch in Ghana, including glucose syrup, modified starch, and industrial alcohol. The production of these products should be very carefully analyzed from both technical and economic standpoints and, if appropriate, their manufacture should be exploited as quickly as possible. A very rigorous analysis should be made of the viability of any further large-scale factories for making cassava starch in Ghana. High variable and unitized fixed costs must be properly controlled at ASC before setting up any more factories like the one at Ayensu. Supply of fresh cassava for processing There has been a continuous increase in both the area planted to cassava and the quantities produced in the two regions of Ashanti and Brong Ahafo of both local varieties that are used for direct home food consumption (Abtumtum, Abakokoo, Adabo, Akosombo, Bensere and Wenchibankye) and improved varieties (Abasafitaa, Afisiafi and Tekbankye) for processing into gari, agbelima, flour and some starch. The improved varieties yield three times higher than the local ones and all these improved varieties produced in the two regions are suitable for processing into starch and flour as they have the recommended dry matter content range. There is a surplus production of cassava for processing which has resulted into low and fluctuating prices for fresh cassava mainly during the rainy season in the two regions. There are no large scale cassava processing units in Brong Ahafo and Ashanti Regions, and the existing flour processing units are at micro scale (producing less than 100 kg per day), mainly utilizing raw materials from a radius of less 5km. The scale of processing of cassava- based products in the region is thus still too small to match the current level of cassava production. Cassava production costs have been steadily increasing over the last four years, yet results indicate that cassava productivity (yield/unit area) is decreasing. Harvesting constituted the highest production costs. Information from all farmer groups indicated that harvesting is much more expensive in the dry season because the land is too hard for cassava to be harvested by hand hoe. Transport costs are also high due to poor accessibility to farmers’ fields. Farmers do not have fast and appropriate transport means to haul the bulky and perishable fresh cassava from the fields. Head porterage which is the major form of transport from farmer fields to the nearest major feeder roads is too inefficient and inappropriate for this bulky and perishable commodity to be effectively and timely delivered to processing units. There is therefore need to explore the possibility of encouraging farmers and processors to embark on contract farming. This will ensure a reliable supply of raw materials to processors while at the same time assuring farmers of a reliable market and stable prices for their fresh cassava. However, lessons learnt from Ayensu factory and contract farming in tomatoes indicated that at the operational level there is still a lot to be done to make contract farming work effectively. Particularly, issues of transparency and a clear understanding of terms of the contract by the farmers need to be clearly spelt out. Strengthening the capacity of producer organizations to assist farmers to market their produce collectively deserves due attention. Most farmers sell their produce individually which has made them very prone to prices dictated by middlemen. Producer organizations will increase farmers’ bargaining power and reduce marketing costs.

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Processing of cassava into grit to be sold as an intermediate product for processing flour has already begun in the regions. Cassava being a bulky and perishable commodity, processing units should either be located near the farms or the cassava has to be processed e.g. into chips or grit to reduce on its bulkiness and perishability before it is transported to processing units. This is a good marketing strategy for farmers to process their cassava and they can therefore either sell it as an intermediate product to distant places since it becomes less perishable or it can be stored for a longer period. 4. Recommendations Based on its analysis of the cassava marketing chain in Ghana, the team came up with some insights which require stakeholders to look into. Research work done in Ghana indicates that it is feasible to substitute wheat flour by HQCF for bakery, glue extender and other products. Using the information available on the substitution rates, potential demand for HQCF regionally and nationally in Ghana need to be established. Issues of scale of operation and organization of supply of raw material supply are areas that need focusing to transform cassava into a competitive industrial crop.

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1 INTRODUCTION

1.1 Institutional context The field study emerged in the context of an envisaged partnership between the International Centre for development-oriented Research in Agriculture (ICRA) and the Kwame Nkrumah University of Science and Technology (KNUST) to build capacities for rural development in Ghana and later the West African sub-region using the Agricultural Research for Development (ARD) approach developed by ICRA. The capacity building would start at Masters Degree level with MSc in rural development in the Department of Agricultural Economics and Farm Management of the Kwame Nkrumah University of Science and Technology (DAEFM/KNUST). It was anticipate that by hosting and under-studying the field study, DAEFM would get ample opportunity to acquire first-hand experience with interdisciplinary/inter-institutional teams, which then DAEFM could put to good use when setting-up and conducting their own field work as part of the MSc programme. As one of its approaches to capacity building, ICRA uses a real problem situation in a given country, to offer both professional context for learning and also to provide answers to complex rural development problems. The complex development problem is therefore defined by the partner organisation in form of terms of reference (TOR) for the ICRA team that will undertake the study. In view of the above, DAEFM identified a development problem situation and proposed a field study topic as, “Processing of agricultural produce: assessment of constraints and opportunities of small, medium and large scale processing of cassava in the Ashanti and Brong Ahafo Regions of Ghana”. In collaboration with the Sedentary Farming Systems Project sponsored by GTZ (SFSP-GTZ) and supervised by of the Ministry of Food and Agriculture (MOFA), DEAFM developed TOR (Annexe 1) for the study, and they (TOR) were endorsed by the Root and Tuber Improvement Programme (RTIP) of MOFA for reasons indicated below. While DAEFM/KNUST hosted the study, as an educational institution it would not be an immediate beneficiary of the field study outputs. A stakeholder analysis was therefore done by ICRA and DAEFM staff in November 2003 (preparatory phase) to identify immediate beneficiaries and hence key stakeholders in the study. On the basis indicated below, it was considered that RTIP, SFSP-GTZ (both under MOFA) and PSI would be immediate beneficiaries and would therefore, have strong interest in the field study results. The Ministry of Food and Agriculture is implementing the Root and Tuber Improvement Programme (RTIP), running from 1999 – 2004 but with a high chance of being renewed. The overall objective of the programme, which is national in scope, is to enhance food security and increase the incomes of resource-poor farmers on a sustainable basis by facilitating their access to improved and locally adapted technologies of root and tuber crops (with cassava being one of them). The programme has six components: Planting Material Multiplication and Distribution, Integrated Pest management, Adaptive Research, Community Support and Mobilisation, and Post-Production and Marketing. The success story of RTIP in increasing cassava production countrywide has resulted in post-production and marketing problems that RTIP intends to tackle in its possible second phase. Thus the marketing focus of the study was relevant for RTIP and insights expected for tackling marketing problems of cassava.

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The Sedentary Farming Systems Project was initiated by GTZ to develop and disseminate viable and sustainable land use and production systems through the Ministry of Food and Agriculture (hence the acronym SFSP-GTZ/MOFA) and collaborating NGOs. Target group and beneficiaries of this project are farmers, processors, traders and other people involved in agriculture and the project operates in the Brong Ahafo Region. While GTZ is currently not focussing on cassava per se, it is highly interested in supporting its target group in areas related to the marketing of their enterprises’ products. For producers of raw material the GTZ project has interest to facilitate the process of contract farming while for processors it facilitates their beneficial linkage to raw material suppliers and to potential buyers of their products. If therefore, production, processing and marketing of cassava is identified as a priority enterprise in the region, GTZ would most likely support the required activities that would lead to making it a viable enterprise. In view of Ghana’s governmental objective to become a leading agribusiness and industrial country in sub-Saharan Africa by the year 2010, the Presidential Special Initiative (PSI) for cassava is supporting the installation of large scale processing units to produce starch for industrial use. Nine such processing plants have been proposed and the first one has been put in place in Bawdjwasi, Central Region, while the second one is to be established in Obuasi, Ashanti Region. Results of this study were envisaged to give insight for the way forward of such processing plants. Figure 1.1: Location of the study area

1.2 Objectives of the study As mentioned above, the study topic was developed by a partnership composed of (DAEFM/KNUST) and MOFA through SFSP-GTZ and RTIP, and ICRA as the institution providing the field study team. While all the partners share a common goal of enhancing Ghana’s development, each partner has particular objectives whose fulfilment will contribute to achievement of the common objective (Table 1.1).

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Table 1.1: Objectives of the field study Objectives regarding professional practice (KNUST and ICRA) Goal To enhance human and institutional capacities in ARD and rural innovation

processes Purpose To promote collective action learning Output To generate knowledge and develop new professional attitudes and skills using

ICRA – ARD approach Activities Participating in ARD Training Programme

Monitoring the field study process and activities Objectives defined in the TOR (MOFA/RTIP/SFSP and ICRA) Problem Inefficient marketing chain of cassava Goal Transform Ghana’s economy into a leading agri-business country Purpose Transform cassava into a competitive agro- industrial crop Output Promoting cassava based industries Activities - Assess potential market for producing gari and flour from cassava for

industrial use and convenience food - Assess scale of operation of processing units for this potential market - Assess organisation of supply of raw materials

ICRA Team’s expected output The ICRA team’s objective is to contribute to MOFA’s output of promoting cassava-based agro-industry. The team’s expected output was therefore an assessment of the current and potential market for cassava products from small-medium scale processors in Brong Ahafo and Ashanti Regions of Ghana and, development of recommendations for improving small to medium scale cassava processing to clients. 1.3 Focus of the study Transformation of cassava into a competitive agro-industrial crop and transforming small-medium scale cassava processing units into viable enterprises are the strategies by which MOFA and its collaborators can contribute to the government’s development objective of transforming Ghana into a leading agro-industrial country by 2010 and its (MOFA) overall objective of increasing food security and incomes of the resource poor on a sustainable basis. A detailed assessment of constraints and opportunities for production, marketing and utilization of locally produced cassava flours and starches has been made (NRI/FRI project R6504 final technical report: Jan 1996 – March 1999), and indicates that industrial production of cassava starch and high quality flour is attractive but seems to be limited by high level capital investment, and timely supply of specified quantities of consistently high quality fresh cassava. The second strategy has so far not received much attention. It is realized that there is potential market for locally produced cassava flour as it can substitute up to 20 – 40% of wheat in biscuits and glue extenders (NRI report R6504). Its quality and quantity however needs to be greatly improved and utilization options expanded. The potential for producing quality and sufficient cassava flour, starch and food products by small-medium scale processors, and the possibility for realising the potential is not well established. It is hypothesised that:

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1. Technologies for processing cassava into flour, gari and starch are available in domestic

markets. 2. There is potential domestic and international (Nigeria) market for locally (Brong Ahafo

and Ashanti Regions) processed food (gari) from cassava. 3. Food habits and preferences keep on changing with urbanisation and job status, and this

may increase demand for “convenient food” like gari and fufu flour. 4. While fermented gari’s demand may increase in the domestic market, non/less fermented

gari’s demand may increase in the international market (i.e. Nigeria). 5. Medium scale processing units (200 bags/day) of gari are profitable enterprises. 6. There is a potential domestic market for locally (Brong Ahafo and Ashanti Regions)

processed flour/starch from cassava. 7. Medium scale processing units (20-50 bags/day) of flour for food (baked products) and

non food (wood products) industrial use are profitable enterprises. 8. Delivery of fresh cassava to the processing units is in-efficient. 9. Fluctuating prices throughout the year make delivery of fresh cassava to processors

unstable and affect their operations. 10. Organised producers can get better prices. Considering the above-mentioned hypotheses, this research study focused on establishing the potential for producing marketable flour for industrial and food use, starch for industrial use and Gari for food from cassava by small and medium scale processors (Figure 1.1), and the possibility for realizing this in Brong Ahafo and Ashanti Regions of Ghana. Emphasis was put on understanding of constraints limiting production and supply of both cassava raw material and processed products, and opportunities available for uplifting small and medium scale cassava processing to a level that would make it a viable enterprise. Figure 1.2: Research focus

Flour for bakery products

External factors: Policies Financial incentives Consumer preferences

Surplus

No market for processed products?

Processed products

Flour for glue extenders

Cassava production

Processing of cassava

Demand Supply

Potential market for

substituting imported wheat

Gari

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2 METHODOLOGY

2.1 Research Process

2.1.1 ARD procedure

The research process followed the Agricultural Research for Development (ARD) procedure developed by ICRA. This procedure is a process for planning research and development activities that respond to the needs of clients and beneficiaries. The ARD procedure contributes to wider development objectives such as poverty alleviation, food security, competitiveness of farming enterprises and sustainable resource use. The procedure uses participatory and systems approaches to integrate the varying perspectives of different stakeholders. It also facilitates team work across different disciplines and institutions. 2.1.2 The phases of the ARD Procedure

The ARD procedure is comprised of four phases which involve organizing the team, defining the system of interest, identifying strategies and formulating research and development plans. The ARD procedure is an iterative and therefore flexible process. Figure 2.1: Research process The 4 phases of the ARD procedure

Phase I of the ARD-Procedure The study commenced with an initial definition of the problem by the clients and formation of the study team. The clients provided the general framework of the problem surrounding processing of cassava. The study focussed on assessment of opportunities of small, medium and large scale processing of cassava in the Ashanti and Brong Ahafo Regions of Ghana. The study team was composed of three economists from India, Uganda and Vietnam, one crop

Problem requiring collective action

iteration

Inter-institutional innovation process

iteration

Organizing the Team

Focusing the problem

Formulating collective action plans

Identifying strategies

I

II

III Report

IV

5

entomologist from Uganda, one food nutritionist from Ghana and one animal scientist from Zimbabwe. The team first studied the terms of reference (TOR) drawn by KNUST/DAEFM and ICRA. The team then collected and analysed secondary information relating to production, processing, marketing and utilization of cassava and products from cassava in Ghana. Clarification and consolidation of information was done with key informants. On the basis of this the team achieved its first common understanding of the problem (Figure 2.2), and was ready to move on to Phase 2. Figure 2.2: Organising the team Phase I - Organizing the team

Phase II of the ARD-Procedure Before the team left for Ghana it explored the development context of the problem and determined the scope of the study given the limits of professional, financial and spatial resources of a three month field study. The team used the different disciplinary competences of its members to identify stakeholders and factors affecting/affected by the problem. These analyses helped the team to come up with a common understanding of the study. The team presented this common understanding to peers and reviewers in the Netherlands and also got feedback on how to improve its field study plan. The team incorporated this feedback and used the revised context exploration to solicit common understanding with the clients upon arrival in Ghana. On arrival the team did a reconnaissance survey to get a general overview of the study area and to identify potential stakeholders. The team consulted with DAEFM to form a monitoring group (MG) of staff from clients and other key players in production, processing and marketing of cassava and products from cassava to help with site selection and identification of key stakeholders. One officer each from KNUST/DAEFM, SFSP, RTIP and CRI (Crops Research Institute) composed the MG. Together with the MG, the team revised its objectives and research plan. On the basis of further information from the MG on current knowledge on the topic of the study the team refocused its research questions and placed more emphasis on the demand and supply of flour and gari for home food consumption and flour and to a lesser extent starch for industrial use (mainly plywood, bakeries).

Defining the problem from the viewpoint of the various

disciplines in the team

Defining a common understanding of objectives,

clients, beneficiaries

Establishing team process, roles and rules

Problem requiring collective action

Phase II

6

Finally in an introductory workshop with all initially identified stakeholders (Annex 2) the team presented its focus of the study (“system of interest”) (Figure 2.3). Feedback from stakeholders was visualised on flip charts and verified by the end of the workshop. Stakeholders were asked to visualize their contributions on cards for the team to capture all the contributions to the workshop. The visualization assisted the team to document clearly the discussion, promote understanding of information and stimulate discussion among participants. The opportunity was also used to determine further potential stakeholders and their possible interests in the study. The team incorporated the feedback from this initial workshop and on the basis of its revised research plan (annex 3) and work plan (annex 4) commenced data collection and analysis. Figure 2.3: Defining the system of interest

Phase II - Defining the system of interest (Focusing the study)

Phase III of the ARD-Procedure The data collection was done in sub-groups to allow the team to make optimum use of available time and resources. Data was collected from farmers, transporters of cassava, processors of gari, processors of flour and starch; traders of gari, users of flour and from support institutions such as government ministries, boards in charge of production, trade and product quality. The team also collected information from tomato farmers to learn about contract farming The team identified driving forces and developed scenarios using current trends in Ghana, regional and international markets. Scenarios on import substitution local incentives such as the Presidential special initiative (PSI) and consumer preferences were developed. Strategies to cope with two contrasting scenarios were identified and recommendations made for addressing the problem of cassava into a viable industrial crop in Ghana (Figure 2.4).

Defining the

system of interest

Phase I

Identifying stakeholders

Identifying “macro trends”

Putting the problem in a development

context

Integrating stakeholders’ perspectives of the

problematique

iteration Phase III

iteration

7

Figure 2.4: Identifying strategies

Phase III - Identifying strategies

Phase II

Analyzing the system from

different disciplinary

Targeting research to

specific groups

Scenario development and strategy

Phase IV of the ARD-Procedure The team was not asked to formulate plans. 2.2 Methods and tools for data collection and analysis

The study was conducted using mainly rapid rural appraisal methods (Table 2.1). Data was collected through focal groups and key informants. In the case of focal groups, participation of all members was ensured through sitting arrangements and use of vernacular language where participants were not able to communicate in English. Where interpreters were used, the team members observed body language and probed to get the response of the participants clearly. Before interviewing processors, a run through the production process (tours) was done. Where the information required was available from particular people the questions were directed to the appropriate people and consensus reached by verifying with other group members. On issues of quantities, estimated weights were given by participants. At this point discussion among participants occurred before an agreed figure was adopted and verified with extension agents. The participants were given room to give views on issues. Table 2.1: Concepts and tools used during field work Concepts Tools Context analysis • Secondary data analysis

• Reconnaissance survey • Stakeholder analysis • “Rich picture”

Market chain analysis Demand and supply

• Semi-structured interviews with key informants and focus groups

• Market flow charts Profitability analysis • Gross margins

• Crop budget

Phase IV Report

8

2.2.1 Analysis of demand of processed products from cassava Demand for flour/starch On the demand side industries using or with potential to use cassava flour and starch for industrial use were short listed in the two regions under study. The short listed industries were the timber industry particularly the plywood industry and the bakeries. There were two plywood companies in Brong Ahafo Region and one was selected for the study. In the Ashanti Region one out of five companies in the region was selected for the study. Semi structured interviews (SSI) were conducted with production managers of the companies selected. The SSI was set such that the team got information on current quantities on demand, potential demand, production capacity and the quality of raw material demanded, and visualised it in market flow diagrams. Gross margins for the processing units of gari, flour and starch were calculated to determine the levels of profitability of the various scales of processing units. Using the profit margins assessments, the efficiency of the marketing chain was assessed. In addition issues pertaining to source of inputs were also included. The team discussed with managers the opportunities and the constraints to using cassava flour in the timber industry. For the bakeries, the Bakers Association in Kumasi was selected as a focal group and four people were interviewed. With the bakers the team discussed issues pertaining to the production costs and quantities of flour used in the bakery industry and the source and quality of flour they demand. In addition, bakers in the Eastern Region were also visited to assess the current and potential demand for cassava flour in the baking industry. Demand for gari Information on demand for gari was gathered through focus group discussions with gari traders at the Techimani and Sunyani markets. The traders were approached on market days, thus the team also managed to observe the activities on the market and competing products or crops for the gari market. In addition, information on the source and transporting mechanisms of gari to the market was explored. Supply of flour In the two regions under study the team used key informants at MoFA, GTZ and BAC to identify and list cassava flour processors. It was difficult to identify these and only a few were found. It turned out that some gari processors were also in flour production and in such cases the team got information on production costs of cassava flour and gari from these processors. In Ashanti Region one processor was visited, while in the BA Region four processors of flour were visited. While information provided by key informants indicated that the units were processing flour, it was realised by the team that three of the five units visited were not making flour at the time of the visits. Processors of an intermediary product such as cassava grit were also visited. Using again SSI, the team gathered information on scale of production, production costs, delivery of raw cassava for processing, quality of cassava flour demanded and markets for cassava flour.

9

Supply of Gari A total of five gari producers were visited in the study area. At three of the processing units key informants like the production/marketing managers were interviewed using the SSI while in the other three the team interacted with a group of committee members in group discussions. Processing units were selected based on their size of operation which the team determined using level of output. Most of the processing units were working as either cooperatives carrying out the business of making gari or hiring out their equipment and services for gari processing to individuals within their communities. Issues discussed in the supply of raw materials were costs of transportation and general costs of processing cassava into gari and the price the processors get for the gari. This information was used to determine the profitability of the gari processing units, using gross margins analysis. 2.2.2 Analysis of the supply of cassava as raw material for gari, flour and starch Production and marketing costs of cassava Focal group discussions were conducted with farmers to cover aspects of production and supply of cassava as raw material for processing into gari, flour and starch. Three focal groups were selected, one in Mapong District of Ashanti Region and two in Techimani District in Brong Ahafo Region. The districts were selected because they have both cassava production and processing sites. These farmers all belonged to cooperative groups formed for easy access to resources and training from extension agents. .The focal groups were composed of male and female farmers and the discussions were conducted in a manner which facilitated group interaction. The focal groups had an average number of 20 people. The information was collated and the profitability of cassava production analysed, using gross margins again. Crop budgets Crop budgets for cassava and maize were collected from key institutions such as RTIP and CRI. Gross margins were calculated to determine the profitability of cassava production. Cassava was compared with maize since it is the main competing crop in the regions under study. Contract farming To analyse the possibilities of contract farming the team identified the tomato processing factory in Wenchi as an example to learn from. The team visited two farmer groups who have contracts with the Wenchi tomato factory in the Tano District in the Brong Ahafo Region. In each case a group of about ten members of the associations were visited. Again the focus group method was used to discuss constraints and opportunities associated with contract farming. The team also visited large scale starch and flour factories in the Eastern and Greater Accra Regions respectively. At these enterprises the team explored with key informants (production or marketing managers) implications of scale of production on profitability and viability of enterprises. The issues focused on were of organization of raw material supply, cost of production, current output and prices of products. During these interactions perceived linkages were visualized together with the stakeholders. Maps were used to indicate locations of suppliers of raw materials.

10

3. RESULTS In order to analyse the demand of processed products from cassava and the supply of cassava as raw material for gari, flour and starch, the team applied the analytical framework presented below (Figure 3.1). This analytical framework shows the marketing chain of cassava from the demand and supply side. The structure of this chapter follows this analytical framework, focusing on quality, quantity and price issues, starting the analysis from the demand side first, analysing the current and potential demand, followed then by the supply side. Both, on the demand of processed products from cassava and the supply of cassava as raw material, constraints and opportunities are each time determined and conclusions on the way forward made. At the level of processing of cassava, the scale of operation and the costs of operation are analysed and finally the organisation of supply is investigated. Figure 3.1: Analytical framework

Consumer preference

3.1 Gari: Traditionally processed cassava in Ghana Cassava is a major source of carbohydrates and an inexpensive source of food energy for the majority of Ghanaians. People of all social classes eat it mainly as fufu (boiled and pounded cassava) and gari (grated, fermented, pressed, partially gelatinized by roasting cassava) among others. Gari production in Ghana is mainly at the artisan level with various scales with an output per month of about half a ton for micro, up to 2 tons for small, and above 2 tons for medium (adapted classification from TCC/NBSSI) and brisk activity can be found in seven out of the ten regions where there is high production of cassava. 3.1.1 Current Demand for Gari in Ghana Growing demand for gari in the rapidly expanding towns of the region has been an important factor in encouraging farmers to produce more cassava and also, the current initiative on cassava under the auspices of the Presidential Special Initiative. Cassava is now the largest agricultural commodity produced in Ghana and, in 1998, represented 22 percent of agricultural GDP (fao.org/docrep). From the places visited in Brong Ahafo and Ashanti, monthly

Organisation of supply

Surplus Costs of operation Scale of operation

Quality Quantity

Price

Supply Demand

Flour for bakery products

Cassava production

Processed products Gari Processing of

cassava

Flour for glue extenders

11

production of Gari is at 2 tons per day for Aworowa and Akrofrom in the Techiman District of the Brong Ahafo Region, 100kg / day for Mampong. The production was at 8 tons per month from a processing unit in the Greater Accra Region. Target population for gari Event though statistics may not be available on the actual population consuming gari and the consumption per capita, the largest population who consume gari are the students in boarding schools as it serves as a supplement to the meal provided by the schools (traders and processors interviewed in study area). In homes, it is also gaining widespread use as it is very convenient. The consumption of gari is high during the "hunger season" (January to June) just before the harvest (July to December) of crops such as maize, yam and plantain, the major staples (Ghana Statistical Services 2000). In the dry season harvesting of cassava is difficult which also reduces the consumption in the fresh form and the processed form such as gari comes in handy. At the Techiman market, the quantity of gari sold out per week is between 12.5 – 25 tons. At Mampong, gari is sold at 3,500 cedis /kg but in the dry season, it shoots up to 5,000 cedis/kg. The secondary schools in Mampong buy 400-500kg per month from the processors visited in Mampong but they did not indicate the total number of schools. There is also a growing demand for gari on the export market. Statistics available indicate that Gari exported in 1997 alone was 4,197.540 MT. It fell between 1998–2001, rising steadily from 2,191.710MT to 3,067.680 MT for 2002 and 2003 respectively (Table 3.1) Table 3.1: Gari exports from Ghana (1997-2003) Year Quantity (MT) Value in US $ 1997 4,197.540 418,169.43 1998 1,265.230 344,635.90 1999 1,280.820 504,224.16 2000 1,774.860 698,429.44 2001 1,422.540 730,017.08 2002 2,191.710 972,319.61 2003 3,067.680 1,502,993.52

Source: Ghana Export Promotion Council Quality of Gari The Ghana Standards Board defines gari as a “dry pre-gelled particulate product obtained by artisanal or industrial processing of cassava roots” (Ghana Standards Board). The processing consists of peeling, washing, grating, fermentation, de-watering, fragmentation, sifting, and roasting to dryness by stirring (Ghana Standards Board Specification for Gari). The standards, further specifies the quality of gari as free from any foreign matter. It also grades gari as extra fine, fine, medium size, coarse and unclassified. In the places visited in the two study areas (Brong Ahafo and Ashanti) however, there was very little quality measures taken to ensure high quality products. These can be itemized as follows:

12

Picture 3.1: Peeled cassava ready for grating left on the floor

Picture 3.2: Peeled cassava ready for grating

Picture 3.3: Grated cassava left in the open for fermentation

Picture 3.4: Grated cassava exposed to animals (footprints of a chicken on grated cassava)

Picture 3.5: Effluent from fermenting cassava trailing on the ground

Picture 3.6: Evidence of Training on Quality Issues by the Ghana Standards Board

Source: Field Study May 2004

13

Gari is also not graded according to particle size. These make the overall quality of the gari rather poor with limited market opportunities. Gari traders interviewed at Techiman complained about the inconsistency in the quality of gari. There were however, a few customers from Takoradi and Accra buying from the Techiman market. It was also found that there was influx of gari from the Volta Region finding a market at Sunyani in the Brong Ahafo Region and due to superior quality and consumers pay a difference of 76% over the top quality gari in the region for that quality offered for gari from Volta Region (Table 3.2). Table 3.2: The retail prices of various grades of gari Retail prices for Gari of different Quality at Techiman market

Retail prices for Gari of different Quality at Sunyani market

A – 250,000.00 B - 218,000.00 C – 206,000.00 D – 187,000.00 E - 156,000.00 F - 125,000.00

A – 437,500.00* B - 281,250.00 C - 250,000.00 *Gari from Volta Region

Source: Techiman Market May 2004 There was some information provided by some of the processors at Aworowa and Asueyi in the Techiman Districts on exporting gari to the United States and Europe but questions are raised on the certification for that export quality required amidst the rather poor sanitation conditions, as seen in the pictures above (Pictures 3.1-3.5). There was also proof of knowledge acquired by some of these processors from the quality enforcement agencies but so far application of the knowledge was found to be low (Picture 3.6). At a medium scale processing unit visited in the Greater Accra Region however, the working environment was cleaner (fitted with mosquito mesh), handling was good and effluent ducted to a collecting point behind the building. When contacted on imminent effect of effluent discharge from gari processing units, the Environmental Protection Agency (EPA) perceived the long term effect as damaging to flora and fauna in the immediate environment. The agency also found it a threat to the environment, the smoke emitted by these units. However, they do not take any action on these small scale industries or processing units until they receive complaints from neighbours. With large scale production such as the Starch Factory at Bawjwasi in the Central Region, an Environmental Impact Assessment is done, the unit is monitored and legal procedures applied to those who may be found to violate or flout the rules. Submission of annual reports is also compulsory. After a year of satisfactory compliance a certificate is issued. The impact of the Ghana Standards Board and the Food and Drugs Board in enforcing compliance to good manufacturing practices was not felt as far as enforcement was concerned. Price of Gari The demand for Gari begins to rise from the month of January and takes a peak around February reflected in the price trend (Fig. 3.2). This is the dry season and major staples (maize, fresh cassava) are not in season and hence the demand for Gari is high. During the harvesting period when fresh staples are available, the price of Gari drops. Therefore, with a dry spell or low harvests, there is bound to be a very high demand for Gari both domestically and also from the Sahelian Region.

14

Figure 3.2: Price Trend for Gari (2002 - 2004) in Cedis / bag of 68 kg

600000

500000

400000

2004 300000 2003

200000

100000

0 Jan Feb

Source: MOFA Ashanti Constraints Some of the constraints of gari production are itemized as follows: • Low price of product compared to processing costs: in the places visited the recovery of gari

was 25%. Transportation costs was one of the highest and this makes the production costs of gari high. On the transportation side also is the problem with roads in bad conditions.

• Poor market information is also another problem for processors. They are not able to negotiate the price but rather have to take what is offered by the traders. This is worsened by the poor quality of gari produced in these areas and of course cannot even compete with gari of superior quality

• Time consuming activities: About 12 – 15 people peel three tons of cassava per day which takes time. The workforce here is mainly made up of women spending the whole day at the processing unit leaves them with very little time for domestic activities. If there are varieties of cassava with easy-to-remove peels, some time could be saved by these women for other activities.

• Non enforcement of good manufacturing practices: The presence of the agencies responsible for ensuring good quality of gari was very distant in the areas visited. Some effort has been put in to training these processors, but there was no application of the acquired knowledge, giving no value addition to the entire processing operation. This is seen as a major cause for the low prices offered for gari from this area.

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2002

15

Figure 3.3: Problems in the cassava market chain for gari

3.1.2 Potential demand for Gari Quantity With the current initiative on cassava and the proliferation of processing units and also with increasing demand from the export market (GEPC) the output of gari would tend to be higher in the next few years. The total area put under cultivation for cassava in the Brong Ahafo Region was at 152,700 hectares for 2002 with a production of 2,209,820 metric tons of cassava, and 171,020 for 2003 with a production of 2489,990 metric tons. In Ashanti Region a total of 129,000 hectares of land was put under cassava cultivation with a production of 1,305,000 metric tons for the year 2002. Information provided by farmers interviewed, show that only 10% of their production goes for home consumption. It can be deduced that at least 60 % of the cassava produced would be used for the production of gari in the study area, as there were no large scale cassava processing units. Other indices pointing towards increasing demand are: • Consumer demand for improved quality of gari • Increased population of students (population growth rate at 3.5%) • Need for convenience foods due to urbanisation • Export demands (GEPC) • Employment opportunities for women in the rural areas Quality There has been a conscious effort by the Ghana Standards Board to train processors to improve on the quality of gari that they produce. If this training is intensified and about 30% of processors in the region are reached, the problem of quality of gari in the region will be curbed. The other side is also to enforce to some extent the need to observe good manufacturing practices at these processing units through periodic inspection. By this, consumer confidence would be raised and patronage of gari could be raised. In the regions, the subsidiaries of the

Quality of fresh cassava: age, transport

Domestic demand?

Scale of operation? Costs of operation?

Lower price for gari compared to other regions

Poor processing conditions: hygiene, effluent

Quality Quantity

Price

Quality Quantity

Price

Processing of cassava for gari

Cassava production

Production costs higher than farm gate price Costs of operation

Scale of operation

16

Food and Drugs Board could be activated in order to support these processing units, so they can produce good quality products which would not endanger the health of the consumers. In the next phase of the RTIP it is hoped that this issue could be tackled through training of processors to ensure high quality products in collaboration with these quality control agencies (Ghana Standards Board, Food and Drugs Board, Food Research Institute and the Environmental Protection Agency). Opportunities Opportunities in the gari processing industries could be boosted, if there is commitment to support production to provide the raw material base. This can be enhanced with the inception of the second phase of the RTIP that will focus on post production, which was hitherto not given a lot of attention in the first phase of the programme. With the technology for gari processing already at an advanced state and the availability of equipment, the only part left is in improving the quality aspects of processing. An intensive awareness programme from the agencies responsible (GSB, FDB) would see the industry through. Dry season processing due to high cost of raw material: This is when cassava prices are high and making the raw material base expensive, but the advantage here is to process when the cassava is cheap and stored when the demand is high particularly when maize and fresh cassava are expensive. In the dry season also, there is some opportunity to exploit marketing avenues in the Sahelian Region and the ECOWAS market. There are also fortification programmes with soybean, which could be adapted to augment the nutritional content of gari. The good road network between the processing and marketing units can foster the movement of buyers to the processing units as well as processors to the selling points.

Picture 3.7: Packaged Gari in a Supermarket The marketing aspect still remains a difficult area but the District Assemblies, NGOs as well as the quality assurance agencies could also be called to play. The Techiman Municipality has one of he biggest markets in the country and focusing on improving the gari processing sector in the district could maximize revenue. Value addition through attractive packaging of gari was found to be promising with a good number of various brands found in some of the top supermarkets.

Source: Ghana field study 2004

17

3.1.3 Conclusions For the demand and supply of gari in Ghana, a lot can be achieved if the required quality control measures are put in place, and the various stakeholders interlinked to see how far they can project the industry. There are issues bordering on quality, value addition through fortification and packaging, access to the wider market, which need to be addressed. The Root and Tuber Improvement Programme, is entering into another phase with a focus on post production and marketing and this is the time it can establish good linkages with important stakeholders to improve upon the demand for gari the principal product from cassava in this study area as plans for the establishment of large or medium scale cassava processing units are considered for the area. Of prime importance is a strong linkage with a marketing organization to manage the marketing aspect of the programme. 3.2 Demand for flour for bakery products 3.2.1 Current demand High Quality Cassava Flour (HQCF) is gaining widespread use in the country since the various awareness programmes carried out by the Root and Tuber Improvement Programme (RTIP, 2003). The HQCF can be substituted for wheat flour up to 20% for bread, and even up to 60% for pastries such as biscuits (Graffham et al undated). In a bid to establish the demand for cassava flour for the bakery industry two places were visited in Kumasi and Nsawam. Kumasi, as the capital for Ashanti Region is within the study area, and Nsawam, a district capital in the Eastern Region was selected, as bread baking is here the principal activity. At these locations some key informants of the Ghana Bakers Association were interviewed (Table 3.3). Table 3.3: Demand for wheat/cassava flour

Description Kumasi Bakers Association (data from 4 members)

Nsawam Bakers Association (data from one member)

Membership 800 350 Active members 350 250 Quantity wheat flour used by each of the active members (range)

10- 30 bags 6- 25 bags

No of working days per week 6 6 Average number of bags used/day 15 (used by the majority) 15.5 Quantity of flour used per person /year (Ave no. of bags x 50kg x 6 x 52)

234,000 241,800

Demand per active members/tons/year (quantity of flour per person x active members)

81,900 tons 60,450 tons

Proportion of bread to others bakery products (pastries etc)

90:10 75:25

Demand/year for cassava flour for bread with up to 30% substitution with cassava flour

22,113 tons 13,601 tons

Demand/year for cassava flour for pastries with up to 70% substitution with cassava flour

5,733 tons 10,579 tons

Total potential demand/year for cassava flour 27846 tons 24180 tons Total potential demand/year for cassava flour in Kumasi and Nsawam Bakers Association

52026 tons

Source: Ghana field study 2004

18

Quantity In Kumasi the information provided was that there are 800 bakers out of which 350 are very active working 6 days of the week. On an average the bakeries in Kumasi have a current demand of 81,900tons of wheat flour with the majority of units using 15 bags of 50kg daily. This translates to 234 tons of wheat flour per year (based on an operation of 6 days per week). Similarly, at Nsawam, the membership is 350 out of which 250 are active and each baker uses on the average 15.5 bags of 50 kg of wheat flour per day. This also translates to a demand of 60,450 tons of wheat flour a year (based on an operation of 6 days per week). For these two areas the demand for wheat flour is at 142,350 tons per annum. Cassava flour was not used by these bakeries at the moment because it is not available, hence current demand could not be established. The team also visited Motherwell Farms in the Eastern Region which produce High Quality Cassava Flour. The unit has been producing 20 – 25 tons of cassava flour per month, out of which 20 % goes to the food industry and the rest to the paper board and plywood industry which has a very high demand (40 – 50 tons per month). Quality From the information obtained from bakeries in Kumasi and Nsawam, the quality of cassava flour they require is white without odours. For the cassava flour obtained so far, the quality is very good and even has a longer shelf life than wheat flour. The quality of bread from composite flour according to the bakers interviewed and also from secondary sources (Dziedzoave et. al, Undated) indicate that bread from composite flour was widely accepted by the general public and were being adopted by some professional bakers and caterers. The major constraint here is the fact that cassava flour lacks gluten and hence bread moulded from composite flour is not able to keep its volume if kept overnight before baking. If baking is done the same day, this can be overcome, but with the quantities handled it is not possible to mould and bake bread the same day (bakers’ information). Visited bakeries indicated that they were willing to substitute cassava flour for wheat flour if the cassava flour was available. However, the bakers requested for an additive which could simulate the properties of gluten in wheat flour to enable them make bread form composite flour. Price The prices in Table 3.4 show that cassava flour is 31% to 42% cheaper than wheat flour but due to non- availability of HQCF they were not able to exploit this opportunity. If available, and the price remained low, bakers would be willing to substitute cassava flour for wheat flour.

19

Table 3.4: Comparative prices of wheat flour and cassava flour in different bakery associations

Regions Cassava flour

(cedis/kg) Wheat flour (cedis/kg)

% price difference (higher than cassava flour)

Bakery Association, Kumasi, Ashanti Region

3000 4800 38%

Abigail buertey, Brekum, Brong-Ahafo Region

3288 4800 31%

Bakery Association, Nsawam, Eastern Region

3200 5500 42%

Source: Ghana field study, May- June 2004 Constraints The Bakery associations of Nsawam and Kumasi however, find the absence of gluten in the cassava flour as the major problem. Another problem is the unavailability of HQCF for use in the bakery industry even for pastry products which could be used alone or even up to 70 % (Graffham et. al., 2000). Figure 3.4: Problems in the cassava market chain for flour

HQCF quality: drying, capital, packaging

Quality of fresh cassava: age, transport

On the basis of field survey and secondary data the team observed that consumer preference for cassava in the domestic market are low. Cassava has an image problem i.e. it is regarded as an inferior good. Products made from cassava therefore, are also highly regarded as inferior commodities. If unaware of the inclusion of cassava flour in baked products, consumers have

Demand of HQCF not met

Current scale at micro level not able to meet potential demand

Lower price of cassava flour not exploited

Micro scale operating not profitable

Production costs higher than farm gate price

Organisation of supply

Quality Quantity

Price

Quality Quantity

Price

Processing of cassava

Cassava production Supply

Costs of operation Scale of operation

Poor road infrastructure from fields to collection points

Head porterage

20

high acceptability and this is still a big challenge. From the Kumasi bakeries visited in Ashanti Region it was indicated that once consumer learnt that products were made from cassava flour they would stop buying it. High quality standard are required for production of cassava flour for bakery use in order to ensure consumer acceptability for the finished products (Graffham et al, 2000).But in the field the team observed that processors were lacking with product development, improvement and innovation in terms of fortification, branding, grading and packaging. 3.2.2 Potential demand Quantity The potential demand for cassava flour has been estimated on the basis of Kumasi bakeries’ and Nsawam bakeries’ production of breads and pastries. The production proportion of bread to other bakery products like pastries in the Kumasi bakeries is 90: 10, where as this proportion is 75: 25 in Nsawam bakeries. As indicates earlier, up to 30 per cent substitution with cassava flour is possible for bread and from the information obtained from the bakers; this can be estimated as 22.113 tons per year for the Kumasi area and for pastries an amount of 5.733 tons per year. At Nsawam, the potential demand is for bread 13.601 tons per year and for pastries it is 10.579 tons per year. 3.2.3 Conclusions The team analysis revealed that opportunities for product development of cassava based snacks exist in the country which can be explored. According to Population Statistics (2004), out of 20.5 million in Ghana, 37 % are living now in the urban areas. With this urbanization, there is a growing local urban demand for convenience foods which include bread and some pastry products. If the supply base of cassava flour is well developed, a good patronage would be a possibility. 3.3 Demand for flour for glues and adhesives 3.3.1 Current demand Quantity The demand for cassava flour for domestic and international markets has been calculated on the basis of exports of cassava flour and plywood production in the country. Table 3.5: Export of cassava flour Year Quantity (MT) Value (US $) 1997 118.414 26,430.24 1998 345.134 56,523.60 1999 176.730 74,474.34 2000 263.430 118,164.01 2001 160.545 81,944.68 2002 244.746 89,659.06 2003 279.307 156,349.06

Source: Ghana Export Promotion Council, Accra, 2004

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There is a good export potential of cassava flour from Ghana to other countries. The table 3.5 shows that the export of cassava flour is on the increasing trend since 2001. During 2003, by exporting 279.307 MT of cassava flour the country has earned US$156,349.06 which is 75% more than the value earned during 2002. It means the demand of cassava flour in the international market is increasing. Constraints The plywood factory Logs and Lumber Ltd., Kumasi, where cassava flour was tested as a potential replacement for wheat flour as glue extenders, expressed dissatisfaction with the quality of plywood products. Bonding of the products was not strong enough and could peel off after a few months. There is no strong linkage between research and industry. The production manager of Oti -Yeboah Complex Ltd., Sunyani in Brong Ahafo Region revealed that the Forestry Research Institute of Ghana (FORIG) conducted research on the samples of good flour required for plywood use and tested them at Oti -Yeboah Complex Ltd., Sunyani. Despite the good results reported by the factory, there has not been any follow up from FORIG. He also explained that funding of research needs to be directly linked with firms that are interested in the results. This could facilitate ownership and replication of results. The team analysis revealed that cassava flour is not yet a competitive commercial commodity as compared to other competing products such as wheat flour in terms of quality and availability. Thus, there is need to produce that quality of cassava flour required on commercial basis to replace the use of wheat flour in plywood factory. 3.3.2 Potential demand Quantity Plywood production has been continuously increasing in the country. On the basis of Oti -Yeboah Complex Ltd., Sunyani in Brong Ahafo Region, 25 kg of wheat flour has been used to produce one cubic meter of plywood. This wheat flour can be replaces with cassava flour on 100 % basis. Table 3.6: Production of plywood and wheat flour used for plywood production in

Ghana Year Production of

Plywood (m3)* Wheat flour used (Tons)**

1998 48000 1200 1999 47000 1175 2000 68000 1700 2001 114000 2850

* Source: Statistical Services, Ghana, 2004, **estimated figures by the team

Table 3.6 shows that production of plywood in Ghana has been on the increasing trend. During 2001 only 2850 tons of wheat flour had been used for plywood manufacturing. This could be the potential demand for cassava flour because it is technically possible to replace 100% wheat flour with cassava flour. Moreover, plywood manufacturers were willing to use cassava flour due to its lower prices.

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Table 3.7: Demand for wheat flour and cassava flour by plywood industries Region Total No. of

factories Factories visited (No) Wheat Flour used

(Tons/year) Ashanti 5 Logs and Lumber Ltd., Kumasi, (1) NA Brong Ahafo 2 Oti -Yeboah Complex Ltd., Sunyani,

(1) 591.5

Total 7 2 Source: Ghana field study, May- June 2004

The team visited two out of 7 plywood factories in Ashanti and Brong Ahafo Region (table 3.7). The demand for flour for glue by Oti -Yeboah Complex Ltd., Sunyani in Brong Ahafo Region is high because it produces 80 m3 plywood per day, by using 30-40 bags of 50 kg of wheat flour per day (11.375 tons per week). Thus the potential demand for cassava flour by Oti -Yeboah Complex Ltd. is estimated at 591.5 tons per annum. Quality The two plywood factories visited in Ashanti Region and Brong Ahafo Region expressed strong will to support cassava production for industrial use as long as the quality of cassava flour could replace wheat flour in plywood manufacture. Both, Oti –Yeboah Complex Ltd., Sunyani and Logs and Lumber Ltd., Kumasi, expressed their readiness to support funding of farmer groups to produce raw material for cassava flour or acquisition of land to set up their own plantations to produce cassava raw material for their own use (mill own flour). Opportunities Considering that 7 plywood factories are located in the Ashanti and Brong Ahafo Regions, and that in principle plywood factories are willing to substitute wheat flour with cassava flour, this gives a potential demand for cassava flour for industrial use in the regions. Research into developing cassava varieties with high starch content (which do not compete with food varieties) is in the offing. These will be channelled into production of cassava flour for industrial use. More research on improving bonding properties of cassava flour is underway at FORIG to enhance the quality of cassava flour required in the wood industries. Also trails conducted in some plywood and paperboard industries have demonstrated the potential of HQCF as an extender for urea formaldehyde glues used in the plywood industry or as an adhesive when blended with various chemicals (Dziedzoave et. al, 2002). HQCF has been used wholly or in combination with wheat flour. 3.3.3 Conclusions

The study team came up to the conclusion that the use of cassava flour for industrial use, particularly for bakeries is still low in the country. Cassava flour was not used by the bakeries in both the Ashanti and Brong Ahafo Region of Ghana, hence current demand for cassava flour for bakery industries could not be established. Price of cassava flour is lower than that of wheat flour, but due to the non- availability of cassava flour and absence of gluten in cassava flour, bakers were using wheat flour for bread making. From the field data the team realised that processors were lacking with product development, improvement and innovation in terms of fortification, branding, grading and packaging. But the potential demand for cassava flour is high due to urbanisation and changing habits and preferences of the consumers. The demand for cassava flour in domestic and international market is on the increasing trend. Due to the constant increase in the plywood production in the country, the potential demand of cassava flour is high. The team analysis revealed that plywood manufacturers were willing to

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substitute wheat flour with HQCF due to its lower prices, but due to non- availability of HQCF in the country, they were using wheat flour. 3.4 Processing of cassava flour and of gari 3.4.1 Scale of operation Classification of processing units It was difficult get a clear definition of the scale of operation from secondary data sources for cassava flour and gari processing enterprises in Ghana. According to The National Board for Small scale Industries (NBSSI)/Business Advisory Centre (BAC), micro enterprises refer to any enterprises that employ less than ten workers with total enterprise investment cost not exceeding US $ 10,000. Ownership and management of the micro enterprises are the same and these enterprises are too small to have any significant influence on the market. Small scale enterprises are those enterprises which employ between 10- 30 workers with investment cost ranging from US $ 10,000 to US $ 100,000. Enterprises whose investment cost exceeds US $ 100,000 are categorised as a large scale. The investment costs exclude the value of land and buildings. This classification however does not specify whether the employees must be permanent staff or casual workers and whether these classifications are universal to any industry. It does not also provide any definition for medium scale enterprises. The Technology Consultancy Centre (TCC) defines micro processing enterprises as enterprises with total investment cost of US $ 500 or less. Enterprises with investment costs ranging between US $ 500 -100,000 are defined as small scale and those with investment cost of US $ 10,000-100,000 are medium scale. Any enterprise with investment cost exceeding US $ 100,000 is classified as large scale. Besides capital investment, TCC also classifies processing units according to the level of output of the enterprise, the level of sophistication of the machinery used in processing and the number of workers employed by the firm. The TCC definition, although with more realistic capital investment classifications, does not precisely specify the levels of out put for the respective categories of enterprises. It does not also spell out the exact number and type of employees for the categories. The team reviewed the above criteria for classifying enterprises and selected the level of out put (kilograms produced per day) as the criterion for classifying enterprises for this study. After the reconnaissance visits of the study areas and assessing the level of out put produced by the processing units in the areas visited, the team developed following as operational definitions of micro, small and medium cassava flour and gari processing enterprises shown in table 4.8 below:

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Table 3.8: Classification of cassava flour and gari processing enterprises

Level of output ( Kilograms per day) Type of enterprise Gari High Quality Cassava flour

Micro enterprise Less than 1000 Less than 100 Small scale enterprise 1000-3000 100-500 Medium scale enterprise More than 3000 More than 500-1000

Scale of operation of cassava flour processing enterprises It was not easy to identify flour processing units in the two regions because most of the enterprises are engaged in gari processing .With the help of the District Agricultural extension staff, the team visited all the three cassava flour processing enterprises in Brong-Ahafo Region that were identified, two in Techiman District and one in Berekum District. The only cassava flour processing enterprise identified in Ashanti Region, Mampong District was also visited. All the four cassava flour processing units visited in the two regions were micro enterprises. The team did not succeed in collecting data from small and medium scale cassava processing enterprises in both regions because no such enterprises were identified. Results from interviews with key informants from the two regions indicated that no medium scale and large scale cassava flour processors are located in the two regions. In order to get insights into the operations of a medium scale cassava flour processing enterprise, the team visited Motherwell Farms Ltd, in Eastern Region. The number of cassava flour processing enterprises visited by team is indicated in table 3.9 below: Table 3.9: Scale of operation of processing units

Scale of operation Number of enterprises identified and visited in the region

Micro enterprises

Small scale enterprises

Medium scale enterprises

Total

Ashanti 1 0 0 1 Brong -Ahafo 3 0 0 3 Eastern 0 0 1 1 Total 4 0 1 5

3.4.2 Cassava flour production process The preparation of HQCF demands strict adherence to quality control measures. There are two basically different ways of making cassava flour (Uganda: Strategy for the Marketing and Production of Starch in the COMESA Region, 2001) as explained below: 1. Flour made by drying pulped cassava roots: Peeled cassava roots are grated and the

pulp is pressed to remove a large proportion of the water present. If the variety used is a bitter variety, the expressed water contains a large proportion of the toxic bitterness in the tubers. The dewatered pulp is then dried before it is milled.

2. Flour made by pulverising dried tubers: In this method, the tubers are dried before

being pulverised. The flour obtained is much finer and the cost of production is much lower than in the method described above. However, the quality is lower and much more variable. Cassava tubers are first cut into chips. If the variety used is bitter, the toxicity

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can be much reduced by removing the cortex – the layer about 1mm thick towards the outside of the tuber. In most cases, the cortex is not removed. The quality of the flour depends on the way the tubers have been dried. If the chips were dried rapidly on a clean surface, the flour will be of quite good quality, but if drying was slow, or was carried out on a dirty surface, the quality will be poor. The dried chips are finally pulverized in a hammer mill.

Cassava flour produced in this way can be used in many applications where cassava starch is sometimes used. These applications include the use of cassava in many bakery products, including so-called composite flour applications in bread, and as an extender in many adhesive applications (e.g. paper board manufacture in unsophisticated factories and inexpensive ply-wood manufacture). Cassava flour is much cheaper to produce than cassava starch – the yields per ton of cassava are substantially higher and processing costs are very much lower. 3.4.3 Major cassava flour processing activities In Ghana, particularly in Brong Ahafo and Ashanti Regions, cassava flour processing is mainly by drying pulped cassava roots. This process involves the following key activities: peeling, washing, grating/slicing/ chipping, disintegration, sifting, drying, milling, screening, packaging and storage as summarized in the flow chart (Nanam Dziedzoave, et al, (undated) Training Manual for the Production of High Quality Cassava Flour) on the next page (Fig. 3.5): Raw Material Selection A well matured (10-12 months) raw material with low moisture content should be selected for processing, since this has a direct impact on product recovery rates and starch quality of the flour. All the four cassava flour processing units visited by the team indicated that the supply of cassava roots as raw material for processing of flour is not a major constraint. The raw materials are obtained within a radius of about 5 miles from the processing units and therefore processors do not travel long distances in search for the raw materials. All the four processing visited in the two regions indicated that all the cassava varieties produced in the two regions were suitable for processing into high quality cassava flour. However, two processors from Techiman, Brong- Ahafo Region indicated that the Bensere variety was most preferable for the white colour of its flour products. Afisiafi is less desirable for flour processing because the customers who use it to produce bread complain that the bread it produces is too light. The two processors from Techiman, Brong- Ahafo Region also indicated that to produce HQCF, there should be more conscious selection of the raw materials as compared to gari and that the cassava roots that bear any mechanical, pest or disease damage can contribute greatly to poor quality cassava flour and should therefore be avoided. Two of the processors visited in Techiman District indicated that cassava roots harvested between 10-18months provided the best HQCF.

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Figure 3.5: Major cassava flour processing activities FRESH CASSAVA Cassava Peels &Waste water

PEELING&WASHING Cassava waste liquor

Waste fibre

PRESSING

DISINTEGRATION

SIFTING

SLICING/CHIPPING GRATING

DRYING Fibre residue

HQCF

MILLING&SCREENING

PACKAGING&STORAGE Source: Nanam Dziedzoave, et al,(undated) Training Manual for the Production of High Quality Cassava Flour, Department for International Development (DFID) publication

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Peeling Peeling is manually done by means of a peeling knife. Adequate peeling is necessary to avoid the presence of peel fragments in the final product. In the two regions, peeling is still done manually and is a women-dominated activity. This activity is still very labour intensive and consumes about 50% of the total processing time. Research into better peeling technology could go a long a way in reducing the processing costs. Picture 3.8: Manual peeling of cassava roots

Picture 3.9: Washing of peeled cassava roots

Picture 3.10: Grating of cassava

Picture 3.11: Pressing of cassava grit before drying

Washing Thorough cleaning in clean water is important for the removal of all sand particles and dirt, which could mar the quality of the final product. All the processing units visited had well constructed permanent washing structures. However, three of the processing units visited indicated that it is expensive to pay for labour to collect clean water required for processing HQCF from bore holes.

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Grating Grating is carried out by means of a motorized cassava grater. Grating disintegrates the cassava tissue and frees up the moisture so that pressing can be done much easily. Four of the cassava processing enterprises visited owned at least one motorized cassava grater. The average cost of a motorized grater is 4.5 million cedis excluding the cost of the motor (May 2004). This cost of a motorised grater is too high to be afforded by a single micro entrepreneur. Two of the processors indicated that they acquired their graters through donations, one from RTIP and the other from an NGO. One processor acquired the grater through a loan from the EDIF fund. The greatest advantage is that the graters are locally fabricated within the region. Pressing Pressing is a principally dewatering process, which is carried out either with a manual screw or a hydraulic press. Pressing time is kept at a reasonably short time to avoid fermentation of the grated mash. The purpose is first to remove enough moisture from the grated mash so as to facilitate drying. Inadequate pressing could lead to longer drying time resulting into fermentation with undesirably high acid tastes in the product. Pressing also helps to get rid of much of the yellow colouring in cassava tissues thereby helping to improve the colour of the final product. All the enterprises visited indicated that they used manual screw press (Picture 3.11)) which costs about 3million cedis (May 2004). The press are also locally fabricated within the regions and therefore readily available on the market. The team observed that there is no proper disposal of the waste water from the pressed cassava cake. The waste water is left exposed in the open and can be a potential source of disease epidemics. Disintegration This is best done by means of a motorized cassava grater. The objective is to reduce the pressed cake into fine grits so as to aid sifting and drying. Un-disintegrated cake dries more slowly, whilst disintegrated cake dries faster and gives a better quality product. No firm among those visited in the regions was using a motorized cassava grater for disintegration of the pressed cake. This was being done manually by hand making the process time consuming and very laborious. Sifting Sifting is necessary only in situations where no appropriate screening equipment is available. It is done by means of a manual rotary sieve to remove as much fibre from the disintegrated dough before drying. It also helps to improve the smoothness of the product. The sieves are also locally fabricated within the regions and therefore readily available on the market. Slicing / chipping This is done by means of a manual or motorized slicer or chipper. It has the advantage of yielding a product with slightly higher starch content. But it compromises other quality requirements like colour, odour and taste to a large extent. It is recommended for use in the absence of a grater or facilities for handling grated cassava. It should however never be used for cassava with high cyanide levels. No enterprise slicing or chipping cassava for processing was identified in the two regions. This line of cassava processing represents an area that has not been ventured into. It was not clear whether this is because of lack of processing technology or it is a more costly mode of processing cassava flour.

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Drying This may be carried out using a mechanical or sun/solar dryer. The loading density should not exceed 2.5kg/m2 for mechanical drying and 1.5kg/m2 for sun/solar drying. The lower the loading density, the faster the drying process and the better will be the flour quality. Drying temperatures should not exceed 60 0C. The cassava flour processing enterprises visited in the two regions pointed out that lack of adequate drying facilities was the biggest setback to flour processing. Two processors visited had solar dryers while the other three were using mechanical dryers for drying the grit. However, the drying capacities of the dryers were all below the recommended loading density above. Milling Dried chips or grit are milled in a hammer mill or a disc attrition mill to a fine particles size. Screening Screening is done to remove as much fibre from the product as possible in order to improve the smoothness of the flour. Packaging and Storage Packaging of cassava flour should be in containers which will safeguard the hygienic, nutritional, technological and organoleptic qualities of the product. Bulk packaging of the final product should be in polyethylene-lined polypropylene sacks. Unit packaging should be done in polyethylene packaging materials. Adequate packaging should be in well ventilated dry rooms to avoid uptake of moisture. All the processors visited had large well ventilated storage facilities with an average storage capacity of about 250 bags (50kg-bags). This capacity is not sufficient for large scale production of cassava flour. All processors indicated that packaging materials are readily available on the market. Cassava flour is packed in 2 kg, 5kg, and 10kg and few processors do bulk packaging because of the limited quantities produced. 3.4.4 Profitability of the cassava flour processing enterprises The team analysed the profitability of one micro enterprise cassava processing unit visited in Brong Ahafo Region and a medium scale enterprise in Eastern Region. Data on variable costs and gross revenues were used to calculate the gross margins to determine the level of profitability of the flour processing enterprises. Variable costs and revenues of flour processor in Brong Ahafo Region were based on the processors’ memory recall. All processors visited in Ashanti and Brong Ahafo Regions did not keep written records for the actual expenditures on and revenues from their processing units. The table 3.10 shows the profit level for one micro enterprise that was processing flour by the time of the visit in Brong Ahafo Region.

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Table 3.10: Flour processing by a micro enterprise in Brong Ahafo Item unit Quantity price Cd value Cd Direct production costs Cassava roots kg 150 533.3 80,000 Transportation cd 6500 6500 Peeling and washing wd 1 10000 10000 Grating and pressing wd 1 5000 5000 Sieving wd 1 1000 1000 Utilities Drying ( fuel+labour) cd 15000 15000 Milling cd 5000 5000 Total Expenditure 127,500 Enterprise revenue 50kg 2500 125000 Enterprise profit Cd -2500

Note: These costs do not include marketing and distribution costs because the processor was using the flour for baking bread and other pastries.

The above costs and revenues indicate that the cassava flour processing unit was operating at a loss. The team observed that the enterprise was being operated more as a side income venture to supplement family income than on a profitable basis. The processor could not ably determine the actual operating costs for the enterprise because some of the costs were for both the enterprise and family use. The team also noted that the scale of processing units in Ashanti and Brong Ahafo Region Regions was generally too small to produce cassava flour for industrial use. The processing units cannot enjoy economies of scale to allow them reduce their average costs of production. The team visited a medium scale cassava flour processing enterprise in the Eastern Region in order to determine the profitability of a medium scale cassava flour processing enterprise as shown table 3.11. Table 3.11: Flour processing at Motherwell Farms Ltd Item unit quantity price Cd value Cd input Cassava root kg 4000 300 1,200,000.00 Labour manday 25 20 000 500,000.00 Diesel Fuel Cd 144,000.00 Equipment Cd 120,000.00 Water Cd 72,000.00 Transport Cd 120,000.00 Contingency Cd 260,000.00 Interest 20,000.00 Total expenditure Cd 2,436,000.00 gross revenue kg 1000 3000 3,000,000.00 enterprise profit Cd 564,000.00 return to capital Cd 0.188

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The medium scale cassava flour processor was more economically viable because the enterprise was already enjoying economies scale and as such was incurring lower average costs of production than the micro enterprise. 3.4.5 Processing capacity All the cassava flour processors visited indicated that they were operating at excess capacity. By the time of visit, only one processor out of the four cassava flour processors visited in Ashanti and Brong Ahafo Regions was operational. One of the processors visited in Techiman District was processing a total of 75 kg (30 %) of the total capacity of 250kg. The processor in Berekum District indicated that she was processing about 50kg of cassava flour only when her customers would place orders for her bakery and pastry products. The quantity of flour produced was dependent on the demand for her bakery and pastry products. One of the processors from Techiman, Brong Ahafo, was not processing, because he was installing machinery of bigger capacity. The Medium scale processor indicated that the enterprise was operating at only 50% of the total capacity of the firm because of irregular and untimely delivery of raw materials to the processing unit. But even at 50% capacity of the firm, the enterprise was able to make a profit. From the production figures of processing units visited in Ashanti and Brong Ahafo Regions , the team noted that the processing capacities of the flour processing units was still too low to match the estimated potential demand for cassava flour by bakeries and plywood factories for the two regions. 3.4.6 Constraints and opportunities Constraints Lack of capital was indicated as a key constraint by four processing units. The processors visited indicated that they cannot expand the level of their out put because they cannot afford to pay for the raw materials for processing. Sometimes the raw materials for processing cassava were acquired on credit because of inadequate working capital. The cassava flour processing enterprises visited in the two regions pointed out that lack of drying facilities was the biggest setback to flour processing. Unlike gari where some levels of fermentation can be accepted, no fermentation should occur in processing of HQCF. The processing unit must have enough drying facilities to ensure that all the grated cassava must be dried within one day to avoid fermentation. None of the processing units visited in the two regions could produce more than 100kg of HQCF per day by the time of the visits because of lack of drying facilities. In fact, one of the processing units visited in Ashanti Region indicated that it had suspended flour production because it did not have enough capital to purchase another solar dryer. The one donated to the processing unit by RTIP had broken down. All the enterprises in the two regions indicated that the cost of power (fuel) for running the processing units was high. The two flour processors who were using electricity as the source of power complained that single phase installed could not sustain industrial processing. Production was always interrupted by frequent power cuts.

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Opportunities From the visits to the study areas, the team observed that the two regions of Ashanti and Brong Ahafo have favourable climatic conditions for cassava growing. This provides a strong base for the supply of cassava raw materials required for processing. All processors interviewed in the regions indicated that the supply of raw materials for processing of flour was not big problem because all the processors obtained their raw materials within a radius of five miles to the processing units. The team also noted that some varieties that produce good flour like Bensere variety are already being grown in the two regions of Ashanti and Brong Ahafo. The technology for making the processing machinery and equipment exists. The processors visited indicated that all the basic machinery such as graters, press, sieving equipment, dryers, etc can be manufactured within the region. The only major problem is that the cost of the processing machinery and equipment is still high. The team observed that Ashanti and Brong- Ahafo Regions were well linked with major trunk roads to both local and regional markets. Even the feeder roads were in good condition. However, the major constraint was the transportation of the cassava raw materials from farms to the nearest feeder roads or trunk roads where they can be transported to the processing units. Cassava being a bulky and perishable commodity, processing units should either be located near the farms or the cassava has to be processed e.g. into chips or grit to reduce on its bulkiness and perishability before it is transported to processing units. Processing of cassava in dry grit to be sold as an intermediate product for processing flour has already begun in the region. This is a good marketing strategy for farmers to process their cassava and can therefore either sell it as an intermediate product to distant places since it is less perishable or can store it for a longer period. Land which is used to store cassava under ground for long period is also released for other enterprises. 3.4.7 Conclusions The cassava flour processing units visited in the two regions were operating at a micro enterprise level with an average production of less than 100kg per day. All the cassava flour processing units visited were operating at excess capacity. Only one of the enterprises visited was operating at 50% of the installed capacity and the rest of the enterprises were operating below 50% of the installed capacity. This scale of cassava flour production cannot sustain commercial production for industrial use. Raw material for processing into cassava flour is not major constraint. Raw materials can be accessed within a radius of 5 miles to processing units. Some of the varieties for producing HQCF are already being grown in the two regions. The key constraint is the organization of transportation of the raw materials from farms to processing units. Lack of drying facilities was the biggest setback to flour processing for the processing units visited in the two regions. No fermentation should occur in processing of HQCF. The drying facilities must be in place to process all the grated cassava that day. Lack of big cassava drying facilities had driven some processors out of production.

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3.5 Starch production 3.5.1 The Ayensu Starch Company The Ayensu Starch Company Ltd. (ASC) is the first of ten proposed cassava starch factories planned under the President's Special Initiative. ASC was established as a commercial company to cultivate and process cassava into industrial starch for export (starch would be a new product for the country to export), and by bringing rural communities into the mainstream of modern economic activity. The company was incorporated on 19th September 2001 as a public limited company with 1,000,000 ordinary shares of no par value. The first directors of the company were farmers from the Awutu-Senya District of the Centre Region. The company began operations on 21st September 2001. The total investment in ASC is approximately US $7 million funded through long - term loans by the following local banks: Agricultural Development Bank (ADB), National Investment Bank (NIB), Ghana Commercial Bank (GCB), Oikocredit (a Dutch NGO) and Export Development & Investment Fund. The equipment was supplied by the International Starch Institute of Denmark and installed at a cost of approximately US$ 4 million. The rated capacity of the factory is 22,000 tons of cassava starch per year. At present, there are about 10,000 out-growers growing cassava for the factory. Most of this cassava is grown within a radius of about 40 km from the factory, in 9 districts in 3 regions, including the Central, Eastern and Greater Accra Regions. The total area on which cassava is grown for the factory is 12,500 acres (5,000 ha). In order to have a stable material supply and to help farmers benefit from producing cassava for the factory, all participating farmers have been organized into a farmers’ association called the Ayensu Cassava Farmer's Association (ACFA). This Association was registered as a company limited by guarantee in March 2003. Its objectives are: • Promote the cultivation of high-yielding varieties of cassava, • Ensure a regular supply of cassava to Ayensu factory, • Monitor the trend of cassava prices and negotiate prices that benefit both ASC and its

members, • Provide loans to its members, • Represent its members when necessary, • Provide links between ASC management and its members on company issues such as the

company’s business plans and goals, • Assist tenant farmers acquire and develop land, • Assist members in land preparation, planting, farm maintenance, harvesting and

transporting their produce to the factory, • Guarantee a market for the cassava that members grow. At present, it processes about 300 tons of fresh cassava roots and produces 60-65 tons of native starch per day (the rate of starch recovery is about 20 - 22% on roots, giving a roots-to-starch ratio of about 5 to1). The factory is running at about 30 % of its full capacity. An

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annual output of between 7,000 and 8,000 tons of cassava starch is expected this year from between 35,000 and 40,000 tons of fresh cassava. Picture 3.12: Cassava roots for starch processing at the Ayensu factory

Picture 3.13: The cassava starch for ASC is loaded for export

3.5.2 Costs of operation Fixed costs The effect of fixed costs (interest, depreciation etc) on unit costs is about three times higher than it should be because of the low throughput. It is difficult to reduce fixed costs: the only solution is to increase throughput and factory efficiency to something close to the design parameters of the factory. However, monumental problems stand in the way of achieving this goal, particularly finding adequate profitable outlets for the factory’s products. The starch produced at ASC is native starch. The demand for starch in Ghana over the last few years has never been more than 5,000 tons/year. This would represent only a very small proportion of the potential output of the factory – even if ASC were to be able to capture and hold 100% of the domestic market. Currently, only about 5% of the factory’s output is consumed domestically: 2.5% in the food industry and 2.5% in other industries and 95% is exported (Figure 3.6). Figure 3.6: Ayensu Starch Company product destinations

Starch produced by ASC

Domestic market Export market (5%) (95%)

Food industry Other industries EU Croatia Senegal (2.5) (2.5) (83%) 2% (10%)

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In view of the special nature of the international market, ASC has contracted International Starch A/S, a division of the International Starch Institute, to market the starch on the company's behalf for three years. However, according to a director of ASC, the CIF price for cassava starch in Europe is US $465/ton – US $10 less than the variable costs. In Nigeria the CIF price is US $420 and the company makes US $95/ton (Table 3.12). However, the Nigerian market is very limited. About 85% of the factory’s output is exported to Europe – to Denmark, Germany, Turkey, Greece and Croatia and the rest, about 10% is exported to Senegal. Table 3.12 Prices and costs of starch of ASC in world markets

Item EU market ($/ton CIF)

Nigerian market ($/ton CIF)

Price 465 420 1. Tax 65 - 2. Freight 115 40 3. Delivery cost 30 10 4. Commission and contributions 30 40 5. Variable costs 235 235 Total cost(1+2+3+4+5) 475 325 Profit/loss (Price less Total cost) - 10 95

Source Data from Ayensu Starch Company Ltd., 2004 Variable costs Like the fixed costs, the variable costs of the operation are far too high. The ASC variable cost per ton of starch is US$ 230 per ton. This is much higher than the cost in countries such as Thailand and Vietnam. The FOB price of native cassava starch in Vietnam (the same as is produced at ASC) is about US $150/ton (http://starch.dk/isi/market.htm, April 2004). Contributing to the high cost of ASC starch are the very low rate of starch recovery and the very low dry-matter content in the roots entering the factory. The starch recovery rate and the dry-matter content in the roots entering the factory The starch recovery rate is currently in the range 20 to 22%. A modern factory like the ASC factory should achieve an extraction efficiency of between 95 and 97% of starch with a roots-to-starch ratio of about 3.5 to 1 (Cecil, 2004). It should be noted that an increase in the recovery rate of 1% over the present rate would increase starch production by about 3 tons of starch per day. For efficient starch production, the content of dry matter in cassava roots should preferably be in excess of 35%, allowing an extraction rate of over 30%. At present, the farmers are still growing conventional varieties suitable for food consumption that have low dry matter content and low yields. There are still insufficient quantities of the new varieties with high dry matter content and high root yields that are being issued by the Root and Tuber Improvement Programme (RTIP). At present, only about 5,000 ha of Afisiafi were being cultivated in October 2003, mainly for starch processing of ASC (RTIP Fact sheet, 2004) but the dry matter of this variety is only about 30%, not high enough for starch processing of the factory. During the team's visits, the factory was processing a lot of cassava roots that were two years old. Over-mature roots contain lower amounts of starch than mature roots.

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A director of ASC, reported that there is insufficient power available to operate the factory properly. Because of this, the cassava roots are not being grated finely enough, leading to reduced efficiency. A generator as a second power supplier for the factory is being planned. Supply of cassava The transportation of cassava from the field to the factory is a major problem due to poor roads and high transportation costs, with the consequent effect on the variable costs of the operation. The costs of transportation in rural Ghana are extremely high and transport is a key constraint to the development of commercial cassava marketing (Graffham et al, 1999). Road transportation will seldom be less than US $0.14/ton/km anywhere in the world (Cecil, 2004), but in Ghana, during the period of the current study, transportation costs were in excess of US$ 0.50/ton/km. Many rural areas of Ghana still resemble a footpath economy with head portage being the principle means of primary transportation of agricultural commodities (Graffham et al, 1999). This way is being used in material areas of factory, especially for porting cassava roots from the field to trucks before transporting to factory and that is one of causes of high variable cost of the factory too. On the other hand, ASC is paying for farmers at a farm gate price of 155.000,00 cedis per ton (May 2004), but sometimes it is difficult to collect enough quantity of cassava for its operation due to competition with traders who are buying the for fufu and gari processing with higher prices. 3.5.3 Current demand for cassava starch for industrial use A survey carried out in 1996 by the Natural Resources Institute (NRI) and the University of Ghana (Graffham et al., 1999) indicated that approximately 4,200 tons of starch was used industrially in Ghana in 1996 and that 5 industries, including the textile, pharmaceutical and plywood manufacturing industries, used most of it. In total, these industries used about 80% of the starch imported into Ghana in 1996 (Graffham et al., 1999). This amount seems to have diminished year by year: in 1998 imports of starch amounted to 2,993 tons and in 2002 there were 2,190 tons imported. The CIF price of native starch was about US $800 and that of modified starch about US$ 1200, depending on the country of origin (Table 3.13). At present, there are two industries with a substantial demand for starch: the textile industry and the pharmaceutical industry. Table 3.13: Starch imported into Ghana 1998 - 2002

Native starch Modified starch Total imported starch Year

Quantity (tons)

Value (US $ 000)

Quantity (tons)

Value (US $ 000) Tons Value

US $ 000 1998 631 447 2,362 3,674 2,993 4,121 1999 429 349 2,146 3,790 2,575 4,219 2000 684 581 954 1,172 1,638 1,753 2001 864 671 993 1,016 1,857 1,687 2002 1,082 863 1,108 1,178 2,190 2,041

Source: Data calculated from Statistical Service of Ghana, 2004.

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The use of cassava starch in the textile industry Starch is used in the textile industry for sizing, finishing and printing. Native starch is used as a thickener for imprinting ink and in sizing the yarn – to improve its strength and flexibility and prevent breakage of individual threads on the loom. Modified (oxidized) starch is used to increase the weight and stiffness of finished fabrics and for the application of gloss finishes. The amount of starch required depends on the viscosity of the starch and the weight of the yarn, but normally starch use is between 5 and 15% of the weight of the yarn. In Ghana, in 1996, the textile industry used about 1,680 tons accounting for 40% of the imports of starch (Graffham et al., 1999). The textile industry of Ghana is very famous in the world for its products with beautiful, specific colours and designs. However, in the last years this industry develops slowly and at present there are only able to export 0.1% of its products to USA, EU, and Africa, and up to 75% of the cloth for domestic use is imported from outside the country (Daily Graghic, June 28, 2004). At present, there are no official data on the amount of starch used in the textile industry, but based on cloth production in Ghana from 1998–2002 (Table 3.14) and the quantities of imported starch (Table 3.13) it is estimated that 1,000–1,200 tons of cassava starch were used in this industry. Table 3.14: Cloth production in Ghana 1998-2002

Year Quantity (million metre)

1998 35.9 1999 33.0 2000 35.7 2001 36.4 2002 42.5

Source: Statistical Service of Ghana, 2004 Cassava starch use in pharmaceuticals In pharmaceuticals, native starch is widely used for making tablets, capsules and as a diluent. In tablets, starch has a multipurpose role, acting as a coating and dusting agent, as a diluent, as a binder for the pharmaceutically active components of the tablet and as a dispersant – after ingestion it absorbs moisture and swells, resulting in disintegration of the tablet and dispersal of the active ingredient (Graffham et al, 2000). In powder formulations, starch is used mainly as a filler. Based on the data in the NRI/UoG survey (1996) and the data available from the Statistical Service of Ghana (Table 3.13) it is estimated that about 1,000 tons of native starch is being used in the manufacture of pharmaceuticals in Ghana. 3.5.4 Potential demand of cassava starch in Ghana Glucose processing (both powder and syrup) At present, Ghana has to import 1400–1500 tons of glucose syrup every year, equivalent to about 1500–1600 tons of native starch, and this demand is increasing by 25–30% per year (Table 3.15). It is mainly used in the brewing, confectionery and pharmaceutical industries (Dziedzoave et al., 2002). This product should be a target for starch produced locally. This would at the same time utilize a local resource and create an opportunity for starting a sweetener industry in Ghana.

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Table 3.15: Glucose syrup imported into Ghana 1998–2001

Year Quantity (tons)

Value (US $000)

Value (000 Cedi)

1998 696 445 - 1999 918 651 1,733,737 2000 1,160 609 3,374,488 2001 1,479 836 5,855,298

Source: Data calculated from the source of Statistical Service of Ghana, 2004. Producing modified starch Modified starches are made from native starch by applying different reaction conditions including temperature, pH, and different chemicals with strict process control. These specialty products have unique properties. They still retain their original granule form and resemble the native starch in appearance, but the modification introduces improved characteristics in the starch when it is cooked (http://www.starch.dk/isi/starch/tmstarch.htm, April 2004). Modified cassava starches are high-value products and are used widely in many different industries, including the textile, plywood, food and paper industries. In Thailand, starch modification is a very important industry and it began when cassava starch factories changed from traditional technology to large scale, modern industrial technology (Sriroth et al., 2002). From native starch, Thailand now produces 14 different modified starch products to meet their domestic and export requirements. In Ghana, the current demand for modified starch is between 1,000 and 1,500 tons per year (Table 4.13) and this sector is a potential outlet for locally produced cassava starch. Industrial alcohol distillation Every year, Ghana has to import 8–10 million litres of industrial alcohol (worth US $7–8 million), equivalent to 15,000–20,000 tons of cassava chips or 10,000–12,000 tons of starch per year (Table 3.16). Recently, Kantaka (2004) identified the production of industrial alcohol from cassava as an industry with high potential in the future and suggested that cassava could replace cocoa in Ghanaian agriculture. This potential should be exploited in order both to reduce the expenditure of foreign currency and to realize the potential of producing high value added products from cassava produced in Ghana. Table 3.16: Ethanol imports into Ghana, 1998-2001.

Year Quantity (000 litre)

Value (US $ 000)

Value (million Cedi)

1998 6,609 4,340 - 1999 10,148 8,192 22,060 2000 7,806 7,276 38,934 2001 8,079 7,026 49,960

Source: Data calculated from the source of Statistical Service of Ghana, 2004

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3.5.5 Conclusions

1. Sales of starch produced at ASC are inadequate to support an efficient operation of the factory. The consequent excessive effect of fixed costs on the unit costs of the product adversely affects the viability of the company.

2. At present, using raw material with low dry matter and high transportation costs are amongst the many causes of high variable costs, which together reduce the profitability of the operation.

3. There may be possibilities in Ghana for manufacturing new products from cassava other than native starch

4. In order to reduce the production costs both at the factory and in the field, some areas that need to be addressed are: a. More varieties with high dry matter and root yields suitable for starch processing

should be selected and issued by RTIP b. Development of a sustainable raw material supply (both quality and quantity) c. Much wider use of varieties with higher dry matter content and better yields by

farmers d. Reduction in transportation costs, possible including the reduction of the average

distance that roots are hauled e. Enlargement of the factory power supply f. Improvement in the organization of the supply of roots.

5. There is good potential demand for products that could be made from locally produced cassava and starch in Ghana, including glucose syrup, modified starch and industrial alcohol. The production of these products should be very carefully analyzed from both technical and economic standpoints and, if appropriate, their manufacture should be exploited as quickly as possible.

6. A very rigorous analysis should be made of the viability of any further large-scale factories for making cassava starch in Ghana. High variable and unitized fixed costs must be properly controlled at ASC before setting up any more factories like that at Ayensu.

3.6 Supply of fresh cassava for processing 3.6.1 Cassava production Yields Brong Ahafo and Ashanti Regions are among the largest producers of cassava in Ghana. Brong Ahafo produced 22.7% and Ashanti 13.4% of Ghana’s production in 2002 (Tables 3.17,18 and 19). The tables indicate a continuous increase in both the area planted to cassava and the quantities produced. Cassava production is said to be in surplus of what can be used for food (TOR) and hence the springing-up of small scale processing units, and the government’s plan of establishing starch production factories, one of which is in place at Bawjiase, Central Region (TOR). The given yields however reflect a combination of cassava varieties for both, direct home food consumption (boiling and pounding into fufu) and processing (into Gari, agbelima, flour and starch).

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Table 3.17: Area, yield and production of cassava in Brong Ahafo Region

Year Area (ha) Production (Mt) Yield (MT/ha) 2002 152,700 2,209,820 14.5 2003 171,020 2,489,990 14.6

Source: Statistics, Research and Info. Directorate, MOFA March 2003 & Feb. 2004 Table 3.18 Area and production of cassava in Ashanti Region

Year Area (ha) Production (Mt) Yield (Mt/ha) 1990 70,293 913,819 13.0 1991 85,300 870,060 10.2 1992 87,587 779,548 8.9 1993 104,120 1,121,964 10.8 1994 105,100 1,041,140 9.9 1995 106,694 1,066,942 10.0 1996 117,462 1,191,481 10.1 1997 117,462 1,191,499 10.1 1998 116,863 1,168,862 10.0 1999 118,934 1,160,000 9.8 2000 124,795 1,212,001 9.7 2001 128,538 1,304,479 10.2 2002 128,667 1, 305,001 10.1

Source: PPMED (Agric. Statistics & Census Div.) 2001, and MOFA Ashanti 2003 Table 3.19 Area, yield and production of cassava in Ghana

Year Area (1000 ha) Yield (Kg/ha) Production (1000 Mt)

1989-91 424 9,032 3,915 2000 660 12,281 8,107 2001 726 12,344 8,966 2002 794 12,249 9,731

Source: FAO Production Year Book, 2003 Varieties Table 3.20 shows the varieties grown in the areas sampled in Brong Ahafo and Ashanti Regions. According to a group of farmers interviewed in Adidwan, Ashanti Region, cassava is cultivated in a range of 1 to 30 acres of their land per household in the area. 50% of the households allocate 1-2 acres to cassava and put it all to local varieties that are used for direct home food consumption (boiling and pounding into fufu). The other 50% of the households allocate 10% of the land to local varieties still for provision of food and 90% of the land to improved varieties for processing (into Gari, agbelima, flour and some starch). On the other hand, in Afrokrom (Brong Ahafo Region) acreage for cassava production ranges from 1-7 acres. 1-2 acres is allocated to cassava by 80% while 3-5 acres by 15% and 6-7 acres by 5% of the households. In general, local varieties take up 1-4 acres and improved ones 2-20 acres of most farmers’ land in the Akrofrom and Aworowa areas of Brong Ahafo.

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Table 3.20 Varieties grown in Adidwan, Akrofrom and Aworowa areas of Ashanti and Brong Ahafo Regions, and their uses

Varieties grown Uses Improved varieties:

Abasafitaa Afisiafi Tekbankye

Gari, Agbelima, flour Gari, Agbelima, flour Gari, Agbelima, flour and fufu

Local varieties :

Abtumtum Abakokoo Adabo Akosombo Bensere Wenchibankye

Fufu

According to the farmers in Adidwan, Tekbankye is good for flour as it gives white flour. Afisiafi is good for gari, as it gives off-white gari but is not good for fufu because it is too watery thus not easy to pound. Abasafitaa’s gari is whitish, hence not very much liked. In Aworowa, local varieties are preferred for gari but are instead sold to chop bars where they fetch 20% more than from gari processors. Farmers in the three areas (Adidwani, Akrofrom, Aworowa) visited were not able to give actual yields of the different varieties grown but indicated that the improved varieties yield three times higher than the local ones. Local varieties yield up to 10 tons per hectare (Graffham et al, 1999) while improved varieties have a potential yield of 26 – 38 tons/ha (Table 3.21). With regard to dry mater content (DMC), the improved varieties available qualify for processing into starch and flour as they have a DMC range of 27% - 40%. Worldwide, varieties with 40 % DMC are used but on average varieties with 35 % are acceptable. Any of the improved varieties seemed to be taken for processing into either gari or/and flour. However, the Ayensu starch factory uses Afisiafi (for its high dry mater content). Note that although Tekbankye has higher dry mater content than Afisiafi, the former is susceptible to cassava mosaic virus (Paulina Addy, personal communication) and hence can not be grown extensively. Table 3.21: Yield and dry matter content of newly released improved cassava

varieties, at 12 months maturity period Varieties Yield (tons/ha) Dry matter content (%) Fresh roots Dry roots Abasafitaa 26-31 8-10 30 Afisiafi 27-30 9-10 30 Gblemo Duade 33-38 9-11 27 Tekbankye* 26-31 8 40

* Data at 12-18 months maturity period Source: RTIP Factsheet No. 1, June 2002 Production costs Information collected from the three sampled farmer groups in the two study regions indicated that cassava production costs were in the range of 1.3 to 2.2 Million Cedis (Table 3.22). The costs in Adidwani and Akrofrom compare well with RTIP established costs

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of 1.635 Million Cedis/acre (Table 3.23). The cost differential in Aworowa is mainly due to the high weeding costs. Farmers in Aworowa indicated that they weeded their fields seven times while the other two groups weeded three times during the 2 year cassava cropping cycle. It is not clear however why the farmers needed to weed their crop at the higher rate in Aworowa. The farmers in Akrofrom and Aworowa also indicated that much as there is sufficient labour force in the area, it is not available for cassava production as the wage paid is lower than that paid by other enterprises such as in the cocoa and timber industry. Table 3.23 shows that cassava production costs have been steadily increasing in the last four years, and are likely to continue increasing given that use of fertilizer may not be avoided for a long time. The possible need for fertilizer use predicted from Table 3.18 which indicates that cassava productivity (yield/unit area) is decreasing (in Ashanti Region). It is known that however fertile land may be, nutrients (especially potassium) that are heavily extracted for the high yield obtained, need to be regularly replaced for soil fertility sustainability and hence crop productivity. Currently most farmers in Afrokrom and Aworowa are using shifting cultivation to fallow the land (for 2 years) to have soil fertility rejuvenated, while a few in Adidwani are using poultry manure. Table 3.22 also shows that in all cases, harvesting constituted the highest production costs except in Aworowa where weeding appears to be more costly. Information from all farmer groups indicated that harvesting is much more expensive in the dry season than the rainy season because during the dry season the ground is too hard and not easily broken through by the hand hoe they use for harvesting. During the rain season they use either hand pulling or hand hoe digging to extract the cassava roots from the ground. Table 3.22: Cassava production costs (per acre) in Adidwan, Akrofrom and

Aworowa areas of Brong Ahafo and Ashanti Regions

Location Adidwan (Cedis/acre)

Akrofrom (Cedis/acre)

Aworowa (Cedis/acre)

Planting material Nil Nil Nil Land clearing 120,000 120,000 120,000 Ploughing 120,000 130,000 180,000 Ridging 200,000 200,000 200,000 Planting 60,000 120,000 60,000 Weeding 360,000 270,000 394,000 Fertilizer Nil Nil Nil Harvesting 675,000 600,000 600,000 Total costs 1,535,000 1,440,000 1,554,000

Table 3.23: Cassava production costs (in Cedis)

Year Cost/acre Cost/hectare 2000 730,000 1,825,000 2001 960,000 2,400,000 2002 1,10,000 2,775,000 2003 1,400,000 3,500,000 2004 1,635,000 4,088,000

Source: RTIP, 4 April 2004

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Contract farming The terms of reference indicated lack of organised processing units as one of the problems in the commodity marketing chain. It was established during the study that there is also no organised supply of cassava raw material to processing units in the study area. Both cassava production and supply to the processing units (dominated by gari production) is on individual basis. On the other hand, cassava supply to the Ayensu starch factory is by contract farming, the farmers being located within a radius of 25km from the factory. In Brong Ahafo Region, contract farming was being used for production of tomatoes for a tomato processing factory in Wenchi District. An interview with 2 groups of tomato supply contract farmers (in Techimantia, Tano District) aimed at get an understanding of the system pointed out some advantages and disadvantages of contract farming, and weakness in their contract terms. Advantages included guaranteed market for produce and stable though low prices (view of the Nyame Bekyere group), increased farmers bargaining power and farmer’s easy access to training in crop management (view of the Awurade na Aye group), and easy access to credit and inputs as pointed out by both groups. Low prices offered by the contractee (tomato processing company) and the contract not allowing farmers chance to take advantage of higher open market prices were the disadvantages identified by and common to the groups. The interviewed farmers expressed dissatisfaction not only concerning the procedure for developing the contract but also in contents of the contract terms. Both groups said the contracts were written by the company and endorsed by the groups’ representatives (Chairmen and vice chairmen). The interviewed members however indicated that although they (through representatives) signed the contract terms, they had not been clearly/fully made to understand the contents and implications, a process they referred to as not being transparent. Examples were given on price, grading of the tomatoes, payment terms and loan acquisition terms as follows. Common information from both groups was that while the farmers were made aware of the price to be paid for a given container, the container’s size was only shown in a picture form but not physically. The farmers therefore got an impression it was a big box (similar to what is used in the open market) only to find out later it was disappointingly smaller. Similarly, the farmers said they were made aware that the tomatoes were to be graded but it was not clear to the Nyame Bekyere group that the prices would differ by the grades. The Awurade na Aye group understood there would be a price difference between the grades but details of the difference were not clarified to them. Both groups complained of not being informed of the weight of their produce at the time of collection but only to see it on their payment sheets. They also indicated that it was not made clear to them in advance that they were to collect the loan (for start-up funds) directly from a bank. They thought the start-up funds were to be provided directly by the tomato processing company. They also indicated that they were made aware that deductions to recover loan funds would be made from their expected income per produce lot collected but the amount or percentage to be deducted was not priory clarified to them. The interviewed members pointed out key weaknesses and/or loopholes in the contract terms, which loopholes lead to losses from the farmers’ point of view. They included, the company (tomato factory) not acting as surety for the contract farmers’ loan, the loan repayment period of three months being too short, lack of clause for protection/compensation of farmers in case of the crop/production being affected by natural catastrophes (floods, drought) and lack of clear clauses to take care of inefficiencies in delivery of inputs and loan fund and

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transporting, weighing and grading of produce, all being activities done by the company in the absence of the produce suppliers. With regard to inefficiencies, the farmers in the Awurade na Aye group indicated that the loan money and inputs were delivered two months later than stipulated in the contract. Yet, the company expected the farmers to deliver the first produce batch as per schedule indicated in the contract. According to both groups, the company sometimes fails to pick the produce on a pre-booked date (by the company as per contract). Being perishable fruits, the picked and packed tomatoes get spoilt more or less at the expense of the farmer, as the compensation given is much less than the value of what is lost. Both groups also indicated they were not in the know how of how much loss would be incurred during transporting, grading and weighing their produce as no document (e.g. invoice) was given to them to indicate the weight of tomatoes at the time they were picked from the farmer. For success of contract farming in their area, the interviewed farmers suggested the following: • Terms of contract should be fully and clearly explained to all members of the party that

did not draw them (contract farmers of a group in this case) for each member’s clear understanding of the contents and implications.

• The farmers (or farmer groups) to be contracted should not be hurried to sign the contract but should instead take time to understand it and negotiate for terms/specifications that will allow them to run the contract profitably.

• A loan repayment period should be at least one year compared to the three months given to them

• Clauses to protect the farmers from inefficiencies due to the contracting company and from losses due to natural hazards should be developed with the contracted farmers to be and well indicated in the contract terms

The same farmers indicated that in future they would not accept contracts that are not ‘transparent’ to them, but acknowledged that if contract farming is conducted in good faith from both parties it is a worthwhile venture. The team was not able to establish issues on varieties in contract farming but were of the view that the contract should also spell out what variety of the crop in question should be produced and what quantities should be supplied per given period of time. Constraints The cassava production constraints mentioned below were identified by farmers interviewed in all the three sampled areas. Most important was the disincentive of low prices of the cassava processing (improved) varieties. The farmers indicated that due to low farm gate prices versus high production costs, most of them leave the cassava roots to go waste (un-harvested) in the field. The other constraints are related to production and include high costs of labour and transport, and limited access to credit facilities. Labour for harvesting was presented as the most expensive especially during the dry season. At times however, weeding labour gets scarce and hence expensive. The high transportation costs were identified by the farmers to be due to two major causes namely poor feeder road infrastructure and poor mechanical conditions of haulage vehicles used. According to transporters allied to GPRTU in Aworowa, poor vehicle maintenance was attributed to limited access to spare parts to.

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Transport is mainly needed for the supply of planting material to farms and raw material to processing units. Through observations, the team also identified the following as additional key constraints to cassava raw material supply. Currently there is no starch factory in Brong Ahafo and Ashanti Regions, and the few flour processing units in the region are at micro scale (producing less than 100 kg per day), mainly utilizing raw material from a radius of less 5km. Cassava roots are a bulky and highly perishable raw material. The combination of bulkiness and perishability demands for short distances between production and processing units. At the moment, the starch (Ayensu) and flour (Amanase) processing units are located outside the study regions (in Central and Eastern Regions respectively) and do not purchase raw material from farms in Brong Ahafo and Ashanti, a factor that appears to be a disincentive to farmers in these two regions. There are several (total number not known as majority are not registered) processors for gari production but most of them are located in townships which are far away from the production fields. Due to the high level of perishability of cassava roots the raw material needs to be uprooted and transported to processing units within a day if quality products (especially flour and starch) are to be obtained. Incidentally, head-loading and bicycle haulage are the principle means of field edge transportation of cassava roots and therefore a problem that needs to be handled, jointly by local governments (create/improve farm access roads), central government (avail policies favourable for easy access to farm tractors and haulage vehicle spare parts) and processors (locating processing units in conducive distances in relation to production units). Lack of mechanical harvesters is another problem in the cassava raw material supply system. The use of hands and hand hoe for uprooting the cassava is only possible during the rainy period but also limits the quantity harvested a day to a minimum. This may cause failure of supply quantity to match the demand for processing plants. Equipment manufactures interviewed (KNUST-Agric Eng., KNUST-TCC, ITTU unit in Sunyani) indicated that there are no mechanical harvesting machines but KNUST-Agric Eng is in a process of producing one in collaboration with the PSI. Decreasing productivity of cassava is but a potential constraint to supply of the raw material. Production is apparently increasing by increase in cultivated land. This study was not able to establish policies on land use and hence encroachment on forest areas for cassava (and other commodities) expanded production. However, it would be advisable that emphasis be put on increasing land/cassava productivity in case of a limitation on cultivation land expansion. 3.6.2 Cassava marketing Marketing of cassava raw material was pointed out by all the interviewed farmers as the major bottleneck to cassava production. They even threatened to reduce or stop production of improved varieties (meant for processing into starch and flour) if income from it continues to be lower than the production costs. Below, key constraints to marketing (hence supply) of cassava raw material as identified during the study are mentioned.

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Constraints The cassava production costs are too high to make supply of raw material for processing a profitable enterprise. The farm gate price for fresh cassava is too low to cover the production costs incurred. According to farmers interviewed in the three visited areas, cassava farm-gate price ranged from Cedis 48,000 to 256,000 per ton during the rainy season and could only rise up to 550,000 during the dry season as shown in Table 3.24, a price that is still too low for sustain supply of cassava raw material for industrial use. The farmers indicated that prices are relatively high during the dry season (December to March) due to harvesting difficulties and very low during rainy seasons when there is surplus cassava as it is easy to harvest. However, seasonal availability of other staple foods (e.g. maize, yam), level of cassava production, number and scale of processing plants/units and competition of cassava between food and processing, affect cassava prices. It is worth noting that competition between food and processing is not much, because the improved varieties are not good for direct food making (fufu) hence the majority of farmers separately grow the local (food) and improved (processing) varieties. High transport costs were given by the farmers and processors as a one of the major bottlenecks in the supply and marketing of cassava raw material. Poor road infrastructure, limited appropriate haulage vehicles and limited access to their spare parts, and bulkiness and high level perishability of the produce contribute the high transport costs. Table 3.24 Farm-gate prices of cassava in selected locations in Brong Ahafo

and Ashanti Regions

Location Farm-gate price – dry season (Cedis /ton)

Farm-gate price – rainy season (Cedis /ton)

Adidwan, AS 89.000 48.000 Woraso, AS 100.000

Afrokrom, BA 403.000 256.000 Aworowa, BA 550.000 100.000 Berekum, BA 533.000

Farmers bear the cost of transporting cassava to processing units. The farmers are currently selling at a loss and prefer to keep the crop in the ground. Some cassava has been in the fields for four years and farmers expressed reservations about growing the improved varieties for industrial use. They are instead willing to increase the local varieties which are suitable for fufu and command a higher price on the market. Much as cassava supply base is sufficient, the supply organization of the produce is still poor. Farmers are currently producing and selling the raw material to processors as individuals. Likewise the price for the raw material is dictated by the buyer (processor) who claims that the price offered is also determined buy the price of the processed products. Opportunities A few producer organizations are already existent in the two regions. However, where these organizations exist, they are too weak to wield any influence on important decisions that affect farmers. There is need to facilitate farmers to organize themselves into producer organizations. According to extension agents interviewed, such an organization would increase the farmers bargaining power for better services with regard to input acquisition and produce marketing. It would also help in reducing the marketing costs as it would eliminate the unnecessary middlemen.

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Contract farming is not a new phenomenon in the regions. Some farmers were already supplying tomatoes to a processing firm in the region. Although there are a few operational bottlenecks to be sorted out, a number of adjustments could be made for farmers in Brong Ahafo and Ashanti to supply cassava to processing units under contract farming. However, the contract has to be transparent right from the beginning and respected by both parties (see contract farming above). According to the plywood companies interviewed, another possible solution to reliable supply of raw material is establishment of own plantations by a processing or beneficiary company. This could be augmented with supply from identified farmers whom the company could support for production of the needed raw material. Terms for the support would have to be drawn, made clear to the farmers and a memorandum of understanding (MOU) signed. Supply and marketing of cassava for industrial use could also be improved by establishment of several primary processing units within easily reachable distances from production units. Such units would primarily process cassava roots into chips and/or grit which take a short time to dry and can be kept for a long period before processing into flour. Such primary processing increases the shelf life of the raw material and reduces bulkiness thus increasing chances for long distance supply. Since the chips/grit can be kept for long, supply can be spread uniformly across the year by producing plenty during the rainy season when cassava roots are cheaply available (easy to uproot) and selling it during the dry period when raw cassava roots are not easily available. This however requires use of dryers (not relying on natural solar drying) as it is inefficient during the rainy season. Otherwise, the farmers interviewed indicated that all farmers are willing to cultivate and supply as much cassava as needed by processors as long as they are assured of its market and reasonable farm-gate price. 3.6.3 Conclusions There has been a continuous increase in both the area planted to cassava and the quantities produced in the two regions of Ashanti and Brong Ahafo of both local varieties (Abtumtum, Abakokoo, Adabo, Akosombo, Bensere and Wenchibankye) that are used for direct home food consumption and improved varieties (Abasafitaa, Afisiafi and Tekbankye) for processing into gari, agbelima, flour and some starch. The improved varieties yield three times higher than the local ones and all these improved varieties produced in the two regions are suitable for processing into starch and flour as they have the recommended DMC range. There is a surplus production of cassava for processing which has resulted into low and fluctuating prices for fresh cassava mainly during the rainy season in the two regions. There are no large scale cassava processing units in Brong Ahafo and Ashanti Regions, and the existing flour processing units are at micro scale (producing less than 100 kg per day), mainly utilizing raw materials from a radius of less 5km. The scale of processing of cassava based products in the region is thus still too small to match the current level of cassava production. Cassava production costs have been steadily increasing over the last four years, yet results indicate that cassava productivity (yield/unit area) is decreasing. Harvesting constituted the highest production costs. Information from all farmer groups indicated that harvesting is much more expensive in the dry season because the ground is too hard for cassava to be

48

harvested by hand hoe. Transport costs are also high due to poor accessibility to farmers’ fields. Farmers do not have fast and appropriate transport means to haul the bulky and perishable fresh cassava from fields. Head porterage which is the major form of transport from farmer fields to the nearest major feeder roads is too inefficient and inappropriate for this bulky and perishable commodity to be effectively and timely delivered to processing units. There is therefore need to explore the possibility of encouraging farmers and processors to embark on contract farming. This will ensure a reliable supply of raw materials to processors while at the same time assuring farmers of a reliable market and stable prices for their fresh cassava. However, lessons learnt from Ayensu factory and contract farming in tomatoes indicated that at the operational level there is still a lot to be done to make contract farming work effectively. Particularly, issues of transparency and a clear understanding of terms of the contract by the farmers need to be clearly spelt out. Strengthening the capacity of producer organizations to assist farmers to market their produce collectively deserves due attention. Most farmers sell their produce individually which has made them very prone to prices dictated by middlemen. Producer organizations will increase farmers’ bargaining power and reduce marketing costs. Processing of cassava into grit to be sold as an intermediate product for processing flour has already begun in the regions. Cassava being a bulky and perishable commodity, processing units should either be located near the farms or the cassava has to be processed e.g. into chips or grit to reduce on its bulkiness and perishability before it is transported to processing units. This is a good marketing strategy for farmers to process their cassava and can therefore either sell it as an intermediate product to distant places since it becomes less perishable and/or can be stored for a longer period.

49

50

4. RECOMMENDATIONS Based on its analysis of the cassava marketing chain in Ghana, the team came up with some insights which require stakeholders to look into (Figure 4.1). Research work done in Ghana indicates that it is feasible to substitute wheat flour by HQCF for bakery, glue extender and other products. Using the information available on the substitution rates, potential demand for HQCF regionally and nationally in Ghana need to be established. Issues of scale of operation and organization of supply of raw material supply are areas that need focusing to transform cassava into a competitive industrial crop. Figure 4.1: Stakeholders and linkages required for analysing the cassava market chain

4.1 Potential of substituting wheat flour by HQCF In establishing the potential for substituting wheat flour by HQCF the issues concerning consumer preferences particularly on food products have to be analysed and methods to promote cassava based food products be developed. It is hoped that by promoting cassava products a demand can be created to drive the supply of cassava raw material for processing to flour. The stakeholders who can be involved in the promotion of cassava products are the processors of cassava flour food products, policy makers in conjunction with relevant ministries such as Ministries of Health, Education, MoFA, Information and NGOs. The involvement of these stakeholders would be promotion of cassava products from grass-root level. In the non food industry potential demand from the timber and, paper industry needs to be evaluated. At the level of non food industrial use of cassava flour the stakeholders who can act on the analysis are the policy makers, Researchers economists , processors of fresh

Supply

Flour for bakery products

Processed products

Flour for glue extenders

Costs of operation Scale of operation

Quantity Quality Price

Processing of cassava

Demand Gari

Organisation of supply Producer organisations

Cassava production

Consumer preference

Financial incentives?

Analysis into: Demand for flour for

glue extenders and adhesives Demand for gari fortification

Analysis into: Promoting cassava

based products

Analysis into: Primary processing for

grit Contract farming

Analysis into:Establishment of medium

scaleImport substitution?

Analysis into: Policies to reducing imports

of wheat flour Analysis into: PSI supporting medium

scale

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cassava and end users of cassava flour. The analysis for both food and non-food industrial use of cassava flour should also establish reliability of the supply of raw materials to sustain this demand. Research into policy incentives for establishment of cassava based import substitution industries could also greatly reduced the bulk of wheat imports into the country. 4.2 Scale of processing In the regions studied the processing of cassava flour is at micro-scale of operation and indicators show that these units are not profitable. In order to ensure supply of HQCF there is need to analyse the scale of operation that is profitable. Lessons learnt from the Eastern Region show that medium scale enterprise can be profitable. However, there is need to assess profitability of large scale processing units before stakeholders settle on the scale of operation suitable for the demand of HQCF. Issues that also need further analysis are those concerning intermediary processing units for grit supported by medium to large scale finishing and packaging factories. Tied to the scale of operation are ownership models that are suitable for the right scale of operation need to be assessed. On the scales of operation the NBSSI, PSI RTIP, processors of cassava and potential end users of cassava can determine the processing scales that can drive the cassava flour market chain. Once the scales of operation have been established, mechanisms to finance start up of processing units need to be assessed and finance incentives developed to attract the entrepreneurs into cassava flour processing. 4.3 Organization of supply Reliable supply of raw material particularly in the case of cassava remains a key issue as it has implications on both the quantity and quality of cassava flour produced. The key issues have been transport issues mainly affected by poor feeder road conditions and limited number of appropriate haulage vehicles. One way of ensuring reliable supply of raw material is Contract Farming. Lessons learnt from Ayensu factory and contract farming in tomatoes indicate that at operational level there is still a lot to be done to make contract farming work effectively. Training of farmers to understand the concepts, practices of contract seem to be one major area that needs attention. Issues that need attention relate to transporting the perishable cassava raw material to the processing units. Issue of strengthening the capacity of producer organization need attention as well. The stakeholders who can play a vital role in this aspect are RTIP, MOFA, NGOs, Farmers and Researchers (especially economists). These stakeholders may together develop mechanisms that will keep farmers in production by ensuring an efficient production and delivery of raw material.

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REFERENCES Annual Report 2003, Root and Tuber Improvement Programme

Anon, 2004. 2004 manual, Ayensu Starch Company,

Anon, 2004. http://starch.dk/isi/market.htm

Anon, 2004. http://www.starch.dk/isi/starch/tmstarch.htm

Anon, 2004. Industrialists must increase capacities, competativeness Daily Graghic, June

Anon, 2004. RTIP Fact sheet

Cecil J.E., 2004. Private communication

Dzedzoave et al., 2002.Training manual for the production of glucose syrup. National Board

for Small Scale Industries, Accra, Ghana.

Dziedzoave N.T., Graffham A. and Boateng E.O. 2000. Training manual for the Production

of cassava based bakery products

FAO, 2003. Production Year Book

Ghana Export Promotion Council undated Figures on Export of Cassava Products (2004)

Ghana Export Promotion Figures on Export of Cassava Products (2004)

Ghana Standards Board (undated). Specification for Gari, 237:2003 pp 1-4

Ghana Statistical Services, 2000

Graffham ,A., Klein U., Nabawamuka J.,Wanda, K., Kalunda, P. and Ntibarikure, G., 2000.

Industrial markets for starch-based products – an assessment of the industrial potential for

cassava in Uganda. Natural Resources Institute, UK, Food Research Institute and Kamlala

Agriculture Research Institute-Uganda

Graffham et al., 1999. Expanded markets for locally produced cassava flour and starch in

Ghana. Natural Resources Institute, UK and Food Research Institute, Ghana

Graffham et al., 2000 Industrial markets for starch-based products – an assessment of the

industrial potential for cassava in Uganda. Natural Resources Institute, UK, Food Research

Institute and Kamlala Agriculture Research Institute-Uganda

Graffham, A.J., Dziedzoave N.T. and Ayernor G.S. 1999. Expanded markets for locally

produced cassava flour and starch in Ghana. Natural Resources Institute, UK and Food

Research Institute, Ghana

http://www.fao.org/docrep

Kantaka S. 2004. Cassava can replace cocoa in Ghana. Daily Graghic, May 11-12

MOFA Ashanti (undated) Prices of Gari 2002-2004

MOFA Ashanti (undated). Cropped area for major crops in the Ashanti Region (1999-2000)

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MOFA Ashanti, Prices of Gari 2002-2004

National Board for Small Scale Industries, Accra, Ghana.

Population Statistics 2004. World Population

PPMED (Agric. Statistics & Census Div.) 2001, and MOFA Ashanti 2003

RTIP, 2004. Cassava Crop Budget

RTIP, 2002. Varietal characteristics of four improved cassava varieties RTIP Fact sheet No. 1

RTIP, 2003 . RTIP/MOFA fact Sheet

RTIP, 2003. RTIP/MOFA Annual Report (Jan-Dec 2003

SIRD , 2003. Production of major crops in the Brong Ahafo Region -2002

SIRD , 2004. Production of major crops in the Brong Ahafo Region

Specification for Gari, Ghana Standards Board 237:2003 pp 1-4

Sriroth K. et al., 2002. Modification of cassava starch in Thailand. International Starch

Convention, Cracow, Poland, 11-14 June, 2002

Sriroth, K., Kuakoon, P., Sagseethong, and Oates, C. 2002. Modification of cassava starch

in Thailand. International. Paper presented at X International Starch Convention, Cracow,

Poland, 11-14 June, 2002

Statistical Service of Ghana, 2004. Unpublished data.

Statistical Services, Ghana, 2004.

Statistics, Research and Information. Directorate, MOFA March 2003 & Feb. 2004

TOR for field study

54

ANNEX 1: TERMS OF REFERENCE FOR DAEFM/FA-KNUST, MOFA/GTZ-SFSP, MOFA/RTIP AND ICRA JOINT FIELD STUDY IN THE ASHANTI AND BRONG AHAFO REGIONS OF GHANA

1. Institutional framework DAEFM/FA-KNUST The Department of Agricultural Economics and Farm Management (DAEFM) is one of the four departments of Faculty of Agriculture of Kwame Nkrumah University of Science and Technology. The Department offers training in agricultural economics and farm management, agricultural extension, rural sociology and other related areas, to undergraduate and graduate students. The Department maintains close linkages with national and international organizations including United Kingdom’s Department for International Development (DFID), Food and Agriculture Organization (FAO), German Agency for Technical Cooperation (GTZ) and the Ministry of Food and Agriculture (MOFA). This Department will host the field study team as part of a long-term partnership with the International Center for development-oriented Research in Agriculture (ICRA). MOFA-GTZ/SFSP The mission of the Ministry of Food and Agriculture (MOFA) is to promote sustainable agriculture, agribusiness and improved human livelihood through research and technology development as well as provide support to extension services. To accomplish this mission, its main functions, among others, have been to ensure food security, facilitate production of agricultural raw materials for industry and export and facilitate the establishment of sustainable processing and marketing systems. The Sedentary Farming Systems Project (SFSP) was initiated to develop and disseminate viable and sustainable land use and production systems through the Ministry of Food and Agriculture (MOFA) and collaborating NGOs. Target group and beneficiaries of this project are farmers, processors, traders and other people involved in agriculture. The project operates in the Brong Ahafo Region. Project executing agency is the Regional Agricultural Development Unit (RADU) of the Ministry of Food and Agriculture (MOFA). Implementation is mainly done through the 13 District Agricultural Development Units (DADUs) and its Agricultural Extension Agents (AEAs), but also through collaborating NGOs. GTZ (German Technical Cooperation) and DED (German Development Service) provide technical assistance in terms of advisory personnel, training and provision of equipment and material. In the area of Technology Development the project closely collaborates with National Research Institutions and Universities such as Crops Research Institute (CRI), Soil Research Institute (SRI), Savannah Agricultural Research Institute (SARI), Animal Research Institute (ARI), Food Research Institute (FRI), University of Science and Technology Kumasi (KNUST), and the Cape Coast University. The project also maintains links to regional and global networks such as African Conservation Tillage (ACT) and Sector Network Rural Development (SNRD). MOFA/RTIP The Ministry of Food and Agriculture (MOFA) is implementing the Root and Tuber Improvement Programme (RTIP) with a GOG/IFAD funding to the tune of US$10.1million.

55

It is the first of its kind with sole emphasis on roots and tubers in the country. RTIP has run for almost five years (1999 – 2003) now. The overall objective of the programme, which is national in scope, is to enhance food security and increase the incomes of resource-poor farmers on a sustainable basis by facilitating their access to improved and locally adapted technologies of root and tuber crops (cassava, yam, cocoyam, sweet potato, and “Frafra” potato). The programme has six components: Planting Material Multiplication and Distribution, Integrated Pest management, Adaptive Research, Community Support and Mobilisation, and Post-Production and Marketing. The success story of RTIP in increasing cassava production countrywide has resulted in post-production and marketing problems that RTIP intends to tackle in its possible second phase. ICRA ICRA is an international organisation founded on the initiative of European members on the Consultative Group on International Agricultural Research (CGIAR) to assist in Latin America, Africa and Asia to contribute effectively to agricultural and rural development. ICRA’s purpose is to “Enhance human and institutional capacities in agricultural research for development (ARD) and rural innovation processes” through collective action learning rooted in real “field” situations and problems, and aimed at sharing, consolidating and, where needed, generating new knowledge and developing new professional attitudes and skills for more effective research and development contributions to stakeholder innovation processes relevant to improving the livelihoods of resource-poor farmers and the broader needs of society. ICRA’s professional training provides participating scientists of agricultural and related disciplines and professionals in rural development with an opportunity to acquire new concepts and skills, and to apply them in a professional assignment with partner research institutes in the South. The core part of the ICRA program consists of 3 months intensive field study as a professional service to partners in rural areas of the developing countries. The scope and dimension of this study are based on the Terms of Reference (TOR) that are subject of the present document. 2. Period The field study will be conducted from April 9 to July 3, 2004. 3. Topic of the study.

Processing of agricultural produce: Assessment of constraints and opportunities of small, medium and large scale processing

of cassava in the Ashanti and Brong Ahafo Regions of Ghana

4. Justification Transformation of Ghana’s economy into a leading agribusiness and industrial country in sub-Saharan Africa by the year 2010 has been a key development objective of Ghana government since 2001. In Ghana, agriculture contributes 60% to domestic product, 65% to employment and 50% to exports. Increase in agricultural production and productivity, and the subsequent

56

introduction of agro-based industries are seen as the engine for economic growth, generation of income, and creation of job opportunities. In the bid to increase agricultural production and ensuring food security, the government has formulated and implemented a number of projects and programmes. Notable amongst such interventions are the Root & Tuber Improvement Programme (RTIP) and the Presidential Special Initiative (PSI) on Cassava (Manihot esculenta). As a result, 2,000 ha of land were planted with improved cassava varieties giving a production of 9,862,000 metric tons in the year 2002. Production and processing of cassava for home food consumption Cassava is widely consumed, either processed or unprocessed in Ghana. In 1990 for example, per-capita consumption was 148 kg/head/year but this has increased to 151 kg/head/year in 2002 (MOFA, 1991 & 2003). In spite of increased in per-capita consumption, there was a surplus of 3,928,000 metric tonnes in 2002 alone (MOFA, 2003). With this surplus, coupled with perishability of cassava tubers especially damage after harvesting, a lot of the produce goes waste. MOFA estimated that 30% of agricultural produce goes waste, due to post harvest losses. With these constraints, many communities have developed processing and marketing strategies to either rapidly disperse fresh cassava tubers to consumers or convert them into dry staples that can be stored and transported. The main products obtained from cassava include fufu (mixture of cassava and plantain or yam), gari, cassava chips etc. These traditional systems have served communities well in the past. However, increasing urbanisation and changes in lifestyle, tastes and preferences, have made it more difficult for farmers and traders to deliver high quality product to meet domestic and export demands. To arrest this post-production problem, MOFA launched a strategy on food security, which was aimed at “good quality nutritious food, which is hygienically packaged and attractively presented. This was to ensure sufficient quantities all year round, and located at appropriate places at affordable prices. In response to this, a number of small to medium scale processing units have sprung up, some with support of institutions like the National Board for Small Scale Industries (NBSSI) and other Non-Governmental organizations (NGOs, like Adventist Development Relief Agency (ADRA), TECHNO SERVE, Opportunities Industrialisation Centre (OIC), etc. However, these units are poorly organized in terms of inputs acquisition, packaging, labelling and distribution to consumers on the domestic and international market (i.e Nigeria). Quality control measures are not used during the production process resulting in poor quality products, which often fetch low prices. Marketing is done individually and other marketing outlets are not explored. Technologies for processing fresh cassava exist, but little is known on how these are utilized to achieve their optimum efficiency. There is little linkage between research and small to medium scale units. Support to such units from the side of the government has been very limited and this has resulted in the collapse of many processing units. Many processors have often not used the right equipment for processing leading to low quality products. There is no mechanism for price negotiation and traders often dictate the price. Since there is no organized market outlet, the processors, many of whom are women, are forced to sell at relatively low prices. The by-products, which can be fed to animals’, are also left to go waste. This can be an additional source of income for the small to medium scale processors.

57

Production and processing of cassava for industrial uses In view of Ghana’s governmental objective to become a leading agribusiness and industrial country in sub-Saharan Africa by the year 2010, the Presidential Special Initiative (PSI) for cassava is supporting the installation of large scale processing units to produce starch for industrial use. Currently one such processing unit has been put in place in Badwuasi, Central Region. However, little is known about the competitiveness of cassava as industrial crop (raw material for industrial use) in the national and international markets. In fact, no reliable information exists about the existing and potential demand of this processed product: i.e. starch for the non-traditional food industry, the paper industry, for the textile industry, for wood products (ply wood), or large scale production of animal feed. In addition, are farmers able to supply the required quantity and quality of cassava for industrial purposes? Is a marketing system in place that provides for transportation of large scale cassava produce, for information about quantity and quality of cassava needed (different industrial purposes require specific quality of the raw material and therefore different varieties of cassava)? Indeed, the question is how good are the marketing linkages between the supply (farmers) and demand (medium to large scale processors) side of cassava for industrial purposes? Do processors contract out the in-time delivery of cassava to their processing units, providing for a steady operation of these units? Does this work or do processors produce the raw material on fields belonging to the processing unit (cassava plantations)? Do farmer form cooperatives to have a stronger position in the market? Does the market offer a competitive price for cassava at farm gate, both for home food consumption and as raw material for industrial purposes? Does the market offer a competitive price for the different processed products? For which new processed products are their new opportunities in the market? Do entrepreneurs have enough incentives (i.e. venture capital) to process cassava for industrial purposes? Do they have access to and knowledge of the necessary processing technology (i.e. equipment, water)? 5. Geographical area and target population The Brong Ahafo Region is one of the 10 Regions and is located in central/western Ghana, 7o–8o in North of the equator, with an altitude less than 300 m. It covers an area of approx. 40,000 km2 and has a population of about 2.0 Million, of which almost 70% is engaged in agriculture. Ashanti Region is located and shares border with the southern part of Brong Ahafo Region. The population is approximately 3.2 million. The region has cropping systems similar with Brong Ahafo Region. 6. Study area and Target group selection After a first reconnaissance survey and based on the study teams’ assessment of the communities where cassava is mainly produced and where processing units operate, they will choose for the study in close consultation with the monitoring group:

58

• Representative group of small, medium and large scale processors • Representative group of farmers in Ashanti and in Brong Ahafo Region who produce

cassava for processing for home food consumption • Representative group of farmers in Ashanti and in Brong Ahafo Region who produce

cassava for processing of raw material for industrial purposes • Consumers in open markets and supermarkets (at random) It is assumed, but not confirmed, that most of the processors can be met in Kumasi. 7. Team composition The team will be composed of one Ghanaian researcher, a post harvest and food technologist, and five expatriates. In addition to making a scientific contribution to the field study, the Ghanaian scientist will also be the counterpart of the field study. The disciplinary background of the expatriates will preferably be as follows: one or two agricultural economists, one agricultural engineer (preferably in processing), one agronomist (preferably plant physiology) and one rural finance specialist. The involved institutions will assist the team with specific complementary expertise if needed. 8. Objectives of the study The following objectives are to be achieved by this field study: 1. To identify and analyse the opportunities for processing cassava for industrial use

(demand and supply of raw materials, demand and supply of processed products for industrial use, etc.)

2. To identify and analyse the factors (organizational, economic, social, and technical) affecting the operations of small to medium scale processing units and to propose strategies and ways of increasing the profitability of such units

3. To formulate proposals for developing a viable processing of cassava for industrial use at medium and large scale

9. Form of the final product Before leaving Ghana, the team will produce and hand over a report with an executive summary, an abstract and a main text of not more than one hundred pages including figures and tables. In the report, maximum use will be made of visualization (graphics, pictures, boxes). The report shall be structured in a way that will make it simple and understandable. 10. Relevant stakeholder institutions The Ministry of Food and Agriculture (MOFA) and its Root and Tuber Improvement Programme (RTIP), GTZ-Sedentary Farming Systems Project (SFSP) and the collaborating departments of Kwame Nkrumah University of Science and Technology (KNUST) are the main clients of the study. Other institutions like Food Research Institute (FRI) Rural Enterprise Project (REP), Crops Research Institute (CRI) are also expected to use the results of the study.

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11. Field study process Upon arrival in Ghana, the team will, following a brief reconnaissance of the study area, present its field study research and work plans to all interested stakeholders in an introductory workshop in Kumasi. The purpose of this presentation is to enable the study team to receive feedback from the stakeholders on the proposed research plan and approach. The team shall organize regular feedback session with a monitoring group that will be formed prior to the team’s arrival. The monitoring group shall comprise of representatives of selected key stakeholders. Agricultural Extension Officers in their various operational areas would be requested to assist the team in their field data collection. A second meeting (or mid-term workshop) will be held halfway through the study period in Kumasi, at which time the team will present its early findings and its views on potential development strategies. Final results of the field study will be presented and discussed in final workshop, in Kumasi, involving all stakeholders. This workshop shall be held at least two weeks before the end of the field study to allow incorporation of useful comments into the final version of the draft report. The team will finally submit a final report containing their findings and recommendations to DAEFM before finally leaving Ghana. 12. Field study responsibility The team is collectively responsible to DAEFM/FA-KNUST, MOFA-GTZ/SFSP, MOFA/RTIP and ICRA DAEFM for respecting the terms of reference and for the use made of the resources that will be provided for the implementation of the field study. The Ghanaian participant in the team will be the team’s Liaison Officers to the monitoring group and the participating Ghanaian Institutions. Two staff members of DAEFM, Dr Bakang and Dr Ohene-Yankyera, will support the field study and join the team at four different phases of the study. At the beginning of the study, when the team is preparing the data collection, during the two visits of the ICRA Coordinator and near the end of the study, when the team is formulating its recommendations. The team is responsible for its own internal management. Within the limits specified in the terms of reference and in the budget, the team is free to decide its own approach, methodology, tools and work plan, as well as the use they make of the resources provided for the field study. Important questions concerning the terms of reference (TOR) arising during the implementation of the field study will be immediately clarified in a discussion with DAEFM and other partner institutions. 13. Means DAEFM and ICRA are responsible for the provision to the team of the means specified in the Memorandum of Understanding (MOU).

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ANNEX 2: STAKEHOLDER ANALYSIS Stakeholders and their activities Stakeholder Activities The Root and Tuber Improvement Project

implementing a developmental programme on root and tuber crops

The Ministry of Food and Agriculture

the main implementing body for agricultural policies

Forestry Research Institute of Ghana

carrying out research into the use of cassava flour as a substitute for wheat flour in collaboration with some plywood industries

The Food and Drugs Board responsible for certifying food products and the processing units

Ghana Standards Board responsible for the certification of food products and the processing unit as well as enforce standards for food products

The Environmental Protection Agency

responsible for enforcing management of effluent/waste discharge from processing units

The Presidents Special Initiative on Cassava

implementing a large scale cassava starch processing

Farmers (large scale/small scale)

producers of cassava for the processing units

Processors primary and intermediary, processors of cassava into various products

End- users (plywood industry, bakers, consumers)

use cassava products

Transporters provide transport services for both producers and processors

Crop Research Institute collaborate with RTIP for research into the development of crop varieties and related characteristics

Credit Support Institutions provide credit for farmers/processors for their enterprises The Food Research Institute collaborate with RTIP on product development for cassava

products Equipment Manufacturers manufacture and sell equipment for processing operations The Ghana Export Promotion Council

supports the export of food products etc

NBSSI provides support for small scale industries in terms of training through seminars, provide linkage between small scale industries and credit schemes, etc

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Stakeholders and their linkages

Strategies for curbing Gov’t. Dev. Problems with

Transforming Small – Medium scale

cassava Processing units

post harvest losses Processing units

Technologies -Production(varieties…) -Processing equipment

Quality demandurbanization

Industrial and Food products

Institutional support

Surplus production, Training

Quality,specification, Sanitation, regulatory

Cassava raw material

Marketing system Quality, quantity, prices, timeliness

Object.,

ProcessorMOFA/GTZ/SFS

MOFA/ RTIP

Researcher/ Extensionist

ConsumeWood, paper industry,

Bankers, NGOs, private sector Transporters,

traders

Farme

Ghana’s Gov’t.

FDB, GSB

Environmental concerns

EP

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ANNEX 3: RESEARCH QUESTIONS Primary question: What is the potential for producing flour for industrial (starch) & food use and Gari for food, from cassava, and the

potential for realizing this in Brong Ahafo and Ashanti Regions of Ghana?

63

Secondary Questions Tertiary Questions Hypothesis (Potential

answers) Expected analytical outputs

- Who is demanding Flour for food

- Who is demanding Gari - Where do they obtain

their flour from? - Where do they obtain

their Gari from? - What type (quality

specifications) of flour for food do they require?

Figures on production and sales trend, and info on current and potential buyers Figures on: - Quantities to the two outlets - Costs (of both Gari and substitute products). I.e. both

export price and domestic market price. - Info and figures on fortifying gari with Soya - Hygienic aspects - Presentation/packaging issues

- What type (quality specifications) of gari do they require?

- What quantity of flour for food/gari they need?

- What price do they pay for flour?

- What price do they pay for gari?

- What is the current demand in Brong Ahafo and Ashanti Regions for flour for food / Gari?

- What is the potential demand in Brong Ahafo and Ashanti Regions for flour for food / Gari?

- Which factors influence demand for flour for food / Gari?

11. There is a potential domestic and international (Nigeria) market for locally (Brong Ahafo and Ashanti Regions) processed food (gari) from cassava.

12. There is a changing behaviour in food habits with urbanisation/jobs:

Figures on quantity of flour required by 2 bakeries - Extrapolate potential - Helps estimate scale of operation needed for bakeries Figures on quantity of bakery products sold Info on type of bakery products produced, type of flour and percentage of different flour used. Potential for substituting wheat flour with cassava flour. If not prepared to use cassava flour, why? Delivery of cassava flour to expensive? Not availability in the required quantities? Etc

64 Secondary Questions Tertiary Questions Hypothesis (Potentialanswers)

Expected analytical outputs

- Who is demanding Flour for industrial use?

- Where do they obtain their flour from?

- What type (quality specifications) of flour for industrial use do they require?

- What quantity of flour for industrial use do they need?

- What price do they pay for flour?

Figures on quantity of flour required by glue & adhesives makers/users - Extrapolate potential - Helps estimate scale of operation needed by

industries Figures on quantity of b glue & adhesives sold Info on type of glue & adhesives produced, type of flour and percentage of different flour used. Potential for using cassava flour or/and starch Figures on price of different flour types (wheat, cassava, etc) If not prepared to use cassava flour, why? Delivery of cassava flour to expensive? Not availability in the required quantities? Etc.

- What is the current demand in Brong Ahafo and Ashanti Regions for flour for industrial use?

- What is the potential demand in Brong Ahafo and Ashanti Regions for flour for industrial use & Starch?

- Which factors influence demand for flour for industrial use?

13. There is a potential domestic market for locally (Brong Ahafo and Ashanti Regions) processed flour/starch from cassava.

14. There is a changing behaviour in food habits with urbanisation/jobs:

- non/less fermented Gari for international market and

- increased fermented Gari for domestic market.

Info on suppliers of flour for industrial use and their capacity Does supply meet demand?

- Who is processing cassava and where are they located?

- What is their current processing capacity?

- What is their potential processing capacity?

- What are the current costs of processing cassava for flour?

- What is the current situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Flour?

- What is the potential situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Flour?

- At what scale is cassava processing for flour a profitable enterprise?

- What are the factors influencing the operation and profitability of the enterprise

15. Delivery of fresh cassava to the processing units is in-efficient.

16. Processing technology is available.

17. Medium scale processing units (20-50 bags/day) of flour for convenience food/industrial use are profitable enterprises

- Figures on number of processing units and their respective potential and actual operating capacity.

- Processing scale - Figures on costs of operation - Profitability indicators If not operating at full capacity why? Could it be due to no/low demand, low price, ability to deliver raw materials - Figures on required supply of fresh cassava:

Quantity/Seasonality/ Transportation/Price/Quality (maturity, preferred varieties, general appearance, deformities).

- Info on suppliers of flour - Capacity of suppliers Does the supply meet demands? Relate processing scale to profitability

65

Secondary Questions Tertiary Questions Hypothesis (Potentialanswers)

Expected analytical outputs

- Who is processing cassava and where are they located?

- What is their current processing capacity?

- What is their potential processing capacity?

- What is the current situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Gari?

- What is the potential situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Gari?

- At what scale is cassava processing for gari a profitable enterprise?

- What are the current costs of processing cassava for gari?

1. Delivery of fresh cassava to the processing units is in-efficient

2. Medium scale processing units (200 bags/day) of gari are profitable enterprises

- Figures on number of processing units and their respective potential and actual operating capacity.

- Processing scale - Figures on costs of operation - Profitability indicators If not operating at full capacity why? Could it be due to no/low demand, low price, ability to deliver raw materials Figures on required supply of fresh cassava: Quantity/Seasonality/ Transportation/Price/Quality (maturity, preferred varieties, general appearance, deformities/not critical!). Relate processing scale to profitability

- Who supplies cassava and on what scale do these suppliers operate?

- How much do they supply

- What varieties do they supply for Flour, Gari, Starch?

- What is the current supply status of cassava as raw material in Brong Ahafo and Ashanti Region for Flour, Gari?

- What is the potential supply status of cassava as raw material in Brong Ahafo and Ashanti Region for Flour, Gari and starch?

- What price do they get?

From secondary data: (reports & key informants, RTIP, CRI): - Production figures - surplus? - Cost of production at farm level / ha - Farm gate prices (actual and averages) Possibility for contract farming. Conditions for contract farming (what needs to be in place?). Average prices? Constraint on supply of raw material (lessons from tomato factory in Wenchi) Compare data with maize

- What is the potential situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Starch?

- What would be their potential processing capacity?

Compare operations of Ayensu and S-M scale processing units with regard to supply/transportation of raw materials

1. Fluctuating prices throughout the year make delivery of fresh cassava to processors unstable and affect their operations

2. If producers organise themselves they can get better prices.

3. High up-rooting costs in dry season

- Figures on Ayesu’s installed capacity and actual operating capacity.

- Figures on costs of operation - Profitability indicators If not operating at full capacity why? Could it be due to no/low demand, low price, ability to deliver raw materials

66 Secondary Questions Tertiary Questions Hypothesis (Potentialanswers)

Expected analytical outputs

Figures on required supply of fresh cassava: Quantity/Seasonality/ Transportation/Price/Quality (maturity, preferred varieties, general appearance, deformities).

- What are the current costs of processing cassava?

Relate processing scale to profitability. - At what scale is cassava processing for starch a profitable enterprise?

- What are the factors influencing the operation and profitability of the enterprise

Secondary Questions Tertiary Questions Information needs Target stakeholders Methods/Tools

- Who is demanding Flour

- Who is demanding Gari

Industries who use flour: - Nsawam, 1 bakery - Kumasi, bakeries - Sunyani, plywood

industries - Kumasi, plywood

industries - Where do they obtain their

flour from? - Where do they obtain their

Gari from?

Industries, names and locations

Cassava processors in Techiman and Kumasi

Key informants, SSI

- What type (quality specifications) of flour do they require?

Specifications Industries

1. What is the current demand in Brong Ahafo and Ashanti Regions for flour for food and industrial use/ Gari?

2. What is the potential demand in Brong Ahafo and Ashanti Regions for Flour for food and industrial use/ Gari & Starch?

- What type (quality specifications) of gari do they require?

Fermentation level, Colour, Crispiness

Consumers

Market flows (chart) indicating source, quantities, quality & prices

67

Secondary Questions Tertiary Questions Information needs Target stakeholders Methods/Tools - What quantity of flour/gari

they need? No. of bags per day (unit?)

- EPC, Market, if possible distributors

- What price do they pay for flour?

Price per bag / unit Industries,

- What price do they pay for gari?

Price per kg? Consumers

- Which factors influence demand for flour / Gari?

Scale of processing. Environmental hazards

Check with: NBSSI, EPA, GSB; FRI, Ministries, GEPC, MOFA (RTIP)

- Who is processing cassava and where are they located?

Processors, names and locations

- What is their current processing capacity?

- What is the current situation in Brong Ahafo and Ashanti Regions in the cassava processing sector for Flour, Gari & Starch?

- What is the potential situation in

Brong Ahafo and Ashanti Regions in the cassava processing sector for Flour, Gari & Starch?

- What is their potential processing capacity?

Tons

Processors of raw material: - Techiman, 3 Gari; 1

flour; - Mampong, 1 Gari &

Flour - Accra, Motherwell,

1 flour - Ayesu

Key informants, SSI

- What are the current costs of processing cassava?

Gross margin?

- What are the main items to include in the cost calculations?

For flour: raw material (cassava), equipment, labour (washing, gritting, peeling, pressing, milling, drying, sheaving), power, water, transportation For Gari: raw material (cassava), equipment, labour (peeling, roasting, loading, pressing), power (fuel), packaging, transportation

Cassava processors in Techiman and Kumasi

- Profitability analysis /gross margins

- Scenario analysis

- At what scale is cassava processing a profitable enterprise?

- What are the factors influencing the operation and profitability of the enterprise

• Effluent • Peels • Hygienic

Check with: NBSSI, EPA GSB; FRI Ministries, GEPC

Key informants, SSI

68 Secondary Questions Tertiary Questions Information needs Target stakeholders Methods/Tools conditions MOFA (RTIP)

- Who supplies cassava and on what scale do these suppliers operate?

Farmers Plantations Traders

Techiman, 2 F/G Mampong, 1 F/G Mampog, 1 FG BA, learn lesson - contract farming – tomato BA/AR, Flour from chips; farmers & processors

- How much do they supply Tons per ha

Market flows (chart) indicating source, quantities, quality & prices

- What varieties do they supply for Flour, Gari, Starch?

Type of varieties Key informants

- What is the current supply status of cassava as raw material in Brong Ahafo and Ashanti Region for Flour, Gari?

What is the potential supply status of cassava as raw material in Brong Ahafo and Ashanti Region for Flour, Gari?

- What price do they get? Tons per ha?

Farmers, Plantations, Traders

- What are the current costs of production?

Gross margin per ha Farmers - Crop budgets - Under what conditions is cassava production profitable?

- What are the factors influencing the profitability of cassava production?

- Profitability of Maize - Organisations in place, their activities, results - Failure of previous org. set-ups

- What is the potential supply of cassava as raw material for flour, Gari, Starch?

- Which factors influence the prospects of medium / large scale production enterprises?

Marketing chain Check with: processors, farmers

SWOT analysis, to provide a summary for conclusions and recommendations

ANNEX 4: FIELD STUDY WORK PLAN

69

When Who What How WhereWeek 1 (12 – 16 April)

Team - Travel from Accra to Kumasi By car Monday 12 Team - Arrange for meals and laundry services

- Discuss and take decisions on time for meals, and meal preparation

Guest House B

Tuesday 13 Paulina - Familiarise expatriate team members with KNUST campus and Kumasi

Guided tour to locate places for important services

Kumasi (town + campus)

Wednesday 14 Team - Pay courtesy call to Vice-Chancellor KNUST, Dean FA, Acting Head + staff DAEFM

KNUST Campus

Team - Identify Monitoring Group Meet Andivi and Kwasi to discuss modalities

KNUST-DAEFM

Paulina - Prepare vehicle movement schedule Use timetable of activities

Team - Plan for reconnaissance survey of study area Consider locations and time for transects, villages communities and Research institutes

Guest House B

Thursday 15

Sukhpal - Review Accounts Updated accounts schedule Use updated printout ICRA team Office Team - Reconnaissance survey (Morning) RTIP,CRI, FRI – all in

Kumasi Friday 16

Team - Plan for meeting with monitoring group Guest House B Week 2 (19 – 23 April)

Team - Do Study sites & target group selection - Decide on expected outputs of FS

Agree in meeting with Monitoring Group

KNUST-DAEFM Monday 19

Team - Incorporate feedback on research plan - Clarify research problem

Guest House B

Sub-group - Collect crop/commodity statistics RTIP and Agric Office Tuesday 20 Team - Adjust field study plan Gust House B

70 When Who What How WhereWednesday 21 Subgroups - Refine research questions

- Analyse secondary data

Thursday 22 Subgroups - Draw-up checklist, interview guides/questionnaires

Friday 23 Subgroups - Collect data for cassava flour uses FOREG, CRI, Feed Mill

Week 3 (26 – 30 April) Monday 26 Team - Do reconnaissance survey (Visit GTZ, farms and

small scale processors) Brong Ahafo Region

Tuesday 27 Team - Prepare introductory workshop Task division and Rehearsals

Wednesday 28 Team - Present team’s understanding of TOR for FS in an Introductory workshop

Conference HallKNUST

Thursday 29 Team - Incorporate feedback received in the w/shop - Review Research questions - Review and update the plan for the next week

Guest House B

Friday 30 Subgroup B - Collect data on demand for starch and reorganise for sharing

Plywood Industry

Week 4 (3 – 7 May)

Subgroup A - Collect data on demand for starch in textile Industry

Textile Industry Monday 3

Subgroup B - Collect data on demand for Animal feed Industry

Animal feed Mill Tuesday 4 Team - Share outputs from data collected on demand for

starch/flour/chip Plenary presentations

Subgroup A Soft drinks processing factory

Wednesday 5

Subgroup B

- Collect data on demand for starch in non-traditional food Industry

Pharmaceutical industry

Thursday 6 Team - Share outputs for data collected on demand for starch in non traditional food industry

Plenary presentations Guest House B

Friday 7 Subgroup A - Collect data on demand for starch in Paper Industry

Paper Industry

71

When Who What How Where Team - Revise plan for the following week(s) Pin-board, cards, flip-

charts. Guest House B

Week 5 (10 – 14 May) Subgroup A Subgroup B Subgroup A

Monday 10

Sub group B

- Collect data on Starch processing Industry, Contract farmers, and Non-contract farmers

Brong Ahafo

Tuesday 11 Team - Share outputs from data collected on ….. Plenary presentations Subgroup A - Collect data on …….Large-scale /organised

Cassava transporters Wednesday 12

Thursday 13 Subgroup B - Collect data on small-scale and medium Cassava

transporters

Friday 14 Whole team - Share outputs from data collected on ….. Plenary presentations Week 6 (17 – 21 May) Monday 17 Team - Do data analysis Visualise main results

on flip-charts Tuesday 18 Imelda and Peter - Brief Juan (reviewer) Oral report Wednesday 19 - Revise and adjust research plan and focus of the

study Thursday 20 - Formulate detailed report outline and agree on

authors of the different chapters of the report

Pin-board, cards, flip-charts.

Friday 21

Team + Juan

- Formulate detailed plan/ timetable for the rest of the field study period.

- Discuss field study accounts and budget requirements for remaining 6 weeks of the FS

Excel spreadsheet

- Formulate the main issues for the report. Each team member according to report outline

Saturday 22 Team

- Prepare and discuss data analysis sheets for each expected output.

Flip-charts

Guest House B

Week 7 (24 – 28 May) Monday 24 (free) Tuesday 25 (Public holiday). Subgroups travel to Sunyani and Accra respectively

72 When Who What How Where

Sukhpal, Quynh, Paulina

- Processing costs of flour - Demand for flour by bakeries (Quantities &

prices) - Costs of operation large factory, - Organization of raw material delivery for large

factory

- Motherwell farms - Nsawam bakeries - Bawdjwasi starch

factory

Wednesday 26 Thursday 27 Friday 28

Peter, Imelda, Maggy

- Processing costs of flour & Gari - Demand for flour for glue (Quantities & prices) - Demand for Gari (Quantities & prices

- Plywood industry (Oti Yeboah Co. Ltd)

- Gari market - B/Ahafo processors

of flour & Gari Week 8 (31 May – 4 June)

Sukhpal, Quynh, Paulina

Factors influencing cassava processing

Ministries, GSBoard,GEPC, FRI

Monday 31 Tuesday 1

Peter, Imelda, Maggy

- Contract farming - Environmental factors influencing - Venture capital for processing

Wenchi, tomatocontract farmers, EPA, NBSSI

Peter, Imelda, Maggy

- Demand for flour for glue (Quantities & prices) - Demand for Gari (Quantities & prices) - Demand & supply costs of cassava chips

Plywood KumasiGari market Kumasi Mampong, chips/farmers

Wednesday 2 Thursday 3 Friday 4

Sukhpal, Quynh, Paulina

- Demand for flour by bakeries (Quantities & prices)

- Cassava & Maize production costs

From key informants Secondary data

Bakery Kumasi CRI, RTIP, Farmers in Ashanti Region

Week 9 (7 – 11 June) Monday 7 Tuesday 8

Team’s holiday

Wednesday 9 Team according to assigned tasks

- Feedback session on data analysis sheets (1/2 day)

Guest house B

73

When Who What How Where

Thursday 10

- Writing chapter 4

Team + Monitoring group

- Feedback session with monitoring group

Friday 11

- Reading & feedback on chapter 4 Saturday 12

Team according to assigned tasks - Incorporating feedback on chapter 4

Week 10 (14 – 18 June) - Writing chapters 1, 2 & 3. Finish Chapter 4 - Reading & giving feedback on chapters 1, 2, 3

& 4 - Incorporating feedback on chapters 1, 2, 3 & 4 - Writing chapter 5 Juan arrives on Wednesday 16.

Monday 14 Tuesday 15 Wednesday 16 Thursday 17 Friday 18

Team according to assigned tasks

Draft report ready on Friday evening

Guest house B

Saturday/Sunday 19-20: Juan reads draft report Week 11 (21 - 25 June) Monday 21 Juan Comment on draft report

Authors with Juan

Incorporate feedback Tuesday 22

Paulina Send out invitation for final workshop Wednesday 23 Authors with

Juan Incorporate feedback

3 team members Start preparing presentation for final workshop

Guest house B

Thursday 24 all May participate in DAEFM workshop Conference Hall

Thursday 24 Start editing report (3-4 days): Check for

consistence & coherence, spelling & grammar, numbering of figures, tables, graphics, table of content, citations & references

Friday 25

Team according to assigned tasks

- Editing report - Preparing presentation - Photocopying draft report

Guest house B

74 When Who What How Where - Circulating draft

Week 12 (28 June – 2July) 3 team members Writing Executive summary (5 pgs), Abstract (1/2

pg), Acknowledgements Monday 28

3 team members Preparing presentation

Guest house B

Final workshop Tuesday 29

Farewell party

Wednesday 30 Juan departs. Team wraps-up Thursday 1 Friday 2

Team holidays

Saturday 3 July 5 team members leave for Wageningen Paulina, Andivi and Kwasi leave for Wageningen