FEASIBILITY OF CASSAVA INDUSTRIALISATION IN ??2017-04-18FEASIBILITY OF CASSAVA INDUSTRIALISATION IN...

download FEASIBILITY OF CASSAVA INDUSTRIALISATION IN ??2017-04-18FEASIBILITY OF CASSAVA INDUSTRIALISATION IN UGANDA A STRATEGIC STUDY A. GRAFFHAM, ... 1.0 INTRODUCTION ... All pictures used

of 73

  • date post

    14-Mar-2018
  • Category

    Documents

  • view

    214
  • download

    2

Embed Size (px)

Transcript of FEASIBILITY OF CASSAVA INDUSTRIALISATION IN ??2017-04-18FEASIBILITY OF CASSAVA INDUSTRIALISATION IN...

  • Feasibility and Market for Cassava Industrialisation in Uganda: A Strategic Study Confidential February 2017

    FEASIBILITY OF CASSAVA INDUSTRIALISATION IN UGANDA

    A STRATEGIC STUDY

    A. GRAFFHAM, LIANG GUOTAO, U. KLEIH, F. ALACHO, G. OKELLO, & A. AKULLU

    FEBRUARY 2017

  • Feasibility and Market for Cassava Industrialisation in Uganda: A Strategic Study Confidential February 2017

    Table of Contents ACKNOWLEDGEMENT ............................................................................................ 4 GLOSSARY ................................................................................................................. 5 EXECUTIVE SUMMARY ........................................................................................... 6 1.0 INTRODUCTION .............................................................................................. 9 2.0 CURRENT STATUS OF CASSAVA IN UGANDA ................................... 11

    2.1 GEOGRAPHY OF UGANDAS CASSAVA ECONOMY ......................................... 11 Labor and economic returns ....................................................................... 13

    2.2 HOUSEHOLD FOOD SECURITY VERSUS INDUSTRIAL COMMODITY ................. 15 3.0 MARKET OPPORTUNITIES FOR CASSAVA AND OTHER STARCH-BASED PRODUCTS ................................................................................................ 18

    3.1 NATIONAL MARKETS ...................................................................................... 18 3.2 IMPORTS ........................................................................................................ 20

    3.2.1 Ethanol ................................................................................................... 20 3.2.2 Sugar Syrups .......................................................................................... 21

    3.2.3 Starches .................................................................................................. 23

    3.3 REGIONAL AND INTERNATIONAL MARKETS .................................................... 24 3.3.1 Global trade in cassava ......................................................................... 24 3.3.2 Growth opportunities for cassava products ........................................... 25 3.3.3 Kenyan Markets for Fast Moving Consumer Goods (FMCG) and Animal Feed ......................................................................................................... 26

    3.4 CASSAVAS COMPETITIVE POSITION AGAINST OTHER SOURCES OF STARCH 31 3.5 SUMMARY OF POTENTIAL MARKETS .............................................................. 33

    4.0 LARGE-SCALE PROCESSING OF CASSAVA ...................................... 35 4.1 TECHNOLOGIES & PRODUCTS ....................................................................... 35

    4.1.1 Dry chips ................................................................................................ 35

    4.1.2 Hard pellets ............................................................................................ 35

    4.1.3 High quality cassava flour (HQCF) ...................................................... 36 4.1.4 Native and modified starches ................................................................. 38 4.1.5 Sugar syrups........................................................................................... 39 4.1.6 Industrial & Extra neutral alcohol ........................................................ 40

    4.2 LOCATION OF PROCESSING UNIT ................................................................... 40 4.3 RAW MATERIAL SUPPLY ................................................................................. 42

    5.0 COMPETITIVENESS AND INNOVATION................................................. 50 5.1 EXPLOITING INNOVATION IN CASSAVA INDUSTRIALISATION .... 50 5.2 LESSON LEARNING FROM CASSAVA INDUSTRIES OUTSIDE UGANDA ............ 50 5.3 LESSON LEARNING FROM PREVIOUS UGANDAN INVESTMENTS IN INDUSTRIAL PROCESSING OF CASSAVA ....................................................................................... 53

    5.4 CREATING & SUPPORTING A COMPETITIVE ADVANTAGE ............................... 53 6.0 BUSINESS AND FINANCE ......................................................................... 55

    6.1 FISCAL ASPECTS ............................................................................................ 55 6.2 SOURCES OF FINANCE ................................................................................... 56

    7.0 POLICY AND INSTITUTIONS ..................................................................... 59 7.1 ROLE OF GOVERNMENT IN SUPPORTING CASSAVA INDUSTRIALISATION ....... 59 7.2 CREATING AN ENABLING ENVIRONMENT ....................................................... 59 7.3 STIMULATING INVESTMENTS IN CASSAVA INDUSTRIALISATION ...................... 59

  • Feasibility and Market for Cassava Industrialisation in Uganda: A Strategic Study Confidential February 2017

    8.0 OUTLINE OF PROPOSALS FOR LARGE-SCALE INVESTMENTS IN CASSAVA .................................................................................................................. 62

    8.1 GENERAL THOUGHTS ..................................................................................... 62 8.2 SPECIFICATIONS OF THE FACTORIES ............................................................ 63 8.3 ESTIMATED INVESTMENT SCALE .................................................................... 63 8.4 ANTICIPATED BENEFIT .................................................................................... 65

    9.0 CONCLUSIONS AND RECOMMENDATIONS ........................................ 67 10.0 ANNEXES.................................................................................................... 73

    ANNEX 1 - PRELIMINARY DESIGN FOR 20TPD HQCF & STARCH PLANT IN UGANDA.................................................................................................................................. 73

    ANNEX 2 - PRELIMINARY DESIGN FOR 100TPD GLUCOSE PLANT IN UGANDA ....... 73

  • Feasibility and Market for Cassava Industrialisation in Uganda: A Strategic Study Confidential February 2017

    ACKNOWLEDGEMENT The research team was multi-institutional and reflected the collaborative spirit and partnership between Uganda, China and the United Kingdom. The team consisted of Andrew Graffham (technologist) and Ulrich Kleih (economist) of the Natural Resources Institute (NRI) of the University of Greenwich in the United Kingdom, Francis Alacho, Gloria Okello & Audrey Akullu of the African Innovations Institute (AfrII) based in Uganda and Liang Guotao of Acro Bio-Tech Company Ltd in China. The authors would like to thank all of the government and private sector personnel across Uganda for their unstinting efforts, hard work and true friendship that made the fieldwork in Uganda not only highly productive but most enjoyable as well. We cannot mention all persons by name as they are too numerous but we wish to offer our special thanks and gratitude to all the personnel of Uganda Revenue Authority, Uganda Development Bank, Uganda Development Corporation, Uganda Investment Authority, Farm Uganda, Riham Foods, Uganda Breweries, KLUL Distillers, Ntake Mill & Bakery, Windwood Millers (Lira), Landmark Millers (Soroti) and all the farmers and extension staff across Uganda who gave up their time to discuss production and processing of cassava. Without the help and friendship of these people the AgriTT research mission to assess the feasibility for large-scale industrialisation of cassava would not have been successful. Special thanks go to the Department of International Development (DFID) of the UK for funding the work and to the Ministry of Agriculture, Animal Industries & Fisheries (MAAIF) of the Government of Uganda for providing excellent support and cooperation at national and district level. We would also wish to thank the Foreign Economic Cooperation Centre of the Ministry of Agriculture of the Peoples Republic of China. Picture Credits Title page: Production of cassava-based ethanol at KLUL distillers in Lira. All pictures used in this report were taken by Dr Andrew Graffham of the Natural Resources Institute, United Kingdom. Exchange Rates: US$1 = 3,380 Ugandan Shillings (UGS) Exchange rates correct as of 31st October 2016

  • Feasibility and Market for Cassava Industrialisation in Uganda: A Strategic Study Confidential February 2017

    GLOSSARY AfrII African Innovations Institute AgriTT Agricultural Technology Transfer Project BOI Bank of Investment (Nigeria) C:AVA Cassava Adding Value for Africa (Bill & Melinda Gates Foundation) CBSD Cassava Brown Streak Disease CMD Cassava Mosaic Disease CTAP Cassava Transformation for Agriculture Programme (Nigeria) DAO District Agricultural Officer DFID Department for International Development (UK Government) DLG District Local Government DPO District Production Officer DSIP Development Strategy & Investment Plan (GoU) EAAPP East African Agricultural Productivity Programme EAC East African Community ENA Extra Neutral Alcohol (potable ethanol) FG Farmer Group FCR Fresh Cassava Root FMARD Federal Ministry of Agriculture & Rural Development (Nigeria) GAP Good Agricultural Practice GoC Government of Peoples Republic of China GoU Government of Uganda HFS High Fructose Syrup HQCC High Quality Cassava Chips HQCF High Quality Cassava Flour HP Horse Power (1HP = ~0.746kW) IA Industrial Alcohol (non potable alcohol) ICM Integrated Crop Management IITA International Institute for Tropical Agriculture LG Local Government MAAIF Ministry of Agriculture Animal Industries & Fisheries (GoU) MC Moisture content MT Metric MT NA