Feasibility Study on Cassava Production in Nigeria

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7/4/2013 Feasibility Study on Cassava AXD 401 Assignment Compiled By: Ajibade Tolulope Samuel CPP/2009/011 Group 1

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If you want information on the feasibility study on cassava production in Nigeria and would like to check out the work compiled by someone on that topic, then you are free to check it out and make your own inferences....Although not completed, I would love to make it even better...Cost Benefit analysis of cassava is also there

Transcript of Feasibility Study on Cassava Production in Nigeria

Page 1: Feasibility Study on Cassava Production in Nigeria

7/4/2013

CPP/2009/011 Group 1

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BRIEF CONTENTS:

CHAPTER ONE: CASSAVA PRODUCTION IN NIGERIA

CHAPTER TWO: ANALYSIS OF THE PROCESSING INDUSTRY IN CASSAVA PRODUCTION

CHAPTER THREE: INDUSTRIAL CASSAVA STARCH PRODUCTION

CHAPTER FOUR: MARKETING ASPECT OF CASSAVA PRODUCTION

REFERENCES:

Reports from the International institute of tropical Agriculture (IITA) and some other Agri-cultural research institutes in Nigeria

Growing Cassava in Nigeria: produced by United states Agency for International Develop-ment

Producing garri from Cassava: Jointly produced by IITA, USAID, CTA, UPoCA

Google Search.

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SOME ACRONYMS AND ABBREVIATIONS

ADP Agricultural development program

ARCEDEM: African Regional Center for Engineering Designs and Manufacturing

CAMA Corportate Affairs Commission

CBN Central Bank of Nigeria

CTA Technical Centre for Agricultural and Rural Cooperation

DFID Department of International Development - United King-dom

EU European Union

FAOSTAT FAO Statistical Database

FIIRO Federal Institute of Industrial Research, Osodi

FMANR Federal Ministry of Agriculture and Natural Resources Nigeria

IDEAA Initiative for Development and Equity on African Agricul-ture

IFAD International Fund for Agricultural Development

IFPRI International Food Policy Research Institute

IITA International Institute of Tropical Agriculture

LGA Local Government Authority

NEPAD New Partnership for Africa’s Development

NNPC Nigerian National Petroleum Corporation

NRI Natural Resources Institute

PCU Projects Coordinating Unit

PRODA Product Development Agency

RTEP Root and Tuber Expansion Program

RUSEP Rural Sector Enhancement Programme

SAMEG State Agro-Processing and Market Expansion Groups

SCOR Supply Chain Operations Reference

UNAAB University of Agriculture Abeokuta - Nigeria

USAID United States Agency for International Development

, UPoCA The project: Unleashing the Power of Cassava in Africa

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CHAPTER ONE

CASSAVA PRODUCTION IN NIGERIA

1.1. INTRODUCTION

Cassava is a very important crop to Nigeria. Its comparative production advantage over other staples serves to encourage its cultivation even by the resource poor farmers. The crop’s pro-duction is generally thought to require less labor per unit of output than other major staples. Cassava is able to grow and give reasonable yields in low fertile soils. It is a good sta-ple whose cultivation if encouraged can provide the nationally required food security mini-mum of 2400 calories per person per day.

Recently, production figures ranked Nigeria as the leading producer of cassava in the world. In 2004, the estimated cassava output from Nigeria was approximately 34 million tonnes. This production performance has rated Nigeria as the largest cultivator of cassava in the world. This feat is sequel to the on-going cassava multiplication programme in the coun-try. In 2002, cassava suddenly gained prominence in Nigeria following the pronouncement of a presidential initiative on the crop.

The initiative was aimed at using cassava production as the engine of growth in Nigeria. In recent times, government has encouraged the use of the crop to produce a wide range of industrial products such as ethanol, glue, glucose syrup and bread. Recently, the Nigerian government promulgated a law, making it compulsory for bakers to use composite flour of 10 per cent cassava and 90 per cent wheat for bread production. The new regulation which came into effect, January 2005, stipulated that the large flour mills that supply flour to bak-eries and confectioneries must pre-mix cassava flour with flour.

However, cassava farms just like the other crop farms in Nigeria are the small-scale types which are characterized by very low productivity. The crucial issue in the Nigerian agriculture is that of low productivity. The problem of declining crop productivity in Nigeria is important. Despite all human and material resources devoted to agriculture, the productive efficiency for most crops still fall under 60 percent [5-7]. Farmers output must therefore be expanded with ex-isting levels of conventional inputs and technology. More than ever, farmers will have to pro-duce more efficiently: That is produce maximal output from a given mix of inputs or use the minimum levels of inputs for a given level of output.

1.2 CURRENT STATUS

Nigerian cassava production is by far the largest in the world; a third more than production in Brazil and almost double the production of Indonesia and Thailand. Cassava production in other African countries, the Democratic Republic of the Congo, Ghana, Madagascar, Mozambique, Tanzania and Uganda appears small in comparison to Nigeria’s substantial output

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By zone, the North Central zone produced over 7 million tonnes of cassava a year (1999 to 2002). South South produces over 6 million tonnes ayear while the South West and South East produce just less than 6 million tonnes a year. The North West and North East are small by comparison at 2 and 0.14 million tonnes respectively (Table 1).

Table 1 Cassava Production by Zone 2000-2002(Tonnes)

Region 2000 2001 2002

South West 4 993 380 5 663 614 5 883 805

South South 6 268 114 6 533 944 6 321 674

South East 5 384 130 5 542 412 5 846 310

North West 2 435 211 2 395 543 2 340 000

North Central 7 116 920 7 243 970 7 405 640

North East 165 344 141 533 140 620

Total 26 363 099 27 521 016 27 938 049

(PCU, 2003)

On a per capita basis, North Central is the highest producing state at .72 tonnes/per person in 2002, followed by South East (.56), South South (.47), South West (.34), North West (.10) and North East (.01). National per capita production of cassava is .32 tonne/per person.

1.3. Growing Cassava in Nigeria

1.3.1. Choice of land

Choose well-drained, deep, loamy soils. Where such is not available sandy and clayey soils can be managed intensively for cassava production. However, very sandy and clayey soils should be avoided.

Land preparation: The texture and water table of the soil will guide you in your choice of land preparation method. Planting on the flat is recommended when the soil is deep and well drained as in sandy loam soils. Shallow and clayey soils should be tilled and ridged. Soils prone to wa-ter-logging require ridges or mounds. Planting on ridges or mounds is a general practice in the rain forest and derived savanna zones in Nigeria.

1.3.2. Choosing a variety Carefully select varieties with multiple pest and disease resistance, high and stable root yields and acceptable quality characteristics that meet end-user’s’ requirements for food (garri, fufu, fermented flour etc.) and industrial raw material (starch, chips, pellets, unfermented flour etc.). The major genetic factor that determines quality of roots is dry matter content.

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1.3.3. Recommended varieties

Several improved varieties of cassava have been recommended and released in Nigeria. The most commonly grown of these are TMS 30572, 4(2)1425, 92/0326 and NR 8082. More re-cently 42 new improved genotypes have been made available to farmers in the South-south and South-east for participatory selection so that they can identify specific best-bet varieties for each of the cassava growing communities. For now, you could choose any of the commonly grown improved varieties for planting since they are stable across environments. However, you will also need to select the variety with the highest performance in your farm site and environs.

1.3.4. Acquisition of planting materials

Stems of improved varieties can be obtained from National Seed Service (NSS), state offices of Agricultural Development Programs (ADP), the Cassava Growers Association (CGA) and sev-eral out-growers who produce quality stems for sale. Stems are usually tied in bundles each hav-ing 50 stems that are 1metre long. Fifty of such bundles are needed to plant 1 hectare of land.

1.3.5. Stem storage Keep bundles of stems stacked vertically on the soil under a shade. The distal end of the stem should touch the soil. Moisten the soil regularly and keep the surrounding weed free. This way you can store your stems for more than 3 months. Under low relative humidity and heat stress store your stems in pits under shade.

1.3.6. Stem quality

Cassava stakes (cuttings) for planting should be taken from plants 8 - 18 months old. Stakes taken from older plants are lignified and they perform poorly due to delayed sprouting and root-ing. A mature cassava stem has 3 sections - hardwood, semi-hardwood and shoot-tip. The hard and semi-hardwood sections are the best for planting. Shoot tips are very fragile and have high mortality rate especially if they are subjected to moisture stress during the first month after plant-ing. If you must source planting materials from an old field (over 18 months) the semi-hardwood section gives the best quality.

1.3.7. Preparation of planting materials

Use sharp tools preferably a secateurs or cutlass to cut stems into stakes for planting. Avoid bruising the stems. Smooth cuts enhance root yields through rapid and uniform root development from the cut surface. The recommended length of stakes is 20-25 cm with 5 or more nodes. Mini-stakes (10 cm) are required for multiplication while micro-stakes (3-5 cm) are used for rapid multiplication.

1.3.8. Handling of stakes

Stakes should be planted soon after they are cut otherwise they get dehydrated and perform poorly. If stakes must be stored for a few days (3-5 days) before planting put them into transpar-ent polyethylene bags. You can also gather the stakes together under shade and cover with a plastic bag. The high relative humidity and temperature within the bag usually induce rapid sprouting and rooting of stakes. Plant vigor, survival rate and yields are better if stakes are pre-sprouted before planting.

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1.3.9. Time of planting

Planting should be done as soon as the rains become steady in your area. This varies from March to November in the rain forest, April to August in the derived savanna, May to July in the Southern Guinea savanna (SGS) and July to August in the Northern Guinea savanna (NGS).

1.3.10. Method of planting

Stakes can be planted vertically (buds facing up with 2/3 of the stake in the soil), horizontally (whole stake buried 3-5 cm in the soil) or inclined (buds facing up with 2/3 of the stake buried in the soil at an angle of about 45o). When stakes are planted vertically tuberous roots bulk deep into the soil. Although this gives more stability to the plant against lodging, it makes harvesting very difficult. This orientation is recommended for sandy soils. Stakes planted horizon-tally produce multiple stems and more tuberous roots but they are comparatively smaller in size. The roots are produced near the surface and they are easily exposed to mechanical damage and to rodents. However, in loamy and rich soils the multiple stems and roots are at an advantage resulting in high yields.

Stakes that are inclined on the ridge produce tuberous roots in the same direction. The inclina-tion of the stem and roots provide a leverage which \make harvesting easier than in the other ori-entations. In shallow and clayey soils, stakes should be inclined. In the rain forest and derived savanna, farmers incline their stakes at planting.

1.3.11. Plant population

The optimum plant population for high root yield is 10,000 plants per hectare obtainable when plants are spaced at 1 x 1 m. This population is seldom achieved at harvest due to losses caused by genetic and environmental factors. In other to harvest a plant population near the optimum an initial plant population/ha of 12300 at 0.9 x 0.9m is recommended. Plant spacing and population will vary depending on if cassava is planted sole or in association with other crops.

1.3.12. Intercropping

Cassava is compatible with many crops when intercropped. The best intercrops of cassava in Nigeria include maize, melon, groundnut, cowpea and vegetables. Other less important inter-crops particularly in the South-south and Southeastern Nigeria include yam, cocoyam, sweet potato, plantain and banana. None or high branching varieties of cassava are best for intercrop-ping. Profuse and low branching varieties will shade light off the intercrops. In medium and large-scale farms, maize is the best intercrop.

1.3.14. Weed control

This is one of the major limiting factors to production accounting for more than 25% of the total cost and time of production. Integrated weed control (cultural, mechanical and chemical) is rec-ommended. The ideal combination will depend on the agro ecology, weed spectrum and level of infestation, soil type and cropping system.

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1.4. CULTURAL

Plant early before weeds emerge after land preparation. Adopt improved fallow practices using Mucuna pruriens and live mulch using melon to suppress weeds. Under monocropping, plant va-rieties with potentials for early canopy closure to reduce weed infestation. Such varieties should be vigorous and resistant to major pests and diseases in addition to having multiple branching at a medium height.

1.5. MECHANICAL

Do double or triple harrowing before planting. Weed with hoes or adapted cutlasses 3 or more times depending on agro ecology and type of weed. More weeding times is required in the for-est than in the savanna. Weeds with stolon, rhizome, tubers or deep taproot require more fre-quent weeding. On a large scale you will require tractor operated weeders.

1.6. CHEMICAL

Several pre and post emergence herbicides exist but only few of them are available in Nigeria for controlling weeds in a cassava farm. In the forest zone apply pre-emergence herbicides like premextra or dual while in the savanna zone you can apply primextra, dual or cotoran multi im-mediately after planting to keep your farm weed free for periods ranging from 4-8 weeks. Consult manufacturers’ labels for guidelines and follow the rates specified for each chemical. Ap-ply post-emergence herbicides (paraquat or gramozone) as soon as weeds begin to emerge after the pre-emergence herbicide treatment. They are basically non-selective, localized contact her-bicides and should be sprayed with a guard to ensure that only the weeds receive the chemical. If your field is infested with difficult-to-control weeds like Spear grass (Imperata cylindrica) carefully apply systemic herbicides like Glyphosate, Fusilade or Sarosate. Follow the manufacturers’ guidelines for each of the herbicides. Weather conditions affect herbicide perfor-mance. Do not apply herbicides soon after a heavy rainfall or when it is likely to rain to avoid di-luting the chemical and reducing its effectiveness. For best results gramozone should be sprayed only when you are sure of having at least 3 hours of sunshine after spraying. For cost ef-fectiveness and results use skilled staff for chemical weed control.

1.7. Fertilizer rate and time of application

Ideally, fertilizer recommendations should be based on soil analysis but when this is not done then use the land history and vegetation as a guide. Lands naturally inundated with Chromolaena odorata (Akintola taku) as weed can support a good cassava crop without fertilizer while the presence of Spear grass or poorly established vegetation is a signal for fertilization. Under con-tinuous cultivation in the forest zone apply a first dose of 200kg (4 bags) of N: P: K 15:15:15 per hectare or a full small matchbox per plant at 4-6 weeks after planting (June-July). A sec-ond dose of 100kg of muriate of potash or a half-full small matchbox per plant at 14-16 weeks after planting (September) should also be applied. In the savanna zone, apply 200kg (4 bags) of N: P: K 15:15:15 per hectare or a full small matchbox per plant at 4-6 weeks after planting and a second dose of 50kg of muriate of potash per hectare. Apply fertilizer in holes 5 cm deep and 10 cm radius from the plant. Do not apply fertilizer if the soil is dry.

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1.8. Harvesting

All parts of the crop (stems, leaves and tuberous roots) can be harvested for specific markets.

1.8.1. STEMS

There is usually a high demand for planting materials of improved varieties at the beginning of the planting season. You can harvest, package and sell stems to increase your profit margin from the farm.

Stem harvesting can be total or partial. In total harvesting all the stems are pruned leaving only the stumps to regrow while in partial harvesting a few stems are pruned from plants having multi-ple stems, In a well-established production field 400 or more bundles of stem can be harvested per hectare depending on the variety, plant population and environment.

1.8.2. LEAVES

As vegetable, harvest only the young succulent leaves and process. As silage for animal feed, all the green leaves including the young parts of the stem are harvested, chopped and ensiled.

1.8.3. TUBEROUS ROOTS Plants can be harvested at 9 - 18 months after planting to give root yields ranging from 15 - 50 tons or more per hectare depending on the variety, environment (soil fertility status, acidity level, moisture level and sunshine hours) and agronomic practices adopted.

Harvest roots only when you have a ready market. Avoid bruising the roots excessively during harvesting otherwise they will deteriorate very rapidly. For quality products, process the roots as soon as they are harvested and not later than 48 hours. The major quality trait for market acceptability of roots is dry matter content. It is usually high soon after the rains and during the harmattan period but low in plants recovering from stress par-ticularly during the reflushing of new leaves.

1.9. Management of pests and diseases A good pest and disease information and management is necessary for high productivity in cas-sava.

1.9.1. DISEASES

1.9.1.1. CASSAVA MOSAIC DISEASE (CMD)

The disease is caused by a complex of viruses and transmitted by a whitefly (Bemisia tabaci). Leaves become smaller, wrinkled and chlorotic. In severe cases root yield losses are very high (near 100%). The best control measure is to plant resistant varieties. Rogue off infected plants during the early stage to reduce secondary spread. Intercrop with tall growing plants like maize to reduce vector movement and transmission of the disease.

1.9.1.2. CASSAVA BATERIAL BLIGHT (CBB)

The disease is caused by bacteria (Xanthomonas sp.) Symptoms are first characterized by wet an-gular spots on the lower leaf surface, which finally lead to blighting and exudates on petioles and stems. Infected leaves drop early and in severe cases the stem is leafless and appears burnt

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(candlestick). As control, plant resistant or at least tolerant varieties. Plants infected at an early stage should be pruned to allow for new regrowth or uprooted entirely and burnt.

1.9.1.3. OTHER DISEASES

Anthracnose, cercospora leaf spot and root rot are less worrisome diseases since most of the newly improved varieties have desired levels of multiple pest and disease resistance in them.

1.9.2. PESTS

1.9.2.1. CASSAVA MEALYBUG (CM)

Causes reductions in internode length resulting in ‘bunchy tops’. This pest has been managed in several African countries through biological control. It is no longer seen as a serious threat to production in Nigeria.

1.9.2.2. CASSAVA GREEN SPIDERMITE

Damage is characterized by tiny chlorotic spots on the upper surface of the leaf, reduced leaf size, premature leaf drop and candlestick of the stem. As control, simply plant resistant varieties. This will be complemented by the activities of biological agents, which have been released to keep the pest population low.

1.9.2.3. TERMITES

Highly voracious white ants. They bore through stakes and eat them up as soon as they are planted or later in the season thus destroying whole plants. The damage is most severe when there is moisture stress particularly in the savanna belt. Plant when the rains have stabilized and the soil is moist. Pre-sprout stakes in plastic bags for 3-5 days before planting for rapid take off. Plant vertically to reduce lodging which can predispose plants to termite damage. Keep fields free of dead woods and crop residues. Destroy anthills and treat with D-Aldrex 20 as recom-mended by the manufacturer.

1.9.2.4. VARIEGATED GRASSHOPPER

Nymphs and adult grasshoppers eat up cassava leaves and the young part of the stem. Damage is most serious during the dry season starting from the end of the rains in September. If the incidence of the pest is mild it could be overlooked but need to treat the plants with Gamalin 20. Spraying should be done early in the morning or in the evening when the pests are not very active. Ad-vice farmers in neighboring fields to do the same in order to ensure effective control of the pest.

1.9.2.5. VERTEBRATE PESTS

Grass cutters and bush fowls frequently expose and eat up roots in the soil. The damage to the roots can provide an entry for the microorganisms that cause roots to rot. Use traps to catch them, poisoned grains to kill them or wire mesh fencing to prevent the grass cutters from enter-ing your field. Keep the farm and its surroundings weed free. Plant on the flat to make root expo-sure difficult for them.

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CHAPTER TWO

ANALYSIS OF THE PROCESSING INDUSTRY IN CASSAVA PRODUCTION

2.0. INTRODUCTION

A critical analysis of the present economic situation in Nigeria will reveal a myriad of prob-lems ranging from unemployment, hunger, mass poverty, rural degeneration, urban explo-sion, increased social vices, gradual extinction of the productive capability and a host of oth-ers. The major cause of this problem is the total abandonment of the productive sector. It has been said that Nigeria is suffering from resource curse. One of the solutions to the above listed problems is the encouragement of investment in the productive sector.

Nigeria is about the largest producer of cassava in the world with annual production of over 34 million metric tons. Establishment of multipurpose cassava processing centers will no doubt enjoy good supply raw materials. Currently, there is a glut in cassava production in Nigeria simply because of absence of adequate processing of the crop into many products.

The establishment of this processing capability will definitely solve this problem of glut. It will at the end of the day encourage farmers to cultivate more since they now have ready-made market for their crops. The implication of this is that there will be increased farm activ-ities. Very recently, the Federal Government passed into Law that 10 percent of composite flour used by bakeries should be made of cassava. By this, the implication is that the demand for cassava flour in Nigeria is now in thousands of tons yearly.

This is to say in essence that the proposed project is bound to enjoy tremendous patronage.

There is bound to be constant demand for the products of this factory as is it is multifarious in nature. Since there would be more than three products from a factory, we are sure of getting regular demand for any of these products daily.

Social and economic benefits derivable from the projects among others are employment gen-eration, poverty alleviation, improved rural income, diversification of the economic base and optimal utilization of resources.

2.1. TECHNICAL ANALYSIS

The Federal Government of Nigeria has in recent times taken a number of bold steps to en-courage the exportation of Nigerian products in order to enhance the nation’s foreign ex-change revenue and discourage over reliance on petroleum product export as the main source of earning foreign exchange.

However, the basic forms in which cassava can be exported outside Nigeria are cassava chips and pellets. These are used to produce other forms of cassava such as ethanol, glucose, flour, livestock feed, starch etc. The demand for these processed products exists locally in the coun-try (but basically for food-based products) and is quite large worldwide.

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2.2. Cassava Varieties and Industrial Processing

2.2.1 Types of Cassava for Processing

When considering which cassava variety to plant in order to achieve the right content value and attributes of the cassava roots for processing, the following varieties of cassava will be considered. Cassava as a plant is divided into two broad groups being Bitter and Sweet cas-sava. However, during the research on for this project, 62 varieties of cassava have been en-countered, most being clones form IITA and one from NCRI (National Root Crop Research Institute).

2.3. Types of Processed Cassava Products and Methods of Processing

Different cassava products and their method of processing are discussed below starting with the food-based products, and then on to the industrial products.

2.3.1. Garri:

Garri is a creamy-white, granular flour with a slightly fermented flavor and a slightly sour taste made from fermented, gelatinized fresh cassava tubers. Garri is widely known in Nige-ria and other West African countries.

It is commonly consumed either by being soaked in cold water with sugar, coconut, roasted groundnuts, dry fish, or boiled cowpea as complements or as a paste made with hot water and eaten with vegetable sauce. When properly stored, it has a shelf-life of six months or more.

2.3.1.1. Principle of Preservation and Processing of Cassava

Cassava is fermented to remove cyanide and produce the desirable flavors. It is then roasted to destroy enzymes and microorganisms, to drive off cyanide gas, and to dry the product. Preservation is achieved by heating during roasting. Low moisture content inhibits recontami-nation by bacteria. Packaging is needed, especially in areas of high humidity, to retain the low moisture content.

2.3.1.2. Raw Materials

Fresh cassava should be free from microbial or insect damage and without serious bruising or cuts. It should be processed within two days of harvest to prevent deterioration and loss of quality in garri.

2.3.1.3. Hygiene

Fresh cassava is a moist, low-acid food that is susceptible to bacterial and fungal growth. Hy-gienic practices, especially in the early stages of processing, should therefore ensure minimal contamination. All waste materials from the process should be removed from the site as they are produced to avoid the risk of cross-contamination.

2.3.1.4. Process control

Steps that are taken in the Processing of Garri can be summarized as thus:

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Step 1: Peeling and washing cassava roots

Freshly harvested cassava roots are covered with soil and dirt and some may be damaged or rot-ten. Only healthy roots (without rot or other damage) should be transported to the factory. At the factory, the roots are peeled to remove the outer brown skin and inner thick cream layer and washed to remove stains and dirt. The water source should be checked regularly to ensure it is not dirty or contaminated.

Step 2: Grating cassava roots into mash

Cassava roots are traditionally grated into a mash or pulp as part of the process to remove cyanide and make the roots safe to eat. Traditional cassava graters are usually made from perforated metal sheets. These rust quickly and are difficult to keep clean. They are also very slow and labor inten-sive to use.

Mechanized graters are needed to produce a sufficient quantity of cassava mash to meet market demands and standards. Smallholder processors therefore need to learn how to use and maintain these machines.

Step 3: De-watering and fermenting mash into wet cake

De-watering and fermenting complete the process of removing cyanide from the cassava mash. This is done traditionally by using stones or logs as weights to press excess water out of the bags of cassava mash. The bags are then left to drain and ferment for a few days. As with traditional graters, these methods are slow and unhygienic, and are therefore not suitable for a cassava pro-cessing business. Several improved methods are available.

Bagged cassava mash can be left on the fermentation rack for one or more days before de-water-ing. Alternatively, the bags of cassava mash can be pressed for the required number of days, dur-ing which time the mash will ferment. At the end of the fermentation period, the mash will be-come a firm, wet cake.

Fermentation periods of longer than one or two days will produce very sour products. Con-sumer tastes and preferences will therefore determine the length of the fermentation period.

Step 4: Sieving wet cake into grits and roasting grits into Garri

Sieving is important to obtain a high-quality product, free of fibrous contaminants and with similar-sized granules. The granules must be roasted to about 80 ºC/175 ºF to achieve partial gelatinization of the starch. If lower temperatures are used, the product simply dries produc-ing a dry white powder. Too high a temperature will cause charring of the product and make it stick to the roasting pan.

Garri is made by sieving the wet cake into small pieces - known as grits - and then roasting or frying the grits in a hot frying tray or pan to form the final dry and crispy product. Garri is nor-mally white or cream, but will be yellow when made from yellow cassava roots or when fried with palm oil. It is important to make sure the taste and smell is acceptable to local consumers. Yellow cassava roots and palm oil are rich in vitamin A and therefore make nutritious garri.

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The product should be free from mould, insects (dead or alive), dirt and any other material that could be hazardous to health.

The ideal moisture content is 47-50 %, and this is assessed visually by experienced garri pro-ducers.

Garri is usually classified by its particle size:

• Extra-fine: passes through 0.25 mm to 0.5 mm aperture sieve

• Fine: passes through 0.5 mm to 1 mm aperture sieve

• Coarse: passes through 1 mm to 1.25 mm aperture sieve

• Extra Coarse: passes through 1.25 mm to 2.0 mm aperture sieve.

Step 5: Bagging and storing the garri

The product is hygroscopic (it absorbs moisture from the air) and should be packed in airtight and moisture-proof bags, especially in areas of high humidity, to prevent mold growth.

This step can be highlighted as follows:

Remove the garri from the roasting tray and spread it thinly on a raised platform in the open air to cool and dry. Several batches can be put on the cooling tray.

Sieve the garri with a standard size sieve to produce fine granules, which are collected in a plastic bowl.

Use a grinder to break the large granules into smaller ones When the garri granules are all the same size, pour the garri into a plastic lining inside a

woven polythene sack Weigh the sack of garri to make sure it is the correct weight, as required by the market:

e.g., 25 kg, 50 kg or 65 kg. Seal the sack manually or with a bag sealer (if available) to keep the garri clean and fresh during storage.

Pile the sacks on pallets or a raised platform and keep them in a cool, dry place; the garri will keep for up to a year in these conditions

2.3.1.5. Processing Equipment’s

1. Weighing Balance 2. Washing Machine 3. Presser 4. Grater 5. Granulator 6. Sieves 7. Fryers/Rotary Dryers 8. Hammer Milling Machine 9. Sealer

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2.3.2. Fufu

Fufu is a fermented wet-paste made from cassava. It is ranked next to garri as an indigenous food for most Nigerians in the south. Fufu is made by steeping whole or cut peeled cassava roots in water to ferment for a maximum of three days, depending on ambient temperature.

During steeping, fermentation decreases the pH, softens the roots, and helps to reduce poten-tially toxic cyanogenic compounds. When sufficiently soft, the roots are taken out, broken by hand, and sieved to remove the fibers.

At present, processors sieve manually by adding water to the retted mass on nylon or cloth screens. The fiber produced as a by-product is sold for animal feed, either in its wet form or after sun-drying. The sieved mass is allowed to sediment in a large container for about 24 hours. After sedimentation, the water is poured off while the fine, clean sediment (mainly starch) is dewatered using a high powered Press. The cake is then sifted before drying.

Apart from being easy to prepare the consumable form, dried fufu has the advantages of hav-ing a longer shelf life, being more convenient to store, and less bulky. When cooked, fufu is a creamy/white smooth textured product. When properly packaged and stored, dried fufu flour has a shelf-life of six months or more.

2.3.2.1. Processing Equipment’s

1. Weighing Balance 2. Washing Machine 3. Presser 4. Grater 5. Rotary Dryer 6. Disc or Pin Milling Machine 7. Sealer

The design should ensure that all parts of the equipment are accessible for efficient cleaning. Materials used to fabricate equipment should maintain a surface that is easily cleaned. The equipment should be located to allow adequate maintenance and cleaning and should provide easy and convenient handling of raw material and products.

Operators must consider the occupational safety of processing staff and prevent chemical, physical, and microbiological contamination of cassava and its products. The equipment should function according to intended use.

2.3.3. Lafun

Lafun is a fibrous powdery form of cassava similar to fufu in Nigeria. The method of produc-tion of lafun is different from that of fufu. In the traditional preparation, fresh cassava roots are cut into chunks and steeped for 3-4 days or until the roots become soft.

The fermented roots are peeled, broken up into small pieces, and sun dried on mats, flat rocks, cement floors, or the roofs of houses. The dried pieces are milled into flour. Alterna-tively, chips are made directly from fresh roots, cut into chunks, and sun dried. Drying takes

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2-4 days, depending on the weather. Unlike fufu, the fibers in the retted root for lafun are dried along with the mash and later sieved out. Thus, lafun is coarser than fufu in texture. The flour is made into dough with boiling water before consumption. When properly stored, it has a shelf-life of six months or more.

2.3.4. Tapioca

Tapioca meal is made from partly gelatinized cassava starch through the application of heat treatment to moist mash in shallow pans.

When heated, the wet granules gelatinize, burst, and stick together. The mass is stirred to pre-vent scorching. It is manufactured in the form of irregular lumps called grits or in perfectly round beads. The grits are made into a grained product by milling gelatinized lumps and sift-ing. Tapioca is consumed in many parts of West Africa. It is usually soaked or cooked in wa-ter; sugar and or milk are added.

2.3.4.1 Processing Equipment’s

1. Weighing-Balance2. Washing-Machines 3. Pressers4. Graters 5. Extractor6. Sieves7. Fryers/Rotary-Dryer8. Hammer Mill9. Sealer

2.3.5. Kpokpogari

This product is also food-based but is predominantly prepared and eaten in the South South states, especially Delta state.

2.3.6. Cassava Flour

High quality cassava flour is simple unfermented cassava flour. The IITA production process minimizes the capital investment requirements for flour production by making use of simple equipment already used for garri processing. This technique is suitable for preparing cassava flour from both sweet and bitter varieties.

Mini-chippers were also tried in place of the mechanical grater but were found to be unsuit -able for bitter varieties because the concentration of cyanogenic glucosides was not reduced sufficiently during processing.

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2.3.6.1. Required Equipment’s

1. Grater

2. Press

3. Dryer

4. Pin Mill

5. Stitching Machine

Under optimal conditions (dry sunny weather for sun drying), the IITA technique enables small-scale primary processors to produce high quality unfermented cassava flour that meets the specifications of industrial users within one day. Drying has been identified as the major tool for expanding processing of cassava into high quality cassava flour.

2.3.6.2. Natural Drying

Local processors expose cassava mash on a polythene sheet directly to the sun. This is re -ferred to as “sun drying”. The project observed that drying at rural or domestic levels cannot be done artificially because of the high capital investment in equipment and energy required and hence, natural sun drying is done.

Sun drying is beset by several inherent drawbacks, such as susceptibility to damage due to in-clement weather, slow drying rates, and contamination. Because of these limitations and the high cost and low utilization of more efficient traditional dryers, the adoption of a modified sun drying process, solar drying, has been considered for drying HQCF in rural areas.

2.3.6.3. Artificial Drying

If a controllable source of energy is used for drying operations, the process is referred to as artificial or mechanical drying. There is a further classification in which the air used for dry-ing is heated, either by solar means or controlled means such as electricity, renewable fuels, or fossil fuels. These methods are referred to as hybrid drying.

2.3.7. Glucose Syrup

Glucose syrup is a concentrated aqueous solution of glucose maltose and other nutritive sac-charides from edible starch. Glucose or dextrose sugar is found in nature in sweet fruits such as grapes or honey. It is less sweet than sucrose (cane sugar). Glucose syrup is used in large quantities in fruits, liquors, crystallized fruits, bakery products, pharmaceuticals, and brewery products.

2.3.7.1. Production of Glucose Syrup

Glucose syrup production from cassava can be subdivided into the following process areas of liquefaction, scarification, and purification.

Native starch consists of microscopic granules having a complex internal structure. At room temperature, these granules are insoluble in water. However, if starch slurry is heated above 60oC, the granules will swell and eventually rupture. This results in a dramatic increase in viscosity. At this point, the starch has been “gelatinized”. The gelatinized starch is now sus-ceptible to attack by amylase enzymes.

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In practice, cassava starch in gelatinized and partially hydrolyzed very rapidly in one step (see flow chart) by heat-stable amylase. This step is called liquefaction. The partially de-graded starch chains called dextrin’s are suitable starting materials for the later steps in syrup production.

2.3.7.2. Liquefaction

Starch slurry is made with 30-35% dry solids and its pH is adjusted to 6.0-6.4. Calcium is added using calcium hydroxide or calcium chloride. Calcium ions stabilize the enzyme. A heat-stable a-amylase (Novo’s Term amyl 120L) is mixed into the slurry, then the slurry is in-stantaneously heated to 100oC and held at this temperature for 10 min before it is cooled to 90oC. This temperature is maintained for 1-3 hrs. to further hydrolyze the starch.

At the end of this step, the starch has been converted to dextrin’s with a dextrose equivalent (DE) between 8 and 15. (The physical properties of the syrup vary with the DE and the method of manufacture.) DE is the total reducing sugar in the syrup expressed as dextrose on a dry weight basis.

2.3.8. Ethanol

Ethanol is generally produced by the fermentation of sugar, cellulose, or converted starch and has a long history. In Nigeria, local production of ethanol from maize, guinea corn, millet, other starchy substrates, and cellulose is as old as the country itself. Apart from food and pharmaceutical uses, ethanol is finding itself an alternative use for biofuel in most of the de-veloped world.

2.3.8.1. Required Equipment’s

1. Peeler

2. Grater

3. Jet Cooker

4. Fermenter

5. Distiller

6. Steam Boiler

7. Generator

8. Efficient Treatment Plant

2.3.9. Starch

Starch is one of the most abundant substances in nature, a renewable and almost unlimited re-source. Starch is produced from grain or root crops. It is mainly used as food, but is also read-ily converted chemically, physically, and biologically into many useful products to date, starch is used to produce such diverse products as food, paper, textiles, adhesives, beverages, confectionery, pharmaceuticals, and building materials. Cassava starch has many remarkable

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characteristics, including high paste viscosity, high paste clarity, and high freeze-thaw stabil-ity, which are advantageous to many industries.

Cassava starch is produced primarily by the wet milling of fresh cassava roots but in some countries such as Thailand it is produced from dry cassava chips. Starch is the main con-stituent of cassava. About 25% starch may be obtained from mature, good quality tubers. About 60 % starch may be obtained from dry cassava chips and about 10 % dry pulp may be obtained per 100 kg of cassava roots.

Fresh tubers are processed during season and dry chips during the off-season in some coun-tries. Extraction of starch from fresh cassava roots (Fig. 1) can be divided into five main stages: preparation (peeling and washing), rasping/pulping/grating, purification (starch wash-ing), dewatering and drying, and finishing (milling and packaging).

For cassava, the process of starch extraction is relatively simple as there are only small amounts of secondary substances, such as protein, in the roots. When cassava roots are har-vested or selected for starch extraction, age and root quality are critical factors. Cassava roots need to be processed almost immediately after harvest, as the roots are highly perishable and enzymatic processes accelerate deterioration within 1-2 days. A first-rate quality starch can be obtained from cassava using only water, and this makes the processing of cassava starch and flour particularly suitable for developing countries and rural industries.

2.4. Livestock Feed from Cassava:

2.4.1. Cassava Chips

This is the most common form in which dried cassava roots are marketed and most exporting countries produce them. The chips are dried irregular slices of roots, which vary in size but should not exceed 5 cm in length so that they can be stored in silos.

They are produced extensively in Thailand, Malaysia, Indonesia, and some parts of Africa. The present method of processing chips is very simple, consisting of peeling, washing, chip-ping the cassava roots, and then sun drying the slices or chips. The recovery rate of chips from roots is about 20-40% depending on the initial dry-matter content of the cassava roots and the final moisture of the chips.

Chips should be white or near white in color, free from extraneous matter, molds, insect in-festation and damage, and possess no peculiar odors. In addition, shipments of chips must not contain significant amounts of dust, as this is considered unacceptable by European im-porters.

2.4.2. Broken Roots

Similar to chips in appearance, but generally thicker and longer, they are often 12-15 cm long and can jam the mechanism of handling equipment. They are produced mainly in Africa where local processors prefer to produce longer roots because of the domestic demand mainly for products suitable for human consumption, as cassava is part of the staple diet. Once pro-cessed into chips, the product becomes inedible and the producer wants to conserve the local market.

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2.4.3. Pellets

Pellets are obtained from dried and broken roots by grinding and hardening into a cylindrical shape. The cylinders are about 2-3 cm long and about 0.4-0.8 cm in diameter and are uniform in appearance and texture.

Pellets are produced by feeding dried cassava chips into the pelleting machine, followed by screening and bagging for export. Powdered chips which fall down during pelleting are re-pressed into pellets and the process repeated.

There is usually about 2-3% loss of weight during the process. Pellets have the following ad-vantages over chips: quality is more uniform; they occupy 25-30% less space than chips, thus reducing the cost of transport and storage; handling charges for loading and unloading are also cheaper; they usually reach their destination sound and undamaged, while a great part of a cargo of sliced chips is damaged in long-distance shipment because of sweating and heat-ing.

An indigenous fabricator in Nigeria, B & T Ventures, Ibadan, in collaboration with the cas-sava project at IITA, has been able to design and fabricate a pelleting machine that can pro -duce three different types of cassava pellets: hard, soft, and floating. The floating pellets are used for feeding fish; the hard ones are for poultry and the soft ones for ruminants.

2.4.4. Cassava Meal

This is the powdered residue of the chips and roots after processing to extract edible starch. It is generally inferior in quality to chips, pellets, and broken roots, has lower starch content, and usually contains more sand. The use of cassava meal in the European Economic Commu-nity has declined with a shift to the other cassava products during the last few years. How-ever, there will remain some demand for this product, especially by small-scale farmers who produce their own feedstuffs. Since it does not require grinding, it can be readily mixed with other ingredients.

2.4.5. Cassava Residual Pulp

During the processing of cassava starch, the residual pulp separated in the screening process is also used as an animal feed. It is usually utilized in the wet state (75-80% moisture content) in the neighborhood of the processing factory but is sometimes sun dried before it is sold. This product is considered a by-product of the cassava starch industry and represents about 10% by weight of the cassava roots.

2.4.6. Cassava-based Adhesives/Glue:

The word adhesive as an adjective or a noun refers to substances which tend to adhere or stick to other substances. The interaction which develops between an adhesive and other dis-similar substance(s) when they have contact is called adhesion. Thus, adhesives are used to unite or bind materials and are very useful at home and in industry.

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2.5. List of Cassava Processing Equipment’s

1. Grater (Manual or Mechanical)2. Pressing Machine (Hand driven or Hydraulic)3. Mill/Miller Machine (Pin or Hammer)4. High efficiency powder/flour/ starch Sifter/Sieving Machine5. Bulk/Storage Bins6. Disintegrator7. Water Borehole8. Peeler/Peeling Machine9. Chipping Machine10. Pelletizing Machine11. Flash Dryer12. Rotary Dryer13. Cabinet Dryer14. Cooler/Dehumidifier15. Electric or Fuel-Driven Motors16. Garri Frying Plate17. Bag Sewing Machine18. Packaging Machine19. Washing Machine20. Weighing Scale21. Pulp Sedimentator

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2.6. Prices of Some Processing Equipment’s

Quotation for a Unit of Cassava Processing Centre

Using Stainless Material for Production of Cassava Flour

S/N MATERIAL SPECIFICATIONS NO(S) UNIT PRICE COST

1. Cassava Grater3.5 tons/hr capacity grater coupled with 8hp Diesel En-gine (Stainless Material)

1 380,000 380,000.00

2.High Capacity Cassava Dewa-tering Press

Factory size of 2m height x 0.7 width x 0.6 depth cou-pled with 30tons hydraulic jack and a waste water col-lecting chamber 500kg/batch

4 180,000 720,000.00

3. Pulverizer1 ton/hr capacity coupled with 3.6hp Diesel Engine (Stainless Material)

1 380,000 380,000.00

4.Hammer Mill with Cyclone

1ton/hr capacity cyclone type coupled with 156hp Electric motor (Stainless Material)

1 750,000 750,000.00

5. Flash Dryer

All stainless steel, Blower in centrifugal with 20hp and output capacity of 3 ton/day dried output

1 4,000,000 4,000,000.00

TOTAL 6,230,000.00

Table 2.4

Installation Cost - 10% #623, 000.00

Transportation Cost - 10% #623, 000.00

Total Cost - #7, 476,000

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Quotation for a Unit of Cassava Processing Centre

Using Stainless Material for Production of Cassava Chips

S/N MATERIAL SPECIFICATIONS NO(S) UNIT PRICE COST

1. Cassava Chipper1 tons/hr capacity with 5.5hp Diesel Engine (Stainless Ma-terial)

2 250,000 500,000.00

2. Tunnel Dryer 2.5ton dried output 1 2,500,000 2,500,000.00

TOTAL 3,000,000.00

Installation Cost - 10% = #300, 000.00

Transportation Cost - 10% = #300, 000.00

Total Cost = #3,600,000.00

Quotation for a Unit of Cassava Processing Centre

Using Stainless Material for Production of Garri

S/N MATERIAL SPECIFICATIONS NO(S) UNIT PRICE COST

1. Cassava Grater3.5 tons/hr capacity grater coupled with 8hp Diesel En-gine (Stainless Material)

1 380,000 380,000.00

2.High Capacity Cassava Dewa-tering Press

Factory size of 2m height x 0.7 width x 0.6 depth cou-pled with 30tons hydraulic jack and a waste water col-lecting chamber 500kg/batch

4 180,000 720,000.00

3.Cassava Mash Sifter

1ton/hr capacity coupled with 3.6hp Diesel Engine (Stainless Material)

1 380,000 380,000.00

4 Garri Tray Fryer   4 100,000 400,000.00

TOTAL 1,880,000.00

Installation Cost - 10% = #188,000.00

Transportation Cost - 10%= #188,000.00

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Total Cost = #2,256,000.00

2.7. Location

The factory should be located in an area that is free from environmental pollution and any industrial activities that can pose a serious threat to contaminating food. Areas subject to flooding should be avoided unless sufficient safeguards are provided.

The site should be cleared ground from waste, either liquid or solid, can be removed effectively and away from sources of insects and rodents. It should have a good supply of potable water and, if re-quired, electricity. An access road for bringing in raw materials and packaging, and sending out prod-ucts, is usually essential. 

2.8. Process Control

Equipment must be designed to dry, fry, cool or store food to achieve the required food tem-perature as rapidly as necessary in the interests of food safety and suitability, and to maintain them effectively.

Equipment is designed to allow temperatures to be monitored and controlled. Where neces-sary, equipment should have effective means of controlling and monitoring humidity, airflow, and other characteristics likely to have a detrimental effect on the safety and suitability of food.

2.9. Organizational Structure

An organic staff structure is suitable for a startup cassava processing factory. This implies that there will be one level of management in which there will be a Manager, an assistant manager and a super -visor who will oversee other members of staff. The staff required to run the factory will include the following described below:

2.10. Job Description and Organizational Payment Structure

TOTAL #168,000

S/N DESIGNATION SALARY (#)

1 MANAGER 40,000

2 ASSISTANT MANAGER 32,000

3 SUPERVISOR/ LAB. TECH 27,000

4 ACCOUNTANT 24,000

5 MACHINE OPERATOR 20,000

6 SECRETARY 15,000

7 SECURITY 10,000

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CHAPTER THREE

Industrial cassava starch production

3.0. INTRODUCTION:

Traditionally, wet cassava starch is produced by cassava processors either as a direct product or as a byproduct resulting from cassava processing into other products such as Gari, Fufu, etc. One of the factors responsible for the high post-harvest loss for cassava is the inadequacy of the traditional processing method to convert cassava into less perishable products such as cassava starch.

To address this issue and make cassava starch readily available in the form useful in the indus-tries the Federal Institute of Industrial Research, Oshodi (FIIRO) developed and perfected the process technology for production of cassava starch useful for various applications in the user industries. In Nigeria, the prospect for mechanized cassava processing is very high.

3.1. MARKET INFORMATION

There is high demand for cassava starch in Nigeria. User industries include textile, pharmaceuti-cals, oil drilling, paper and packaging, gum and adhesives, chemical and household products manufacturing, battery, drinks and beverages, foods and so on. The desire to conserve foreign exchange and reduce import dependency is the driving force for demand for cassava starch espe-cially as regards its partial substitution for corn starch in user industries. The national demand for cassava starch is in excess of 350,000 tonnes/annum. The current domestic production capacity to meet the estimated demand for cassava starch is less than 20 per cent. The current price/tonne of cassava starch ranges between #150, 000.00 - N180, 000.00.

3.2. RAW MATERIALS

The only raw material for production of cassava starch is fresh cassava root. Cassava is grown in virtually all the thirty-six (36) states in Nigeria and Nigeria has been rated the highest producer of cassava in the world with production estimate of about 40 million metric tonnes.

3.3. MACHINERY AND EQUIPMENT The major equipment for production of cassava starch are: - Hammer Mill Grater - Starch Extractor - Sedimentation Tank - Homogenizer - Hydraulic Press - Granulator - Flash Dryer

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- Hammer Mill with Cyclone - Packaging Machine

The cost varies for the machinery depending on the capacity which could vary from 2-5 tons per day.

3.4. PRODUCTION PLAN

For a Five year production plan, we are going to look subsequently into the Costs that will be in-curred in venturing into the business, and also its benefits. Though, they might not have been ex-plicitly enumerated because to a lot of factors and also time, It has been summarized into a way that can be easily grasped and the message ultimately passed across.

Year Output per Annum (Tonnes)1 8402 9003 9604 10205 1080

ANNUAL PRODCUTION COST ESTIMATS #’000 FOR THE FIVE YEAR PRODCU-TION PLAN

ITEM/YEAR 1 2 3 4 5Raw MaterialSuppliesUtilitiesLaborFactory Overhead

70,000.001,825.746,546.007,710.00819.31

75,000.001,917.036,873.308,481.00819.31

80,000.002,007.887,216.979,329.101,638.61

85,000.002,113.527,577.8210,262.011,720.54

90,000.002,219.207,956.7111,288.211,806.56

FACTORY COST 86,901.04 93,162.33 100,192.56 106,673.89 113,270.68Admin. OverheadMarketing Overhead

1,425.002,400.000

1,496.252,400.00

1,571.062,400.00

1,649.612,400.00

1,732.092,400.00

Operating Cost 90,626.04 97,058.58 104,168.62 110,723.50 117,402.27DepreciationAmortizationFinancial Cost

1,698.61653.444,677.25

1,698.61653.443,742.28

1698.61653.442,806.71

1,698.61653.441,871.14

1,698.61653.44935.57

TOTAL PRODUC-TION COST

97,755.34 103,134.91 109,327.38 114,946.69 120,690.39

PRODUCTION COST/TONNE

116.38 114.59 113.88 112.69 111.75

3.5. PRODUCTION PROCESS

The basic processes involved in the production of cassava starch from cassava roots are: Sort-ing: The roots are sorted to select wholesome roots for processing.

Weighing: The sorted roots are weighed.

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Peeling: The roots are peeled to remove the peels.

Grating: The peeled roots are grated to produce a smooth mash.

Extracting: The mash is discharged into a starch extractor to extract the starch. Sedimentation: The starch milk is allowed to settle forming two layers i.e. the top free super-natant liquid and the thick starch slurry. Dewatering: The supernatant layer of liquid is removed by siphoning off the liquid with rubber hose and the thick slurry obtained is dewatered to reduce its moisture content.

Granulating: The "cake" is mechanically reduced in size to produce fine granules of greater sur-face area. The granulated cake is mechanically dried in a mechanical dryer to reduce its moisture content to about 8 - 10 per cent. Milling: The dried product is milled to desired particle size (if necessary).Packaging: The starch is packaged appropriately.

3.6. PRODUCTION PROGRAMME

The following assumptions are made in arriving at the proposed production programme.

Production Days/Annum - 300

Production Volume/Day - 4 Tonnes

Production Volume/Annum- 1,200 Tonnes

Input - Output Ratio - 1: 0.15

3.7. LABOUR REQUIREMENT

For efficient operation of this venture, both skilled and unskilled personnel are required. These consist of the production, administrative/account and marketing personnel. Staff matters, finance/account, store management, security, purchasing and other administrative function are handled by the administration/account division, while the production division to take charge of production. Marketing activities are the responsibilities of all the staff especially the marketing division staff. About fifty (50) personnel are required for the project take off.

3.8. TOTAL INITIAL CAPITAL INVESTMENT

Initial Fixed Capital #24,316,360.00

Initial Working Capital #5,602,070.00 Pre-production Expenses #2, 267,220.00 Contingencies #1, 609,282.50 TOTAL #33, 794,932.50 AVERAGE PRODUCTION COST = #113,840.00

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3.9. PROFITABILITY INDICES

Return on Investment (Year 1) 81.4% Return on Equity (Year 1) 158.5% Net Profit to Sales 15.7% Gross Profit to Sales 22.4% Profitability Index 3.6

Breakeven Point (Year 1) 39.6%

Payback Period 1.2 Years

Net Present Value @ 25% #31,952,060.00

3.10. CONCLUSION:

Although, from the tables and all the information presented in this report about Cassava Starch production, it could be realized that it requires a really large sum of Money as Capital to venture into this business. A quote by one of the richest Men in the world who is well renowned in In-vestments says, "The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine."-- Warren Buffett. Before we can get, we first need to give, so also before we can rake large sum of money in profits from a business, there is the need to invest large sum of money into that Business.

Starch production from cassava has a ready market in Nigeria and with adequate investment, there is no limit to what can be achieved over a long period of time.

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CHAPTER FOUR

MARKETING ASPECT OF CASSAVA PRODUCTION

4.0 Target Market

In a survey carried out by the International Institute of Tropical Agriculture (IITA) in 2001 to discover the potential number of cassava industrial users, the method used was to list all po-tential users of industrial cassava from the National Telephone Directory Yellow Pages Sec-tion. It was believed that such a listing of industries would represent an unbiased cross-sec-tion of like industries, at least in terms of their desire to be listed in the Yellow Pages tele-phone directory. Whether they still exist or not as an industry in Nigeria were irrelevant to the purpose of getting a general idea of preferred locations for industrial cassava production and processing.

The categories used to collect the yellow pages listings included all possible industries, namely, Baby Food and Products Manufacturers, Bakers and Confectioners, Biscuit Manu-facturers, Canned Food Manufacturers, Confectionery Raw Material Suppliers, Supermarkets and Department Stores, Explosives, Farmers, Fish Farmers, Flour Mills, Food Contractors and Foodstuffs Suppliers, Food Processing Companies, Foods and Beverage Producers, Garri Processing Industries, Grinding Mills, Hotels, Restaurants, Livestock Feed Manufacturers, Mud Products, Newspaper Manufacturers, Packaging Industries, Paper Bags Manufacturers, Paper Mills, Converters and Distributors, Poultry Farms, Poultry Feeds (Feed Mills), Ship-ping Companies and Agents, Snack Stores and Suppliers, Starch Mills, Textile Manufactur-ers, Timber Industries, Trade Organizations, Trade Promotion and Transporters.

Of the 2, 356 firms found, some were obviously more interesting than others. For example, poultry farms and feed mills are meaningful because of the extent to which they could utilize cassava in their feeds. Food processing industries such as bakeries and flourmills are also in-teresting because of the potential to substitute cassava for wheat flour.

Therefore, we can estimate the size and location of the majority of these firms as they operate in Nigeria, based on the findings in 2001. Below, there is an illustration of a map showing the concentration of bakeries and textile mills:

Existing buyers of Peak’s flash dryers are predominantly chemical companies from the Sango-Lagos Axis and a few beverages and food industries. Prospective buyers include Nige-rian Distilleries in Ota who want 150 tonnes of cassava flour per day for ethanol production. DeUnited Nig Ltd., is looking to produce 60 000 tonne of cassava flour per month for noo-dles (Indomie Noodles). Oil companies are interested in producing cassava starch for drilling muds.

Textile industries, although not currently using local cassava starch negotiations are currently underway between the Government, cassava processors and the textile industry. Finally, pa-per mills such as Iwop in Paper Mill in Ogun State and Okui Ibokwe Paper Mill in Akwa Ibom State may also patronize cassava starch in the near future.

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In previous Chapter, types of processed cassava were discussed. The Cassava products which are considered as industrial needs are: 1. Starch 2.Flour 3.Chips 4.Pellets 5.Ethanol

4.1. Competition

The following is a list of Cassava Processing Factories known to be presently operating in Nigeria including their core processed products:

  Company Name Contact Details Processed Products

Annual Re-quirements

Year Estab-lished

1 Matna Foods and Company Limited

Km 19, Akure-Owo Express-way, Owo

Tel: 034-244713, 244883

Fax: 034-244883

Ondo State

Cassava Starch 24,000 tons 1988

2 B&T Ventures Nigeria Limited

Jerusalem Estate, off Arulegun Road, ojoo, Ibaba.

Tel: 08023501031

Oyo State.

Cassava Chips

Cassava Pellets

36 tons 1989

3

 

 

 

Peak products Enter-prises

 

 

Masaba Complex, Ita-Osin Abeokuta.

Tel: 0803 334 2174

Ogun State

Cassava Flour

 

 

 

 

 

 

 

1997

 

 

 

4

 

 

 

National Root Crops Research Institute, Umudike

Umudike, Umuahia Abia State Cassava Chips

Cassava Pellets

Cassava Starch

 

150 tons

 

 

 

1976

 

 

   

5

 

 

 

 

Jonrinson's D.A. & Co. Ltd

 

 

 

Plot 1, Sylvanus Igbodu Close,

YAMCO Bus Stop, Bada Rd.,

Ayobo via Ipaja

Tel: 0802 324 0626

Lagos State

Cassava Starch

Cassava Adhe-sives

Cassava Pellets

Cassva Flour

 

2000 tons

 

 

 

 

1992

 

 

 

 

6

 

Yinka Industries and Agric. Company

Seyi Villa, Oyin Rd, Ado Ekiti

Ado-Ekiti

Garri

 

250 tons

 

1982

 

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Tel: 030-250338

Ekiti State

 

 

 

 

 

 

 

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4.2. FINANCIAL ANALYSIS

ITEMS STARCH FLOUR FUFU GARRI LAFUN

Cost of Factory          

Cost of Equipment N6,230,000 N6,230,000 N1,880,000 N1,880,000 N1,880,000

Start Up Costs          

Cost of ProductionN1,080,000 (180 tons)

N1,080,000 (180tons)

N12,000 (2tons)

N144,000 (24tons)

N144,000 (24tons)

Monthly Total Sales

N2,700,000

(30ton)

2,250,000

(30ton)N24,000 (24bucket)

N486,720 (312bowl)

N224,800 (8160congos)

Monthly Gross Profit (excluding salaries and operat-ing costs) N1,620,000 N1,170,000 N12,000 N342,720 N100,800

4.3. RECOMMENDATION

Experienced manager should be employed to oversee the affairs of the business. It will also be advised that an experience Engineer/Machine operator be employed to handle the ma-chines. We also advise that at the start the Accountant can also pay the role of the Secretary. It is good to have competent personnel to handle the business’ account. This structure could be improved upon as the business grows. The need for innovative cassava processing tech-nologies is also enormous.

4.4. CONCLUSION

Cassava Processing is an emerging sector with huge prospects of returns. The business is such that ensures maximum profitability and it is certain that funds invested will be recov-ered.

The management the Company will guarantee that all operational facilities are efficiently maintained and serviced at timely intervals; also, funds will be carefully managed and circu-lated especially in the areas of marketing, distribution of products and in the purchase of nec-essary materials.

With proper implementation, effective and prudent management, the Company will make more than the projected profits in the plan.