A member of CGIAR consortium The National Cassava Summit: Towards a $5 Billion per Annum Cassava Industry in the Next 5 Years, 8 September 2016, Ladi Kwali Conference Centre, Sheraton Hotel and Towers, Abuja, Nigeria

A member of CGIAR consortium Importance of cassava and cassava in Nigeria Uses of cassava Government policies to promote cassava transformation Cassava value chain in Nigeria Challenges and opportunities in the cassava value chain development Target cassava value chains Supply and demand relationships between cassava farmers, processors, and end-users Suggested actions Conclusion Outline

A member of CGIAR consortium Importance of cassava and cassava in Nigeria  Global cassava production in 2013 was 276 million MT. Nigeria, the top producer, accounted for 19% of the total.  Global demand has been growing significantly between 2004 and 2013  Global Cassava Development Strategy study (IFAD and FAO).  Vision 2020 study of the CGIAR on Root and Tuber crops.  NEPAD recognized cassava as a powerful poverty fighter.  Enormous potential of cassava: Lessons can be drawn from success stories of cassava’s role in agricultural transformation from countries such as Thailand, and Vietnam.

A member of CGIAR consortium

A member of CGIAR consortium

A member of CGIAR consortium Cassava Uses Every part of the cassava plant can be utilized : Roots: diverse uses for food and industries. Stems: planting material. Leaves: human consumption and animal feed. Root peels and true seeds: animal feed.

A member of CGIAR consortium Government Policies to promote cassava transformation. Presidential Initiative on Cassava launched by President Olusegun Obasanjo in 2002 with specific terms of reference to evolve strategies to: 1.Increase production with a view to meeting the local food needs of Nigeria. 2.Improve post harvest management and processing of cassava. 3.Promote local industrial utilization of cassava products. 4.Promote export to meet the target earning of $5,000,000, yearly. 5.Create marketing/linkage to industries and effect co-operative development.

A member of CGIAR consortium Agricultural Transformation Agenda (ATA) in 2012 Private sector-driven, agri-business based, development of commodity value chains to create wealth, attain industrialization and sustain livelihood. Notwithstanding the significant achievements, ATA did not deliver on all the targets identified because of the many challenges faced. An important first step towards rediscovering the past glory in agriculture in Nigeria.

A member of CGIAR consortium Agricultural Sector Roadmap titled "The Green Alternative: The Agricultural Promotion Policy increase agriculture’s share of the GDP to 23%. increase the share of labor force to 70%. increase agricultural activity mix by 85% in crop production with a 15% increase in livestock and other non-crop. seeks to enhance the country’s foreign exchange earning capacity through agricultural exports with intent to grow the agriculture’s share of non-oil exports earnings to 75%. facilitate the government’s capacity to meet its obligations to Nigerians on food security, safety & quality nutrition as well as increase agriculture’s share of the budget by 2.0%.

A member of CGIAR consortium Cassava value chain in Nigeria Remains highly fragmented Production Aggregation and trade Processing: rural processing is fragmented and rudimentary Enduse: distribution is fragmented.

A member of CGIAR consortium Challenges to Development of the Cassava Value Chain  Low yields.  Fragmented, smaller-holder farms.  Limited adoption of improved seeds.  Low use of herbicides.  Limited use of fertilizers and irrigation.  High labor use.  Low use of mechanization.  High prices of cassava roots.  Limited access to finance.  Trade and transport.  Weak access to markets.

A member of CGIAR consortium Cassava - Opportunities Diverse end-uses Huge & untapped market opportunities

A member of CGIAR consortium Target Cassava Value Chains Value addition remains one of the largest opportunities for Nigeria’s cassava sub- sector. During ATA, 5 major cassava value chains are proposed for industrialization based on the demand and supply side targets: starch, chips, high fructose cassava sweeteners (HFCS), ethanol, and high quality cassava flour (HQCF). Dalberg/IDH/Grow Africa, 2015 analyses based on the demand and supply side targets, prioritized four value chains [(1) food-grade ethanol, (2) Food-grade (native) starch, (3) HQCF for biscuits and snacks, and (4)glucose and sweeteners]. In the recent Green Alternative (Agricultural Promotion Policy ), commercial production and exports of Cassava was prioritized, and hence three value chains (starch, chips and ethanol) were prioritized. These value chains offer tremendous potential to fuel economic growth through job creation especially for women and youth, improved food security and wealth generation.

A member of CGIAR consortium Supply and Demand Relationships between Cassava Farmers, Processors, and End-users Vicious cycle of supply and demand relationships between farmers, processors, and end-users.

A member of CGIAR consortium Suggested Actions Challenge today is to increase productivity, marketing opportunities and profitability through effective and efficient cassava value chains development. Improving productivity along the entire value chains is critical for competiveness. Increasing the efficiency and the competiveness of cassava value chains, and resolving the issue of the supply-demand relationships between farmers, processors, and end-users provide avenues for unlocking the opportunities for cassava. Develop a market-oriented strategy Launch a roadmap for the cassava sub-sector reform Create incentives and efficient input delivery systems Adoption of labor saving devices Invest in feeder road infrastructure to ease access to farms Build strong farmer groups/clusters and linkages Government-backed credit guarantees and low-interest Create output markets links for farmers, processors, etc. Facilitate large investments in industries using cassava

A member of CGIAR consortium Facilitate public-private partnerships Develop new policies, institutions and financing structures to drive sector growth Improve the legal framework in land acquisition and transfer to ensure ownership and right of use Create specific women and youth agribusiness programs Adopt a broad-based local content policy Test the feasibility of the E10 policy Promote low-cost chipping machines, concrete drying floors and rack dryers Continue funding R & D

A member of CGIAR consortium For financing PPP for the target cassava value chains interventions over a five year period, US$ 625 million is proposed below for personnel (10%), operations (Services & Recurrent costs) (40 %), and infrastructure (50%). Financing Value ChainFunding (million US$) High Quality Cassava Flour100 Starch125 Chips100 High Fructose Sweeteners150 Ethanol150 Total625

A member of CGIAR consortium Key Messages Adopt a market-oriented strategy with emphasis on value-addition and productivity enhancement along the value-chain. Pursue a deliberate, strategic, sustained set of actions for a private-sector- led cassava transformation. Understand that there are no “quick fixes” for sustained economic growth (7-10%/year) and poverty alleviation. Adhere to the principle of subsidiarity. Conclusion

A member of CGIAR consortium Thanks for your attention Nigerian agricultural prosperity depends on our collective action