INVESTMENT POTENTIAL IN CASSAVA VALUE CHAIN

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Presentation transcript:

INVESTMENT POTENTIAL IN CASSAVA VALUE CHAIN Presented by Ogo Ibok (Mrs.) SENCE Agric Limited SENCE Agric

INTRODUCTION Nigeria is the largest producer of cassava in the world but accounts for 0% of global trade in value added cassava products. Cassava production is expected to rise from 34 to 51 million MT per year in Nigeria.

INVESTMENT OPPORTUNITIES The cassava value chain holds many opportunities for every one. Farming Processing Services

CASSAVA VALUE CHAIN Consumption Markets Processing Logistics Production Pre-planting SENCE Agric

Pre-planting (inputs) Planting material (Cassava Stem): approximately 60 bundles per hectare Fertilizer: 9 to 12 bags/ha depending on soil condition Agrochemicals: Pesticide, herbicides Services: Laboratory test (Soil test), land clearing. SENCE Agric

Equipment leasing Presently it cost an average of N150,000 per hectare in Lagos and environs. Low productivity; average yields are 11.7ton/ha due to manual labour. Low productivity = high costs per unit of production. Costs of root production per ton is US$10 per ton higher in Nigeria than in Thailand. SENCE Agric

Production Use of machinery Training (Food safety standards, G.A.P) Efficient production systems Use of machinery Farming software Operational excellence Skilled pool of talent for the sector (farm managers etc.) Access to information (research, improved varieties etc.) Training (Food safety standards, G.A.P)

Logistics Special Purpose Transport Vans. Preservation services Cassava undergoes postharvest physiological deterioration (PPD) which reduces the quality of the produce within 48 house after harvest. Preservation services Cassava an be preserved in various ways such as coating in wax or freezing. This present a huge business opportunity for logistics handling. Storage SENCE Agric

Starch used in Pharmaceuticals Processed foods: Garri, fufu Ethanol Livestock feed Flour Cassava Starch used in Pharmaceuticals Processed foods: Garri, fufu Industrial starch SENCE Agric

Markets Commodities exchange Packaging and branding Product awareness, marketing etc. Export services

Caveat Emptor Feasibility Studies. Start with the market and work backwards. Identify the right variety based on market demand. Aim for operational excellence. Be patient. SENCE Agric

Thank you SENCE Agric