1. Cassava processing and marketing in Western and Central Africa VIth ANNUAL DONOR MEETING 9-11 May 2006 Casa San Bernardo - Rome, Italy

2. IFAD has been supporting the cassava sector since 1996
USD 100m invested to date in regional programmes in Ghana, Nigeria, Cameroon and Benin and expanding further in the Congo region
Cassava important in household food security and poverty alleviation in rural areas
Cassava development offers strong targeting opportunities: women are the primary processors
Cassava has a future strategic dimension: urban population growth averaging 4-6% per annum
Cassava regional market in WCA more and more integrated: important trade opportunities

3. Lessons learned and moving forward
Focusing on supply has had important results in smallholder productivity growth: it is time to focus more on demand and work backwards to link to supply
Accessing the market is key and the future focus area
Markets are local, national, regional and international
National efforts, pursued by IFAD through national programmes, have not permitted experience and knowledge sharing: thinking regionally is key
Regional policies are shaping more and more national policies

4. The Market is Key Market demand drives processing and production
There are “many markets” for cassava:
The traditional food market
The feed market
The food-grade flour market
The starch and derivates market
The ethanol market
Each market defines a production, processing and marketing system with specific requirements
Processing and production must comply with market requirements
Production
Processing
Marketing

5. Which market to access?
Traditional food products: the growing, vibrant food market dominates 95% of the cassava market in WCA and will remain dominant in the short/medium term
High quality cassava flour: Nigeria’s recent policy of 10% inclusion of cassava flour in bread can offer important demand and has prospects for the short/medium term
Animal feed: meat and poultry consumption expected to increase in the region (Nigeria has banned poultry imports) and cassava as feed can reduce animal feed costs by 30%- has potential in the short/medium term
Industrial use of cassava: starch, ethanol, etc. organizing cost-efficient cassava supply difficult; a viable option possibly in the long run, in Nigeria possibly in the medium term
International markets: currently not an option –competition from Asia

6. And therefore...think regionally, strengthen nationally
In the short and medium term, regional and national markets should remain the preferred targets
Identifying opportunities is not enough: ability to deliver constant quality and quantity is a must!
National systems should build on strengths: intensification and diversification of existing (food) product markets
National programmes should not re-invent the wheel: exchange lessons learned amongst the different programmes to go faster
Spur dialogue and partnerships at all levels to support efforts and strengthen the industry- help shape regional policies conducive to cassava production, processing and marketing

7. Linking cassava markets to smallholder producers: IFAD’s viewpoint
Promote: competitive and market-based cassava commodity chains
Identify: weak areas of the chain and intervene
Establish: private sector partnerships for accessing markets and developing market linkages
Innovate: production, processing marketing
Strengthen: smallholder farming and rural enterprise development
Equip: the rural poor to respond to market signals and requirements
Always remember: Improve the target group’s bargaining power to access more value addition from the CC

8. Regional Processing and Marketing Initiative on Cassava (RPMIC)
Objective: to make existing and future IFAD cassava-related programmes more effective from a marketing standpoint through proper coordination among them and with other similar non-IFAD initiatives
Regional Workshop held in Accra, Ghana on March 2006 to launch the RPMIC
50 participants from IFAD-funded projects, research organizations, private sector partners, farmer organizations and donors attended
An Accra Action plan is one of the major results

9. The objectives are as follows:
Accra Action Plan I: Upgrading of traditional food products cassava chains
The objectives are as follows:
Develop and promote best practice processing facilities. They should respond to market requirements, be affordable for the rural poor, respect product quality, hygiene and environmental aspects.;
Contribute to the standardization of processing equipment in West and Central Africa;
Test the introduction of improved retail packaging at a large scale;
“Bring cassava in the supermarket”: develop the domestic niche market for high quality cassava products by establishing partnerships with private sector

10. Accra Action Plan II: The High Quality Cassava Flour Commodity Chain
The objectives are:
to set up (one or two) concrete value chains for high-quality cassava flour in each of the four countries (eventually also in Sierra Leone). In order to reach this goal, RPMIC will establish partnerships with private sector processors;
to work on HQCF drying technology in order to bring down the cost of drying; the project is only interested in technology that can bring down the cost of drying significantly, not in marginal technical improvements;
to establish a regional learning and exchange network on the HQCF market segment.

11. Accra Action Plan III: The Industrial Raw Material Cassava Commodity Chain
The objective is:
To develop supply chains for interested industrial users of cassava. The action plan will focus on the organisation of small farmers in outgrower schemes in order to make cassava available as raw material for:
Feed: Pigs, poultry, fish, ruminants, camels, horses
Unfermented flour: food / industrial, bakeries, confectionaries, plywood and glues
Ethanol: strong growing markets with demand > than a billion litres in Nigeria and Ghana:
Starch: Potential uses and demand (textiles, food & beverages industries, paper & plywood, oil industry, plastics & glues)

12. Accra Action Plan IV: RPMIC Management and Information Sharing Activities
Secretariat established to support and monitor the implementation of the action plans
The secretariat will facilitate and promote the organisation of regional learning and exchange events
The secretariat will organize and promote training on market-oriented themes
The secretariat will facilitate linkages with regional private sector operators
Information sharing will take place through linkages established with IFAD’s FIDAFRIQUE internet-based information network

14. The end

15. Market opportunities by countries receiving IFAD support
Geography
Product Market
Ranking
Opportunity
Timeframe
Benin
Cameroon
Domestic
Traditional food products 1
Short term
Animal Feed 3
Mid term
Flour for bakery and confectionary industry
Regional 2
Ghana
Nigeria
Mid Term
Short Term (Nigeria) /
Starch 5
Long Term

16. WCA SWOT: Opportunites & Threats
Growing urbanization, new distribution channels (supermarkets)
Changing consumers food habits, demand for convenience food
New markets can be developed (eg. small scale animal feed or HQCF)
Intensifying cassava-based human food processing and trade
Governments have started to give attention to cassava industry development
NEPAD Initiative on Cassava (NPACI) and Donors’ interest
Aggressive competition for cassava industrial use (i.e. Asia)
Low international market prices
Low local consumer purchasing power
Changing consumers food habits
Added value grows downstream in the commodity chain
Different tariff structures in the sub-region; sector policies not aligned
Imported cereals subsidies

17. WCA SWOT: Strengths & Weaknesses
Large, traditional food market
Although mostly informal, very widespread availability of food-related processing and trade
Cross border trade channels already exist
Cassava is price competitive in some product markets (eg. animal feed)
IITA (& other research centers) experience and knowledge
Consensus on winning factors for high rate cassava growth
Smallholder farmers commercialize only a minor part of production
Land tenure regulation uncertainties
Market infrastructure need improvements
Fresh roots too expensive for industry
Commodity Chains at embryonic stage
Policy makers support does not necessarily match business needs
Industrial grade processing not existing
Long term price cycles