Cassava Processing and Marketing in Western and Central Africa

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Cassava processing and marketing in

Western and Central Africa


VIth ANNUAL DONOR MEETING
9-11 May 2006
Casa San Bernardo - Rome, Italy

Cassava processing and marketing


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

Cassava processing and marketing


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

Cassava processing and marketing


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

Cassava processing and marketing


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

Cassava processing and marketing


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

Cassava processing and marketing


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

Cassava processing and marketing


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 20-
22 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

Cassava processing and marketing


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

Cassava processing and marketing


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.

Cassava processing and marketing


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)
Cassava processing and marketing
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

Cassava processing and marketing


Cassava processing and marketing
The end

Cassava processing and marketing


Market opportunities by countries receiving
IFAD support
Market Product Market Ranking Opportunity
Geography Timeframe

Traditional food products 1 Short term

Animal Feed 3 Mid term


Domestic
Benin
Flour for bakery and confectionary 3 Mid term
Cameroon
industry
Regional Traditional food products 2 Short term

Traditional food products 1 Short term

Animal Feed 3 Mid Term


Domestic Flour for bakery and confectionary 3 Short Term
Ghana industry (Nigeria) /
Nigeria Mid Term
Starch 5 Long Term

Traditional food products 2 Short term


Regional
Starch 5 Long Term
Cassava processing and marketing
WCA SWOT: Opportunites & Threats

 Growing urbanization, new  Aggressive competition for cassava


distribution channels (supermarkets) industrial use (i.e. Asia)

 Changing consumers food habits,  Low international market prices


demand for convenience food
 Low local consumer purchasing power
 New markets can be developed (eg.
small scale animal feed or HQCF)  Changing consumers food habits

 Intensifying cassava-based human  Added value grows downstream in the


food processing and trade commodity chain

 Governments have started to give  Different tariff structures in the sub-


attention to cassava industry region; sector policies not aligned
development
 Imported cereals subsidies
 NEPAD Initiative on Cassava
(NPACI) and Donors’ interest
Cassava processing and marketing
WCA SWOT: Strengths & Weaknesses

 Large, traditional food market  Smallholder farmers commercialize only


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

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