Download Cassava value chain in Nigeria

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
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Outline
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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
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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.
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Cassava Uses
• Every part of the cassava plant can be utilized :
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Roots: diverse uses for food and industries.
Stems: planting material.
Leaves: human consumption and animal feed.
Root peels and true seeds: animal feed.
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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:
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Increase production with a view to meeting the local food needs of Nigeria.
Improve post harvest management and processing of cassava.
Promote local industrial utilization of cassava products.
Promote export to meet the target earning of $5,000,000,000.00 yearly.
Create marketing/linkage to industries and effect co-operative development.
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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.
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Agricultural Sector Roadmap titled "The Green Alternative: The Agricultural
Promotion Policy-2016-2020.
• 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%.
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Cassava value chain in Nigeria
• Remains highly fragmented
• Production
• Aggregation and trade
• Processing: rural processing is fragmented and rudimentary
• Enduse: distribution is fragmented.
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Challenges to Development of the Cassava Value Chain
 Low yields.
 Low use of mechanization.
 Fragmented, smaller-holder farms.
 High prices of cassava roots.
 Limited adoption of improved seeds.
 Limited access to finance.
 Low use of herbicides.
 Trade and transport.
 Limited use of fertilizers and irrigation.
 Weak access to markets.
 High labor use.
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Cassava - Opportunities
Diverse
end-uses
Huge &
untapped
market
opportunities
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Target Cassava Value Chains
• Value addition remains one of the largest opportunities for Nigeria’s cassava subsector.
• 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-2016-2020),
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.
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Supply and Demand Relationships between Cassava
Farmers, Processors, and End-users
Vicious cycle of supply and demand relationships between farmers, processors,
and end-users.
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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.
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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
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• 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
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Financing
• 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%).
Value Chain
Funding (million US$)
2016-2020
High Quality Cassava Flour
100
Starch
125
Chips
100
High Fructose Sweeteners
150
Ethanol
150
Total
625
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Conclusion
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-sectorled 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.
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Nigerian agricultural prosperity depends on our
collective action
Thanks for your attention
[email protected]
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