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Turning Cassava into Cash: Opportunities in Nigeria’s Growing Cassava Processing Industry

Nigeria is the world’s largest producer of cassava, a staple food crop that offers enormous potential for processing into various value-added products. The cassava processing industry has witnessed rapid growth and innovation in recent years, providing business and employment opportunities across production, processing, and marketing.

Overview of Cassava in Nigeria

Cassava is a woody shrub cultivated for its starchy, edible tuberous roots and is a major staple food across sub-Saharan Africa. Key facts:

  • Nigeria accounts for 20% of global cassava production, producing over 60 million metric tonnes annually.
  • Cassava is grown in all agro-ecological zones by over 8 million smallholder farmers.
  • The average yield is 12 tonnes per hectare, below the potential of up to 40 tonnes.
  • 60–70% is processed into food products like garri, fufu, and tapioca. 30–40% are sold as fresh roots.
  • Per capita consumption is around 114 kg annually, providing about 40% of daily calorie intake.
  • Cassava generates livelihoods for over 30 million people in production, processing, and marketing.

Traditional Cassava Food Products

Different ethnic groups have various techniques for processing cassava into staple foods:

  • Garri is the most popular derivative from fermented, roasted cassava grits consumed as porridge or snacks across Nigeria.
  • Fufu/Akpu: fermented wet cassava paste boiled into thick balls eaten with soups and stews in Eastern and Southern Nigeria.
  • Lafun is fermented cassava flour made into dough balls dipped in soup in south-west Nigeria.
  • Tapioca/Kpokpo garri: a granulated product from cassava starch used for puddings and breakfast meals.
  • Pupuru: steamed popped cassava grits eaten as snacks or side dishes in the oil-producing Niger Delta region.
  • Abacha, or African salad, is made from shredded cassava tubers soaked to make salad popular in Eastern states.

While most cassava is locally consumed, urbanisation and evolving consumer preferences are creating demand for convenience foods made from cassava.

Emerging cassava food products

Entrepreneurs are innovating new cassava-based convenience food products targeting urban consumers and export markets.

Cassava Flour

  • High quality cassava flour (HQCF) is being promoted as a substitute for wheat flour in baking cakes, bread and pastries due to its lower cost.
  • Companies like Matna Foods, UMZA, and Dufil Prima produce HQCF for industrial buyers.

Cassava Starch

  • Used by major food brands like Nestle and Cadbury as a thickener and binding agent in sauces, soups, and confectionery.
  • Replacing costly corn starch imports. Cassava starch production doubled from 2011 to 2016.

Cassava Chips and Pellets

  • Dried cassava chips and pellets are becoming popular substitutes for barley in brewing lager beer. Nigerian Breweries and Guinness are adopting locally sourced cassava.

Frozen Cassava

  • Used to make convenient ready-to-eat meals and snacks. Export potential to meet African diaspora demand abroad.

Cassava Bread

  • Composite bread with a 20% substitution of wheat flour by cassava flour is being promoted by the government to reduce wheat imports.
  • Bakers like O’Jez Restaurant pioneer commercial production targeting middle-class consumers.

Glucose Syrup

  • Glucose and fructose syrups extracted from cassava are used as sweeteners in beverages and confectionery items like biscuits as a substitute for imported corn syrup.

Emerging industrial cassava products

High starch content makes cassava suitable for various industrial applications.

Ethanol

  • Cassava is feedstock for distilleries producing fuel ethanol to meet Nigeria’s 10% ethanol blending mandate introduced in 2020.
  • Distilleries like Umza Biofuels partner with smallholder farmers as outgrowers, providing markets.

Starch Derivatives

  • Modified starches are used by manufacturers of adhesives, paper, textiles, and pharmaceuticals as stabilisers, binders, emulsifiers, and gelling agents.

Biopolymers

  • Extraction of biodegradable plastics like polylactic acid (PLA) using cassava starch via bacterial fermentation process Can substitute petrochemical plastics.

High-quality cassava peel

  • Cassava peels, a major waste product, can be processed into animal feeds as a nutritious substitute for maize and soybeans. Also have applications as organic fertiliser and biofuels.

Livestock Feeds

  • Cassava tubers and leaves are used to formulate concentrated feeds for poultry, pigs, goats, and farmed fish to reduce reliance on expensive maize and imported feed ingredients.

Key Drivers of Cassava Processing Sector Growth

Several factors make cassava processing an attractive and growing industry in Nigeria:

Rising food demand

  • Rapid urbanisation and rising incomes are increasing demand for convenience and snack foods made from cassava.
  • Population growth to over 400 million by 2050 will drive a massive demand increase.

Import Substitution

  • The policy push to reduce imports of wheat, ethanol, and starch provides incentives for cassava processing through tax breaks and preferential loans.

Growth of the Food Processing Sector

  • The government is actively promoting domestic food processing under the economic diversification agenda. The food and beverage sector grew 46% from 2010 to 2017.

Value-added Exports

  • Export opportunities for cassava derivatives like starch, ethanol, and frozen foods in regional markets Improved productivity enhances competitiveness.

Corporate Procurement

  • Large food, beverage, and manufacturing companies are strategically procuring cassava to cut costs, driven by backward integration goals.

Improved Technologies

  • New equipment and production techniques allow for higher-value products on a commercial scale. It extends shelf life and reduces manual labour.

Supportive government policies

  • Policies like the Cassava Bread Development Fund provide financing. Standards help upgrade processing. VAT exemptions make cassava products affordable.

Lucrative business opportunities

Many lucrative opportunities with low entry barriers exist across the cassava value chain for aspiring entrepreneurs:

Cassava Farming

  • Expand production to meet rising processor demand through partnerships that ensure market access.
  • Adopt high-yielding varieties and good agronomic practices to improve productivity.
  • Tap the extension support programmes of government and development agencies.

Selling of Fresh Cassava

  • Bulk purchase of fresh cassava from farmers at competitive prices for sale to processors and retailers in urban centres.

Traditional food processing

  • Mechanised production of traditional foods like garri, fufu, and lafun for local and export markets
  • Adopt efficient peeling, grating, fermentation, drying, and frying technologies.
  • Utilise cassava peel waste for animal feed or biogas production.

Cassava Flour Milling

  • Establish hammer or disc mills for the production of high-quality cassava flour.
  • Target sales to industrial food processors, bakeries, and biscuit makers.

Starch Extraction

  • Extract and refine food-grade starch for supply to food, confectionery, and beverage companies as stabilisers and binding agents.
  • Partner with pharmaceutical and chemical firms to make industrial-grade starch.

Cassava Bread Baking

  • Bake and market packaged sliced bread, buns, and pastries made with a 20% cassava flour substitution.
  • Strategically locate outlets in urban business districts and high-traffic areas.

Glucose Syrup Manufacturing

  • Produce glucose syrup from cassava starch for use in soft drinks, sweets, jam, ice cream, etc.

High-quality cassava peel production

  • Establish sun-drying and milling equipment to process cassava peels into livestock feed and organic fertiliser.

Ethanol Distillation

  • Obtain licences for commercial-scale distillation of fuel-grade ethanol from fermented cassava mash.
  • Partner with gasoline marketers on long-term offtake agreements.

Waste to Energy: Biogas Plants

  • Install small biogas plants using cassava peel waste to generate electricity for captive use or fee-for-service community distribution.

Key success factors

Key factors entrepreneurs must consider for successful cassava processing ventures:

Access to Raw Materials

  • Ensure reliable supply through outgrower schemes with farmer associations and cooperatives. Provide resources, training, and support.

Strategic Location

  • Site close to cassava-producing areas to minimise transport costs. Proximity to markets is also essential.

Cost-efficient production

  • Adopt labour-saving technologies like peelers and graters to reduce hiring. Maintain high capacity utilisation.

Maintaining Quality

  • Follow good manufacturing practices for sorting, microbial control, and hazard analysis. Invest in testing equipment.

Market Development

  • Actively market products and build recognition through promotions, branding, and vendor partnerships.

Access to Finance

  • Utilise bank loans, microfinance, and government grants, as well as impact investor capital to fund startup and expansion.

Partnerships

  • Collaborate with research institutes for product design innovations and process improvements.

Challenges Facing the Sector

Some challenges need to be addressed for cassava processing to realise its full potential:

Low farm yields

  • Average yields per hectare are less than 50% of their potential. It constrains steady supply volumes for processors.

High energy costs

  • Grid electricity is expensive and erratic. Alternative energy sources are needed to reduce production costs.

Limited processing capacity

  • Few large-scale processors. Fragmented value chain with the dominance of small informal producers

Low product utilisation

  • Most industrial starch and ethanol capacity is idle due to high costs versus imports.

Weak distribution systems

  • Inadequate storage and transport infrastructure makes market access difficult, especially for rural communities.

Limited Financing

  • Processors struggle to raise capital due to short-term bank loans. Private equity and venture capital interest rates are still low.

Future Prospects

Targeted policy reforms and private sector partnerships can help address sector challenges and realise the full economic potential of industrial cassava processing. With its competitive advantages in cassava production, Nigeria could become a globally significant supplier of cassava products. There are bright prospects for innovative entrepreneurs to build highly profitable and scalable cassava processing companies serving national and international markets. The time is ripe to transform cassava from a humble subsistence crop into a major cash crop and industrial raw material for Nigeria.

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