Professional Documents
Culture Documents
5/23/2018
Cassava
MARKET FEASIBILITY STUDY/REPORT
PROPOSED
PREPARED FOR:
DR A. O AKINDELE
PREPARED BY:
ADENIYI EMMANUEL T.
MAY 2018
182/18, first floor Wilberforce house,
Lagos state.
DR A.O Akindele
Ladoke Akiintola university of
Technology, Ogbomosho,
Oyo state.
In accordance with your request we have completed our market feasibility study report
associated with the proposed development of a Hotel/Convention Center to be located in, Idi-
ape area of Ibadan, Oyo state.
The entire study and conclusions reached are based upon our present knowledge and
information with respect to the status and demand characteristics of the subject project’s
competitive lodging and meetings markets.
As in all studies of this type, the estimated results are based upon competent and efficient
management and presume no significant change in the competitive position of the lodging
and meetings industries in the immediate area from that as set forth in this report. They are
also based on our evaluation of the present economy of the region and do not take into
account or make provision for the effect of any sharp rise or decline in economic conditions
not presently foreseeable. To the extent that wages and other operating expenses may
advance over the economic life of the subject project, we expect that prices of rooms and
other services will be adjusted, at least to offset such advances. The terms of our engagement
are such that we have no obligation to revise this report or the estimated annual operating
results to reflect events or conditions which occur subsequent to the date of the completion of
our fieldwork. However, we are available to discuss the necessity for the revision in view of
changes in the economic or market factors affecting the proposed project.
BRIEF CONTENTS:
CHAPTER ONE: CASSAVA PRODUCTION IN NIGERIA
CHAPTER TWO: ANALYSIS OF THE PROCESSING INDUSTRY IN
CASSAVA PRODUCTION
CHAPTER THREE: INDUSTRIAL CASSAVA STARCH PRODUCTION
CHAPTER FOUR: MARKETING ASPECT OF CASSAVA PRODUCTION
REFERENCES:
Reports from the International institute of tropical Agriculture (IITA) and some other
Agricultural research institutes in Nigeria
Growing Cassava in Nigeria: produced by United states Agency for International
Development
Producing garri from Cassava: Jointly produced by IITA, USAID, CTA, UPoCA
Google Search.
SOME ACRONYMS AND ABBREVIATIONS
ADP Agricultural development program
ARCEDEM: African Regional Center for Engineering Designs and
Manufacturing
CAMA Corportate Affairs Commission
CBN Central Bank of Nigeria
CTA Technical Centre for Agricultural and Rural Cooperation
DFID Department of International Development - United
Kingdom
EU European Union
FAOSTAT FAO Statistical Database
FIIRO Federal Institute of Industrial Research, Osodi
FMANR Federal Ministry of Agriculture and Natural Resources
Nigeria
IDEAA Initiative for Development and Equity on African
Agriculture
IFAD International Fund for Agricultural Development
IFPRI International Food Policy Research Institute
IITA International Institute of Tropical Agriculture
LGA Local Government Authority
NEPAD New Partnership for Africa’s Development
NNPC Nigerian National Petroleum Corporation
NRI Natural Resources Institute
PCU Projects Coordinating Unit
PRODA Product Development Agency
RTEP Root and Tuber Expansion Program
RUSEP Rural Sector Enhancement Programme
SAMEG State Agro-Processing and Market Expansion Groups
SCOR Supply Chain Operations Reference
UNAAB University of Agriculture Abeokuta - Nigeria
USAID United States Agency for International Development
, UPoCA The project: Unleashing the Power of Cassava in Africa
CHAPTER ONE
CASSAVA PRODUCTION IN NIGERIA
1.1. INTRODUCTION
Cassava is a very important crop to Nigeria. Its comparative production advantage over other
staples serves to encourage its cultivation even by the resource poor farmers. The crop’s
production is generally thought to require less labor per unit of output than other major
staples. Cassava is able to grow and give reasonable yields in low fertile soils. It is a
good staple whose cultivation if encouraged can provide the nationally required food security
minimum of 2400 calories per person per day.
Recently, production figures ranked Nigeria as the leading producer of cassava in the
world. In 2004, the estimated cassava output from Nigeria was approximately 34 million
tonnes. This production performance has rated Nigeria as the largest cultivator of cassava in the
world. This feat is sequel to the on-going cassava multiplication programme in the
country. In 2002, cassava suddenly gained prominence in Nigeria following the
pronouncement of a presidential initiative on the crop.
The initiative was aimed at using cassava production as the engine of growth in Nigeria.
In recent times, government has encouraged the use of the crop to produce a wide range of
industrial products such as ethanol, glue, glucose syrup and bread. Recently, the Nigerian
government promulgated a law, making it compulsory for bakers to use composite flour of 10
per cent cassava and 90 per cent wheat for bread production. The new regulation which
came into effect, January 2005, stipulated that the large flour mills that supply flour to
bakeries and confectioneries must pre-mix cassava flour with flour.
However, cassava farms just like the other crop farms in Nigeria are the small-scale types
which are characterized by very low productivity. The crucial issue in the Nigerian agriculture
is that of low productivity. The problem of declining crop productivity in Nigeria is important.
Despite all human and material resources devoted to agriculture, the productive efficiency for
most crops still fall under 60 percent [5-7]. Farmers output must therefore be expanded with
existing levels of conventional inputs and technology. More than ever, farmers will have to
produce more efficiently: That is produce maximal output from a given mix of inputs or
use the minimum levels of inputs for a given level of output.
1.2 CURRENT STATUS
Nigerian cassava production is by far the largest in the world; a third more than production in
Brazil and almost double the production of Indonesia and Thailand. Cassava production in other
African countries, the Democratic Republic of the Congo, Ghana, Madagascar, Mozambique,
Tanzania and Uganda appears small in comparison to Nigeria’s substantial output
By zone, the North Central zone produced over 7 million tonnes of cassava a year (1999 to
2002). South South produces over 6 million tonnes ayear while the South West and South East
produce just less than 6 million tonnes a year. The North West and North East are small by
comparison at 2 and 0.14 million tonnes respectively (Table 1).
On a per capita basis, North Central is the highest producing state at .72 tonnes/per person in
2002, followed by South East (.56), South South (.47), South West (.34), North West (.10) and
North East (.01). National per capita production of cassava is .32 tonne/per person.
Stakes that are inclined on the ridge produce tuberous roots in the same direction. The
inclination of the stem and roots provide a leverage which \make harvesting easier than in the
other orientations. In shallow and clayey soils, stakes should be inclined. In the rain forest and
derived savanna, farmers incline their stakes at planting.
1.3.12. Intercropping
Cassava is compatible with many crops when intercropped. The best intercrops of cassava in
Nigeria include maize, melon, groundnut, cowpea and vegetables. Other less important
intercrops particularly in the South-south and Southeastern Nigeria include yam, cocoyam, sweet
potato, plantain and banana. None or high branching varieties of cassava are best for
intercropping. Profuse and low branching varieties will shade light off the intercrops. In medium
and large-scale farms, maize is the best intercrop.
1.5. MECHANICAL
Do double or triple harrowing before planting. Weed with hoes or adapted cutlasses 3 or more
times depending on agro ecology and type of weed. More weeding times is required in the
forest than in the savanna. Weeds with stolon, rhizome, tubers or deep taproot require more
frequent weeding. On a large scale you will require tractor operated weeders.
1.6. CHEMICAL
Several pre and post emergence herbicides exist but only few of them are available in Nigeria
for controlling weeds in a cassava farm. In the forest zone apply pre-emergence herbicides like
premextra or dual while in the savanna zone you can apply primextra, dual or cotoran multi
immediately after planting to keep your farm weed free for periods ranging from 4-8 weeks.
Consult manufacturers’ labels for guidelines and follow the rates specified for each chemical.
Apply post-emergence herbicides (paraquat or gramozone) as soon as weeds begin to emerge after
the pre-emergence herbicide treatment. They are basically non-selective, localized contact
herbicides and should be sprayed with a guard to ensure that only the weeds receive the
chemical. If your field is infested with difficult-to-control weeds like Spear grass (Imperata
cylindrica) carefully apply systemic herbicides like Glyphosate, Fusilade or Sarosate. Follow the
manufacturers’ guidelines for each of the herbicides. Weather conditions affect herbicide
performance. Do not apply herbicides soon after a heavy rainfall or when it is likely to rain to
avoid diluting the chemical and reducing its effectiveness. For best results gramozone should be
sprayed only when you are sure of having at least 3 hours of sunshine after spraying. For cost
effectiveness and results use skilled staff for chemical weed control.
1.8.1. STEMS
There is usually a high demand for planting materials of improved varieties at the beginning of
the planting season. You can harvest, package and sell stems to increase your profit margin from
the farm.
Stem harvesting can be total or partial. In total harvesting all the stems are pruned leaving only
the stumps to regrow while in partial harvesting a few stems are pruned from plants having
multiple stems, In a well-established production field 400 or more bundles of stem can be
harvested per hectare depending on the variety, plant population and environment.
1.8.2. LEAVES
As vegetable, harvest only the young succulent leaves and process. As silage for animal feed, all
the green leaves including the young parts of the stem are harvested, chopped and ensiled.
1.9.1. DISEASES
1.9.1.1. CASSAVA MOSAIC DISEASE (CMD)
The disease is caused by a complex of viruses and transmitted by a whitefly (Bemisia tabaci).
Leaves become smaller, wrinkled and chlorotic. In severe cases root yield losses are very high
(near 100%). The best control measure is to plant resistant varieties. Rogue off infected plants
during the early stage to reduce secondary spread. Intercrop with tall growing plants like maize
to reduce vector movement and transmission of the disease.
1.9.2.3. TERMITES
Highly voracious white ants. They bore through stakes and eat them up as soon as they are
planted or later in the season thus destroying whole plants. The damage is most severe when
there is moisture stress particularly in the savanna belt. Plant when the rains have stabilized and
the soil is moist. Pre-sprout stakes in plastic bags for 3-5 days before planting for rapid take
off. Plant vertically to reduce lodging which can predispose plants to termite damage. Keep fields
free of dead woods and crop residues. Destroy anthills and treat with D-Aldrex 20 as
recommended by the manufacturer.
2.3.1. Garri:
Garri is a creamy-white, granular flour with a slightly fermented flavor and a slightly sour
taste made from fermented, gelatinized fresh cassava tubers. Garri is widely known in
Nigeria and other West African countries.
It is commonly consumed either by being soaked in cold water with sugar, coconut, roasted
groundnuts, dry fish, or boiled cowpea as complements or as a paste made with hot water and
eaten with vegetable sauce. When properly stored, it has a shelf-life of six months or more.
2.3.1.3. Hygiene
Fresh cassava is a moist, low-acid food that is susceptible to bacterial and fungal growth.
Hygienic practices, especially in the early stages of processing, should therefore ensure
minimal contamination. All waste materials from the process should be removed from the site
as they are produced to avoid the risk of cross-contamination.
Sieving is important to obtain a high-quality product, free of fibrous contaminants and with
similar-sized granules. The granules must be roasted to about 80 ºC/175 ºF to achieve partial
gelatinization of the starch. If lower temperatures are used, the product simply dries
producing a dry white powder. Too high a temperature will cause charring of the product and
make it stick to the roasting pan.
Garri is made by sieving the wet cake into small pieces - known as grits - and then roasting or
frying the grits in a hot frying tray or pan to form the final dry and crispy product. Garri is
normally white or cream, but will be yellow when made from yellow cassava roots or when
fried with palm oil. It is important to make sure the taste and smell is acceptable to local
consumers. Yellow cassava roots and palm oil are rich in vitamin A and therefore make
nutritious garri.
The product should be free from mould, insects (dead or alive), dirt and any other material that
could be hazardous to health.
The ideal moisture content is 47-50 %, and this is assessed visually by experienced garri
producers.
Garri is usually classified by its particle size:
• Extra-fine: passes through 0.25 mm to 0.5 mm aperture sieve
• Fine: passes through 0.5 mm to 1 mm aperture sieve
• Coarse: passes through 1 mm to 1.25 mm aperture sieve
• Extra Coarse: passes through 1.25 mm to 2.0 mm aperture sieve.
Step 5: Bagging and storing the garri
The product is hygroscopic (it absorbs moisture from the air) and should be packed in airtight
and moisture-proof bags, especially in areas of high humidity, to prevent mold growth.
This step can be highlighted as follows:
Remove the garri from the roasting tray and spread it thinly on a raised platform in the
open air to cool and dry. Several batches can be put on the cooling tray.
Sieve the garri with a standard size sieve to produce fine granules, which are collected in
a plastic bowl.
Use a grinder to break the large granules into smaller ones
When the garri granules are all the same size, pour the garri into a plastic lining inside a
woven polythene sack
Weigh the sack of garri to make sure it is the correct weight, as required by the market:
e.g.,
25 kg, 50 kg or 65 kg. Seal the sack manually or with a bag sealer (if available) to keep
the garri clean and fresh during storage.
Pile the sacks on pallets or a raised platform and keep them in a cool, dry place; the garri
will keep for up to a year in these conditions
1. Weighing Balance
2. Washing Machine
3. Presser
4. Grater
5. Granulator
6. Sieves
7. Fryers/Rotary Dryers
9. Sealer
2.3.2. Fufu
Fufu is a fermented wet-paste made from cassava. It is ranked next to garri as an indigenous
food for most Nigerians in the south. Fufu is made by steeping whole or cut peeled cassava
roots in water to ferment for a maximum of three days, depending on ambient temperature.
During steeping, fermentation decreases the pH, softens the roots, and helps to reduce
potentially toxic cyanogenic compounds. When sufficiently soft, the roots are taken out,
broken by hand, and sieved to remove the fibers.
At present, processors sieve manually by adding water to the retted mass on nylon or cloth
screens. The fiber produced as a by-product is sold for animal feed, either in its wet form or
after sun-drying. The sieved mass is allowed to sediment in a large container for about 24
hours. After sedimentation, the water is poured off while the fine, clean sediment (mainly
starch) is dewatered using a high powered Press. The cake is then sifted before drying.
Apart from being easy to prepare the consumable form, dried fufu has the advantages of
having a longer shelf life, being more convenient to store, and less bulky. When cooked, fufu
is a creamy/white smooth textured product. When properly packaged and stored, dried fufu
flour has a shelf-life of six months or more.
2.3.2.1. Processing Equipment’s
1. Weighing Balance
2. Washing Machine
3. Presser
4. Grater
5. Rotary Dryer
7. Sealer
The design should ensure that all parts of the equipment are accessible for efficient cleaning.
Materials used to fabricate equipment should maintain a surface that is easily cleaned. The
equipment should be located to allow adequate maintenance and cleaning and should provide
easy and convenient handling of raw material and products.
Operators must consider the occupational safety of processing staff and prevent chemical,
physical, and microbiological contamination of cassava and its products. The equipment
should function according to intended use.
2.3.3. Lafun
Lafun is a fibrous powdery form of cassava similar to fufu in Nigeria. The method of
production of lafun is different from that of fufu. In the traditional preparation, fresh cassava
roots are cut into chunks and steeped for 3-4 days or until the roots become soft.
The fermented roots are peeled, broken up into small pieces, and sun dried on mats, flat
rocks, cement floors, or the roofs of houses. The dried pieces are milled into flour.
Alternatively, chips are made directly from fresh roots, cut into chunks, and sun dried. Drying
takes 2-4 days, depending on the weather. Unlike fufu, the fibers in the retted root for lafun
are dried along with the mash and later sieved out. Thus, lafun is coarser than fufu in texture.
The flour is made into dough with boiling water before consumption. When properly stored,
it has a shelf-life of six months or more.
2.3.4. Tapioca
Tapioca meal is made from partly gelatinized cassava starch through the application of heat
treatment to moist mash in shallow pans.
When heated, the wet granules gelatinize, burst, and stick together. The mass is stirred to
prevent scorching. It is manufactured in the form of irregular lumps called grits or in
perfectly round beads. The grits are made into a grained product by milling gelatinized lumps
and sifting. Tapioca is consumed in many parts of West Africa. It is usually soaked or cooked
in water; sugar and or milk are added.
2.3.4.1 Processing Equipment’s
1. Weighing-Balance
2. Washing-Machines
3. Pressers
4. Graters
5. Extractor
6. Sieves
7. Fryers/Rotary-Dryer
8. Hammer Mill
9. Sealer
2.3.5. Kpokpogari
This product is also food-based but is predominantly prepared and eaten in the South South
states, especially Delta state.
2.3.8. Ethanol
Ethanol is generally produced by the fermentation of sugar, cellulose, or converted starch and
has a long history. In Nigeria, local production of ethanol from maize, guinea corn, millet,
other starchy substrates, and cellulose is as old as the country itself. Apart from food and
pharmaceutical uses, ethanol is finding itself an alternative use for biofuel in most of the
developed world.
2.3.9. Starch
Starch is one of the most abundant substances in nature, a renewable and almost unlimited
resource. Starch is produced from grain or root crops. It is mainly used as food, but is also
readily converted chemically, physically, and biologically into many useful products to date,
starch is used to produce such diverse products as food, paper, textiles, adhesives, beverages,
confectionery, pharmaceuticals, and building materials. Cassava starch has many remarkable
characteristics, including high paste viscosity, high paste clarity, and high freeze-thaw
stability, which are advantageous to many industries.
Cassava starch is produced primarily by the wet milling of fresh cassava roots but in some
countries such as Thailand it is produced from dry cassava chips. Starch is the main
constituent of cassava. About 25% starch may be obtained from mature, good quality tubers.
About 60 % starch may be obtained from dry cassava chips and about 10 % dry pulp may be
obtained per 100 kg of cassava roots.
Fresh tubers are processed during season and dry chips during the off-season in some
countries. Extraction of starch from fresh cassava roots (Fig. 1) can be divided into five main
stages: preparation (peeling and washing), rasping/pulping/grating, purification (starch
washing), dewatering and drying, and finishing (milling and packaging).
For cassava, the process of starch extraction is relatively simple as there are only small
amounts of secondary substances, such as protein, in the roots. When cassava roots are
harvested or selected for starch extraction, age and root quality are critical factors. Cassava
roots need to be processed almost immediately after harvest, as the roots are highly
perishable and enzymatic processes accelerate deterioration within 1-2 days. A first-rate
quality starch can be obtained from cassava using only water, and this makes the processing
of cassava starch and flour particularly suitable for developing countries and rural industries.
There is usually about 2-3% loss of weight during the process. Pellets have the following
advantages over chips: quality is more uniform; they occupy 25-30% less space than chips,
thus reducing the cost of transport and storage; handling charges for loading and unloading
are also cheaper; they usually reach their destination sound and undamaged, while a great
part of a cargo of sliced chips is damaged in long-distance shipment because of sweating and
heating.
TOTAL 6,230,000.00
Table 2.4
TOTAL 3,000,000.00
TOTAL 1,880,000.00
2.7. Location
The factory should be located in an area that is free from environmental pollution and any industrial
activities that can pose a serious threat to contaminating food. Areas subject to flooding should be
avoided unless sufficient safeguards are provided.
The site should be cleared ground from waste, either liquid or solid, can be removed effectively and
away from sources of insects and rodents. It should have a good supply of potable water and, if
required, electricity. An access road for bringing in raw materials and packaging, and sending out
products, is usually essential.
Equipment must be designed to dry, fry, cool or store food to achieve the required food
temperature as rapidly as necessary in the interests of food safety and suitability, and to
maintain them effectively.
An organic staff structure is suitable for a startup cassava processing factory. This implies that there
will be one level of management in which there will be a Manager, an assistant manager and a
supervisor who will oversee other members of staff. The staff required to run the factory will include
the following described below:
TOTAL #168,000
CHAPTER THREE
Industrial cassava starch production
3.0. INTRODUCTION:
Traditionally, wet cassava starch is produced by cassava processors either as a direct product or
as a byproduct resulting from cassava processing into other products such as Gari, Fufu, etc.
One of the factors responsible for the high post-harvest loss for cassava is the inadequacy of
the traditional processing method to convert cassava into less perishable products such as
cassava starch.
To address this issue and make cassava starch readily available in the form useful in the
industries the Federal Institute of Industrial Research, Oshodi (FIIRO) developed and perfected
the process technology for production of cassava starch useful for various applications in the
user industries. In Nigeria, the prospect for mechanized cassava processing is very high.
There is high demand for cassava starch in Nigeria. User industries include textile,
pharmaceuticals, oil drilling, paper and packaging, gum and adhesives, chemical and household
products manufacturing, battery, drinks and beverages, foods and so on. The desire to conserve
foreign exchange and reduce import dependency is the driving force for demand for cassava
starch especially as regards its partial substitution for corn starch in user industries. The national
demand for cassava starch is in excess of 350,000 tonnes/annum. The current domestic
production capacity to meet the estimated demand for cassava starch is less than 20 per cent. The
current price/tonne of cassava starch ranges between #150, 000.00 - N180, 000.00.
The only raw material for production of cassava starch is fresh cassava root. Cassava is grown in
virtually all the thirty-six (36) states in Nigeria and Nigeria has been rated the highest producer of
cassava in the world with production estimate of about 40 million metric tonnes.
The cost varies for the machinery depending on the capacity which could vary from 2-5 tons per
day.
3.4. PRODUCTION PLAN
For a Five year production plan, we are going to look subsequently into the Costs that will be
incurred in venturing into the business, and also its benefits. Though, they might not have been
explicitly enumerated because to a lot of factors and also time, It has been summarized into a way
that can be easily grasped and the message ultimately passed across.
The following assumptions are made in arriving at the proposed production programme.
For efficient operation of this venture, both skilled and unskilled personnel are required. These
consist of the production, administrative/account and marketing personnel. Staff matters,
finance/account, store management, security, purchasing and other administrative function are
handled by the administration/account division, while the production division to take charge of
production. Marketing activities are the responsibilities of all the staff especially the marketing
division staff. About fifty (50) personnel are required for the project take off.
3.10. CONCLUSION:
Although, from the tables and all the information presented in this report about Cassava Starch
production, it could be realized that it requires a really large sum of Money as Capital to venture
into this business. A quote by one of the richest Men in the world who is well renowned in
Investments says, "The ideal business is one that earns very high returns on capital and
that keeps using lots of capital at those high returns. That becomes a compounding
machine."-- Warren Buffett. Before we can get, we first need to give, so also before we can
rake large sum of money in profits from a business, there is the need to invest large sum of
money into that Business.
Starch production from cassava has a ready market in Nigeria and with adequate investment,
there is no limit to what can be achieved over a long period of time.
CHAPTER FOUR
In a survey carried out by the International Institute of Tropical Agriculture (IITA) in 2001 to
discover the potential number of cassava industrial users, the method used was to list all
potential users of industrial cassava from the National Telephone Directory Yellow Pages
Section. It was believed that such a listing of industries would represent an unbiased cross-
section of like industries, at least in terms of their desire to be listed in the Yellow Pages
telephone directory. Whether they still exist or not as an industry in Nigeria were irrelevant to
the purpose of getting a general idea of preferred locations for industrial cassava production
and processing.
The categories used to collect the yellow pages listings included all possible industries,
namely, Baby Food and Products Manufacturers, Bakers and Confectioners, Biscuit
Manufacturers, Canned Food Manufacturers, Confectionery Raw Material Suppliers,
Supermarkets and Department Stores, Explosives, Farmers, Fish Farmers, Flour Mills, Food
Contractors and Foodstuffs Suppliers, Food Processing Companies, Foods and Beverage
Producers, Garri Processing Industries, Grinding Mills, Hotels, Restaurants, Livestock Feed
Manufacturers, Mud Products, Newspaper Manufacturers, Packaging Industries, Paper Bags
Manufacturers, Paper Mills, Converters and Distributors, Poultry Farms, Poultry Feeds (Feed
Mills), Shipping Companies and Agents, Snack Stores and Suppliers, Starch Mills, Textile
Manufacturers, Timber Industries, Trade Organizations, Trade Promotion and Transporters.
Of the 2, 356 firms found, some were obviously more interesting than others. For example,
poultry farms and feed mills are meaningful because of the extent to which they could utilize
cassava in their feeds. Food processing industries such as bakeries and flourmills are also
interesting because of the potential to substitute cassava for wheat flour.
Therefore, we can estimate the size and location of the majority of these firms as they operate
in Nigeria, based on the findings in 2001. Below, there is an illustration of a map showing the
concentration of bakeries and textile mills:
Existing buyers of Peak’s flash dryers are predominantly chemical companies from the
Sango-Lagos Axis and a few beverages and food industries. Prospective buyers include
Nigerian Distilleries in Ota who want 150 tonnes of cassava flour per day for ethanol
production. DeUnited Nig Ltd., is looking to produce 60 000 tonne of cassava flour per
month for noodles (Indomie Noodles). Oil companies are interested in producing cassava
starch for drilling muds.
Textile industries, although not currently using local cassava starch negotiations are currently
underway between the Government, cassava processors and the textile industry. Finally,
paper mills such as Iwop in Paper Mill in Ogun State and Okui Ibokwe Paper Mill in Akwa
Ibom State may also patronize cassava starch in the near future.
In previous Chapter, types of processed cassava were discussed. The Cassava products which
are considered as industrial needs are: 1. Starch 2.Flour 3.Chips 4.Pellets 5.Ethanol
4.1. Competition
1 Matna Foods and Km 19, Akure-Owo Express- Cassava Starch 24,000 tons 1988
Company Limited way, Owo
Fax: 034-244883
Ondo State
2 B&T Ventures Nigeria Jerusalem Estate, off Arulegun Cassava Chips 36 tons 1989
Limited Road, ojoo, Ibaba.
Cassava Pellets
Tel: 08023501031
Oyo State.
Ogun State
4 National Root Crops Umudike, Umuahia Abia State Cassava Chips 150 tons 1976
Research Institute,
Cassava Pellets
Umudike
Cassava Starch
5 Jonrinson's D.A. & Plot 1, Sylvanus Igbodu Close, Cassava Starch 2000 tons 1992
Co. Ltd
YAMCO Bus Stop, Bada Rd., Cassava
Adhesives
Ayobo via Ipaja
Cassava Pellets
Tel: 0802 324 0626
Cassva Flour
Lagos State
6 Yinka Industries and Seyi Villa, Oyin Rd, Ado Ekiti Garri 250 tons 1982
Agric. Company
Ado-Ekiti
Tel: 030-250338
Ekiti State
4.2. FINANCIAL ANALYSIS
Start Up Costs
N2,700,000 2,250,000
N24,000 N486,720 N224,800
Monthly Total Sales (30ton) (30ton) (24bucket) (312bowl) (8160congos)
Monthly Gross
Profit (excluding
salaries and
operating costs) N1,620,000 N1,170,000 N12,000 N342,720 N100,800
4.3. RECOMMENDATION
Experienced manager should be employed to oversee the affairs of the business. It will also
be advised that an experience Engineer/Machine operator be employed to handle the
machines. We also advise that at the start the Accountant can also pay the role of the
Secretary. It is good to have competent personnel to handle the business’ account. This
structure could be improved upon as the business grows. The need for innovative cassava
processing technologies is also enormous.
4.4. CONCLUSION
Cassava Processing is an emerging sector with huge prospects of returns. The business is
such that ensures maximum profitability and it is certain that funds invested will be
recovered.
The management the Company will guarantee that all operational facilities are efficiently
maintained and serviced at timely intervals; also, funds will be carefully managed and
circulated especially in the areas of marketing, distribution of products and in the purchase of
necessary materials.
With proper implementation, effective and prudent management, the Company will make
more than the projected profits in the plan.