This afternoon, I am going to be talking about “How to start a profitable cassava processing business”.
The cassava processing business is highly lucrative. There are different products and by-products that can be gotten from the processing of cassava and some which are yet to be or barely tapped into by processors in Nigeria.
Cassava can be processed into two different product categories:
Primary products (for food) which include: Garri, Lafun, and Fufu.
Secondary products for the industrial market value which include: Chips, Pellets, High quality cassava flour (HQCF), Alcohol, and Starch which are vital raw materials in the livestock feed, alcohol/ethanol, textile, confectionary, wood, food, pharmaceutical, and beverage industry.
These products are also tradable in the international market.
The first step to consider in starting cassava processing business is to write a feasibility plan which will guide you to determine the category of product you want to produce and the available market for this product.
It will also guide you with regards to raising the required capital for the business.
Statistics reveal that Nigeria currently imports 96 percent of starch requirements as a local demand of 600,000 tonnes is far from being met. 200,000 tonnes/100 percent of sweeteners used in the country are currently being imported.
For high quality cassava flour ( HQCF), 88 percent of 504 tonnes demanded locally is also imported.
The secondary category is the agribusiness sector which requires tonnes of daily cassava roots.
Therefore, to meet up with this demand you must have a commercial cassava farm or a well structured out-growers scheme to get regular supply.
Oh wow!!! That’s a great background journey!!
I can take questions now.
IITA gives the opportunity to learn the practical on cassava processing. I enjoyed the learning process.
If you can break down “Lucrative” in figures? Like how much capital can be invested into a cassava farm that would yield a certain amount of money???
Just give an example…
Can we only get starch from cassava through industrial process?
Are these products feasible in the local market??
Well,for a cassava farm you it all depends on the number of acres you will want to farm…About 100,000 can start off
Not exactly, you can also process starch manually.
Yes, they can be produce for local markets…
People say there are different types of garri.
Is that true?
If yes, what are the different types and which one is better?
@jobfoluke What is the agri-business value chain in Agriculture? Like what areas of agriculture can anyone build up a business from?