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Unlocking Opportunities in Nigeria’s Cassava Value Chain

  • Nigeria, Trade
  • April 25, 2024

Cassava, a staple crop in Nigeria, holds immense potential for economic growth and development. With an annual production of 50 million metric tons (MMT) (FAO, 2020), Nigeria is the largest producer of cassava globally. Let’s delve into the cassava value chain and explore the opportunities that await.

Production:

  • 50 MMT annual production (FAO, 2020)
  • 3.5-4 million hectares cultivated (NBS, 2019)
  • Average yield: 20-25 tons per hectare (NRCRI, 2019)

Processing:

  • 3 MMT capacity for flour milling (FMN, 2020)
  • 2 MMT capacity for garri processing (NBS, 2019)
  • 1 MMT capacity for starch production (NRCRI, 2019)

Value Addition:

  • Farming: Cultivation of cassava tubers
  • Harvesting: Digging and gathering of mature cassava tubers
  • Processing: Peeling, washing, grating, and drying to produce:
  • Garri (fried cassava flakes)
  • Tapioca (starch extracted from cassava)
  • Cassava flour
  • Food Products: Manufacturing of:
  • Snacks (e.g., fried cassava chips)
  • Baked goods (e.g., cassava bread)
  • Beverages (e.g., cassava tea)
  • Animal Feed: Production of cassava-based feed for livestock
  • Industrial Applications: Use of cassava starch and flour in:
  • Paper production
  • Textile manufacturing
  • Adhesives and glue
  • Biodegradable plastics
  • Export: International trade of cassava products (e.g., tapioca starch, cassava flour)
  • Research and Development: Continuous improvement of cassava cultivation, processing, and product development
  • Marketing and Distribution: Promotion and delivery of cassava products to consumers
  • Value-added Products: Development of new products, such as:
  • Cassava-based cosmetics
  • Cassava-based pharmaceuticals
  • Biofuels

These value additions create a robust and diverse cassava value chain, supporting various industries and providing economic opportunities for farmers, processors, manufacturers, and traders.

Export Potential:

  • $1.3 billion annual export value (ITC, 2020)
  • 2.5 MMT annual export quantity (NBS, 2019)

China: With a large food processing industry, China imports substantial quantities of cassava starch, flour, and other products for use in food, paper, and textile manufacturing.

Japan: Japan’s food and beverage industry relies heavily on cassava starch and flour for production of noodles, bread, and snacks.

South Korea: South Korea’s chemical and pharmaceutical industries utilize cassava starch and flour as raw materials.

United States: The US food and beverage industry, particularly the production of gluten-free products, drives demand for cassava flour and starch.

European Union: The EU’s food, paper, and textile industries require cassava products, with countries like the Netherlands, Germany, and Belgium being significant importers.

Brazil: Brazil’s animal feed industry uses cassava meal and pellets as a protein source.

India: India’s food processing industry, particularly the production of snacks and baked goods, drives demand for cassava flour and starch.

Industries that heavily rely on cassava and its derivatives include:

Food and Beverage: Cassava flour, starch, and other products are used in the production of baked goods, snacks, beverages, and processed foods.

Animal Feed: Cassava meal and pellets serve as a protein source in animal feed, particularly for poultry and swine.

Paper and Pulp: Cassava starch is used in paper production, improving strength and printability.

Textile: Cassava starch is used in textile manufacturing, enhancing fabric strength and durability.

Chemical and Pharmaceutical: Cassava starch and flour are used as raw materials in the production of adhesives, glue, and pharmaceutical products.

Biofuels: Cassava starch can be converted into ethanol, a biofuel used in the transportation sector.

To fully harness the export potential of cassava, Nigeria should focus on:

  1. Improving cassava yields and quality through research and development.
  2. Enhancing processing and value addition capabilities to meet international standards.
  3. Developing infrastructure for efficient transportation and storage.
  4. Strengthening trade agreements and market access with key importing countries.
  5. Promoting private sector investment in the cassava value chain.

By addressing these areas, Nigeria can unlock the vast export potential of cassava, generating foreign exchange earnings, creating jobs, and contributing to the country’s economic growth and development.

Government Support:

  • Anchor Borrowers’ Programme (ABP) for farmers
  • Cassava Transformation Initiative (CTI) for processing and value addition
  • Agricultural Promotion Policy (APP) for sector development

Investment Opportunities:

  • Irrigation systems and water management
  • Mechanization and agricultural machinery
  • Storage and logistics infrastructure
  • Processing and value addition facilities
  • Research and development for improved yields and disease resistance

Returns on Investment:

  • 20-30% ROI in cassava processing (FMN, 2020)
  • 25-35% ROI in garri production (NBS, 2019)
  • 30-40% ROI in starch production (NRCRI, 2019)

Follow Tradecast for more insights on global trade and investment opportunities across  value chain and unlock the potential for growth and investment. Email us at info@tradecast.global to learn more!

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