Cassava Tuber Cultivation And Cassava Starch Production In Nigeria, The Feasibility Report

Cassava is the most important root crop in Nigeria. Apart from being a staple crop in both rural and urban household’s cassava is a major source of income to cassava farmers and processors in the rural areas.

Currently, the country produces about 40,000,000 tons of the cassava tubers annually and due to the desire of the federal government to reduce import dependency and conserve of scare foreign exchange, there is need to increase the production of cassava starch as an alternative to corn starch.

An estimated 60 million tons of starch are extracted from a wide range of cereal, root and tuber crops for use in a staggering variety of products such as stabilizers in soups and frozen food, as coating on pills and paper, as adhesives on stamps and plywood, as a stiffening agent in textiles, as raw material for making ethanol and even as binder in concrete.

About 10 percent of that starch comes from cassava roots, a crop better known as the staple food of millions of low-income rural people in Africa, Asia and Latin America.

Nigeria is the leading producer of cassava tubers in the world with an annual production of about 40,000,000 tons and nation produces more cassava than any other country in the world. The crop is abundant in 24 of the 36 states, requires minimum labor and inputs, and remains the most important food security crop for millions of Nigerians. Yet every year at least USD 680 million of flour, starch, glucose, and animal feed are imported to Nigeria, most of which can be made from processed cassava.

The cassava starch industry in Nigeria is dominated by small scale with production capacity of less than 0.1 tons per day. The production plants are usually found all parts of Nigeria where the chief raw material, Cassava tubers, can be found.

The national demand for cassava starch is in excess of 350,000 tons/ annum while domestic supply is less than 20%.

Starch has thickening and binding qualities. It is used as binder and thickener in convenience foods including bouillon cubes and baby foods. In the textile industry starch is used as yarn sizer and as a finishing agent. It enhances the weaving efficiency as it permits the loading of the fabric in such a way that the sizer is neither visible nor perceptible. In the textile industry, cassava starch is considered preferable to corn starch as the latter gives a dull finish and may change the color. Starch makes good adhesives.

Cassava starch is a whitish, powdery material which is used in the food, pharmaceutical pulp and paper and textile industries.

In the past, cassava starch was mainly used as a staple food by some tribes in Nigeria and for domestic laundry purposes.  However, attention has been drawn to its industrial uses in recent years.  Among its industrial uses are:  as thickener or paste in the food industry; syrup in the pharmaceutical industry and for textile sizing in the textile industry.

This report seeks to examine the financial viability or otherwise of establishing a cassava farm and cassava starch production plant in Nigeria using cassava tubers as basic raw material.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2.0 Agricultural Practice 2.1 Land Preparation 2.2 Collection of stems 2.3 Planting 2.4 Manures and Fertilizers 2.5 Weeding 2.6 Climate / Irrigation 2.7 Harvesting and Yield 2.8 Herbicides 2.9 Soil Type 2.10 Diseases and Pests 3. Marketing Plan 3.1 Description of product 3.2 Product Packaging and delivery 3.3 The Opportunity 3.4 Pricing Strategy 3.5 Target Market 3.6 Distribution and Delivery Strategy 3.7 Promotional Strategy 3.8 Competition 4. Production Plan 4.1 Description of the Location 4.2 Raw Materials 4.3 Production Equipment 4.4 Production Process 4.5 Production Cost 4.6 Stock Control Process 4.7 Pre-Operating activities and expenses 4.7.1 Operating Activities and Expenses 4.8 Project Implementation Schedule 5.0 Organizational and Management Plan 5.1 Ownership of the business 5.2 Profile of the promoters 5.3 Key Management Staff 5.3.2 Management Support Units 5.4 Details of salary schedule 6. Financial Plan 6.1 Financial Assumption 6.2 Start -Up Capital Estimation 6.3 Source of Capital 6.4 Security of Loan 6.5 Loan Repayment Plan 6.6 Profit and Loss Analysis 6.7 Cash Flow Statement 6.8 Viability Analysis 6.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis

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