Cassava value chain developmentlinking small-holder farmers and processors to markets

Andrew Westby, Kolawole Adebayo, Lateef Sanni, Nanam Dziedzoave, Vito Sanifolo, Grace Mahende, Francis Alacho, Andrew Graffham, Louise Adeyomi,

Helena Posthumus, Adrienne Martin, Rory Hillocks, Lora Forsythe, Richard Lamboll, Paul Ilona, Adebayo Abass

Partners:

Funded by the Bill and Melinda Gates Foundation

Linking smallholders to markets

• Increasing small-holder incomes.

• Contributing to food security.

• Share lessons mainly from the Cassava: Adding Value for Africa Project.

• Not the only approach

Cassava: Adding Value for Africa project

• Five year project starting in 2008.

• Five countries (Ghana, Nigeria, Uganda, Tanzania and Malawi).

• Each country coordinated by a small national team.

• Development and not research project.

• Supported by a grant from the Bill and Melinda Gates Foundation

C:AVA is a partnership project

• Led by NRI• Over 75 partners of different types:

– One lead partner per country– IITA– NGOs/public sector involved in extension with rural

level farmers/processors– Farmers associations– Other technical support organizations– Technical experts

Our Vision...

A vibrant and competitive High Quality Cassava Flour industry based on market-led efficient production and processing which leads to a reduction in rural poverty

C:AVA – the model

Village level Intermediate End User/Industry

Farmer(s) / Group– sells fresh roots

Processor/ bulking agent

-Peel-Grate-Dry-Mill-Bulk-Sell

Farmer(s) – processors –Pressed wet cake

Farmer(s) – processors – Cassava grits

End users/Industry

-Wheat millers-Bakeries-Biscuit makers-Traditional food products-Plywood/-Paperboard

Roots

Grits

Cake

• Ensure a consistent supply of raw material (Village level)• Ensure financially viable intermediaries (Intermediary)• Support end users to adopt high quality cassava flour (End user/industry)

C:AVA framework

Village Processing Units

Bakeries – replacing wheat with HQCF

Farmers/Farmer Processors

Grow cassava and sell semi-processed product to intermediary

Intermediaries (private sector)

Semi-processed product

HQCF

Roots Grated roots

Value chain

BenefitsRural areas- Increased farmer incomes

- Employment

Intermediaries- Business opportunity - Employment

End-users:- Increased profitability- Lower consumer prices

Nationally- Reduced imports

Main inputs

- Business development services- Financial services- Technical support in processing- Ensure quality

-Technical support in adopting HQCF-Financial services

- Support farmer organisations- Increase cassava productivity- Support Village Processing Units- Ensure quality

Service providers capacity strengthening

Food processing industry using HQCF

Overall progress

• Established value chains in each of the C:AVA countries.

• Increasing production of HQCF and other products.

• Increasing numbers of beneficiaries

• Improved planting and agronomic practices increased yields greater than national averages.

HQCF production per year in East African countries

HQCF production per year in West African countries

Yield differences in the C:AVA operating areas and national averages

Lessons learnt

• Need multi-point interventions in the value chain, which may differ by location and time.

• Partnerships have been essential to progress made.

• Facilitation of the value chain is very important – provision of equipment and training is not sufficient

• Public – private partnerships essential to success.

• National ownership is very important.

Lessons learned

Rural level production and processing

Intermediary bulking/secondary processing

Industry/end users

One model, different contexts

Nigeria

Produce/sell roots or wet cake

Flash drying

Main uses:-Wheat flour replacement-Confectionaries

Ghana

Produce/sell roots or wet cake

Sun dried grits

Bin drying

Main uses:-Glue extender for plywood-Bakery

Tanzania

Produce dried grits

Bulking marketing

Main uses:-Sale as HQCF-Biscuit use-Food industry

Uganda

Bulking, milling and marketing

Main uses:-Domestic consumption-Biscuits-Bakeries-Paperboard

Produce grits or flour

Malawi

Produce/sell roots

Groups

Produce grits and flour

Main uses:-Village bakeries

Entrepreneurs

Produce grits and flour

Gender and diversity – C:AVA’s approach

C:AVA approach designed to integrate gender and diversity

C:AVA emphasised understanding gender and diversity in each country context: •how project outputs and plans would affect and be affected.

• factors promoting participation.

•contribute to organisational learning / training and capacity needs.

Analysis of gender and diversity along value chain•analysis at individual, household, farmer and village-based processor group levels through to SMEs, market traders and end users

•gender and diversity audit of partner organisations and service providers

•gender and diversity aspects included in baseline studies 

Gender and diversity – C:AVA’s approach

Monitoring of gender and diversity in project activities –

• indicators disaggregated by sex and diversity; e.g. membership of farmer and processor groups, participation in training, employment, leadership positions

• monitoring at household level, the impact of engaging in new products and markets on livelihoods , gender relations and food security

COUNTRY OPERATION % WOMEN

Tanzania Sun-drying 76

Uganda Sun-drying 60

Malawi Sun-drying 73

Gender and diversity lessons

• Importance of appropriate location and timing of training and information activities for village women

• Flexibility in working hours and availability of transport increases women’s ability to work in enterprises.

• Some limits to women’s ability to exploit new opportunities due to lack of control over their labour

• Women’s access to their own plots gave them greater control over budget decisions, cost of production and access to income

• Increase in processing opportunities are empowering women, although there are some cases of tension.

• Labour, time and capital requirements of new technologies require particular scrutiny if poorer individuals and groups are to participate.

• Men’s participation in processing groups has increased, particularly working with processing equipment.

Policy environmentNigeria

2007/8

Change in Government – less favourbale policy environment.

SME activity collapses.

Main C:AVA activities:

alternative markets; policy advocacy for HQCF inclusion in wheat.

2011/12

New Minister Change in Government policies – Government advocacy for HQCF

Main C:AVA activities:

Price competitiveness of HQCF through (a) fair pricing (b) improved flash drying; market linkages

Quality assurance and management

• Partnership with UNBS who carried out inspections and audits.

• Partnership with end-user markets (biscuit, agri-foods, paperboard) who sent their quality control officers.

• Training of processors on quality management.

• Development of schedules, instructions and records to provide documentary evidence of quality management.

• Setting up model processing prototypes.

Interventions to assure quality in Uganda

MarketsPotential HQCF markets as identified by the value chain study in Malawi (2009)

Market segment

Wheat flour demand (t/yr)

Estimated HQCF

HQCF prices (MK/ton)

HQCF supply chain

Price drivers

Millers 49000 4900 (10%) 168,000 Artificial Wheat flour processing costs

Rural retail 36000 7200 (20%) 189,000 sundried Processing and transportation

Biscuit 10000 2500 (25%) 144,000 artificial Cost of wheat flour

Paper board

750+reqional markets

750 (100%) 224,000 artificial Cost of corn starch & delivery cost

Other 78 78 (100%) 224000 artificial Cost of corn starch & delivery

Total 99078 15428

Technology

• 156 flash-dryers (FD) in 127 SME’s

• 86% of FD’s poor – 11% efficiency, Output 103kg/hr 374 litres diesel/tonne

• 14% FD’s - 32% efficiency, Output 96kg, 132 litres diesel per tonne

• International standard: Efficiency 50%, 200kg/hr 76-80 litres diesel per tonne

• New design FD: 49% efficiency, Output 202kg/hr, 86 litres diesel per tonne Double output - saving $63,000/yr when compared to old models for comparable output

• Upgrade existing FD – 41% efficiency, Output 138kg/hr, 103 litres diesel per tonne

Flash dryer improvements

Before 2011 After 2011

Technology

• Graters and presses found in the market were poor quality and break down after a few days of use

• Practical hands-on training organised for equipment fabricators with Nigerian commercial expertise

• C:AVA supported processing groups with newly fabricated improved food grade equipment

Equipment upgrades in East Africa

Profitability and price competitiveness

HQCF alone?

• C:AVA scope has been broadened to look at related products.

• C:AVA model is potentially applicable to other cassava product value chains.

• Examined new market opportunities for a wider range of products in Uganda and Tanzania (Example of Tanzania)

Market segment Cassava product

Current market Short term market (t/annum)

Long term market (t/annum)

Wheat mills HQCF 0 0 17,500 - 35,000

Bakeries HQCF Limited 150-300 2,300 – 4,700

Biscuits HQCF 50-100 1,000 – 2,000 5,000 – 10,000

Home use HQCF Limited 1,000-2,500 11,000 - 25,000

Small-scale mills Grits/chips Limited 1,300 50,000

Animal feed Chips/grits 10-15 1,000 40,000-45,000

Clear beer Improved makopa

0 0 1,000 – 2,400

Traditional beer Improved makopa

0 900 10,000-12,000

Starch Fresh root 0 0 228,000

Markets identified for cassava products in Tanzania (2012)

C:AVA is now more than a project

Additional research funding (2 projects from European Commission; 3 million Euro each):

– Research issues raised in C:AVA (FSTP funded CassavaGMarkets).

• Climate change• Brown-streak• New uses of HQCF• Improved small-scale drying• Quality management• Impacts on food security and gender

– Reduce losses in value chain and added value to waste products (Framework 7 - GRATITUDE).

Future prospects

• Undertake impact studies in each country.

• Future growth in HQCF markets.

• Need for processing technology between sun-drying and a flash dryer.

• Impact of climate change.

• Application of the C:AVA approach to other cassava product value chains.

• Strong linkages with initiatives on seed systems and breeding.