Cassava

Cassava

The One Pager Business Plan for Cassava

The One Pager Business Plan (Cassava)

Presented in bite size and easy to understand language, The One Pager Business Plan highlights the basic insights and considerations that helps you to decide if and how to engage in agricultural ventures.
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Cassava in the World

Cassava (Manihot esculenta) stands as a cornerstone of agricultural and cultural significance in the world. The global consumption of cassava is projected to reach 110 million metric tons by 2026, a 0.3% decrease from 2021 figures.
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Cassava in Nigeria

Cassava is one of the most important crops in Nigeria. Cassava has also increased it's industrialization importance in the country in recent years. In all places, cassava has become very popular as a food and cash crop.
Nigeria is the top consumer of cassava globally with 25.2 million metric tons. Equally, Nigeria is the largest cassava producer globally, Nigeria produces over 60,000,000 Metric tons (MT) of cassava annually which accounts for 21% of total production worldwide.
The demand for cassava and its constituents is high in domestic and industrial economies. About 85 - 90% of the cassava produced in Nigeria is consumed as traditional food and this has affected the raw material supply to meet the industrial need, 15% of the total production that is available as raw material has been unable to meet the huge industrial demand.
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Producing Regions

North Central

Niger, Benue, Kogi, Nasarawa, and Kwara

South West

Oyo, Osun, Ogun, Ekiti, and Ondo

South East

Anambra, Abia, Ebonyi, and Enugu

North South

Delta, Edo, and Cross River

Producing Regions for Broilers in Nigeria
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SWOT Analysis

Strength: Available base resources of land, labour and know-how.
Weakness: Financing of new entrants may be difficult.
Opportunity: Growing market due to growing population and cassava industrialization.
Threat: Importation of cassava derivatives and market volatility.
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PESTLE Analysis

Political
Implementation of policies centered around agriculture.
Economic
Economic transformation and a burgeoning market driving the need for import independence.
Social
Firm roots in agriculture and cassava widespread popularity for both local and industrial use.
Technology
Accessible medium-scale mechanization technology and widespread use of digital tools for information and extension services.
Legal
Simplified farming procedures with minimal licensing and regulatory constraints.
Environment
Favourable geographical and climatic conditions conducive to cassava cultivation.
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Technical Consideration

Taking 10 to 14 months to mature and prepare for harvest, cassava cultivation demands minimal technical complexity but necessitates consistent vigilance during its growth stages. In Nigeria, an average farmer can achieve yields of up to 18 tons - 20 tons of cassava tubers per hectare through diligent management and strict adherence to Good Agricultural Practices (GAP).
Embracing influential agricultural methodologies like global Good Agricultural Practices can enhance the prospects of a successful harvest. This involves employing superior planting materials, optimal fertiliser application, judicious herbicide and pesticide usage, appropriate spacing, and optimal crop density.
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Operations

A medium-holder farm can be managed with a lean operational framework of not more than 5 people, mostly contracts with little overhead cost. Most administrative tools for such tasks as bookkeeping, project management and reporting can be sourced freely.
As farms grow, headcount may grow, however, it is advised to keep operations lean and overhead low by using contract workers for most of the farm tasks while growing capacity in managerial areas.
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Risk

Environment
North Central: Environmental risks in cassava production in the north include climate variability (rainfall patterns and temperature) leading to poor yields, soil degradation, and security issues.
Mitigant
Seek more knowledge about the climatic condition of the environment and establish a safe area.
Probability Level Medium Probability
South West & South East: Possible pest and disease outbreaks thrive. Soil degradation due to improper practices reduces fertility.
Mitigant
Adoption of proper cultural practices.
Probability Level Medium Probability
South South: Rainfall is abundant and soil is suitable, however carbon and sulphur pollutions and overusing agrochemicals with pollutes the environment.
Mitigant
Selection of less polluted area. And adoption of sustainable approach that focuses on the reductions of soil and water pollution.
Probability Level High Probability
Technical
Poor technical knowledge of the cultivation, field management and cassava value chain experience and expertise.
Mitigant
Plan to impact knowledge to farmers through training and extension programs.
Probability Level Low Probability
Pest & Disease
North Central: Low invasion of pest and outbreak of diseases.
Mitigant
Daily routine management and prevention.
Probability Level Low Probability
South West and South East: High pest invasion and outbreak of diseases.
Mitigant
Adoptions of Integrated pest management (IPM) and observing daily routine check.
Probability Level High Probability
South West and South East: High pest invasion and outbreak of diseases.
Mitigant
Adoptions of Integrated pest management (IPM) and observing daily routine check.
Probability Level High Probability
Finance
Lack of inadequate financial supports to the farmers when it is needed for cultivation.
Mitigant
Provision of funds before the commencement of cultivation. And provision of education to farmers on how to access financial supports
Probability Level Medium Probability
Market
North Central: Concentration of local market.
Mitigant
Provision of premium market access and ensure that the cassava tuber meets all necessary market requirements.
Probability Level Medium Probability
South West: Concentration of both local and Industrial/Commercial market.
Mitigant
Ensure that the cassava tuber meet all necessary market requirements.
Probability Level Low Probability
South South & South East: Concentration of local market.
Mitigant
Provision of premium market access and ensure that the cassava tuber meet all necessary market requirements.
Probability Level Medium Probability
Pricing
North West, North East: Low price per ton / Negative price movement.
Probability Level Medium Probability
North Central: Price per ton is usually the prevailing market average movement.
Probability Level Low Probability
South West: High price per ton / Positive price movement
Mitigant
Get informed about the prevailing market price and ensure qualities and standards are met.
Probability Level Medium Probability
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Economics of Production (July 2023)

Cassava
Cassava
 
Cassava
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Profitability of Production (July 2023)

Cassava
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Conclusion

In Nigeria, each geographical area possesses distinct characteristics and nuances concerning the Economics of Production (EOP) and profitability of the cassava value chain. The table above illustrates that the potential net profit within the cassava value chain is most significant in the southern regions, specifically the southwest and south-south regions of the country. This phenomenon can be attributed to the presence of both local and industrial/commercial markets in these areas. The intense competition between these markets within these regions amplifies the demand for fresh cassava tubers, consequently leading to an uptick in the price per ton.
Furthermore, the intricacies associated with cultivating cassava in Nigeria's North Central region contribute to relatively higher cultivation costs. This is primarily due to the necessity of applying supplementary top-dressing fertilizer in this region.
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