BUSINESS PLAN ON MODERN CASSAVA GARRI AND FUFU FLOUR PROCESSING FACTORY

1.0 EXECUTIVE SUMMARY:

Introduction

Cassava is God’s gift to the tropics because it can grow in poor soil with inadequate rainfall. The starchy roots of cassava are major source of food for more than 700 million people all over the world. It ranks third in order of staple food crops in developing countries after rice and maize. It is called Manic in French, Tapioca in Latin America, Mandioca in Portuguese. It has universal application.

Nigeria is world’s largest producer of cassava. We produce over 41 million metric tons per annum and we are followed by Brazil, Thailand, Zaire (now Democratic Republic of Congo), Indonesia. Thailand export over $20 billion worth of cassava products annually. Nigeria has tried to expand the local cassava business through the Composite Flour Initiative and the Cassava Empowerment Fund but so far they have attained little success. Cassava is produced in all the southern and Middle Belt State of Nigeria.

In Nigeria, comparing the output of various crops, cassava ranks first and it is about the most popular crop in Nigeria. The unpeeled roots can be used as animal feed whilst the leaves are added to animal feed as a source of protein. It provides basic sources of dietary energy. Cassava has great industrial value as it is used for industrial raw material by many industries, such as the bakery, flour, confectionery, adhesives, pharmaceutical, textile, paper and brewery, distillery industries. The Economic importance of this crop can therefore not be over emphasized.

The demand for cassava in recent time is increasing such that the supply can’t measure up in the nearest future demand will be so overwhelming that initiatives such as the proposed cassava – to – fuel factory in Kogi may be initiated by a Nigerian consortium. The demand for cassava by such a factory will be very high in order to match up to their market demand.

The demand for cassava cuts across many industries and many users in Nigeria. It is largely utilized as staple food with industrial potential, suggesting that the demand for cassava in the country is very high.

Garri is produced from cassava tubers and is the commonest stable food in Nigeria consumed by over 130 million people. We consume about 7.7 million tons of garri per year and it comes to about 30.7 million tons of our cassava production. This shows that about 75 percent of our cassava output is consumed as staple while only 25 percent is used as raw materials for starch, chips, pellets and flour which are industrial raw materials that can be exported. Our actual annual demand for garri is 12 million tons but to accomplish this, the production facilities must be improved and upgraded and cassava product must also improve.

Our population grows at the rate 3.5 percent annually and this means that the food capacity must also grow commensurately. Garri is produced in the rural areas by local women and the process is full of drudgery and stress thus most of them are giving up the trade and the young ones are not interested because they prefer life in the cities. The modern Garri processing plant is designed to fill this void.

A garri processing factory can be located anywhere, as long as you as you can get access to the raw materials mostly cassava tubers. Many micro and small factories of this kind were encountered in the rural areas during the

field research for this article. https://tamodo.co/ref/793347198/d7058711.html More than half of these factories were owned and

operated successfully by women with little or no education. The rural areas are ideal for garri processing because that is where the cassava farms are, and you do not need much else. Training requirement is basic education. Additional training could be acquired in process technology from a university or technical

institute. The business has the potentials to grow into a major agro-allied Processing business. Products and Services: The basic product is garri. However, it is possible to diversify with production of starch and plantain, especially in the long term.

Potential Profits

       In cassava farming, the projected income also depends on the capital that is invested. The bigger the capital investment, the bigger the profits will be. If you start with huge capital, the returns on investment will be bigger and faster due to having more efficient and effective machinery, storage and processes that can help you take advantage of opportunities, and high demand.

Despite this, due to Nigeria’s agricultural transformation agenda there is a rapid growth and competitive edge that is emerging in smaller factories. This can be linked to the increase in the amount of cassava tubers being produced.       Nigerian entrepreneurs and cassava farmers are no longer in doubt that cassava farming is a profitable business.

      The big cassava market in Nigeria, and the high costs and duties related with importing by products of cassava, make local production highly attractive. The Nigerian government has also introduced favorable incentives in order to promote local production.

CASSAVA FUFU FLOUR

Cassava, a tropical perennial crop cultivated mainly for its edible tubers is a staple food consumed worldwide and provides much economic benefit to the producers.

Cassava can also be described as an annual or perennial tuber-bearing plant.

Cassava flour is a creamy-white, granular flour with a slightly fermented flavour and a slightly sour taste made from fermented, gelatinized fresh cassava tubers. Cassava flour is used in the preparation of fufu. It is a cherished delicacy when served with well-prepared soup. There is high demand for Instant cassava Flour in both domestic and international markets. In the international market, large market exists in Europe and America and other continents most especially with sizeable black people. The potential demand for IPYF is in excess of 500,000 tonnes/annum

The supply gap has been identified to continue to expand as the population of the country which is estimated to be 160 Million continues to grow at 3.5% per annum. Also the rural urban drift in the country would help to deepen the market for instant cassava flour which is estimated at over N 3 billion annually in Nigeria. https://tamodo.co/ref/793347198/d7058711.html West Africa accounts for 90-95% of world cassava production with Nigeria the largest single producer. In 2004, global cassava production was about 47 million metric tons (MT) with 96% of this coming from Africa. Nigeria alone accounts for about 70 percent of world production. It is the most important root/tuber crop in Africa.

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