Cassava Processing in Nigeria

May 13, 2018, 9:27 am

 

Quick question, which of the foods  below do you eat more than twice a week?

1. Garri (Eba)
2. Akpu (Fufu)
3. Abacha

I eat Garri and Fufu at least twice a week. I especially like to drink garri with groundnut and milk and honey!


Because Nigerians eat these foods a lot, cassava farming is a very profitable business in Nigeria. However, most cassava farmers are making peanuts because they are not processing their cassava. Let me explain.


Let's say you have 1 hectare of land. You hire a tractor to clear the land. You plant cassava using very good cassava stem and the best planting and cultivating methods. You spend a total of N350,000 and your farm yields 30 tonnes of cassava.


The average selling price of 1 tonne of raw cassava is N25,000. So, if you sell your raw cassava to the women who make garri and akpu, you'll make N750,000 (30X25,000), which is a profit of N400,000. This is actually not bad but you can make more!


The Aliko Dangote Way

As you know, Dangote is one of the richest men in the world and his major business is food processing. Let's apply his method to your 30 tonnes cassava harvest.


You take your 30 tonnes of raw cassava and you process it to 10 tonnes of High Quality Cassava Flour (used to make spaghetti and noodles) and 15 tonnes of cassava chips (used in making poultry feed). The market price for 1kg of cassava flour is N200 and cassava chips is sold for N100 per kg. Recall, as you were taught in primary school that 1 tonne = 1000kg.


This is how much you'll make from selling your processed cassava products:

1. Cassava Flour
10 X 1000 X N200: N2,000,000

2. Cassava Chips
15 X 1000 X N100: N1,500,000

Total Sales: N3,500,000 (2,000,000 + 1,500,000)


Let's assume it cost you N500,000 to process this 30 tonnes of cassava. Your total cost of growing and processing the cassava is N850,000 (500,000 + 350,000). So your net profit from selling your processed cassava products is N2,650,000 (3,500,000 - 850,000).


Now if you do this every month for several years, it won't be long before you too become a billionaire like Dangote!


When you compare a N400,000 profit to a profit of N2,650,000 you'll understand why I said most cassava farmers are making peanuts. The real money in cassava farming is made by the processors.


In order to let you see what's possible for you to make in cassava processing, we have added  Cassava Farming and Processing video tutorials on Agricdemy.


Our video tutorials will show you how cassava is farmed and processed into gari, high quality cassava flour (HQCF) and cassava chips. You will also learn about the equipment used in processing cassava.


Also, we  have a comprehensive Cassava Processing business plan which you can get too!


This business plan will guide you on how to start a cassava processing business. It will show you the equipment to buy, the price of the processing equipment, how to setup your cassava processing line, the number of staff to employ, profitability, cash flow etc.


You can also use our Cassava Processing business plan to raise money from the banks, investors and grant organizations to start your cassava processing business!


If you're ready to learn more about cassava flour processing, cassava farming, gari and starch production, click here to create your free Agricdemy account and login to watch our free video tutorials on cassava farming, gari and starch production.

 

P.S: If you are already growing cassava or you have land available for growing cassava and you want to get our Cassava Processing business plan, send us a mail at agsolutions@agricdemy.com

 

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