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2013JE Anietal
2013JE Anietal
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ABSTRACT The study investigates the processing and marketing of cassava products in the Southeast, Nigeria. Multi-
stage random sampling was used to select 120 respondents, using structured questionnaire to collect primary data on the
quantity and the cost of cassava used for processing each product, the method of processing and cost of processing. The
return per naira on investment of the cassava products was evaluated, and the result showed that cassava processing is a
profitable venture. Processing cassava tubers into flour was more profitable with a return of 9kobo per N1 invested in the
business as against 7.8kobo and 7.1kobo for garri and chips respectively. Several constraints associated with processing
and marketing of cassava products were identified. This study recommended the need for government and the private
sector to assist cassava processors with credit, processing and storage facilities, good road network as this will boost the
economic performance of this sector of the economy.
of cash income for producing households. As a ever, this study focused on products derived from
cash crop, cassava generates cash income for the cassava roots which are: garri, chips and flour.
largest number of households, in comparison with Cassava is produced mostly by smallholder farm-
other staples, contributing positively to poverty ers on marginal or sub-marginal lands of the hu-
alleviation with other staples, contributing posi- mid and sub-humid tropics (Ani 2010). Such
tively to poverty alleviation (Rural Sector En- smallholder systems as well as other aspects of
hancement Programme 2002). Hence, efficiency its production often create problems, including:
in cassava marketing is an important determinant the unreliability of supply, uneven quality of
of both consumers’ living cost and producers’ products, low producer prices, and an often costly
income and the potentials of cassava marketing marketing structure. Thus, the challenge is to
to agricultural and overall economic development create a strategy that affects production, process-
cannot be over-emphasized (Obisesan 2012). ing, and marketing in such a way that they pro-
The growth in cassava production has been vide an array of high quality products at reason-
primarily due to rapid population growth, large able prices for the consumers, while still ensur-
internal market demand, complemented by the ing a good profit margin for the producers with-
availability of high yielding improved varieties out requiring them to assume the largest part of
of cassava, a relatively well-developed market the development risk (Ntawuruhunga 2010).
access infrastructure, the existence of improved
processing technology and a well-organized in- Objectives
ternal market structure (Onyinbo et al. 2011).
Women play a central role in cassava produc- The purpose of the study is to:
tion, processing and marketing, contributing i. describe the source of cassava tubers and
about 58 per cent of the total agricultural labour method of processing into the selected
in the southwest, 67 per cent in the southeast and cassava products (flour, chips and garri) in
58 per cent in the central zones (PIND 2011). the study area;
They are almost entirely responsible for process-
ii. determine the returns per naira on invest-
ing cassava, this provide additional income-earn-
ment of marketing of the selected cassava
ing opportunity as well as enhancing its ability
to contribute to household food security products
(FMANR 2006). The Federal Government’s iii. describe the marketing channel of the
policy of including cassava flour in bread and selected cassava products;
other confectioneries to substitute wheat flour has iv. identify the constraints associated with
presented great opportunities for investors and processing and marketing of the selected
farmers alike. cassava products.
However, several constraints affect cassava
processing which limit the contribution of the MATERIAL AND METHODS
crop to the development of Nigeria’s economy
(Adebayo and Sangosina 2005; Ntawuruhunga This study was conducted in Uzo-Uwani Lo-
2010). Boosting production without boosting of cal Government Area in Enugu State, South-East
its marketing can lead to glut of cassava in the Nigeria. The area is made up of three (3) clans,
market. This can depress prices and discourage Igboda, Mbanano and Ogboli, which comprises
farmers from investing cassava cultivation (IFAD of sixteen (16) autonomous communities. It has
2013). Marketing can pose a problem for poor a land area of 136.96km2 and a population size
farmers who may not have resources to trans- of 124,480 persons (National Population Com-
port their commodities to the market, especially mission 2006). The area lies within longitudes
those living in villages with poor feeder roads. 6045/ and 70 North, latitudes 7012/ and 360 East
Typically farmers transport their farm produce (Uzo-Uwani Local Government Bulletin 1990).
to the market on heads as head loads, on bicycles There are primary feeder and terminal markets.
or in lorries. With poor market access, market- The inhabitants are predominantly famers. This
ing of cassava can be particularly problematic could be as a result of the natural endowment of
because of its bulky nature, especially if it is not a large expanse of fertile agricultural land.
processed (Cassava Report Final 2013). A structured questionnaire was used to col-
Products derived from cassava include garri, lect primary data on the quantity of cassava that
starch, tapioca, fufu, pellets, flour and chip. How- was used for each product, method of process-
PROCESSING AND MARKETING OF SELECTED CASSAVA PRODUCTS 107
ing, cost of processing the cassava, the cost of TC = Total Variable Cost (TVC) + Depreciation
cassava that was used. Multi-stage random sam- Total Cost of assets - Salvage value
pling was used to select the respondents in the Depreciation =
Useful life
study area. In first stage, two clans were purpo-
sively selected because they are predominantly RESULTS AND DISCUSSION
involved in cassava processing. In second stage,
five communities were randomly selected from Source of Cassava Tubers
each of the two clans, while in the third stage, a
census and listing of cassava processors and Cassava processors in the study area obtained
marketers in each of the communities was con- their cassava tubers from four main sources.
ducted through the Enugu State Agricultural These are farm gate, wholesalers, retailers and
Development Programme (ENADEP) officials, the processors’ own farm. The distribution of
market associations and community leaders. respondents according to the source of cassava
From the formed sampling frame, 24 respondents is presented in Table 1.
(that is, 12 processors and 12 marketers) were Table 1 shows that about 36% of the respon-
selected from each of the five communities, giv- dents source their cassava tubers for processing
ing a total of 120 respondents. into garri, chips and flour from the farm gate,
Descriptive statistics such as frequencies and while about 27% source their cassava tubers from
percentages were used to analyse the processing wholesalers. About 23% source their cassava
methods of selected cassava products (flour, tubers from retailers while 15% source their cas-
chips and garri) in the study area, the constraints sava tubers from their own farm. Table 3 further
associated with their processing and marketing, revealed that 40% of respondents who processed
as well as their channel of marketing. Rate of cassava into garri sourced their cassava tubers
returns per naira on investment was used to from the farm gate while 20%, 25% and 15%
analyse the returns on investment of marketing sourced cassava tubers from wholesalers, retail-
of the selected cassava products. ers and own farm respectively. For those who
processed into chips, about 38% sourced cassava
Rate of Return on Investment (RRI) tubers from farm gate, while 35%, 15% and 13%
sourced cassava tubers from wholesalers, retail-
This is specified as: ers and own farm respectively. And for those who
Net Income (NI) processed into flour, 30% sourced cassava tu-
RRI =
Total Cost (TC) bers from farm gate, while 25%, about 28% and
where; N I = TR-TC 18% sourced cassava tubers from wholesalers,
TR = Total revenue from the cassava products retailers and own farm respectively.
aforementioned
TC = TFC + TVC = Total cost of cassava Method of Processing Cassava Product
products (garri, chips and flour)
TFC = Total fixed cost such as cost of frying Processing of cassava is very important be-
pan, sieve, bags, frying spoon, tripod stands, cause the root is made up of about 60-70 per
knives, etc. cent water and has a shelve life of 2-3 days. Pro-
TVC = Total variable cost such as cost of fresh cessing therefore, reduces the water content and
tuber, cost of transportation, cost of firewood, converts it into a more durable and stable prod-
labour cost, cost of oil, etc. uct, thereby eliminating the hydrocyanic acid
content. Two methods are usually used for cas- of garri, chips and flour. However, an optimum
sava processing; these are the tradition and me- duration period of 3-5 days has been recom-
chanical methods. The traditional method in- mended. The distribution of respondents accord-
volves fermentation and dewatering (pressing), ing to the duration of processing cassava is pre-
which are done in one operation, while in the sented in Table 3.
mechanical method, the processes are done sepa- Table 3 revealed that out of the 40 garri pro-
rately. The distribution of respondents accord- cessors in the study area, 35% processed their
ing to the methods of processing cassava is pre- cassava within 2 days, 52.5% processed within
sented in Table 2. 3 days, while 10% processed within 4 days. The
Table 2 shows that 87.5% and 12.5% of the large market value and demand for the commonly
respondents were using traditional method and processed products from Uzo-Uwani may have
mechanical method for processing cassava to resulted in 35% of processors processing their
garri, respectively, while 80% and 20% of the cassava (mash fermentation) within 2days instead
respondents were using traditional method and of the recommended 3-5 days to make more
mechanical method for processing cassava tu- money thus sacrificing safety. The result from
bers into chips. Similarly, 77.5% and 22.5% of Table 3 further shows that for chips processing,
the respondents were using traditional and 2.5% of the respondents process their cassava
mechanized method for processing cassava into tubers within 3 days, while 25%, 32.5%, 37.5%,
flour respectively. Majority of the respondents 2.5% processed within 5,6,7 and 9 days, respec-
still depend largely on traditional method for tively. Similarly for flour processing, 10%,
processing cassava, although they used hydrau- 42.5%, 45%, 2.5% processed their cassava tu-
lic press and grater for dewatering and crushing bers within 5, 6 and 9 days respectively. The
of the cassava tubers into pulp. Only few respon- above result shows that flour and chips process-
dents use mechanized method of processing. This ing is more time consuming than garri process-
may be due to the high cost of mechanized pro- ing. Hence, the garri processors processed large
cessing machine. quantity of the product as compared to chips and
flour. This generates more turn-over, since garri
Duration of Processing Cassava (In Days) is a popular household staple food in Nigeria.
cessed cassava products moved from the produc- enue was N 31,200, with a gross margin of N
ers to the wholesalers, from the wholesalers to 13,350. For processing cassava tubers into chips,
retailers and from the retailers to the final con- N 10,000 (5000kg) worth of cassava tubers were
sumers (households, hotels, cooks, etc.) consum- processed at an average price of N 250 per kg,
ers through marketing channel. with the labour costing N 4,600 and deprecia-
tion on equipment used at N 1,180. The total cost
Cassava Processors —> Wholesalers —> Retailers —> incurred by the processors was N 17,500 with
Consumers total revenue of N 30,000 and a gross margin of
Fig. 1. Cassava-Product Marketing Channel N 12,500. While to process cassava tubers into
flour, the table showed that N 10,000 (5000kg)
Rate of Return in Investment in Processing worth of cassava tuber was used to produce cas-
and Marketing of the Cassava Products sava flour at the average price of N 250 per kg.
The respondent incurred a depreciation of N 925.
Returns per naira invested in the cassava prod- The total cost of processing was N 30,500, with
ucts were evaluated by computing the rate of in- a gross margin of N 14,425.
vestment for each of the processed cassava prod- The study revealed that labour and cassava
uct that was produced and marketed by the re- tuber are the most cost item in cassava process-
spondents to get the net income, this was divided ing, while the depreciation cost was the least.
by the total cost. The item associated with the However, the result of the rate of returns of in-
variable cost of the enterprise includes, cost of vestment shows that cassava processing is an
fresh tuber, cost of transportation, cost of fire- income earning venture. The return per naira of
wood, and cost of palm oil. Total fixed costs investment on the processing of N 10,000 worth
which are associated with frying pans, sieves, of cassava tuber into different products gave 7.8
machetes, sack bags, knives, basins, wooden kobo for garri, 9 kobo for flour and 7.1 kobo for
stares and frying spoons. The straight line method chips. This implied that for every N 1 invested
was used in calculating the depreciated values in garri, flour and chip processing, it yielded the
of the equipment used. sum of 7.8 kobo, 9 kobo and 7.1 kobo respec-
The rate of returns per Naira invested in tively. The result further indicates that process-
processing N 10,000 worth of Cassava tubers ing cassava tubers into flour is more rewarding
(5000kg) to the Cassava products is presented since the return to investment is higher for flour
in Table 4. compared to garri and chips.
The result in Table 4 shows that 5000kg of
cassava tubers used to produce garri will costs Constraints in Cassava Product
about N 10,000 at average price of N 250 per Processing and Marketing
kg. The labour cost and the depreciation of the
equipment used was N 4,400 and N 850 respec- Cassava processing and marketing can be
tively, giving a total cost of N 17,550 for pro- faced with much drudgery thereby limiting the
cessing cassava tubers into garri. The total rev- ability of the processors to improve their pro-
Table 4: Returns per Naira (M) invested in processing N 10,000 worth of cassava tubers (5000kg) to the cassava
products
Item Average Quantity Value (K) Value (K) Value (K)
price for for for
garri (N) flour (N) chips (N)
Total revenue 31,200 30,400 30,000
Variable cost of inputs (cassava tubers) 250 5,000kg 10,000 10,000 10,000
Palm oil 5 Litres 850
Labour for processing cassava products 4,400 3,650 4,600
Transport cost 1,450 1,400 1,650
Total variable cost of cassava products 16,700 15,050 16,320
Depreciation of fixed cost 850 925 1,180
Total cost 17,550 15,975 17,500
Net income 13,650 14,425 12,500
Return per Naira on investment 7.8 9 7.1
Source: Field Survey 2010. Note: $1 = N 156
110 STELLA O. ANI, IKECHI K. AGBUGBA AND LLOYD J.S. BAIYEGUNHI
cessing techniques and activities; reduce their drive towards increasing her foreign exchange
level of participation and marketing of products; base, and serves as one of the major sources of
and consequently, retard the expansion on invest- carbohydrate while commercialization of its pro-
ment on the processing business. The major con- cessing contributes to poverty reduction and sus-
straint to cassava processing and marketing in- tains livelihoods due to its income generating
cludes: lack of finance, lack of processing facili- potential. Findings from the study have showed
ties, sourcing of labour, marketing problems, that processing and marketing of the selected
transportation problems and inadequate storage cassava products (garri, chips and flour) is a prof-
facilities. Table 5 represents a rating for the con- itable business venture. There is need therefore,
straints by summing up the responses and multi- to scale up cassava processing and expand the
plying by the average of the respondents. industry for opportunities income generation for
Table 5 shows that lack of finance ranging the rural populace, as well as to achieve the tar-
from capital to start and maintaining a business, get of the presidential initiative on cassava pro-
credits and collateral; coupled with high interest duction and export. There is need for the provi-
rates are major constraints (3.7) to processing of sion of improved processing techniques to elimi-
cassava. Processing facilities are usually expen- nate drudgery, wastefulness and low productiv-
sive, and lack of it resulted in majority of the ity associated with traditional processing.
respondents using traditional processing meth- Government as well as private sectors’ indis-
ods. Sourcing for labour also constitutes a major pensable role in providing cassava processors
constraint (2.93) by the respondents, as labour access to resources needed to acquire and main-
for cassava processing is very expensive. Mar- tain innovations cannot be over emphasized.
keting problems was identified and agreed (3.0) Credit facilities, appropriate energy sources and
by the processors as a major constraint. There is trained personnel should be made available
no standard pricing or grading systems for the within reach to processors and marketers of cas-
processed products. This had led to low income sava products. Finally, market opportunities can
from the processed products, hence discourag- be fully developed through provision of adequate
ing further investment. Also, transportation prob- infrastructures such as good roads, pipe borne
lems (3.8) affect cassava products processing. water, modern market and processing centres, as
The bad condition of the rural roads makes trans- well as efficient transport and communication
portation of fresh cassava tubers and products system. Such development will boost both do-
difficult, since it affects gross margins. Another mestic and export market for garri, flour and
constraint identified is inadequate storage facili- chips as well as other processed cassava prod-
ties (2.63). An inadequate storage facility limits ucts.
the growth, development and expansion of the
processing enterprise. REFERENCES
CONCLUSION AND Abdul Azeez I 2013. Cassava Export and Local Utilization
POLICY IMPLICATIONS in Nigeria Top Secrets. The Consulting, Thursday
May 30th, 2013.
Adebayo K, Sangosina MA 2005. Perception of the
Cassava has been noted to be a cash crop and Effectiveness of Some Cassava Processing Innovation
Nigeria, recognized globally as highest producer. in Ogun State. Proceedings of 19th Annual Conference
Cassava crop has become prominent in Nigeria’s of Farm Management Association of Nigeria held at
PROCESSING AND MARKETING OF SELECTED CASSAVA PRODUCTS 111