C:AVA NigeriaYear 4 Annual Report
PresentationProfessor Lateef O. Sanni (Country Manager)
Email: [email protected]
C: AVA Nigeria Major Activities(April 11 till March 31 2013) To re-assess existing market opportunities to
provide updated market information to support the business case for flash dryer owners.
To support development of linkages between identified markets and upgraded factory operations. October 2011 – March 2013
To support Retrofit of flash dryers manufactured by Peak Products, Nobex and Niji Lucas Limited.
To hold open days at upgraded factories for members of the HQCF industry to encourage investment in upgraded processing and drying technology. May 2011 – March 2013
To review raw material supply and village processing groups in proximity to factories participating in the upgrade support plan to ensure optimal supplies of raw material for the factories. April 2011 – March 2013
To provide quality control support in the form of visits, sample analysis and programmes of corrective actions to maintain quality control throughout the value chain. April 2011 – 2013
Market opportunities for HQCF in Nigeria –May 2011
Summary .... Optimistically, there are some large market opportunities - but can quality standards and the prices be achieved???
Market Market size Replacement Size of HQCF opp Target price Pricet/year t/year point N/kg
(% wheat flour)Milling 2.2 million 5% 110,000 90% 75/kgBiscuit 500,000 10% 50,000 75% 67/kgPackaging 3,000 to 6,000 100% 3,000 to 6,000 >80/kgSoap 600 ???Rural
Key factors limiting expansion of markets for HQCF in Nigeria -1 1. Ability to produce competitively – target
price for HQCF into bakery sector = N58-65/kg at current wheat price
1. Ability to meet buyer quality requirements consistently
2. Market acceptability 3. Production management (over-arching) 4. Capacity to deliver
Russel Woo, Programme Manager, Bill & Melinda Gates Foundation was in the country from 17th to 22nd July 2011
Russel was of the opinion that the various markets should be prioritised so that energy can be channel to the one that will yield the greatest impact once the project overall targets are met
Linkages between identified markets and upgraded factory operations
Assessment of the cost element in the production of HQCF using the flash dryer Visits to Eagle
Baba,/ Peakprdts Hanneke Lam to
share her final conclusions
Higher production cost at SMEs
Promotion of direct sales of HQCF to local end users i.e. Rural Bakeries
RURAL BAKERIES STUDY – BREAD PRODUCTIONNumbers of Bakeries
in each State Ogun State = 1019
(Made up of 16 Divisions)
Ondo State = 350/ 400
Lagos State = 241 (Made up of 22 zones)
Test Baking of Bread with Varying HQCF inclusion Rate
40% HQCF inclusion in Bread, Loaves having depression at the middle
10% HQCF inclusion in Bread, Loaves having no
noticeable difference with normal loaves without HQCF
inclusion
Training of Farmers and processor Groups on Business Development & Management The training took
place on Tuesday 22nd November 2011 in AMREC conference hall, UNAAB.
67 participants comprising of 33 Female and 34 Male from 17 groups
Input Sourcing and Supply in Cassava Production and Processing – Bernard Siwoku - BDA
Module 2 – (a) Processing and Packaging of products – Dr (Mrs) M. Adegunwa
(b) Quality Control, Personal and Environmental hygiene
Module 3 – Sources of Market and Marketing of Products – Bernard Siwoku - BDA
Module 4 – Record Keeping: An Essential Tool for Profitable Venture –Dr (Mrs) D.A. Adegbite
Module 5 – Formidable Cooperative Groups and Sourcing of credit Facilities– Dr (Mrs) F.O. Ayinde
Training of Nigerian Engineers & Socio –Economists on Cassava SME Audit s As part of the CTAP,
Cassava SME Audit was carried out using 7 teams (2 Engineers & 1 Socio – Economist).
Conducted SME Audits in over 120 locations in Nigeria, Feb 2012.
To upgrade, obtain LPO via NICAPMA, link deliveries of HQCF, Quality mgt
Retrofit of Flash Dryers NOBEX retrofitted
Micmakin Limited flash dryer
NIJI LUKAS retrofitted the flash dryer at Eagle Baba Limited, Osogbo, Osun State.
Peak Product was not ready for testing as the company was developing a Heat Exchanger for the Flash Dryer
Sales Volume per Company
Peak Products - HQCF = 162 TStarch = 135 T
(March 2011 – February 2012)Thai Farms Int’l - HQCF = 1,030 T
(Oct – Dec 2011 & Jan 2012)
C: AVA Achievements
Year‐end Actual Apr‐12**Flash dryingNo of Dryers upgraded 3 25HQCF (t/year) 1192 10,000Fresh cassava (t/year) 4,768 40,000# factory employees 238 813# FCR suppliers 2,384 20,000# wet cake suppliers 0 510Direct beneficiaries 2,658 21,323Average annual return / direct
beneficiary $163 $129
Sales volume from VPUs on Cassava Products VPU Cassava
Products mostly gari, wet fufu, lafun (average of 35 ton/month x 11 months x 62VPus= 23, 529 tons
FCR: 94,116 tons Prices: N8,000-
11,000/ton
SMEs (Blopamed, Sunshine, UNAAB IPU)Fufu flour: 48 tons
S/
N
PRODUCT CAPACITY PRICE
PER TON
1 Sunshine Cassava
Flour
80,000
2 Sunshine Fufu Flour 110 ‐
120,000
Purchase of cassava
root
N10,000/
ton
Monthly Price Monitoring (April 2011-March 2012)
Qtr 1 Qtr 2 Qtr 3 Qtr 4Wheat flour (/bag) N5,250-
N6,000N 5,800 –6,200
5,900 –6,200
5,900 –6,200
HQCF price at factorygate * (/ton) Peak Products
LimitedN 80,000 –85,000
N 80,000 N 80,000 –100,000
N 80,000– 100,000
Thai Farms Int’l N65,000 –80,000
N65,000 –80,000
N65,000 –80,000
N65,000 –80,000
Price cassava roots atfarm gate (/ton)
Ogun N10,000-12,500
N 6,000 –10,000
N 6,300 –13,000
N 6,050 –13,000
Ondo N 6,000 –27,500
N 8,500 –27,500
N 8,500 –30,000
N8,500 –29,000
Price wet cake (/ton) N 22,000/t N 18,000 –20,000/t
N 22,000/Tonne
N 18,000– 20,000
Diesel price (/litre) N 115-165/Ltr
N 142-N155/Ltr
N 115-165/Ltr
N150-159/Ltr
Exchange rate (1USDto local currency)
N150 N153 N155 N157
Household and Livelihood Study Aim: To study rural household decision making and
changes with new income generating opportunities (food security, gender, agri decisions).
Participants were selected RANDOMLY from group lists from the following communities Iwoye Ashipa-Ilaho Kemta-Apakila Igbara-Oke Oba-Ile Eyin-Ogbe(Owo) Non-CAVA community but participating? Lora....to report
National Cassava Transformation Agenda Plan
FMARD developed a CTAP with inputs from C:AVA Nigeria. 10% 300,000 t/annum; 40% 1.2m t/annum.
Cassava Transformation Team has been constituted at the State level with C:AVA involvement
C:AVA Nigeria Country Manager – Prof. L.O. Sanni has been made the National Consultant for the HQCF value Chain (SMEs!)
Collaborations & Other Events FMARD – CTAP OGSCRP – Implementation of the CTAP in
Ogun State Broadcasters’ Forum on “The Cassava
Revolution: The Key to Nigeria’s Economic Recovery”
Eagleson & Nito Ltd – Establishment of Cassava Processing SME in Lagos State
UNAAB AMREC - Training of Farmers and processor Groups on Business Development & Management
Challenges Low Market opportunities for HQCF processors Policy fluctuations (10% or 40% in clHQCF?) End Users’ non cooperative attitude FD Fabricators responses to retrofitted FDs varied with
more positive disposition from NOBEX. Quality Management Issue at SMEs.... There are some sharp practices in the acceptance of HQCF
in the country in term of purchase price by the flour millers. C: AVA’s retrofitted strategy now part of the national
Transformation strategy for 127 SMEs. Diesel price went as high as N165/ Litre in the course of the
reporting period and It is currently around N155 - 160/ Litre but there is rumour of an increase in the price soon.
Success Stories
NOBEX SUCCESS STORY
Assessed October 2009: the Nobex DoubleCyclone Dryer had the best overallperformance of 10 dryers tested in Nigeria andGhana by Dr Andy Marchant (CEng, FIAgrE,FIHort.).
June 2010: Nobex Four Cyclone Flash Dryerwas assessed and adjudged to be the highestefficiency drier assessed to date, by Dr AndyMarchant (CEng, FIAgrE, FIHort.)
March 2011: To deliver 4-cyclone to Malawianclient courtesy C: AVA
Winding-up C: AVA organise open days for the retrofitted
Factories (April 2012 – March 2013) Support development of linkages between identified
markets and upgraded factory operations (April 2012 – March 2013)
Ensure consistent raw material supply and village processing groups in proximity to the retrofitted factories (April 2012 – March 2013)
C:AVA to continue to integrate its strategies into the National CTAP at the Federal and State levels (April 2012 – March 2013)
C: AVA office to document all activities (Jan -March 2013)
Scaling and sustainability of CAVA interventions
Without further financial supportfrom the Bill and Melinda GatesFoundation
Collaboration with FMARD forAdoption of C:AVA strategies
Align with Ogun and Ondo StateCassava revolution strategies
Backstop NICAPMA in pushingfor more market opportunitiesand fair pricing
Disseminate findings from C:AVA achievements
If another round of funding for CAVAactivities would be available.
Adopt multiproduct approach Expansion of C:AVA project to
other States e.g. Lagos, Oyo, Osun, Edo & Ekiti
Collaboration with FMARD for Adoption of C:AVA strategies for implementation of the CTAP for other value chains – chips, garri, ethanol, starch, etc
Baking trials with FMARD,NICAPMA, MBAN, FMAN & BMANin 6 geo-political zones
Organise several NationalStakeholders’ meetings half yearly
Mass media coverage of activities Strengthening NICAPMA
Thank you for your attention!