C:AVA NigeriaYear 4 Annual Report

PresentationProfessor Lateef O. Sanni (Country Manager)

Email: lateef_2@yahoo.com

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!