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INDUSTRIAL PROFILE ON CASSAVA CHIPS PRODUCTION Sep. 27 FIIRO Mandate no comments INTRODUCTION Cassava Chips and is a product derived from cassava. Nigeria is the largest producer of cassava in the world with a yield of about 54 million tonnes of cassava in 2012. Cassava (Manihot spp) is a tropical perennial crop cultivated mainly for its edible root, is a staple food consumed worldwide and provides much economic benefit to the producers. Cassava can be processed in a variety of ways to arrive at different products including as gari, fufu, lafun, starch, chips and pellets, etc. Cassava chips are unfermented white dried products of cassava with an average diameter of 3mm – 5mm often used as a carbohydrate base in the animal feed industry particularly in Europe, or milled into flour for other uses such as in the production of ethanol, cakes, dough-nut and biscuits. MARKET INFORMATION The demand for Cassava Chips as an industrial product is wide. It cuts across so many industries such as distilleries,

Industrial Profile on Cassava Chips Production

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Page 1: Industrial Profile on Cassava Chips Production

INDUSTRIAL PROFILE ON CASSAVA CHIPS PRODUCTION

Sep. 27 FIIRO Mandate no comments

INTRODUCTION

Cassava Chips and is a product derived from cassava. Nigeria is the largest producer of cassava in the world with a yield of about 54 million tonnes of cassava in 2012.

Cassava (Manihot spp) is a tropical perennial crop cultivated mainly for its edible root, is a staple food consumed worldwide and provides much economic benefit to the producers. Cassava can be processed in a variety of ways to arrive at different products including as gari, fufu, lafun, starch, chips and pellets, etc.

Cassava chips are unfermented white dried products of cassava with an average diameter of 3mm – 5mm often used as a carbohydrate base in the animal feed industry particularly in Europe, or milled into flour for other uses such as in the production of ethanol, cakes, dough-nut and biscuits.

MARKET INFORMATION

The demand for Cassava Chips as an industrial product is wide. It cuts across so many industries such as distilleries, pharmaceutical, food and most especially the animal feed industry. The estimated demand for Cassava Chips in Nigeria was found to be in excess of 1,500,000T/annum. There is a high export demand in China especially for ethanol production. In fact, Nigeria is planning to export chips to China to the tune of 1,100,000T this year.  This is a clear indication that Cassava Chips has a high market potential.

RAW MATERIALS

Page 2: Industrial Profile on Cassava Chips Production

The raw material for Cassava chips production is cassava roots. Cassava is grown in almost all the states in Nigeria with Nigeria being the highest producer of cassava in the world with an output of about 54 milion tonnes in 2012. The 1 below shows cassava production output between 2008 and 2012.

MACHINERY AND EQUIPMENT

The machinery and equipment for cassava chips production are: Chipping Machine, Tunnel Dryer and Packaging Machine.

PROCESS TECHNOLOGY    

The process technology consists of the following simple basic unit operations:

SORTING AND WEIGHING: The cassava roots delivered for processing are sorted and the wholesome ones selected following by weighing.

PEELING: The roots are peeled manually or mechanically.

WASHING: The peeled roots are washed to remove dirt.

CHIPPING: The washed roots are chipped into thin slices of desirable sizes.

DRYING: The chipped slices are dried.

PACKAGING: The chips are packaged in sacks ready for the market..

PRODUCTION PROGRAMME

Production Days/Week  :   6

Page 3: Industrial Profile on Cassava Chips Production

Production Week/Annum :  50

Production Day/Annum   :  300

Production Volume/Day  : 10 Tonnes

Production Volume/Annum :  3,000 tonnes

Input – Output  :  1 : 0.45

Based on the above assumptions, the proposed five-year production programme is shown below.

LABOUR REQUIREMENT

For efficient operation of this venture, both skilled and unskilled personnel are required. These consist of the production, administrative/account and marketing personnel. About twenty seven (27) personnel are required for the project to take-off.

NB: The initial fixed capital includes factory construction, machinery and equipment, project vehicle, generator, office furniture and equipment and a borehole for water supply.

PROFITABILITY INDICATORS

Page 4: Industrial Profile on Cassava Chips Production

Return on Investment (Year 1) 54.7%

Return on Equity (Year 1) 136. 7%

Net Profit to Sales   11%

Gross Profit to Sales   15.7%

Profitability Index  2.3

Breakeven Point (Year 1)   49%

Payback Period    1.3 Years

Net Present Value @ 25%   ₦10,566,040.00

SERVICES AVAILABLE AT FIIRO

1.    Technology Transfer Training on Cassava Chips Production.

2.    Fabrication and Installation of Cassava Chips Production.

3.    Preparation of Bankable Feasibility Report/Business Plan on Cassava Chips Production

4.    Quality Control Services

Page 5: Industrial Profile on Cassava Chips Production

5.    Technical Assistance Services (including machinery and equipment installation, commissioning and personnel training on installed plant).

FOR FURTHER ENQUIRIES, PLEASE CONTACT:THE DIRECTOR-GENERALFederal Institute of Industrial Research, Oshodi (FIIRO)2, FIIRO Road, Cappa Bus Stop, Oshodi,  P.M.B. 21023, Ikeja, Lagos, Nigeria. Website: http://www.fiiro.gov.ng E-mail Address: [email protected], [email protected], [email protected], [email protected], [email protected]  Telephone: +234-80-2341-5016, +2434-80-3720-1569, +234-80-3305-1427.