How Nigeria can improve cassava production to dominate global market

By Onome Amuge.

Cassava is a  carbohydrate-rich crop that possesses a wide range of uses in human consumption, animal feed component,biofuel and ethanol production,and in the production of confectioneries, as a stiffening agent in the textile sector among other uses.

The perennial crop also plays a significant role both as a cash  or subsistence crop in developing countries, especially in sub-Saharan Africa where it thrives well even on poor soils with low rainfall due to its drought-tolerant adaptivity. So,it is little wonder the crop is widely recognised by agronomists as the fourth most dominant staple crop in the world, after wheat, corn,and rice.

In recent times, the cassava processing market driven by the rising demand for cassava flour and cassava starch in end-use industries across the world has aided the market growth of the crop

According to a report by Market Research Future,the cassava market size was valued at $175.9 billion in 2022. The cassava industry is projected to grow from $183.25 billion in 2023 to $254 billion by 2032, exhibiting a compound annual growth (CAGR) of 4.18 per cent between 2023-2032). This, the leading market research firm noted, is buoyed by increasing demand for cassava starch in the food and beverage industry, surging usage of cassava for the production of sweeteners, and high usage of cassava in snacks and cereals which are the key market drivers enhancing the market growth.

2021 production figures by Statista rated Nigeria as the largest cassava producer in the world with an estimated 63 million tonnes, accounting for about 26 per cent of global production. This is followed by Democratic Republic of Congo  with a production volume of 45.67 million tonnes, while Thailand, Ghana, and Brazil  made up the top five largest producers with 30.11 million tonnes, 22.68 million tonnes, and 18.1 million tonnes respectively.

The major producing states of the crop in Nigeria include Benue, Kogi, Enugu, Imo, Cross-River, Ondo, Ogun, Delta, Anambra, Edo,Akwa Ibom,Rivers and Taraba states, and cultivation is dominated by smallholder farmers, who are responsible for over 80 per cent of the country’s production.

Despite Nigeria’s  dominant  position in cassava production, data by Tridge, the world’s leading data and media company in agri-food data reported that Nigeria does not rank among the top leading cassava exporters in the international market which include Vietnam,Thailand, Vietnam, Costa Rica, Cambodia, The Netherlands, Honduras,Portugal,Laos,India,Egypt and Indonesia. Infact, Nigeria was ranked 59th place on the global list of exporters in 2021. In the same year,Nigeria’s export value stood at $1.02 million, 0.057 per cent share of the world cassava export, estimated  at $3.65 billion.

Data also showed that yields in Nigeria are far below those of other major cassava producers.For instance, yields in Thailand were seen to be about 150 per cent higher compared to Nigeria  as the South-east Asian country recorded an average of 40 tonnes per hectare compared to 10-15 tonnes per hectare recorded in Nigeria.

In a report on Nigeria’s cassava output, BlueSense, a Nigerian business intelligence management consulting firm,reported that over 90 per cent of cassava produced in Nigeria is processed as food and consumed locally, while in comparison,about 10 per cent is used for industrial production and less than one per cent separated for export purposes to other countries.

“Nigeria’s cassava industry has not achieved its full potential, its supply has been unable to meet its huge demand, and the country is yet to fully cash in on the global market for Cassava and its derivatives,” it stated.

On the challenges of cassava Production In Nigeria, Bluesense observed that the trends in yield performance (production per hectare) in the country  remain low as prominent cassava farmers are smallholder farmers cultivating less than two hectares, while those with more than five hectares are about five per cent.

“Hence, there has been low productivity since farmers produce and process Cassava at a subsistence level with no possibility of commercialising the crop and competing with other cassava exporters worldwide,” the report stated.

Another challenge identified by BlueSense in the Nigerian cassava industry is the low level of value addition cassava derivatives. The firm noted that cassava production in Nigeria is mainly traditional, primarily exporting raw Cassava. Following this, it stated that many value-added products such as cassava flour, starch, and ethanol have limited processing and, in the worst case, are mostly lost through rudimentary methods.

Issues of inefficient logistics and marketing mechanisms, poor quality control and inconsistent standards were also identified as factors affecting Nigeria’s cassava industry.

According to the report, the lack of quality control measures also means a wide variation in the quality of cassava products exported from Nigeria, leading to concerns from importers about the consistency of Nigeria’s cassava products, limiting their willingness to pay a premium.

BlueSense emphasised that Nigeria’s cassava industry has the potential to be a significant player in the global market. The consulting firm however noted that for Nigeria to fully cash in on the global cassava market, the country  needs to strengthen the capacity of cassava producers to ensure that they can deliver quality products promptly to reduce the supply gap.

Thus, it recommended proper investment in farmers’ training, modern processing facilities and mechanisation to improve the quality of Nigeria’s cassava products.

There is also a need for increased investment in other value-added cassava derivatives processing, as it can result in the potential for higher returns from the global market, particularly ethanol production, sweeteners and monosodium glutamate.

“Improved quality control measures and consistent standards are also necessary to boost the competitiveness of Nigeria’s cassava products in the global market. Reliable and consistent trade policies that favour the growth of cassava production, consumption and utilisation must be implemented and properly monitored,” BlueSense advised.

Commenting on why Nigeria is yet to play a significant role in the cassava export market despite its dominant production position,Babafemi Oke, South West coordinator, Cassava Stakeholders Association of Nigeria, explained to Business A.M that cassava production in the country is dominated by small scale farmers whose subsistent  production level is not commercially viable enough to compete with other cassava exporters in the world.

Oke highlighted inadequate use of yield-increasing and labour-saving technology in cassava production and processing as one of the factors hindering Nigeria’s competence in the export market.

The cassava stakeholders coordinator also noted that the country’s land tenure system has been unfavourable to many cassava farmers who are unable to secure large expanses of land for large-scale production, making mechanised cultivation difficult for the farmers and limiting production.

Oke, therefore,called for reliable and consistent trade policies that favour the growth of cassava production, consumption and utilisation. He also urged the government and stakeholders in the global market to strengthen trade relationships with countries leading importers of cassava like China, U.S, France, Canada  and other countries to ensure  greater export possibilities.

Meanwhile, the federal government has announced plans to establish a cassava-bioethanol project in all the geopolitical zones in the country to improve the value chain of the crop, as well as ensure availability, create employment opportunities and ultimately,boost the economy.

Nebeolisa Anako, the permanent secretary, ministry of finance, budget and planning, who made the disclosure recently, said that Nigeria,as the biggest producer of cassava, ought to harness its value chains to further boost the nation’s economy.

Nebeolisa explained that  the bio-economic policy aimed at promoting sustainable economic growth and development by creating a bio-based economy that would contribute to job creation, poverty reduction, and increased access to food and energy.

According to the permanent secretary, Nigeria needs an approach that will increase food production, youth employment, and increased growth through the provision of industrial feedstock and exportable products to boost our economy.

“To achieve this, one strategic pathway is to develop the Cassava Bio-ethanol value chain. This becomes even more imperative, given the recent removal of subsidy on petroleum products, re-evaluation of the Naira through the merging of official and non-official exchange windows,” he said.