1. Cassava processing and marketing FIRST REGIONAL MEETING OF IFAD ROOTS & TUBERS PROJECTS 14-16 November 2007 Hotel Somatel - Douala, Cameroon MARKETING PERSPECTIVE OF THE NIGERIA ROOT AND TUBER EXPANSION PROGRAMME (RTEP) NATIONAL CENTRE FOR AGRICULTURAL MECHANIZATION, ILORIN FEDERAL AGRO PROCESSING AND MARKET EXPANSION GROUP (FAMEG) Regional Cassava Processing and Marketing Initiative BY

2. Cassava processing and marketing Objectives & Tasks of RTEP marketing component FAMEG – implementing institution of the RTEP marketing component at the federal level. FAMEG’s major tasks: Technical support and training to SAMEGs at the state level Expand domestic market opportunities Establish linkages and information systems: National database of equipment fabricators, processors and industrial end-users Market information system Raise public awareness on cassava products Develop strategies for the international market Develop products for yam, potato and cocoyam

3. Cassava processing and marketing Activities and Achievements: Training –130 SAMEG officers and over 260 groups on product development and economic utilization of R&T crops –SAMEGs/Groups on preparation of feasibility reports Creating marketing groups/associations : 60 R&T Groups/ Associations Identifying and promoting markets –Identification of over 50 domestic industrial markets for R&T products including flour mills, textiles companies, adhesives/glues etc. –Identification of international markets for gari (Europe) and chips China). –Exploratory study on cassava utilization in the domestic animal feed market. –Inventory of marketers and end-users of R&T products in RTEP states –Newsletters and product promotion brochures for marketing of R&T products.

4. Cassava processing and marketing CONT.. Linkages –Identification and development of market linkages between equipment fabricators, processors and end-users –Linkage of over 120 processing groups with end-users Result Significant increase in the volume and value of R&T trade

5. Cassava processing and marketing MARKETING CONSTRAINTS IN THE 1 ST TRI-TERM Lack of credit and venture capital Poor roads and high transportation costs Market information system poorly developed High price fluctuation: supply-demand imbalance during peak and scarcity periods. Low profit margins Macro-economic environment unfavourable: policy instability and weak institutional support Poor storage technologies

6. Cassava processing and marketing  Identification and training of viable marketing groups and associations Building and Strengthening Chain Linkages: –Among processors, marketers, end-users; e.g. encouraging flour mills to develop effective network of HQCF suppliers. –Access to credit institutions Developing a functional R&T Market Information Service (MIS) Training marketers to supply products that meet specifications of end-users, SON and NAFDAC Lobbying the Government to ensure implementation of the policy on 10% cassava flour substitution. Develop policy dialogue for a more favourable macro-economic environment. Future Priority Areas of Work

7. Cassava processing and marketing 2 ND TRI-TERM OBJECTIVES Increase of production and productivity to bridge the competitiveness gaps Promotion of further product diversification Change from state to community-based approach; Adoption of group dynamics as the focus of extension activities; Incorporation of rural enterprise management (REM) into all production and processing activities. Market expansion Explore export markets for gari and odourless fufu for Africans in Diaspora. Increase R&T products’ demand of domestic industries

8. Cassava processing and marketing Guidelines Guidelines: Community-based approach will be the dominant intervention delivery mechanism. Diversification of Processing and Marketing Options will be the engine that would drive the entire cassava commodity chain.  Focus on group ownership of enterprises. Groups will encouraged to: -Play active role in enterprise development -Take direct control of the day-to-day running of their business -Specialize on marketing

9. Cassava processing and marketing Activities implemented in 2 ND Tri-term Training workshops –Rural Enterprise Management (REM) and Community Driven Development (CDD). –Cassava quality standards for SAMEGs & Processing Groups. –cassava commodity system analysis for SAMEGs –Market linkage and technology development (for National stakeholders). Formation of marketing groups and identification of marketing outlets. Thematic studies of the SAMEGs

10. Cassava processing and marketing Challenges and Chances Challenges Reluctance of flour millers to buy HQCF. The policy on 10% HQCF inclusion may have to be enforced Access to credit Chances Strong interest of private sector (MTN) in partnering with RTEP to develop a functional MIS Export markets for cassava derivates in West Africa and Europe

11. Cassava processing and marketing Expected Outputs Well defined marketing channels for main products like: gari, HQCF, odouless fufu and chips. Better linkage of actors within the chain. Export of over 50,000 mt of cassava derivates, particularly :gari, odourless fufu, chips and pellets. Formation of about 130 product marketing groups. Empowerment of about 10,000 families with livelihood dependent on R&T marketing.

12. Cassava processing and marketing