The Cassava revolution
The potential of agriculture to be the industrial and economic springboard in Nigeria’s economic development is a fact that cannot be over emphasized. According to a recent report of the United Nations Food and Agriculture (FAO), Nigeria is sure to earn at least $1.3 billion from cassava chips export in 2014 out of the current production of about $18 billion.
Akinwunmi Adesina, minister of agriculture and rural development, while in Lagos recently, stated that the country was able to secure contracts for 3.2 million metric tonnes of cassava chips export last year. According to him, “If we move that to Europe, we can earn 1.3 billion dollars, if we supply China, we can earn $803 million. So as the minister of agriculture, I have great interest in seeing how we can penetrate that market.”
Similarly, Segun Adewumi, the president, Nigerian Cassava Growers Association (NCGA) told BusinessDay that the country’s cassava growers have started working since last year towards making that supply this year. He said, “But the local demand is also very high because of the use of high quality cassava flour which is also made from cassava chips. Due to the near limitless use of cassava world over, even if the whole of Nigeria plants the crop, we would still not be able to meet the global demand for cassava.”
Within the last decade, more and more uses of cassava products have been discovered. Its usefulness in the pharmaceutical industry has been confirmed. Also, confirmed is the demand by the United States of America and South Africa for cassava leaves in the feeding of livestock. The principal markets for cassava products are however in Europe – the European Economic Community being the most important for dried roots – and for cassava starch the United States, the United Kingdom and Japan. China, though a producer, has also in recent times been keenly interested in buying cassava chips from Nigeria.
According to the United Nations Food and Agriculture Organisation (FAO), current world production of cassava is around 250 million tonnes a year which is about $100 billion. FAO reports show that Africa contributes to more than half of global supply, with Nigeria on top producing 45 million metric tonnes, which is about $18 billion, representing more than a third of African production alone. Nigeria is therefore adjudged the largest world producer of cassava.
FAO research shows that unlike Africa however, Asia encourages the development of cassava crops for industrial and energy purposes. This continent according to FAO contribute around a third of world production, with 60 percent, that is 25 million tonnes produced by Thailand and Indonesia producing 22 million tonnes. Vietnam and China are said to be growing in strength and both produce between 8 and 9 million tonnes a year since 2008. FAO states that about 80 percent of the cassava produced in Thailand is exported which accrues to about $8 billion annually. India, now the third cassava producer in Asia, is also experiencing continued growth in production.
Though there is growing world demand for cassava, these Asian countries, already fully grounded in export are Nigeria’s biggest competitors. Recently however, Nigeria has been developing cassava for industrial purposes for the domestic and export market. In fact banks particularly Union Bank are interfacing with those interested in growing cassava for commercial purposes.
No doubt, this is really a great opportunity for entrepreneurs. However, this stride made by the Federal ministry of agriculture the under the direction of the current minister, Adewunmi Adesina and the cassava growers in Nigeria is highly commendable and worthy of emulation.
We believe that successes such as highlighted above should be replicated in the other sectors if Nigeria’s economic transformation is to be achieved in the shortest possible period.