Feasibility study on organization of supply lines for cassava chips

Abstract

The study was carried out between September and October 2004. Actual fieldwork involved collection and review of available literature, stakeholder consultations, interviews with poultry farmers, feed milers, former chips exporter, cassava producers, cassava chips processors, researchers and development agencies, and policy makers. The study covered the Ashanti, Eastern, Central and Greater Accra Regions. Cassava is the most cultivated food crop in Ghana, estimated to be cultivated by 90 percent of the rural households. Cassava has been processed into different forms for food and industrial use but to a lesser extend into chips for animal feed. The implementation of the RTIP has increased the production of cassava and new and profitable end uses must be found. Cultivation is largely for domestic needs and for the local market until the PSI on cassava came on board. It costs around ¢ 1,600,000 per acre to cultivate. The aim of the study is to assess the feasibility of organizing the supply lines for cassava chips. The existence of a reliable supply of fresh roots at a competitive cost will be a factor determining the viability of any alternative cassava processing operation. The ability of farmers to gain access to other markets for their produce will be a major factor influencing the supply of cassava for a particular processing end use. Generally, price of fresh cassava are likely to be more attractive than those that a processing enterprise could afford. A study by Day et al (1996) show that the price T&CG paid for dried chips at a collection point close to the farms was ¢2,600 per 91 kg unit, which they considered as farm gate prices compared to the wholesale prices in excess of ¢5,000 for the same weight. The price paid by T&CG for chips is not strictly equivalent to farm gate price for cassava since farmers also incurred costs associated with chipping and drying. The wholesale prices on the other hand also reflect transport and marketing costs incurred between the farm and the wholesale market. In summary, the supply of cassava for processing into chips will depend on: Ease of access to fresh marketing channels; ,Ease of access to other processing outlets, e.g. gari, kokonte, agbelima etc; Other competing uses, e.g. as food security reserve; Transport links in the cassava producing area; Varieties of cassava available, e.g. for human or for otheruses; Staple status of cassava in the area; and Seasonality, transportation difficulties, harvesting difficulties, drying operations, and overall seasonality of agricultural production processes. Seasonality in competing uses of cassava. Organization of cassava supply for a processing operation would have to take issues, affecting availability of steady supply and predictable flow into consideration. In fact, new end uses of cassava must be integrated into existing production and marketing system. Additional production must be encouraged to serve the new use and income source.