The technology and financial analysis of traditional processing of cassava into fermented chips, gari and agbelima in the Ga district of the Greater Accra region of Ghana

Abstract

Cassava processing is one of the major rural/informal food industries in Ghana and a survey was conducted to assess the traditional technology and financial viability of the industry in the Ga district. Traditional cassava processing was found to be extensively practised and technologies used did not differ from those employed in other parts of the country. Traditional processing of cassava into gari was assessed to be not financially viable as the variable cost per unit was higher than the unit selling price of the product. The break even analysis showed a negative gross margin of ¢132.00 on each "olonka" approximately 1.2 kg of gari processed showing that the product was under priced by the traditional processors. Initial capital outlay for traditional cassava processing into gari was ¢495,000.00 and raw material, labour and fuel accounted for about 50.21%, 39.57% and 5.23% of the total variable cost respectively. Traditional processing of cassava into agbelima was however found to be a viable venture but quantities produced were below the existing processing capacities due to limited consumption and short shelf life of the product. Break even analysis showed a positive gross margin of ¢649.00 on each mini-bag of agbelima production was about ¢154,000.00 and the raw material and labour cost constituted about 54.96% and 26.15% of total variable cost respectively