Cassava market and value chain analysis: Ghana case study

Abstract

This study was carried out by a Team from the Natural Resources Institute (Ulrich Kleih and David Phillips) and Food Research Institute (Marian Wordey and Gregory Komlaga), from 19th to 30th November 2012 to reassess the functioning of the cassava value chain in Ghana and analyse the industrial demand for dried cassava products (e.g. dried chips, industrial flour or HQCF) and their equivalent in fresh roots. In Ghana as in other parts of Africa, cassava is primarily used for human consumption via sales of fresh roots and processed products in markets. However commercial use of cassava is increasing as a result of increased urban demand for processed cassava products and increased recognition of its industrial potential (Jumah et al., 2006). Incomes from cassava production and post-harvest processing of cassava represent around one fifth of Ghana’s agricultural GDP. With many people engaged in activities related to cassava it contributes significantly to incomes and rural livelihoods for both men and women. Further opportunities for increasing incomes from cassava exist with growing interest in utilising cassava in different industries due to various factors including changes in technology and rising cost of the US dollar relative to local currency. As part of the BMGF funded ‘Cassava: Adding Value for Africa’(C:AVA) work a large number of farmers, small and medium-scale processors are directly involved in producing high-quality cassava flour (HQCF). In 2011 approximately 1000 MT of HQCF was produced in Ghana. Almost one half of this was supplied to the plywood manufacturing sector, and a larger percentage to the food industry, demonstrating that demand exists in both food and non-food sectors for high quality processed cassava products. From this study it is clear that different processed cassava products have potential utility in different end-user markets. The primary cassava value chains and end-uses can be categorised as follows: HQCF – to replace wheat or corn flour/starch in baked goods, biscuits, and paperboard, Industrial-grade cassava flour – as a glue extender in plywood manufacturing, Improved chips / grits – as energy provider in animal feed. A brief summary of the potential for each market sector follows. The summary highlights how it is more likely to develop markets in the short to medium term in instances where cassava is a secondary raw material (i.e. plywood and animal feed) compared to markets where it is a more principal component, e.g. bread baking