The outlook for Nigeria’s cassava sector appears grim because key figures have labeled the situation as an extensive importation of starch by companies that previously bought domestically.
It is reported that this situation has enraged industrial cassava processors who invested billions to establish factories for producing starch and premium food-grade flour, leading to the closure of some facilities, as Weekend Trust gathered.
Nowadays, farmers have to depend exclusively on garri processors for their cassava sales. However, these processors offer prices below the production costs, as industrial processors no longer buy cassava directly from the farmers.
In December, a ton of cassava was sold for over N120,000, varying according to location. Currently, however, the prices have plummeted to range from N80,000 to N90,000 per ton. A processor noted that this could worsen further, potentially dropping as low as N50,000 to N70,000 per ton.
Kehinde Lawrence manages the Industrial Cassava Stakeholders’ Association of Nigeria (ICSAN). During a phone conversation with Daily Trust on Wednesday, he stated that both the processors and the farmers find themselves in a difficult position.
We are holding an urgent assembly as a group to investigate this matter further and gather specific data regarding the quantity of imports, their impact on local consumption, particularly focusing on food-grade starch and sorbitol. Sorbitol serves as a sweetener and is a key component in toothpaste production.
“We also currently have a member who is manufacturing this product locally. Additionally, we have numerous producers of food-grade starch spread throughout various states nationwide,” he stated.
He mentioned that the organization is worried as many individuals have started engaging in cassava cultivation, with some doing so extensively. However, the yield from this crop has faced challenges, mainly due to industrial processors facing difficulties; they are typically the ones equipped for processing.
He mentioned that the processors found out some local purchasers of the cassava starch and flour were no longer making purchases.
“So, we’re curious about what’s really going on here. This ties back to the farmers as well since if they aren’t purchasing the goods, the processors won’t buy from the farmers to process them,” Kehinde stated.
In a WhatsApp commentary, one of the participants stated, “We reached out to The Presidential Initiative forUnlocking the Healthcare Value Chain (PVAC), as well as NAFDAC; however, it seems they do not comprehend the gravity of the situation.”
The government granted licenses to 80 pharmaceutical companies to import substrates such as corn starch without any duties.
Amazingly, every local company purchasing tapioca starch found their storage facilities brimming with corn/tapioca starch—including the major international corporations.
Boasting more than 40 processors currently handling cassava starch and flour, the association feels confident in their ability to supply top-notch food-grade starch and flour to pharmaceutical firms within the nation.
The union is outraged that several members took out loans from the bank to aid the farmers, yet now that harvesting season has arrived, the farmers can’t sell their produce to them for processing since there’s no one willing to accept their goods.
Therefore, the banks are chasing these farmers, and the least favorable action for the farmer would be to sell their produce to processors of garri or fufu. If this happens, the farmer might struggle to recoup their investments and consequently lose motivation. This implies they will stop working with us. Thus, this presents a significant obstacle.
However, following our meeting last Friday, we asked for the assistance of NAFDAC and the Pharmaceutical Manufacturers Association of Nigeria; they should collaborate with us.
The processors are urging the government to promote the manufacturing sector in Nigeria to prioritize purchasing local raw materials that meet standards and are readily available domestically before considering imports from abroad.
Two weeks back, the president instructed all ministries to halt the purchase or acquisition of any materials or equipment that can be sourced domestically. We are considering these points as well, which the administration could assist us in highlighting.
While I am speaking to you, there isn’t currently a national policy regarding cassava. This issue was brought up with the Minister of State for Industry, who then tasked the relevant department within his ministry to collaborate with all stakeholders and guarantee that significant progress is made by the end of this year. However, we require the backing of both the President and the National Assembly to ensure these plans come to fruition this year. If we had such a national policy in place, I believe it would address many of the concerns we’re addressing right now.
Esson Malafiya, who owns a hectare of cassava farmland in Doma, Nasarawa State, mentioned that the selling price has dropped so low that it doesn’t cover his expenses for cultivating the land.
The price for a pickup truckload of cassava now ranges from ₦80,000 to ₦100,000, compared to the previous rate of ₦170,000 to ₦210,000 approximately five months back.
He stated that he wouldn’t sell for less than N80, 000 because it would result in significant losses, expecting improved rates later; however, major participants indicated that prices could drop sharply.
However, Mr. Austin Benedict, who declined to sell his cassava in Awo Adaba, Kogi earlier this year, anticipating a higher price, is now facing similar disappointment as the cost has dropped from NGN 170,000 per tricycle load to NGN 130,000.
He mentioned that despite the reduced prices during the wet season due to cassava’s high moisture content, he anticipates a minor decrease.
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