The outlook for Nigeria’s cassava sector appears grim because key players have labeled the extensive imports of starch by companies that previously bought domestically as detrimental.
It is reported that this situation has enraged industrial cassava processors who invested billions to establish factories for producing starch and premium quality food-grade flour, leading some to cease their operations, as Weekend Trust gathered.
Nowadays, farmers have to depend exclusively on garri processors, who offer prices below the production costs. This has occurred because industrial processors no longer buy cassava directly from the farmers.
In December, a ton of cassava was sold for over N120,000, varying by region. Currently, however, prices have plummeted to range from N80,000 to N90,000 per ton. A processor has warned that this could worsen further, 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 cassava processors and farmers are currently facing difficult circumstances.
We are holding an urgent assembly as a group to examine this issue 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 one of our members manufacturing this 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 nowadays. However, the yield from this harvest has faced challenges, mainly due to the fact that industrial processors, who possess the necessary processing capabilities, usually collect most of the produce.
He mentioned that the processors found out some local consumers purchasing the cassava starch and flour had stopped their 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 them either for processing purposes,” explained Kehinde.
In a WhatsApp commentary, one of the participants stated, “We reached out to The Presidential Initiative forUnlocking the Healthcare Value Chain (PVAC), along with NAFDAC, but it seems they do not comprehend the circumstances.”
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 warehouses full of corn/tapioca starch—including the major international corporations.
Currently, with more than 40 processors 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 alliance is outraged that several members took loans from the bank to assist the farmers, and now that harvesting season has arrived, the farmers can’t sell their produce because nobody wants to accept their goods.
Therefore, the banks are pursuing these farmers, and the worst thing for the farmer might be to sell their produce to someone who only processes garri or fufu. If this happens, the farmer may struggle to recoup their initial investment and consequently lose motivation. This implies that they will stop working with us. Hence, this poses a significant challenge.
However, following our meeting last Friday, we asked for the assistance of NAFDAC and the Pharmaceutical Manufacturers Association of Nigeria; they must 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 prior to 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 areas where the government could assist us further.
While I am speaking to you, there isn’t yet a national policy regarding cassava. This issue was brought up with the Minister of State for Industry, who then instructed 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 backing from both the President and the National Assembly to ensure these plans come to fruition this year. If we establish a national policy, I believe it would address many of the concerns currently being discussed.
Esson Malafiya, who owns a one-hectare cassava farm in Doma, Nasarawa State, mentioned that the selling price has dropped so low that it doesn’t cover his expenses for cultivating the land.
A cargo of cassava in a pickup van is now priced at N80,000 to N100,000, compared to the N170,000 to N210,000 it fetched around five months prior.
He stated that he wouldn’t sell for less than N80, 000 because the losses would be significant, anticipating improved prices in the upcoming months. However, prominent figures indicated that prices could drop sharply instead.
However, Mr. Austin Benedict, who declined to sell his cassava in Awo Adaba, Kogi earlier this year with hopes of securing a higher price, is now facing similar challenges as the price has dropped from N170,000 per tricycle load to N130,000.
He mentioned that despite the reduced prices during the wet season due to cassava’s high water content, he anticipates a minor decrease.
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