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Mission Report November 2005 “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” Mission Report November 2005 Rabo International Advisory Services (RIAS) BV “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” Colophon Title “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” Version, date 30 November 2005 Project Number 0517 Authors Sander Essers, Frans Goossens and Wim Verzijlenberg Project “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” Contact address for this publication Rabo International Advisory Services (RIAS) BV Croeselaan 18 Postbus 17100 3500 HG Utrecht Tel +31 (0)30 2163670 Fax +31 (0)30 2163677 [email protected] © CFC No part of this publication may be reproduced in any form by print, photo print, microfilm or any other means without permission by CFC Rabo International Advisory Services (RIAS) B. V. Member of The Rabobank Group “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” TABLE OF CONTENTS 1. Background of the report....................................................................................................................................................1 2. Introduction.................................................................................................................................................................................2 3. Cassava chains in Benin, Ivory Coast, Ghana and Sierra Leone.....................................................................3 3.1. Overview of supply chains of traditional and novel cassava products......................................3 3.2. Cassava production ...................................................................................................................................................4 3.3. Processing, product forms and actors............................................................................................................6 3.3.1. Traditional products............................................................................................................................................6 3.3.2. New products..........................................................................................................................................................8 3.4. Marketing...................................................................................................................................................................... 12 3.5. Equipment manufacturers ................................................................................................................................. 13 4. Past and ongoing activities and institutional actors........................................................................................ 15 4.1. Governments, research institutes and donors....................................................................................... 15 5. Opportunities and constraints....................................................................................................................................... 18 6. Recommended areas of intervention....................................................................................................................... 21 6.1. Justifications and Rationale................................................................................................................................ 21 6.2. Objectives and activities...................................................................................................................................... 22 6.3. Relation to trade agreements and other initiatives ............................................................................ 23 Annex 1: Benin Annex 2: Ghana Annex 3: Sierra Leone Annex 4: Ivory Coast Rabo International Advisory Services (RIAS) B. V. Member of The Rabobank Group “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” Acronyms and abbreviations APEX-CI Association pour la Promotion des Exportations en Côte d’Ivoire BSF Belgian Survival Fund CASPA Composante d’Appui au Secteur Privé Agricole - Benin CFC Common Fund for Commodities CIRAD Centre Internationale pour la Recherche Agricole et Développement CSRS Centre Suisse de Recherches Scientifiques DPME Direction de la promotion des petites et moyennes entreprises - Benin FAO Food and Agricultural Organization FRI Food Research Institute (Ghana) HQCF High Quality Cassava Flour IAR Institute of Agricultural Research, in Sierra Leone IFAD International Fund for Agricultural Development IITA International Institute for Tropical Agriculture I2T Société Ivoirienne de Technologie Tropicale KNUST Kwame Nkrumah University of Science and Technology MAEP Ministry of Agriculture, Livestock and Fisheries - Benin MICPE Ministry of Industry, Commerce and Employment Promotion - Benin MT Metric Tons MTI Ministry of Trade and Industry NEPAD New Partnership for Africa’s Development NGO Non Gouvernemental Organisation PDFM Projet de Développement de la Filière Manioc PDRT Programme de Développement des Plantes à Racines et Tubercules RTIP Root and Tuber improvement Programme - Ghana SAP Structural Adjustment Programme SME Small and Medium Enterprise UEMOA Union Economique et Monétaire de l’Afrique de l’Ouest UNDP United Nations Development Programme Rabo International Advisory Services (RIAS) B. V. Member of The Rabobank Group “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” 1. Background of the report Background for this study is the project proposal “Market-led Development of Enterprise-based Cassava Processing Systems in West Africa”. This proposal had been elaborated on the basis of three independent proposals originated from Benin, Ivory Coast and Ghana on cassava processing and value addition, after inclusion of Sierra Leone and consultation with some key stakeholders. The Consultative Committee of the Common Fund for Commodities (CFC) has recognised the importance of cassava and the need to strengthen commercially sustainable links between smallholder farmers, processors and end-users through the production of intermediate value-added products in West Africa. The objective of this comprehensive study is to assess the resources, markets and potential for market development in value added cassava products in Benin, Ghana, Ivory Coast and Sierra Leone. Rabo International Advisory Services (RIAS) B. V. Member of The Rabobank Group 1 “Assessment of Resources, Markets and the Potential for Market Development in Value Added Cassava Products in West Africa.” 2. Introduction Growing importance of cassava In West Africa, the importance of cassava as a commodity is steadily expanding for at least 5 decades. The crop was originally a famine-reserve and rural food crop. It gained importance as food crop both for urban and rural consumers and as new cash crop for smallholders. At the moment, cassava is the main staple of many rapidly expanding urban poles in West Africa. This evolution is reflected in the contribution of the cassava economy to the region’s gross domestic product. Many subsistence and small farmers, looking for new cash crops and opportunities, are interested in growing cassava. West African Governments, as well as the New Partnership for Africa’s Development (NEPAD) are giving priority to cassava in their regional agricultural development, industrialisation and poverty reduction strategies. Stakeholders in the cassava production and marketing chains recognise that research, extension agencies and development projects were relatively successful in the area of screening and dissemination of improved planting material. However, national programs have had greater difficulty in developing and disseminating appropriate cassava processing technologies, in assisting farmers to more effectively access new markets and in structuring supply chains. On the contrary, the emerging cassava marketing chains are highly informal which leads to high unit costs and reduces competitiveness of cassava. Cassava is in competition with imported cereals, such as wheat and rice. There is a general recognition that if the processing and marketing problem is not fully addressed, it risks imperilling gains attained so far. Clearly, diagnosing processing, marketing and demand constraints and opportunities at national, regional and international level is needed to orient future efforts in the cassava sector. The study The study adopted a supply chain approach in which value addition and market development of cassava products are seen as the main focus within the cassava supply chain, in which several stakeholders have their role, benefits, opportunities and constraints. The main goal is to identify opportunities to develop improved and new markets for cassava farmers, processors and better products and product access for end-users. To this end Benin, Ivory Coast, Ghana and Sierra Leone were visited in September/October 2005. Stakeholders in the cassava chain and Government officials were interviewed and literature and project documents studied. Organisation of the report Chapter III presents a diagnosis of the cassava chain in the four countries involved. Chapter IV looks at ongoing
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