How lucrative is cassava business in Nigeria ?
In Nigeria, the cassava processing business is a lucrative and versatile business, but it is also one of the most unexplored opportunities that many Nigerians have not noticed, perhaps because it is too common for locals to see it as It is a gold mine. So how lucrative is cassava business in Nigeria ? Here we will answer this question.
What is the prospect of cassava business in Nigeria ?
To know how lucrative is cassava business in Nigeria , we need to know the prospect of cassava business in Nigeria. 65% of the world's total production of cassava is used for human food, and it is the main food crop for about 500 million people in low-income farmers in tropical wetlands.
The answer for how lucrative is cassava business in Nigeria includes the following respects:
Cassava is mainly used for food, feed and industrial development and utilization. Root starch is one of the main raw materials for starch production in industry.
High quality cassava flour can be used for baking bread, cakes, etc. Nigeria imports 635 billion nair ( about $4.2 billion) worth of wheat a year, which could save 315 billion nair (us $2 billion) if cassava flour were used instead of 50 percent of the wheat used in bread processing, agriculture minister Adesina said. To substitute wheat flour with cheap cassava flour is an example of how lucrative is cassava business in Nigeria.
Garri - a popular staple food of more than 80 million people in Nigeria.
Fermentation industry is an important industry to prove how lucrative is cassava business in Nigeria, cassava starch can produce alcohol, citric acid, glutamic acid, cassava protein, glucose, fructose, etc. These products have important applications in food, beverage, medicine, textile, papermaking and so on.
The roots of the cassava can be reused as fertilizer and animal feed. Waste materials such as waste residue from fermentation can also be used as fertilizer. Therefore, how lucrative is cassava business is demonstrated by its ability to provide cheaper alternatives to existing sources of animal feed.
At the same time, cassava is also an energy plant with great development potential and is one of the important pillars of the development of biomass energy industry.
Ethanol and biofuels is an example of how lucrative is cassava business in Nigeria – cassava can be processed into ethanol and other biofuels that can be used to power cars and some industrial machines.
With the gradual maturity of various deep processing technologies, cassava has gradually become the world's recognized high-value economic crops and important industrial raw materials, with an annual global trade volume of 20 billion US dollars.
Cassava processing plant
The above application is an obvious demonstration of how lucrative is cassava business in Nigeria. But to know exactly how lucrative is cassava business in Nigeria, a profit analysis is needed. Here we take cassava starch as an example to analysis the profit:
Who is the potential customer of processed cassava products?
Even we know how lucrative is cassava business in Nigeria, we need to know our potential customer for sale. Locally, Nigeria cottage industry can buy cassava products. For example, perfumery and pesticide manufacturers, pharmaceutical companies, breweries, noodle and pasta companies, poultry and livestock farms, as well as international trading companies that supply cassava pellets to overseas food processing companies, will order cassava pellets.
Where is the profit of cassava processing? Is the domestic market or the export market?
Since we know how lucrative is cassava business in Nigeria, we need also to think about the market for cassava business. Garri itself has a huge domestic market because garri - a popular staple food in Nigeria, is consumed by more than 80 million people every day. In addition, Nigeria's population grows by more than 3% a year, which means that garri will have a large domestic market that can guarantee annual sales. Industrial starch also has a huge market.
Cassava processing machine
China is a huge foreign market, is also an example shows how lucrative is cassava business in Nigeria. In recent years, with the development of downstream industries such as fuel ethanol, modified starch, food, chemical, textile, etc., the demand for cassava at home and abroad has increased year by year. According to China Customs statistics, from 2000 to 2005, China's cassava imports increased by more than 3 million tons. Since 2005, China has become the world's largest importer of cassava, and the current annual import volume has reached 5 million tons. Therefore, the market prospects for cassava processing at home and abroad are very broad.
In Nigeria, although only 50,000 tons of cassava granules exported to China each year, but it is worth 20 million US dollars, and with the value of 400 US dollars per ton. This not only shows how lucrative is cassava business in Nigeria, but also reminds us that China is an important export market.