C:AVA Nigeria Year 4 Annual Report Presentation Professor Lateef O. Sanni (Country Manager) Email: lateef_2@yahoo.com
C: AVA Nigeria Major Activities (April 11 till March 31 2013) To re-assess existing market opportunities to provide updated market information to support the business case for flash dryer owners. To support development of linkages between identified markets and upgraded factory operations. October 2011 – March 2013 To support Retrofit of flash dryers manufactured by Peak Products, Nobex and Niji Lucas Limited. To hold open days at upgraded factories for members of the HQCF industry to encourage investment in upgraded processing and drying technology. May 2011 – March 2013
To review raw material supply and village processing groups in proximity to factories participating in the upgrade support plan to ensure optimal supplies of raw material for the factories. April 2011 – March 2013 To provide quality control support in the form of visits, sample analysis and programmes of corrective actions to maintain quality control throughout the value chain. April 2011 – 2013
Market opportunities for HQCF in Nigeria –May 2011
Summary .... Optimistically, there are some large market opportunities - but can quality standards and the prices be achieved??? Market Market size Replacement Size of HQCF opp Target price Price t/year t/year point N/kg (% wheat flour) Milling 2.2 million 5% 110,000 90% 75/kg Biscuit 500,000 10% 50,000 75% 67/kg Packaging 3,000 to 6,000 100% 3,000 to 6,000 >80/kg Soap 600 ??? Rural
Key factors limiting expansion of markets for HQCF in Nigeria -1 1. Ability to produce competitively – target price for HQCF into bakery sector = N58- 65/kg at current wheat price 1. Ability to meet buyer quality requirements consistently 2. Market acceptability 3. Production management (over-arching) 4. Capacity to deliver
Russel Woo, Programme Manager, Bill & Melinda Gates Foundation was in the country from 17 th to 22 nd July 2011 Russel was of the opinion that the various markets should be prioritised so that energy can be channel to the one that will yield the greatest impact once the project overall targets are met
Linkages between identified markets and upgraded factory operations
Assessment of the cost element in the production of HQCF using the flash dryer Visits to Eagle Baba,/ Peakprdts Hanneke Lam to share her final conclusions Higher production cost at SMEs Promotion of direct sales of HQCF to local end users i.e. Rural Bakeries
RURAL BAKERIES STUDY – BREAD PRODUCTION Test Baking of Bread with Numbers of Bakeries Varying HQCF inclusion in each State Rate Ogun State = 1019 10% HQCF inclusion in Bread, (Made up of 16 Loaves having no noticeable Divisions) difference with normal loaves without HQCF Ondo State = 350/ inclusion 400 40% HQCF Lagos State = 241 inclusion in Bread, Loaves having depression at the (Made up of 22 middle zones)
Training of Farmers and processor Groups on Business Development & Management Input Sourcing and Supply in Cassava The training took Production and Processing – Bernard place on Tuesday Siwoku - BDA 22 nd November 2011 Module 2 – (a) Processing and Packaging of products – Dr (Mrs) M. Adegunwa in AMREC (b) Quality Control, conference hall, Personal and Environmental hygiene Module 3 – Sources of Market and UNAAB. Marketing of Products – Bernard Siwoku - BDA 67 participants Module 4 – Record Keeping: An comprising of 33 Essential Tool for Profitable Venture – Dr (Mrs) D.A. Adegbite Female and 34 Male Module 5 – Formidable Cooperative Groups and Sourcing of credit from 17 groups Facilities– Dr (Mrs) F.O. Ayinde
Training of Nigerian Engineers & Socio – Economists on Cassava SME Audit s As part of the CTAP, Cassava SME Audit was carried out using 7 teams (2 Engineers & 1 Socio – Economist). Conducted SME Audits in over 120 locations in Nigeria, Feb 2012. To upgrade, obtain LPO via NICAPMA, link deliveries of HQCF, Quality mgt
Retrofit of Flash Dryers NOBEX retrofitted Micmakin Limited flash dryer NIJI LUKAS retrofitted the flash dryer at Eagle Baba Limited, Osogbo, Osun State. Peak Product was not ready for testing as the company was developing a Heat Exchanger for the Flash Dryer
Sales Volume per Company Peak Products - HQCF = 162 T Starch = 135 T (March 2011 – February 2012) Thai Farms Int’l - HQCF = 1,030 T (Oct – Dec 2011 & Jan 2012)
C: AVA Achievements Year ‐ end Actual Apr ‐ 12** Flash drying No of Dryers upgraded 3 25 HQCF (t/year) 1192 10,000 Fresh cassava (t/year) 4,768 40,000 # factory employees 238 813 # FCR suppliers 2,384 20,000 # wet cake suppliers 510 0 Direct beneficiaries 2,658 21,323 Average annual return / direct $163 $129 beneficiary
Sales volume from VPUs on Cassava Products SMEs (Blopamed, VPU Cassava Sunshine, UNAAB IPU) Products mostly gari, Fufu flour: 48 tons wet fufu, lafun (average of 35 S/ PRODUCT CAPACITY PRICE ton/month x 11 N PER TON months x 62VPus 1 Sunshine Cassava 80,000 Flour = 23, 529 tons 2 Sunshine Fufu Flour 110 ‐ FCR: 94,116 tons 120,000 Prices: N8,000- Purchase of cassava N10,000/ 11,000/ton root ton
Monthly Price Monitoring (April 2011-March 2012) Qtr 1 Qtr 2 Qtr 3 Qtr 4 Wheat flour (/bag) N5,250- N 5,800 – 5,900 – 5,900 – N6,000 6,200 6,200 6,200 HQCF price at factory gate * (/ton) Peak Products N 80,000 – N 80,000 N 80,000 – N 80,000 Limited 85,000 100,000 – 100,000 Thai Farms Int’l N65,000 – N65,000 – N65,000 – N65,000 – 80,000 80,000 80,000 80,000 Price cassava roots at Ogun N10,000- N 6,000 – N 6,300 – N 6,050 – farm gate (/ton) 12,500 10,000 13,000 13,000 Ondo N 6,000 – N 8,500 – N 8,500 – N8,500 – 27,500 27,500 30,000 29,000 Price wet cake (/ton) N 22,000/t N 18,000 – N 22,000/ N 18,000 20,000/t Tonne – 20,000 Diesel price (/litre) N 115-165/ N 142- N 115-165/ N150- Ltr N155/Ltr Ltr 159/Ltr Exchange rate (1USD N150 N153 N155 N157 to local currency)
Household and Livelihood Study Aim: To study rural household decision making and changes with new income generating opportunities (food security, gender, agri decisions). Participants were selected RANDOMLY from group lists from the following communities Iwoye Ashipa-Ilaho Kemta-Apakila Igbara-Oke Oba-Ile Eyin-Ogbe(Owo) Non-CAVA community but participating? Lora....to report
National Cassava Transformation Agenda Plan FMARD developed a CTAP with inputs from C:AVA Nigeria. 10% 300,000 t/annum; 40% 1.2m t/annum. Cassava Transformation Team has been constituted at the State level with C:AVA involvement C:AVA Nigeria Country Manager – Prof. L.O. Sanni has been made the National Consultant for the HQCF value Chain (SMEs!)
Collaborations & Other Events FMARD – CTAP OGSCRP – Implementation of the CTAP in Ogun State Broadcasters’ Forum on “The Cassava Revolution: The Key to Nigeria’s Economic Recovery” Eagleson & Nito Ltd – Establishment of Cassava Processing SME in Lagos State UNAAB AMREC - Training of Farmers and processor Groups on Business Development & Management
Challenges Low Market opportunities for HQCF processors Policy fluctuations (10% or 40% in clHQCF?) End Users’ non cooperative attitude FD Fabricators responses to retrofitted FDs varied with more positive disposition from NOBEX. Quality Management Issue at SMEs.... There are some sharp practices in the acceptance of HQCF in the country in term of purchase price by the flour millers. C: AVA’s retrofitted strategy now part of the national Transformation strategy for 127 SMEs. Diesel price went as high as N165/ Litre in the course of the reporting period and It is currently around N155 - 160/ Litre but there is rumour of an increase in the price soon.
Success Stories
NOBEX SUCCESS STORY Assessed October 2009: the Nobex Double Cyclone Dryer had the best overall performance of 10 dryers tested in Nigeria and Ghana by Dr Andy Marchant (CEng, FIAgrE, FIHort.). June 2010: Nobex Four Cyclone Flash Dryer was assessed and adjudged to be the highest efficiency drier assessed to date, by Dr Andy Marchant (CEng, FIAgrE, FIHort.) March 2011: To deliver 4-cyclone to Malawian client courtesy C: AVA
Winding-up C: AVA organise open days for the retrofitted Factories (April 2012 – March 2013) Support development of linkages between identified markets and upgraded factory operations (April 2012 – March 2013) Ensure consistent raw material supply and village processing groups in proximity to the retrofitted factories (April 2012 – March 2013) C:AVA to continue to integrate its strategies into the National CTAP at the Federal and State levels (April 2012 – March 2013) C: AVA office to document all activities (Jan -March 2013)
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