C:AVA Nigeria Year 4 Annual Report Presentation Professor Lateef O. - - PowerPoint PPT Presentation

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

• perations. 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

• f 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 17th to 22nd 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

• perations

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

Numbers of Bakeries in each State

 Ogun State = 1019

(Made up of 16 Divisions)

 Ondo State = 350/

400

 Lagos State = 241

(Made up of 22 zones)

 Test Baking of Bread with

Varying HQCF inclusion Rate

40% HQCF inclusion in Bread, Loaves having depression at the middle 10% HQCF inclusion in Bread, Loaves having no noticeable difference with normal loaves without HQCF inclusion

Training of Farmers and processor Groups on Business Development & Management

 The training took

place on Tuesday 22nd November 2011 in AMREC conference hall, UNAAB.

 67 participants

comprising of 33 Female and 34 Male from 17 groups



Input Sourcing and Supply in Cassava Production and Processing – Bernard Siwoku - BDA



Module 2 – (a) Processing and Packaging of products – Dr (Mrs) M. Adegunwa



(b) Quality Control, Personal and Environmental hygiene



Module 3 – Sources of Market and Marketing of Products – Bernard Siwoku - BDA



Module 4 – Record Keeping: An Essential Tool for Profitable Venture – Dr (Mrs) D.A. Adegbite



Module 5 – Formidable Cooperative Groups and Sourcing of credit 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 Direct beneficiaries 2,658 21,323 Average annual return / direct beneficiary $163 $129

Sales volume from VPUs on Cassava Products

 VPU Cassava

Products mostly gari, wet fufu, lafun (average of 35 ton/month x 11 months x 62VPus = 23, 529 tons

 FCR: 94,116 tons  Prices: N8,000-

11,000/ton

 SMEs (Blopamed,

Sunshine, UNAAB IPU) Fufu flour: 48 tons

S/ N PRODUCT CAPACITY PRICE PER TON 1 Sunshine Cassava Flour 80,000 2 Sunshine Fufu Flour 110 ‐ 120,000 Purchase of cassava root N10,000/ ton

Monthly Price Monitoring (April 2011-March 2012)

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Wheat flour (/bag) N5,250- N6,000 N 5,800 – 6,200 5,900 – 6,200 5,900 – 6,200 HQCF price at factory gate * (/ton)

• Peak

Products Limited N 80,000 – 85,000 N 80,000 N 80,000 – 100,000 N 80,000 – 100,000

• Thai Farms Int’l

N65,000 – 80,000 N65,000 – 80,000 N65,000 – 80,000 N65,000 – 80,000 Price cassava roots at farm gate (/ton) Ogun N10,000- 12,500 N 6,000 – 10,000 N 6,300 – 13,000 N 6,050 – 13,000 Ondo N 6,000 – 27,500 N 8,500 – 27,500 N 8,500 – 30,000 N8,500 – 29,000 Price wet cake (/ton) N 22,000/t N 18,000 – 20,000/t N 22,000/ Tonne N 18,000 – 20,000 Diesel price (/litre) N 115-165/ Ltr N 142- N155/Ltr N 115-165/ Ltr N150- 159/Ltr Exchange rate (1USD to local currency) N150 N153 N155 N157

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

• verall

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)

Scaling and sustainability of CAVA interventions

Without further financial support from the Bill and Melinda Gates Foundation

 Collaboration

with FMARD for Adoption of C:AVA strategies

 Align with Ogun and Ondo State

Cassava revolution strategies

 Backstop NICAPMA in pushing

for more market

• pportunities

and fair pricing

 Disseminate

findings from C: AVA achievements If another round of funding for CAVA activities would be available.

 Adopt multiproduct approach  Expansion of C:AVA project to

• ther States e.g. Lagos, Oyo, Osun,

Edo & Ekiti

 Collaboration with FMARD for

Adoption of C:AVA strategies for implementation of the CTAP for

• ther value chains – chips, garri,

ethanol, starch, etc

 Baking

trials with FMARD, NICAPMA, MBAN, FMAN & BMAN in 6 geo-political zones

 Organise

several National Stakeholders’ meetings half yearly

 Mass media coverage of activities  Strengthening NICAPMA

Thank you for your attention!