Rivers State Cassava Initiative

RIVERS STATE CASSAVA INITIATIVE

THE PARTNERS The Rivers State Cassava Initiative (RSCI) is under the umbrella of the Rivers State Sustainable Development Agency (RSSDA) and made up of a team of senior executives from RSSDA, DADTCO, IFDC, Stanbic IBTC Bank and the Shell Petroleum Development Company. The Kingdom of the Netherlands, represented by His Excellency the Ambassador to Nigeria, has been serving as the facilitator of this initiative.

Developing

The RSSDA has agreed to represent the State and hold an equity position on its behalf. In addition, RSSDA will coordinate all activities under the Initiative to ensure successful implementation. RSSDA is responsible for 45 percent of the equity, the infrastructure as well as the funding of the program. RSSDA is the coordinatoring agency for the RSCI and protects the joint venture from local obstacles.

Opportunities Through

Cassava

The Dutch Agricultural Development & Trading Company B.V. (DADTCO) is the owner of the patented DADTCO split processing technology consisting of autonomous mobile processing units (AMPUs) which allow processing at the farmers’ fields. Centralized drying, milling and sieving allow production of the highest quality products. DADTCO already owns/ manages highly successful cassava processing plants and AMPUs in Taraba and Osun States. DADTCO is responsible for 51 percent of the equity (€ 2 million) and is the supplier of the processing equipment, the management and marketing.

The International Fertilizer Development Center (IFDC) has an extensive track record of successful agricultural and rural development projects in Nigeria and across Africa. IFDC works closely with the Nigerian Federal and State governments, as well as on projects in the country funded by donors such as the U.S. Agency for International Development, the Netherlands’ Ministry of Foreign Affairs and the Alliance for a Green Revolution in Africa (funded by the Rockefeller Foundation and the Bill & Melinda Gates Foundation). IFDC is responsible for the execution of the smallholder farmer development program and 33 percent of the funding (in close cooperation with RSSDA).

Stanbic IBTC has agreed to identify the necessary financing to support the factory’s requirements as well as create opportunities for participating smallholder farmers. Stanbic IBTC is responsible for providing a loan of approximately 40 percent of the total investment and loans to farmers under the favorable conditions of CAC funds from the Nigerian Central Bank.

Design: Terna Harlem Kaikyenge

The Shell Petroleum Development Company (SPDC) has agreed to partner with DADTCO and RSSDA as a minority shareholder. SPDC is responsible for 4 percent of the equity through in-kind contributions of land and access to fuel sources (the electricity grid and/or natural gas).

A

new and innovative Dutch technology is dramatically changing the way cassava is perceived, produced and processed in Nigeria. The Dutch Agriculture & Development Trading Company (DADTCO) has developed a patented split processing technology for creating high-quality cassava flour (HQCF).

This technology opens up a new – and until now – untapped market for high-quality flour that can compete effectively with costly imports (glucose, starch and wheat flour). At the same time, an efficient method to reduce costs has been created to bring the factory close to the production fields, allowing smallholder farmers to supply cassava with minimal transportation costs.

THE RIVERS STATE CASSAVA INITIATIVE To ensure that the Rivers State Cassava Initiative (RSCI) is a success and that the State’s smallholder farmers reap the benefit, a powerful partnership has been created. The RSCI is being spearheaded by the Government’s Rivers State Sustainable Development Agency (RSSDA). Additional partners include the Dutch Agricultural & Development Trading Company (DADTCO), the International Fertilizer Development Center (IFDC), the Shell Petroleum Development Company (SPDC) and Stanbic IBTC Bank.

huge potential market for smallholder farmers to increase their cassava production. In summary, the RSCI: Is based around experienced project partners that will support the total Cassava Value Chain.

Brings a tested approach that is fully operational and is being implemented successfully in two other locations in Nigeria.

Ensures a reliable and affordable energy supply.

Provides a local market for cassava flour/starch to satisfy Nigeria’s enormous needs for pasta, maggi cubes, bread (wheat flour substitute), beer (producing alcohol during brewing), etc.

Has solid financing, based on the financial data/results of identical projects.

Generates a sound return on investment (ROI) for all stakeholders.

THE KEY BENEFITS The Rivers State Cassava Initiative supports a village-level development program that helps teach subsistence farmers how to transition to commercial farming. In partnership with RSSDA, Cassava+ is providing farmers with exciting new agricultural mechanization technologies, farm management techniques and seasonal credit to purchase their agro-inputs.

These activities will help guarantee a sufficient supply of fresh cassava for the AMPUs and processing factory six to 18 months after ‘Day One’ of the project.

Additional benefits for Rivers State stakeholders include:

OPPORTUNITIES FOR THE CASSAVA VALUE CHAIN The DADTCO cassava processing factory in Rivers State will create opportunities for thousands of smallholder farmers to play an active and rewarding role in the supply of cassava to a guaranteed market.

The Kingdom of the Netherlands is providing funding to IFDC so that it can assist smallholder cassava farmers throughout West Africa to: 1. Move from subsistence to commercial cassava production.

2. Ensure that farmers integrate a sustainable management component into their farming systems so that their most valuable asset – their land – can continue to produce for generations to come.

DADTCO introduced the split processing technology which allows Autonomous Mobile Processing Units (AMPUs) to process fresh cassava on-farm or close-by. An AMPU produces cassava cake which can be used directly by the brewing industry or can be transported to the DADTCO factory for the production of HQCF. Due to DADTCO’s wet processing technology, starch granules are released from the tubers’ cells, creating a product that is in demand for both household and industrial markets.

The cassava processing factory in Rivers State will mirror the existing factories in Taraba and Osun states which produce as much as 30,000 metric tons (mt) of HQCF per year. There is a

The supply of cassava roots is secured by offering guaranteed minimum prices to farmers based on price levels that can compete with international markets for starch and that are sustainable.

Guaranteed uptake from the factory by multinational companies.

A highly versatile product that can be used in the home as well as for industrial purposes.

A doubling of over 4,500 farmers’ yields from an average of 10 mt/hectare (ha) in Rivers State to more than 20 mt/ha.

Over 20,000 people from Rivers State employed either directly or indirectly through this initiative.

Over N1,500,000 per day injected into rural villages in payment for fresh cassava tubers.

Increased individual farm size through a Cassava+-supported mechanization package.

Processing of 60,000 mt of cassava roots into 12,000 mt of flour per annum.

Improved food security.

Contributes to the implementation of the Post-Amnesty program for the Niger Delta.

THE INVESTMENT The total investment is equivalent to approximately €10 million, of which 30 percent will be used for the training/development of participating smallholder cassava farmers. The remaining 70 percent of the investment will be in the joint venture, which will build, own and operate the factory (consisting of the infrastructure, flash dryer and three AMPUs required to produce the flour/starch).

THE MARKET

THE DEVELOPMENT MODEL

High quality cassava flour can be used in many food products. As the world’s largest cassava producer, Nigeria has paid little attention to the use of cassava in industrial foods and beverages – until now. Recently, several studies have been conducted on the market potential for DADTCO value-added products. A few of the key results include:

IFDC is coordinating the development component of the Rivers State Cassava Initiative through a grant from the Royal Kingdom of the Netherlands.

IFDC will help develop the capacity of smallholder cassava farmers in Nigeria and across West Africa.

Macaroni and spaghetti can be produced with locally produced, high-quality cassava flour – replacing more expensive wheat flour. Tests indicate that both the taste and texture of the products are improved.

Results from a taste test indicate that replacing between 20 and 40 percent of wheat flour with cassava flour produces spaghetti and macaroni noodles that are preferred by Nigerian consumers over products made with 100 percent wheat flour.

The knowledge that cassava flour is used in the production of these products instead of wheat flour does not produce negative opinions in Nigerian consumers who participated in the tests. The opinions can be used in the branding of new types of macaroni and spaghetti.

Because cassava spoils within 48-72 hours of being harvested, it has remained a subsistence crop, grown for home consumption and for sale only in local markets. The DADTCO technology brings cassava processing close to the fields, thereby reducing the need and cost for farmers to transport the easily perishable tubers over long distances.

DADTCO’s cassava cake is a significantly more costeffective ingredient for the brewing industry than imported glucose syrup or starch from barley.

SABMIller, the second-largest brewer in the world, has chosen cassava cake produced by DADTCO to replace a significant portion of its imported raw materials at breweries serving as many as 13 African nations.

The cooperation between SABMiller and DADTCO has the potential to provide millions of smallholder cassava farmers across Africa with a guaranteed income and a good future.

Up until now, an inadequate and regular supply of raw cassava to “feed” processing factories – coupled with inefficient processing systems – have prevented cassava from becoming a major commercial crop. By linking participating smallholder cassava farmers to a guaranteed market, the RSCI will help them increase their yields and incomes, reducing poverty and generating economic development.

THE WAY FORWARD

HQCF serves as a binding agent for food and industrial purposes due to starch granules that have been released from the product’s cells. Market opportunities include: Bouillon cooking cubes (such as those produced by Knorr and Maggi) consist of approximately 20 percent starch.

Nigerian mosquito coils are currently utilizing HQCF as a binding agent.

The amnesty program negotiated by Nigerian authorities and militants presents a unique window of opportunity to bring peace, stability and economic development to the cassavaproducing areas of Rivers State – and possibly other states in the Niger Delta. The development model already proven by DADTCO and IFDC can substantially improve the chances of success for the armistice and help the region transition to peace.

DADTCO’s HQCF, consisting of 95 percent starch, can be further processed efficiently into sugar substances for additional market opportunities, such as: Glucose – a simple sugar that is the main source of energy used by the human body – is used in making canned soups, beer, snacks, tomato paste, etc.

Sorbitol – a sugar substitute – is utilized in toothpaste production, chewing gum and cough syrups (to name a few).

DADTCO’s split processing technology allows the AMPUs to be sent to key cassava production areas while the primary factory is located near a low-cost energy source. IFDC will identify primary locations where farmers will be organized into clusters and sub-clusters of production to “feed” the AMPUs – DADTCO’s field processing centers.

A win-win-win situation has been created in which cassava farmers, DADTCO as the processor and large industrial end-users in the Nigerian cassava value chain are linked together for mutual benefit. This concept is already a reality in both Taraba and Osun States.

THE RIVERS STATE CASSAVA INITIATIVE To ensure that the Rivers State Cassava Initiative (RSCI) is a success and that the State’s smallholder farmers reap the benefit, a powerful partnership has been created. The RSCI is being spearheaded by the Government’s Rivers State Sustainable Development Agency (RSSDA). Additional partners include the Dutch Agricultural & Development Trading Company (DADTCO), the International Fertilizer Development Center (IFDC), the Shell Petroleum Development Company (SPDC) and Stanbic IBTC Bank.

huge potential market for smallholder farmers to increase their cassava production. In summary, the RSCI: Is based around experienced project partners that will support the total Cassava Value Chain.

Brings a tested approach that is fully operational and is being implemented successfully in two other locations in Nigeria.

Ensures a reliable and affordable energy supply.

Provides a local market for cassava flour/starch to satisfy Nigeria’s enormous needs for pasta, maggi cubes, bread (wheat flour substitute), beer (producing alcohol during brewing), etc.

Has solid financing, based on the financial data/results of identical projects.

Generates a sound return on investment (ROI) for all stakeholders.

THE KEY BENEFITS The Rivers State Cassava Initiative supports a village-level development program that helps teach subsistence farmers how to transition to commercial farming. In partnership with RSSDA, Cassava+ is providing farmers with exciting new agricultural mechanization technologies, farm management techniques and seasonal credit to purchase their agro-inputs.

These activities will help guarantee a sufficient supply of fresh cassava for the AMPUs and processing factory six to 18 months after ‘Day One’ of the project.

Additional benefits for Rivers State stakeholders include:

OPPORTUNITIES FOR THE CASSAVA VALUE CHAIN The DADTCO cassava processing factory in Rivers State will create opportunities for thousands of smallholder farmers to play an active and rewarding role in the supply of cassava to a guaranteed market.

The Kingdom of the Netherlands is providing funding to IFDC so that it can assist smallholder cassava farmers throughout West Africa to: 1. Move from subsistence to commercial cassava production.

2. Ensure that farmers integrate a sustainable management component into their farming systems so that their most valuable asset – their land – can continue to produce for generations to come.

DADTCO introduced the split processing technology which allows Autonomous Mobile Processing Units (AMPUs) to process fresh cassava on-farm or close-by. An AMPU produces cassava cake which can be used directly by the brewing industry or can be transported to the DADTCO factory for the production of HQCF. Due to DADTCO’s wet processing technology, starch granules are released from the tubers’ cells, creating a product that is in demand for both household and industrial markets.

The cassava processing factory in Rivers State will mirror the existing factories in Taraba and Osun states which produce as much as 30,000 metric tons (mt) of HQCF per year. There is a

The supply of cassava roots is secured by offering guaranteed minimum prices to farmers based on price levels that can compete with international markets for starch and that are sustainable.

Guaranteed uptake from the factory by multinational companies.

A highly versatile product that can be used in the home as well as for industrial purposes.

A doubling of over 4,500 farmers’ yields from an average of 10 mt/hectare (ha) in Rivers State to more than 20 mt/ha.

Over 20,000 people from Rivers State employed either directly or indirectly through this initiative.

Over N1,500,000 per day injected into rural villages in payment for fresh cassava tubers.

Increased individual farm size through a Cassava+-supported mechanization package.

Processing of 60,000 mt of cassava roots into 12,000 mt of flour per annum.

Improved food security.

Contributes to the implementation of the Post-Amnesty program for the Niger Delta.

THE INVESTMENT The total investment is equivalent to approximately €10 million, of which 30 percent will be used for the training/development of participating smallholder cassava farmers. The remaining 70 percent of the investment will be in the joint venture, which will build, own and operate the factory (consisting of the infrastructure, flash dryer and three AMPUs required to produce the flour/starch).

THE MARKET

THE DEVELOPMENT MODEL

High quality cassava flour can be used in many food products. As the world’s largest cassava producer, Nigeria has paid little attention to the use of cassava in industrial foods and beverages – until now. Recently, several studies have been conducted on the market potential for DADTCO value-added products. A few of the key results include:

IFDC is coordinating the development component of the Rivers State Cassava Initiative through a grant from the Royal Kingdom of the Netherlands.

IFDC will help develop the capacity of smallholder cassava farmers in Nigeria and across West Africa.

Macaroni and spaghetti can be produced with locally produced, high-quality cassava flour – replacing more expensive wheat flour. Tests indicate that both the taste and texture of the products are improved.

Results from a taste test indicate that replacing between 20 and 40 percent of wheat flour with cassava flour produces spaghetti and macaroni noodles that are preferred by Nigerian consumers over products made with 100 percent wheat flour.

The knowledge that cassava flour is used in the production of these products instead of wheat flour does not produce negative opinions in Nigerian consumers who participated in the tests. The opinions can be used in the branding of new types of macaroni and spaghetti.

Because cassava spoils within 48-72 hours of being harvested, it has remained a subsistence crop, grown for home consumption and for sale only in local markets. The DADTCO technology brings cassava processing close to the fields, thereby reducing the need and cost for farmers to transport the easily perishable tubers over long distances.

DADTCO’s cassava cake is a significantly more costeffective ingredient for the brewing industry than imported glucose syrup or starch from barley.

SABMIller, the second-largest brewer in the world, has chosen cassava cake produced by DADTCO to replace a significant portion of its imported raw materials at breweries serving as many as 13 African nations.

The cooperation between SABMiller and DADTCO has the potential to provide millions of smallholder cassava farmers across Africa with a guaranteed income and a good future.

Up until now, an inadequate and regular supply of raw cassava to “feed” processing factories – coupled with inefficient processing systems – have prevented cassava from becoming a major commercial crop. By linking participating smallholder cassava farmers to a guaranteed market, the RSCI will help them increase their yields and incomes, reducing poverty and generating economic development.

THE WAY FORWARD

HQCF serves as a binding agent for food and industrial purposes due to starch granules that have been released from the product’s cells. Market opportunities include: Bouillon cooking cubes (such as those produced by Knorr and Maggi) consist of approximately 20 percent starch.

Nigerian mosquito coils are currently utilizing HQCF as a binding agent.

The amnesty program negotiated by Nigerian authorities and militants presents a unique window of opportunity to bring peace, stability and economic development to the cassavaproducing areas of Rivers State – and possibly other states in the Niger Delta. The development model already proven by DADTCO and IFDC can substantially improve the chances of success for the armistice and help the region transition to peace.

DADTCO’s HQCF, consisting of 95 percent starch, can be further processed efficiently into sugar substances for additional market opportunities, such as: Glucose – a simple sugar that is the main source of energy used by the human body – is used in making canned soups, beer, snacks, tomato paste, etc.

Sorbitol – a sugar substitute – is utilized in toothpaste production, chewing gum and cough syrups (to name a few).

DADTCO’s split processing technology allows the AMPUs to be sent to key cassava production areas while the primary factory is located near a low-cost energy source. IFDC will identify primary locations where farmers will be organized into clusters and sub-clusters of production to “feed” the AMPUs – DADTCO’s field processing centers.

A win-win-win situation has been created in which cassava farmers, DADTCO as the processor and large industrial end-users in the Nigerian cassava value chain are linked together for mutual benefit. This concept is already a reality in both Taraba and Osun States.

RIVERS STATE CASSAVA INITIATIVE

THE PARTNERS The Rivers State Cassava Initiative (RSCI) is under the umbrella of the Rivers State Sustainable Development Agency (RSSDA) and made up of a team of senior executives from RSSDA, DADTCO, IFDC, Stanbic IBTC Bank and the Shell Petroleum Development Company. The Kingdom of the Netherlands, represented by His Excellency the Ambassador to Nigeria, has been serving as the facilitator of this initiative.

Developing

The RSSDA has agreed to represent the State and hold an equity position on its behalf. In addition, RSSDA will coordinate all activities under the Initiative to ensure successful implementation. RSSDA is responsible for 45 percent of the equity, the infrastructure as well as the funding of the program. RSSDA is the coordinatoring agency for the RSCI and protects the joint venture from local obstacles.

Opportunities Through

Cassava

The Dutch Agricultural Development & Trading Company B.V. (DADTCO) is the owner of the patented DADTCO split processing technology consisting of autonomous mobile processing units (AMPUs) which allow processing at the farmers’ fields. Centralized drying, milling and sieving allow production of the highest quality products. DADTCO already owns/ manages highly successful cassava processing plants and AMPUs in Taraba and Osun States. DADTCO is responsible for 51 percent of the equity (€ 2 million) and is the supplier of the processing equipment, the management and marketing.

The International Fertilizer Development Center (IFDC) has an extensive track record of successful agricultural and rural development projects in Nigeria and across Africa. IFDC works closely with the Nigerian Federal and State governments, as well as on projects in the country funded by donors such as the U.S. Agency for International Development, the Netherlands’ Ministry of Foreign Affairs and the Alliance for a Green Revolution in Africa (funded by the Rockefeller Foundation and the Bill & Melinda Gates Foundation). IFDC is responsible for the execution of the smallholder farmer development program and 33 percent of the funding (in close cooperation with RSSDA).

Stanbic IBTC has agreed to identify the necessary financing to support the factory’s requirements as well as create opportunities for participating smallholder farmers. Stanbic IBTC is responsible for providing a loan of approximately 40 percent of the total investment and loans to farmers under the favorable conditions of CAC funds from the Nigerian Central Bank.

Design: Terna Harlem Kaikyenge

The Shell Petroleum Development Company (SPDC) has agreed to partner with DADTCO and RSSDA as a minority shareholder. SPDC is responsible for 4 percent of the equity through in-kind contributions of land and access to fuel sources (the electricity grid and/or natural gas).

A

new and innovative Dutch technology is dramatically changing the way cassava is perceived, produced and processed in Nigeria. The Dutch Agriculture & Development Trading Company (DADTCO) has developed a patented split processing technology for creating high-quality cassava flour (HQCF).

This technology opens up a new – and until now – untapped market for high-quality flour that can compete effectively with costly imports (glucose, starch and wheat flour). At the same time, an efficient method to reduce costs has been created to bring the factory close to the production fields, allowing smallholder farmers to supply cassava with minimal transportation costs.