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The Cassava Story. Profitability And Loss Theory - Agriculture - Nairaland

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The Cassava Story. Profitability And Loss Theory by jethro2: 4:12pm On Feb 16, 2015
I have read so much about cassava on internet and nairaland. Actually i encourage my cooperative farmer group to venture into cassava based on the profitability potentials i believe it has.
I have known and met a lot of people that venture into cassava planting on the same theory.
Everyone has got a story to tell but sincerely i have heard more of regrets stories than success stories.
I will be writting on my experience as a farmer that cultivates cassava and live in a community where 99% of farm owners are cassava farmers
What it entails, the profitability and the loss theory

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Re: The Cassava Story. Profitability And Loss Theory by Fhemmmy: 4:14pm On Feb 16, 2015
Lemme take my pen and paper to write while I send the link to my business partner. I will have some questions as well as we go along

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 4:22pm On Feb 16, 2015
" The new improved breeds of cassava can give you 30 _40 tonnes per hectare"
Wow. I exclaimed.
Are you sure? I asked
Yes. Its true. Thats what Obasanjo planted on his farm.
hmnnn
Even IITA advocates for that
Serious.
And how much is a tonne? I asked
"The company are buying at N18,000 per tonne"
That means N18,000 multiply by 30 tonnes.
I calculated withing me.
Wow. This could mean serious business.
"Even some company picks it from the farm with their truck"
Some has mobile processor and will process on your farm.
That will be great.
The prospects sounds great and rewarding.
" so what was i doing in the town?"
When there is a gold mine in cassava farming?
The above conversation started my forray into farm

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 4:25pm On Feb 16, 2015
Fhemmmy:
Lemme take my pen and paper to write while I send the link to my business partner. I will have some questions as well as we go along
Sir, you have got a lot to write. I will gladly attend to all your questions
Re: The Cassava Story. Profitability And Loss Theory by Pavore9: 4:30pm On Feb 16, 2015
l must confess though l was involved with cassava farming years back at Nike, Enugu State, my mind can no longer connect to it anymore as l am more Pro-horticulture.
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 4:32pm On Feb 16, 2015
So i intensified my internet research on cassava. I want to be sure i am doing the right thing.
The informations on cassava were awewome and encouraging.
" Make N10,000,000 from so so hectares"
"Become a billionaire cultivating cassava"
"The Federal Government is buying cassava from farmers"
Thats the way to go. I concluded.
These people must be speaking from experience.
And for so many blogs to write the same success story they cant all be wrong
Re: The Cassava Story. Profitability And Loss Theory by Pavore9: 4:38pm On Feb 16, 2015
Many people did go into cassava farming sometime ago and there was a glut in the market.
Re: The Cassava Story. Profitability And Loss Theory by lecturerdabo(m): 4:39pm On Feb 16, 2015
folo folo
Re: The Cassava Story. Profitability And Loss Theory by Fhemmmy: 4:47pm On Feb 16, 2015
Pavore9:
Many people did go into cassava farming sometime ago and there was a glut in the market.

Could be wrong but the glut seems to be on the correction trend as morempeople are moving into other aspect of farming.

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Re: The Cassava Story. Profitability And Loss Theory by Pavore9: 4:53pm On Feb 16, 2015
Fhemmmy:


Could be wrong but the glut seems to be on the correction trend as morempeople are moving into other aspect of farming.
Well, it seems more processing plants are coming up.
Re: The Cassava Story. Profitability And Loss Theory by Fhemmmy: 4:56pm On Feb 16, 2015
Pavore9:
Well, it seems more processing plants are coming up.

Ok...will be glued to this thread, nothing better than learning from experienced farmer on something
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 8:04pm On Feb 16, 2015
Sorry for the break in transmission. We went to wet the YOP1 cucumber farm. Just getting back
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 8:07pm On Feb 16, 2015
Pavore9:
l must confess though l was involved with cassava farming years back at Nike, Enugu State, my mind can no longer connect to it anymore as l am more Pro-horticulture.
Gbammm. Never going back since i discovered horticulture. The potential in that field is enormous

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 8:17pm On Feb 16, 2015
Then i came across an article in a newspaper article that says
"The Ogun State Government will give loans to youth farmers that are in cooperatives.
As at then, I was residing in Abeokuta.
'Why did i hear this'
I thought within me. " If I could get youth of like minds, we could form a farmers cooperative and then access the loan"
What a brilliant idea!
So I ran to Nairaland and put up a thread " Young Farmers Cooperative.
That's what leads to Entrepreneur Youth Cooperative Multipurpose Society Abeokuta
I will leave my Cooperative story till another season. This thread is for cassava experience
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 8:36pm On Feb 16, 2015
The Search For Farm Land
The fact that the Ogun State government has land is no news. What is news is how easy is it for youth or individuals that has no link to government access the land.
We agreed or disagreed at the cooperative to cultivate 50 hectares of cassava. Being the founder of the cooperative I automatically belongs to the investment committee.
We learnt the Ogun State Government has land. I went to the Ministry of Agriculture at the State Secretariat in Oke Mosan.
I got the farm on which states that you can get an hectare for N1,500 per annum.
The easiest part you say.
The other requirements were nothing pleasant for a start up.
3 years tax payment?
A visit to internal revenue says it will cost nothing less than N100,000.
My group members contributed and we paid for this. Then another issue and another issue.
I became a regular visitor at the commissioners office. She promised but no clue.
I met with the permanent secretary but all in vain
Let me not dwell into the unending and frustrating process with the ministry of Agriculture in Ogun state.
Then someone gave me a direction to Oyo State.
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 8:46pm On Feb 16, 2015
The Ogun Osun River Basin Development Authority in Saki East LGA has land. Infact more than enough.
But like all Government stuff be prepared for the unexpected.
We got land from farmers around and the cassava journey started.
There was a tussle in the cooperative about going to Oyo State from Ogun State. It was a lot of hassles. Some pulled out, some are not in support and some are on the fence.
We had a smooth running planting the cassava because majority of farmers do the same.
There are tractor service from the local government. To plough an acre is N3,000. Same goes for services like harrowing and ridging.
There are labourers from Togo and Benin Republic that takes care of weeding and all sorts.
Some few farmers have the TMS variety of cassava that is generally refered to as Obasanjo. Sincerely the planting was as smooth as you could ever expect.
We planted by November 2012.
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 9:41pm On Feb 16, 2015
MARKET FOR CASSAVA.
Rewind before planting.
I and some of my group members joined Nigeria Cassava Growers Association in Ogun State. NCGA OGUN STATE
To be a member, one will pay N9,000. N5,000 goes to the federal while the remaining belongs to state as they claimed.
We were told there is a Federal Government loan for cassava farmers. All you need do is show your farm.
I do attend meetings to get updates.
During one of the meetings I met a representative of GIZ . (GIZ is the name of a German company that claims to lead cassava farmers to market)
He said cassava processors are working below capacity and that there is no amount of cassava produces that can meet the demands.
After the meeting, NCGA excos did not allow Mr Sunday drop his contact no. They insist one needs to sell the cassava through the association.
I later found out the loans the NCGA Ogun promise is never coming out.
Reason.
The NCGA Ogun have a loan pending with the bank. So the bank withheld whatever that may ne coming to them. But they kept on deceiving people with loan promise and collecting money.
Subsequently I source for GIZ office and got across to the person in charge of cassava. Not through NCGA though.
GIZ send a representative to our farm when we eventually planted.

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Re: The Cassava Story. Profitability And Loss Theory by Juliana7: 9:42pm On Feb 16, 2015
@jethro, awesome write up and very insightful
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 9:56pm On Feb 16, 2015
A group member got a link and we traced it out to the processor in a village in Oyo State.
The owner said she will buy off whatever quantity we planted at N10,000 per tonne.
I felt the price was too low. Why would i sell at N10,000 when i can get a better price at N18,000?. I thought
But my partner felt we might possibly get some other priviledges from the madam si.ce she is well connected.
She gave us a link that could source land for us.
Our thought was if we plant the cassava we can sell to her.
The land that her contact propose was not too good for me and some of the contacts statement was not adding up.
I brought it to my partners notice but he was banking on the fact that madam can not gave us a fraudulent contact.
I opted out but my partner went in for the cassava project with the contact.
I can categorically states that he didn't need a soothsayer to predict.
Story for some other time.
I will need permission to write on that.
He put in for 20hectares.
He is not smiling as regards cassava
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 9:57pm On Feb 16, 2015
Juliana7:
@jethro, awesome write up and very insightful
Thank you my sister
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:04pm On Feb 16, 2015
GIZ gave me all assurance. They have cooperative of cassava farmers. They have list of processors that needs cassava on daily basis. They gave me some list of processors which i visited and negotiate with.
The prices they offer ranges between N15,000 to N18,000 per tonne.
That means i was on the right part. I thought

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:12pm On Feb 16, 2015
I also got the lead to some companies that have mobile processor. Like my contact told me " they come into your farm and process right there and you get paid.
I said that would be great.
I got their contact no and put a call through. They gave me assurance.
GIZ came to Saki to check if the farm actually exist or not. Without that they will never give you the contacts.
NOTE
I later found that GIZ supply starch to FCMG,s. That's why they are sourcing for cassava farmers for processors. This was at a later date.
Then i understand why they refuse to attend to the drop in cassava price by the processors.
They have their own interest at heart and not solely working for farmers as they claim
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:20pm On Feb 16, 2015
I eventually visit Thai Farm in Ososa near Ijebu Ode. By this time we have planted. I also discovered the farmers in my environment were banking on me to bring market for their own cassava.
They were so sure I have a ready made market that will make a big difference for me to venture into the same thing.
At Ososa, one needs to bring sample for testing.
My Obasanjo as popular refered to was not yet out then. So we took the local varieties here for testing.
What baffles me at Ososa is that despite the fact that I went to school, I could not actually understand how they read or calibrate the starch content.
Its only the person in charge that knows how he perform the abracadabra with one calibrating machines that should have been in extinction.
Anyway they gave us their result. One variety has higher starch and the second was not.
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:28pm On Feb 16, 2015
Meanwhile as the cassava month was counting, I kept in touch with my suppose intending buyers.
When farmers in my locality were complaining, I was not too bothered because i felt that our cassava is secured.
I called one of the companies one of this days and the tune changed.
" But we had some agreement" I lamented.
They said they can not sell what they did not buy"
The price is now N11,000 per tonne. Out of which i will still bear the transportation cost.
I couldn't believe my ears.
I made several calls. But Alas.
Seems they just finish their meetings.
GIZ could not assist with the pricing.
They only link me.
What do I do
Re: The Cassava Story. Profitability And Loss Theory by Pavore9: 10:29pm On Feb 16, 2015
l can relate with your journey thus my divorce from anything agricultural government is encouraging people to go into as history has repeatedly proven they abandon people they have lured into it mid-way!

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:35pm On Feb 16, 2015
I discussed with my IFDC contacts.
They refered me back to the Madam that offers N10,000 per tonne.
After all her place is the nearest compare to other processor. I would be able to save some cost.
"Sorry, I already have farmers supplying me and your farm is too far to my factory was her response"
My locality to her factory is about an hour and a half journey.
Meanwhile the farmland that her contact gave my partner for the failed cassava project is not less than 3 hours.
Na so life be
Re: The Cassava Story. Profitability And Loss Theory by jethro2: 10:43pm On Feb 16, 2015
Pavore9:
l can relate with your journey thus my divorce from anything agricultural government is encouraging people to go into as history has repeatedly proven they abandon people they have lured into it mid-way!
Our government is completely out of it. The issue with most agricultural produce eg cassava is that government can not control what they don't have.
All cassava processing plants in Nigeria are private owners.
Imagine despite the frustrations, I eventually source for money, start my company and one government will come and dictates.
The more reason farmers are at processors mercy.
A tonne of cassava currently in my locality sells between N5,000_N8,000 per tonne Depending on the variety
Re: The Cassava Story. Profitability And Loss Theory by Pavore9: 10:51pm On Feb 16, 2015
5k-8k for a tonne of cassava? why should l bother myself with a crop that places me at the mercy of others when a hectare of carrot can give me at least 10 times of revenue l would have gotten from cassava!

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 11:00pm On Feb 16, 2015
Pavore9:
5k-8k for a tonne of cassava? why should l bother myself with a crop that places me at the mercy of others when a hectare of carrot can give me at least 10 times of revenue l would have gotten from cassava!
That's the point. My reply to people that make enquiry about cassava is " I will not advise my enemy to plant cassava with what I know in the farm"

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Re: The Cassava Story. Profitability And Loss Theory by Nobody: 11:09pm On Feb 16, 2015
jethro2:

That's the point. My reply to people that make enquiry about cassava is " I will not advise my enemy to plant cassava with what I know in the farm"

what of converting to garri? There is so much demand for garri. it doesnt need advert. Dont u think u will.make.more money turning it into garri, increasing shelf life, storing and even selling off harvest season?

Is there a way to automate frying garri and still get ijebu quality?

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Re: The Cassava Story. Profitability And Loss Theory by jethro2: 11:13pm On Feb 16, 2015
I asked the rural farmers
" Why did you keep planting cassava despite that the price is low?
The reply is "One does not know when the price will rise"
That means "Cassava is a probability crops.
The 10% government inclusive theory for cassava in flour is in theory and paper.
Who will implement the law?
I did some investigation into converting into starch, cassava chips and flour.
Starch seems to be the only one with prospect.
A lot of FCMG make use of it.
Heineken recently partner with a processor to expand her factory so as to meets their demands.
Yes. The market is there for starch but it has standard to be met.
A standard starch processor machineries starts from N10,000,000.
I smiled whenever i read post that said you can use fabricated Nigerian made machine for starch processing.
Yes its possible.
The question is "Who are your target market?
"What's their requirement standard and procedures"
I learnt Heineken visited a lot of starch processor in Nigeria before finally settling for one
Re: The Cassava Story. Profitability And Loss Theory by stagger: 11:16pm On Feb 16, 2015
A very enlightening story, but not strange for those of us who have done some business with government. The truth is this: you can never put critical aspects of your business in the hands of government or those claiming to represent govt.

I have had people bring proposals to me worth hundreds of millions of naira. For that particular business, the YouWIN grant gave me massive capacity to the point where I now deal with foreign clients. So I have Nigerians bringing proposals, hoping to leverage on my capacity. They tell me things like "the Minister is interested in this.." or "I have a link to the Presidency..." to "this job is for the government of so so and so state. In fact, we just met the governor the other day..." and all the blah blah blah blah blah.

When they come with this big talk, I laugh. I have been doing business since I was a teenager in the 80s. I can tell you I have seen a lot of things. People come with all sorts of big talk, big promises, big dreams. I simply laugh and put a few questions to them and puncture everything they say. Some rethink the whole job, some get annoyed, leave and then run into an endless frustrating cycle.

Back to our agriculture. You see, anyone who clearly studied OBJ's agric program which was led by Boma Anga will see that there was a lot of loopholes in the whole stuff. Noble idea, but bad implementation. No legal framework to back anything up. When it comes to cassava, you can NEVER make any money hoping to sell to processors, unless maybe like Legsupnigeria, you just have the good luck of meeting processors who can respect a commodities futures contract the way it is done abroad.

The only way to go is to buy your own processing equipment, then identify a market for your product BEFORE planting. The high perishability rate of cassava puts farmers at the mercy of processors and the processors know it. The processor can hold out for as long as possible. The farmer can not and eventually, the farmer will have to give in.

Everything in life has a plan. If you are in cassava and you are not making any plans to build your own processing factory, no matter how small, you will be in for a very long and frustrating journey. That is just the way it is.

We should also look at a number of factors. There is a lot of talk of E-10, which is supposed to be the new fuel for cars in Nigeria with 90% petrol and 10% ethanol. Do you think that project will see the light of day as long as the fuel import cabal is in place, donating billions to the ruling party? I think not. Point here: try not to depend on a govt policy. In Nigeria, policies are only as old as the governments that formulate them. We can see how difficult it has been for the composite flour policy to take off.

My 2 cents is this. Farm other crops, save money, buy your cassava processing equipment, identify a ready market for your PROCESSED CASSAVA (not raw tubers), before you actually start planting. You can sell gari, starch and flour to end users with good marketing and make your money. You do not need to put yourself in the hands of the mobile processors, companies like GIZ and all. Not worth it.

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