Good Evening Everyone.

Since A lot of people has shown interest in joining the Cassava Supply Chain;

For General Knowledge and Transparency;

We have decided to give a general sensitization and presentation on how we got started, connected and involved in the supply of Freshly Harvested and Dried Cassava Tubers to The New Biofuel Producing Company which is in alignment with the Ondo State Government.

Stay Tuned.

We recently got a contract to supply 150 tonnes of freshly harvested and dried cassava to a biofuel company which is in unison with the Ondo State Government.

This deal came in synchronism to a cassava project deal which we got from Hollyway Global Investment Limited to supply 600 tonnes of fresh cassava to an ethanol producing company in Sagamu.

We left the southern part of Nigeria, Ughelli town to be precise in view to satisfying this contract deal; we headed to Ikire, Osun State to meet with farmers in order to offset this deal.

This deal was made possible through Mr Olumide who is one of an Agro-connector here on nairaland.

He runs one of the well known agro connecting and outsourcing company in Nigeria

@⁨NL Mr Agroconnector Olumide⁩

Mr Emmanuel who is the C.E.O of iInfinite-Agro helped connect us to Rural Cassava farmers.

He is also one of us here on Nairaland.

However; most farmers needed upfront payment to get their Cassava harvested as they need to pay their harvesters and labourers who will load the trucks. Since most companies only pay for agro commodities upon them reaching their company's site, the farmers and company could not reach an agreeable understanding of payment terms.

WealthInvestor:
This deal came in synchronism to a cassava project deal which we got from Hollyway Global Investment Limited to supply 600 tonnes of fresh cassava to an ethanol producing company in Sagamu.

The company was willing to pay 14,000 naira per tonne but it only had to be upon delivery to their company. We were able to source for a tonne of Cassava @ 10,000 naira per tonne from the local farmers.

Logistics for conveying 1 tonne of cassava was capped @ 3,000 naira, ensuring we make of profit of 1,000 naira per tonne for the first 600 tonnes contract delivery.

However; we - *The Afro-Agro Power Team* decided to start with our Garri Processing Enterprise.

We bought some cassava directly from the farm and ventured into the processing of Cassava into Garri.


It was while doing this; we got information of the Cassava Revolution project through some of our APC political allies who got to know we were into Cassava Value Chain.

THE CASSAVA REVOLUTION PROJECT.

We are already in synchronism with the company directly to supply 150 tonnes of freshly harvested and dried cassava to them for the production of biofuel.

Since the need of the cassava is to be used for biofuel production; some needed criteria was given to us to abide by.

These are:

- The Cassava tubers must be freshly harvested.

- The Cassava tubers must not be washed.

- The Cassava tubers must be dried for a duration of 7 days so as to reduce the moisture content of the tubers must be @ 13% moisture.

- The Cassava tubers must be whole (i.e not shredded or cut into pieces)

The cassava tubers are to be dried as a whole this way.

We are taking on this project because the monetary profit is very much okay.

We will be getting 55,000 naira per tonne for the dried cassava.

However; for now, we cannot meet up with supplying 150 tonnes of Dried Cassava daily to the company. What we can start with is supplying 500 tonnes of Dried Cassava weekly to them.

The supply of 200 tonnes of Cassava will mean:

55,000 naira × 200 = 11,000,000 naira.

This will be our Total Returns on Investment for supplying 200 Tonnes of Cassava Weekly to the Biofuel Producing Company.

These supplies will have to be done in batches.


Let Us look at our Capital Expenditure;

With our practical survey done already on the farm; we have observed that harvesting 1 tonne of freshly harvested cassava and drying it for 7 day will shrink the weight of cassava to about 300 KG. We practicalised this when we harvested 325 KG of Cassava for our Garri processing.

About 17% of the weight of the cassava tubers were lost to peeling of the cassava tubers.

Since the Cassava tubers are to be dried for another 7 days; a gross amount of the weight will be lost.

Cassava tubers contain 60% of water. And since we are drying the Cassava tubers to a moisture content of 13%; then we will be drying away 87% of the moisture which is an integral part of the weight of the cassava tubers.

Drying 1 Metric Tonne of Cassava tubers will reduce the Cassava tubers to about 350 KG of Shrinked and Dried Cassava Tubers.

When we processed our 325 KG of Cassava Tubers into Garri; we got about about a *80 KG* of Garri and another *25 KG* of Dried Cassava Lumps.

Invariably; We will lose 52% of the weight of the Cassava to drying.


Hence; 1 Tonne of Cassava will lose 17% weight on peeling;

1 tonne = 1,000 KG.

1,000 KG × (17÷ 100) = 170 KG

The weight of cassava we will have left after peeling of 1,000KG of Cassava which is equivalently 1 TONNE will be:

1,000 KG - 170 KG = 830 KG.

The cost of peeling cassava varies from place to place.

They charge per basket.

In our case; it was charged 70 naira per basket.

After peeling; the next step we will be taking is to dry our cassava tubers for another 7 days.

We will lose about 52% of the weight to drying. Hence; Our cassava tubers will be shrunk to about 48% of 830 KG of Cassava Tubers which is:

(48 ÷ 100) × 830 KG = 398.4 KG

Invariably; we will be getting at least 390 KG of Dried Cassava tubers from 1 Tonne of Harvested Cassava.


(390 + 390 + 390) = 1,170 KG.

In essence; to supply 1 Tonne of Freshly Harvested and Dried Cassava Tubers to the Biofuel Producing Company; we will need to harvest 3 Tonnes of Fresh Cassava from the farm.

Cost of purchasing 1 Tonne of Cassava is 8,000 naira.

Cost of purchasing 3 Tonnes of Cassava is : 8,000 × 3 = 24,000 naira.

Cost of peeling 3 Tonne of Cassava: 9,000 naira.

Cost of Labour: 2,000 naira

Total Cost of Input for processing 1 Tonne of Dried Cassava = 35,000 naira

The company is providing us with logistic trucks that will only collect money from us after the deal has been handled and paid for. The Biofuel Company is already in synergy with a logistic company that will only collect money from us after they pay us for the delivery of our dried cassava tubers within 48 hours.

We will be paying 10,000 naira to convey 1 tonne of the Dried Cassava tubers to the company.


Total expenditure for conveying 1 Tonne of Dried Cassava to the company will be 45,000 naira.

Our payment consignment for this deal is 55, 000 naira.


So, 55,000 - 45,000 naira = 10,000 naira profit.


The profit on 1 Tonne will be 10,000 naira.

So for a start; The profit for delivering for 200 tonnes weekly and consistently to the company will be:

10,000 × 200 = 2,000,000 naira.

Capital Expenditure for purchasing 200 Tonnes of Cassava is :

200 × 45,000 = 9,00,000 naira.

Our accumulated profit for supplying 200 Tonnes weekly to the Biofuel company will be 2,000,000 naira with an Investment of 9,000,000 naira.

If we go with supplying 20 Tonnes weekly; Our Capital will be 900,000 naira with a profit of 200,000 naira weekly.


If we go with supplying 100 Tonnes weekly; our capital expenditure will be 4,500,000 naira with a feasible profit of 1,000,000 naira.

We come to the end of tonight's Cassava Deal Presentation

We come to the end of tonight's Cassava Deal Presentation.


Questions are now welcomed before we move to planning and executions.