Cassava Cultivation and Edible Ethanol Production in Nigeria; The Feasibility Report.

Ethanol is a compound which is manufactured by the fermentation of various biological materials such as wheat, corn, wood, barley and sugarcane. Corn and starch based crops are the most common materials used in ethanol production. This compound is miscible with water and most of the organic solvent.

Ethanol is a very important element of various industries and used as a solvent for many substances. It is because of wide range of applications such as perfumes, paints, lacquer, and explosive, that, ethanol market is expected to grow at a very impressive rate in coming years.

It also finds its applications in beverages such as beer and wine, and is gaining prominence as an alternative to gasoline fuel. Automotive industry has been a prominent end user of ethanol over several years. Ethanol blends easily with gasoline that is up to five to thirty percent (5 to 30%). Ethanol blended with gasoline reduces air pollution and aids to improve the performance of vehicle to great extent.

Ethanol is a vital component for automobiles industry owing to its usage as fuel and fuel additive in automobiles. With growing population, rising demand for automobiles, increasing disposable income, environment friendly nature, lower cost compared to the traditional fuel and several benefits offered by ethanol, the demand for global ethanol market is expected to show significant growth during the forecast period and especially in automobile industry.

Alcoholic beverages industry is another prominent end use industry of ethanol market. Growing demand for premium quality alcohol, Changing lifestyle, increasing disposable income, changing taste and preferences of people are the major driving forces of Global ethanol market in alcoholic beverages industry.

Nevertheless, introduction of electric cars, increasing substitute for alcohol beverages, rise in price of raw material are few restraints that are affecting the demand for global ethanol market.

Nigeria only produced nine million (9,000,000) litres of ethanol per year which is three to four percent (3-4%) the country’s requirement, the remaining ninety-six to ninety-seven percent (96 to 97%) deficit is still been imported from Brazil and India among other countries. Nigeria spends about N 160 billion annually to import four hundred million (400,000,000) litres of ethanol for industrial use.

Nigeria is the largest producer of cassava in the world, producing about forty-nine (49,000,000) million tons per of the product annually.Cassava is one of the richest fermentable substances for the production of crude alcohol/ethanol.

Cassava produces a better quality alcohol, and the distilling technique employed ensures a high quality product, free from all type of odors and not harmful to the environment.

There are two types of ethanol: (1) Denatured ethanol and (2) Hydrous ethanol. Denatured Ethanol: It is the one used in blending Premium Motor Spirit (PMS) to E10, E20 etc. It is usually mixed with 2-5 low cost hydrocarbon that makes it unfit for human consumption.

Hydrous Ethanol: It is the natural ethanol used as industrial raw material in the production of alcoholic beverages, cosmetics, perfumes, drinks, medicaments and other industrial uses. The production is viable because it is resource-based: the raw material, the technology and the equipment are all locally available.

This report seeks to examine the financial viability or otherwise of establishing a cassava cultivation and ethanol production plant in Kwara state, Nigeria.

The size and locations of the farms is fifty-eight thousand (58,000) hectares of land located in Kwara State. Fifty-seven thousand, four hundred (57,400) hectares would be used for the farm while the remaining six hundred (600) hectares would be used for the construction of the production facility and other civil works.

Improved cassava stem (TME 419) would be sourced from International Institute of Tropical Agriculture (IITA), Ibadan and used on the farm. Yield of twenty (20) tons yield per hectare and gestation period of nine (9) months from time of cultivation were assumed.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 1.4 Critical Success Factor of the Business 1.5Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2.0 Agricultural Practice 2.1 Land Preparation 2.2 Collection of stems 2.3 Planting 2.4 Manures and Fertilizers 2.5 Weeding 2.6 Climate / Irrigation 2.7 Harvesting and Yield 2.8 Herbicides 2.9 Soil Type 2.10 Diseases and Pests 3. Marketing Plan 3.1 Description of product 3.2 Product Packaging and delivery 3.3 The Opportunity 3.4 Pricing Strategy 3.5 Target Market 3.6 Distribution and Delivery Strategy 3.7 Promotional Strategy 3.8 Competition 4. Production Plan 4.1 Description of the Location 4.2 Raw Materials 4.3 Production Equipment 4.4 Production Process 4.5 Production Cost 4.6 Stock Control Process 4.7 Pre-Operating activities and expenses 4.7.1 Operating Activities and Expenses 4.8 Project Implementation Schedule 5.0 Organizational and Management Plan 5.1 Ownership of the business 5.2 Profile of the promoters 5.3 Key Management Staff 5.3.2 Management Support Units 5.4 Details of salary schedule 6. Financial Plan 6.1 Financial Assumption 6.2 Start -Up Capital Estimation 6.3 Source of Capital 6.4 Security of Loan 6.5 Loan Repayment Plan 6.6 Profit and Loss Analysis 6.7 Cash Flow Statement 6.8 Viability Analysis 6.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis

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