Cassava Supply To Local Industries In Nigeria; The Feasibility Report

The ethanol programme by NNPC aiming at exploring sources of biomass that can be used to produce fuel ethanol to improve automotive emissions in the country, to reduce domestic use of petrol, free up crude for export and position Nigeria for the development of “Green Fuel” which is embedded in the “Automotive Biomass Ethanol Programme” began in august 2005, which focused on the establishment of 20,000 hectares of sugarcane and 10,000 hectares of cassava, which are the two active ingredients in ethanol production.

The core aspect of the initiative is aimed at producing fuel grade that would be blended with petrol or gasoline in proportions not exceeding 10 percent volume, the new product will reduce the volume of carbon dioxide released into the atmosphere, thereby improving air quality and reducing health hazards associated with environmental pollution. In addition, the energy sector reform plan of the Nigerian government is targeting 735 megawatts of electricity to be generated from renewable energy as part of the nation’s energy mix by 2015 by stimulating large scale implementation of renewable energy based power project using non-conventional sources, including biomass.

The demand for cassava flour, garri and cassava starch is high in Nigeria. The driving force is the federal government policy on cassava flour inclusion in wheat flour for cassava wheat composite flour production especially for bread and confectionaries baking. There is high demand for cassava starch in Nigeria where they are used in textile, oil drilling, gum and adhesive, pharmaceutical, drink and beverages industries.

Cassava, the chief raw material used in the production of cassava flour, cassava starch and garri is grown almost all the states in Nigeria with an estimated annual production of 40 million tones.

However, the country needs to upgrade the use of cassava into an industrial base for further diversification of the country’s economy with a categorization into the farm level by farmers processed into chips, flour and pellets by processors, used by agro industries to produce other products like ethanol, dextrin/adhesives, native and modified starch for the other industrial set-up (e.g. textiles, paper, wood, etc) and consumer (food and beverage) markets.

The picture depicts above, welcomes us into the awesome opportunities inherent in cassava trading in Nigeria.

The manpower required to run the project is between 1-2 persons with one purchasing the commodity from the farmers and the other selling to the buyers, though these process can be handle by one person.

The rate of return on investment is estimated at 10% – 15% per transaction.

Table of Contents

Executive Summary 1.1 Business Opportunity 1.2 Country Background 2. Technical Analysis 2.1 The Project 2.2 Product Description 2.3 Product Location and Distribution 2.4 Legal Considerations 3. Opportunity 3.1 Market Overview 3.2 Demand and Supply 3.3 Customer Profile 3.4 Primary Competition 4. Socio- Economic and SWOT Analysis of the Project 4.1.1 Generation of Employment 4.1.2 Source of Government Revenue 4.1.3 Foreign Exchange Generation 4.1.4 Technological Transfer 4.1.5 Increase in Gross Domestic Product (GDP) 4.2 SWOT Analysis 5. Risk Identification and Mitigation Strategy 5.2 Critical Success Factor 6. Financial Analysis

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