Cassava Tuber Cultivation and Production of Cassava Starch in Nigeria; The Feasibility Report.

Published - 28 Feb, 2019| Analyst - Foraminifera Market Research Limited| Code - fora/2019/atsbcavsua/662

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Cassava is the most important root crop in Nigeria. Apart from being a staple crop in both rural and urban household’s cassava is a major source of income to cassava farmers and processors in the rural areas.
Cassava alone contributes about 45% of agricultural GDP in Nigeria for food or domestic purposes but its industrial processing and utilization has been very limited.

Currently, the country produces about 40,000,000 tons of the cassava tubers annually and due to the desire of the federal government to reduce import dependency and conserve of scare foreign exchange, there is need to increase the production of cassava starch as an alternative to corn starch.

Cassava starch is a whitish, powdery material which is used in the food, pharmaceutical pulp and paper and textile industries.

In the past, cassava starch was mainly used as a staple food by some tribes in Nigeria and for domestic laundry purposes. However, attention has been drawn to its industrial uses in recent years. Among its industrial uses are: as thickener or paste in the food industry; syrup in the pharmaceutical industry and for textile sizing in the textile industry.

This report seeks to examine the financial viability or otherwise of establishing a mechanized cassava farm and cassava starch production plant in Nigeria using cassava tubers as basic raw material.

The size and locations of the farms is one thousand, three hundred (1,300) hectares of land located in Edo State. One thousand, two hundred (1,200) hectares would be used for the farm while the remaining one hundred (100) hectares would be used for the construction of the production facility and other civil works. Improved cassava stem (TME 419) would be used in the farm and a yield of twenty (20) tons yield per hectare was assumed.

The proposed plant would comprise of Cassava Starch Plant, Generator, Wagon Balance (Weight bridge), Transformer and Electrical Poles, Weighing Machine, Wood Pallets, AGO storage tank and Forklift. Other equipment’s includes delivery trucks, New John Deer tractor, Motorised Knapsack Sprayer, Cassava harvesting machines, cassava planting machines, disc harrows and stump removals.

The production capacity of the proposed plant is twenty (20) tons per day and the plant would work at eighty percent (80%) of the installed capacity for three hundred (300) days per annum.

The plant would operate for ten (10) hours per day and the input / output ratio of 4:1 was assumed for cassava starch.

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 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2.0 Agricultural Practice 2.1.0 Collection of stems 2.1.1 Planting 2.1.2 Manures and Fertilizers 2.1.3 Weeding 2.1.4 Climate / Irrigation 2.1.5 Harvesting and Yield Herbicides 2.2 Factors of Production/ Cultivation 2.2.1 Soil Type 2.2.2 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 7.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis

Project Specification:

Plant Capacity: Twenty (20) tons per day
Capacity Utilization: Eighty percent (80%)
Loan Tenor: Sixty (60) months
Interest Rate: Twenty-five percent (25%)
Moratorium: Twelve (12) months

Additional Info

Report Type: feasibility report
Formats of Delivery:
No. of Pages: MS Word - 34 pages and Excel - 6 pages
Report Code: fora/2019/atsbcavsua/662
Publisher: Foraminifera Market Research Limited
Price: ₦200,000
Release Date: 28 Feb, 2019 Updated quarterly.
Language: English
Delivery time: Within twenty-four (24) hours.

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