Sixteen years after the inauguration of the Presidential Committee on the promotion of cassava export with an annual target of $5billion, Nigeria, the world’s largest producer of the crop, is yet to tap opportunities which countries with less endowment are reaping in foreign exchange earnings. FRIDAY AGBOSEINA writes cassava processing plant Cassava frying machine in Nagari Fresh Farm, Nasarawa In 2001, then president Chief Olusegun Obasanjo inaugurated the Presidential Committee on Cassava Export Promotion with a mandate to earn $5billion dollars annually from 150 million metric tonnes.
Th e Committee was under the Chairmanship of the former Minister of Commerce, Ambassador Idris Waziri. Sixteen years later, the economy is yet to generate the tremendous opportunities in cassava export market even though the country is the world largest producer of cassava, producing over 47 million metric tonnes annually followed by Th ailand with 30 million metric tonnes. Conversely, Th ailand rules the global trade on cassava, accounting for 80% of world export of the products, while two other Asian countries Vietnam and Indonesia account for 8% and the remaining 12% are shared by the rest of the world.
Th e high quality of Nigeria cassava is attested to by Chinese fi rms. At the launch of the Presidential Initiative on Cassava (PIC) production for export in 2001, it was observed that global attention by buyers was on Nigeria with several purchase orders received from fi rms in China, EU countries, South Africa, Bostwana, Nambia and Zambia. Soon after the launching of PIC, a Chinese company, during the visit of Idris Waziri to China expressed its readiness to buy 45 million metric tonnes of cassava chips from Nigeria annually; this was far above Nigeria’s production capacity as at then. Presently, China has overtaken the EU countries
by controlling 60% of the global import market for cassava which is being supplied by Th ailand. Th ai has been able to establish a strong competitive advantage on China import market on cassava that it will be an uphill task for new exporting countries to break through. Already, there is a free trade zone between Th ai and China for cassava exporters on 6% reduction in tariff . China has a fast expanding livestock industry that requires huge imports of cassava products from Th ailand.
Th e implication is that if Nigeria was pro-active toward the presidential initiative, there was a ready international market to absorb the 150 million metric tonnes. Apart from China and EU countries, Nigeria has opportunities in other markets in Japan, Singapore, United States, Philippines, Korea, and Malaysia among others that were all waiting for the cassava. With this, the economy would hit the agricultural aspiration of diversifi cation in foreign exchange earnings. Given the huge market in cassava, Nigeria needs to focus on the world market which is largely on chips and pellets for feeds, starch and industrial uses. Interestingly, the Agriculture Promotion Policy of the Buhari’s administration is said to be addressing issues of marketing, infrastructure, research and development and private sector stimulus. Also, the Anchor Borrowers Programme of funding agriculture is expected to encourage cooperative farming which was the strategy of Th ailand’s success story in cassava farming.
Presently, there appears to be an operational gap on the Presidential Committee on Cassava. Th e PIC is being housed by the Nigerian Export Promotion Council of the Federal Ministry of Trade and Investment; there might be a need for an independent secretariat in the Presidency as being canvassed from certain quarters to allow for a central coordination from the two responsible ministries, namely Agriculture and Rural Development, and Trade and Investment. Perhaps, this will enhance better result that will see Nigeria becoming a global exporter in cassava products. Cassava export: Th ailand got it right.
In Nigeria, cassava is mainly used as staple food; Th ailand has gone far beyond that in utilising cassava as an industrial crop. Th ailand has a well developed cassava industry driven by value addition to export cassava products besides satisfying her domestic market. Th ailand takes advantage of her regional Asian market to be the largest exporter of cassava chips and pellets to China and India. It also dominates the market of European countries with cassava products especially as livestock feeds, sweeteners, organic acid, alcohols, modifi ed starch, sugar alcohols, pearls and tapioca.
Th ailand’s cassava industry is driven by a vibrant process of value addition boosted by small and medium scale enterprises which are cottage factories. Cassava is processed into chips and sold to pellets manufacturers who after processing either sell in the domestic market or export. Over the years, Th ailand cassava sector has experienced signifi cant expansion due to high demand for starch. Th is led to her investment in cassava seeds to improve yields. With this, several starch mechanised factories were established and they could produce over 30,000 tonnes per day and over 20 million metric tonnes of starch annually, largely for export. As the global market for starch continues to grow, Th ailand’s cassava economy will be growing with stiff competitive advantage over other exporters into its markets in Asia and European countries.
Furthermore, Th ailand’s cassava chips rules the global market for the production of bioethanol as an alternative energy for liquid fuel. For example, China has made huge investment on biofuel programme which has increased the demand for Th ailand’s cassava products. Th e increase is likely to continue as the world earnestly looks forward to liquid fuel option being controlled by the OPEC cartel. Quietly, Th ailand is giving the world alternative liquid energy as a future market. Th ailand is an agrarian country like Nigeria but less endowed like Nigeria, but Th ailand knows how to exploit its resources to empower her people and makes inroad into the global market. Today, Th ailand is a fast emerging economy of the world through its agriculture. For Advert/Enquiries: Contact Friday Agboseina, 08150850243 [email protected]
