Introduction
Cassava chips/pellets are unfermented white dried products of cassava with an average
diameter of 0.8-3cm often used as a carbohydrate base in the animal feed industry
particularly in Asia, Europe, America and the Middle East. It is also milled to produce
flour for bakery, starch and adhesive production. Cassava chips are also widely used in
the production of industrial ethanol.
The by-product obtained from the production of cassava chips is called ‘cassava peels’.
cassava peels are mostly used as an ingredient in the production of feeds for poultry,
cattle and other livestock.
Industry Analysis
The demand for Cassava Chips as an industrial product is wide. It cuts across so many
industries such as distilleries, pharmaceuticals, food and most especially the animal
feed industry.
The estimated demand for Cassava Chips in Nigeria is found to be over 3,500,000MT
per annum. This demand is growing massively as the livestock feed, ethanol and starch
production industries grow. In the international market, China is the leading buyer of
cassava chips in the world with a market demand of over 20,000MT per annum.
Raw Materials Requirement
The basic raw material for the production of cassava chips is cassava tubers. Cassava
is a perennial woody shrub with an edible root, which grows in tropical and subtropical
areas of the world. Cassava originated from tropical America and was first introduced
into Africa in the Congo basin by the Portuguese around 1558. Today, Cassava supports
the livelihood of over 500 million Africans.
Nigeria is currently the largest producer of cassava in the world with an annual
production of over 55 million tonnes of tuberous roots. Cassava is largely consumed in
many processed forms in Nigeria. The demand for cassava and its constituents is high
in the domestic economy. However, the supply has been unable to meet the huge
demand.
Other raw materials that will be needed in a cassava chips production business are
water and packaging materials.
Machinery & Equipment Requirements
The major equipment needed in a small-scale cassava chips production plant are:
Cassava Peeling and Washing Machine, Cassava Slicing Machine, Drying Machine,
Weighing Scales and Sealing Machine.
Profitability
The profitability of cassava chips production largely depends on the cost of the primary
raw material, cassava. The price fluctuates with season, demand and supply. As the
price of cassava changes, so also does the price of cassava chips.
Average profit realizable from producing 1 ton of cassava chips is forty eight thousand naira (N48,000). The processing plant referenced in this writeup has the capacity to producing 6 tons of cassava chips per day. If the factory works for 20 days in a month and at just 50% of the capacity, translating to 60 tons of cassava chips produced per month, the company can make a gross profit of 60 X N48,000 = N2,880,000 monthly.
Capital Requirements
The estimated total required capital for setting up a small-scale cassava chips
production plant is put at thirteen million one hundred thousand naira (N16,700,000).
This includes the cost of factory rent, machinery procurement and installation, staff
training, and working capital.
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