Transcript RTEP_Marketing_en

Regional Cassava Processing and Marketing Initiative
MARKETING PERSPECTIVE OF THE NIGERIA ROOT AND TUBER
EXPANSION PROGRAMME (RTEP)
BY
FEDERAL AGRO PROCESSING AND MARKET EXPANSION GROUP (FAMEG)
NATIONAL CENTRE FOR AGRICULTURAL MECHANIZATION, ILORIN
FIRST REGIONAL MEETING OF IFAD ROOTS & TUBERS PROJECTS
14-16 November 2007
Hotel Somatel - Douala, Cameroon
Cassava processing and marketing

Objectives & Tasks of RTEP marketing component
FAMEG – implementing institution of the RTEP
marketing component at the federal level.
FAMEG’s major tasks:
•Technical support and training to SAMEGs at the state level
•Expand domestic market opportunities
•Establish linkages and information systems:
•National database of equipment fabricators, processors and
industrial end-users
•Market information system
•Raise public awareness on cassava products
•Develop strategies for the international market
•Develop products for yam, potato and cocoyam
Cassava processing and marketing

Activities and Achievements:
• Training
– 130 SAMEG officers and over 260 groups on product development
and economic utilization of R&T crops
– SAMEGs/Groups on preparation of feasibility reports
• Creating marketing groups/associations: 60 R&T Groups/
Associations
•
Identifying and promoting markets
– Identification of over 50 domestic industrial markets for R&T
products including flour mills, textiles companies, adhesives/glues
etc.
– Identification of international markets for gari (Europe) and chips
China).
– Exploratory study on cassava utilization in the domestic animal
feed market.
– Inventory of marketers and end-users of R&T products in RTEP
states
– Newsletters and product promotion brochures for marketing of
R&T products.
Cassava processing and marketing

CONT..
• Linkages
– Identification and development of market linkages between
equipment fabricators, processors and end-users
– Linkage of over 120 processing groups with end-users
Result
Significant increase in the volume and value of R&T trade
Cassava processing and marketing

MARKETING CONSTRAINTS IN THE 1ST TRI-TERM
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Lack of credit and venture capital
Poor roads and high transportation costs
Market information system poorly developed
High price fluctuation: supply-demand imbalance during peak
and scarcity periods.
• Low profit margins
• Macro-economic environment unfavourable: policy instability
and weak institutional support
• Poor storage technologies
Cassava processing and marketing

Future Priority Areas of Work
 Identification and training of viable marketing groups and
associations
• Building and Strengthening Chain Linkages:
– Among processors, marketers, end-users; e.g. encouraging
flour mills to develop effective network of HQCF suppliers.
– Access to credit institutions
• Developing a functional R&T Market Information Service (MIS)
• Training marketers to supply products that meet specifications of
end-users, SON and NAFDAC
• Lobbying the Government to ensure implementation of the
policy on 10% cassava flour substitution.
• Develop policy dialogue for a more favourable macro-economic
environment.
Cassava processing and marketing

2ND TRI-TERM OBJECTIVES
• Increase of production and productivity to bridge the
competitiveness gaps
• Promotion of further product diversification
• Change from state to community-based approach;
• Adoption of group dynamics as the focus of extension
activities;
• Incorporation of rural enterprise management (REM) into
all production and processing activities.
• Market expansion
• Explore export markets for gari and odourless fufu for
Africans in Diaspora.
• Increase R&T products’ demand of domestic industries
Cassava processing and marketing

Guidelines
Guidelines:
• Community-based approach will be the dominant intervention
delivery mechanism.
• Diversification of Processing and Marketing Options will be the
engine that would drive the entire cassava commodity chain.
 Focus on group ownership of enterprises. Groups will
encouraged to:
- Play active role in enterprise development
- Take direct control of the day-to-day running of their business
- Specialize on marketing
Cassava processing and marketing

Activities implemented in 2ND Tri-term
• Training workshops
– Rural Enterprise Management (REM) and Community Driven
Development (CDD).
– Cassava quality standards for SAMEGs & Processing Groups.
– cassava commodity system analysis for SAMEGs
– Market linkage and technology development (for National
stakeholders).
• Formation of marketing groups and identification of marketing
outlets.
• Thematic studies of the SAMEGs
Cassava processing and marketing

Challenges and Chances
Challenges
• Reluctance of flour millers to buy HQCF. The policy on
10% HQCF inclusion may have to be enforced
• Access to credit
Chances
• Strong interest of private sector (MTN) in partnering with
RTEP to develop a functional MIS
• Export markets for cassava derivates in West Africa and
Europe
Cassava processing and marketing

Expected Outputs
• Well defined marketing channels for main products like:
gari, HQCF, odouless fufu and chips.
• Better linkage of actors within the chain.
• Export of over 50,000 mt of cassava derivates, particularly
:gari, odourless fufu, chips and pellets.
• Formation of about 130 product marketing groups.
• Empowerment of about 10,000 families with livelihood
dependent on R&T marketing.
Cassava processing and marketing

Cassava processing and marketing