NO FARM, NO EXPORT GLORY; AN INSIGHT INTO THE NIGERIAN ROLE IN THE CASSAVA GLOBAL INDUSTRY

Woke up to the news that Nigeria won no medal🏅 at the just concluded Paris 2024 Olympics, it rather unfortunate but this clearly shows our attitude as a people, society and nation that we either

1. Fail to plan
2. Plan Insufficiently
3. Takes Realities In Consideration During Planning
And/Or 
4. Want Successes Without Correcting The Above And Want It Quick.

I'm opportuned to have a lot of older people on this broadcast. Equally, I have prospective investors here and held different discussions on my project with them.

It took me four years to conceived this project idea, study and follow tracks to this stage.

However, one of the questions I have encountered is why are we not exporting Cassava products.

1st, our approach to Cassava processing has not warranted it. Most processing companies doesn't want to have farms and proper Outgrower schemes except for Psaltry Intl, who understands that dynamics.

Every other one is just dancing around that fact.

2. Nigerian processors like our bureaucrats and people embedded in the Nigeria culture believes in quick success or have the four syndromes above, we can't be into Cassava processing and be shying away from the farm.
Earlier in the year, a topmost Food mill, which is also Cassava processor in Nigeria shut down/suspended production due to limited raw material supply. They were forced to go partner a Cassava farm in Kwara State, yet logistics cost was not friendly.

You can't run away from farms when you are processing.

Thus as regards our project, we understand for us to advance our financial culture, compete favourably in the international market and expedite our importance in the local market where we seek to fill the voids in the market, our approach must be improvingly different from the present Nigerian market players’ approach which is more focused on domestic consumption making the prices of cassava in Nigeria is relatively higher due to:
1. Higher demand for food, industrial and energy uses
2. Lower economies of scale in farming
3. Less efficient supply chain
4. Higher transportation costs.
We have a very ready market for our products locally, we must reinstate the strong desire to play in international Cassava products league and favourably too.
Contrary to the $0.40 - $0.50 gross cost per kg in Nigeria, we thrive to achieve between $0.10 - $0.20 gross cost per kg to be a very positive effect on the local market and compete favourably against peers from Brazil, Vietnam and Thailand, where they have been able to be significant players in the global cassava market with major exports to countries like China, Japan, and South Korea.

I wish ourselves better luck, yet our re-engineering has provided enough room for the worst case scenarios.

Popular posts from this blog

Revolutionizing Nigeria's Cassava Empire: The Aligo Energies Refinery – A Goldmine Waiting to Explode

Image
In the heart of Africa's agricultural powerhouse, Nigeria stands as the undisputed king of cassava production, churning out over 60 million metric tons annually, more than any other nation on the planet. Yet, this "cassava gold" has long been squandered, with over 70% funneled into basic staples like garri and fufu, leaving vast untapped potential in high value derivatives that could fuel industries, energize economies, and transform lives.  Enter Aligo Energies Ltd, a visionary force poised to shatter this status quo with its Cassava Refinery Complex in Alamala, Abeokuta, Ogun State. This isn't just another processing plant; it's a seismic shift in Nigeria's agribusiness landscape, mirroring the explosive success of the newly inaugurated Shea Butter Refinery in Niger State: Africa's largest, with a 30,000-metric-ton annual capacity targeting a $700 million export market. If Shea can catapult Nigeria into global prominence, imagine what Aligo c...
Read more

Visionary Leadership in Industrial Innovation

Image
Spearheading the Aligo Energies Cassava Refinery project is not just about business; it's about revolutionizing agro-processing, driving economic growth and building a sustainable industrial future. This project is a testament to strategic foresight, where agriculture meets technology, creating a refined value chain that maximizes efficiency and profitability. From concept to execution, leading this initiative means ensuring precision in design, financial acumen and uncompromising governance standards, all while keeping an eye on scalability and industry leadership. It’s about transforming vision into an industrial reality that redefines agribusiness in Nigeria and beyond.
Read more

THE PSALTRY EFFECT: WHAT SERIOUS INVESTORS MUST UNDERSTAND

Image
In the last few months, I have engaged more than ten prospective investors. Two of them made a very interesting observation: they quickly referenced Psaltry International and rightfully so. Psaltry is a true benchmark for success in Nigeria’s cassava-processing landscape. However, there is a major gap in how some investors interpret the “Psaltry story" and it’s important to address it clearly. Both investors failed to see the intentionality behind Psaltry’s success both from the founder and the investors who funded it. One of them suggested that we should “work around $400,000.” As much as $400,000 is substantial amount of money, it cannot cover the CAPEX or OPEX required for a minimum viable, sustainable cassava-processing operation. Here’s the reality: In 2013, Psaltry started with a 20-ton/day starch plant, which required approximately 100 tons/day of fresh cassava input. That level of input wasn’t accidental, it was very intentional, calculated and necessary. With ...
Read more