Stakeholders within the agriculture sector have raised concern over a looming glut within the cassava worth chain, warning farmers and processors to desist from irregular pricing, which is able to plunging them into large losses.
The Guardian learnt that at present, among the industrial processors are already experiencing glut, by the use of ‘provide lockage’ – shares of cassava flour and cassava starch stored of their warehouses past standard, whereas many are actually staggering manufacturing and others have stopped producing utterly for now.
The principle purpose adduced to this growth, in line with investigations, is the truth that the demand for these merchandise has decreased in the previous few weeks, primarily resulting from the truth that patrons have discovered cheaper alternate options in importation of product substitutes, particularly corn starch specifically.
Experiences have it that the numerous worth discount is majorly because of the zero import responsibility granted on importation of corn starch by the Federal Authorities. The Guardian learnt {that a} ton of corn starch beforehand bought for over N1, 000,000 is now going for N800, 000 throughout markets within the nation, whereas cassava starch remains to be promoting for between N1, 000,000 to N1, 200,000, primarily resulting from excessive value of the uncooked materials.
A Cassava Processor, primarily based in Kajola, Obafemi Owode Native Council, Ogun State, Igangan and Elekokan, Ibarapa space of Oyo State, Mr. Kazeem Lamidi, who concentrate on garri, fufu and Cassava chips processing, confirmed the event.
Lamidi stated: “A 50kg bag of Excessive High quality Cassava Flour (HQCF) is at present promoting for N70, 000 and that of Wheat flour is round N65, 000. There’s clear distinction within the costs, it truly favours imported alternate options. How will we now anticipate the native merchandise of cassava origin, that are speculated to be cheaper alternate options, thrive on this unfavorable pricing scenario.
“When the costs of cassava starch and cassava flour which can be speculated to be cheaper native alternate options/substitutes turned insufferable for the person corporations like prescribed drugs, cubed seasoning producers and others, they needed to cry to the federal government for importation of corn starch, which they’ve at all times most popular anyway. And the federal government in their very own approach of intervention granted this with zero tariffs, in order to maintain the business transferring.
“Who’s to be blamed? Is it the native processors of cassava starch and flour that would not provide the customers on the worth they needed? Is it the person corporations that clamored for importation of alternate options? Is it the federal government that granted the importation tariff free?”
He famous that with the ‘provide lockage’ native processors are experiencing, including that their demand for uncooked cassava tubers will even scale back, which could have drastic ripple impact on the supplying market of the cassava farmers – having the data that it’s the enhance in industrial demand for tubers that has been maintaining the whole worth chain thrilling.
“It’s higher for us to retrace our steps as shortly as attainable, so that we are going to not out of self-mindedness choke the business with dangerous pricing of uncooked materials. As a produce of nationwide financial and industrial curiosity, pricing of cassava tubers needs to be nicely guided, so that we are going to not rock the boat of the whole business.
“There’s a want for a roundtable dialogue between Cassava Growers Associations and Cassava Processors Affiliation, to search out a permanent answer to the recurring situation of pricing imbalance in cassava buying and selling.
“Even, if the farmers intend to make Return on Funding of 300 per cent on the 12 to 13 months funding, it shouldn’t be by way of irregular pricing, however by way of engaged on growing yield per hectare to be able to overwhelmingly cowl the price of manufacturing,” he stated.
On his half, a cassava farmer primarily based in Badagry, Sebasi Menayon, stated the glut is already forcing down the worth of the tuber crop, noting that most of the cassava farmers are at present promoting beneath the revenue margin.
“Although this appears to be an excellent growth for the nation, particularly on the excessive value of staple meals, however for among the farmers, particularly those that switched to cassava planting this 12 months due to the massive revenue recorded final 12 months, they’re already biting their nails, as the worth stored falling each day.”
Menayon disclosed that the worth will drop additional because the nation strikes into the raining season, advising those that are procrastinating their harvest to not hesitate in promoting them, to keep away from a colossal loss.
