CASSAVA A dual purpose crop for sustainable agribusiness investment

By- M.Z.M.Farhad, Agribusiness Advisor, ACDI/VOCA, Sri Lanka. 01-11-201

Cassava/Tapioca/Manioc/Manihot Introduction Cassava scientifically known as Manihot esculenta was first cultivated in Mexico and now is the third most important staple food in the world. Cassava also known as Manioc, Kappa, Mandioca, Tapioca or Yuca, belongs to the family of Euphorbiaceae. This was probably produced from preColumbian times in Brazil, Guyana and Mexico then brought to Africa by the Portuguese navigators. It is an important crop in tropical America mainly in Brazil and significant food crop in many tropical parts of the world. Manioc is a highly regarded source of carbohydrate and energy. The plant is short lived perennial shrub, 1-5 meters tall. The swollen roots constitute the edible parts. The primary product of Cassava is the root tubers. Tubers become ready for harvest in 812months. Raw tubers contain about 62% moisture, 32% carbohydrates, 2% protein, 0.3% fat, 1% minerals, and 1% fiber. Around 80-90% of the wet weight of the tuber could be used for food purpose. Manioc contains large amount of vit-C (35mg/100gm W.W.) and small amounts of vitamin-A, B-1, B-2 and Niacin. Manioc leaves has more nutrients values than the tuber. Leaves consumed in different preparations. Leaves contain with 7% carbohydrates, 6% protein, 15% fat, 0.3% iron and 0.2% calcium. Several research and developement programmes are underway to create varieties that are resistant to diseases such as the Mosaic virus which causes the leaves to turn yellow and wither and limits root growth (it causes losses of 35 million tonne a year in Africa) or high incidence of brown (vascular) streak disease. The plant is also affected by rotting of the stem and the roots. It is also prone to wild animal damage. The tubers are highly perishable due to high content of water. It is a major constraint for export of fresh Cassava and need to be processed soon after the harvest to avoid any losses. Production World production of Cassava is around 250mn mt per year. It recorded a growth of 13% during the period 2006 to 2009. It is cultivated in more than 80 countries around the world. Africa contributes to more than 40% of the

global production out of which Nigeria is number one. A staple food, contributing greatly to food security, the African continent consumes almost all its production. Latin American Caribbean supply of Cassava is relatively stable contributing 35 million mt., representing around 20% of the global production. Brazil dominated the regional production and competes with Thailand and placed second largest world producer. Asia encourages the development of cassava crops for industrial and energy purposes. This continent contributes to around 30% of world production, of which 60% is from Thailand (around 25 million mt) and Indonesia (22 million mt).India is the third largest producer in Asia, with 30% growth in production during 2006 to 2010 period. Sri Lanka produces around 0.23mn tonne annually. The total extent under manioc in Sri Lanka is 24,621ha. The major producing areas are Kurunegala, Gampaha and Badulla. There is no commercial cultivation of Cassava in Sri Lanka. In Sri Lanka cassava is mainly produced in small farm allotments and home garden that catered to the consumer market. Around 98% of the yams are locally consumed. The consumer retail markets prefer only the whole yam without any damages or broken parts. This leads to heavy losses due to inadequate post harvest handling/practices and non availability of cassava based value added industries in Sri Lanka. World Cassava Production
000 tonne Description WORLD Africa Nigeria 224 483 117 449 45 721 2006 2007 2008 2009 242 069 121 469 45 000 15 036 10 000 9 000 9 200 6 500 4 500

217 536 233 391 104 952 118 461 34 410 15 004 9 650 8 800 5 039 6 600 4 456 42 770 15 020 9 700 8 900 8 400 6 700 4 942

Congo, Dem. Rep. 14 989 of Ghana Angola Mozambique Tanzania Uganda 9 638 8 810 6 765 6 158 4 926

Malawi Madagascar Other Africa Latin America Brazil Paraguay Colombia Other (Latin America) Asia Thailand Indonesia Viet Nam India China, mainland Cambodia Philippines Other Asia Oceania
Source-FAO

2 832 2 359 15 251 36 311 26 639 4 800 1 363 3 509 70 465 22 584 19 987 7 783 7 620 7 500 2 182 1 757 1 053 258

3 239 2 400 15 354 36 429 26 541 5 100 1 288 3 500 75 882 26 411 19 988 7 985 8 429 7 875 2 215 1 871 1 108 272

3 700 2 405 15 923 37 024 26 600 5 300 1 444 3 680 77 631 25 156 20 269 8 300 8 959 8 300 3 604 1 941 1 102 275

4 000 2 000 16 233 36 606 26 000 5 400 1 500 3 706 83 715 30 088 20 500 8 600 9 200 8 700 3 275 2 200 1 151 280

Economic importance of Cassava The cassava tuber is primarily used as a food and energy source for people in many countries around the world. It is considered the low cost energy source among the rural population and the per capita consumption exceeds 24Kg/year in Sri Lanka, where as in African region it is around 128Kg/year

and in Brazil it is recorded at 39kg/year. Apart from this it has great potential for manufacturing industries for diverse products as identified below.

Production of Flour Starch, starch based products, Sago and food for human consumption Cassava flour is made from drying and milling tubers. Brazil is largest consumer of Cassava flour in the world. Around 50% of total Cassava production in Brazil and Colombia is used for manufacturing animal feed. Starch is a substance extracted from the tubers which must be processed within 48 hours of being harvested. Large volumes of starch are consumed by paper and textile industries. Starch based chemicals; adhesives find heavy use in the manufacture of corrugated boards, laminated boards and remoistening gums. Also it is used in foundry industry, pharmaceutical, cosmetics and oil well drilling industries.

Production of industrial sweetening agents such as Liquid Glucose, Dextrose, Maltose, Fructose, Sorbitol, etc. Liquid glucose is extensively used in confectionary and food industries as sweetener agent. In the pharmaceutical industries it has many functions; flavor enhancer, sweet casting preservative for tablets, syrupy preparations, etc. In leather industry liquid glucose is used as a reducing agent to retain the pliability of tanned leather. It is also used in textile, paper and tobacco industries. Various products of dextrose are used by medical professionals for infant feeding, intravenous feeding, laboratory reagent for analysis, etc. Fructose syrup is used in every food product and currently being employed in items such as soft drinks, pickles, condiments, salad dressings, ice creams, fruit preserves, jams, jellies, confectionary and canned fruits.

Production of ethanol (bio ethanol) estimated to reach 155billion litres in 2020.China is an emerging nation investing in bio ethanol and noted that one tonne of Cassava could produce 280litres of bio ethanol with purity level of 96%. Cassava is mainly used as raw material for livestock feed industries in Brazil and Colombia. It is estimated more than 50% of the production is utilized by these industries.

Sri Lanka imports large volume of starch, liquid glucose, adhesives, sago, etc, by spending large amount of foreign exchange annually. This out flow of foreign revenue could be saved by setting up of commercial cassava cultivation and related industries in selected areas where large extent of open land mass, that is underutilized, especially in dry zone regions in Sri Lanka. Sri Lanka has the capacity to organize and implement commercial cassava cultivation in the rural dry zone areas which will improve the socio economic status of the people in the region and create more employment through establishment of cassava based industries.

Market analysis for Cassava Cassava is the staple diet of about 700million people around the world. It is most drought tolerant crop capable of growing in marginal soils. Only about 10% of global cassava production is traded. Worldwide demand for cassava by-products is on an increasing trend, but only Thailand, the leading world producer of cassava starch, is truly undergoing transformation towards industrial uses. According to the FAO, an average of 60 Mt of starch is extracted per year from various cereals, roots and tubers, but only 10% of this starch comes from cassava. It should be noted that tropical countries import maize starch every year valued for more than US$80 million, when often they could produce cassava starch locally. For the last ten years, flows into Asia have greatly accelerated and today Asia represents 98% of world imports and 97% of exports. It was in 2001 that cassava imports by developing countries exceeded those of developed countries for the first time. Asian continent imported 6.247mn tonne out of world import volume of 6.392mn tonne in 2010. Since then, international flows have been concentrated on Asia; especially China (represents 92% of Asian imports). The interest in Cassava imports to China is purely by the stimulation of bio fuel sector. The decision of Beijing in 2007 to stop using cereals for bio fuel production has boosted the demand for Cassava. At present 50% of the ethanol produced from Cassava and Sweet potato. China is the third largest ethanol producer in the world. This resulted, the European Union the major import destination for Cassava in granular form for animal feed and Cassava starch, to become a small player, with reduced import volumes based on the abundance of community supply of cereal and other feed grains.

World Export of Cassava

000 tonne TOTAL Flour and starch Thailand Others Chips and pellets Viet Nam Thailand Indonesia Others
Source- FAO

2006 4 852 4 616 236 5 629 1 041 4 348 132 108

2007 4 686 4 416 269 6 506 1 317 4 824 210 156

2008 4 265 3 963 302 5 187 2 000 2 848 170 169

2009 4 651 4 316 335 7 802 4 000 3 450 160 191

Sri Lanka is a recognized Cassava tuber supplier to Gulf region. The export trade initiated in early 1980 and volumes exported have significantly expanded over the decades. Sri Lanka has exported only 1.5% of the total harvested volume. The Cassava in Sri Lanka is made available for exporters through collector network linked to small farm growers in the rural areas. Non availability of Commercial cultivation of Cassava is now identified as the major constraints for competitive marketing of tubers and promotion of value added product manufacturing investments in the country. Cassava Exports from Sri Lanka
Year 2010 2011 2012(January) Quantity (tonne) 2788 3486 264 Value (Mn LKR) 145 320 19 Value (Mn US$) 1.13 02.5 0.15

Source- Sri Lanka Customs

Market prices High demand for exports have given an advantage to the small producers who sold their produce at the farm gate at LKR 15-20per Kg. However the

exporters buy the good tubers that are not damaged and falling in line with buyers requirement. The local market retail prices also have increased in line with the supply and availability of other yams. The tubers in consumer market sells at LKR40-50per Kg. The tuber exporters have a steady year round market and the prices are fixed over a period. The FOB price range from 0.70-0.85 US$/Kg. The competition within the local buyers has increased with the establishment of peace and increasing demand with resettlement of people in North and East. The international market prices for tubers are much lower than Sri Lankan prices. Cassava roots within Thailand increased from US$57/ton in 2008 to US$76/ton in 2010. It is mainly used for industrial purpose and no export of tubers for direct consumption. Over the last eleven years, export prices for flour and starch have increased threefold, from $146.15 per tonne in January 2000 to $509.21 per tonne in May 2011, with an all time high recorded in August 2010, of $630 per tonne, following a bad harvest in Thailand. Since then, prices range from $500 to 600 per tonne.

World Market at a Glance

tonne fresh root equiv

000

Description
Production Trade Per caput food consumption World Developing LDC Sub-Saharan Africa Trade - share of prod. Cassava Prices

2007 2008 2009 217.5 233.4 242.1 44.8 37.8 49.8

Change: % 2009 /2008 3.7 31.7

kg/year 17.5 kg/year 22.2 kg/year 60.8 kg/year 94.2 % 20.6

18.6 23.5 65.9

19.1 24.1 64.5

2.5 2.4 -2.1 0.0 27 Change: % Jan-Oct 2009/2008

103.7 103.6 16.2 20.6

2007 2008 2009

(US$/ tonne) Chips (shipments to China) Starch (f.o.b. Bangkok) Thai domestic root prices
Source - FAO

136.0 171.1 134.1 303.1 383.6 271.7 45.7 57.2 39.5

-21.7 -29.2 -31

Cultivation of Cassava
Climate and soil The plant can withstand adverse climatic conditions and only tuber crop that produces more carbohydrates per hectare. Manioc thrives best in the low country wet zone and intermediate wet/dry zones up to elevations 1500meters. A well distributed rainfall of 1000-2000mm per annum is optimum, but it can grow with 500mm or less rainfall areas. It withstands 46months dry conditions. The optimum temperature is about 25 - 300 C and plant cannot survive in frost and cold weather areas. Open sunny climate is ideal for normal growth performance and formation of good tubers. Cassava can be grown in diverse types of soils; but porous soil is good for cultivation. The crop prefers well drained sandy- loam soils. The growth will be retarded when grown in poorly drained basin sites. It produces good crop at soil ph of 4.5. Cassava is grown on ridges to ensure that the root zone is well aerated when experienced in short duration water logging conditions. Land preparation The common practice is to plough the land to a depth 25-30cm and work the soil in to a fine tilth before preparing top mounted planting ridges. However it is recommended to plough to a depth of 40cm which would loosen the soil enabling the tubers to grow straight and well filled. Varieties

Descriptio n Age (months) Plant stature Yield (mt/ha.) HCN (mg/kg) External & internal skin color Color of flesh Tuber neck Coking quality Export potential

Varieties MU 51 9-12 Straight 35-40 40-45 Brown/ Purplish pink White Exist High High CARI 555 9-12 Straight 35-40 25-32 Brown/ Light pink White Exist High Good Kiri Kawadi 6-12 Bushy 22-75 18-22 White/whit e White No neck High No Suranimal a 9-12 Straight 35-40 34-38 Brown/pin k White Exist High Good Swarna 9-12 Straight 35-40 20-25 Brown/yellowi sh white Light yellow Exist High NA Shani 9-12 Straight 35-40 43-45 Brown/dee p pink White Exist High NA

Source-Dept of Agriculture

All these type are cultivated for food purpose and low in hydrogen cyanide (HCN), an in built chemical compound (glycoside) in Cassava which can be eliminated by boiling.

Planting material The main propagation method is by stem cuttings. Cuttings should be obtained from a healthy manioc field to avoid infestation of diseases. The mature stem is cut to 20-25cm long pieces. Each cutting should contain 4-6 buds. The cuttings should be planted on the same day or the following day. If any adverse weather conditions prevails the bundles of stem cuttings could be stored at dry & shady area for a maximum of 3weaks before they are planted. Planting The cuttings planted upright position where half of the buds (2-3) will be above the soil. The spacing between the cutting and rows will be 90cmx90cm. Other spacing used is 120cmx120cm for heavy branching

varieties, 75cmx75cm for export oriented cultivations and 180cmx180cm for intercropping with coconut. About 12300-20000 cuttings are required to plant one hectare. Manioc can be cultivated year round with supplementary irrigation. Rain fed cultivation is essentially seasonal and planting time and dates depending on the rain pattern of seasons. Short term crops like Black gram, Cowpea, Green gram can be intercropped with Manioc where the growth of plant is slow during first 3-4 months of the crop. Crop rotation is important at every 23years period to maintain soil fertility and control of pest and disease epidemics. Input Management Cassava growers generally use cattle manure or crop residue compost than the chemical fertilizers. Application of compost at the rate of 2250kg/ha is found to beneficial. Manioc responds well to chemical fertilizers. The recommended fertilizer applications are given in the table below. Fertilizer 2 weeks after planting (Kg/ha.) 84 126 12 weeks after planting (Kg/ha.) 84 --

Urea Concentrated Super phosphate Muriate of potash

Source-Dept. of Agriculture

126

63

High dosages of nitrogen fertilizer is not recommended to manioc as it will influence the accumulation of cianogenic glycosides which forms toxic substances in the tubers or edible parts of the plant. Pest & Diseases Pests are not a major problem in manioc cultivation. However in poorly managed cultivations the pest incidence such as mites, mealy bugs, Stem borers, Weevil borers, Scale insects are causing extensive damages.

Mosaic virus and Black streak virus diseases are more common in manioc. These are transmitted by white fly and by planting infected cuttings. Poor drainage conditions in the cultivation field may create an epidemic of bacterial wilt which is considered more serious than mosaic virus. Weed control is important during 3rd, 8th and 12th weeks after planting. Every time weeding is practiced the soil is heaped to the plant stem. Harvesting Harvesting time depend on the variety. The major variety in Sri Lanka is MU51 (popularly known as Peradeniya type) is harvested nine months after planting. The tubers of cassava can rapidly rot or spoil when they are above ground; therefore they are normally left in the soil and harvested when needed as food. However tubers can be stored much longer periods if they are peeled, cut or sliced and dried/frozen. Yields vary according to variety and age, soil type and climate, cultivation methods and management, etc. In ideal conditions the yield can go up to 80mt/ha. The global average is closer to 10mt/ha. The African region average is 08mt/ha. The FAO reports indicates in Cooks Islands has given the highest world average yield of 25mt/ha where as Burkina Faso had the lowest, 02mt/ha. In Sri Lanka the yield varies according to the soil type and management practices. The yield in Sri Lanka ranges 6-12tons/ac.

Cassava processing
Fresh cassava Export processing Cassava cultivated as a mono crop or intercrop with other perennial crops is chiefly used for food purpose, especially in the Northern and Eastern regions in Sri Lanka. It is also an attractive crop for export. Sri Lankan exporters have established market links in the Gulf region which continued to buy fresh tubers for the last three decades. Fresh tubers are exported mainly by refrigerated containers by sea to these destinations. Preparation fresh cassava for export -Harvesting tubers & collect well filled blemishes free, whole tubers

Pre-treatment control occurrence of black spot in flesh- Dipping in fungicide solution; maintain moist condition around the tuber

Tubers dipped in fungicide are allowed to drip off the excess water and packing in 150gauge polythene bags of 10Kg capacity and placed in corrugated board carton. (Air shipments only)

For sea shipment the tubers after dipping in fungicide packed directly in to polythene lined or wax coated cartons. Moist coir dust is filled within to maintain the moisture of the tubers.

Packed cartons kept under control conditions until the shipments are executed. The postharvest process should be completed within 24 hrs of harvesting. Storage and shipping (by Sea) temperature should be 10-120 c., accordingly shelf life would be 5weeks. Corrugated carton size-- 430mm. wide x 330mm. deep x 230mm. high is required for packing 10Kg of tubers. It should be polythene film lined or waxed to prevent absorbing moisture. The one piece box should be strong enough to support 120Kg weight without collapsing. Fresh frozen cassava has easy access to many developed market destinations as it can surpass the stringent sanitary and phyto sanitary requirements adapted for import of fresh produce. This envisages the future market opportunity for Sri Lankas Cassava for fresh produce consumers in overseas.

Export standards of fresh Cassava --Variety--- Peradeniya typeMU51 Shape --- Long and tapering towards the blunt end. Colour--- Pink inner skin, White flesh, brown outer skin Diameter-- 2 inches, Length-- 6-12 inches, Weight 3 tubers / Kg (Av) Cassava industrial processing.

Cassava is an important raw material for development of various products and by products for food and non food industries. At present Cassava is not cultivated commercially. Though the total production is high it is mainly used as a food crop. The feasibility of setting up of industries depends on the easy availability of raw materials with volumes required fill the capacities of manufacturing facilities.

Small scale starch manufacturing unit Partly mechanized and people in the vicinity will be employed for manual production process and operations. The manufacturing facility will produce starch for textile and garment industries in Sri Lanka and support to reduce imports that will save foreign revenue. Small scale liquid glucose manufacturing unit to meet the part of requirement of the confectionary industry which is currently imported from overseas. Large scale investment on high fructose syrup a leading raw material in the confectionary and beverage industry for sweetener purpose. Animal feed industry to utilize the waste products such as peels, cut pieces,

Prospects for global Cassava production appear to stronger as Asian countries like China and Korea replacing European buyers that shifted to grain based produce for manufacturing animal feed. At present Cassava trade is in the hands of Asian market forces. The upward market trend observed to continue as global push for investing in bio fuel production. Therefore scaling-up of cassava crops to meet the needs of the food, energy and industrial sectors could provide an impetus for continued growth.

Cost analysis for Cassava cultivation (Rs/ha.)

Activity Unit No. of units Rs./Unit 1-3 months 4-6months 7-9 months

Land clearing Fencing Barbed wire Nails Poles Land preparation- Deep plowing, harrowing, ridge & furrow Land leveling & planting Planting materials Fertilizer Compost Urea Super phosphate Muriate of potash Fertilizer application Pesticides Irrigation (if provided)** Weeding & earthen up Harvesting Post harvest operations pack house/Storage/Transport Total Cost Yield Tubers Stems Cost of Production Income Tubers Stems

Machine hrs. MD (Man days) Kg Kg Nos. 4 W tractordisc & ridge MD Nos. Kg Kg Kg Kg

4 50 250 20 150 01 25 12000 2500 160 120 180

2,500.00 800.00 300.00 1,600.00 300.00 12000.00 800.00 005.00 20.00 50.00 40.00 50.00

10,000.00 40,000.00 75,000.00 32,000.00 45,000.00 12,000.00 20,000.00 60,000.00 50,000.00 04,000.00 04,800.00 06,000.00

------------04,000.00 ----03,000.00

-------------

MD Ml MD MD MD MD

10 1000 20 20 28 20

800.00 005.00 800.00 800.00 800.00 800.00

05,600.00 02,500.00 04,000.00 02,400.00 --373,300.00

02,400.00 02,500.00 09,600.00 12,000.00 --33,500.00

--02,400.00 01,600.00 22,400.00 16,000.00 42,400.00 449,200.00

Kg/ha Nos. Rs/Kg Rs/kg Rs/stem. Rs/ha. Rs./ha

20,000 30,000 22.46*** 20,000 30,000 30/Kg 4/sucker 600,000.00 120,000.00 720,000.00 270,800.00

Total income Net income

**-- If needed only *** --- If capital expenditure is distributed to three years cultivation cycle the COP is worked out be at LKR15.76. Farhad