07/06/2021
CENTRAL PROCESSING UNIT (CPU) - Thinking Ahead!
I am in the business of Garri Processing, and Cassava Farming by extension. I have had my fair share of loss in this business to say the least. My earlier experience was never what I thought, believing that Agric business as widely celebrated; is a cash cow. Sincerely, it was through pains, frustration and loss that I eventually got my way.
As a Commercial Garri Processor, the major critical factor that guarantee success and sustenance in this business is your ability to consistently get cassava tuber for your production at a price that garri business can accommodate profitably. Even before now that cassava has become unapproachable because of its high price, I make bold to say that a Garri Processor cannot afford to pay same price a fufu processor is paying for same quantity of cassava. Not to talk of now that major big buyers are always right there in the farm, with their big bags full of cash. In the last two years, cassava business has suddenly turn around the fortune of many farmers who had been living in abject poverty for years.
Concerning-ly, this situation has even made the business of Garri Processing become more difficult than before, especially for Commercial Processors. Since processors cannot offer same price offered to farmers by dealers who procure for Industrial cassava processors in the businesses of cassava starch, cassava flour, cassava chips and Ethanol processing, Garri producers have no choice than to make do with crumbs left behind in the farms after big buyers have left. Thus, reason for low quantity and high price of garri currently being experience across markets in Nigeria. As a matter of fact, there are many commercial garri processors who have closed down their factories. And many have even put up their factories for sale for more than six months now, with no buyers forthcoming.
Now as it, a Commercial Processor who has chosen to remain in this business needs no one to advise him that it is high time he makes Cassava Farming as an integral part of his business. Apart from this, it is no longer a matter of choice but a must that a visionary Garri Processor must situate his factory right there inside the farm settlement - where there is abundant cultivation of cassava tuber. This is not the time to give room for additional unnecessary cost on long transportation.
Despite the large number of people who are going into cassava farming at the moment, I do not see the raw material pressure on commercial garri processors reducing in any way, comes next harvest season. This is simply because, the industrial consumption of cassava tubers is fastly opening up; thus making the business of cassava selling remains a seller's market for a long period of time. Federal Government stands to save huge foreign exchange and create more jobs through industrialization via continuous propagation of industrial usages of cassava tubers, rather than mere production of garri and Fufu. So, it is not difficult to imagine where the interest will belong. And as long as same price applies for garri processors, the situation will remain the same in the garri market.
One need not be afraid of where the future belongs for the business of garri Production though. Only that the players in this market needs to look ahead and reposition their business accordingly.
Apart from the fact that Garri Processors must take cassava farming as part of their business operations, it is equally highly important to fully embrace mechanized Production without any sentiment or reservation. I quite agree that there is still a long way to go in developing efficient and effective machines for this business. Pockets of ugly experiences especially with the 'Garrifiers' does not in any way override the role an efficient machine would play in cost reduction. We can only challenge our Engineers and local fabricators to work closely with us to deeply understand the process and our needs.
In addition, it is high time we begin to embrace the concept of CENTRAL PROCESSING UNITS. This is an idea of a single processing area within a farm settlement that can serve as many processors as possible. This will help reduce cost of production to a large extent. The facility will have all basic production elements ranging from water, electricity supply, machines. Labour will be cheap and in abundant. Two or three processors can combine to transport their cassava tuber at the same time. Selling will become easier and more organized. Getting NAFDAC approval and export certification will become easier. Relationship with farmers will become better structured. The facility will equally service contract production for outsiders.
Group of Processors can come together under cooperative to finance this facility. It makes it easier for them to approach financiers for their developmental plans. Entrepreneurs who are interested in cassava value chain business should also this as a business opportunity.
I make bold to say that the business of Garri Processing is not sinking anywhere. Garri consumption as food is part of our culture as a people in Nigeria. There are several opportunities to scale up in this business. Export Market is also growing. Even locally, I do not see any economically viable replacement for garri in next many years. 'Semo' can only try, it is not drinkable. Beside, price of maize is not also coming down soon, bearing all usage pressure also attached to it.
Our business will not go down by the special grace of God. We only need to keep THINKING AHEAD.
Kazeem Lamidi
08100975775
