What is the main market of dry cassava?

Two other opportunities may drive growth in demand for dry cassava: use of dry cassava in animal feeds and export of dry cassava chips to China and other markets.

Animal feeds:

Animal rearing industries in Ghana are relatively under-developed, though both poultry (layers) and piggery industries have high potential for growth. Feed millers remain uncertain about substituting cassava for maize but are open to the possibility given fluctuating maize prices. Substitution of 16% of the maize used in layers’ feed for cassava would drive demand for 75,000 MT of cassava chips per year. Demand for pig feed is estimated at 3,000 MT per annum. Animal feed opportunities were de-prioritized in this study for two reasons:

1) most animal feeds are already made from local produce, so substituting cassava for maize does not necessarily have a net effect on smallholder farmers;

2) most animal feed producers use the cheapest input options at any point, thus when maize prices are low, use of cassava is likely to drop; this inconsistent demand suggests a lower-impact opportunity for farmers.

cassava chipsCassava chips

Dry cassava chips for export:

Global demand for dry cassava chips processing is growing quickly, largely driven by Chinese imports for use in bio-ethanol production. A few suppliers in Ghana have begun negotiating supply contracts, mainly with Turkish and Chinese off-takers. Demand for shipments averages 1,000 MT or higher. However chip export opportunities are also de-prioritized in this study given very low prices offered by exporters. Depending on the amount of processing done (e.g., peeled, type of drying, etc.) prices range widely from ~$70 per MT at farm gate to $215 per MT FOB (reflecting the high transport costs). At these prices, export is likely only profitable for large-scale commercial farmers who can produce at significantly lower unit cost. Some processors also noted that chip export can be a good stopgap measure to build supply chains while factories are being constructed.

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