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AFRICABIZ VOL 1 - ISSUE: 62
JUNE 15 - JULY 14, 2004
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
editor@africabiz.org
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.

- ONCE AGAIN G-8 SUMMIT DID NOT DEALT PROPERLY WITH NEPAD'S FINANCING

G-8 Summit - 2004-Edition, at Sea Island, Georgia, USA, June 8-10, 2004 - under the chairmanship of President George Walker Bush, finished its session without properly dealing with the financing of Nepad. That is not a surprise considering other international hot spots (Iraq and the Middle -East) that occupied 99% of the agenda. That question of Nepad's financing by G-8 had been discussed one year ago in a previous delivery titled: Now what? G-8 will never deliver. Unfortunately, the conclusion of the article - outlined in the title - is still valid.

G-8 - 2004 edition, final day's agenda included a meeting with six African leaders (South Africa's Thabo Mbeki, Nigeria's Obasanjo, Ghana's Kuffuor, Senegal's Wade, Algeria's Bouteflika and Uganda's Museveni - Click here for countries' briefs) on ways to boost trade and enlist the private sector in the continent's development.

The summit took firm commitment to promoting Action Plan on Poverty. (Click here for the White House's press release on the matter). G-8 is particularly ready to engage action to controlling the spread of AIDS / HIV and pushing for the discovery of a vaccine. In anticipation of the UN-designated international year of micro-credit in 2005, G-8 countries also decided to work with the World Bank-based Consultative Group to Assist the Poor to launch a global market-based microfinance initiative.

Is the Action Plan on Poverty a winning strategy to put Africa on the path of a sustained economic growth rate? Is that Action Plan capable of creating jobs to absorb the dramatic unemployment level (up to 80% of workforce available outside agriculture activities) existing in sub-Saharan African countries? Click here to read about: Micro Finance Is Not the Answer To the Developing Gap.

- Contributor's Guidelines are here to review. Your contribution on "How African countries / entrepreneurs could bridge the developing gap" is welcome.

Many thanks for dropping by and see you here on July 15, 2004.


Dr. B.M. Quenum

Editor of AFRICABIZ
Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA

- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.

a- SHEA BUTTER ( 5, 6, 7, 11, 12, 13)
b- BLUE GOLD ( 14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN ( 20, 21, 22 and here)
d- KENAF ( 23, 24)
e- VEGETABLE OIL ( 25, 26, 27, 28)
f- CEREALS ( 30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS 54, 55, 56, 57, 58, 59, 60, 61)

- TROPICAL ROOTS AND TUBERS: (VII) - C- OPERATING BRIEFS ABOUT A CASSAVA PLANTATION

Cassava, potato, and sweet potato rank among the top 10 food crops produced in developing countries. Sub-Saharan Africa - SSA - is expected to experience the fastest growth in food demand for all roots and tubers, largely driven by rapid population's growth. SSA share in the total demand for developing countries will be 53 percent, with cassava accounting for two-thirds of the increase.

Here are listed four processed cassava's products
, which highlight the fact that cassava could be an important components - an Economic Catalyst - to the Integrated Economic Development Scheme. Briefs on the preparation of fresh cassava prior to the production of chips and pellets are reported here. Operating conditions to producing cassava ships on a small-scale basis are posted here.

The following link dealt with Investment briefs to producing cassava floor with small-scale industrial units. Each unit can create 60 jobs or 60,000 jobs if 1,000 units are installed. That is a lot for rural areas in a developing country.

Starting from Issue 60, four deliveries (A -
Introduction B- Market C - Plantation's creation and D - Medium-scale industrial production unit) deal with the production of a granulated cassava flour that is a popular food in Africa: GARI

- C- CASSAVA PLANTATION'S CREATION

Prior to the description (in delivery N°: 63) of an industrial processing unit to producing Gari, here is briefly exposed the basics to establishing a cassava plantation to supply said industrial unit with fresh cassava roots.

Normally, it should be possible to purchase fresh cassava roots from farmers in Africa's areas of production to cater for the processing plant. However, taking Benin as example, it is wiser that the industrialist establish his own plantation as, most of the time, the farmers' production is sold out to traditional transformers. Once the business firmly established, it will be easier to sign supply's contract with traditional farmers. However, establishing an industrial plantation permits the control about the genetic of the cassava and therefore the gari's yield in the fresh root. See below gari content of selected cassava varieties.

Climatic conditions and pedology to growing cassava are not considered in this brief exposure. Only are taken into account the investment and planning involved to producing enough raw material to catering for the processing plant. The International Institute for Tropical Agriculture (IITA), Ibadan, Nigeria has relevant documentation about said matters. IITA also can provide for planting selected cassava varieties' cutting. The Institute developed species that could yield in appropriate climatic and podology conditions up to 50 metric tons of fresh cassava roots per hectare. Some of these varieties are listed at the upper level of the Table about Operating Expenses' Briefs to creating a plantation. The Institute also carried out extensive researches on cassava's pests and diseases

- C- THE SIZING OF THE PLANTATION

The medium scale processing plant discussed in delivery N°: 63 is tailored to transform 10,000 metric tons of fresh cassava per year - at full capacity and at following operating conditions: a) One shift, 8 hours; b) 22 days per month and c) Processing of 38 metric tons of fresh cassava per day. More details on operating conditions are provided in issue 63 (July 15 - August 14, 2004).

Therefore the plantation, considering variety TMS 81/ 00110 that produces 28 metric tons of fresh cassava per hectare (in optimal cultivation conditions), should cover an area equal to: 357 hectares. Let us make it 360 hectares - assuming some minor discrepancies in production's yield. Those 360 hectares are divided in 12 plots of 30 hectares each. Harvesting of each plot occurring after 13 months. Agricultural operations read as follows:

1- Land preparation:

- a - Clearing with rotary hoe.
- b - Flat ploughing with disk plow.
- c - Atomizing with a tandem disk arrow.

2- Planting:

- a - Cutting preparation.
- b - Planting of cutting (10,000 cutting per hectare).
- c - Two to three weeding actions during the growing period.

Planting and harvesting period - considering root maturity: 13 months - could be organized as par Table below - in accordance with agricultural operations above listed:

PLANTATION ESTABLISHING
Months1234567891011121314151617181920
Plots Nbr 1123456789101112 1123456
Land Preparationxxxxxxxxxxxxxxxxxxxx
Planting- xxxxxxxxxxxx xxxxxxx
Harvest- - - - - - - - - - - - -Plot1Plot2Plot3Plot4Plot5Plot6Plot7
Fresh roots Metric tons - - - - - - - - -  - - -840840840840840840840

- C - OPERATING EXPENSES BRIEFS

Table below gives information about "Operating Briefs" to producing a metric ton of fresh cassava per hectare under cultivation conditions:

CHARACTERISTICS OF CASSAVA VARIETIES

1Cassava varieties TMS
81/00110
TMS
84537
TMS
82/00058
TMS
90257
2Ecological adaptation WideWideWideWide
3Gari yield (%)24282223
4

Fresh Cassava's Yields - metric tons per hectare

28

35

39

43

OPERATING EXPENSES BRIEFS

PRODUCTION EXPENSES / US$ / hectare

5

Hands

55

55

55

55

6

Planting materials

64

70

77

84

7

Fertilizing (Average 339 kg per hectare)
Nitrogen: 100 kg / ha
Phosphorus: 82 kg / ha
Potassium: 157 kg / ha

30

30

30

30

8

Pest control

5

5

5

5

9

Miscellaneous / small equipment

5

5

5

5

10

Heavy equipment operation - Each operating one hour per hectare
One tractor - 100 hP
One tandem disk arrow
One rotatory hoe
One disk plow

8

8

8

8

11

Supervision

17

17

17

17

12

Land charge / hiring

5

5

5

5

13

Total production costs off plantation

189

195

202

209

OTHER COSTS / US$ / hectare

14

Administration

8

8

8

8

15

Contingencies (5% production costs)

10

10

10

10

16

Amortization

30

30

30

30

17

Transport to processing plant

25

25

25

25

18

Interests on operational expenses

32

33

34

36

19

Total other costs

105

106

107

109

20

Total cost of production (ready for processing)

294

301

309

318

PRODUCTION COST PER KILOGRAM AND PER HECTARE
21

Cost of production per metric ton (ready for processing)

10

9

8

7

Last line (21) of above table shows the benefit of planting high yield cassava varieties. The cost of production decreases while the yield of fresh cassava per hectare increases - (Line 4). Comparison with data exposed in Issue 57 for the production of cassava ships demonstrate also the benefit of establishing a plantation to supply a Gari's processing plant. Further, cassava's leaves, stalks and twigs also provide substantial revenues.

In issue 63 (July 15 - August 14, 2004) Investment Briefs and Operating Expenses of a medium scale Gari processing plant will be exposed.

MORE ON ROOTS AND TUBERS
1- Roots & Tubers Market in Qatar
2- Roots & Tubers Market in Europe
3- Food Security: In Sub-Saharan Africa
In Latin America and the Caribbean
4- Roots and Tubers: A Vegetable Cookbook
by Kyle D. Fulwiler
5-
Tuber Crops
by N. M. Nayar

6- Roots, Tubers, Plantains and Bananas in Animal Feeding
Proceedings of the Fao Expert Consultation Held in Ciat, Cali, Colombia 21-25 January 1991
7- Pest Management for Tropical Roots & Tubers Workshop on the Global Status of and Prospects
8- The Tropical Tuber Crops
Yam, Cassava, Sweet Potato, and Cocoyams by I. Chukuma Onwueme

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