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Cassava Chips Production in Nigeria; The Feasibility Report.

Cassava Chips Production in Nigeria; The Feasibility Report.

150,000.00

The demand for Cassava Chips as an industrial product is wide. It cuts across so many manufacturing industries such as distilleries, pharmaceutical, food and most especially the animal feed industry. The production technology is simple and the equipment’s are locally fabricated.

Description

Cassava is the most important root crop in Nigeria, serving as both a staple food for millions of households and a major source of income for farmers and small-scale processors across rural communities. Its adaptability to diverse agro-ecological zones, low input requirements, and resilience under marginal farming conditions make it a cornerstone of Nigeria’s food security and rural economy.

Despite its widespread cultivation, cassava’s industrial processing and value addition remain underdeveloped, limiting its potential contribution to Nigeria’s non-oil economy.

Nigeria is the largest producer of cassava in the world, with annual output exceeding 62 million tonnes in recent estimates, up from approximately 54 million tonnes in 2012. However, cassava roots are composed of roughly 55 % water, making them highly perishable.

Freshly harvested roots typically deteriorate within a few days, leading to significant post-harvest losses that negatively affect both smallholder farmers and the broader supply chain. To address this challenge, the processing of cassava into shelf-stable products is essential for preserving value, improving income, and supporting industrial supply chains.

One of the most effective and versatile products derived from cassava is cassava chips. Cassava chips are dried, irregularly shaped slices of cassava root, usually not exceeding 4–5 cm in length. They serve as an intermediate product in cassava value chains, providing a longer shelf life compared to fresh roots, reducing post-harvest losses, and facilitating transportation and storage.

The chips are particularly suitable as raw materials for industrial applications, including animal feed, ethanol production, pharmaceutical excipients, and certain food processing industries, making them a highly strategic product in Nigeria’s agribusiness sector.

The industrial demand for cassava chips is robust and growing. The animal feed industry remains the largest consumer, relying on cassava chips as a cost-effective and energy-dense carbohydrate source. Distilleries and ethanol producers also utilize cassava chips due to their high starch content and fermentable sugars.

Pharmaceutical manufacturers and food processors increasingly integrate cassava chips into their operations as a source of starch or flour, further broadening the market for this product. The diversity of applications ensures that cassava chips production is not only economically viable but also highly resilient to sector-specific demand fluctuations.

Technologically, cassava chip production is relatively simple, and most of the required equipment can be fabricated locally. The processing steps generally include peeling, washing, slicing, drying, and packaging. The simplicity of production allows small to medium-sized enterprises to enter the market with lower capital expenditure while maintaining efficient operations and consistent product quality.

The proposed cassava chips production business aims to capitalize on this growing demand. The planned plant is designed for a production capacity of 10 tonnes per day, operating for eight hours daily, with an expected utilization of 90 % of installed capacity in both the first and second years of operation.

An input-output ratio of 1:0.45 is assumed, meaning that for every ton of fresh cassava tubers processed, approximately 450 kg of dried cassava chips are produced. The finished products would be packaged in 50 kg printed polypropylene woven sacks with an inner polyethylene lining to protect against moisture and contamination, ensuring product integrity during storage and transport.

Financially, cassava chips production presents a highly attractive opportunity. The abundance of cassava across Nigeria, combined with increasing domestic and industrial demand, ensures a reliable supply chain and a ready market for finished products.

By reducing post-harvest losses and converting low-value raw cassava into a versatile, industrial-grade product, farmers, processors, and investors can capture substantial economic benefits. The relatively simple processing technology and local availability of fabrication expertise further reduce capital requirements and operational risks.

Cassava chips represent a strategic entry point into Nigeria’s industrial cassava value chain. They address critical post-harvest challenges, support multiple industrial sectors, and provide strong revenue potential for investors.

With appropriate management, modern processing techniques, and quality-focused packaging, a cassava chips production business can generate sustainable returns, create employment opportunities, and contribute significantly to Nigeria’s agribusiness and non-oil economic growth.

Table of Contents

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Critical Success Factor of the Business
1.5 Current Status of Business
1.6 Description of the Business Industry
1.7 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start – Up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Account
5.7 Cash Flow Analysis
5.7 Viability Analysis

6.0 Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

Report Details

Report Type: Pre- Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: Text – 28 Pages /Excel – 6 Pages
Product Code: FORA/07/2018/CASSAVACHIPSPRODUCTIONINNIGERIA/009985665
Publisher: Foraminifera Market Research
Release Date: 10/01/2018; Update Every 3- Months
Language: English
Delivery time: 24– 48hours

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