Raw Materials: Because
of the Research and Development (R&D) work by IITA and National Root Crop
Research Institute (NRCRI) scientists, Nigeria has the advantage of improved,
high-yielding disease-resistant varieties. The challenge is to multiply these
varieties and to make them available to farmers who supply the cassava processors. The average starch percentage for Nigerian old
cassava varieties is about 20%. The new IITA
varieties average above 25%. However, selected farmers in Brazil have the
competitive advantage of varieties with 30% starch. To compete effectively,
Nigerian research institutions should aim to develop higher starch varieties
immediately. Another critical input is fertilizers. With subsidized fertilizers
provided through the Agricultural Development Programmes (ADPs), its
availability is limited
and unpredictable. Private sector agents provide
additional fertilizers at free market prices, but are unwilling to store large
amounts, which they might not sell, thanks to the uncertainty about the
quantity of subsidized fertilizer that may become available.
Finance - The majority of cassava farmers and
processors live in areas that are resource-poor, highly heterogeneous and risk
prone (PIND, 2011). Consequently, conventional financial institutions are not
inclined to provide loans to these without collateral. In order to support poor
smallholder farmers, in 1989 the Federal Government introduced a policy to
liberalize their access to credit. The measures included the recapitalization
and consolidation of commercial banks as a matter of policy, the establishment
of micro finance institutions and community banks, and the reforms in the
National Agricultural Credit and Rural Development Bank (NACRDB), and the Bank
of Industry (BOI). Several other financial incentives and initiatives are also
under consideration by the Ministry of Finance and the Central Bank of Nigeria.
Human Resource Development (HRD) Labour force and
training: Even though Nigeria has more than 45 Universities and a similar
number of higher educational institutions (polytechnics, colleges of
agriculture and education, etc) the content and depth of training available in
such institutions are not considered adequate to transform current small scale
orientation in cassava farming to the commercial scale production systems (PIND,
2011). There is a dearth of skilled manpower in the technical and
managerial aspects of large-scale farming and post harvest processing.
Physical Infrastructure – the local, state and federal government
supplies these. Their state of disrepair contributes to high transportation
costs, making the cassava products uncompetitive. Additionally, poor information
dissemination across value/supply chain prevents decision makers’ direct access
to market partners, support institutions, price sources and technical
information.