Cassava, a staple crop and a potential economic game-changer for Nigeria, is currently presenting a troubling reality for farmers. What was once seen as a source of wealth is now yielding little more than despair, with prices for harvested tubers experiencing a dramatic downturn. This market collapse isn’t due to natural disasters but rather a complex interplay of market dynamics and policy gaps.
The Root of the Crisis: Why Cassava Prices Are Falling
Several factors are converging to drive down the price of harvested cassava, leaving farmers in a precarious position:
Surge in Starch Imports and Waning Industrial Demand: The primary culprit appears to be a significant increase in the import of cheaper starch alternatives, particularly corn starch. Industrial processors, including those in the pharmaceutical and food sectors who previously relied on local cassava starch, have reportedly shifted to these imported options, filling their warehouses and effectively abandoning local procurement. This directly impacts the largest off-takers of cassava, leading to a drastic reduction in demand from industries that invested heavily in processing local cassava.
Policy Vacuum and Inconsistent Enforcement: A glaring lack of a well-articulated and consistently enforced cassava policy exacerbates the situation. Stakeholders point to a government decision to license pharmaceutical firms to import starch-based substrates duty-free as a major blow to local processors. While there have been calls for local procurement mandates, their enforcement seems insufficient, leaving local producers vulnerable to unfair competition.
Over-reliance on Garri Processors: With industrial buyers pulling back, farmers are left with limited options. They are forced to turn to smaller-scale garri (cassava flour) processors, who, due to their limited capacity and market power, offer significantly reduced rates that often fall below the farmers’ cost of production. This creates a distressed sales environment.
Simultaneous Harvesting and Supply Glut: In some regions, a large number of farmers harvesting simultaneously can lead to a temporary glut in supply, further pushing prices downwards. While cassava can be harvested throughout the year, concentrated harvesting periods without adequate storage or processing capacity can flood the market.
High Input Costs and Inefficient Production: While the price of the harvested product is falling, farmers continue to grapple with high input costs (fertilizers, labor, etc.). This mismatch squeezes their profit margins and makes farming less viable. Inefficiencies in production and lack of modern equipment also contribute to higher production costs.
Infrastructure Deficiencies: Poor road networks and inadequate storage facilities contribute to post-harvest losses and make it difficult for farmers to transport their produce to markets where they might fetch better prices. This also limits their ability to store cassava and wait for more favorable market conditions.
What Farmers Should Do to Mitigate Price Drops
While some solutions require government intervention and broader policy changes, individual farmers can adopt strategies to minimize losses and build resilience:
Embrace Value Addition and Processing: This is arguably the most crucial step. Instead of selling raw tubers, farmers should look into processing cassava into higher-value products such as:
High-Quality Cassava Flour (HQCF): This can be used in baking, confectionery, and as a raw material for various industries, fetching a better price than raw tubers.
Cassava Starch: While industrial demand has waned due to imports, there’s still a market for locally produced starch for certain applications.
Garri and Fufu: While current prices are low, improving processing techniques for these staples can enhance quality and command slightly better rates.
Animal Feed: Cassava can be processed into chips or pellets for animal feed, creating another market outlet.
Ethanol: Although requiring more sophisticated processing, ethanol production offers a long-term potential for industrial use.
Explore Contract Farming: Partnering with processors who commit to buying a certain volume of cassava at an agreed price can provide a stable market and reduce price volatility risks.
Diversify Crops: While cassava is important, relying solely on one crop exposes farmers to significant market risks. Diversifying into other crops that are less prone to price fluctuations or have different market cycles can spread risk.
Improve Storage Facilities and Techniques: Investing in proper storage can extend the shelf life of cassava, allowing farmers to hold onto their harvest and release it into the market when prices are more favorable, rather than being forced into distress sales.
Join Cooperatives and Farmer Associations: Collective action can empower farmers. Cooperatives can:
- Negotiate better prices with buyers.
- Pool resources for processing facilities.
- Access credit and inputs more easily.
- Share market information and best practices.
- Advocate for favourable government policies.
Adopt Improved Varieties and Agronomic Practices: Utilizing high-yielding, disease-resistant cassava varieties and implementing efficient farming practices can increase productivity and reduce per-unit production costs, making farming more profitable even at lower prices.
Seek Market Information and Training: Farmers should stay informed about market trends, consumer preferences, and competitive pricing. Training on modern farming techniques, value addition, and market access can significantly improve their profitability.
Reduce Post-Harvest Losses: Implementing techniques to minimize spoilage during harvesting, transportation, and storage can significantly impact a farmer’s income.
The current downturn in cassava prices is a stark reminder of the vulnerabilities within Nigeria’s agricultural value chain. While farmers can take proactive steps to mitigate losses through value addition and strategic planning, sustainable solutions will ultimately require concerted efforts from the government to protect local industries, enforce fair trade policies, and invest in infrastructure that supports a robust and diversified agricultural sector.
