Description
Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer.
Full Annual Reports
Project 1 A Pilot Study for the Improvement of the Agricultural Market Information Service in Tanzania Research Grant by FOODNET
A REVIEW OF AGRICULTURAL MARKET INFORMATION SERVICE IN TANZANIA: The Changing Role of Market Information System
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E.R. Mbiha, G.C. Ashimogo, A.A. Temu, D.Nyange1 TABLE OF CONTENTS 1. Introduction 2. Historical Background of Market information Service in Tanzania 3. Current Market Information System in Tanzania 4. Factors Contributing to the Changing Role of MIS 5. Summary of Findings, Conclusions and Recommendations 3 4 6 9 11
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Sokoine University of Agriculture, Morogoro, Tanzania
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1. Introduction: 1.1 Background This report reviews the current status of agricultural Market Information Service (MIS) in Tanzania as a part of a broader research on “A Pilot Study for the Improvement of the Agricultural Market Information Service in Tanzania.” The study is funded by FOODNET, a regional agricultural research and development network focussing on market-oriented research and sales of value added agricultural products in Eastern and Central Africa. Changes in many economic policies in recent years (1990s), particularly the adoption of market economy has rendered some of the functions of many institutions obsolete. MIS being not the exception had been affected by these policy changes. How has agricultural MIS functions and mode of operation adapted to these policy changes? This report reviews the status of agricultural MIS in Tanzania. The report is prepared as a benchmark for planning a more detailed survey of stakeholders in MIS particularly producers, traders, transporters and processors of agricultural commodities. 1.2 Objectives Objective of this review is to understand the current agricultural market MIS in Tanzania so as to develop strategies to improve efficiency in data collection, processing, information dissemination and maintenance of databases. Specifically the study has attempted to accomplish the following; i) ii) iii) iv) To review the organization of MIS in Tanzania and identify key stakeholders in MIS to be interviewed in a more comprehensive survey To evaluate sampling and procedures for data collection, processing, storage (database) and dissemination used by MIS To assess how MIS has adapted to changing economic policies, particularly market liberalization To make recommendations on how to enhance the efficiency of MIS in performing its functions and provide necessary information for planning a more comprehensive survey of stakeholders in MIS.
1.3 Methodology Literature review- MDB/MIS annual crop/commodity reviews, reports prepared for the media (radio and newspaper), evaluation reports, and proposals for reforming agricultural MIS. Review of data collection instruments, data processing, and dissemination procedures Evaluation of commodity price database Discussions with past and current MDB/MIS officials in the Ministry of Agriculture
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2. Historical background of MIS in Tanzania Prior to initiating reforms towards a market-oriented economy in 1984, Tanzania was a statecontrolled economy. During that time, the government directly intervened in the market through price fixing, imposing restrictions on trade, monopolizing the commodity market using state owned companies and subsidizing the agricultural inputs and food commodities. Purchase of food crops from surplus areas, processing and then distribution in demand/deficit areas were mainly undertaken by the state owned the National Milling Corporation (NMC). Agricultural cooperatives operated in the rural areas as agencies for NMC. In addition to the NMC and cooperatives, the private sector also operated, mainly as a parallel market. In 1986, Tanzania made a firm commitment to pursue a market economy and to undertake the Structural Adjustment Program (SAP). The new policy places a clear restriction on the actions that the government can adopt to achieve its objectives. Except in a very limited case such as restocking of the emergency grain reserve, the government is not supposed to intervene in the food markets; rather its role has been limited to facilitate and promote the participation of the private sector. Specific policy reforms that target the agricultural sector include: Withdrawal of the government from fixing producer and consumer prices Reduction in export taxes Removal of agricultural subsidies in input such as fertiliser, seeds and chemicals Removal of quantitative restrictions in movement of agricultural commodities and inputs and Reducing and rationalisation of state marketing and credit institutions including liberalisation of markets and promotion of the private sector
MIS in Tanzania dates back into 1970 when the Marketing Development Bureau (MDB) was established under the Ministry of Agriculture. The project was funded by UNDP while FAO was the participating and executing agency. The project came into full operation in 1972. During its inception MDB had the following objectives; To provide advice to the government on marketing policy To organize marketing training for the staff that would be required by the Ministry, marketing authorities and cooperatives for their marketing activities, and To establish a regular market news service
Later on additional tasks were put to MDB and these include; To set consumer prices To carry out research on costs of crop production on behalf of the Cooperative Unions To recommend producer prices for staples and major cash crops (1973/74)
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When it started information reported by MDB was official commodity prices and volumes. In early 80s even before market liberalization MDB had already extended its coverage to include unofficial parallel markets. However, such information became legitimate and acknowledged by the government after adoption of market-oriented economic policies in 1986. Since then MDB has been undergoing gradual transformation in terms of functions, organization structure and commodity coverage. As a reflection to such changes the department’s name has been alternating from MDB to Agricultural Information Service (AIS) and Market Information Service (MIS).
3. Current Market Information System Under recent changes MIS has been transferred from the Ministry of Agriculture into the Ministry of Cooperatives and Markets. Figure1 illustrates the current organization of MIS under the Ministry of Cooperatives and Markets.
AGRICULTURAL MARKET INFORMATION SYSTEM IN TANZANIA
MINISTRY OF CO-OPERATIVES AND MARKETS DIVISION OF AGRICULTURAL MARKET INFORMATION SYSTEM MARKETING RESEARCH AND INFORMATION SECTION MARKETING RESEARCH MARKETING INTELLIGENCE PROMOTION AND REGULATION SECTION MARKET PROMOTION MARKET REGULATION
3.1 Organization Structure and Functions 3.1.1 Marketing Research Unit The functions of this unit are: To conduct customer needs assessment and provide information to farmers, livestock keepers, domestic traders, processors, importers and exporters To assess market potentials
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To analyse market shares, distribution channels, demand and supply, sales and market development
The mentioned functions are accomplished by conducting market surveys and participation in commissioned studies. In general, the activities of this unit involve data collection, analysis and dissemination of research findings. 3.1.2 Marketing Intelligence Unit This is unit is involved in gathering of time series data from various markets by interviewing market participants e.g. wholesalers and retailers. Regional and district market monitors report what is happening in their markets to the central data processing unit in the Ministry. Other sources of its information are publications i.e. books, newspapers, trade periodicals; large-scale storage and processing facilities. Types of data collected include commodity prices, volumes of trade, marketing costs, commodity quality etc. In general activities of this unit involves gathering of time series, data analysis, projection and forecast, storage and dissemination of information to stakeholders. 3.1.3 Promotion Unit Broadly, the functions of this unit include advertisement, promotion and publicity. To perform these functions the unit organizes trade fairs, exhibitions and provide support in building the capacity of private sector in promoting their products in domestic and international markets. Since individual companies market their own product, this unit is involved in coordinating and facilitating such activities. Also the unit is involved in generic promotion i.e. promotion of a commodity as an industry as opposed to brand promotion performed by individual companies. 3.1.4 Regulation Unit This unit is involved in regulating crop/commodity marketing boards and traders by setting standards and grades of products (inputs and produce), formulating rules and regulations of operations, coordinating and monitoring, setting standard measures and weights. 3.2 Other Agencies Involved in MIS Besides MDB there are other agencies involved in providing agricultural MIS. These are; 3.2.1 Food Security Unit (FSU): FSU was established in 1989 under the Ministry of Agriculture and Cooperatives. FSU has two sections, namely, Crop Monitoring and Early Warning System (CM&EW) and Strategic Grain Reserve (SGR). CM&EW is charged with the task of assessing (present and future) crop production and food supply in the country so that the government can take timely remedial measures on impending food deficit or surplus. This department has a countrywide system of assessing food production and supply through rapid field surveys, agrometeorological data, crop procurements and stock data.
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3.2.2 Kariakoo Market Cooperaion (KMC): KMC was established in 1981 as state company and is the largest produce market in Dar es Salaam. KMC is under the Ministry of Local Governments. KMC collects and keep records of price and volumes of crops delivered into the market. 3.2.3 Bank of Tanzania (BOT): BOT publishes quarterly and annual reports on agricultural production, export and import of commodities 3.2.4 Customs Department: This is department is under the Ministry of Finance and provides information on export and import of commodities including food and cash crops. Some of the information collected by this department are published by the Board of External Trade.
3.2.5 Private Sector Since the adoption of liberalized market policies there has been an increasing participation of private firms and organizations in providing MIS. Some of identified MIS providers are Business Care, and Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA). Business Care publishes market information in its weekly the Business Times. In addition to reporting secondary information from other agencies, Business Care has its own network for gathering market information. The Financial Times also sponsors and publishes market information gathered from various agencies discussed earlier.
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4. Factors Contributing the Changing Role of MIS 4.1 Policy changes Abandonment of central planned socialist policies and adoption of market-oriented policies have prompted MIS to change its mode of operation from reporting of official (fixed) prices set by the state agencies to monitoring and reporting of market prices as they are determined by demand and supply. 4.2 Government MIS Organization Structure During its inception MDB was under the Ministry of Agriculture. However, there have been frequent changes in the organization structure of the Ministry of Agriculture including split or merger of its departments, and transfer of its staff or functions to other Ministries such as Ministry of Regional Administration and Local Government, Ministry of Cooperatives and Markets, and Ministry of Water and Livestock Development. Such changes have affected the performance of MIS department in the Ministry especially in maintenance of database, coordination of market monitors in the regions and districts on one hand and data processing unit in the Ministry. Discontinuity of data series is one consequence for such frequent changes in the organization structure of the Ministries concerned. 4.3 Emergence of Private Agencies Offering MIS Participation of private sector in agricultural commodity trade and as providers of MIS has changed the environment at which government MIS operates. Private agencies are complementing government’s effort in providing MIS. Information collected by private agencies has a potential of serving as a verification mechanism for information collected by government agencies. However, there is a need to coordinate activities of various MIS providers to ensure consistence and avoid confusion to information users. Institutional networking in MIS
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providers is vital to ensure a more broader geographical and commodity coverage while avoiding duplication of efforts. 4.4 Commodities Changes During its inception MDB coverage was limited to few fruits and vegetables. Currently there are 27 food crops covered by the government MIS. Export crops such as coffee, tea, cotton, etc., have a more developed MIS than food crops. Since most of exports are of high value crops there is more involvement of private traders and crop cooperatives in providing various services including market information. MIS in export crops is more commodity-specialized. However, since liberalization of markets some non-traditional exports such as food crops (e.g. rice) some fruits, vegetables and spices are gradually penetrating international markets. Also domestically, more commodities are finding their way into the market and there have been changes in commodities in the market in terms of volume, type and form. For instance some commodities that traditionally were grown for subsistence in the past have become more popular and are now produced commercially. Also more commodities are now being processed and packed before are sold to consumers as a way of adding value to them. Rapid emergence of maize and rice millers has been witnessed in recent years. This has led to decrease in commodity volume in some markets as part of the supply is re-channelled into millers instead of being delivered directly into the open market. Such trend has been reported in Tandale market, which is the largest wholesale grain market in Dar es Salaam. Packaging of milled products is also increasing leading to multiplicity of product brands in the market. These changes have made it necessary for the MIS to change its mode of operation and revise its commodity basket. 4.5 Mass media for Dissemination of Market Information When MDB started all the media ware under state monopoly. Currently there are many private media such as radio, TV and newspaper. Some of the media are nationwide while others are local. MIS has to deliver information in media that will reach the target group. Competition in media has an implication in the cost of dissemination market information. 4.6 Changes in Market Structure and Location Currently government MIS covers 44 markets representing all major agro-ecological zones. Market information is collected mainly from producers (in rural markets), wholesalers and retailers. Since liberalization of markets there have been spatial changes in some commodity markets, possibly due to development of infrastructure (roads, railways and electricity), and increase in processing and large scale-storage. Processors and storage agencies are new intermediaries in the market structure. For example in the past Gairo was an important rural assembly market for maize and other staples along Dodoma-Dar es Salaam market channel. However, since electrification of the neighbouring Kibaigwa town, this market has shifted to the latter town.
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5. Summary of Findings, Conclusions and Recommendations From this review it is obvious that the government has done much effort to streamline the MIS in order to accommodate the recent policy changes. However, the below discussed observations suggest that the current government supported MIS still lags behind the rapid changing agricultural commodity markets hence recommendations are made on how to make MIS more efficient and timely in performing its functions. 5.1 Sampling (markets and commodity coverage) Currently government MIS covers 27 commodities in 44 markets all over the country. Such sampling was designed to get a good representation of markets and commodities, and possibly to give statistical validity to market information collected. However, managing such a large sample of markets and commodities to ensure continuity of time series has proven difficult. There are many gaps in the price series available in the Ministry database. It would be advisable to reduce the sample size by selecting ‘strategic markets’ and most important commodities while maintaining good representation of agro-ecological zones, assembly and consumers markets. Reducing the sample size will ensure a closer monitoring of data collectors while increasing their motivation through salaries, capacity strengthening (training) and provision of working facilities e.g. motorcycle and mobile phones. With the current tight budget of the Ministries, a manageable sample is necessary to ensure sustainability of financial support. 5.2 Type of Information Collected Though it is documented that volumes of commodities delivered to the market is collected, such information is scantly available in the database. Not much analysis can be done to price data without volumes. Monitoring of volume is quite complicated due to lack of transparency by
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private traders (in attempt to evade tax) and emergence of new market intermediaries (processors and storage agencies). There is a need to strengthen data collection mechanism possibly by increasing public awareness of the importance of MIS through media and legal enforcement through local government by-laws. Increasing public awareness is an appropriate task for the newly formed promotion and monitoring section of MIS. 5.3 Data transmission to processing centre Currently information from district and regional monitors is transmitted through radio-call network and postal mails. Due to increasing accessibility to internet, email and mobile phone network in regional and district towns, use of such technology where available could make reporting of information more timely and less costly. For example Vodacom Text Message cost US $ 0.06 per message regardless of the length. Sending an email in an internet café could cost TSh,. 300 –500 per 15 to 30 minutes. 5.4 Data processing The current database needs to be updated and a more user-friendly software installed. FOODNET has already started to support MIS department by providing computers to facilitate installation of new software. However, the department needs continued support in capacity strengthening in terms of IT and analytical skills. 5.5 Information Dissemination Most of market information is currently published in English newspapers. However, profile of traders in many market surveys indicate that majority of traders are primary school graduate. There is a need to have more market information publication on Swahili media. MIS stakeholders survey will reveal more information on popular mass media and programs. 5.6 Institutional networking To avoid duplication of information reported by various MIS providers there is a need to establish a network of agencies providing the service. Such networking will also allow more geographical (markets) and commodity coverage while minimizing costs of MIS. Inconsistence in information reported will also be avoided. 5.7 Units of Measurements in Reported Prices and Volumes Standardized measuring facilities are lacking in most markets and commodities. For example bags of maize and rice differ from market to market and seasons. When prices are converted into standardized weights such as Shilling per kilogram more precision is lost. The Regulation Section of government MIS need to undertake a study on how to cope with this and possibly regulate markets through legal enforcement. Use of standardized scales is gaining popularity in retail urban markets for some commodities. However, adoption of such practice needs more incentive and legal enforcement.
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5.8 Promote Participation of Private Sector in MIS There is an increasing participation of private sector in providing MIS. There is a need to promote more participation of private sector in providing MIS through public awareness campaign and contracting some of MIS task to private sector. However, due to high cost of providing MIS especially in geographically scattered market, the government should continue to provide this service and gradually withdraw where the private sector is taking over. 5.9 Changes in the Organization Structure of the Ministries Frequent changes in the organization structure of the Ministry is affecting negatively the performance of MIS especially in maintenance of database, coordination of reporting system for markets in the districts and regions to the central processing unit. Discontinuity of many time series and loss of records is the evidence of the negative impact of frequent changes in the Ministries. To minimize such negative changes at least at the Ministry level, MIS department need to be moved as unit instead of splitting or merging it with other departments.
References: Mdadila, J.M. (1996). A proposal to set up a comprehensive market information system for the agricultural sector. Marketing Development Bureau of the Ministry of Agriculture, Livestock and Cooperatives. Dar es Salaam, February 1996. MDB (1992). Wholesale trade in grains and beans. Marketing Development Bureau of the Ministry of Agriculture and Livestock Development. Dar es Salaam, January 1992.
List of Current and Past MIS Officials Interviewed 1. Mr Banda, E.T.Former Assistant Commissioner, Marketing Development Bureau, Ministry of Agriculture 2. Mr Mdadila, J.M and Cooperatives 3. Mr Ulaya, B. Director, Market Information Service, Ministry of Markets
Market Information Service, Ministry of Agriculture
4. Mr Massawe, B.D. Project Manager, Tanzania Livestock Development Project, Ministry of Water and Livestock Development 5. Mrs Mlote,S . Coordinator of MIS, Tanzania Livestock Development Project, Ministry of Water and Livestock Development
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Project 2
Technical report Preamble: The market information service is a new initiative aimed at empowering farmers by availing market information. The only prevailing market information service is through the Daily nation column provided by market information branch, Ministry of Agriculture. Our niche is the rural farmers in Kiambu and the larger Central Province/Nairobi. It was initiated by Immediate Communication after funding was received from FOODNET on 21-02-01. Our brochure is attached (annexe 1) Hiring of staff The post of market information compiler was advertised in College campuses and in both Nation and Standard on 7-03-01. A minimum of agriculture economics Bsc was requested. About 30 people responded and interviews were performed over a one week period. A scoring method was adopted and the person who scored most was hired. He has a Bsc(Agric. Econ.) computer training, work experience in marketing and managing a coffee estate. He commenced work on 12-3-2001 Preparatory work The initial work of the data compiler was to familiarize himself with the markets, get a feel of the sellers, traders and farmers. He had to identify the main markets in Kiambu dealing with substantial volumes. He also travelled to other markets in Central province for comparative purposes. His other mandate was to ask these people he met through a simple questionnaire, the radio they listened to, the times which were most appropriate, their trade products and volumes. This work was conducted from 12-03-01 to 30-03-01. Equipment acquisition. A computer, printer, UPS and surge protector were purchased early on as indicated in the financial report. Considering that the target area has rugged terrain, it was important that a reliable and strong motorbike was obtained. All available models for that purpose were costly way above the ceiling set especially due to the taxes. After a long period of searching, a new Jialing motobike was obtained at the amount set by the budget (200,000) and the balance of forty thousand would be met by the company. This price includes helmet, one weeks training and taxes. The delay in purchase of the bike, meant that the data collector had to use public transport means of travel. His travelling expenses in the month of March and April were all in that category. Radio programmes From the first instance, Kameme FM had been approached to air the programmes but they were charging too much (20,000 per announcement). We then approached Coro FM who agreed to broadcast for 5 min 5380 sh/week information which was relayed to FOODNET. At that stage it was viable to air two programmes per week. We were later called by Kameme FM who had got wind of what was going on and who were still interested in airing the programme on commodity prices. They preferred daily commodity prices and covering Central Province which is their target audience. Our project covered only Kiambu (one of the districts of Central
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province) and our budget was 5380 shs per week for air costs. After some discussions, a compromise was reached. They agreed to reduce charges to 1000 sh/ programme per day for five days. This came to 5000sh/week. The information would be as a chart which was flexible and could be adjusted and not tied to a time frame. This was actually below the budget set earlier in the project for two days. We devised a cost-effective way of collecting information from four markets representative of central province to meet their needs by recruiting ex-high school market traders as field agents. This was to cover distant markets in Karatina, Thika, Kutus, Kagio. They would be paid 100 sh./call and make a reverse call. Their information would be counterchecked by regular survey visits. The idea seems to have worked so far
Execution of the radio programmes. The radio programmes have been going on daily since, 2-4-01. For each day, the markets which were active are presented. This means there is a daily variation which creates interest. A typical daily programme is attached for reference. The format has been modified after two weeks to include varieties of peas, potatoes, Bananas. The farmers wanted the particular types of commodities defined as they command different prices. This information was from the market people. Another modification was the inclusion of rice, and French beans as commodities. We have included the weekly prices of meat live chicken, mutton and beef from the main private slaughter houses aired on Wednesday only.(annexe 2) Results There are different results depending on the respondents. Farmers: Many farmers are responding positively as reflected by the following examples: Case 1.0: in Kawangware, some farmers after hearing the programme, relayed the information to Timboroa (In Rift Valley province). The following market day saw a large supply of potatoes from Timboroa. Case 2.0: In the Kiambu market, one trader who buys potatoes from Kinangop observed that the farmers were fixing the prices on the information obtained from the broadcast. Consequently, the price for a bag of potato from the farm gate increased by sh100 as they now had a bargaining position Traders: Most traders were not quite receptive to the service. Case 1: One trader in Kiambu felt that the market information service was creating awareness to the farmers on market trends. She felt that the prices should be looked at from the consumers side as they too bought the produce according to the prices broadcast. Case 2.0 A major egg supplier located in the city centre noted that farmers get a raw deal since they are mostly price takers. She observed that with introduction of the information service farmers can have more leeway in setting prices for the eggs. This, she noted, would minimize price differences in the same market, for instance, Wangige market where she obtains her supplies. Case 3.0 This trader from Kiambu felt the market information service was a market spoiler. She felt that with the introduction of the information service the farmers were asking for a higher price as opposed to earlier times. She would rather withhold the information from the compiler.
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Our response to these challenges was that they should expand their vision and think beyond the farm gates. Since some of them had been in business for a long time they should utilise the market information services to obtain prices of commodities in far away markets and organize efficient means of travel to obtain better price margins. They could also think of adding value to these commodities like better packaging or higher grading Challenges. Lack of homogeneity in unit measurements. Potatoes, cabbages, green maize and carrots In some cases eg. maize, cabbages, the units are packed in a truck and delivered to the market. In some cases, there is variation of the bag sizes from big to small. Conflicting interests, some traders want high consume prices to be announced so they can sell at a higher price. Others want low producer prices to be announced so that farmers sell cheaply to them. Some are totally disinterested in people who are not buying Past and future challenges The project was initially designed to cover Kiambu district alone which was about five market: Wangige, Limuru, Kiambu, Githunguri, Marigiti /Nyamakima (Nairobi) . It was also meant to be aired on two days per week. Due to the challenge from Kameme FM radio and farmers that this was too restrictive and not comprehensive enough, five other markets were included. These are Karatina, Kutus, kagio, Thika and the Mwea region These areas represent a very productive region of Central Province especially in rice, horticultural produce like French beans and tomatoes. These inclusions have made the service very successful because of the wider reach and diversity of markets. Through negotiations, a daily programme for the week was also worked out within the same air time budget. Since market day schedules are different every day, it has meant that we have a different programme everyday which has increased the interest in the information flow. We had to design a simple way by using field agents in which we could obtain information from the distant markets by use of reverse telephone calls. Their re-numeration may need topping up to increase motivation once reliable agents have been identified. This has, however, lead to an increase in our telephone bills an item which was not covered in the initial budget.. It has also meant a more frequent and distant field validation of the data. From the information gathered so far, the area of interest is covered by the two radio stations. Kameme FM is popular in Kiambu and Nairobi environs but has a weak signal and is therefore not heard in the five distant markets mentioned earlier. Coro FM on the other hand was started only a few months ago but has a strong signal in all these areas mentioned. It may be viable in future to consider having both stations air the prices but with different formats.
Schedule of activities Date 5-03-01 9-03-01 12-03-01 Activity Data collector interviews Market familiarization Results One hired Set-up and Comments BSc. Agr . econ 5 markets
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30-03-01 2-04-01 30-04-01 17-04-01 18-04-01 Radio market prices Format modification Supplement
contacts established Daily prices mon-friday More informative Weekly livestock prices
9.30 pm kameme FM
Wednesday programme
Partnership building MoA: We are in contact with MoA official Mr Mushangi in evaluating the effects of the programme and visited field officers in the Ministry of Agriculture KWFS (Kenya women Finance Trust) This is a credit providing institution which targets women in the rural areas. We have visited Kenya women finance trust based in Karatina and expressed our wish to be associated with their members as regards market information and its use to their members GTZ-PES - This is a GTZ funded project with the mandate of assisting private extension agents in formulating their work to suit farmers. We are liasing with them so that they can facilitate a stakeholders forum for farmers, consumers, input providers and others. The objective would be to 1) Get a feedback on the service so far. 2) Identifying problems and challenges and mapping the way forward. 3) Identify possible partners for the future sustainability of the programme. Conclusion. In conclusion, the services have been very successful according to many farmers and some traders. They have adjusted to these services and some have become daily listeners and look forward to comparing prices in the different markets.
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Project 3
(FIRST DRAFT) Marketing Opportunities for cassava based products: An Assessment of the Industrial Potential in Kenya
Prof. Edward E. Karuri Prof Samuel K. Mbugua Dr. Joseph Karugia Kelly Wanda John Jagwe
February 2001
University of Nairobi, Department of Food Science Technology and Nutrition Foodnet / International Institute of Tropical Agriculture
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CONTENTS
PREFACE .........................................................................................................................................................20 ABBREVIATIONS ...........................................................................................................................................21 ACKNOWLEDGEMENTS ..............................................................................................................................22 SUMMARY.......................................................................................................................................................23 1.0 INTRODUCTION .......................................................................................................................................24 1.1 OBJECTIVES OF THE STUDY ......................................................................................................................24 1.2 METHODOLOGY ........................................................................................................................................24 2.0 INDUSTRIAL DEVELOPMENT IN KENYA ...........................................................................................26 3.0 CASSAVA PRODUCTION.........................................................................................................................28 4.0 CASSAVA MARKETING ..........................................................................................................................31 5.0 CASSAVA UTILISATION .........................................................................................................................31 5.1 CASSAVA CONSUMPTION IN KENYA ..............................................................................................31 5.1.1 INTRODUCTION ..............................................................................................................................31 5.2 CASSAVA UTILIZATION IN UGANDA ..............................................................................................36 5.2.1 INTRODUCTION ..............................................................................................................................36 5.2.2 PREPARATION OF CASSAVA PRODUCTS ..................................................................................................36 5.3 FOOD TYPES PREPARED FROM CASSAVA IN THE SIX COSCA STUDY COUNTRIES. ..........37 5.3.1 COOKED FRESH ROOTS ................................................................................................................37 5.3.2 CASSAVA FLOURS ..........................................................................................................................38 5.3.3 GRANULATED CASSAVA ...............................................................................................................38 5.3.4 COOKED GRANULES ......................................................................................................................38 5.3.5 FERMENTED PASTES ....................................................................................................................39 5.3.6 SEDIMENTED STARCHES .............................................................................................................39 5.3.7 DRINKS WITH CASSAVA COMPONENTS .....................................................................................39 5.3.8 NON-CONVENTIONAL FOODS ......................................................................................................40 6.0 STARCH. ....................................................................................................................................................41 6.1 PRODUCTION OF STARCH ..........................................................................................................................41 6.1.1 Cassava starch. ..................................................................................................................................41 6.1.2 Cornstarch .........................................................................................................................................41 6.2 HISTORY OF STARCH PRODUCTION IN KENYA ..........................................................................45 7.0 SURVEY FINDINGS ON CASSAVA STARCH ........................................................................................46 7.1 RESULTS AND DISCUSSION. ..............................................................................................................46 7.2. OVERVIEW OF THE KENYAN STARCH MARKET. .....................................................................66 7.2.1 Paperboard.........................................................................................................................................67 7.2.2 Paper..................................................................................................................................................67 7.2.3 Textile ................................................................................................................................................67 7.2.4 Pharmaceutical ..................................................................................................................................68 7.2.5 Food Processing.................................................................................................................................68 7.2.6 Plywood and paperboard ....................................................................................................................69 7.2.7 Utilisation in feeds ............................................................................................................................70 7. 2.8 Other potential uses of the cassava ....................................................................................................71 8.0 CONCLUSION............................................................................................................................................73 . ......................................................................................................................................................................73 9.0 REFERENCES ......................................................................................................................................73
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PREFACE This study was carried out by the Department of Food Science Technology and Nutrition of the University of Nairobi, in collaboration with Foodnet which is a regional network promoting marketing oriented research in order to identify opportunities for value added processing of agricultural products. Funding was provided by USAID through ASARECA, a sub-regional research organisation coordinating the Foodnet network Prof. Edward E. Karuri, Prof. Mbugua and Dr. Joseph Karugia of the University of Nairobi and Kelly Wanda and John Jagwe of IITA-Foodnet wrote the report.
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ABBREVIATIONS ASARECA IITA KAM CPC SBA USAID Association for Strengthening Agricultural Research in Eastern and Central Africa International Institute of Tropical Agriculture Association of Manufacturers of Kenya Corn Products Corporation (Kenya) Starch-Based Adhesive United States Aid for International Development
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ACKNOWLEDGEMENTS Much effort has gone into the preparation of this report. We wish to appreciate first and foremost the co-operation that we received from the personnel in the industries visited in the various parts of the country. Their willingness to provide us with relevant information without fear despite our calling on them at very short notice was very encouraging. Special thanks go to those who embraced our effort and were willing to participate in future industrial trials. We would like also to thank all the staff of the Department who tirelessly devoted their time in supporting this survey. Lastly, it ought to be pointed here that without the financial support from USAID through the Foodnet ASARECA network this report would not have been written and published.
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SUMMARY Since the era of development aid in Africa, research efforts have been focused on increasing agricultural productivity mainly through improved technology at the farm level. In spite of such programs, rural household incomes have largely remained low thereby perpetuating the relatively higher poverty level with all its negative consequences notably, low savings, low investment, low productivity and low incomes. It has now been increasingly realized that real benefits to rural communities are going to come from forward linkages of rural producers to more stable and higher value industrial markets. In turn industry too stands to benefit from increased rural household incomes in terms of higher effective demand for industrial products. Therefore, this report presents findings on the current state of the Kenyan market for starch, starch-based adhesives and high quality cassava flour for industrial purposes. An assessment of the potential for locally made cassava-based products to substitute for existing raw materials has also been attempted. KEY FINDINGS The total market for starch-based products in Kenya is estimated to be over 12,000 MT per annum. A bigger portion, about 60%, goes into the brewery industry. Other major consumers include paperboard, paper and the food sector. Native maize starch dominates the market for starch. Modified starches are not significant. This is mainly produced locally.
Cassava starch has the potential to substitute maize starch in the paperboard industry. Some of the industry in this sector had used cassava starch before which they found preferable. However, use was discontinued due to inconsistency in quality and erratic supply. The manufacturing costs are high in the local scene because of inefficiencies in the production chain. At the moment production and supply of cassava starch is low and not timely. This was attributed to higher costs of local production, poor infrastructure and low raw material production
The potential use of cassava in animal feeds has not been exploited in Kenya. This is mainly due to lack of information especially in terms of the processing steps and the rate of substitution of cassava for maize in the commercial animal feeds.
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1.0 INTRODUCTION The economy of most of the developing countries is still largely based on agriculture. However, if agriculture in the developing countries is to contribute to real growth and development in these countries, the link between it and industry has to be developed and strengthened. This would in turn then offer alternative and cheaper sources of raw material to industry while at the same time offer the much-needed internal market to stimulate industrial production. 1.1 Objectives of the study This study aimed at making a rapid and detailed investigation of the existing industrial markets for starch-based products in Kenya and to assess the potential for cassava based products to replace or partly substitute existing raw materials. In addition, an attempt was made to identify firms within the respective high priority industries that researchers could work with to achieve market penetration and assess consumer acceptability. Survey effort was concentrated in the towns constituting the pinnacle of Kenya's industrial base and those around the production areas. These included Nairobi, Mombasa and Nakuru 1.2 Methodology The design of the survey followed a sub-sector approach and the technique employed involved conducting unstructured and informal interviews in addition to directly observing the critical stages in the production-transformation line wherever possible. Also, sound secondary data sources were relied upon whenever possible. Prior to the interviews contact with the respective business associations was established and a list of potential firms compiled. Through these preliminary visits, the objectives of the survey and its expected outcome were explained and appointments booked for the primary visits that were to follow. A deliberate attempt was made to contact key informants in each of the categories. Thus the sample was purposively selected to include respondents from each of the relevant categories identified during the literature review as potential raw material users. Rather than concentrating on numbers, the focus was placed on contacting key firms in the industry in order to obtain a more representative sample. For each industry to be visited, questions (guidelines) focusing on key production and marketing activities were developed. The semi-structured informal interview guidelines were not written up in the form of a formal questionnaire but they were drawn up as checklists of key issues and topics. Once the survey team was familiarised with the detailed questions of the
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original checklist (approx. 7 pages), a shorter version of the latter (i.e. 1 – 2 pages max.) was found useful to stimulate a free-flowing discussion with members of the industries. Researchers formed two different groups comprising of at least two a technologist and an economist. This combination was found to be very useful both for the research team and the industries visited. It made it possible to understand the relationship between technology and economics and also recent technological developments in the various concerned areas. A report about each industrial visit made was compiled after the interview, relying on the checklist to make sure that no issue had been overlooked. It was important that note-taking should not inhibit a free flow of discussion. This effort to keep the interviews informal seemed to encourage frankness on the part of the respondents. For far away firms, where bookings could not be made by telephone due to various reasons, visits were nevertheless made. This form of “cold-calling” was generally accepted, and useful data was obtained. However, there is a danger that without prior appointment key individuals might be missed. In this case, another visit was obligatory. Responses from each interview were carefully compared with the responses from other interviews carried out with firms in the same category. This approach was conducted through meetings of the entire research team, which were designed to: • • • • • Ensure that all the collected data had been summarised. Identify gaps in the existing information. Start forming hypotheses about constraints and opportunities within the marketing system. Assess the progress of the survey. And design a follow-up of the fieldwork where necessary.
The researchers also used the team meetings to refine their understanding of the roles, responsibilities and links within the production and manufacturing business.
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2.0 INDUSTRIAL DEVELOPMENT IN KENYA Agriculture dominates the economies of sub-Saharan Africa, where it accounts for 70% of total employment and 40% of the total merchandise exports. In this region the contribution of agriculture to GDP is 32%. Agriculture is the mainstay of Kenya’s economy, accounting for 26 percent of the gross domestic product (GDP) while manufacturing accounts for about 14 percent. Tea, tourism, coffee, and horticulture in that order are the main foreign- exchange earners (CBS, 1998). In Kenya one to two thirds of manufacturing value added is based on agricultural raw materials ( Jaffee, 1995). Many services are linked to agriculture. Food processing, beverage and tobacco industries are among those dependent on agricultural raw materials. Of the industries mentioned, the food processing industry is the single largest component of the manufacturing sector of most African countries. Since independence in 1963, the country has had mixed performance. In the first 10 years of independence, the country enjoyed high GDP growth rates averaging 6.5 percent per annum, low inflation, high job creation, and a relatively stable balance-of- payments position. During the 1973-1980 period the country’s record growth was by three major shocks. The first was the sharp rise in oil prices in 1973, which created considerable internal and external economic imbalance. In 1997-78, the price of coffee and tea rose significantly, which immediately improved the balance of payments position but subsequently created internal economic imbalances. The third shock was in the GDP of 5.2 percent per annum, reflecting a moderate reduction in the high growth rates achieved in the first 10 years of independence. In 1990, growth in the GDP fell to 4.3 percent and 1991 to 2.2 percent; by 1992, it was just 0.4 percent per annum. In 1993, the government introduced more and far-reaching structural reforms, including removal of price controls, removal of all import licensing, and removal of foreign exchange controls. These growth slowed to 4.8 percent in 1996 and declined substantially to 1.2 percent in 1997 (CBS, 1998). The food industry may be classified into formal and informal sector. The formal sector is classified into large, medium and small scale industries. The criterion for classification is based on the number of employees. Large-scale industrial units have above 50 employees; small-scale industrial units have below 20 while the medium scale industrial units have between 20 and 50 employees. A summary of some of the food industries is given in Table 2 below. On the other hand the informal sector consists of the cottage industry, family and the sole proprietor. After independence and up through the mid-1980’s the policies and direct investments of the Kenyan government favoured relatively large-scale industrial units in the food industry and elsewhere. Most of these large scale units were owned by multinationals and some by farmer co-operatives. After the mid 80’s the small scale to medium scale industrial units began to mushroom. This is mainly due to the high overheads incurred when running large scale industries. The food for export is processed mainly by the large-scale units while that for local consumption is produced by the medium to small scale industries. The informal sector has proved vital in supplying processed and ready to eat foods to domestic consumers particularly in towns.
The essence of food processing is to produce a high value food product. Processing begins with the articulation of consumer demand and leads to decisions to produce. This continues through
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the series of activities which produce and subsequently transform the crop or animal product in form, time and place to match consumer demand (Breimer, 1976). In Kenya the best established industry is the dairy industry. This transforms raw milk to pasteurised milk, dry skim milk, butter, cheese e.t.c. Which fetch a higher price. This industry is dominated by the private sector. The development of the commercial dairy production and trade can be divided into five historical stages as listed below. ? The origins of export oriented butter production (1900-1930’s) ? Discovering the domestic milk market (WW II- mid 1950’s) ? Dualistic development (late 1950’s to 1970) ? Market consolidation and the “publicization” of the private sector (1971- early 1980’s) ? High cost expansion and creeping liberalisation (mid-1980’s to present) Most of the foods processed in Kenya can be historically classified in the same manner except the first two stages.
Table 1. Classification of some the Food processing
TYPE OF INDUSTRY I) FOOD MANUFACTURING Slaughtering, preparing and preserving meat Manufacture of dairy products Canning and preserving fruits and vegetables Canning, preserving and processing of fish Manufacture of vegetable and animal oils and fats Grain mill products Manufacture of bakery products Manufacture of cocoa, chocolate and sugar confectioneries Manufacture of food products (N. E. C). Sugar factories and refineries Manufacture of prepared animal feeds II) BEVERAGE INDUSTRIES Distilling, rectifying and blending spirits Malt, liquors and malt Soft drinks and carbonated waters industries TOTAL NUMBER OF INDUSTIRES, GROUPED ACCORDING TO SIZE SMALL MEDIUM LARGE 6 3 11 4 10 14 7 1 12 17 8 1 42 15 4 17 2 4 11 3 1 73 7 25 52 1 5 21 9 2
2 2 3 239
3 1 6 102
1 4 5 66
Much of the new agribusiness investment over the past decade by foreign companies has been made by firms, which had already been established for a long time. Investments have been geared toward diversifying product lines away form commodities facing adverse market trends. Kenya has witnessed the diversification of foreign owned tea, coffee and sisal companies into horticultural production and trade (Jaffee, 1995).
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Gender in the food industry. Most of the large scale to medium scale units are run by the men. In Kenya, the women take charge only of the micro enterprise and the informal sector in food marketing and processing. Several Kenya’s small peri-urban firms including dairy processing are owned and/or managed by women including one that is considered to be the most dynamic single owned dairy company. The Table 2 below shows the ownership of micro enterprises in Kenya by gender. It is clear from the table that men dominate in the ownership of the food industry in Kenya. It is also evident that partnerships between men and women is not common.
Table 2. Ownership of micro-enterprises in Kenya by gender Gender of proprietor % Female Male Mixed Kenya 43 53 4
3.0 CASSAVA PRODUCTION Cassava is classified under roots and tubers, which is the class of foods that basically provide energy in the human diet in the form of carbohydrates. The term roots and tubers refer to any growing plant that stores edible material in the subterranean root, corm or tuber (FAO, 1990). The cassava is important historically for acting as a food security crop for various communities during tribal warfare and innovations where it was hidden under ground and for saving the Rwanda-Burundi kingdoms in 1943 when potato blight destroyed all their production. It also fed the Biafrans during the Biafran war in Nigeria in 1966-69.The spread of the cassava was facilitated by its ability to thrive poor husbandry and to tolerate drought. It originated in tropical America and was introduced in Kenya by the Portuguese and Arab traders (Jones, 1959). In Kenya as in the rest of Africa, the cassava is usually a subsistence crop grown mainly as food and only the surplus is sold. Cassava is consumed as a basic source of low cost calories or as a supplement to cereals. The proximate composition of the cassava is shown in Table 1 below. This table shows clearly that the crop is a rich source of carbohydrate. It has been documented that the cost of cassava is about 25 to 50 percent that of the locally produced traditional grains and pulses (Goering, 1979).
Food energy kJ 565 Moisture con-tent % 65.5 Protein g Fat G Table 1. Nutritive value of the cassava Total Fiber Ash P Fe K CHO (g) (g) (mg) (mg) (mg) and fiber 32.4 1.0 0.9 32 0.9 394 Source: FAO, 1972. Na (Mg) Thiamine (mg) 0.05 Riboflavin (mg) 0.04 Niacin (mg) 0.6 Ascorbic acid (mg) 34 Folic acid (ìg) 24.2
1.0
0.2
2
Cassava (Manihot esculanta crantz) is one of the major staple foods in Sub-Saharan Africa. It is estimated that Africa produces above 42% of the total tropical world production of the crop
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(FAO, 1978). Cassava is grown virtually throughout Kenya. However, the Western, Coastal and semi-arid (Eastern) regions of Kenya have the highest production in that order. Traditional utilisation in Kenya is limited to roasting and boiling of fresh roots for consumption in all the growing areas (Khaemba, 1983). In Nyanza and Western provinces of Kenya, roots are also peeled, Chopped into small pieces, dried and milled into flour for ugali. This is normally in combination with a cereal (maize or sorghum). In the Coast province cassava leaves are used as vegetable (Khaemba, 1983). In the Coast province cassava leaves are used as vegetable (Khaemba, 1983) while in Machakos and Kitui, cassava roots are used as a snack. The bulk of cassava produced in the country is used for human consumption and surpluses are processed in to starch or used for animal feed. However, the present production is adequate for both the demands of starch production and as a food source (Khagram,1983). The market for fresh cassava as a food is more lucrative than for starch extraction but the market for fresh cassava is limited (Karisa, 1983 ). Fresh cassava has a very short post-harvest storage life, and it must be used or processed into durable forms soon after harvest (Ayernor, 1981). Except for cassava crips, there is no commercial processing of cassava for human consumption. Other products such as deep-fried and sun dried cassava are produced but at a very small scale in the coastal areas. The cassava production in Kenya unfortunately seems to reduce with time as shown by Figure 1 below. This may be because of the high opportunity cost of production.
Figure 1. Production of Cassava over the years 1996 to1998
23% 43% 1996 1997 1998
34%
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Based on the data obtained from the Ministry of Agriculture, Nyanza province produces most of the cassava consumed in the country. This may be because of the cultural acceptability of the crop by the population living in the area. The communities living in this area utilise the crop for various traditional dishes. Central province on the other hand produces the least mainly because in the communities living in the area consider it a non-prestigious crop. The little produced in this area is used as cattle feed.
F IG U R E 1 . P r o d u t i o n o f c a s s a v a in Kenya
R IFTVALLEY NYANZA EASTERN COAST CENTRAL
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4.0 CASSAVA MARKETING In Kenya, cassava is marketed mainly as a fresh root. The marketing of the roots is through village markets situated at the areas of production. Some of it is transported to larger markets situated in the district towns. Processed cassava products are also sold at the markets centres and at residential areas. These processed products include sundried cassava crisps and deep fried cassava. The two latter products are mainly sold in the coastal region. The price of fresh cassava fluctuates depending on the season. In Nairobi for example the price is highest in May and lowest in June. In the market areas the cassava is marketed as heaps or in bags. There is need to standardise the quantity sold.
5.0 CASSAVA UTILISATION Fresh cassava has a very short post-harvest storage life, and it must be used or processed into durable forms soon after harvest (Ayernor,1981). Various communities in the region have found different methods of cassava. The main reason for processing other than making the food palatable is to remove the antinutrients in the cassava especially the cyanide. 5.1 CASSAVA CONSUMPTION IN KENYA
5.1.1 INTRODUCTION
Traditional cassava utilisation in Kenya is limited to roasting and boiling of fresh roots for consumption in all the growing areas (Khaemba, 1983). In Nyanza and Western provinces of Kenya, roots are also peeled, chopped in to small pieces, dried and milled in to flour for ugali. This is normally in combination with are a cereal (maize, sorghum or millet). In the coast province cassava leaves are used as vegetable (Khaemba, 1983) while in Machakos and Kitui, cassava roots are used as snack. The bulk of cassava produced in the country is used for human consumption and surpluses are processed in to starch or used for animal feed. Except for cassava crisps, there is no commercial processing of cassava for human consumption. This could be explored to make it more acceptable to a larger section of the population thereby increasing the demand for cassava products and the income of the farmer. The following discussion focuses in the preparation of different cassava based food by 7 communities in Kenya.
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Ì Embu tribe of eastern province ? Mucui Cassava roots, yams, potatoes and arrowroots are peeled, washed with a lot of water, sliced in to small pieces and mixed with meat. The mixture is fried in oil with onion to taste. Water is added and the mixture is left to boil until cooked. Mucui is served and eaten as a complete meal. ? Roasted cassava Whole cassava roots are peeled, washed, either split in to smaller pieces or left intact as dictated by size, placed on burning embers and left to cook. Once done, the charred bits are scrapped off and the roasted cassava is served with tea. Ì Kamba tribe of eastern province. ? Mukimwa Cassava roots are peeled, washed, sliced in to small pieces (chips) and mixed with green maize, par-boiled beans, par-boiled cowpeas or par-boiled green grams. The mixture is fried in oil with onions. Water is added and left to boil until cooked. After adding salt Mukimwa is served as a complete meal ? Mulikyo Cassava roots are peeled, washed, sliced in to 2 or 3 big slices and placed in a cooking pot. Water is added and left to boil until cooked. It is served with tea or milk for breakfast. ? Raw cassava This is prepared by peeling, washing and slicing cassava roots in to 4 or more slices. The pieces are spiced with a mixture of salt and ground chilli and eaten as a snack. Ì Luo tribe of the Nyanza province ? Ugali or kuon Fresh cassava roots are peeled, washed and sliced into chips, which are then sun dried for a period of 1-to2 weeks. The sun-dried chips are then mixed with dried maize, sorghum, or finger millet at the ratio of 2:1 and the mixture is milled into fine flour. The flour is put in boiling water and stirred into a semi-solid porridge called ugali or kuon, which is then served with either, smoked fish, smoked meat or okra soup. ? Busaa (a local beer) Cassava roots are peeled, washed and sliced into chips, placed and stored in a tightly closed darkroom. The cassava is removed from the sack after 1 week and sun dried for a period of 14 days. The dried cassava is then mixed with dry maize and pre-germinated finger millet that has been sun dried for 2 weeks. The mixture is milled in to flour and prepared in to ugali or kuon. The ugali is broken into small pieces, which are then sun-dried for 3 weeks then milled into
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flour. The flour is placed in a big earthen pot where 40 litres of water is added, stirred and boiled to produce a light porridge or gruel called Busaa. After cooling, the Busaa is ready for drinking. It has been locally nicknamed two in one; it is a beer as well as a food. ? Mariwa Cassava roots are peeled, washed, split into 2 pieces with the central pith removed and placed in a pot with 1 litre of water (strictly 1 litre to prevent the cassava from absorbing water and becoming watery). Salt is added and the pot is covered with either pumpkin or banana leaves on top of which a metal lid is placed and sealed with cow dung to become airtight. It is left to boil for 30 min after which it should be properly cooked. Mariwa is served with sour milk or milk for either lunch or supper or with tea for breakfast. 3.4 kuogo cassava roots are peeled, washed, placed in a sack or large baskets and stored in a dark cold room for a week. During storage, the cassava roots develop moulds and become soft. The roots are removed from the sacks and crushed in to small pieces, spread and sun dried for a period of 7 to 14 days. The dried roots are mixed with either millet, sorghum or maize and milled in to fine flour which is added in to boiling water, stirred and prepared into either light porridge (nyuka) or thick porridge (ugali). The ugali is served with fish, green vegetables or any stew. ? Chapati The flour obtained in the preparation of kuoga is mixed with wheat flour and kneaded into dough. Small balls of the dough are spread into thin disks, which are then pan fried to produce chapatti. Chapatti is served with tea for breakfast or with fish or any stew for lunch or supper. ? Ugali This dish is prepared for someone going on a long journey. Cassava roots are peeled, washed, sliced into small pieces and dried for 7 to 14 days. The dried pieces are mixed with finger millet at the ratio of 4:1 and milled into fine flour. The flour is added in to boiling water, stirred and prepared into either light porridge (nyuka) or thick porridge (ugali). The ugali may be served with fish, green vegetables or any stew. Ì Baluhya tribe of western province. ? Ugali or Obusuma Cassava roots are peeled, washed and sun dried for about 6 hours to get rid of excess moisture. The semi-dried roots are heaped in a corner of the kitchen and covered with a sack, a piece of cloth or canvas for a period of 3 to 5 days. The mould formed during this period is scrapped off with a blunt knife and the soft roots are put on a clean floor and crushed with stone in to big soft pieces. The soft pieces are sun dried for a period of 12 to 14 hours. The dried roots are mixed with sorghum, millet, or maize and milled in to flour. Alternatively the dried roots may be milled into flour without any cereal. The cassava: millet or sorghum ratio is usually 4:1 and cassava: maize ratio is 2:1. A cassava: maize mixture is not popular. The flour is added to boiling water and stirred until it cooks into either ugali (thick porridge) or uji (light porridge). The uji is a beverage while the ugali is served with fish, meat or any green vegetable.
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? Boiled cassava Cassava roots are peeled, washed, chopped into small pieces, placed in a pot with boiling water and boiled soft or completely cooked. Salt is added during boiling and the dish is served with tea or light porridge. ? Roasted cassava Unpeeled cassava roots are placed on glowing embers until cooked. The roots are peeled and served with a beverage. ? Infant light porridge Cassava roots are peeled, washed, sliced into very small pieces and sun dried for 12 to14 hours. The dried pieces are ground using stone grinders into very fine flour, which is added into boiling water and cooked into a light porridge. The porridge is then served to young babies. Ì Maasai tribe of the Rift Valley province ? Boiled cassava Cassava roots are peeled, washed, chopped into big pieces and boiled with water until cooked. The dish is served with tea or milk. ? Raw cassava Raw cassava is prepared by peeling, washing and slicing cassava roots. The pieces are then eaten as a snack in the field. ? Roasted cassava The cassava roots are peeled, placed on glowing charcoal and roasted until cooked. The cassava is served with tea or milk for breakfast.
Ì Kikuyu tribe of the central province ? Stewed cassava Stewed cassava dish is prepared from sweet cassava or low cyanide containing varieties. Cassava roots are peeled, split, sliced into small chips and boiled in water until soft or cooked. The cassava is fried with onion in oil after which water is added and the dish is served with any stew. ? Ugali and Ucuru Cassava is peeled, split, central pith is removed, sliced into small pieces and sun dried for a period of 3 to 7days. The chips are milled in to flour, added into boiling water and stirred to produce either a thick porridge (ngima) or a light porridge (ucuru). Ngima is served with stew while ucuru, a beverage, is served alone.
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? Cassava bread Cassava is peeled, split, the centre pith is removed, sliced into small chips and sun dried for a period of 3 to 7 days. The cassava chips are milled in to flour mixed with wheat flour and kneaded into dough from which bread is baked. The bread is served with tea for breakfast or with any stew for dinner. ? Roasted cassava Cassava is peeled, boiled and roasted on charcoal. Alternatively, the cassava is not peeled but placed on burning charcoal and roasted until properly cooked. The charred bits are scrapped off and the cassava is served with tea, milk, any stew or alone. Ì Coastal people of the coast province ? Mashed cassava with milk Cassava is peeled, washed and cut into small pieces. The pieces are boiled with onions in salted water until done and then mashed together. Milk is added and dish is served. ? Cassava meat stew The meat is washed, cut into small pieces and mixed with curry powder. Onions and tomatoes are cleaned and sliced. Meat is fried with onions until a golden brown colour is obtained. Salt and water are added to the stew. Cassava is peeled, washed, cut into small pieces and added to the meat stew. The mixture is cooked for 30 to 45 min until soft. Tomatoes slices are added 5 min before serving. ? Cassava-bean stew (kimanga) In preparing cassava bean stew one may use cowpeas or grams instead of beans. Beans are cleaned, washed and soaked overnight. Cassava roots are peeled and cut into slices. The beans and cassava slices are boiled together until soft and mashed. Onions and tomatoes are also cleaned, sliced and fried in oil. Salt, pepper and milk are added and the mixture is cooked for a few minutes, seasoned to taste and served. ? Cassava-fish stew Cassava roots are peeled, cut into slices and cooked for 20 min. Fish is cleaned and washed as well as onions and tomatoes, which are sliced. Cups of thick and thin coconut milk are prepared. The fish is put on top of the cassava slices and onions, pepper, tomatoes and coconut milk are added. The mixture is cooked until the fish and the cassava is done. Thick coconut cream is added and ladled over the fish. Season to taste and serve. A similar dish involves frying the fish with onions and tomatoes in a little oil. These are put on top of the boiling cassava and groundnut flour is added instead of the coconut milk. The juice of one lemon is also added. Dried fish could be used instead of fresh fish.
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? Cassava leaves Cassava leaves are washed, pounded and boiled in salted water for 60 min. Onions and tomatoes are cleaned, sliced and fried in oil. Curry powder, coconut cream and the cassava leaves are added. The dish is ready to be served with any carbohydrate. ? Cassava pudding Grated cassava roots are mixed with grated coconut and sugar. A banana leaf is cut in to two big pieces and softened over fire. Half of the cassava mixture is put on one piece of the banana leaf, folded and tied. The other package is prepared in a similar manner. Both packages are put in a greased tin or a small pan and baked in a moderately hot oven until brown. The cassava pudding could either be served hot or cold. A variation in a similar dish involves steaming the pudding instead of baking and groundnut flour could replace the coconut cream ? Fried cassava Cassava roots are split into 5-6 pieces and deep-fried in oil. The cooked cassava pieces are spiced with salt, pepper and lime or lemon to required taste. The dish is served and eaten as a complement to another meal or as a snack. 5.2 CASSAVA UTILIZATION IN UGANDA
5.2.1 INTRODUCTION
Cassava is a very important food especially to the low income group of people in Uganda. The traditional methods of processing cassava are boiling, baking, frying, sun drying, and either hand grinding or milling. Cassava can also be prepared mixed with broad beans, peas and sometimes meat. Composite flour is also produced usually consisting of cassava flour mixed with millet, sorghum or maize (corn). The main method of processing cassava is boiling. However, composite flour consumption is also significant and is the major method of cassava preservation. 5.2.2 Preparation of cassava products v Boiled cassava (‘mogo’ ‘otedo’ muwogo’) Fresh cassava roots are peeled, washed and boiled in water for 20-40 min until cooked. Mostly urban people may add spices, whereas the village inhabitants added salt to the cooking cassava. Some other foods like groundnuts stew, simsim paste, broad beans peas and, at times, meat were added to the cooking cassava and the mixture was called Aputta in Lira and Apach, whilst in Iganga it is called katogo. v Cassava paste (‘kwonmogo’ ‘chawda’) The cassava roots are peeled, sliced and then dried in the sun on mats, flat rocks, or specially prepared ground smeared with cow dung to reduce dust and dirt. The drying takes about 3-4 days, and the dried chips are then stored in old tins, baskets or granaries. When the paste is
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required, the chips are pounded then ground into flour, and added to boiling water with mixing until a consistent paste is obtained. v Cassava flour mixed with millet and sorghum (‘kwon kal’ kwonbel’ ‘obuita’ ‘mutama’) Cassava flour was mixed with either millet or sorghum and then a paste was prepared as in pure cassava paste. One part of sorghum was added to 2 parts of cassava and ground into flour, the resulting paste was called mutama. Millet was mixed with cassava and ground into flour; the resulting paste was called obuita. When one part of cassava is mixed with 4 parts of millet, the resulting is called kwon kal, whilst one part of sorghum added to 2 parts of cassava results to kwon bel. Some districts fermented cassava (obtained by slicing fresh cassava into chips and leaving them covered in a cool place for a day or 2 until the chips are slightly mouldy) for this use in which case the amount of cassava was reduced, and some people preferred this because of the flavour it imparted to the resultant paste. v Roasted cassava (‘mogo obulo’ ‘muwogo mwokye’) Cassava roots were placed in hot ashes or charcoal for 20-30 min. Roasted cassava was popular among school pupils who used it as a snack in school. v Fried cassava (‘mogo ocelo’ ‘muwogo musike’) Fresh cassava roots were peeled, washed, cut into small pieces and then deep-fried in oil. 5.3 FOOD TYPES PREPARED FROM CASSAVA IN THE SIX COSCA STUDY COUNTRIES.
5.3.1 COOKED FRESH ROOTS v Roasted cassava
The simplest way of preparing fresh cassava roots is roasting whole roots of sweet cassava varieties in the coals of burnt down fires. The burnt peel is scrapped off when the root is cooked and the white steamed inner part of the roots is eaten alone or with palm oil or stew. The taste of roasted cassava is influenced by the length of time the roots remain in the ground before harvesting, and the variety of sweet cassava used . v Boiled cassava The roots from low cyanide varieties may be boiled fresh after peeling, washing and cutting into small pieces. The pieces are usually submerged in boiling. Boiling in large quantities of water reduces or eliminates the small quantity of cyanide, which is also present in the fresh roots of sweet varieties. Boiled cassava is eaten with stews or vegetable soups. v Soaked boiled cassava Another variation of boiled cassava that is mainly a storage technique, is the ‘wet abacha’ found in eastern Nigeria. After the cassava has been boiled, the water is poured off and the boiled
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pieces are covered in cold water and kept in a cool place. Abacha is eaten as a part of the main meal. By changing the water everyday, the boiled cassava can be stored for 2-3 days before fermentation begins.
5.3.2 CASSAVA FLOURS
v Unfermented cassava flours The roots are peeled and cut into small chips immediately after the harvest and spread in the sun for drying. In dryer climates, like in northern part of Ghana, the chips may sundry in only a few hours. During the rainy season the chips are dried over the fireplace in the house. Roots or cuttings dried in the smoke need to be cleaned and scraped before milling in order to obtain nice white flour. The traditional methods for milling are pounding in a mortar or grinding on a grinding stone. v Fermented flours The fermentation of cassava before it is dried and milled is common where bitter cassava varieties are more important than the sweet varieties. Whole cassava roots are submerged in water from 3 to 5 days depending on the taste desired and the taste and the weather. A longer fermentation produces a sour tasting flour, which is preferred in some regions. Fermentation is also faster in hotter climates…the colour of the flour depends on the time used for sun drying. If the drying is not finished the same day, the product may start to ferment again or get mouldy. To shorten the drying time the fermented roots may be put in bags or baskets and pressed with stones or a screw press to remove excess water. In east Africa, fermentation is sometimes done in heaps without adding water.
5.3.3 GRANULATED CASSAVA
Roasted or gelatinised granules (gari) Gari is prepared by fermenting grated fresh cassava in sacks, squeezing out the excess water, and then frying the semi-dry granules in a minimum amount of oil to prevent sticking until a gelatinised crust forms. Yellow gari results from using palm oil to fry the raw grated chips. The longer the period of fermentation the more sour the taste of gari. Grating is either done manually or mechanically, with diesel-powered rotating grating machine. Grated wet cassava is then bagged or put in baskets and pressed to remove excess water in a variety of ways: from stones on wooden frames to hydraulic presses. Frying is usually done in large round earthen pots or iron pans. The end product can be stored up to three months in plastic bags or other containers. Gari can then be reconstituted with hot water and stirred to form a thick paste and eaten with soups and stews; it can also be mixed with cold water/milk and sugar and drunk as a snack.
5.3.4 COOKED GRANULES
Steamed fermented granules (atieke).
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Atieke are cassava granules, which are steamed after they have been mashed, fermented, dewatered granulated and semi-dried in the sun. Four different methods exist for the production of starter cultures used for the fermentation of the cassava roots: boiling, roasting or cutting fresh roots which are fermented for three days; a forth method uses a filtrate from cassava which has been boiled, pounded and squeezed. These starter cultures are added to fresh cassava during the mashing and influence the taste and the quality of the end product. After fermentation and dewatering, the mash is pressed and rolled to produce a uniform granule, sieving or winnowing may further improve it. In Cote d’ Ivore, atieka is eaten directly after steaming with stews and soups. The Hausa in Nigeria use pressed, sieved and fermented cassava granules mixed with onions, tomatoes and spices, to form cakes, which are then deepfried in oil. These cakes are called kwosai and are eaten as a full meal or as a snack between meals.
5.3.5 FERMENTED PASTES
Boiled fermented pastes The most common characteristic of this is the white colour and smooth texture of the boiled cassava pastes. Essential steps in preparation include, peeling, washing, (grating or cutting into finger-like pieces) fermenting in water, mashing and squeezing through a fine cloth or sieve. This raw paste is then boiled in water or steamed in wrapped leaves. The normal fermentation period is from 1 to 3 days, however in Ghana, the grated cassava is fermented for 7 days. Longer periods of fermentation result in a more sour taste, which is preferred by some consumers. After dewatering the fermented cassava is pounded into a fine paste, which is filtered through a cloth. The filtrate is settled and boiled in water and eaten with stews and soups. The sediment may be stored up to 8 days, depending on how long the cassava was fermented. The longer fermentation is positively related to longer storage ability.
5.3.6 SEDIMENTED STARCHES
v Tapioca
Cassava starch is made by peeling and grating fresh roots and stirring them in water in order to separate the fibre from the starch. The particles are allowed to settle on the bottom of the container, where it forms a white muddy cake. The water is then carefully skimmed off, and the cake is removed and further dried in the sun. The semi-dried starch may be roasted in iron pads until is completely dry to form tapioca. These granules are about 1 cm in diameter and can be eaten as a snack, or boiled as porridge. Alternatively the sun dried starch cakes can be pounded or milled into fine flour, which is used as a thickener in soups and stews.
v Laundry starch
Where cassava is being processed into gari on a large scale the water, which is pressed out during fermentation, is collected in large basins and allowed to settle. The starch so formed is not considered clean enough to eat and is used as laundry starch.
5.3.7 DRINKS WITH CASSAVA COMPONENTS
Cassava is used as a substitute for maize and other grains in the preparation of local brews. Cassava is also mixed with cereals to stretch out supplies and still arrive at a product, which
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resembles the original cereal based beer. Consumers generally give priority to high alcohol content ever taste. The type of yeast used influences the quality of the end product, especially in the brewing of local beer. The taste of distilled drinks is less affected by raw materials and therefore the proportion of cassava used can be high. Many different cassava products can be used, and even the lowest quality products still ferment to alcohol, such as flours, which are not properly dried or have become off-coloured.
5.3.8 NON-CONVENTIONAL FOODS
Product development especially in the line of production of me too products have been engaged in order to facilitate the utilization of the cassava by creating more outlets. Some of the nonconventional foods prepared from cassava include balanced foods, vegetable cheese processing, fortified sago and starch products, noodles and Vermicelli, nutritious food mixes, gold finger, cassava Rava, putto, Biscuits and cakes.
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6.0 Starch. Starch exists as the major reserve carbohydrate of higher plants, where it is generally deposited in the form of minute granules or cells ranging from 1 up to 100 µ m or more in diameter. Chemically, it is a polymer of glucose units joined by ? linkages. The ? linkages, being less stable compared to ß linkages of cellulose render the starch relatively liable. Starch exists as two polymers namely Amylase and Amyl pectin. Both polymers are made up of ?-D-glucopyranose units, the major component – amylopectin- has a branched structure while amylose, the minor component, has a linear structure. Most of the world’s starch supplies are derived either from grains (corn, sorghum, wheat, rice), the major root crops (potato, sweet potato, cassava, arrow root), or the pith of the sago palm. Since time in memorial various communities using traditional methods have produced starch. The development was based on the observation that a white insoluble granular material settled to the bottom when quantities of cut tubers were washed. A classical example is seen in the extraction of starch to prepare pot bammie by the Jamaicans. The steps taken in the production of pot bammie include: grating the cassava and mixing this with water, straining the pulp through a towel, allowing the mixture to settle, decanting the water, sun drying the starch and finally baking it (FAO, 1990). 6.1 Production of starch Starch was separated from other grains and from root vegetables such as potatoes long before corn was used as a raw material (Matz, 1970). John Biddies set up the first starch factory in the United States at Hillsborough, NH in 1802. He used potatoes. In 1842, Thomas Kingsford founded the cornstarch refining industry. He was the first person to extract starch from maize on a commercial basis.
6.1.1 Cassava starch.
There are many sources of starch and for the cassava starch to obtain a profitable and sustainable market share it must compete with other starches in terms of relative prices, quality and dependability of supply (Goering, 1979). It is therefore important to study its properties so as to market it appropriately. Its bland flavour, low amylose content, nonretrogradation tendency and excellent freeze-thaw stability makes it suitable for use in food processing (FAO.1990). When used as an adhesive it produces joints with high tensile strength and is hence preferred to starch (Balagopalan et al., 1988).
6.1.2 Cornstarch
The process initially used to extract starch on a commercial basis can be summarized as follows. The corn was placed in wooden, flat-bottomed tank covered with warm water and allowed to stand. After the corn was sufficiently softened it was ground in stone mills, sieved and washed on silkscreen shakers powered by reciprocating engines. The slurry that was washed through the sieves was poured in wooden tubs, treated with caustic soda and allowed to settle. After settling, the water was sent to the sewer, taking all the gluten
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and soluble materials with it. This settling process was repeated three times for each batch. The starch recovery could not have been more than 50% of the total starch available. Morden efficient corn refining plants, which do not empty other valuable products down the drain, are today in use. These in addition have laboratory facilities. In these refining plants the wet- milling process is used. The flow diagram of the wet milling process may be summarized as shown on Figure 3 below.
Cleaning operations. These involve passing the corn past powerful magnets, which remove metallic objects, which may have been introduced by previous handling. The cleaned corn is weighed on screen hoppers and sampled for quality. After sampling the corn is then cleaned by passing it over perforated screens. The upper screen has holes just large enough to let corn and smaller particles through and the lower screen holds back the corn, but lets cobs, sticks and stones through. High pressure is then used to separate the corn from other debris by density in cyclones. Steeping. The cleaned kernels are transferred to “steep” tanks and soaked for 36 to 48 hrs at about 120o to 130 oF. The water used contains some sulfur dioxide, which prevents germination and keeps down unwanted fermentation and other undesirable microbiological changes but permits growth of lactic acid producing bacteria. So as to minimize the cost of production due to water used and to prevent pollution and wastage of raw materials, steeping is carried out in counter current flow. The in coming water passes over the corn, which has been steeped the longest, ensuring removal of the maximum amount of soluble material. The steep water is then concentrated to 54% dry matter. Degermination After the steeping process the corn is now ready for the first milling operation degermination. De-germination, separates the oil rich germ from the starch, gluten, hulls, and fiber. The soft corn is then ground in attrition mills. The slurry from the mills, which consists of endosperm, germ, and fiber, is diluted with a carefully controlled amount of process water. This is then fed to a battery of hydrocyclones. The germ being lighter spins off the top, and the heavier endosperm and fiber flow out the bottom. The germ is then washed free of starch, dewatered and dried. Separation of hulls and fiber from starch and gluten. The wet mash of fiber, hulls, gluten and starch, which remains on the reels and shakers, is fed to mills, which grind the materials to a very small particle size. The reduction in size is differential due to the nature of the materials. The hulls and the fibers are not reduced in size as much as the starch and the gluten in the milling process. The fiber and hull is then separated from starch and gluten by screening over a series of D.S.M (Dutch Slate Mines) screens. Gluten-starch separation.
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Starch and gluten are separated using gravitational methods. Centrifugation is used in the separation process and the two products flow out of the centrifuge in two streams. Starch and gluten streams. The starch stream contains about 1 to 2 % protein and is purified to contain less than 0.3 % protein by passing it through many small hydrocyclones. In addition the starch is washed to remove the last traces of solubles The wet starch is dewatered on rotary vacuum filters, moving belt filters or basket centrifuges. The final drying takes place in tunnels (kiln) dryers, continuous belt hot air dryers, or in spray dryers The gluten after centrifugation is either separated by sedimentation in large tanks or more generally, is de-watered and de-starched in another centrifuge filtered and dried. It is then ready to be used as corn gluten meal or corn gluten feed, or processed to recover the protein, seen, which has many non feed uses (Matz, 1970).
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Cor
First
Storage
Steeping
Degerminatio
Germ separation
Grinding mill
Washing
Centrifugation
Surface Washing
Starch
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6.2 HISTORY OF STARCH PRODUCTION IN KENYA Tapioca starch factory CPC starch factory Starch importation data from KRA Starch exportation
data
from
KRA
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7.0 SURVEY FINDINGS ON CASSAVA STARCH 7.1 RESULTS AND DISCUSSION. Tapioca Limited Mombasa is the major cassava starch producer in the country. It currently produces ------ tones of cassava starch per year. In addition produces starchbased adhesives (SBA). The raw material – cassava roots is purchased locally from the neighboring coastal areas. The key manufacturers utilizing the cassava starch encountered in the survey are Goshrani printers, who utilize cassava based glue and Packaging Manufacturers (1976) Ltd. Mombasa who, utilize 1 tonne of cassava starch per month. The cassava starch is higher priced than the cornstarch in this country. The survey findings show that the cassava starch is sold at 40 Kenya shillings per kg, while cornstarch sells at 35 Kenya shillings per kg.
It is evident from the survey results tabulated on the Table 3 below that the price of the cassava starch is not the only constraint limiting it from reaching its utilization potential in Kenya. Other constraints include its high cost of production especially due to the large quantity of water required. This may be reduced by counter-current flow of water and other cost reducing measures.
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Table 3. The results of the survey findings on cassava starch. Organisation & Key contact Atta (Kenya) Limited P.O. Box 83272 Mwangeka Road, Mombasa Tel: 005-11-490864/5 Cellular: 005-72-410126 Fax: 005-2-490534 E-mail: [email protected] Contact person Rahim Lalji Marketing Manager Carlton Products Ltd. P.O.Box 78105, Nairobi. Tel: 02-55667. Contact: Raj Kutecha. Basic Information • • One of the major millers in Mombasa Main products include wheat and maize flour Relation to Cassava • Does not process cassava flour Current Situation • Only processes wheat and maize flour Next Steps • Firm thinks cassava flour cannot work in bread due to taste and quality General Remarks • Sensitise the public on the value of cassava This is a long term goal
? Producers of beverages and cooking aids
Carton Manufacturers Ltd. Mr Singh Tel: 540687 Visited by; Jagwe, Githaiti
The factory was established 25 years ago
? They do not use ? Corn starch is cassava starch used as carrier in cooking aids ? Starch is bought at CPC at KShs33/kg ? Requirement is approx. 1MT/month none The factory utilises 250 tonnes of maize starch per year and it is all purchased locally at a cost of Ksh 45 per Kg (factory del.)
? They need information on the potential use of cassava starch in their industry
? Workshop to train on uses of starch ? Could use starch if the application could be demonstrated
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Cartubox Industries EA Ltd. K.I.Estates Nakuru Tel: 037 215997 [email protected] Mr Njoroge Managing Director Visited by; Jagwe, Githaiti
They manufacture corrugated cartons, beehives and mineral water. The raw materials used to make the adhesive for the boxes are Starch, Caustic soda and Borax
Cassava starch was once used but it produced a yellowish product that was undesirable.
1 tonne of maize starch is utilised per year and it is purchased from CPC at a cost of Ksh.39 (ex.Factory)
A 1 Kg. sample could be availed
Cassava starch could be used if the issue of colour is rectified and if the cost is attractive
Centrofood Ltd P.O.Box 1068, Thika. Tel: 0151-21780. Fax: 015121982 Contacts: Mr. Mburu; Mr. Ndirangu Chandaria Industries Limited,
Baba Dogo Road, Ruaraka, P.O. box 30621 Nairobi. Tel: 802252/3/4/5 Contact person Mr. K.V. Bhatt, General ManagerProjects
? They produce juices and jams
? They have not used cassava starch
?
?
?
•
The firm was not using any cassava based products
•
It currently uses 100 tonnes of starch per year. It uses maize starch
•
Could explore possibility of replacing maize with cassava starch
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Continental Products Ltd. P.O. Box 13458, Nairobi. Tel: 02-530766. Fax: 02530712. Contact: Mr. Kariuki
? Producers of glue
? ?
They do not use starch They are willing to use cassava starch for the superior adhesive quality
? Users of corn starch ? Requires about 1-2 MT/month ? Purchase from CPC at KShs35/kg
? Could try cassava starch for its superior adhesive quality
? Need information on resourcing ? Potential users of 100 % starch
Corn Products Kenya Ltd. This is a multinational P.O. Box 1012 company with Eldoret sister companies all over the world. Tel: 0321 32511-6 Fax: 0321 33476 The following are the products Mrs Monica Ragui Customer Service Manager manufactured; -Maize starches (medical grade, natural grade) -Glucose Syrup Visited by; The following biJagwe, Githaiti products are also produced; -Animal feed ingredients -Maize germ for oil extraction -High protein meal The company imports starch - 49 -
It would be necessary to change the entire production line if cassava starch is to be produced. The decision to make cassava starch has to be made by the directors.
NB
Management does not favour the publication of any figures in terms of quantity or price of products manufactured
based glue and Cora gum from its sister companies in S. Africa • This is a big Dais Bakery (1996) Ltd bakery in Mombasa Arch Bishop Makarios Road P.O. Box 82802, Mombasa • It also Kenay manufactures Tel: 005-11-230494/5/6/7 biscuits E-mail: [email protected] m Contact person Kamal Shah, Director
•
•
•
•
•
In the past tried to use cassava flour due to shortages of wheat flour on the market However the percentage of fiber was too high and far above the recommended figure At the moment its no longer using cassava flour The product made of cassava was not of good quality It obtained the cassava from Tapioca
•
•
•
Currently using wheat flour in both bread and biscuits Using about 500 bags per day for bread and 100 bags per day for biscuits The main market is Mombasa and the surrounding areas
•
•
This bakery is currently faced with stiff competition from new firms coming into the market and is therefore willing to try cheaper alternatives Its hence willing to use the recommended percentage for cassava flour in bread
• • • •
•
Provide the correct information Provide the quality sample Test the product on the market This is one of the few firms in the bread industry that might provide a serious partner in product developing and market penetration It might be a good idea to work with a few firms in the bread industry so that others may follow
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East African Packaging Industries Ltd. Kitui Road, Off Kampala Road, P.O. Box 30146, Nairobi, Kenya Tel: 530176/7/8/9 531337/8/9 E-mail:
•
• •
[email protected]
Contact persons: William K. Gacheru, Factory manager Muchiri Tel: 005-733-734053 Mutua Tel: 005-72-725678 •
•
Its one of the major factories making corrugated boxes in the country It mostly sells into the local market It also exports boards to Uganda through its sister company PPL It accounts for about 25% of the starch used in paperboard industry On average it utilises about 30 to 35 tonnes of maize starch per month.
• •
• •
•
Has used cassava starch before Cassava starch was abandoned due to inconsistency in quality Cassava starch was being got from Tapioca in Mombasa However, had found cassava starch better than maize starch as it would give more mileage Therefore willing to shift back to cassava starch if reliable supplies can be assured
Currently using maize starch which is obtained from CPC in Eldoret The cost of maize • starch is 35 Kenya shillings per kg delivered to the factory • The firm produces about 1200 tonnes of paperboard per month. • Specification for maize starch is as follows: Moisture - 11.5 to 12.5% Appearance - white Starch content 87-88% Ash 0.25 - 0.35% Protein 0.5 - 0.7% pH 4-5 Shelf-life 12 months Packaging - 50 Kgs
•
•
Interested in using cassava starch • Would like to get technological data on use of cassava • Is not aware whether cassava flour can work and is therefore willing to try it out • Specification for cassava products were as follows: Appearance - white Starch content 86 - 87% Moisture content 12.5 13.5% Fibre content < 0.2% Protein < 0.1% pH 5.0 - 6.0 Shelf-life 12 months Packing 25 kg
•
Should get information on whether cassava flour can actually work Otherwise needs to get information where can obtain reliable supplies of cassava starch at a competitive price
Golden Biscuits (1985) Ltd. Mr Anthony Tel: Visited by; Jagwe, Githaiti Goshrani Printers Contact person Goshrani Henkel E.A. Ltd. Outer ring Rd. Ruaraka Nairobi
Probably the 3rd largest biscuit manufacturer in Kenya They make Ice cream cones too Major stationery factory in Mombasa
None
At the moment uses cassava based glue
Manufacture adhesives and cosmetics - 51 -
none
They are not willing -Cheaper imported biscuits to try out a sample due from S. Africa are causing to high risk of loss serious competition however they would like to taste a product where cassava has -60-70% of the been used as part of the ingredients wheat is imported Uses about 100 kg of Firm insists it uses very small quantities cassava based glue Glue obtained from Tapioca in Mombasa at a cost of 40 Kenya shillings per kg At present they use 2 Kg sample of The usage of any kind of 12 tonnes of maize cassava starch could starch beyond 4% as an starch per year and be availed for trials ingredient causes the -Utilises 2,000 tonnes of wheat flour p.a. at a cost of Ksh 33 per Kg (factory del.)
Andrew Okeyo Technical Director Visited by; Jagwe, Githaiti
Starch is used increasing viscosity and wet tag and it is mostly used in ice-water resistant adhesives 300 tonnes of adhesives are manufactured per year Probably the leading biscuit manufacturer in Kenya. The also make Weetabix, Pasta, Unimix and fambics
this constitutes 4% of the ingredients used in making adhesives. The maize starch is purchased from CPC
shortening of the shelf life of the adhesive.
House of Manji Likoni Rd. Ind. Area Nairobi Tel: 535064, 545827, 555944 Fax: 541694 [email protected] Mr. Francis Nyamboka Quality Assurance Manager Visited by; Jagwe, Githaiti Jambo Biscuits (Britania) 1987 Ltd Mr Shetty General Manager Tel: 540698, 556613
They utilize 8,000 tonnes of wheat flour per annum at a cost of Ksh.29.5 per Kg. (cif Nairobi) They also utilise 6,000 tonnes of maize flour per annum and about 2,000 tonnes of Soya flour while making Unimix
A sample of high quality cassava flour and cassava starch could be availed for trial.
Availability, cost, energy content and fibre content should be taken into consideration.
-Among the two largest biscuit manufacturers in the country
none
9,000-10,000 tonnes Management of wheat flour are expressed a desire to utilized per annum. carry out tests with high quality cassava Wheat is purchased flour and cassava locally and some starch
The management was very much concerned with the following aspects of cassava namely; shelf life, fineness, taste, texture, gluten content, moisture & protein content
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Fax: 545660 [email protected]
imported from S.Africa Some starch is used in the process of making biscuits to improve taste and texture. About 12 tonnes of maize starch is used per annum at a cost of Ksh.40-45 per Kg. It is usually purchased from CPC (K) Ltd. ? They use about ? They specialise ? They have not used cassava 1MT/Month in production of juice, sauces starch ? Use only etc modified starch from CPC at Ksh 36/Kg ? They also use dextrose monohydrate and liquid glucose ? The business is ? They do not use ? They purchase in bread cassava flour bakers flour making directly from millers ? They produce 10,000-200,000 loaves/day - 53 -
A sample should be availed
and the availability of cassava.
Visited by; Jagwe, Githaiti
Jetlack Foods K. Ltd. P.O. Box 46238 Nairobi. Tel: 0151-54387. Contact: Mr. Bid; Mr. Shroff
? They would like to try to use cassava starch in products
? Supply some starch samples for trial ? Quality and price must be reasonable
Kenafric Bakers Ltd. P.O.Box 42056, Nairobi. Tel: 0151-55467. Contact: Mr. Mukesh Shah.
? They are willing to try composite flour
? Try the composite flours ? Obtain samples of flour ? They are concerned about the keeping quality, pricing, and acceptability of cassava flour products.
Kenblest / Kifaru Textile
Ltd., P O Box 581 Thika Tel: 0151 21671–5 Fax: 0151 21752 Mr Jeje Mills Manager, Visited by; Jagwe, Githaiti
Mills They make fabrics none and garments but using 100% polyester. When synthetic fibres are used, starch cannot bind to them hence is not required in any process. Starch can only bind to natural fibres. ? Beer brewing is their main business
Starch is not required
none
There are no prospects for cassava starch
Kenya Breweries Ltd P.O.Box 30131 Nairobi. Tel: 02-864423. Contact: Mr. ??/Ng’ang’a Cege
? They have not used cassava starch
? They use maize starch from CPC as an adjunct in the mashing process ? They use about 10,000 MT/Annum
? This would be a heavy user of cassava starch if they could be assured of the quality implications
Kenya Cold Storage Ltd. P.O.Box 41229 Nairobi. Fax: 02-331819;Tel: 02226165 Contact: Mr. Nurez Kurji
? Have been well established in handling meats/meat products
? Does not use cassava starch
? Uses corn starch as sausage filler ? Consumes 5-10 MT/annum ? Local purchase from CPC
? To try using cassava starch to replace corn starch ? The market is declining ? They would be concerned about the gelatinization temperature ? They would also be concerned about the filtration and handling steps in production ? Would like to have ? Obtain information cassava starch for ? Obtain sample tests
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Kenya Orchads Ltd P.O.Box 45065 Nairobi. Fax:02-537479, Tel:02541231. Contact: Mr. Jolly Thomas
? Well established in fruit juices, Jams, canned fruits/vegetable
? Have not tried cassava starch
Milly fruits Processors Limited P.O. Box 90522 Mombasa Kenya Tel: 005-2-485551/486357 Cellular: 005-72-411608 E-mail: [email protected] Mini Bakers Ltd. Oslo Road. P.O.Box 17592, Nairobi. Tel: 02-544845 Contact: Mr. Pai/Ghosh
• •
It’s the largest fruit processor in Mombasa Buys fruits from local producers
•
Does not use cassava starch
? Consume 25? Interested in trying 30MT/annum out cassava products ? Starch as a soup thickener ? CPC local supply ? Costs Kshs. 32/kg ? Also uses glucose syrup • Uses maize starch from CPC • Uses small quantities i.e. 100 kg per month
? Information on cassava products ? If no functional difficulties cassava products could be used to replace corn products
? One of 15 other bakeries owned by Mini bakeries
? They do not use ? They purchase cassava starch wheat from millers and they use it directly without additives ? They produce about 20,000 loaves of bread /day ? They purchase wheat flour at 2950 Kenya shillings per 90Kg bag
? They would be interested in trying composite flours using cassava
Try experimenting with composite flours
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Packaging Manufacturers (1976) Ltd P.O. Box 98541, Mombasa, Kenya Tel: 005-11-434152/3/4 Fax: 005-2-433234 E-mail: [email protected] m Contact person Ketan M. Shah
•
• •
Manufacturers of high and low density polyethylene and polypropylene bags, sheeetings, tubings, and corrugated boxes Started in 1976 It’s the major cardboard manufacturer in Mombasa
•
•
•
•
• Uses cassava starch from Tapioca equivalent to about 1 tonne • per month Starch is obtained at a cost of 40 Kenya shillings per kg Also uses 1 tonne of SBA from Tapioca at a cost of 60 Kenya shillings per kg All costs include factory delivery
• Supply of raw material is not consistent and at times delays The firm also has to pay in advance
Firm would like to see competition in the production of cassava starch as a way of eliminating supply constraints
Explore opportunities for using cassava flour and hence supply a sample of cassava flour If successful explore opportunities for farmers supplying this directly to the company
•
Packwell Industries Ltd. P.O.Box 46826 Nairobi. Tel: 02-630322 Fax: 02630321. Contact: Mr. Hemendra Patel/Mr. Dias
? Makers of corrugated cartons ? Starch is used as an adhesive/ binder
? They have used cassava starch from Tapioca Ltd ? They can use cassava starch if continuous supply is guaranteed
? They purchase corn starch from CPC at Kshs. 35/kg ? They require about 2-3 MT/month of corn starch 800 tonnes of maize starch is utilised per year at a cost of
? They will use cassava starch if supply is reliable
? They require information on suppliers ? Company can use 100% cassava starch
Pan Africa Paper Mills EA The factory produces 48,000 Ltd. P.O.Box 535 Webuye, tonnes of Kraft - 56 -
Cassava starch could be used instead of starch as long as it is readily available and if it
Bungoma Mr. Gatimbu Production Manager
paper and 40,000 tonnes of paper per year Starch is used in the process of sizing
Ksh.43 and it is purchased from CPC.
could be much cheaper.
Premier Cookies Ltd. Baba Dogo Rd. Nairobi Mr Patel Production Manager Tel: 802965/6 Fax: 802039 [email protected] Visited by; Jagwe, Githaiti Premier Flour Mills Ltd. P.O.Box 59307 Nairobi. Tel: 350113 Contact: Mr. Patel/Mr. Prabhaka
This is a sister company to Premier mills, one of the largest milling companies in Kenya It was established in 1974
Cassava starch was once used and it was discovered that a 10% substitution was acceptable. Beyond that, the shelf life was adversely affected.
About 2,000 tonnes of wheat flour is used per year and this wheat is mainly imported from Australia as grain. Wheat flour costs Ksh.30-33 per Kg (factory del)
2 Kg of cassava starch could be availed as sample for trials
When soft wheat is used, there would be no need to use starch. Starch is used in biscuit manufacture when hard wheat is an ingredient in order to counter the adverse effects of gluten.
? Main business is wheat flour milling
? They do not use ? They produce cassava bakers flour, biscuit flour and ? They produce home baking 100-200 flour MT/Month ? They do not use starch
? Interested in trying cassava flour for baking
? Try using starch to dilute the gluten/reduce wheat strength ? There is potential use of cassava flour and cassava starch when they is guaranteed shelflife of products
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Press Masters Ltd. P.O.Box 17560 Nairobi. Tel; 02-823044 Contact: Mr. Ochieng
? Produce corrugated cartons among other products
? They have used cassava starch previously
Prime Cartons Ltd.
Began in 1996 They manufacture corrugated boxes.
Once used cassava and it was acceptable.
Visited by; Jagwe, Githaiti Raiplywood Kenya Ltd. Uganda Highway Eldoret Mr Bainito Technical manager (Adhesives) Tel: 0321 33811-5 The main products are plywood and block boards The factory uses 7.2 tonnes of Urea formaldehyde glue per year, 60 Kg of tyros Occasionally dextrin is used as a filler. Visited by; Jagwe, Githaiti Wheat flour is used as an extender and a thickener. The starch and gluten in - 58 none
? They use about 2-3 MT of corn starch per month ? They purchase locally from CPC ? Price is kshs.36/kg They are using 12 tonnes of maize starch per year bought from Orbit Chemicals Mombasa at a cost of Ksh. 33 per Kg. 1,100 tonnes of wheat flour are utilised per year at a cost of Ksh 18 per Kg.
? They can use cassava starch to replace corn starch
? Establish the possibility of a constant supply of cassava starch ? Availability and quality of cassava starch are the main problems currently
The business is steadily A 50 Kg cassava starch sample could be growing. availed to them for trials
High quality cassava could substitute wheat flour up to 100%
wheat help in extending the glue to the entire surface of the wood.
Ray Pharmaceuticals Ltd. P.O.Box 22830, Nairobi. Tel: 02-536230. Fax: 02540361. Contact: Dhirendra Shah
? They specialise in pharmaceutical products producing tablets, capsules and syrups.
? They have not used cassava starch
RIVATEX Rift Valley Textiles Ltd. Kapsabet Rd. Mr Alex Kishuru Sales Manager Visited by; Jagwe, Githaiti
none The factory is under receivership and has not been in production for the last 3 years It used to deal with textiles 100% cotton and cotton garments. It had a capacity of producing 5 million meters of cloth per - 59 -
? They use corn starch pharmaceutical grade as a carrier in tablets ? Consume about 20MT/Annum ? They also use dextrose monohydrate and liquid glucose Not in production at the moment
? They will not mind using cassava starch of BSP/USP grade
? Experiment with cassava starch ? Quality is critical
It is alleged that cheap imports, smuggling and gross mismanagement have been the main causes for the collapsing of the textile industry in Kenya.
month. At 20% scale of operation, 60 tonnes of maize starch would be utilised per year for the process of sizing. . Manufacture tablets and injections Stop purchasing starch in 1998 due to a change of product range
none
Smithkline Beecham Likoni Rd. Ind. area Nairobi Eng. Nyambok Tel: 534241 Visited by; Jagwe, Githaiti
SunFlag Textiles Ltd.
Starch is bought in granules form that are purchased through buying centres in Europe
No prospects for using cassava starch since production of medical grade starch requires very high investment.
Kampala Rd. Ind. Area Nairobi Mr Sadya & Mr Ashok Plant Manager Tel: 559721 Fax: 559015
It is one of the largest textile manufacturers in Kenya Products include knitwear, fabrics and textiles
Cassava starch was once used in the process of sizing but it requires a temperature of 90oC to gelatinise as compared to maize starch that requires 68oC The higher the temp the greater the energy cost.
The factory utilises about 50 tonnes of maize starch per annum and it is purchased from CPC
A sample of cassava starch could be availed to their laboratory for further tests
Visited by; - 60 -
Jagwe, Githaiti Tapioca Limited P.O. Box 84059 Mombasa, Kenya Tel: 005-11221849,226538,226578,228 302, 222825 Fax: 005-11-222645,473033 E-mail: [email protected] Contact person Rajese Khagram Triclover Ltd. P.O.Box 17663, Nairobi Tel: 02-54173. Fax: 02540530. Contact: Mr. Aviv Mavu It’s the major cassava starch producer in the country Buys fresh roots from neighbouring areas for starch processing The costs of production are very high especially for utilities such as water
? Produce cooking aids such as baking powder and starch ? Produce juices and sauces
? They have not used cassava starch
Tropical Sunshine Ltd. P.O. Box Tel: 0151-54392 Contact: Mr. Talib
? They use corn starch as filler in their products ? They pack corn starch for sale ? They use 15-20 MT/Annum ? They do not use ? They use corn cassava starch starch from CPC at a cost of Ksh 33/Kg ? Starch consumption is 2-3 MT/Month ? They use starch as thickener for sauce
? They need information on possible use of cassava starch
? To try using cassava starch in their products ? They are not aware of any shortcomings in the application of cassava starch ? Experiment with cassava starch ? Concern over cost and availability
? Potential users of cassava starch in all their products ? Their market is growing
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Trufoods Ltd. P.O.Box Tel: 557700. Contact: Dr. Shah; Mr. Singh; M. Njiru
? Does not use ? Well established in cassava fruit juices, products jams, sauces ? Have not tried ? Exports to Arab cassava starch countries ? Major local market
? Uses 3 ton/month corn starch in custard ? Uses 300kg/month modified starch in sauces ketchup ? Uses 10ton/month liquid glucose representing 25% max. of total sugar ? CPC supplies starch and glucose syrup ? Cost of starch 33/=/Kg
? Interested to try cassava products ? Concern is flow properties ? Concern for cost ? Concern for shelflife ? Concern for availability
? Looking for further information for application of cassava products ? Cost is major concern. Cassava products could replace all corn products if quality is guaranteed.
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Unga Feeds Limited
• • • • • •
Dakar Road, Nairobi P.O. Box 41788 Tel: 005-2-541831/2 Fax: 005-2-541676/543688 E-mail: [email protected] Contact person James Mbugua, Production Manager Unga Limited
Ngano house Commercial Street, Industrial Area P.O. Box 30386, Nairobi, Kenya Tel: 005-2-532471/2 Fax: 005-2545448 E-mail: [email protected] Contact person Mrs. Faith Mutwiri Quality Assurance Manager
Manufacturer of animal feeds Mainly poultry feeds It’s the biggest in the country Subsidiary of Unga group of companies It’s one of the biggest millers in the country Processes a number of foods including maize flour, wheat flour Maize flour is the main product Has plans to produce composite flours or produces It's the leading manufacturing concern in Kenya producing several household consumer goods It enjoys an export market in the region with Uganda being a major consumer
• •
Has not used cassava products in feed making Firm doubts whether cassava is an effective source of raw material Wants to include cassava flour as one of the products.
• •
• •
Currently using maize Thinks entire industry uses about 20,000 tonnes of maize per annum Maize is procured at a cost of 16 to 17 Kenya Shillings per kg Wheat grain is imported while the maize grain is procured locally Competition is stiff and the factory has undergone a major rehabilitation phase to try and reduce the costs of production
•
•
Firm is of the opinion that for cassava to work, supply constraints have to be addressed It is interested in information regarding the use of cassava in animal feed Would like to get information on use of cassava flour in bread Firm believes once cassava bread is acceptable to the market then cassava composite flour can be promoted
Provide data on use of cassava in animal feed
•
• •
Provide recipe for bread using cassava flour
•
• • •
Unilever Kenya Limited. P.O. Box 30062 Nairobi Kenya Tel: 005-2-532505 Facsimile 005-2-543912 E-mail: [email protected] Or [email protected] Or [email protected] Contact persons: Peter Karatu Technical Development Manager; Joyce Gathigi, Foods Development Manager , Sarah Hikonyo and Isaac Njoroge
• •
•
•
At the moment it is not using cassava products However it is seeking for a supplier of about 350 tonnes of cassava starch for use in its soap and detergent section It failed to secure cassava starch locally
• • • • •
•
Currently using corn starch in producing Mchuzi mix Starch is used as a thickener in this product It uses about 1000 tonnes of corn starch in Mchuzi mix alone Starch is at the moment being used in Mchuzi mix alone Corn starch is procured at a cost of 35 Kenya shillings per kg, factory delivered Corn starch is obtained locally from CPC in Eldoret
•
The company is interested in information on the properties of cassava starch compared with maize starch It is further looking for a credible supplier of cassava starch in the near future (by the end of June) It is willing to try cassava starch in its products but is only concerned about future availability of reliable supplies and at consistent quality
• • • •
•
•
Immediately contacts of world cassava starch producers should be availed Provide all the technical information on cassava starch properties This is a big company that is looking for cheaper alternatives that can work. There is already an opportunity as the company is looking for cassava starch
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A summary of the potential Cassava starch market by the above companies is given on Table 3 b below. The companies supervised utilise over 100 MT of starch. The first three consumption accounts for 83% of the starch utilised by the above companies. This is equivalent to only 0.8 % of the country’s starch consumption. It is then evident that promotion of cassava starch production in Kenya is a feasible venture. Starch is utilised in the pharmaceutical industry but if cassava starch is to venture into this market then medical grade starch must be produced. Another venture worth exploring is the use of cassava in composite flours. Cassava flour should be produced and used in optimal ration for the bakery industry.
Table 1b. Summary of the potential Cassava starch market. FIRM QUANTITY COST (35 PER (TONNES/Y KG) EAR) PACKWELL INDUSTRIES 36000 1260000000 NRB PRESS MASTERS NRB 36000 1296000000 CONTINENTAL PRODUCTS 24000 840000000 LTD KENYA BREWERIES LTD 10000 35000000 CASTLE BREWERIES 4000 140000 UNILIVER KENYA LTD. 1500 52500000 RAIPLYWOOD3 UNGA NRB1 PAN AFRICA PAPER 800 34400000 DAIS BAKERY LTD MSA1 CARTON MANUFACTURES 250 11250000 LTD. PREIMIER FLOUR MILLS1 NRB CHANDRIA INDUSTRIES 100 3500000 LIMITED SUNFLAG TEXTILES 50 1750000 TRUFOODS 39.6 1386000 TROPICAL SUNSHINE 36 1188000 THIKA E.A.PACKAGING NRB 420 1225000 KENYA ORCHARDS NRB 30 990000 RAY PHARMACEUTICALS 20 700000 TRICLOVER LTD 20 700000 PRIME CARTONS 12 396000 JAMBO BISCUITS 12 540000 HENKEL E.A 12 420000 JETLACK FOODS 12 432000
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CARLTON PRODUCTS NRB 12 396000 PACKAGING 12 480000 MANUFACTURERS CENTRO FOOD LTD 10 350000 KENYA COLD STORAGE 10 350000 NRB BEST FOODS LTD NRB 6 210000 MILLY FRUIT 1.2 42000 PROCESSORS LTD MSA CARTUBOX 1 39000 RIVATEX2 0 0 KENBLEST3 0 0 SMITHKLINE BEECHAM* 0 0 GOSHWAMI PRINTERS 0 0 ATTA (KENYA) LTD MSA 0 0 1 HOUSE OF MANJI UNGA FEEDS LTD NRB1 GOLDEN BISCUITS1 KENAFRIC BAKERS1 MINI BAKERS NRB1 PREMIER COOKIES1 Total cassava starch potential 115600.8 3764694000 Key: * Utilises medical grade Starch. 1 Produce flours and hence possible market for cassava based composite flours 2 No longer in production. 3 Using wheat flour as starch substitute
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7.2. OVERVIEW OF THE KENYAN STARCH MARKET. The total market demand for starch is currently estimated at about 12,000 MT. The partitioning of the starch produced is given in Table 4 below. Other cassava products include glucose and dextrose. The current utilisation of these products in the industry is given in Table 5 below. This is lower than the demand in the past. The downward trend is mainly explained by the collapse of the textile industry and competition from cheaper imports from the COMESA region.
Table 4. Partitioning of starch to various industries
Sector Paperboard Paper Textile Pharmaceutical Food processing Plywood 1997(MT) 1998(MT) 1611.5 1,185.4 2000(MT) 1,800 Market share(%)
Table 5. STARCH, GLUCOSE AND DEXTROSE UTILISATION PRODUCT Corrugator starch Paper starch Textile starch H/M pharmaceutical maize starch Corn starch snowflake 3400 L/M pharmaceutical maize starch Food grade H/M maize starch Brewers maize starch Food grade L/M maize starch Bakers maize starch Modified starch 43 BE/42 DE glucose syrup 43 BE/63 DE glucose syrup 45 BE/42 DE glucose syrup Amijel starch White maize dextrin Yellow maize dextrin Waxy maize dextrin Dextrose monohydrate 1997 (MT) 1611.450 1028.800 388.000 0.000 0.000 0.100 466.725 7378.900 775.150 796.850 5.850 5185.628 36.492 1009.464 0.500 6.000 27.250 0.150 586.650 1998 (MT) 1185.400 808.100 205.000 12.500 3.550 0.000 559.650 7761.105 952.500 923.450 55.608 4529.446 29.989 320.549 0.550 9.700 0.800 34.750 365.250
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Most of the starch is native and is derived from corn. However, the plywood sector uses wheat starch. Concerns here were mostly about price. Wheat starch was obtained at a much lower price than corn- starch. Local production accounted for most of the cornstarch that was used. On the other hand most of the of the cassava starch is at the moment being imported as local production costs are found to be higher. The resultant high price of the local cassava starch makes it difficult for it to compete in the market. Starch based adhesives were also used by the packaging industry and one of the firms reported using about 1 tonne per month.
7.2.1 Paperboard
This sector comprises 3 major firms and a number of other smaller factories. These accounted for over 50% of the starch requirements. Most of the firms including all the 3 major ones are located in Nairobi. This sector reported using cassava starch before although currently all the starch was corn-based and was produced locally. Use of cassava starch was discontinued due to inconsistency in both supply and quality The market demand for starch in the packaging sector was estimated at about 1800 tonnes per year. The price ranged from 39 to 45 Kenya Shillings per kg delivered to the factory.
7.2.2 Paper
Paper production in Kenya is the second major channel of starch utilisation. This industry consumes over 800 MT with most of it being consumed by Pan Africa Paper Ltd in Webuye. The starch utilised in paper production mainly goes into the production of Kraft paper, which is mainly used for packaging.
7.2.3 Textile
The textile industry in this country has virtually collapsed with the introduction of liberalisation, The once vibrant industry has had many of its factories which depended on cotton as an input shut down. Some of the factories were private while others were parastals. This resulted in loss of jobs and reduced the overall demand of starch in the country. Those still operational produce synthetic materials e.g. Polyesters, Nylon, etc., and do not use starch. However, with the new development i.e. African Growth Opportunity Act (AGOA). There are signs that cotton farming will be encouraged and textile revived. Now that textile business with USA market seems to be doing extremely well with the market share given to the developing world has been increased from 1.5 to 3.5 percent there is need for cassava starch to find a niche in this market.
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7.2.4 Pharmaceutical
Cassava starch is not utilised in the pharmaceutical industry mainly because medical grade starch is required. All of the starch used in this industry is imported. It is important that cassava starch is processed to meet the required medical grade starch requirements if it is to venture into this market.
7.2.5 Food Processing
Starch is used in various food products it performs various functions including Sweetening, as a flour, binding e.t.c. Ì Composite Flours Cassava flour should be incorporated in other widely used flours so that it can be used in two of the large food industry inputs Bread and Biscuit production. v Biscuits There are 3 major factories producing biscuits in the country. All of these are located in Nairobi. This food sub-sector utilises about 40,000 MT of wheat flour per annum. The cost of wheat flour for biscuits ranged from 29 to 30 Kenya shillings per kg In the past there were shortages of wheat flour, notably around 1990 and there was an attempt then by some factories to substitute wheat flour with locally produced cassava flour. However biscuits made from cassava flour were found to have a shorter shelf life. Beyond six months the biscuits changed colour. Also the fibre content was found to be high which affected the texture of the flour. Other problems associated with use of cassava flour included lack of commercial quantities, quality and low protein content v Bakery This sector comprises numerous firms enjoying small portions of the market. Not all of the bakeries could be visited. Competition was found to be stiff and all of the firms were interested in efficient methods of production so as to bring down the cost per unit of output. None of the bakeries was found to be using cassava flour at the moment. The industry was very sceptical that cassava flour could produce quality product.
Ì General
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Most of the manufacturers that had used cassava flour stopped because of quality inconsistency. There is hence need to maintain quality of the cassava if cassava starch is to compete for a profitable market share. Thus hazard analysis of critical control points (HACCP) should be carried out to provide quality assurance of the cassava. The market demands that cassava starch for use in the paperboard industry meets the following criteria: Moisture content Appearance Starch content Ash Protein pH Shelf life - 50 Kgs -11.5% to 12.5% - white - 87% to 88% - 0.25% to 0.35% - 0.5% to 0.7% - 4 to 5 - 12 months
Packaging
In addition, it was found necessary to promote awareness of cassava utilization as flour and in animal feeds. Information on the use of cassava flour in production of bread, cookies, biscuits and other baked products should be publicized in the country. This information should include recipes of some products. Cassava has been used for production of feeds includes pig feed (Oke, 1990). The information on the processing steps and ratios of the cassava meal added to the feed should also be publicized. Although the textile industry in Kenya has seen better days it is important to capture the little market available. The limitation of cassava starch utilization in this industry is it’s high gelatinization temperature (90 0C) as opposed to that of maize (68 0C). High gelatinization temperatures translate to high cost of production. Modifying the starch will eliminate this limitation. Modifying cassava starch and ensuring quality consistency will ensure that it has an advantage over maize starch in the brewing industry.
7.2.6 Plywood and paperboard
This is a sector where cassava based raw materials have a chance of being used in the short-run. The combined raw material demand for this sector is over 2000 MT per year. Cassava has already been used as a raw material in this sector and some industries expressed preference for its starch over cornstarch. The rural producers can also easily meet quality specifications for this sector, as standards are relatively lower.
Issues Factors that industry is concerned about include the following:
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• • • •
Quality consistency Timeliness of supplies Availability of supplies Competitiveness of price
Recommendations It is therefore important that production and supply studies be carried out to identify the likely constraints that may hinder supplies of commercial quantities to this sector Samples of the high quality cassava flour should also be availed to the industries for testing under different technological conditions and where positive results are obtained supply schedules should be looked into to plan for them well before hand. More information needs to be provided to all of the other firms within this industry and to enable them explore the potential for cassava.
7.2.7 Utilisation in feeds
A factor restricting the development of animal production in many developing countries is the cost of imported feed, which has often gone up several fold because of local currency with respect to world markets. If part of the feed could be substituted with root crops such as the cassava then part of the feed could be freed for human nutrition. The low protein, fiber and high content of soluble carbohydrates are notable features of the cassava root. Cassava tops, stems and leaves are also available as animal feed and are comparatively high in utilizable protein. The International Development Research Centre in Canada has recommended that cassava could be a substitute of up to 40 percent for maize in the nutritionally balanced rations of pigs without any deleterious effects, and up to 30 percent in poultry rations. It has also been reported that when cassava was substituted for maize in a poultry broiler ration at levels of up to 30 percent, there was no significant difference in the performance at all levels, but the 20 percent level of substitution was the most economical (Gomez et al., 1984). It required 215 kg of feed to produce 100 kg live weight with a 20 percent substitution. High levels of cassava intake are more acceptable for broiler than for layers. In the economic assessment of the rations, the least cost broiler diets containing 20 percent cassava meal gave the least returns while profitability increased with the level of cassava meal in the case of pig trials. In pig feed the performance was progressively better as the level of cassava in feed was increased. It required 339 kg of feed to produce 100 kg weight with corn - 70 -
alone, where as it required 337 kg and 331 kg respectively with 20 percent and 30 percent cassava substitution. Cassava may also be used as a substitute for maize in cattle feed. Cassava has been used as the main source of energy in dairy feeds, resulting in higher milk and fat yields and live weight gains (Pineda &Rubio, 1972). Similar results have been obtained for beef cattle and cassava- based diets gained significantly faster than those fed bran or corn and corn – based diets. On average about 246 000 MT of animal feeds are produced per year of this maize constitutes about 10 percent. Given that cassava can be substituted for Maize at the rate of 20% than over 4900MT of Cassava can be utilized in animal feeds in Kenya per year. In addition, the ministry of agriculture has reported that between 1993 and 1998 over 6.9 million cattle and calves were slaughtered for beef The pigs slaughtered over the same duration amounted to 4.2 million (CBS, 1999). It is evident from the data collected in the survey that cassava is not utilized in the production of animal feed in this country. From the statistics quoted above it is clear that the cassava industry has been loosing on this very important market. It is now time to take action and promote the use of cassava in the animal feed production.
7. 2.8 Other potential uses of the cassava
The products discussed above are those that represent the felt need of the market as it is now. In no way do these products do these products exemplify the potential of the cassava. One needs to have only needs look at the agro-industrial system for cassava given in Figure 3 below to understand that many other products could be produced from this priceless resource.
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Figure 3. An Agro-Industrial System for Cassava
Hammer
Protein Extractio
FIBROUS RESIDUE WASTE LIQUOR
Leaf
COMBUSTIO OR
ANAEROBIC FERMENTATION SYSTEM
STEM AND POWER
METHANE ( POWER AND
HEATING)
Cassava
WASTE LIQUOR
TUBERS
RECYCLING OF NUTRIENTS
TO SOIL
DEHYDRATION AND PELLETING
ANIMAL FEED INGREDIENT
STARCH REFINING
STARCH
FIBRE RESIDUE (ANIMALFEED)
HYDROLYSIS TO GLUCOSE
PROCESSING
AND/OR
GLUCOSE SRYRUP DEXTROSE MONOHYDRATE VITAMIN C
ETHYL ALCOHOL ACETONE, BUTANOL, CITRIC ACID E.T.C.
AND/OR
INVERSION
HIGH FRUCTOSE SYRUP
AND/OR
FERMENTATION FERMENTATION TO SINGLE CELL PROTIEN
SCP
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SOURCE: Mc Cann, 1976
8.0 Conclusions Cassava is widely used in Kenya by almost all communities, but has limited uses in terms of the products manufactured from it. Starch has potential for application in the food industrial subsector. The demand according to this study stands at over 100000 MT per annum. The food subsector takes only about 13% of the total. There is need for development of starch production to meet the demand. The only starch manufacturer produces erratically and at high costs. The flour is finding more acceptance in compositing with cereal flours for different local food preparations. There is also potential use of cassava flour in plywood manufacture. Industrialists have yet to fully utilize cassava in animal feed manufacture. The challenge in the utilization of cassava starch and flour lies in; convincing the end user of the safety of the products and possible use in diversified products, demonstrating high quality products from cassava. This calls for efficient information flow from the researchers to the manufacturers in terms of potential utilization areas, quality improvement and the assurance of sustainable supply.
. 9.0 References CBS, 1998. Kenya Demographic and Health Survey 1998. National Council for Population and Development Central Bureau of Statistics. Macro International Inc. Calverton, Maryland USA. 1999. CBS, 1999. Republic of Kenya Statistical Abstract. Ministry of Finance and Planning. Government Printing Press 1999- Nairobi. FAO, 1990. Roots, Tubers, Plantains and Bananas in human nutrition. FAO, Rome, Italy. Goering, T.J. 1979. Tropical root crops and rural development. World Bank Staff working Paper No. 324. Washington, D.C., World Bank. Gomez, G. Santos, J. & Valdivieso, M. 1984. Least- cost rations containing cassava meal for broilers and growing pigs. Symp. Int. Soc. Root crops. 6. Lima, 21-26 Feb. 1983,p.393-400, Lima, International Potato Centre. Jaffe, S., 1995. Perishable Profits: Private sector Dairy processing and marketing in Kenya. In: Marketing Africa’s High-Value Foods – Comparative Experiences of an
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emergent private sector. Eds. Jaffe, S and Morton, J. Kendall/ Hunt Publishing Company. Oke, O. L. 1990. Cassava Meal. In:Non-traditional feed sources for use in swine production. Eds. Thacker, A.P. and Kirkwood, N.R. Butterworth Publishers United States of America. Pineda, M. J & Rubio, R.R. 1972. Un concepto nuevo en el levantte de novillas para ganaderia de lenche. Rev. ICA, (7): 405-413
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Foodnet Project No: 4 PROGRESS REPORT ON PROJECT ACTIVITIES Period : January- March 2001
PROJECT TITLE : Marketing of cassava produce and products in Umutara and Bugesera regions of Rwanda for improved food security
Initially the project was supposed to be executed by World Vision Rwanda Program, due to a reorientation of that NGO from agriculture to social implications, activities are executed directly by farmer groups under the supervision of ATDT. So far World Vision technicians (in Umutara province) have helped us to conduct preparatory meetings with farmers to elaborate an implementation plan of the project. In Bugesera region, the drought which has prevaled there for more than 2 years has reached a pick of hunger which constitutes a handicap to start the post harvest project now.Nevertherless, the selected group has planted large fields of cassava in order to produce enough cuttings for further productions as well as to have row materiel to start processing with next year(2002).the group in Bugesera has identified the place where to install to processing equipments and the people responsible for all planned activities. Since the processing activity will not happen in Bugesera group this year, we are suggesting to start with 2 groups from Umutara .
Activities achieved
1. Umutara (with URUNANA farmers association) • • • • • Identification of the groups(2) and ressource persons Identification of the place and house to host the processing equipment Identification and nomination of farmers(3) to be trained in donkey rearing (whom then after will keep them at their farms). Identification and nomination of members of the group to be trained in the « project management ». Campain for large multiplication plots of cassava in the area by members of URUNANA farmers association in order to have enough row material to run the processing plants in the near future.
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2.Bugesera As mentioned above , due to the problem of cassava scarcity (roots) in this region, we are not planning any processing activity this year. This is the reason why I am suggesting to transfer the equipment to Umutara and start to processing units instead of one as initially scheduled in the project proposal. Farmers have just planted 2.5ha last November as a multiplication plot to start with for further dissemanation to the group in order to have enough material to process in the future.The idea was to have 11ha under multiplication in 2001 A season, but ISAR was not able to avail enough cuttings on time. 3.Planned activities for the next quarter(April to June ) • • • Training of farmers in donkey rearing Install processing units(2)and start processing activities Market studies for cassava products
4.Problems encountered in the quarter • Purchasing and transport of the processing equipemnt from Uganda by Foodnet was not done on time, it was expected to start the project with February, but to date only part of the equipment has been received. We are therefore requesting Foodnet to speed up the process of shipping the remaining parts of the equipment The outbreak of foot and mouth disease for animals prevailing in Rwanda for the moment will delay the importation of donkeys from Uganda . The Ministry of Agriculture , Livestock and Forestry has temporary declared a ban of importating animals in Rwanda till May this year.Movements of animals in the country are also forbidden now in most of the provinces ( including Umutara).
•
As already mentioned in the last quarterly report, initially this project was supposed to be implemented by World Vision Rwanda Program in partnering with 2 farmer groups , but due to a reorientation of that NGO from agriculture to social implications, activities are executed directly by farmer groups under the supervision of the ATDT research and extension liaison officer ( Speciose Kantengwa) as the one who prepared and submitted to Foodnet the concept paper for the project (on cassava processing equipment) at the time she was managing the agriculture department of World Vision Rwanda. During these last 2 months (April- May), we have received the equipments from Foodnet Uganda composed of the following : • 2 grain millers • 4 presses • 4 power graters • 5 chippers • 1 plastic roll ( for drying)
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The group in Bugesera has received 1 press, 1 chipper and 1 power grater. The 2 groups from Umutara have received received each 1 power grater, 1 chipper, 1 grain miller,and 1 press. Farmers have got organized for processing operations but we are still waiting for an expert person from Foodnet to help and train them in operating these equipment. Another planned activity is the training of 3 farmers in donkey rearing which might help in transport of row cassava from fields to the processing plants. These farmers are supposed to be trained in Uganda where the donkeys will be purchased from.The period has to be fixed by Foodnet as farmers are ready from their side.
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Foodnet Project No: 5 Progress report Project title: Establishment and commercialization of a small-scale integrated cassava-processing enterprise in Lira District, Uganda. Project purpose • To link rural economies to growth markets in a profitable and sustainable way, • To promote the diversification of rural production, and • To generate higher incomes while reducing agricultural production losses. Progress to date Conducted: A needs and constraints assessment of cassava marketing in Lira district was conducted using rapid reconnaissance methods, which involved secondary data collection and organization, and informal interviews with key informants who included district political leaders, contact farmers and traders. Outputs of this activity included • A socio-economic profile of the study area, • Identified the importance of cassava in Uganda and the study area, • Compiled a list of the food markets in Lira both spatially and temporally, • Identified constraints faced during production, utilization and marketing of cassava in Lira, and • Highlighted key researchable areas in the cassava food system matrix. Ongoing work: Semi-structured questionnaires have been designed for cassava producers, processors and traders. A formal survey of 120 cassava farmers, and 80 cassava traders in Lira district is ongoing and half of the respondents have been interviewed and data analysis has been initiated. A follow up of the marketing chain have led to interviewing participants in the neighboring district of Nakasongola and the final destination of Kampala. Issues being investigated include processing, utilization and marketing of cassava at the various market levels. Output of the survey will include quantification and qualification of constraints, and needs in the cassava food system matrix with a view to improving the efficiency of cassava marketing.
Foodnet Project No: 6 Progress Report Grant 6 By
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Kiddo J. Mtunda Mariam Kilima Sugarcane Research Inst., Kibaha c/o Sicco Tel: 007 22 2700092 Tel:255-52-402017 [email protected] 1. Processing equipment: The cassava chippers from Kampala were delivered to the roo / tuber programme at Kibaha in October 2000. The 2 chippers were not used immediately. SARRNET regional scientist took them for further modification. The Kalimatakijai women group received the cassva chipper on 20th February 2001, while the Kwa Mathias women group received it on 29th March 2001. 2. Kalimatakijai Women group (Dar es Salaam) The Kalimatakijai women group is composed of 15 members, with only 8 being very active. The group was established in 1990 and the previous activities done included; i) Making tie and dye cloth ii) Preparation of Hema (Local nail vanish) iii) Cultivation of Mushrooms The group has a central meeting place where they carry out their activities. The three activities have stopped due to greater competition from Dar es Salaam. 3. Kwa Mathias Women group: The Kwa Mathias women group is composed of 5 active members. The group was established in 1998 and the activities commonly carried out included the growing of vegetables such as cucumber, okra sweet pepper and sweet potatoes. The group does not have a central meeting place and most of their activities are conducted at the chairperson’s place. 4. Training: Training on cassava processing was done in February with the Kalimatakajai women group and in March 2001 with the Kwa Mathias group. The topics handled included; how to process high quality cassava flour, how to operate the chipper and the marketing of cassava products. 5. Promotion issues: In order to popularize the high quality cassava flour, the Kwa Mathias group participated in the ‘World Women Day’ celebrations held nationally at Kibaha. Both the cassava equipment and the products were displayed for 3 consecutive days. From 6th to 8th March 2001. The group received a certificate of participation.
6. Problems Faced - 79 -
i)
ii)
iii)
iv)
The group ahs very little experience in the marketing aspects. They have to identify the new marketing channels/ outlets or intervene the old marketing channels. Normally traders would go to Kigoma or Tanga to bring fermented cassava flour to sell at different outlets like Kariakoo, Kisutu or Manzese markets. The price of cassava roots is relatively high at the buying points. They buy at Tsh. 3,000 or more per bag of 80 kg of fresh roots. Due to this, the selling price of cassava flour should also be high, above Tsh.200 per kg. The Kalimatakijai Women group in Gezaulole is less active in marketing. They are reluctant to process until they are assured of the market. The rain season has begun and the groups are forced to postpone the processing activities until the weather is favourable.
Follow Up: 1. The project leaders are trying to link the groups with some entrepreneurs in Dar es Salaam. A few of them operating in the Kariokoo Market have shown interest. 2. Packaging of cassava flour is the next activity. The appropriate packaging materials have to be identified with the help of project leaders. 3. Some customers are interested in white fermented flour. We are in the process making trials to determine the best soaking hours for chips, because customers have complained about the sweet taste in flour made in one day. Later, cassava flour will be marketed in two categories; the unfermented and the fermented. 4. Through exhibition during the “World Women Day” many women groups applied for training. This is planed to be on-station or on-farm.
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Project 7 Equipment delivered, currently project under review with Sicco Kolijn Project 8
The marketing potential of Potatoes in Uganda and market opportunities for Rwanda.
Draft Report
Okoboi Geofrey International Institute of Tropical Agriculture
October 2001
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Table of contents REPORT SUMMARY....................................................................................................................84
POTATO PRODUCTION IN UGANDA ................................................................................ 85
POTATO PRODUCTION AREAS................................................................................................85 POTATO PRODUCTION STATISTICS ...................................................................................... 86 SEASONALITY OF POTATO PRODUCTION. .......................................................................... 89 POTATO VARIETIES................................................................................................................... 90 POTATO PRODUCTION COSTS ................................................................................................91
WARE POTATO MARKETING IN UGANDA .................................................................... 94
DESCRIPTION OF TRADING AND THE MARKETING CHAIN ............................................94 CONSUMPTION AND PRICES.................................................................................................... 97 SPATIAL ANALYSIS OF WARE POTATO MARKET ............................................................ 101 MARKETING COSTS AND MARGINS .................................................................................... 102 WARE POTATO IMPORTS/EXPORTS. ................................................................................... 104 SEED POTATO MARKETING IN UGANDA............................................................................ 106 COMMENTARY ON UNSPPA SEED POTATO PRODUCTION MARKETING REPORTS. 110
CONCLUSIONS AND RECOMMENDATIONS ....................................................................0
List of tables
Table 1: Output, Area planted and Yield of Potatoes from Major production Districts in Year 2000........ 87 Table 2a: Potato Production Calendar for Kabale District. ...................................................... 89 Table 2b: Potato Production Calendar for Kisoro, Mbarara, Mbale and Kapchorwa Districts........... 90 Table 3: Characteristics of Potato Varieties Released/Grown in Uganda .................................... 90 Table 4: Ware Potato Production Costs in Kapchorwa District, Uganda for Year 2001. ................. 91 Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins. 92 Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995........ 98 Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 ....... 98 Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995 98 Table 9: Correlation Coefficients (r) for Potato between four towns using nominal prices ............ 102 Table 10: Correlation Coefficients (r) for Potato between four towns using real prices ................ 102 Table 11: Potato Marketing Cost and Margins ................................................................... 103 Table 12: Assumptions used to derive costs in table 5 ......................................................... 104 Appendix 2: Grand Seasonal Index for Potato in Kampala Calculated from Real Retail prices ...... 112 Annex 1: PRODUCTION REPORTS FOR UGANDA NATIONAL SEED POTATO PRODUCERS’ ASSOCIATION (UNSPPA) FOR 2000A SEASON ................................................... 113
List of figures
Map 1: Major districts producing Potato in Uganda .............................................................. 85 Figure 2: Percentage share of Area planted with Potato in 2000 by major districts........................ 86 Figure 3: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................. 87 Figure 4: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................. 88 Figure 5: The Ware Potato trading chain. ........................................................................... 95 Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 99 Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 99 Figure 8: GSI for potatoes in Kampala, 1989-2000 ............................................................. 100
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Report Summary
This report is the result of a rapid national Potato market survey designed to analyse the marketing potential of the Potato sub-sector in Uganda. The survey involved formal and informal interviews to a cross-section of participants in the Potato sector.
Key Findings
• • • • • • • Production figures indicate that output of Potatoes in Uganda is stagnating, this suggests that more technical and farming systems investments is required to raise both production efficiency and levels of output. Potato yields are low in Uganda due to very low rates of quality inputs (clean seed, fertilizers, and chemicals) utilisation. In Kabale 1% of farmers are reported to use fertilisers (Low, 2000). While Potatoes are a major food staple and cash crop in the highland areas where they are cultivated, they are considered a cash crop in the lowland areas, where they have been promoted. The high level of perishability and lack of appropriate long-term storage facilities has significantly influenced the degree of price uncertainty in the Potato market. Brokers are a key link in the Potato marketing chain and this group appears to charge excessive fees for their services. Within the supply chain, travelling traders attain the highest net margins. There is no significant cross border trade in ware potatoes between Uganda and the neighbouring countries. However, limited formal and informal trade takes place along the Uganda-Rwanda border during the months of September to November when there is Potato supply shortage in Uganda. This is the most ideal time for Rwanda Potatoes to sell profitably in Uganda. Seed potato production and marketing in Uganda is least developed. Monopolised by the 25 members of Uganda National Seed Potato Producers’ Association, a 100kg bag of seed potato is sold at 5 times that of ware potato! Potato chips is the most popular potato product in urban areas as evidenced the increasing number of fast food outlets. The potential of potato crisps is encouraging though currently not very popular.
• •
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POTATO PRODUCTION
Potato Production in Uganda
Potato production areas
Potato production is concentrated in two areas in Uganda, the highlands of Kabale, Kisoro and Mwizi (Mbarara) in south-western Uganda and the mount Elgon districts of Mbale and Kapchorwa in eastern Uganda. Kabale district is very hilly and interlaced with narrow and broad valleys. Altitudes range from 1,4002,500m, the annual rainfall range is 1,000- 1,500mm occurring in two peaks and the mean annual maximum temperature is below 22.5oC with annual minimum below 10.0oC, making Kabale one of the coldest districts in Uganda (Low, 2000). Low (2000) further states that the soil moisture and temperature regime make Kabale suitable for temperate crops. The physical and climatic conditions of the mountainous districts of Kisoro, Mbale and Kapchorwa closely relate to those in Kabale. Although the hills of Mwizi in Mbarara have relatively lower altitude (1,200-1,600m) and rainfall (800-1100mm) ranges than Kabale, they are inhabited by migrants from Kabale who have came along with their tradition of Potato cultivation. Ware potatoes are produced in both highland and lowland areas. This was made possible through the introduction Potato varieties (e.g. Victoria), which is adapted to high and low altitudes. Seed potato is exclusively produced in highland areas. Due to the wide adaptation of Victoria, many new districts have taken to ware potato production, See Map 1.
Irish potato growing districts
Lakes and Rivers
Map 1: Major districts producing Potato in Uganda
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In the highlands where Potatoes are grown, the crop is both a major food staple and cash crop. In her study, Low (2000) noted that Potato and sorghum are by far the most important cash crops for both women and men in Kabale district. In the low and mid altitudes zones that have adopted Potato cultivation, the crop is not a major food staple but a cash crop.
Potato production statistics
Potato production in Uganda has spread over the years from the highlands of Kigezi (Kabale and Kisoro) districts to many other districts of Uganda. (See production by district table –Appendix 1). Data source for the production figures is Ministry of Agriculture, Animal Industry and Fisheries, though the reliability of these is questionable. According to the figures in Appendix 1, it is unlikely that in the year 2000, Lira district, a major buyer of Potatoes from Mbale produced 13,194 Metric tonnes more than Mbarara, which produced 10,791 Metric tonnes. Similarly, it is not possible that Soroti district, a dry and warm area where Potatoes are rare produced 11,509 Metric tonnes more than Kapchorwa district (11,058 Metric tonnes) in the year 2000. The figures in Appendix 1 also show that Kabale district is consistently the leading producer of Potatoes in Uganda and followed by Kisoro district. This is reasonably realistic. Thus even if the data is questionable nevertheless it is the only important reference source. Figure 1: Percentage share of Potato Production in 2000 by major districts
Figure 2: Percentage share of Area planted with Potato in 2000 by major districts
Kabale
5% 3% 7% 5% 5% 3% 15% 57%
Kisoro Mbarara Luwero Masaka Mbale Rukungiri Kapchorwa
4% 9% 7% 6%
6% 33%
Kabale Kisoro Kapchorwa Luwero Masaka Mbale Mbarara
5%
30%
Rukungiri
Figures 1 and 2 show the percentage share of production and area planted by the major Potato producing districts in Uganda for the year 2000. These charts were derived from Ministry of Agriculture, Animal Industry and Fisheries statistics in Appendix 1. With the exclusion of minor Potato producing districts in Uganda, Figure 1 shows that Kabale district produced 57% of the overall output of Potatoes on 33% land (Hectare) utilisation. Due to poorer soils, Kisoro district produced 15% using about 30% of the land area. Table 1 shows that Potato yield in Kabale was approximately 16 Metric tonnes per hectare while in Kisoro the yield was only 5 Mt/Ha. Information on yield is important in underpinning the agro-ecological conditions and farming practices of different communities in various districts. Furthermore, information on yield indirectly relates to: - Intensity of land use. Number of seasons Potatoes planted in year - Level of soil conservation and use of fertilizer to improve soil nutrients - Use pesticides and fungicides against a host of Potato vermin and diseases.
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Table 1: Output, Area planted and Yield of Potatoes from Major production Districts in Year 2000
District Output (Mt) Area planted (Ha) Yield (Mt/Ha)
Kabale 179,571 11,332
Kapchorwa 11,058 1,559
Kisoro 49,125 10,285
Masaka 15,767 2,433
Mbale 21,627 3,050
Mbarara 10,791 1,522
Rakai 6,172 871
Rukungiri 15,084 2,127
15.85
7.1
4.78
6.5
7.1
7.1
7.1
7.1
In a working paper No. 2000-1 for the International Potato Centre, Jan Low, noted that potato yields are high in Kabale due high plant densities per hectare and good soils. Low found out that farmers in Kalengyere who had high plant densities (50,000) per hectare also had better yields per hectare (29Mt) than those in Bukinda with low plant densities (40,000) per hectare whose yield was 20 Metric tonnes. In the study, Low also analysed other factors that affect yield such as the quality of seed, soil type and fertility and management of potato diseases.
Figure 3 shows the trend of Potato production (‘000 Mt) in Uganda for the period 1980-2000. The trend line indicates a stead increase in output for the period albeit the fluctuating production graph. Figure 4 is a production growth rate graph, a derivative of Figure 3. Although Potato production and growth rates varied considerably in the earlier years (1980-1989), the growth rate is has stabilised in the past 10 years to about 2% per annum. Thus, there is critical need to increase farmers’ yields through increased use of high yielding certified seed, fertilizers to supplement on soil nutrients and pesticides to control the destructive bacteria wilt and late blight.
Figure 3: Potato production (‘000 Mt) in Uganda, 1980-2000
87
600
500
prodn
Prodn ('000 mt)
400
Linear (prodn)
300
y = 10.645x + 166
200
100
19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98
98 19
Years
Figure 4: Potato production (‘000 Mt) in Uganda, 1980-2000
100 80 grow th rate 60 Linear (grow th rate)
output growth rate
40 20 0 y = 0.0176x - 0.0287 -20 -40 -60
80 82 84 86 88 90 92 94 96 19 19 19 19 19 19 19 19 19 20 00
Years
88
20 00
Seasonality of Potato Production.
In Kabale, there are no clear-cut distinctive seasons for production of Potatoes. There appears to be a seasonal overlap depending on weather conditions, hence Potatoes are in production almost all year round. The main reason why Potatoes are produced all year in Kabale is due to the intensive use of all available hills slopes, swamps and valley bottoms (non-swampy) for cultivation. Farmers interviewed, said there are three Potato cultivation seasons in the year. Table 2a shows the Potato cultivation calendar in Kabale in which the planting and harvesting times are presented. The first season starts from mid February during the short rains with planting on the hills slopes and ends June when most farmers have harvested. Harvests from this season are relatively small and the farmers consume a big proportion. Within this period of low rainfall, some farmers utilize non-swampy valley bottoms to plant Potatoes between December and January and harvest in March and April. This means that in the first season, Potatoes are harvested from non-swampy valley bottoms and hills slopes hence a reasonable market supply from March to June. Table 2a: Potato Production Calendar for Kabale District. Area of cultivation Hill slopes Swamp land Valley bottom Jan Potato Harvesting Feb Mar Potato planting Apr May Jun Jul Aug Sept Oct Nov Dec Har vest ing
Potato harvesting Potato planting
Potato planting
Harvesti ng Potato Planting
Potato Planting 73.1
Potato harvesting 136.5 114.9 98.4 43.0 13.7 56.4 88.8 131.4 98.4
Mean monthly Rainfall 1990 72.3 2000 (mm)
90.0
The second season is the most important commercial season in the potato cultivation calendar of Kabale. This season has a long rain period from September to December when most farmers again plant Potatoes on the hills slopes and harvest mainly in January. In December to January is the period when Potato production in Kabale is highest and there is over supply on the market leading to the lowest seasonal prices. (See Figure 8 for Kampala Grand Seasonal Index). Third season Potato cultivation is done in the swamps using irrigation canals during the dry period. Commercially oriented farmers who often time planting so as to harvest when Potato price is high mostly exploit this season. Swampland planting is between May and July and a short harvesting season starts from August ending mid September. During the second season planting (September to November), there is very little supply of Potatoes from western and southern Uganda (Kabale, Kisoro, Mbarara, Rukungiri and Rakai) to Kampala markets. During this period, a relatively high price of Potatoes is also recorded in Kampala, Figure 8. Interviews with the traders at the Uganda-Rwanda borders of Katuna and Kyanika also indicated that July to October is the window period when traders import Potatoes from Rwanda, repack them locally and sell as Kabale Potatoes. In Kisoro and Mwizi (Mbarara) Potato production closely follows that of Kabale except that these districts do not have significant swampland to warrant production of swamp irrigated Potato. Therefore these districts only have two major Potato seasons with the first season (minor) starting from February ending in May and the second season (major) starting September ending in January. Mbale and Kapchorwa districts also have two Potato production seasons in a year. The first season is between March (planting) and June (harvesting), while the second season starts from August and ends in December, Table 2b.
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Looking at the Potato productions in Tables 2a and 1b, the greatest window of opportunity for Rwanda to sell Potatoes to Uganda is between late August and early November. During this, there is virtually no supply from western and southern as it is the major planting period while this time also coincides the second planting season in eastern Uganda. Furthermore, due to low supply during this period Potato offlorry prices (28,000/=) are relatively high in Owino market, hence making it possible to sell Rwandan potatoes profitably. Table 2b: Potato Production Calendar for Kisoro, Mbarara, Mbale and Kapchorwa Districts. District(s) Kisoro and Mbarara Mbale and Kapchorwa Rainfall (mm) 1994 Mbarara Jan
Harvesting
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct Planting
Nov
Dec Harvesting
Planting
Harvesting Harvesting Planting
Planting
Harvesting
100.2
30.8
85.9
68.7
164.9
6.1
6.0
31.6
29.1
128.8
156.2
104.4
Potato varieties
The range Potato varieties that have been released and are being grown in Uganda are shown in Table 3 (PRAPACE, 2001). The survey revealed that many farmers in south-western Uganda were growing different varieties identified in the table except NAKPOT 1,2, &3, which seems to be unknown. Despite their good commercial characteristics, NAKPOT 1, 2 and 3 have not been adopted quickly since their release in 1999. Farmers interviewed said that they are cautious at adopting other potato varieties they are not familiar with. Some peasant farmers still grow old non-commercial local varieties such as Matare because it is tasty. Overall, the rate of variety adoption depended on the marketability of the variety, maturity rate, yield and tolerance to bacterial wilt and late blight and even the income level of households necessary for buying new seed.
Table 3: Characteristics of Potato Varieties Released/Grown in Uganda
Common name Yr 1st release Uganda 11 (1973) (Rutuku) Victoria (1992) Kisoro (1992) Kabale (1992) NAKPOT 1 (1999) NAKPOT 2 (1999) NAKPOT 3 (1999) Cruza 148 (1982) Ndinamagara Sangema Tuber size Large Skin colour Light red Red White Purple white White Rose red White Light red Pink Flesh colour Cream Tuber shape Vegetative cycle (days) 110-130 Seed dormancy (weeks) 11-13 Resistance/ Tolerance LB BW Toler Suscep Storability
Oval round
Good
Large Medium large Large Large Medium large Medium Large
Light yellow Cream White White Cream White Cream
Round Oval long Round Oval long Round Round Oval round
90-110 110-120 110-125 80-90 85-100 85-100 110-130
8-10 10-12 11-13 9-12 9-11 9-12 4-6
Mod resist Resist Mod resist Resist Resist Resist Toler
Toler Toler Suscep Toler Toler Toler Toler
Good Good Excellent Good Good Good Fair
Medium
Yellow
Oval oblong
90-110
10-12
Toler
Suscep
Good
90
(1980)
large
Victoria is the most common commercial variety that is high yielding, early maturing, tolerant to bacteria wilt (BW), but susceptible to late blight (LB). The farmers in Mbarara, Kabale and Kisoro easily adopted this variety because South Western Uganda Agricultural Rehabilitation Project (SWARP) and African Highland Initiative (AHI) promoted it Uganda Rutuku introduced in Uganda in 1972, also one of the most successful varieties in Kabale. Uganda Rutuku is highly sought after by traders because it the best for making chips. Mainly grown in Kabale at high elevations (+1,800 metres), this variety sells at a premium price. The survey also revealed that the wholesale price of 100kg bag of Uganda Rutuku was 33,000/= while that of Victoria and other varieties was at 28,000/= in Owino market. Because Victoria has almost similar characteristics as Uganda Rutuku (large tuber size, red/light red skin colour and yellow/cream flesh) unscrupulous traders in Owino are said to be selling Victoria as Uganda Rutuku to unsuspecting buyers In Mbale a variety locally called Wanale with all the characteristics of Uganda Rutuku is also highly demanded by chips makers in eastern Uganda.
Potato Production Costs
Production of ware and seed potato effectively requires the same inputs and labour. However, for a farmer to produce clean seed (certified seed) he must purchase to use basic seed from a recognised source. To produce ware Potatoes, the farmer can use any Potato tuber that can sprout be it certified seed or disease infected local seed. Seed quality significantly determines the yield.
From our field survey it was found that most respondents (farmers) complain experiencing declining yields because they do not use certified seed. Farmers said they use local seed retained from their harvests or buy from neighbours. The costs incurred and margins received by an average farmer in Mbale or Kapchorwa for cultivation of one acre of Potatoes using minimum inputs is shown in Table 4.
Table 4: Ware Potato Production Costs in Kapchorwa District, Uganda for Year 2001. Item Unit price (U shs) Inputs Land Rent/Hire 1 Acre 25,000 Seeds 15 bags (1 bag ~100kg) 10,000 Chemicals (Ambush & Diathane) Total (U shs) 25,000 150,000 30,000 35,000 % of sales
Fertilizers (NPK) 1 bag (optional) Labour
Ploughing 2 Times Making Ridges and Planting Adding more soil on the ridges Weeding 2 Times Fertilizer application (optional) Spraying Harvesting Total costs
35,000
15,000 15,000 15,000 15,000 10,000 5,000 20,000
30,000 15,000 15,000 30,000 10,000 5,000 20,000 365,000
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Revenue return
1 acre = Yield = 100 bags Farm-gate price per bag = 4,000/=
Gross Revenue Net Margin
400,000 35,000 8.75%
Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins Variable option No fertilizer use No fertilizer & pesticide use No fertilizer use & land hire No fertilizer use & land hire Total costs (U shs) 325,000 Yield (bags) 1 bag ~100kg 80 Price per bag (U shs) 4,000 Revenue (U shs) 320,000 Profit/loss (U shs) -5,000 Remarks Common with peasant farmers Common with subsistence farmers Most common situation Most common situation with off season production
285,000 300,000
70 80
4,000 4,000
320,000 320,000
35,000 20,000
300,000
80
5,000
400,000
100,000
Informal interviews with farmers in Mbale and Kapchorwa revealed that most farmers do not use fertilizers and pesticides in the production of Potatoes. Non-use of fertilizers, pesticides, certified seed and land hiring is the most common agricultural practice of peasant farmers in Uganda. However, data in Table 4 illustrates the probable costs of cultivating 1 acre of Potatoes, the yield and returns as given to us by a number of farmers interviewed. The table shows that with a total investment (cost) of 365,000/=, the likely yield given favourable weather conditions is 100-120 bags. Table 4 further shows that the farmer earns 35,000/=, which is only 8.75% of the total sales.
Table 5 illustrates the various cost options that the farmers may incur in cultivating 1 acre of Potatoes and the resultant revenue given the price. Given the most common situation is that farmers do not use fertilizers and do not hire land, the farmer incurs about 300,000/= in production costs and earns 20,000/= only from a gross revenue of 320,000/=. The analysis further demonstrates that the most profitable (100,000/=) situation is when the farmer produces offseason when the farm-gate price improves to 5,000/= per bag.
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POTATO MARKETING
Ware Potato Marketing in Uganda
Description of trading and the marketing chain Constrained by high product perishability and limited storage facilities, farmers do not harvest Potatoes until they identify a buyer. Travelling traders/brokers also rarely buy from farmers before contacting their buyers in Kampala. Therefore, Potato trading is a demand-led business; that is, there has to be demand before supplies come to the market. This caution aims to reduce post-harvest loses that are associated with fresh produce. For the production areas of central, western and southern Uganda, the focal destinations of the Potatoes are the Kampala markets (Owino, Nakawa, Kalerwe, Natete and others). Potatoes from Mbale and Kapchorwa generally go to Mbale main market first. Although there are travelling traders who may directly supply other towns and urban centres, Kampala is the main wholesale market for Potato traders from other towns such as Entebbe, Mukono, Kayunga, etc. Mbale market is the main distribution centre for Tororo, Iganga, Pallisa, Kumi and Soroti urban markets. A small number of restaurant operators and retailers in Gulu and Lira occasionally used to get their supplies from Kampala, but are now shifting their focus on Nebbi district that has become a dominant producer of Potatoes in Northern Uganda.
For goods to move from their origin (production) to their final destination (consumption), there are various people who perform the physical functions (e.g. sorting, packing, transporting, loading and unloading) and others who undertake the economic activities of selling and buying. The stages through which Potatoes move from the farmer to the consumer is described below.
Farmers
Farmers are the first link in the Potato market chain due to the high level of people depending on agriculture in Uganda (over 80%). Farmers are both producers and consumers. A sizeable portion of output is consumed by farmers from own production and by buying from neighbours and village markets. Farmers harvest their Potatoes only when they have a buyer. At the time of sale farmers either seek the local village trader/broker or the trader/broker approaches the farmers. After striking a price deal, the farmer and village trader/broker agree on activities such as harvest date, sorting and packing. In most cases it is the farmer who harvests the Potatoes from the soil while village trader/broker provides the packing bags and does the packing. It is rare that individuals or farmers groups harvest their Potatoes, transport and wholesale them at urban markets. Most often, produce is sold at farm-gate and on a cash basis. Other than selling to village assemblers and brokers, farmers also sell their Potatoes by the roadside and take them to the weekly village markets or sell them to the village retailer.
Village traders/assemblers
Village traders from the product areas o and know the farmers in their village and surrounding areas. They know what farmers have planted and when it is likely to be harvested. The village traders are in contact with transporters, wholesale buyers and financial service providers. After identifying farmers willing to sell and a price is agreed between the local farmer and wholesale buyers, village traders contact their buyers using mobile telephones. Once an agreement is struck, the deal is concluded on a trust basis. Trade can also be initiated by the wholesaler who requires urgent supplies. When wholesaler requires Potatoes, he will call his contact (village trader) agree on a price and other marketing arrangements and in turn the village trader will assemble to fulfil the amount required by the wholesaler. To accelerate the process, village traders are given cash advances from wholesalers, in which case they at times regard themselves as brokers. Village traders/assemblers also sell to travelling traders from Kampala and to contacts in other towns. See Figure 5 a schematic representation of the Potato trading chain.
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Figure 5: The Ware Potato trading chain.
Rural broker
Framers
Village traders/
g traders
Rural retailers
Urban Brokers Rural consumers
Travellin
Wholesalers Key Urban retailers Major Flow Minor Flow
Consumers /processors
Brokers
Brokers are one of the prominent market participants in Potato trading. In rural areas, brokers are the contact for travelling traders and wholesale buyers to farmers and the key link of farmers to traders. Brokering is a lucrative activity and some successful village traders and wholesalers switched roles to brokers. Brokers get instant pay (commission) per Potato bag for their services. The amount ranges from 500-1,000/= per bag depending on the quantity required and the urgency with which the consignment is required. Apart from rural brokers who link farmers with the travelling traders, there are also brokers in most urban centres who link travelling traders to wholesalers and urban retailers. For example, in Kampala or Mbale travelling traders or village traders who have brought a lorry load of Potatoes, surrender it to the broker. Before the broker accepts the responsibility, a number of issues are agreed, i.e, - The number of bags that are on the lorry - The price per bag that the travelling trader is going to receive - The minimum price per bag at which the broker will sell, hence commission per bag.
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- Who pays the market fees and off loading costs In Kampala markets, we found out that after agreeing on the price that the travelling trader is to receive per bag, brokers were free to sell at whatever price they could negotiate with the buyers. Thus the commission that the brokers receive, varied from 500-2,000/= per bag depending on demand and supply conditions in the market. Brokers are an organised and influential group in the market (especially Owino market) and few travelling and village traders can directly sell to wholesalers and urban retailers as shown in Figure 1, by dashed lines (minor flow).
Mbale brokers are not different from their kinfolk in Kampala. They also takeover the transaction activities of Potatoes as soon as the lorry load enters the market. While Kampala brokers usually accept to over the responsibility of paying for off loaders as a fraction of their gross commission, Mbale brokers negotiate to pay even for markets fees as shown below.
Gross commission
Market fees
Offloadi ng fees
Net commission
Sometimes brokers make windfall gains. Urban brokers negotiate a fixed price with the travelling traders and sell at a higher price to the wholesalers while the rural brokers may negotiate a different price (higher price) with the buyers and pay a different price (lower price) to the farmers. For example, suppose a broker buys from the farmer is willing to sell 100 bags of Potatoes at 8,000/= per bag while the trader is willing to pay 10,000/= per bag. The broker will gain (10,000-8,000)x100 = 200,000/= for a single transaction. Given the production costs, a farmer can hardly make such a profit margin from a production of hundred bags of Potatoes. Like wise few traders (travelling traders) can make such profit given the high marketing costs involved in Potato trading. Brokers do not incur losses. At worst, they sell at the travelling traders’ reserve price otherwise a price above the reserve price guarantees them of a minimum commission. On the whole, the market has now accepted brokers (urban and rural) as a necessary iniquity. They are a key link in the marketing chain. They are the most informed about the market (demand and supply) conditions.
Travelling traders
These are traders who either own trucks or hire them for buying Potatoes from farmers or village traders and then transport and sell to wholesalers and urban retailers in other district markets. These traders supply most of the Potatoes to wholesalers and retailers through brokers. In Kampala, travelling traders can station and sell their Potato truckload in one market or move from one market to another until the consignment is sold. Travelling traders with fresh Potatoes (high quality) typically hike their prices relative to those prevailing the market. However, when their stocks do not sell quickly as they anticipated and the quality starts to degenerate, these traders reduce the price accordingly. Travelling traders will sell at clearance prices to avoid further overhead costs such as accommodation costs, overnight parking fees, product loss and transport surcharge from truck owners.
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Wholesalers
Major Potato wholesalers are largely found in Kampala (Owino and Nakawa) Mbale markets. In other towns, traders double as wholesale and retail traders because of the lower volumes. More often, wholesalers get their supplies from travelling traders. Rarely do wholesalers venture out to buy directly from the farmers. Most traders do not know the names of different varieties but can distinguish them according to the skin and flesh colours. As experienced traders they soon know which varieties that are most highly sought by restaurants (good for chips and crisps). Accordingly, wholesale traders sell different varieties at varying prices. A popular variety, Uganda 11 (Rutuku) most preferred for chips and crisps is sold at a premium price of 7-13% over that of other varieties.
Retailers
Potato retailers are many and range from supermarkets to village roadside sellers. In urban areas retailers in markets buy 1-5 bags from the wholesalers and then sell it in various heaps sizes for amounts ranging from 100-2,000/= A heap sold at 1,000/= weighs an average of 3kgs. Retailers sort and grade Potatoes according to variety and degree of freshness. Recently, some supermarkets such as Shoprite have started selling Potatoes in 5kg packages. In rural areas Potatoes are sold on the road sides heaps or tins. A heap which has an average weight of 10kgs, sells for approximately 2,000/=.
Processors
Hotels, restaurants and Take-Aways (Fast Food outlets) are the main business enterprises that process Potatoes into chips. In urban areas, over 50% of Potatoes are consumed as chips. Minimum inputs needed to process chips include fresh Potatoes, cooking oil, fuel energy and a pan. These inputs are locally available. The team was shocked to discover that despite the abundance of good quality Potatoes available in Uganda, the South African based fast food restaurants such as Nandos and Steers get their Potatoes from South Africa. This would appear to be a valuable niche market if Ugandan growers could produce the varieties grown in the Republic of South Africa to supply these outlets. There are some small-scale food processors that make crisps from Potatoes. Crisps being not a very popular product that is mainly eaten by students and young people in urban areas means that its market is limited thereby limiting its production.
Consumption and prices
In Uganda, Potatoes are consumed in areas where they are produced and surplus is sold in urban areas. Market patterns indicated that almost no Potatoes moved to non-producing areas where Potatoes are not regarded as a staple food. Potatoes are consumed in a number of ways. Potato farming communities and rural dwellers, where Potatoes are consumed as a major food staple, mainly eat Potato boiled or mashed. At times they also eat Potatoes mixed in beans, beef, or other vegetable stew. In these communities, Potatoes are eaten by all ages of people. In the urban areas of Uganda, Potatoes are mainly consumed as chips, snacks (crisps) and occasionally in a boiled or mashed form. The major consumers of Potatoes in towns are young people of working class and students of higher institutions of learning who eat Potatoes mainly as chips. Particularly, it is interesting to note that on average, more women eat chips than men. The rapid rate at which fast food outlets (TakeAways) are becoming popular in urban centres is evidence to the high level of Potato (chips) consumption. The principle product of the take-ways is chips and chicken. Young people we interviewed said they prefered chips to other foods because it is tasty, cheap easy to prepare, and considered a status food.
Estimates from the 1994/95 Uganda National Household Survey indicated that the region with highest average monthly household consumption expenditure on Potatoes was western Uganda followed central and eastern and lastly northern Uganda, Table 6. Tables 6, 7 and 8 indicate the average monthly household consumption expenditure on major food staples in Uganda. They were complied from the Uganda National Household survey (1994-95) statistics report
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Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995 Region Rural Per H/H Monthly Exp in U.shs. 20 83 513 1,250 % of total Exp on major food 0.04 0.16 0.6 2.16 Urban Per H/H Monthly Exp in U.shs . 450 563 946 858 % of total Exp on major food 0.45 0.59 0.55 0.84 Total Per H/H Monthly Exp in U.shs . 48 124 633 1,222 % of total Exp on major food 0.1 0.23 0.58 2.00
Northern Eastern Central Western
Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 Region Rural Per H/H Monthly Exp in U.shs . 332 1,309 8,092 7,986 % of total Exp on major food 0.73 2.59 9.48 13.78 Urban Per H/H Monthly Exp in U.shs . 1,442 3,477 11,224 8,612 % of total Exp on major food 1.43 3.65 6.53 8.39 Total Per H/H Monthly Exp in U.shs . 403 1,492 8,965 8,031 % of total Exp on major food 0.82 2.74 8.19 13.11
Northern Eastern Central Western
Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995
Rural
Food staple Per H/H Monthly Exp in U.shs . 4,866 4,385 512 3,030 % of total Exp on major food 7.92 7.13 0.83 4.93
Urban
Per H/H Monthly Exp in U.shs . 9,020 2,779 841 1,850 % of total Exp on major food 6.17 1.9 0.58 1.27
Total
Per H/H Monthly Exp in U.shs . 5,458 4,156 559 2,862 % of total Exp on major food 7.42 5.65 0.76 3.89
Matooke Sweet Potato Potato Cassava (fresh, flour)
Source: Uganda National Household Survey (1994-95), Min. Planning and Econ. Dev’t.
Although the estimates in the tables above may not portray an accurate status of the current levels of staple food consumption, it provides a guide to the magnitude and direction of expenditure flow by households on major food staples in various regions of the country. Table 6 highlights the comparative household monthly expenditures on Potatoes between regions and between rural and urban areas. Noticeably, the rural part of western Uganda has a higher monthly expenditure (1,250/= per month) on Potatoes than the urban areas of western Uganda (858/= per month). This finding is reasonable as potatoes are the main food staple for rural people in Kabale, Kisoro and Rukungiri. People in urban areas have a greater choice of buying other food staples such as matooke and rice brought from other districts. In the regions of central, eastern and Northern Uganda, urban dwellers spend more on Potatoes than rural.
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Comparatively, both rural and urban households in all the regions of Uganda, spend over 5 times their monthly consumption budget on cooking/bananas matooke than Potatoes. (See Tables 6 and 7). Matooke is a very close substitute to Potatoes and it is ranked number one food staple in central and in some parts of eastern and western districts of Uganda. Table 8 shows that of all the 4 major food staples consumed in Uganda, the highest monthly household expenditure goes to matooke, closely followed by sweet Potatoes, and then cassava and lastly the least expenditure goes Potatoes. The data in Table 8 reveals that the urban community spends about twice as much on matooke and Potatoes than the rural populace while on the other hand the rural populace is observed to spend about two times more on sweet Potatoes and cassava. Figure 6 shows the nominal retail price of Potatoes in selected markets in Uganda. This graph shows how unstable Potato prices can be. The linear trend shows that over time Potato prices have more than doubled in the last 10 years (see linear equation) in direct relation to the macroeconomic conditions (inflation, exchange rate instability, supply shocks, etc.) prevailing in the country.
Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets
800 700 Mbale cpi 600 Price in Uga. Shs. 500 400 300 200 100 0
Se p8 M 8 ar -8 Se 9 p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 pM 95 ar -9 Se 6 p9 M 6 ar -9 Se 7 pM 97 ar -9 Se 8 p9 M 8 ar -9 Se 9 pM 99 ar -0 Se 0 p00
K'la/Ebb cpi
Mbarara cpi
Linear (K'la/Ebb cpi)
y = 2.1933x - 2219.9
Years
Source: Uganda Bureau of Statistics; Min. of Finance and Econ Dev’t.
Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets
99
250
Mbale 200 Mbarara
K'la/Ebb Linear (K'la/Ebb )
Real price per Kg.
150 y = 0.0859x + 15.164 100
50
0
Se p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 p9 M 5 ar -9 Se 6 p9 M 6 ar -9 Se 7 p9 M 7 ar -9 Se 8 p9 M 8 ar -9 Se 9 p9 M 9 ar -0 0
Years
Figure 7 shows real (adjusted for inflation) retail price of Potatoes in Kampala, Mbale, Masaka and Mbarara for the period September 1989 to June 2000. While the graphs in Figure 7 clearly shows that Potato prices are highly unstable, the trend line for the Kampala real price series indicate that over this period, real prices have been stable. A likely reason why Potato real prices have remained almost constant over the long run is because whilst demand for Potatoes has increased, supply has matched this growth. In Uganda, ware Potato production is no longer a monopoly of the highland regions of the old Kigezi districts. Victoria, a versatile Potato variety with a short maturity period can be grown in virtually all parts of Uganda which have adequate rainfall.
Examination of the graphs in figure 6 and 7 indicates that the seasonal fluctuation of Potato prices have existed over the entire period. However, a closer scrutiny shows that price fluctuations have worsened since 1997. In 1998 Uganda experienced the famous El Nino phenomenon. These adverse weather conditions led to supply shocks of most agricultural output that exacerbated price volatilities. Another possible reason for the high level of Potato price instability is its high degree of perishability due to lack of appropriate packing, handling and storage facilities. The mode of production that depends on rain-fed agriculture also affects supply, and a change in transaction costs directly affects the price stability. Figure 8 shows the seasonal real retail price movements for Potatoes in Kampala for the period 1989-2000. The grand seasonal index (GSI) is a statistic that calculates the monthly average price from a price series for a given period of time. (For more on calculation see Appendix 2)
Figure 8: GSI for potatoes in Kampala, 1989-2000
100
200
150
GSI
100
50
GSI GSI +1s.d GSI -1s.d annual mean
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months
Our calculations, Appendix 2, indicate that the annual mean real retail price of Irish Potatoes is 113.19/= per kilogram. Figure 8 shows that the trend in seasonal prices is more or less stable and shifts above and below the annual mean. The graph further indicates that the seasonal price index does not exceed the annual mean by 9%, and at its minimum the seasonal index does not go below 12.5% of the annual mean.
In Figure 8, there are two more graphs that deserve an explanation. GSI +1s.d and GSI -1s.d are graphs that were derived by adding to and subtracting from GSI a standard deviation of every month’s seasonal index. Standard deviations measure the magnitude of variation of the series from their mean. The above graphs are thus introduced as a measure of the level of uncertainty in the seasonal price fluctuations. These graphs show a significant pattern. The standard deviations are lowest in August and December to February, when the market’s uncertainty is at its lowest level. Major Potato harvests come to the market late in December and continue to early March. Second season harvests register their presence in the market in August but because production volumes are low in this season, speculation is common and price volatility increases. Standard deviations are at their peak just before harvests in May to July and November. Lack of reliable information on supply and demand conditions tends to exacerbate the level of uncertainty, however, during these periods; off-season production from swamplands and some imports from Rwanda usually filter into the market to ameliorate the erratic situation. September to November is the opportune period for Rwanda to export potatoes to Uganda. Despite these erratic price movements, we did not obtain any information suggesting that farmers or traders store ware potatoes for speculative purposes. In Uganda, the rate of population growth and urbanisation is well correlated with the level of Potato consumption, especially in the form of chips and crisps. Therefore, demand for Potatoes is likely to increase in the future and it is expected that supply from low and mid altitude zones where Potato cultivation is a cash crop will increase. Therefore, the long-term future trends of Potato demand and supply are certain but changes are more difficult to judge, as this will depend on competition.
Spatial Analysis of ware potato market
In an integrated market system scarcity in one location creates demand of products from other locations. Consequently, local prices in an integrated market system would be more stable and only differ due to transaction costs between locations. Correlation coefficients (r) between pairs of markets are the quantitative estimation used to measure the level of the market’s spatial integration. Tables 9 and 10 contain results of correlation coefficients between four towns for Potato prices calculated using nominal and real prices respectively. From Tables 9 and 10, the following observation worth noting. 101
•
All coefficients in Table 9 exhibit moderate (0.6
Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer.
Full Annual Reports
Project 1 A Pilot Study for the Improvement of the Agricultural Market Information Service in Tanzania Research Grant by FOODNET
A REVIEW OF AGRICULTURAL MARKET INFORMATION SERVICE IN TANZANIA: The Changing Role of Market Information System
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E.R. Mbiha, G.C. Ashimogo, A.A. Temu, D.Nyange1 TABLE OF CONTENTS 1. Introduction 2. Historical Background of Market information Service in Tanzania 3. Current Market Information System in Tanzania 4. Factors Contributing to the Changing Role of MIS 5. Summary of Findings, Conclusions and Recommendations 3 4 6 9 11
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Sokoine University of Agriculture, Morogoro, Tanzania
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1. Introduction: 1.1 Background This report reviews the current status of agricultural Market Information Service (MIS) in Tanzania as a part of a broader research on “A Pilot Study for the Improvement of the Agricultural Market Information Service in Tanzania.” The study is funded by FOODNET, a regional agricultural research and development network focussing on market-oriented research and sales of value added agricultural products in Eastern and Central Africa. Changes in many economic policies in recent years (1990s), particularly the adoption of market economy has rendered some of the functions of many institutions obsolete. MIS being not the exception had been affected by these policy changes. How has agricultural MIS functions and mode of operation adapted to these policy changes? This report reviews the status of agricultural MIS in Tanzania. The report is prepared as a benchmark for planning a more detailed survey of stakeholders in MIS particularly producers, traders, transporters and processors of agricultural commodities. 1.2 Objectives Objective of this review is to understand the current agricultural market MIS in Tanzania so as to develop strategies to improve efficiency in data collection, processing, information dissemination and maintenance of databases. Specifically the study has attempted to accomplish the following; i) ii) iii) iv) To review the organization of MIS in Tanzania and identify key stakeholders in MIS to be interviewed in a more comprehensive survey To evaluate sampling and procedures for data collection, processing, storage (database) and dissemination used by MIS To assess how MIS has adapted to changing economic policies, particularly market liberalization To make recommendations on how to enhance the efficiency of MIS in performing its functions and provide necessary information for planning a more comprehensive survey of stakeholders in MIS.
1.3 Methodology Literature review- MDB/MIS annual crop/commodity reviews, reports prepared for the media (radio and newspaper), evaluation reports, and proposals for reforming agricultural MIS. Review of data collection instruments, data processing, and dissemination procedures Evaluation of commodity price database Discussions with past and current MDB/MIS officials in the Ministry of Agriculture
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2. Historical background of MIS in Tanzania Prior to initiating reforms towards a market-oriented economy in 1984, Tanzania was a statecontrolled economy. During that time, the government directly intervened in the market through price fixing, imposing restrictions on trade, monopolizing the commodity market using state owned companies and subsidizing the agricultural inputs and food commodities. Purchase of food crops from surplus areas, processing and then distribution in demand/deficit areas were mainly undertaken by the state owned the National Milling Corporation (NMC). Agricultural cooperatives operated in the rural areas as agencies for NMC. In addition to the NMC and cooperatives, the private sector also operated, mainly as a parallel market. In 1986, Tanzania made a firm commitment to pursue a market economy and to undertake the Structural Adjustment Program (SAP). The new policy places a clear restriction on the actions that the government can adopt to achieve its objectives. Except in a very limited case such as restocking of the emergency grain reserve, the government is not supposed to intervene in the food markets; rather its role has been limited to facilitate and promote the participation of the private sector. Specific policy reforms that target the agricultural sector include: Withdrawal of the government from fixing producer and consumer prices Reduction in export taxes Removal of agricultural subsidies in input such as fertiliser, seeds and chemicals Removal of quantitative restrictions in movement of agricultural commodities and inputs and Reducing and rationalisation of state marketing and credit institutions including liberalisation of markets and promotion of the private sector
MIS in Tanzania dates back into 1970 when the Marketing Development Bureau (MDB) was established under the Ministry of Agriculture. The project was funded by UNDP while FAO was the participating and executing agency. The project came into full operation in 1972. During its inception MDB had the following objectives; To provide advice to the government on marketing policy To organize marketing training for the staff that would be required by the Ministry, marketing authorities and cooperatives for their marketing activities, and To establish a regular market news service
Later on additional tasks were put to MDB and these include; To set consumer prices To carry out research on costs of crop production on behalf of the Cooperative Unions To recommend producer prices for staples and major cash crops (1973/74)
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When it started information reported by MDB was official commodity prices and volumes. In early 80s even before market liberalization MDB had already extended its coverage to include unofficial parallel markets. However, such information became legitimate and acknowledged by the government after adoption of market-oriented economic policies in 1986. Since then MDB has been undergoing gradual transformation in terms of functions, organization structure and commodity coverage. As a reflection to such changes the department’s name has been alternating from MDB to Agricultural Information Service (AIS) and Market Information Service (MIS).
3. Current Market Information System Under recent changes MIS has been transferred from the Ministry of Agriculture into the Ministry of Cooperatives and Markets. Figure1 illustrates the current organization of MIS under the Ministry of Cooperatives and Markets.
AGRICULTURAL MARKET INFORMATION SYSTEM IN TANZANIA
MINISTRY OF CO-OPERATIVES AND MARKETS DIVISION OF AGRICULTURAL MARKET INFORMATION SYSTEM MARKETING RESEARCH AND INFORMATION SECTION MARKETING RESEARCH MARKETING INTELLIGENCE PROMOTION AND REGULATION SECTION MARKET PROMOTION MARKET REGULATION
3.1 Organization Structure and Functions 3.1.1 Marketing Research Unit The functions of this unit are: To conduct customer needs assessment and provide information to farmers, livestock keepers, domestic traders, processors, importers and exporters To assess market potentials
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To analyse market shares, distribution channels, demand and supply, sales and market development
The mentioned functions are accomplished by conducting market surveys and participation in commissioned studies. In general, the activities of this unit involve data collection, analysis and dissemination of research findings. 3.1.2 Marketing Intelligence Unit This is unit is involved in gathering of time series data from various markets by interviewing market participants e.g. wholesalers and retailers. Regional and district market monitors report what is happening in their markets to the central data processing unit in the Ministry. Other sources of its information are publications i.e. books, newspapers, trade periodicals; large-scale storage and processing facilities. Types of data collected include commodity prices, volumes of trade, marketing costs, commodity quality etc. In general activities of this unit involves gathering of time series, data analysis, projection and forecast, storage and dissemination of information to stakeholders. 3.1.3 Promotion Unit Broadly, the functions of this unit include advertisement, promotion and publicity. To perform these functions the unit organizes trade fairs, exhibitions and provide support in building the capacity of private sector in promoting their products in domestic and international markets. Since individual companies market their own product, this unit is involved in coordinating and facilitating such activities. Also the unit is involved in generic promotion i.e. promotion of a commodity as an industry as opposed to brand promotion performed by individual companies. 3.1.4 Regulation Unit This unit is involved in regulating crop/commodity marketing boards and traders by setting standards and grades of products (inputs and produce), formulating rules and regulations of operations, coordinating and monitoring, setting standard measures and weights. 3.2 Other Agencies Involved in MIS Besides MDB there are other agencies involved in providing agricultural MIS. These are; 3.2.1 Food Security Unit (FSU): FSU was established in 1989 under the Ministry of Agriculture and Cooperatives. FSU has two sections, namely, Crop Monitoring and Early Warning System (CM&EW) and Strategic Grain Reserve (SGR). CM&EW is charged with the task of assessing (present and future) crop production and food supply in the country so that the government can take timely remedial measures on impending food deficit or surplus. This department has a countrywide system of assessing food production and supply through rapid field surveys, agrometeorological data, crop procurements and stock data.
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3.2.2 Kariakoo Market Cooperaion (KMC): KMC was established in 1981 as state company and is the largest produce market in Dar es Salaam. KMC is under the Ministry of Local Governments. KMC collects and keep records of price and volumes of crops delivered into the market. 3.2.3 Bank of Tanzania (BOT): BOT publishes quarterly and annual reports on agricultural production, export and import of commodities 3.2.4 Customs Department: This is department is under the Ministry of Finance and provides information on export and import of commodities including food and cash crops. Some of the information collected by this department are published by the Board of External Trade.
3.2.5 Private Sector Since the adoption of liberalized market policies there has been an increasing participation of private firms and organizations in providing MIS. Some of identified MIS providers are Business Care, and Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA). Business Care publishes market information in its weekly the Business Times. In addition to reporting secondary information from other agencies, Business Care has its own network for gathering market information. The Financial Times also sponsors and publishes market information gathered from various agencies discussed earlier.
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4. Factors Contributing the Changing Role of MIS 4.1 Policy changes Abandonment of central planned socialist policies and adoption of market-oriented policies have prompted MIS to change its mode of operation from reporting of official (fixed) prices set by the state agencies to monitoring and reporting of market prices as they are determined by demand and supply. 4.2 Government MIS Organization Structure During its inception MDB was under the Ministry of Agriculture. However, there have been frequent changes in the organization structure of the Ministry of Agriculture including split or merger of its departments, and transfer of its staff or functions to other Ministries such as Ministry of Regional Administration and Local Government, Ministry of Cooperatives and Markets, and Ministry of Water and Livestock Development. Such changes have affected the performance of MIS department in the Ministry especially in maintenance of database, coordination of market monitors in the regions and districts on one hand and data processing unit in the Ministry. Discontinuity of data series is one consequence for such frequent changes in the organization structure of the Ministries concerned. 4.3 Emergence of Private Agencies Offering MIS Participation of private sector in agricultural commodity trade and as providers of MIS has changed the environment at which government MIS operates. Private agencies are complementing government’s effort in providing MIS. Information collected by private agencies has a potential of serving as a verification mechanism for information collected by government agencies. However, there is a need to coordinate activities of various MIS providers to ensure consistence and avoid confusion to information users. Institutional networking in MIS
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providers is vital to ensure a more broader geographical and commodity coverage while avoiding duplication of efforts. 4.4 Commodities Changes During its inception MDB coverage was limited to few fruits and vegetables. Currently there are 27 food crops covered by the government MIS. Export crops such as coffee, tea, cotton, etc., have a more developed MIS than food crops. Since most of exports are of high value crops there is more involvement of private traders and crop cooperatives in providing various services including market information. MIS in export crops is more commodity-specialized. However, since liberalization of markets some non-traditional exports such as food crops (e.g. rice) some fruits, vegetables and spices are gradually penetrating international markets. Also domestically, more commodities are finding their way into the market and there have been changes in commodities in the market in terms of volume, type and form. For instance some commodities that traditionally were grown for subsistence in the past have become more popular and are now produced commercially. Also more commodities are now being processed and packed before are sold to consumers as a way of adding value to them. Rapid emergence of maize and rice millers has been witnessed in recent years. This has led to decrease in commodity volume in some markets as part of the supply is re-channelled into millers instead of being delivered directly into the open market. Such trend has been reported in Tandale market, which is the largest wholesale grain market in Dar es Salaam. Packaging of milled products is also increasing leading to multiplicity of product brands in the market. These changes have made it necessary for the MIS to change its mode of operation and revise its commodity basket. 4.5 Mass media for Dissemination of Market Information When MDB started all the media ware under state monopoly. Currently there are many private media such as radio, TV and newspaper. Some of the media are nationwide while others are local. MIS has to deliver information in media that will reach the target group. Competition in media has an implication in the cost of dissemination market information. 4.6 Changes in Market Structure and Location Currently government MIS covers 44 markets representing all major agro-ecological zones. Market information is collected mainly from producers (in rural markets), wholesalers and retailers. Since liberalization of markets there have been spatial changes in some commodity markets, possibly due to development of infrastructure (roads, railways and electricity), and increase in processing and large scale-storage. Processors and storage agencies are new intermediaries in the market structure. For example in the past Gairo was an important rural assembly market for maize and other staples along Dodoma-Dar es Salaam market channel. However, since electrification of the neighbouring Kibaigwa town, this market has shifted to the latter town.
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5. Summary of Findings, Conclusions and Recommendations From this review it is obvious that the government has done much effort to streamline the MIS in order to accommodate the recent policy changes. However, the below discussed observations suggest that the current government supported MIS still lags behind the rapid changing agricultural commodity markets hence recommendations are made on how to make MIS more efficient and timely in performing its functions. 5.1 Sampling (markets and commodity coverage) Currently government MIS covers 27 commodities in 44 markets all over the country. Such sampling was designed to get a good representation of markets and commodities, and possibly to give statistical validity to market information collected. However, managing such a large sample of markets and commodities to ensure continuity of time series has proven difficult. There are many gaps in the price series available in the Ministry database. It would be advisable to reduce the sample size by selecting ‘strategic markets’ and most important commodities while maintaining good representation of agro-ecological zones, assembly and consumers markets. Reducing the sample size will ensure a closer monitoring of data collectors while increasing their motivation through salaries, capacity strengthening (training) and provision of working facilities e.g. motorcycle and mobile phones. With the current tight budget of the Ministries, a manageable sample is necessary to ensure sustainability of financial support. 5.2 Type of Information Collected Though it is documented that volumes of commodities delivered to the market is collected, such information is scantly available in the database. Not much analysis can be done to price data without volumes. Monitoring of volume is quite complicated due to lack of transparency by
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private traders (in attempt to evade tax) and emergence of new market intermediaries (processors and storage agencies). There is a need to strengthen data collection mechanism possibly by increasing public awareness of the importance of MIS through media and legal enforcement through local government by-laws. Increasing public awareness is an appropriate task for the newly formed promotion and monitoring section of MIS. 5.3 Data transmission to processing centre Currently information from district and regional monitors is transmitted through radio-call network and postal mails. Due to increasing accessibility to internet, email and mobile phone network in regional and district towns, use of such technology where available could make reporting of information more timely and less costly. For example Vodacom Text Message cost US $ 0.06 per message regardless of the length. Sending an email in an internet café could cost TSh,. 300 –500 per 15 to 30 minutes. 5.4 Data processing The current database needs to be updated and a more user-friendly software installed. FOODNET has already started to support MIS department by providing computers to facilitate installation of new software. However, the department needs continued support in capacity strengthening in terms of IT and analytical skills. 5.5 Information Dissemination Most of market information is currently published in English newspapers. However, profile of traders in many market surveys indicate that majority of traders are primary school graduate. There is a need to have more market information publication on Swahili media. MIS stakeholders survey will reveal more information on popular mass media and programs. 5.6 Institutional networking To avoid duplication of information reported by various MIS providers there is a need to establish a network of agencies providing the service. Such networking will also allow more geographical (markets) and commodity coverage while minimizing costs of MIS. Inconsistence in information reported will also be avoided. 5.7 Units of Measurements in Reported Prices and Volumes Standardized measuring facilities are lacking in most markets and commodities. For example bags of maize and rice differ from market to market and seasons. When prices are converted into standardized weights such as Shilling per kilogram more precision is lost. The Regulation Section of government MIS need to undertake a study on how to cope with this and possibly regulate markets through legal enforcement. Use of standardized scales is gaining popularity in retail urban markets for some commodities. However, adoption of such practice needs more incentive and legal enforcement.
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5.8 Promote Participation of Private Sector in MIS There is an increasing participation of private sector in providing MIS. There is a need to promote more participation of private sector in providing MIS through public awareness campaign and contracting some of MIS task to private sector. However, due to high cost of providing MIS especially in geographically scattered market, the government should continue to provide this service and gradually withdraw where the private sector is taking over. 5.9 Changes in the Organization Structure of the Ministries Frequent changes in the organization structure of the Ministry is affecting negatively the performance of MIS especially in maintenance of database, coordination of reporting system for markets in the districts and regions to the central processing unit. Discontinuity of many time series and loss of records is the evidence of the negative impact of frequent changes in the Ministries. To minimize such negative changes at least at the Ministry level, MIS department need to be moved as unit instead of splitting or merging it with other departments.
References: Mdadila, J.M. (1996). A proposal to set up a comprehensive market information system for the agricultural sector. Marketing Development Bureau of the Ministry of Agriculture, Livestock and Cooperatives. Dar es Salaam, February 1996. MDB (1992). Wholesale trade in grains and beans. Marketing Development Bureau of the Ministry of Agriculture and Livestock Development. Dar es Salaam, January 1992.
List of Current and Past MIS Officials Interviewed 1. Mr Banda, E.T.Former Assistant Commissioner, Marketing Development Bureau, Ministry of Agriculture 2. Mr Mdadila, J.M and Cooperatives 3. Mr Ulaya, B. Director, Market Information Service, Ministry of Markets
Market Information Service, Ministry of Agriculture
4. Mr Massawe, B.D. Project Manager, Tanzania Livestock Development Project, Ministry of Water and Livestock Development 5. Mrs Mlote,S . Coordinator of MIS, Tanzania Livestock Development Project, Ministry of Water and Livestock Development
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Project 2
Technical report Preamble: The market information service is a new initiative aimed at empowering farmers by availing market information. The only prevailing market information service is through the Daily nation column provided by market information branch, Ministry of Agriculture. Our niche is the rural farmers in Kiambu and the larger Central Province/Nairobi. It was initiated by Immediate Communication after funding was received from FOODNET on 21-02-01. Our brochure is attached (annexe 1) Hiring of staff The post of market information compiler was advertised in College campuses and in both Nation and Standard on 7-03-01. A minimum of agriculture economics Bsc was requested. About 30 people responded and interviews were performed over a one week period. A scoring method was adopted and the person who scored most was hired. He has a Bsc(Agric. Econ.) computer training, work experience in marketing and managing a coffee estate. He commenced work on 12-3-2001 Preparatory work The initial work of the data compiler was to familiarize himself with the markets, get a feel of the sellers, traders and farmers. He had to identify the main markets in Kiambu dealing with substantial volumes. He also travelled to other markets in Central province for comparative purposes. His other mandate was to ask these people he met through a simple questionnaire, the radio they listened to, the times which were most appropriate, their trade products and volumes. This work was conducted from 12-03-01 to 30-03-01. Equipment acquisition. A computer, printer, UPS and surge protector were purchased early on as indicated in the financial report. Considering that the target area has rugged terrain, it was important that a reliable and strong motorbike was obtained. All available models for that purpose were costly way above the ceiling set especially due to the taxes. After a long period of searching, a new Jialing motobike was obtained at the amount set by the budget (200,000) and the balance of forty thousand would be met by the company. This price includes helmet, one weeks training and taxes. The delay in purchase of the bike, meant that the data collector had to use public transport means of travel. His travelling expenses in the month of March and April were all in that category. Radio programmes From the first instance, Kameme FM had been approached to air the programmes but they were charging too much (20,000 per announcement). We then approached Coro FM who agreed to broadcast for 5 min 5380 sh/week information which was relayed to FOODNET. At that stage it was viable to air two programmes per week. We were later called by Kameme FM who had got wind of what was going on and who were still interested in airing the programme on commodity prices. They preferred daily commodity prices and covering Central Province which is their target audience. Our project covered only Kiambu (one of the districts of Central
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province) and our budget was 5380 shs per week for air costs. After some discussions, a compromise was reached. They agreed to reduce charges to 1000 sh/ programme per day for five days. This came to 5000sh/week. The information would be as a chart which was flexible and could be adjusted and not tied to a time frame. This was actually below the budget set earlier in the project for two days. We devised a cost-effective way of collecting information from four markets representative of central province to meet their needs by recruiting ex-high school market traders as field agents. This was to cover distant markets in Karatina, Thika, Kutus, Kagio. They would be paid 100 sh./call and make a reverse call. Their information would be counterchecked by regular survey visits. The idea seems to have worked so far
Execution of the radio programmes. The radio programmes have been going on daily since, 2-4-01. For each day, the markets which were active are presented. This means there is a daily variation which creates interest. A typical daily programme is attached for reference. The format has been modified after two weeks to include varieties of peas, potatoes, Bananas. The farmers wanted the particular types of commodities defined as they command different prices. This information was from the market people. Another modification was the inclusion of rice, and French beans as commodities. We have included the weekly prices of meat live chicken, mutton and beef from the main private slaughter houses aired on Wednesday only.(annexe 2) Results There are different results depending on the respondents. Farmers: Many farmers are responding positively as reflected by the following examples: Case 1.0: in Kawangware, some farmers after hearing the programme, relayed the information to Timboroa (In Rift Valley province). The following market day saw a large supply of potatoes from Timboroa. Case 2.0: In the Kiambu market, one trader who buys potatoes from Kinangop observed that the farmers were fixing the prices on the information obtained from the broadcast. Consequently, the price for a bag of potato from the farm gate increased by sh100 as they now had a bargaining position Traders: Most traders were not quite receptive to the service. Case 1: One trader in Kiambu felt that the market information service was creating awareness to the farmers on market trends. She felt that the prices should be looked at from the consumers side as they too bought the produce according to the prices broadcast. Case 2.0 A major egg supplier located in the city centre noted that farmers get a raw deal since they are mostly price takers. She observed that with introduction of the information service farmers can have more leeway in setting prices for the eggs. This, she noted, would minimize price differences in the same market, for instance, Wangige market where she obtains her supplies. Case 3.0 This trader from Kiambu felt the market information service was a market spoiler. She felt that with the introduction of the information service the farmers were asking for a higher price as opposed to earlier times. She would rather withhold the information from the compiler.
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Our response to these challenges was that they should expand their vision and think beyond the farm gates. Since some of them had been in business for a long time they should utilise the market information services to obtain prices of commodities in far away markets and organize efficient means of travel to obtain better price margins. They could also think of adding value to these commodities like better packaging or higher grading Challenges. Lack of homogeneity in unit measurements. Potatoes, cabbages, green maize and carrots In some cases eg. maize, cabbages, the units are packed in a truck and delivered to the market. In some cases, there is variation of the bag sizes from big to small. Conflicting interests, some traders want high consume prices to be announced so they can sell at a higher price. Others want low producer prices to be announced so that farmers sell cheaply to them. Some are totally disinterested in people who are not buying Past and future challenges The project was initially designed to cover Kiambu district alone which was about five market: Wangige, Limuru, Kiambu, Githunguri, Marigiti /Nyamakima (Nairobi) . It was also meant to be aired on two days per week. Due to the challenge from Kameme FM radio and farmers that this was too restrictive and not comprehensive enough, five other markets were included. These are Karatina, Kutus, kagio, Thika and the Mwea region These areas represent a very productive region of Central Province especially in rice, horticultural produce like French beans and tomatoes. These inclusions have made the service very successful because of the wider reach and diversity of markets. Through negotiations, a daily programme for the week was also worked out within the same air time budget. Since market day schedules are different every day, it has meant that we have a different programme everyday which has increased the interest in the information flow. We had to design a simple way by using field agents in which we could obtain information from the distant markets by use of reverse telephone calls. Their re-numeration may need topping up to increase motivation once reliable agents have been identified. This has, however, lead to an increase in our telephone bills an item which was not covered in the initial budget.. It has also meant a more frequent and distant field validation of the data. From the information gathered so far, the area of interest is covered by the two radio stations. Kameme FM is popular in Kiambu and Nairobi environs but has a weak signal and is therefore not heard in the five distant markets mentioned earlier. Coro FM on the other hand was started only a few months ago but has a strong signal in all these areas mentioned. It may be viable in future to consider having both stations air the prices but with different formats.
Schedule of activities Date 5-03-01 9-03-01 12-03-01 Activity Data collector interviews Market familiarization Results One hired Set-up and Comments BSc. Agr . econ 5 markets
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30-03-01 2-04-01 30-04-01 17-04-01 18-04-01 Radio market prices Format modification Supplement
contacts established Daily prices mon-friday More informative Weekly livestock prices
9.30 pm kameme FM
Wednesday programme
Partnership building MoA: We are in contact with MoA official Mr Mushangi in evaluating the effects of the programme and visited field officers in the Ministry of Agriculture KWFS (Kenya women Finance Trust) This is a credit providing institution which targets women in the rural areas. We have visited Kenya women finance trust based in Karatina and expressed our wish to be associated with their members as regards market information and its use to their members GTZ-PES - This is a GTZ funded project with the mandate of assisting private extension agents in formulating their work to suit farmers. We are liasing with them so that they can facilitate a stakeholders forum for farmers, consumers, input providers and others. The objective would be to 1) Get a feedback on the service so far. 2) Identifying problems and challenges and mapping the way forward. 3) Identify possible partners for the future sustainability of the programme. Conclusion. In conclusion, the services have been very successful according to many farmers and some traders. They have adjusted to these services and some have become daily listeners and look forward to comparing prices in the different markets.
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Project 3
(FIRST DRAFT) Marketing Opportunities for cassava based products: An Assessment of the Industrial Potential in Kenya
Prof. Edward E. Karuri Prof Samuel K. Mbugua Dr. Joseph Karugia Kelly Wanda John Jagwe
February 2001
University of Nairobi, Department of Food Science Technology and Nutrition Foodnet / International Institute of Tropical Agriculture
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CONTENTS
PREFACE .........................................................................................................................................................20 ABBREVIATIONS ...........................................................................................................................................21 ACKNOWLEDGEMENTS ..............................................................................................................................22 SUMMARY.......................................................................................................................................................23 1.0 INTRODUCTION .......................................................................................................................................24 1.1 OBJECTIVES OF THE STUDY ......................................................................................................................24 1.2 METHODOLOGY ........................................................................................................................................24 2.0 INDUSTRIAL DEVELOPMENT IN KENYA ...........................................................................................26 3.0 CASSAVA PRODUCTION.........................................................................................................................28 4.0 CASSAVA MARKETING ..........................................................................................................................31 5.0 CASSAVA UTILISATION .........................................................................................................................31 5.1 CASSAVA CONSUMPTION IN KENYA ..............................................................................................31 5.1.1 INTRODUCTION ..............................................................................................................................31 5.2 CASSAVA UTILIZATION IN UGANDA ..............................................................................................36 5.2.1 INTRODUCTION ..............................................................................................................................36 5.2.2 PREPARATION OF CASSAVA PRODUCTS ..................................................................................................36 5.3 FOOD TYPES PREPARED FROM CASSAVA IN THE SIX COSCA STUDY COUNTRIES. ..........37 5.3.1 COOKED FRESH ROOTS ................................................................................................................37 5.3.2 CASSAVA FLOURS ..........................................................................................................................38 5.3.3 GRANULATED CASSAVA ...............................................................................................................38 5.3.4 COOKED GRANULES ......................................................................................................................38 5.3.5 FERMENTED PASTES ....................................................................................................................39 5.3.6 SEDIMENTED STARCHES .............................................................................................................39 5.3.7 DRINKS WITH CASSAVA COMPONENTS .....................................................................................39 5.3.8 NON-CONVENTIONAL FOODS ......................................................................................................40 6.0 STARCH. ....................................................................................................................................................41 6.1 PRODUCTION OF STARCH ..........................................................................................................................41 6.1.1 Cassava starch. ..................................................................................................................................41 6.1.2 Cornstarch .........................................................................................................................................41 6.2 HISTORY OF STARCH PRODUCTION IN KENYA ..........................................................................45 7.0 SURVEY FINDINGS ON CASSAVA STARCH ........................................................................................46 7.1 RESULTS AND DISCUSSION. ..............................................................................................................46 7.2. OVERVIEW OF THE KENYAN STARCH MARKET. .....................................................................66 7.2.1 Paperboard.........................................................................................................................................67 7.2.2 Paper..................................................................................................................................................67 7.2.3 Textile ................................................................................................................................................67 7.2.4 Pharmaceutical ..................................................................................................................................68 7.2.5 Food Processing.................................................................................................................................68 7.2.6 Plywood and paperboard ....................................................................................................................69 7.2.7 Utilisation in feeds ............................................................................................................................70 7. 2.8 Other potential uses of the cassava ....................................................................................................71 8.0 CONCLUSION............................................................................................................................................73 . ......................................................................................................................................................................73 9.0 REFERENCES ......................................................................................................................................73
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PREFACE This study was carried out by the Department of Food Science Technology and Nutrition of the University of Nairobi, in collaboration with Foodnet which is a regional network promoting marketing oriented research in order to identify opportunities for value added processing of agricultural products. Funding was provided by USAID through ASARECA, a sub-regional research organisation coordinating the Foodnet network Prof. Edward E. Karuri, Prof. Mbugua and Dr. Joseph Karugia of the University of Nairobi and Kelly Wanda and John Jagwe of IITA-Foodnet wrote the report.
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ABBREVIATIONS ASARECA IITA KAM CPC SBA USAID Association for Strengthening Agricultural Research in Eastern and Central Africa International Institute of Tropical Agriculture Association of Manufacturers of Kenya Corn Products Corporation (Kenya) Starch-Based Adhesive United States Aid for International Development
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ACKNOWLEDGEMENTS Much effort has gone into the preparation of this report. We wish to appreciate first and foremost the co-operation that we received from the personnel in the industries visited in the various parts of the country. Their willingness to provide us with relevant information without fear despite our calling on them at very short notice was very encouraging. Special thanks go to those who embraced our effort and were willing to participate in future industrial trials. We would like also to thank all the staff of the Department who tirelessly devoted their time in supporting this survey. Lastly, it ought to be pointed here that without the financial support from USAID through the Foodnet ASARECA network this report would not have been written and published.
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SUMMARY Since the era of development aid in Africa, research efforts have been focused on increasing agricultural productivity mainly through improved technology at the farm level. In spite of such programs, rural household incomes have largely remained low thereby perpetuating the relatively higher poverty level with all its negative consequences notably, low savings, low investment, low productivity and low incomes. It has now been increasingly realized that real benefits to rural communities are going to come from forward linkages of rural producers to more stable and higher value industrial markets. In turn industry too stands to benefit from increased rural household incomes in terms of higher effective demand for industrial products. Therefore, this report presents findings on the current state of the Kenyan market for starch, starch-based adhesives and high quality cassava flour for industrial purposes. An assessment of the potential for locally made cassava-based products to substitute for existing raw materials has also been attempted. KEY FINDINGS The total market for starch-based products in Kenya is estimated to be over 12,000 MT per annum. A bigger portion, about 60%, goes into the brewery industry. Other major consumers include paperboard, paper and the food sector. Native maize starch dominates the market for starch. Modified starches are not significant. This is mainly produced locally.
Cassava starch has the potential to substitute maize starch in the paperboard industry. Some of the industry in this sector had used cassava starch before which they found preferable. However, use was discontinued due to inconsistency in quality and erratic supply. The manufacturing costs are high in the local scene because of inefficiencies in the production chain. At the moment production and supply of cassava starch is low and not timely. This was attributed to higher costs of local production, poor infrastructure and low raw material production
The potential use of cassava in animal feeds has not been exploited in Kenya. This is mainly due to lack of information especially in terms of the processing steps and the rate of substitution of cassava for maize in the commercial animal feeds.
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1.0 INTRODUCTION The economy of most of the developing countries is still largely based on agriculture. However, if agriculture in the developing countries is to contribute to real growth and development in these countries, the link between it and industry has to be developed and strengthened. This would in turn then offer alternative and cheaper sources of raw material to industry while at the same time offer the much-needed internal market to stimulate industrial production. 1.1 Objectives of the study This study aimed at making a rapid and detailed investigation of the existing industrial markets for starch-based products in Kenya and to assess the potential for cassava based products to replace or partly substitute existing raw materials. In addition, an attempt was made to identify firms within the respective high priority industries that researchers could work with to achieve market penetration and assess consumer acceptability. Survey effort was concentrated in the towns constituting the pinnacle of Kenya's industrial base and those around the production areas. These included Nairobi, Mombasa and Nakuru 1.2 Methodology The design of the survey followed a sub-sector approach and the technique employed involved conducting unstructured and informal interviews in addition to directly observing the critical stages in the production-transformation line wherever possible. Also, sound secondary data sources were relied upon whenever possible. Prior to the interviews contact with the respective business associations was established and a list of potential firms compiled. Through these preliminary visits, the objectives of the survey and its expected outcome were explained and appointments booked for the primary visits that were to follow. A deliberate attempt was made to contact key informants in each of the categories. Thus the sample was purposively selected to include respondents from each of the relevant categories identified during the literature review as potential raw material users. Rather than concentrating on numbers, the focus was placed on contacting key firms in the industry in order to obtain a more representative sample. For each industry to be visited, questions (guidelines) focusing on key production and marketing activities were developed. The semi-structured informal interview guidelines were not written up in the form of a formal questionnaire but they were drawn up as checklists of key issues and topics. Once the survey team was familiarised with the detailed questions of the
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original checklist (approx. 7 pages), a shorter version of the latter (i.e. 1 – 2 pages max.) was found useful to stimulate a free-flowing discussion with members of the industries. Researchers formed two different groups comprising of at least two a technologist and an economist. This combination was found to be very useful both for the research team and the industries visited. It made it possible to understand the relationship between technology and economics and also recent technological developments in the various concerned areas. A report about each industrial visit made was compiled after the interview, relying on the checklist to make sure that no issue had been overlooked. It was important that note-taking should not inhibit a free flow of discussion. This effort to keep the interviews informal seemed to encourage frankness on the part of the respondents. For far away firms, where bookings could not be made by telephone due to various reasons, visits were nevertheless made. This form of “cold-calling” was generally accepted, and useful data was obtained. However, there is a danger that without prior appointment key individuals might be missed. In this case, another visit was obligatory. Responses from each interview were carefully compared with the responses from other interviews carried out with firms in the same category. This approach was conducted through meetings of the entire research team, which were designed to: • • • • • Ensure that all the collected data had been summarised. Identify gaps in the existing information. Start forming hypotheses about constraints and opportunities within the marketing system. Assess the progress of the survey. And design a follow-up of the fieldwork where necessary.
The researchers also used the team meetings to refine their understanding of the roles, responsibilities and links within the production and manufacturing business.
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2.0 INDUSTRIAL DEVELOPMENT IN KENYA Agriculture dominates the economies of sub-Saharan Africa, where it accounts for 70% of total employment and 40% of the total merchandise exports. In this region the contribution of agriculture to GDP is 32%. Agriculture is the mainstay of Kenya’s economy, accounting for 26 percent of the gross domestic product (GDP) while manufacturing accounts for about 14 percent. Tea, tourism, coffee, and horticulture in that order are the main foreign- exchange earners (CBS, 1998). In Kenya one to two thirds of manufacturing value added is based on agricultural raw materials ( Jaffee, 1995). Many services are linked to agriculture. Food processing, beverage and tobacco industries are among those dependent on agricultural raw materials. Of the industries mentioned, the food processing industry is the single largest component of the manufacturing sector of most African countries. Since independence in 1963, the country has had mixed performance. In the first 10 years of independence, the country enjoyed high GDP growth rates averaging 6.5 percent per annum, low inflation, high job creation, and a relatively stable balance-of- payments position. During the 1973-1980 period the country’s record growth was by three major shocks. The first was the sharp rise in oil prices in 1973, which created considerable internal and external economic imbalance. In 1997-78, the price of coffee and tea rose significantly, which immediately improved the balance of payments position but subsequently created internal economic imbalances. The third shock was in the GDP of 5.2 percent per annum, reflecting a moderate reduction in the high growth rates achieved in the first 10 years of independence. In 1990, growth in the GDP fell to 4.3 percent and 1991 to 2.2 percent; by 1992, it was just 0.4 percent per annum. In 1993, the government introduced more and far-reaching structural reforms, including removal of price controls, removal of all import licensing, and removal of foreign exchange controls. These growth slowed to 4.8 percent in 1996 and declined substantially to 1.2 percent in 1997 (CBS, 1998). The food industry may be classified into formal and informal sector. The formal sector is classified into large, medium and small scale industries. The criterion for classification is based on the number of employees. Large-scale industrial units have above 50 employees; small-scale industrial units have below 20 while the medium scale industrial units have between 20 and 50 employees. A summary of some of the food industries is given in Table 2 below. On the other hand the informal sector consists of the cottage industry, family and the sole proprietor. After independence and up through the mid-1980’s the policies and direct investments of the Kenyan government favoured relatively large-scale industrial units in the food industry and elsewhere. Most of these large scale units were owned by multinationals and some by farmer co-operatives. After the mid 80’s the small scale to medium scale industrial units began to mushroom. This is mainly due to the high overheads incurred when running large scale industries. The food for export is processed mainly by the large-scale units while that for local consumption is produced by the medium to small scale industries. The informal sector has proved vital in supplying processed and ready to eat foods to domestic consumers particularly in towns.
The essence of food processing is to produce a high value food product. Processing begins with the articulation of consumer demand and leads to decisions to produce. This continues through
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the series of activities which produce and subsequently transform the crop or animal product in form, time and place to match consumer demand (Breimer, 1976). In Kenya the best established industry is the dairy industry. This transforms raw milk to pasteurised milk, dry skim milk, butter, cheese e.t.c. Which fetch a higher price. This industry is dominated by the private sector. The development of the commercial dairy production and trade can be divided into five historical stages as listed below. ? The origins of export oriented butter production (1900-1930’s) ? Discovering the domestic milk market (WW II- mid 1950’s) ? Dualistic development (late 1950’s to 1970) ? Market consolidation and the “publicization” of the private sector (1971- early 1980’s) ? High cost expansion and creeping liberalisation (mid-1980’s to present) Most of the foods processed in Kenya can be historically classified in the same manner except the first two stages.
Table 1. Classification of some the Food processing
TYPE OF INDUSTRY I) FOOD MANUFACTURING Slaughtering, preparing and preserving meat Manufacture of dairy products Canning and preserving fruits and vegetables Canning, preserving and processing of fish Manufacture of vegetable and animal oils and fats Grain mill products Manufacture of bakery products Manufacture of cocoa, chocolate and sugar confectioneries Manufacture of food products (N. E. C). Sugar factories and refineries Manufacture of prepared animal feeds II) BEVERAGE INDUSTRIES Distilling, rectifying and blending spirits Malt, liquors and malt Soft drinks and carbonated waters industries TOTAL NUMBER OF INDUSTIRES, GROUPED ACCORDING TO SIZE SMALL MEDIUM LARGE 6 3 11 4 10 14 7 1 12 17 8 1 42 15 4 17 2 4 11 3 1 73 7 25 52 1 5 21 9 2
2 2 3 239
3 1 6 102
1 4 5 66
Much of the new agribusiness investment over the past decade by foreign companies has been made by firms, which had already been established for a long time. Investments have been geared toward diversifying product lines away form commodities facing adverse market trends. Kenya has witnessed the diversification of foreign owned tea, coffee and sisal companies into horticultural production and trade (Jaffee, 1995).
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Gender in the food industry. Most of the large scale to medium scale units are run by the men. In Kenya, the women take charge only of the micro enterprise and the informal sector in food marketing and processing. Several Kenya’s small peri-urban firms including dairy processing are owned and/or managed by women including one that is considered to be the most dynamic single owned dairy company. The Table 2 below shows the ownership of micro enterprises in Kenya by gender. It is clear from the table that men dominate in the ownership of the food industry in Kenya. It is also evident that partnerships between men and women is not common.
Table 2. Ownership of micro-enterprises in Kenya by gender Gender of proprietor % Female Male Mixed Kenya 43 53 4
3.0 CASSAVA PRODUCTION Cassava is classified under roots and tubers, which is the class of foods that basically provide energy in the human diet in the form of carbohydrates. The term roots and tubers refer to any growing plant that stores edible material in the subterranean root, corm or tuber (FAO, 1990). The cassava is important historically for acting as a food security crop for various communities during tribal warfare and innovations where it was hidden under ground and for saving the Rwanda-Burundi kingdoms in 1943 when potato blight destroyed all their production. It also fed the Biafrans during the Biafran war in Nigeria in 1966-69.The spread of the cassava was facilitated by its ability to thrive poor husbandry and to tolerate drought. It originated in tropical America and was introduced in Kenya by the Portuguese and Arab traders (Jones, 1959). In Kenya as in the rest of Africa, the cassava is usually a subsistence crop grown mainly as food and only the surplus is sold. Cassava is consumed as a basic source of low cost calories or as a supplement to cereals. The proximate composition of the cassava is shown in Table 1 below. This table shows clearly that the crop is a rich source of carbohydrate. It has been documented that the cost of cassava is about 25 to 50 percent that of the locally produced traditional grains and pulses (Goering, 1979).
Food energy kJ 565 Moisture con-tent % 65.5 Protein g Fat G Table 1. Nutritive value of the cassava Total Fiber Ash P Fe K CHO (g) (g) (mg) (mg) (mg) and fiber 32.4 1.0 0.9 32 0.9 394 Source: FAO, 1972. Na (Mg) Thiamine (mg) 0.05 Riboflavin (mg) 0.04 Niacin (mg) 0.6 Ascorbic acid (mg) 34 Folic acid (ìg) 24.2
1.0
0.2
2
Cassava (Manihot esculanta crantz) is one of the major staple foods in Sub-Saharan Africa. It is estimated that Africa produces above 42% of the total tropical world production of the crop
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(FAO, 1978). Cassava is grown virtually throughout Kenya. However, the Western, Coastal and semi-arid (Eastern) regions of Kenya have the highest production in that order. Traditional utilisation in Kenya is limited to roasting and boiling of fresh roots for consumption in all the growing areas (Khaemba, 1983). In Nyanza and Western provinces of Kenya, roots are also peeled, Chopped into small pieces, dried and milled into flour for ugali. This is normally in combination with a cereal (maize or sorghum). In the Coast province cassava leaves are used as vegetable (Khaemba, 1983). In the Coast province cassava leaves are used as vegetable (Khaemba, 1983) while in Machakos and Kitui, cassava roots are used as a snack. The bulk of cassava produced in the country is used for human consumption and surpluses are processed in to starch or used for animal feed. However, the present production is adequate for both the demands of starch production and as a food source (Khagram,1983). The market for fresh cassava as a food is more lucrative than for starch extraction but the market for fresh cassava is limited (Karisa, 1983 ). Fresh cassava has a very short post-harvest storage life, and it must be used or processed into durable forms soon after harvest (Ayernor, 1981). Except for cassava crips, there is no commercial processing of cassava for human consumption. Other products such as deep-fried and sun dried cassava are produced but at a very small scale in the coastal areas. The cassava production in Kenya unfortunately seems to reduce with time as shown by Figure 1 below. This may be because of the high opportunity cost of production.
Figure 1. Production of Cassava over the years 1996 to1998
23% 43% 1996 1997 1998
34%
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Based on the data obtained from the Ministry of Agriculture, Nyanza province produces most of the cassava consumed in the country. This may be because of the cultural acceptability of the crop by the population living in the area. The communities living in this area utilise the crop for various traditional dishes. Central province on the other hand produces the least mainly because in the communities living in the area consider it a non-prestigious crop. The little produced in this area is used as cattle feed.
F IG U R E 1 . P r o d u t i o n o f c a s s a v a in Kenya
R IFTVALLEY NYANZA EASTERN COAST CENTRAL
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4.0 CASSAVA MARKETING In Kenya, cassava is marketed mainly as a fresh root. The marketing of the roots is through village markets situated at the areas of production. Some of it is transported to larger markets situated in the district towns. Processed cassava products are also sold at the markets centres and at residential areas. These processed products include sundried cassava crisps and deep fried cassava. The two latter products are mainly sold in the coastal region. The price of fresh cassava fluctuates depending on the season. In Nairobi for example the price is highest in May and lowest in June. In the market areas the cassava is marketed as heaps or in bags. There is need to standardise the quantity sold.
5.0 CASSAVA UTILISATION Fresh cassava has a very short post-harvest storage life, and it must be used or processed into durable forms soon after harvest (Ayernor,1981). Various communities in the region have found different methods of cassava. The main reason for processing other than making the food palatable is to remove the antinutrients in the cassava especially the cyanide. 5.1 CASSAVA CONSUMPTION IN KENYA
5.1.1 INTRODUCTION
Traditional cassava utilisation in Kenya is limited to roasting and boiling of fresh roots for consumption in all the growing areas (Khaemba, 1983). In Nyanza and Western provinces of Kenya, roots are also peeled, chopped in to small pieces, dried and milled in to flour for ugali. This is normally in combination with are a cereal (maize, sorghum or millet). In the coast province cassava leaves are used as vegetable (Khaemba, 1983) while in Machakos and Kitui, cassava roots are used as snack. The bulk of cassava produced in the country is used for human consumption and surpluses are processed in to starch or used for animal feed. Except for cassava crisps, there is no commercial processing of cassava for human consumption. This could be explored to make it more acceptable to a larger section of the population thereby increasing the demand for cassava products and the income of the farmer. The following discussion focuses in the preparation of different cassava based food by 7 communities in Kenya.
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Ì Embu tribe of eastern province ? Mucui Cassava roots, yams, potatoes and arrowroots are peeled, washed with a lot of water, sliced in to small pieces and mixed with meat. The mixture is fried in oil with onion to taste. Water is added and the mixture is left to boil until cooked. Mucui is served and eaten as a complete meal. ? Roasted cassava Whole cassava roots are peeled, washed, either split in to smaller pieces or left intact as dictated by size, placed on burning embers and left to cook. Once done, the charred bits are scrapped off and the roasted cassava is served with tea. Ì Kamba tribe of eastern province. ? Mukimwa Cassava roots are peeled, washed, sliced in to small pieces (chips) and mixed with green maize, par-boiled beans, par-boiled cowpeas or par-boiled green grams. The mixture is fried in oil with onions. Water is added and left to boil until cooked. After adding salt Mukimwa is served as a complete meal ? Mulikyo Cassava roots are peeled, washed, sliced in to 2 or 3 big slices and placed in a cooking pot. Water is added and left to boil until cooked. It is served with tea or milk for breakfast. ? Raw cassava This is prepared by peeling, washing and slicing cassava roots in to 4 or more slices. The pieces are spiced with a mixture of salt and ground chilli and eaten as a snack. Ì Luo tribe of the Nyanza province ? Ugali or kuon Fresh cassava roots are peeled, washed and sliced into chips, which are then sun dried for a period of 1-to2 weeks. The sun-dried chips are then mixed with dried maize, sorghum, or finger millet at the ratio of 2:1 and the mixture is milled into fine flour. The flour is put in boiling water and stirred into a semi-solid porridge called ugali or kuon, which is then served with either, smoked fish, smoked meat or okra soup. ? Busaa (a local beer) Cassava roots are peeled, washed and sliced into chips, placed and stored in a tightly closed darkroom. The cassava is removed from the sack after 1 week and sun dried for a period of 14 days. The dried cassava is then mixed with dry maize and pre-germinated finger millet that has been sun dried for 2 weeks. The mixture is milled in to flour and prepared in to ugali or kuon. The ugali is broken into small pieces, which are then sun-dried for 3 weeks then milled into
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flour. The flour is placed in a big earthen pot where 40 litres of water is added, stirred and boiled to produce a light porridge or gruel called Busaa. After cooling, the Busaa is ready for drinking. It has been locally nicknamed two in one; it is a beer as well as a food. ? Mariwa Cassava roots are peeled, washed, split into 2 pieces with the central pith removed and placed in a pot with 1 litre of water (strictly 1 litre to prevent the cassava from absorbing water and becoming watery). Salt is added and the pot is covered with either pumpkin or banana leaves on top of which a metal lid is placed and sealed with cow dung to become airtight. It is left to boil for 30 min after which it should be properly cooked. Mariwa is served with sour milk or milk for either lunch or supper or with tea for breakfast. 3.4 kuogo cassava roots are peeled, washed, placed in a sack or large baskets and stored in a dark cold room for a week. During storage, the cassava roots develop moulds and become soft. The roots are removed from the sacks and crushed in to small pieces, spread and sun dried for a period of 7 to 14 days. The dried roots are mixed with either millet, sorghum or maize and milled in to fine flour which is added in to boiling water, stirred and prepared into either light porridge (nyuka) or thick porridge (ugali). The ugali is served with fish, green vegetables or any stew. ? Chapati The flour obtained in the preparation of kuoga is mixed with wheat flour and kneaded into dough. Small balls of the dough are spread into thin disks, which are then pan fried to produce chapatti. Chapatti is served with tea for breakfast or with fish or any stew for lunch or supper. ? Ugali This dish is prepared for someone going on a long journey. Cassava roots are peeled, washed, sliced into small pieces and dried for 7 to 14 days. The dried pieces are mixed with finger millet at the ratio of 4:1 and milled into fine flour. The flour is added in to boiling water, stirred and prepared into either light porridge (nyuka) or thick porridge (ugali). The ugali may be served with fish, green vegetables or any stew. Ì Baluhya tribe of western province. ? Ugali or Obusuma Cassava roots are peeled, washed and sun dried for about 6 hours to get rid of excess moisture. The semi-dried roots are heaped in a corner of the kitchen and covered with a sack, a piece of cloth or canvas for a period of 3 to 5 days. The mould formed during this period is scrapped off with a blunt knife and the soft roots are put on a clean floor and crushed with stone in to big soft pieces. The soft pieces are sun dried for a period of 12 to 14 hours. The dried roots are mixed with sorghum, millet, or maize and milled in to flour. Alternatively the dried roots may be milled into flour without any cereal. The cassava: millet or sorghum ratio is usually 4:1 and cassava: maize ratio is 2:1. A cassava: maize mixture is not popular. The flour is added to boiling water and stirred until it cooks into either ugali (thick porridge) or uji (light porridge). The uji is a beverage while the ugali is served with fish, meat or any green vegetable.
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? Boiled cassava Cassava roots are peeled, washed, chopped into small pieces, placed in a pot with boiling water and boiled soft or completely cooked. Salt is added during boiling and the dish is served with tea or light porridge. ? Roasted cassava Unpeeled cassava roots are placed on glowing embers until cooked. The roots are peeled and served with a beverage. ? Infant light porridge Cassava roots are peeled, washed, sliced into very small pieces and sun dried for 12 to14 hours. The dried pieces are ground using stone grinders into very fine flour, which is added into boiling water and cooked into a light porridge. The porridge is then served to young babies. Ì Maasai tribe of the Rift Valley province ? Boiled cassava Cassava roots are peeled, washed, chopped into big pieces and boiled with water until cooked. The dish is served with tea or milk. ? Raw cassava Raw cassava is prepared by peeling, washing and slicing cassava roots. The pieces are then eaten as a snack in the field. ? Roasted cassava The cassava roots are peeled, placed on glowing charcoal and roasted until cooked. The cassava is served with tea or milk for breakfast.
Ì Kikuyu tribe of the central province ? Stewed cassava Stewed cassava dish is prepared from sweet cassava or low cyanide containing varieties. Cassava roots are peeled, split, sliced into small chips and boiled in water until soft or cooked. The cassava is fried with onion in oil after which water is added and the dish is served with any stew. ? Ugali and Ucuru Cassava is peeled, split, central pith is removed, sliced into small pieces and sun dried for a period of 3 to 7days. The chips are milled in to flour, added into boiling water and stirred to produce either a thick porridge (ngima) or a light porridge (ucuru). Ngima is served with stew while ucuru, a beverage, is served alone.
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? Cassava bread Cassava is peeled, split, the centre pith is removed, sliced into small chips and sun dried for a period of 3 to 7 days. The cassava chips are milled in to flour mixed with wheat flour and kneaded into dough from which bread is baked. The bread is served with tea for breakfast or with any stew for dinner. ? Roasted cassava Cassava is peeled, boiled and roasted on charcoal. Alternatively, the cassava is not peeled but placed on burning charcoal and roasted until properly cooked. The charred bits are scrapped off and the cassava is served with tea, milk, any stew or alone. Ì Coastal people of the coast province ? Mashed cassava with milk Cassava is peeled, washed and cut into small pieces. The pieces are boiled with onions in salted water until done and then mashed together. Milk is added and dish is served. ? Cassava meat stew The meat is washed, cut into small pieces and mixed with curry powder. Onions and tomatoes are cleaned and sliced. Meat is fried with onions until a golden brown colour is obtained. Salt and water are added to the stew. Cassava is peeled, washed, cut into small pieces and added to the meat stew. The mixture is cooked for 30 to 45 min until soft. Tomatoes slices are added 5 min before serving. ? Cassava-bean stew (kimanga) In preparing cassava bean stew one may use cowpeas or grams instead of beans. Beans are cleaned, washed and soaked overnight. Cassava roots are peeled and cut into slices. The beans and cassava slices are boiled together until soft and mashed. Onions and tomatoes are also cleaned, sliced and fried in oil. Salt, pepper and milk are added and the mixture is cooked for a few minutes, seasoned to taste and served. ? Cassava-fish stew Cassava roots are peeled, cut into slices and cooked for 20 min. Fish is cleaned and washed as well as onions and tomatoes, which are sliced. Cups of thick and thin coconut milk are prepared. The fish is put on top of the cassava slices and onions, pepper, tomatoes and coconut milk are added. The mixture is cooked until the fish and the cassava is done. Thick coconut cream is added and ladled over the fish. Season to taste and serve. A similar dish involves frying the fish with onions and tomatoes in a little oil. These are put on top of the boiling cassava and groundnut flour is added instead of the coconut milk. The juice of one lemon is also added. Dried fish could be used instead of fresh fish.
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? Cassava leaves Cassava leaves are washed, pounded and boiled in salted water for 60 min. Onions and tomatoes are cleaned, sliced and fried in oil. Curry powder, coconut cream and the cassava leaves are added. The dish is ready to be served with any carbohydrate. ? Cassava pudding Grated cassava roots are mixed with grated coconut and sugar. A banana leaf is cut in to two big pieces and softened over fire. Half of the cassava mixture is put on one piece of the banana leaf, folded and tied. The other package is prepared in a similar manner. Both packages are put in a greased tin or a small pan and baked in a moderately hot oven until brown. The cassava pudding could either be served hot or cold. A variation in a similar dish involves steaming the pudding instead of baking and groundnut flour could replace the coconut cream ? Fried cassava Cassava roots are split into 5-6 pieces and deep-fried in oil. The cooked cassava pieces are spiced with salt, pepper and lime or lemon to required taste. The dish is served and eaten as a complement to another meal or as a snack. 5.2 CASSAVA UTILIZATION IN UGANDA
5.2.1 INTRODUCTION
Cassava is a very important food especially to the low income group of people in Uganda. The traditional methods of processing cassava are boiling, baking, frying, sun drying, and either hand grinding or milling. Cassava can also be prepared mixed with broad beans, peas and sometimes meat. Composite flour is also produced usually consisting of cassava flour mixed with millet, sorghum or maize (corn). The main method of processing cassava is boiling. However, composite flour consumption is also significant and is the major method of cassava preservation. 5.2.2 Preparation of cassava products v Boiled cassava (‘mogo’ ‘otedo’ muwogo’) Fresh cassava roots are peeled, washed and boiled in water for 20-40 min until cooked. Mostly urban people may add spices, whereas the village inhabitants added salt to the cooking cassava. Some other foods like groundnuts stew, simsim paste, broad beans peas and, at times, meat were added to the cooking cassava and the mixture was called Aputta in Lira and Apach, whilst in Iganga it is called katogo. v Cassava paste (‘kwonmogo’ ‘chawda’) The cassava roots are peeled, sliced and then dried in the sun on mats, flat rocks, or specially prepared ground smeared with cow dung to reduce dust and dirt. The drying takes about 3-4 days, and the dried chips are then stored in old tins, baskets or granaries. When the paste is
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required, the chips are pounded then ground into flour, and added to boiling water with mixing until a consistent paste is obtained. v Cassava flour mixed with millet and sorghum (‘kwon kal’ kwonbel’ ‘obuita’ ‘mutama’) Cassava flour was mixed with either millet or sorghum and then a paste was prepared as in pure cassava paste. One part of sorghum was added to 2 parts of cassava and ground into flour, the resulting paste was called mutama. Millet was mixed with cassava and ground into flour; the resulting paste was called obuita. When one part of cassava is mixed with 4 parts of millet, the resulting is called kwon kal, whilst one part of sorghum added to 2 parts of cassava results to kwon bel. Some districts fermented cassava (obtained by slicing fresh cassava into chips and leaving them covered in a cool place for a day or 2 until the chips are slightly mouldy) for this use in which case the amount of cassava was reduced, and some people preferred this because of the flavour it imparted to the resultant paste. v Roasted cassava (‘mogo obulo’ ‘muwogo mwokye’) Cassava roots were placed in hot ashes or charcoal for 20-30 min. Roasted cassava was popular among school pupils who used it as a snack in school. v Fried cassava (‘mogo ocelo’ ‘muwogo musike’) Fresh cassava roots were peeled, washed, cut into small pieces and then deep-fried in oil. 5.3 FOOD TYPES PREPARED FROM CASSAVA IN THE SIX COSCA STUDY COUNTRIES.
5.3.1 COOKED FRESH ROOTS v Roasted cassava
The simplest way of preparing fresh cassava roots is roasting whole roots of sweet cassava varieties in the coals of burnt down fires. The burnt peel is scrapped off when the root is cooked and the white steamed inner part of the roots is eaten alone or with palm oil or stew. The taste of roasted cassava is influenced by the length of time the roots remain in the ground before harvesting, and the variety of sweet cassava used . v Boiled cassava The roots from low cyanide varieties may be boiled fresh after peeling, washing and cutting into small pieces. The pieces are usually submerged in boiling. Boiling in large quantities of water reduces or eliminates the small quantity of cyanide, which is also present in the fresh roots of sweet varieties. Boiled cassava is eaten with stews or vegetable soups. v Soaked boiled cassava Another variation of boiled cassava that is mainly a storage technique, is the ‘wet abacha’ found in eastern Nigeria. After the cassava has been boiled, the water is poured off and the boiled
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pieces are covered in cold water and kept in a cool place. Abacha is eaten as a part of the main meal. By changing the water everyday, the boiled cassava can be stored for 2-3 days before fermentation begins.
5.3.2 CASSAVA FLOURS
v Unfermented cassava flours The roots are peeled and cut into small chips immediately after the harvest and spread in the sun for drying. In dryer climates, like in northern part of Ghana, the chips may sundry in only a few hours. During the rainy season the chips are dried over the fireplace in the house. Roots or cuttings dried in the smoke need to be cleaned and scraped before milling in order to obtain nice white flour. The traditional methods for milling are pounding in a mortar or grinding on a grinding stone. v Fermented flours The fermentation of cassava before it is dried and milled is common where bitter cassava varieties are more important than the sweet varieties. Whole cassava roots are submerged in water from 3 to 5 days depending on the taste desired and the taste and the weather. A longer fermentation produces a sour tasting flour, which is preferred in some regions. Fermentation is also faster in hotter climates…the colour of the flour depends on the time used for sun drying. If the drying is not finished the same day, the product may start to ferment again or get mouldy. To shorten the drying time the fermented roots may be put in bags or baskets and pressed with stones or a screw press to remove excess water. In east Africa, fermentation is sometimes done in heaps without adding water.
5.3.3 GRANULATED CASSAVA
Roasted or gelatinised granules (gari) Gari is prepared by fermenting grated fresh cassava in sacks, squeezing out the excess water, and then frying the semi-dry granules in a minimum amount of oil to prevent sticking until a gelatinised crust forms. Yellow gari results from using palm oil to fry the raw grated chips. The longer the period of fermentation the more sour the taste of gari. Grating is either done manually or mechanically, with diesel-powered rotating grating machine. Grated wet cassava is then bagged or put in baskets and pressed to remove excess water in a variety of ways: from stones on wooden frames to hydraulic presses. Frying is usually done in large round earthen pots or iron pans. The end product can be stored up to three months in plastic bags or other containers. Gari can then be reconstituted with hot water and stirred to form a thick paste and eaten with soups and stews; it can also be mixed with cold water/milk and sugar and drunk as a snack.
5.3.4 COOKED GRANULES
Steamed fermented granules (atieke).
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Atieke are cassava granules, which are steamed after they have been mashed, fermented, dewatered granulated and semi-dried in the sun. Four different methods exist for the production of starter cultures used for the fermentation of the cassava roots: boiling, roasting or cutting fresh roots which are fermented for three days; a forth method uses a filtrate from cassava which has been boiled, pounded and squeezed. These starter cultures are added to fresh cassava during the mashing and influence the taste and the quality of the end product. After fermentation and dewatering, the mash is pressed and rolled to produce a uniform granule, sieving or winnowing may further improve it. In Cote d’ Ivore, atieka is eaten directly after steaming with stews and soups. The Hausa in Nigeria use pressed, sieved and fermented cassava granules mixed with onions, tomatoes and spices, to form cakes, which are then deepfried in oil. These cakes are called kwosai and are eaten as a full meal or as a snack between meals.
5.3.5 FERMENTED PASTES
Boiled fermented pastes The most common characteristic of this is the white colour and smooth texture of the boiled cassava pastes. Essential steps in preparation include, peeling, washing, (grating or cutting into finger-like pieces) fermenting in water, mashing and squeezing through a fine cloth or sieve. This raw paste is then boiled in water or steamed in wrapped leaves. The normal fermentation period is from 1 to 3 days, however in Ghana, the grated cassava is fermented for 7 days. Longer periods of fermentation result in a more sour taste, which is preferred by some consumers. After dewatering the fermented cassava is pounded into a fine paste, which is filtered through a cloth. The filtrate is settled and boiled in water and eaten with stews and soups. The sediment may be stored up to 8 days, depending on how long the cassava was fermented. The longer fermentation is positively related to longer storage ability.
5.3.6 SEDIMENTED STARCHES
v Tapioca
Cassava starch is made by peeling and grating fresh roots and stirring them in water in order to separate the fibre from the starch. The particles are allowed to settle on the bottom of the container, where it forms a white muddy cake. The water is then carefully skimmed off, and the cake is removed and further dried in the sun. The semi-dried starch may be roasted in iron pads until is completely dry to form tapioca. These granules are about 1 cm in diameter and can be eaten as a snack, or boiled as porridge. Alternatively the sun dried starch cakes can be pounded or milled into fine flour, which is used as a thickener in soups and stews.
v Laundry starch
Where cassava is being processed into gari on a large scale the water, which is pressed out during fermentation, is collected in large basins and allowed to settle. The starch so formed is not considered clean enough to eat and is used as laundry starch.
5.3.7 DRINKS WITH CASSAVA COMPONENTS
Cassava is used as a substitute for maize and other grains in the preparation of local brews. Cassava is also mixed with cereals to stretch out supplies and still arrive at a product, which
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resembles the original cereal based beer. Consumers generally give priority to high alcohol content ever taste. The type of yeast used influences the quality of the end product, especially in the brewing of local beer. The taste of distilled drinks is less affected by raw materials and therefore the proportion of cassava used can be high. Many different cassava products can be used, and even the lowest quality products still ferment to alcohol, such as flours, which are not properly dried or have become off-coloured.
5.3.8 NON-CONVENTIONAL FOODS
Product development especially in the line of production of me too products have been engaged in order to facilitate the utilization of the cassava by creating more outlets. Some of the nonconventional foods prepared from cassava include balanced foods, vegetable cheese processing, fortified sago and starch products, noodles and Vermicelli, nutritious food mixes, gold finger, cassava Rava, putto, Biscuits and cakes.
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6.0 Starch. Starch exists as the major reserve carbohydrate of higher plants, where it is generally deposited in the form of minute granules or cells ranging from 1 up to 100 µ m or more in diameter. Chemically, it is a polymer of glucose units joined by ? linkages. The ? linkages, being less stable compared to ß linkages of cellulose render the starch relatively liable. Starch exists as two polymers namely Amylase and Amyl pectin. Both polymers are made up of ?-D-glucopyranose units, the major component – amylopectin- has a branched structure while amylose, the minor component, has a linear structure. Most of the world’s starch supplies are derived either from grains (corn, sorghum, wheat, rice), the major root crops (potato, sweet potato, cassava, arrow root), or the pith of the sago palm. Since time in memorial various communities using traditional methods have produced starch. The development was based on the observation that a white insoluble granular material settled to the bottom when quantities of cut tubers were washed. A classical example is seen in the extraction of starch to prepare pot bammie by the Jamaicans. The steps taken in the production of pot bammie include: grating the cassava and mixing this with water, straining the pulp through a towel, allowing the mixture to settle, decanting the water, sun drying the starch and finally baking it (FAO, 1990). 6.1 Production of starch Starch was separated from other grains and from root vegetables such as potatoes long before corn was used as a raw material (Matz, 1970). John Biddies set up the first starch factory in the United States at Hillsborough, NH in 1802. He used potatoes. In 1842, Thomas Kingsford founded the cornstarch refining industry. He was the first person to extract starch from maize on a commercial basis.
6.1.1 Cassava starch.
There are many sources of starch and for the cassava starch to obtain a profitable and sustainable market share it must compete with other starches in terms of relative prices, quality and dependability of supply (Goering, 1979). It is therefore important to study its properties so as to market it appropriately. Its bland flavour, low amylose content, nonretrogradation tendency and excellent freeze-thaw stability makes it suitable for use in food processing (FAO.1990). When used as an adhesive it produces joints with high tensile strength and is hence preferred to starch (Balagopalan et al., 1988).
6.1.2 Cornstarch
The process initially used to extract starch on a commercial basis can be summarized as follows. The corn was placed in wooden, flat-bottomed tank covered with warm water and allowed to stand. After the corn was sufficiently softened it was ground in stone mills, sieved and washed on silkscreen shakers powered by reciprocating engines. The slurry that was washed through the sieves was poured in wooden tubs, treated with caustic soda and allowed to settle. After settling, the water was sent to the sewer, taking all the gluten
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and soluble materials with it. This settling process was repeated three times for each batch. The starch recovery could not have been more than 50% of the total starch available. Morden efficient corn refining plants, which do not empty other valuable products down the drain, are today in use. These in addition have laboratory facilities. In these refining plants the wet- milling process is used. The flow diagram of the wet milling process may be summarized as shown on Figure 3 below.
Cleaning operations. These involve passing the corn past powerful magnets, which remove metallic objects, which may have been introduced by previous handling. The cleaned corn is weighed on screen hoppers and sampled for quality. After sampling the corn is then cleaned by passing it over perforated screens. The upper screen has holes just large enough to let corn and smaller particles through and the lower screen holds back the corn, but lets cobs, sticks and stones through. High pressure is then used to separate the corn from other debris by density in cyclones. Steeping. The cleaned kernels are transferred to “steep” tanks and soaked for 36 to 48 hrs at about 120o to 130 oF. The water used contains some sulfur dioxide, which prevents germination and keeps down unwanted fermentation and other undesirable microbiological changes but permits growth of lactic acid producing bacteria. So as to minimize the cost of production due to water used and to prevent pollution and wastage of raw materials, steeping is carried out in counter current flow. The in coming water passes over the corn, which has been steeped the longest, ensuring removal of the maximum amount of soluble material. The steep water is then concentrated to 54% dry matter. Degermination After the steeping process the corn is now ready for the first milling operation degermination. De-germination, separates the oil rich germ from the starch, gluten, hulls, and fiber. The soft corn is then ground in attrition mills. The slurry from the mills, which consists of endosperm, germ, and fiber, is diluted with a carefully controlled amount of process water. This is then fed to a battery of hydrocyclones. The germ being lighter spins off the top, and the heavier endosperm and fiber flow out the bottom. The germ is then washed free of starch, dewatered and dried. Separation of hulls and fiber from starch and gluten. The wet mash of fiber, hulls, gluten and starch, which remains on the reels and shakers, is fed to mills, which grind the materials to a very small particle size. The reduction in size is differential due to the nature of the materials. The hulls and the fibers are not reduced in size as much as the starch and the gluten in the milling process. The fiber and hull is then separated from starch and gluten by screening over a series of D.S.M (Dutch Slate Mines) screens. Gluten-starch separation.
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Starch and gluten are separated using gravitational methods. Centrifugation is used in the separation process and the two products flow out of the centrifuge in two streams. Starch and gluten streams. The starch stream contains about 1 to 2 % protein and is purified to contain less than 0.3 % protein by passing it through many small hydrocyclones. In addition the starch is washed to remove the last traces of solubles The wet starch is dewatered on rotary vacuum filters, moving belt filters or basket centrifuges. The final drying takes place in tunnels (kiln) dryers, continuous belt hot air dryers, or in spray dryers The gluten after centrifugation is either separated by sedimentation in large tanks or more generally, is de-watered and de-starched in another centrifuge filtered and dried. It is then ready to be used as corn gluten meal or corn gluten feed, or processed to recover the protein, seen, which has many non feed uses (Matz, 1970).
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Cor
First
Storage
Steeping
Degerminatio
Germ separation
Grinding mill
Washing
Centrifugation
Surface Washing
Starch
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6.2 HISTORY OF STARCH PRODUCTION IN KENYA Tapioca starch factory CPC starch factory Starch importation data from KRA Starch exportation
data
from
KRA
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7.0 SURVEY FINDINGS ON CASSAVA STARCH 7.1 RESULTS AND DISCUSSION. Tapioca Limited Mombasa is the major cassava starch producer in the country. It currently produces ------ tones of cassava starch per year. In addition produces starchbased adhesives (SBA). The raw material – cassava roots is purchased locally from the neighboring coastal areas. The key manufacturers utilizing the cassava starch encountered in the survey are Goshrani printers, who utilize cassava based glue and Packaging Manufacturers (1976) Ltd. Mombasa who, utilize 1 tonne of cassava starch per month. The cassava starch is higher priced than the cornstarch in this country. The survey findings show that the cassava starch is sold at 40 Kenya shillings per kg, while cornstarch sells at 35 Kenya shillings per kg.
It is evident from the survey results tabulated on the Table 3 below that the price of the cassava starch is not the only constraint limiting it from reaching its utilization potential in Kenya. Other constraints include its high cost of production especially due to the large quantity of water required. This may be reduced by counter-current flow of water and other cost reducing measures.
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Table 3. The results of the survey findings on cassava starch. Organisation & Key contact Atta (Kenya) Limited P.O. Box 83272 Mwangeka Road, Mombasa Tel: 005-11-490864/5 Cellular: 005-72-410126 Fax: 005-2-490534 E-mail: [email protected] Contact person Rahim Lalji Marketing Manager Carlton Products Ltd. P.O.Box 78105, Nairobi. Tel: 02-55667. Contact: Raj Kutecha. Basic Information • • One of the major millers in Mombasa Main products include wheat and maize flour Relation to Cassava • Does not process cassava flour Current Situation • Only processes wheat and maize flour Next Steps • Firm thinks cassava flour cannot work in bread due to taste and quality General Remarks • Sensitise the public on the value of cassava This is a long term goal
? Producers of beverages and cooking aids
Carton Manufacturers Ltd. Mr Singh Tel: 540687 Visited by; Jagwe, Githaiti
The factory was established 25 years ago
? They do not use ? Corn starch is cassava starch used as carrier in cooking aids ? Starch is bought at CPC at KShs33/kg ? Requirement is approx. 1MT/month none The factory utilises 250 tonnes of maize starch per year and it is all purchased locally at a cost of Ksh 45 per Kg (factory del.)
? They need information on the potential use of cassava starch in their industry
? Workshop to train on uses of starch ? Could use starch if the application could be demonstrated
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Cartubox Industries EA Ltd. K.I.Estates Nakuru Tel: 037 215997 [email protected] Mr Njoroge Managing Director Visited by; Jagwe, Githaiti
They manufacture corrugated cartons, beehives and mineral water. The raw materials used to make the adhesive for the boxes are Starch, Caustic soda and Borax
Cassava starch was once used but it produced a yellowish product that was undesirable.
1 tonne of maize starch is utilised per year and it is purchased from CPC at a cost of Ksh.39 (ex.Factory)
A 1 Kg. sample could be availed
Cassava starch could be used if the issue of colour is rectified and if the cost is attractive
Centrofood Ltd P.O.Box 1068, Thika. Tel: 0151-21780. Fax: 015121982 Contacts: Mr. Mburu; Mr. Ndirangu Chandaria Industries Limited,
Baba Dogo Road, Ruaraka, P.O. box 30621 Nairobi. Tel: 802252/3/4/5 Contact person Mr. K.V. Bhatt, General ManagerProjects
? They produce juices and jams
? They have not used cassava starch
?
?
?
•
The firm was not using any cassava based products
•
It currently uses 100 tonnes of starch per year. It uses maize starch
•
Could explore possibility of replacing maize with cassava starch
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Continental Products Ltd. P.O. Box 13458, Nairobi. Tel: 02-530766. Fax: 02530712. Contact: Mr. Kariuki
? Producers of glue
? ?
They do not use starch They are willing to use cassava starch for the superior adhesive quality
? Users of corn starch ? Requires about 1-2 MT/month ? Purchase from CPC at KShs35/kg
? Could try cassava starch for its superior adhesive quality
? Need information on resourcing ? Potential users of 100 % starch
Corn Products Kenya Ltd. This is a multinational P.O. Box 1012 company with Eldoret sister companies all over the world. Tel: 0321 32511-6 Fax: 0321 33476 The following are the products Mrs Monica Ragui Customer Service Manager manufactured; -Maize starches (medical grade, natural grade) -Glucose Syrup Visited by; The following biJagwe, Githaiti products are also produced; -Animal feed ingredients -Maize germ for oil extraction -High protein meal The company imports starch - 49 -
It would be necessary to change the entire production line if cassava starch is to be produced. The decision to make cassava starch has to be made by the directors.
NB
Management does not favour the publication of any figures in terms of quantity or price of products manufactured
based glue and Cora gum from its sister companies in S. Africa • This is a big Dais Bakery (1996) Ltd bakery in Mombasa Arch Bishop Makarios Road P.O. Box 82802, Mombasa • It also Kenay manufactures Tel: 005-11-230494/5/6/7 biscuits E-mail: [email protected] m Contact person Kamal Shah, Director
•
•
•
•
•
In the past tried to use cassava flour due to shortages of wheat flour on the market However the percentage of fiber was too high and far above the recommended figure At the moment its no longer using cassava flour The product made of cassava was not of good quality It obtained the cassava from Tapioca
•
•
•
Currently using wheat flour in both bread and biscuits Using about 500 bags per day for bread and 100 bags per day for biscuits The main market is Mombasa and the surrounding areas
•
•
This bakery is currently faced with stiff competition from new firms coming into the market and is therefore willing to try cheaper alternatives Its hence willing to use the recommended percentage for cassava flour in bread
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Provide the correct information Provide the quality sample Test the product on the market This is one of the few firms in the bread industry that might provide a serious partner in product developing and market penetration It might be a good idea to work with a few firms in the bread industry so that others may follow
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East African Packaging Industries Ltd. Kitui Road, Off Kampala Road, P.O. Box 30146, Nairobi, Kenya Tel: 530176/7/8/9 531337/8/9 E-mail:
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[email protected]
Contact persons: William K. Gacheru, Factory manager Muchiri Tel: 005-733-734053 Mutua Tel: 005-72-725678 •
•
Its one of the major factories making corrugated boxes in the country It mostly sells into the local market It also exports boards to Uganda through its sister company PPL It accounts for about 25% of the starch used in paperboard industry On average it utilises about 30 to 35 tonnes of maize starch per month.
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Has used cassava starch before Cassava starch was abandoned due to inconsistency in quality Cassava starch was being got from Tapioca in Mombasa However, had found cassava starch better than maize starch as it would give more mileage Therefore willing to shift back to cassava starch if reliable supplies can be assured
Currently using maize starch which is obtained from CPC in Eldoret The cost of maize • starch is 35 Kenya shillings per kg delivered to the factory • The firm produces about 1200 tonnes of paperboard per month. • Specification for maize starch is as follows: Moisture - 11.5 to 12.5% Appearance - white Starch content 87-88% Ash 0.25 - 0.35% Protein 0.5 - 0.7% pH 4-5 Shelf-life 12 months Packaging - 50 Kgs
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Interested in using cassava starch • Would like to get technological data on use of cassava • Is not aware whether cassava flour can work and is therefore willing to try it out • Specification for cassava products were as follows: Appearance - white Starch content 86 - 87% Moisture content 12.5 13.5% Fibre content < 0.2% Protein < 0.1% pH 5.0 - 6.0 Shelf-life 12 months Packing 25 kg
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Should get information on whether cassava flour can actually work Otherwise needs to get information where can obtain reliable supplies of cassava starch at a competitive price
Golden Biscuits (1985) Ltd. Mr Anthony Tel: Visited by; Jagwe, Githaiti Goshrani Printers Contact person Goshrani Henkel E.A. Ltd. Outer ring Rd. Ruaraka Nairobi
Probably the 3rd largest biscuit manufacturer in Kenya They make Ice cream cones too Major stationery factory in Mombasa
None
At the moment uses cassava based glue
Manufacture adhesives and cosmetics - 51 -
none
They are not willing -Cheaper imported biscuits to try out a sample due from S. Africa are causing to high risk of loss serious competition however they would like to taste a product where cassava has -60-70% of the been used as part of the ingredients wheat is imported Uses about 100 kg of Firm insists it uses very small quantities cassava based glue Glue obtained from Tapioca in Mombasa at a cost of 40 Kenya shillings per kg At present they use 2 Kg sample of The usage of any kind of 12 tonnes of maize cassava starch could starch beyond 4% as an starch per year and be availed for trials ingredient causes the -Utilises 2,000 tonnes of wheat flour p.a. at a cost of Ksh 33 per Kg (factory del.)
Andrew Okeyo Technical Director Visited by; Jagwe, Githaiti
Starch is used increasing viscosity and wet tag and it is mostly used in ice-water resistant adhesives 300 tonnes of adhesives are manufactured per year Probably the leading biscuit manufacturer in Kenya. The also make Weetabix, Pasta, Unimix and fambics
this constitutes 4% of the ingredients used in making adhesives. The maize starch is purchased from CPC
shortening of the shelf life of the adhesive.
House of Manji Likoni Rd. Ind. Area Nairobi Tel: 535064, 545827, 555944 Fax: 541694 [email protected] Mr. Francis Nyamboka Quality Assurance Manager Visited by; Jagwe, Githaiti Jambo Biscuits (Britania) 1987 Ltd Mr Shetty General Manager Tel: 540698, 556613
They utilize 8,000 tonnes of wheat flour per annum at a cost of Ksh.29.5 per Kg. (cif Nairobi) They also utilise 6,000 tonnes of maize flour per annum and about 2,000 tonnes of Soya flour while making Unimix
A sample of high quality cassava flour and cassava starch could be availed for trial.
Availability, cost, energy content and fibre content should be taken into consideration.
-Among the two largest biscuit manufacturers in the country
none
9,000-10,000 tonnes Management of wheat flour are expressed a desire to utilized per annum. carry out tests with high quality cassava Wheat is purchased flour and cassava locally and some starch
The management was very much concerned with the following aspects of cassava namely; shelf life, fineness, taste, texture, gluten content, moisture & protein content
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Fax: 545660 [email protected]
imported from S.Africa Some starch is used in the process of making biscuits to improve taste and texture. About 12 tonnes of maize starch is used per annum at a cost of Ksh.40-45 per Kg. It is usually purchased from CPC (K) Ltd. ? They use about ? They specialise ? They have not used cassava 1MT/Month in production of juice, sauces starch ? Use only etc modified starch from CPC at Ksh 36/Kg ? They also use dextrose monohydrate and liquid glucose ? The business is ? They do not use ? They purchase in bread cassava flour bakers flour making directly from millers ? They produce 10,000-200,000 loaves/day - 53 -
A sample should be availed
and the availability of cassava.
Visited by; Jagwe, Githaiti
Jetlack Foods K. Ltd. P.O. Box 46238 Nairobi. Tel: 0151-54387. Contact: Mr. Bid; Mr. Shroff
? They would like to try to use cassava starch in products
? Supply some starch samples for trial ? Quality and price must be reasonable
Kenafric Bakers Ltd. P.O.Box 42056, Nairobi. Tel: 0151-55467. Contact: Mr. Mukesh Shah.
? They are willing to try composite flour
? Try the composite flours ? Obtain samples of flour ? They are concerned about the keeping quality, pricing, and acceptability of cassava flour products.
Kenblest / Kifaru Textile
Ltd., P O Box 581 Thika Tel: 0151 21671–5 Fax: 0151 21752 Mr Jeje Mills Manager, Visited by; Jagwe, Githaiti
Mills They make fabrics none and garments but using 100% polyester. When synthetic fibres are used, starch cannot bind to them hence is not required in any process. Starch can only bind to natural fibres. ? Beer brewing is their main business
Starch is not required
none
There are no prospects for cassava starch
Kenya Breweries Ltd P.O.Box 30131 Nairobi. Tel: 02-864423. Contact: Mr. ??/Ng’ang’a Cege
? They have not used cassava starch
? They use maize starch from CPC as an adjunct in the mashing process ? They use about 10,000 MT/Annum
? This would be a heavy user of cassava starch if they could be assured of the quality implications
Kenya Cold Storage Ltd. P.O.Box 41229 Nairobi. Fax: 02-331819;Tel: 02226165 Contact: Mr. Nurez Kurji
? Have been well established in handling meats/meat products
? Does not use cassava starch
? Uses corn starch as sausage filler ? Consumes 5-10 MT/annum ? Local purchase from CPC
? To try using cassava starch to replace corn starch ? The market is declining ? They would be concerned about the gelatinization temperature ? They would also be concerned about the filtration and handling steps in production ? Would like to have ? Obtain information cassava starch for ? Obtain sample tests
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Kenya Orchads Ltd P.O.Box 45065 Nairobi. Fax:02-537479, Tel:02541231. Contact: Mr. Jolly Thomas
? Well established in fruit juices, Jams, canned fruits/vegetable
? Have not tried cassava starch
Milly fruits Processors Limited P.O. Box 90522 Mombasa Kenya Tel: 005-2-485551/486357 Cellular: 005-72-411608 E-mail: [email protected] Mini Bakers Ltd. Oslo Road. P.O.Box 17592, Nairobi. Tel: 02-544845 Contact: Mr. Pai/Ghosh
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It’s the largest fruit processor in Mombasa Buys fruits from local producers
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Does not use cassava starch
? Consume 25? Interested in trying 30MT/annum out cassava products ? Starch as a soup thickener ? CPC local supply ? Costs Kshs. 32/kg ? Also uses glucose syrup • Uses maize starch from CPC • Uses small quantities i.e. 100 kg per month
? Information on cassava products ? If no functional difficulties cassava products could be used to replace corn products
? One of 15 other bakeries owned by Mini bakeries
? They do not use ? They purchase cassava starch wheat from millers and they use it directly without additives ? They produce about 20,000 loaves of bread /day ? They purchase wheat flour at 2950 Kenya shillings per 90Kg bag
? They would be interested in trying composite flours using cassava
Try experimenting with composite flours
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Packaging Manufacturers (1976) Ltd P.O. Box 98541, Mombasa, Kenya Tel: 005-11-434152/3/4 Fax: 005-2-433234 E-mail: [email protected] m Contact person Ketan M. Shah
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Manufacturers of high and low density polyethylene and polypropylene bags, sheeetings, tubings, and corrugated boxes Started in 1976 It’s the major cardboard manufacturer in Mombasa
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• Uses cassava starch from Tapioca equivalent to about 1 tonne • per month Starch is obtained at a cost of 40 Kenya shillings per kg Also uses 1 tonne of SBA from Tapioca at a cost of 60 Kenya shillings per kg All costs include factory delivery
• Supply of raw material is not consistent and at times delays The firm also has to pay in advance
Firm would like to see competition in the production of cassava starch as a way of eliminating supply constraints
Explore opportunities for using cassava flour and hence supply a sample of cassava flour If successful explore opportunities for farmers supplying this directly to the company
•
Packwell Industries Ltd. P.O.Box 46826 Nairobi. Tel: 02-630322 Fax: 02630321. Contact: Mr. Hemendra Patel/Mr. Dias
? Makers of corrugated cartons ? Starch is used as an adhesive/ binder
? They have used cassava starch from Tapioca Ltd ? They can use cassava starch if continuous supply is guaranteed
? They purchase corn starch from CPC at Kshs. 35/kg ? They require about 2-3 MT/month of corn starch 800 tonnes of maize starch is utilised per year at a cost of
? They will use cassava starch if supply is reliable
? They require information on suppliers ? Company can use 100% cassava starch
Pan Africa Paper Mills EA The factory produces 48,000 Ltd. P.O.Box 535 Webuye, tonnes of Kraft - 56 -
Cassava starch could be used instead of starch as long as it is readily available and if it
Bungoma Mr. Gatimbu Production Manager
paper and 40,000 tonnes of paper per year Starch is used in the process of sizing
Ksh.43 and it is purchased from CPC.
could be much cheaper.
Premier Cookies Ltd. Baba Dogo Rd. Nairobi Mr Patel Production Manager Tel: 802965/6 Fax: 802039 [email protected] Visited by; Jagwe, Githaiti Premier Flour Mills Ltd. P.O.Box 59307 Nairobi. Tel: 350113 Contact: Mr. Patel/Mr. Prabhaka
This is a sister company to Premier mills, one of the largest milling companies in Kenya It was established in 1974
Cassava starch was once used and it was discovered that a 10% substitution was acceptable. Beyond that, the shelf life was adversely affected.
About 2,000 tonnes of wheat flour is used per year and this wheat is mainly imported from Australia as grain. Wheat flour costs Ksh.30-33 per Kg (factory del)
2 Kg of cassava starch could be availed as sample for trials
When soft wheat is used, there would be no need to use starch. Starch is used in biscuit manufacture when hard wheat is an ingredient in order to counter the adverse effects of gluten.
? Main business is wheat flour milling
? They do not use ? They produce cassava bakers flour, biscuit flour and ? They produce home baking 100-200 flour MT/Month ? They do not use starch
? Interested in trying cassava flour for baking
? Try using starch to dilute the gluten/reduce wheat strength ? There is potential use of cassava flour and cassava starch when they is guaranteed shelflife of products
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Press Masters Ltd. P.O.Box 17560 Nairobi. Tel; 02-823044 Contact: Mr. Ochieng
? Produce corrugated cartons among other products
? They have used cassava starch previously
Prime Cartons Ltd.
Began in 1996 They manufacture corrugated boxes.
Once used cassava and it was acceptable.
Visited by; Jagwe, Githaiti Raiplywood Kenya Ltd. Uganda Highway Eldoret Mr Bainito Technical manager (Adhesives) Tel: 0321 33811-5 The main products are plywood and block boards The factory uses 7.2 tonnes of Urea formaldehyde glue per year, 60 Kg of tyros Occasionally dextrin is used as a filler. Visited by; Jagwe, Githaiti Wheat flour is used as an extender and a thickener. The starch and gluten in - 58 none
? They use about 2-3 MT of corn starch per month ? They purchase locally from CPC ? Price is kshs.36/kg They are using 12 tonnes of maize starch per year bought from Orbit Chemicals Mombasa at a cost of Ksh. 33 per Kg. 1,100 tonnes of wheat flour are utilised per year at a cost of Ksh 18 per Kg.
? They can use cassava starch to replace corn starch
? Establish the possibility of a constant supply of cassava starch ? Availability and quality of cassava starch are the main problems currently
The business is steadily A 50 Kg cassava starch sample could be growing. availed to them for trials
High quality cassava could substitute wheat flour up to 100%
wheat help in extending the glue to the entire surface of the wood.
Ray Pharmaceuticals Ltd. P.O.Box 22830, Nairobi. Tel: 02-536230. Fax: 02540361. Contact: Dhirendra Shah
? They specialise in pharmaceutical products producing tablets, capsules and syrups.
? They have not used cassava starch
RIVATEX Rift Valley Textiles Ltd. Kapsabet Rd. Mr Alex Kishuru Sales Manager Visited by; Jagwe, Githaiti
none The factory is under receivership and has not been in production for the last 3 years It used to deal with textiles 100% cotton and cotton garments. It had a capacity of producing 5 million meters of cloth per - 59 -
? They use corn starch pharmaceutical grade as a carrier in tablets ? Consume about 20MT/Annum ? They also use dextrose monohydrate and liquid glucose Not in production at the moment
? They will not mind using cassava starch of BSP/USP grade
? Experiment with cassava starch ? Quality is critical
It is alleged that cheap imports, smuggling and gross mismanagement have been the main causes for the collapsing of the textile industry in Kenya.
month. At 20% scale of operation, 60 tonnes of maize starch would be utilised per year for the process of sizing. . Manufacture tablets and injections Stop purchasing starch in 1998 due to a change of product range
none
Smithkline Beecham Likoni Rd. Ind. area Nairobi Eng. Nyambok Tel: 534241 Visited by; Jagwe, Githaiti
SunFlag Textiles Ltd.
Starch is bought in granules form that are purchased through buying centres in Europe
No prospects for using cassava starch since production of medical grade starch requires very high investment.
Kampala Rd. Ind. Area Nairobi Mr Sadya & Mr Ashok Plant Manager Tel: 559721 Fax: 559015
It is one of the largest textile manufacturers in Kenya Products include knitwear, fabrics and textiles
Cassava starch was once used in the process of sizing but it requires a temperature of 90oC to gelatinise as compared to maize starch that requires 68oC The higher the temp the greater the energy cost.
The factory utilises about 50 tonnes of maize starch per annum and it is purchased from CPC
A sample of cassava starch could be availed to their laboratory for further tests
Visited by; - 60 -
Jagwe, Githaiti Tapioca Limited P.O. Box 84059 Mombasa, Kenya Tel: 005-11221849,226538,226578,228 302, 222825 Fax: 005-11-222645,473033 E-mail: [email protected] Contact person Rajese Khagram Triclover Ltd. P.O.Box 17663, Nairobi Tel: 02-54173. Fax: 02540530. Contact: Mr. Aviv Mavu It’s the major cassava starch producer in the country Buys fresh roots from neighbouring areas for starch processing The costs of production are very high especially for utilities such as water
? Produce cooking aids such as baking powder and starch ? Produce juices and sauces
? They have not used cassava starch
Tropical Sunshine Ltd. P.O. Box Tel: 0151-54392 Contact: Mr. Talib
? They use corn starch as filler in their products ? They pack corn starch for sale ? They use 15-20 MT/Annum ? They do not use ? They use corn cassava starch starch from CPC at a cost of Ksh 33/Kg ? Starch consumption is 2-3 MT/Month ? They use starch as thickener for sauce
? They need information on possible use of cassava starch
? To try using cassava starch in their products ? They are not aware of any shortcomings in the application of cassava starch ? Experiment with cassava starch ? Concern over cost and availability
? Potential users of cassava starch in all their products ? Their market is growing
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Trufoods Ltd. P.O.Box Tel: 557700. Contact: Dr. Shah; Mr. Singh; M. Njiru
? Does not use ? Well established in cassava fruit juices, products jams, sauces ? Have not tried ? Exports to Arab cassava starch countries ? Major local market
? Uses 3 ton/month corn starch in custard ? Uses 300kg/month modified starch in sauces ketchup ? Uses 10ton/month liquid glucose representing 25% max. of total sugar ? CPC supplies starch and glucose syrup ? Cost of starch 33/=/Kg
? Interested to try cassava products ? Concern is flow properties ? Concern for cost ? Concern for shelflife ? Concern for availability
? Looking for further information for application of cassava products ? Cost is major concern. Cassava products could replace all corn products if quality is guaranteed.
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Unga Feeds Limited
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Dakar Road, Nairobi P.O. Box 41788 Tel: 005-2-541831/2 Fax: 005-2-541676/543688 E-mail: [email protected] Contact person James Mbugua, Production Manager Unga Limited
Ngano house Commercial Street, Industrial Area P.O. Box 30386, Nairobi, Kenya Tel: 005-2-532471/2 Fax: 005-2545448 E-mail: [email protected] Contact person Mrs. Faith Mutwiri Quality Assurance Manager
Manufacturer of animal feeds Mainly poultry feeds It’s the biggest in the country Subsidiary of Unga group of companies It’s one of the biggest millers in the country Processes a number of foods including maize flour, wheat flour Maize flour is the main product Has plans to produce composite flours or produces It's the leading manufacturing concern in Kenya producing several household consumer goods It enjoys an export market in the region with Uganda being a major consumer
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Has not used cassava products in feed making Firm doubts whether cassava is an effective source of raw material Wants to include cassava flour as one of the products.
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Currently using maize Thinks entire industry uses about 20,000 tonnes of maize per annum Maize is procured at a cost of 16 to 17 Kenya Shillings per kg Wheat grain is imported while the maize grain is procured locally Competition is stiff and the factory has undergone a major rehabilitation phase to try and reduce the costs of production
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Firm is of the opinion that for cassava to work, supply constraints have to be addressed It is interested in information regarding the use of cassava in animal feed Would like to get information on use of cassava flour in bread Firm believes once cassava bread is acceptable to the market then cassava composite flour can be promoted
Provide data on use of cassava in animal feed
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Provide recipe for bread using cassava flour
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Unilever Kenya Limited. P.O. Box 30062 Nairobi Kenya Tel: 005-2-532505 Facsimile 005-2-543912 E-mail: [email protected] Or [email protected] Or [email protected] Contact persons: Peter Karatu Technical Development Manager; Joyce Gathigi, Foods Development Manager , Sarah Hikonyo and Isaac Njoroge
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At the moment it is not using cassava products However it is seeking for a supplier of about 350 tonnes of cassava starch for use in its soap and detergent section It failed to secure cassava starch locally
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Currently using corn starch in producing Mchuzi mix Starch is used as a thickener in this product It uses about 1000 tonnes of corn starch in Mchuzi mix alone Starch is at the moment being used in Mchuzi mix alone Corn starch is procured at a cost of 35 Kenya shillings per kg, factory delivered Corn starch is obtained locally from CPC in Eldoret
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The company is interested in information on the properties of cassava starch compared with maize starch It is further looking for a credible supplier of cassava starch in the near future (by the end of June) It is willing to try cassava starch in its products but is only concerned about future availability of reliable supplies and at consistent quality
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Immediately contacts of world cassava starch producers should be availed Provide all the technical information on cassava starch properties This is a big company that is looking for cheaper alternatives that can work. There is already an opportunity as the company is looking for cassava starch
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A summary of the potential Cassava starch market by the above companies is given on Table 3 b below. The companies supervised utilise over 100 MT of starch. The first three consumption accounts for 83% of the starch utilised by the above companies. This is equivalent to only 0.8 % of the country’s starch consumption. It is then evident that promotion of cassava starch production in Kenya is a feasible venture. Starch is utilised in the pharmaceutical industry but if cassava starch is to venture into this market then medical grade starch must be produced. Another venture worth exploring is the use of cassava in composite flours. Cassava flour should be produced and used in optimal ration for the bakery industry.
Table 1b. Summary of the potential Cassava starch market. FIRM QUANTITY COST (35 PER (TONNES/Y KG) EAR) PACKWELL INDUSTRIES 36000 1260000000 NRB PRESS MASTERS NRB 36000 1296000000 CONTINENTAL PRODUCTS 24000 840000000 LTD KENYA BREWERIES LTD 10000 35000000 CASTLE BREWERIES 4000 140000 UNILIVER KENYA LTD. 1500 52500000 RAIPLYWOOD3 UNGA NRB1 PAN AFRICA PAPER 800 34400000 DAIS BAKERY LTD MSA1 CARTON MANUFACTURES 250 11250000 LTD. PREIMIER FLOUR MILLS1 NRB CHANDRIA INDUSTRIES 100 3500000 LIMITED SUNFLAG TEXTILES 50 1750000 TRUFOODS 39.6 1386000 TROPICAL SUNSHINE 36 1188000 THIKA E.A.PACKAGING NRB 420 1225000 KENYA ORCHARDS NRB 30 990000 RAY PHARMACEUTICALS 20 700000 TRICLOVER LTD 20 700000 PRIME CARTONS 12 396000 JAMBO BISCUITS 12 540000 HENKEL E.A 12 420000 JETLACK FOODS 12 432000
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CARLTON PRODUCTS NRB 12 396000 PACKAGING 12 480000 MANUFACTURERS CENTRO FOOD LTD 10 350000 KENYA COLD STORAGE 10 350000 NRB BEST FOODS LTD NRB 6 210000 MILLY FRUIT 1.2 42000 PROCESSORS LTD MSA CARTUBOX 1 39000 RIVATEX2 0 0 KENBLEST3 0 0 SMITHKLINE BEECHAM* 0 0 GOSHWAMI PRINTERS 0 0 ATTA (KENYA) LTD MSA 0 0 1 HOUSE OF MANJI UNGA FEEDS LTD NRB1 GOLDEN BISCUITS1 KENAFRIC BAKERS1 MINI BAKERS NRB1 PREMIER COOKIES1 Total cassava starch potential 115600.8 3764694000 Key: * Utilises medical grade Starch. 1 Produce flours and hence possible market for cassava based composite flours 2 No longer in production. 3 Using wheat flour as starch substitute
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7.2. OVERVIEW OF THE KENYAN STARCH MARKET. The total market demand for starch is currently estimated at about 12,000 MT. The partitioning of the starch produced is given in Table 4 below. Other cassava products include glucose and dextrose. The current utilisation of these products in the industry is given in Table 5 below. This is lower than the demand in the past. The downward trend is mainly explained by the collapse of the textile industry and competition from cheaper imports from the COMESA region.
Table 4. Partitioning of starch to various industries
Sector Paperboard Paper Textile Pharmaceutical Food processing Plywood 1997(MT) 1998(MT) 1611.5 1,185.4 2000(MT) 1,800 Market share(%)
Table 5. STARCH, GLUCOSE AND DEXTROSE UTILISATION PRODUCT Corrugator starch Paper starch Textile starch H/M pharmaceutical maize starch Corn starch snowflake 3400 L/M pharmaceutical maize starch Food grade H/M maize starch Brewers maize starch Food grade L/M maize starch Bakers maize starch Modified starch 43 BE/42 DE glucose syrup 43 BE/63 DE glucose syrup 45 BE/42 DE glucose syrup Amijel starch White maize dextrin Yellow maize dextrin Waxy maize dextrin Dextrose monohydrate 1997 (MT) 1611.450 1028.800 388.000 0.000 0.000 0.100 466.725 7378.900 775.150 796.850 5.850 5185.628 36.492 1009.464 0.500 6.000 27.250 0.150 586.650 1998 (MT) 1185.400 808.100 205.000 12.500 3.550 0.000 559.650 7761.105 952.500 923.450 55.608 4529.446 29.989 320.549 0.550 9.700 0.800 34.750 365.250
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Most of the starch is native and is derived from corn. However, the plywood sector uses wheat starch. Concerns here were mostly about price. Wheat starch was obtained at a much lower price than corn- starch. Local production accounted for most of the cornstarch that was used. On the other hand most of the of the cassava starch is at the moment being imported as local production costs are found to be higher. The resultant high price of the local cassava starch makes it difficult for it to compete in the market. Starch based adhesives were also used by the packaging industry and one of the firms reported using about 1 tonne per month.
7.2.1 Paperboard
This sector comprises 3 major firms and a number of other smaller factories. These accounted for over 50% of the starch requirements. Most of the firms including all the 3 major ones are located in Nairobi. This sector reported using cassava starch before although currently all the starch was corn-based and was produced locally. Use of cassava starch was discontinued due to inconsistency in both supply and quality The market demand for starch in the packaging sector was estimated at about 1800 tonnes per year. The price ranged from 39 to 45 Kenya Shillings per kg delivered to the factory.
7.2.2 Paper
Paper production in Kenya is the second major channel of starch utilisation. This industry consumes over 800 MT with most of it being consumed by Pan Africa Paper Ltd in Webuye. The starch utilised in paper production mainly goes into the production of Kraft paper, which is mainly used for packaging.
7.2.3 Textile
The textile industry in this country has virtually collapsed with the introduction of liberalisation, The once vibrant industry has had many of its factories which depended on cotton as an input shut down. Some of the factories were private while others were parastals. This resulted in loss of jobs and reduced the overall demand of starch in the country. Those still operational produce synthetic materials e.g. Polyesters, Nylon, etc., and do not use starch. However, with the new development i.e. African Growth Opportunity Act (AGOA). There are signs that cotton farming will be encouraged and textile revived. Now that textile business with USA market seems to be doing extremely well with the market share given to the developing world has been increased from 1.5 to 3.5 percent there is need for cassava starch to find a niche in this market.
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7.2.4 Pharmaceutical
Cassava starch is not utilised in the pharmaceutical industry mainly because medical grade starch is required. All of the starch used in this industry is imported. It is important that cassava starch is processed to meet the required medical grade starch requirements if it is to venture into this market.
7.2.5 Food Processing
Starch is used in various food products it performs various functions including Sweetening, as a flour, binding e.t.c. Ì Composite Flours Cassava flour should be incorporated in other widely used flours so that it can be used in two of the large food industry inputs Bread and Biscuit production. v Biscuits There are 3 major factories producing biscuits in the country. All of these are located in Nairobi. This food sub-sector utilises about 40,000 MT of wheat flour per annum. The cost of wheat flour for biscuits ranged from 29 to 30 Kenya shillings per kg In the past there were shortages of wheat flour, notably around 1990 and there was an attempt then by some factories to substitute wheat flour with locally produced cassava flour. However biscuits made from cassava flour were found to have a shorter shelf life. Beyond six months the biscuits changed colour. Also the fibre content was found to be high which affected the texture of the flour. Other problems associated with use of cassava flour included lack of commercial quantities, quality and low protein content v Bakery This sector comprises numerous firms enjoying small portions of the market. Not all of the bakeries could be visited. Competition was found to be stiff and all of the firms were interested in efficient methods of production so as to bring down the cost per unit of output. None of the bakeries was found to be using cassava flour at the moment. The industry was very sceptical that cassava flour could produce quality product.
Ì General
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Most of the manufacturers that had used cassava flour stopped because of quality inconsistency. There is hence need to maintain quality of the cassava if cassava starch is to compete for a profitable market share. Thus hazard analysis of critical control points (HACCP) should be carried out to provide quality assurance of the cassava. The market demands that cassava starch for use in the paperboard industry meets the following criteria: Moisture content Appearance Starch content Ash Protein pH Shelf life - 50 Kgs -11.5% to 12.5% - white - 87% to 88% - 0.25% to 0.35% - 0.5% to 0.7% - 4 to 5 - 12 months
Packaging
In addition, it was found necessary to promote awareness of cassava utilization as flour and in animal feeds. Information on the use of cassava flour in production of bread, cookies, biscuits and other baked products should be publicized in the country. This information should include recipes of some products. Cassava has been used for production of feeds includes pig feed (Oke, 1990). The information on the processing steps and ratios of the cassava meal added to the feed should also be publicized. Although the textile industry in Kenya has seen better days it is important to capture the little market available. The limitation of cassava starch utilization in this industry is it’s high gelatinization temperature (90 0C) as opposed to that of maize (68 0C). High gelatinization temperatures translate to high cost of production. Modifying the starch will eliminate this limitation. Modifying cassava starch and ensuring quality consistency will ensure that it has an advantage over maize starch in the brewing industry.
7.2.6 Plywood and paperboard
This is a sector where cassava based raw materials have a chance of being used in the short-run. The combined raw material demand for this sector is over 2000 MT per year. Cassava has already been used as a raw material in this sector and some industries expressed preference for its starch over cornstarch. The rural producers can also easily meet quality specifications for this sector, as standards are relatively lower.
Issues Factors that industry is concerned about include the following:
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• • • •
Quality consistency Timeliness of supplies Availability of supplies Competitiveness of price
Recommendations It is therefore important that production and supply studies be carried out to identify the likely constraints that may hinder supplies of commercial quantities to this sector Samples of the high quality cassava flour should also be availed to the industries for testing under different technological conditions and where positive results are obtained supply schedules should be looked into to plan for them well before hand. More information needs to be provided to all of the other firms within this industry and to enable them explore the potential for cassava.
7.2.7 Utilisation in feeds
A factor restricting the development of animal production in many developing countries is the cost of imported feed, which has often gone up several fold because of local currency with respect to world markets. If part of the feed could be substituted with root crops such as the cassava then part of the feed could be freed for human nutrition. The low protein, fiber and high content of soluble carbohydrates are notable features of the cassava root. Cassava tops, stems and leaves are also available as animal feed and are comparatively high in utilizable protein. The International Development Research Centre in Canada has recommended that cassava could be a substitute of up to 40 percent for maize in the nutritionally balanced rations of pigs without any deleterious effects, and up to 30 percent in poultry rations. It has also been reported that when cassava was substituted for maize in a poultry broiler ration at levels of up to 30 percent, there was no significant difference in the performance at all levels, but the 20 percent level of substitution was the most economical (Gomez et al., 1984). It required 215 kg of feed to produce 100 kg live weight with a 20 percent substitution. High levels of cassava intake are more acceptable for broiler than for layers. In the economic assessment of the rations, the least cost broiler diets containing 20 percent cassava meal gave the least returns while profitability increased with the level of cassava meal in the case of pig trials. In pig feed the performance was progressively better as the level of cassava in feed was increased. It required 339 kg of feed to produce 100 kg weight with corn - 70 -
alone, where as it required 337 kg and 331 kg respectively with 20 percent and 30 percent cassava substitution. Cassava may also be used as a substitute for maize in cattle feed. Cassava has been used as the main source of energy in dairy feeds, resulting in higher milk and fat yields and live weight gains (Pineda &Rubio, 1972). Similar results have been obtained for beef cattle and cassava- based diets gained significantly faster than those fed bran or corn and corn – based diets. On average about 246 000 MT of animal feeds are produced per year of this maize constitutes about 10 percent. Given that cassava can be substituted for Maize at the rate of 20% than over 4900MT of Cassava can be utilized in animal feeds in Kenya per year. In addition, the ministry of agriculture has reported that between 1993 and 1998 over 6.9 million cattle and calves were slaughtered for beef The pigs slaughtered over the same duration amounted to 4.2 million (CBS, 1999). It is evident from the data collected in the survey that cassava is not utilized in the production of animal feed in this country. From the statistics quoted above it is clear that the cassava industry has been loosing on this very important market. It is now time to take action and promote the use of cassava in the animal feed production.
7. 2.8 Other potential uses of the cassava
The products discussed above are those that represent the felt need of the market as it is now. In no way do these products do these products exemplify the potential of the cassava. One needs to have only needs look at the agro-industrial system for cassava given in Figure 3 below to understand that many other products could be produced from this priceless resource.
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Figure 3. An Agro-Industrial System for Cassava
Hammer
Protein Extractio
FIBROUS RESIDUE WASTE LIQUOR
Leaf
COMBUSTIO OR
ANAEROBIC FERMENTATION SYSTEM
STEM AND POWER
METHANE ( POWER AND
HEATING)
Cassava
WASTE LIQUOR
TUBERS
RECYCLING OF NUTRIENTS
TO SOIL
DEHYDRATION AND PELLETING
ANIMAL FEED INGREDIENT
STARCH REFINING
STARCH
FIBRE RESIDUE (ANIMALFEED)
HYDROLYSIS TO GLUCOSE
PROCESSING
AND/OR
GLUCOSE SRYRUP DEXTROSE MONOHYDRATE VITAMIN C
ETHYL ALCOHOL ACETONE, BUTANOL, CITRIC ACID E.T.C.
AND/OR
INVERSION
HIGH FRUCTOSE SYRUP
AND/OR
FERMENTATION FERMENTATION TO SINGLE CELL PROTIEN
SCP
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SOURCE: Mc Cann, 1976
8.0 Conclusions Cassava is widely used in Kenya by almost all communities, but has limited uses in terms of the products manufactured from it. Starch has potential for application in the food industrial subsector. The demand according to this study stands at over 100000 MT per annum. The food subsector takes only about 13% of the total. There is need for development of starch production to meet the demand. The only starch manufacturer produces erratically and at high costs. The flour is finding more acceptance in compositing with cereal flours for different local food preparations. There is also potential use of cassava flour in plywood manufacture. Industrialists have yet to fully utilize cassava in animal feed manufacture. The challenge in the utilization of cassava starch and flour lies in; convincing the end user of the safety of the products and possible use in diversified products, demonstrating high quality products from cassava. This calls for efficient information flow from the researchers to the manufacturers in terms of potential utilization areas, quality improvement and the assurance of sustainable supply.
. 9.0 References CBS, 1998. Kenya Demographic and Health Survey 1998. National Council for Population and Development Central Bureau of Statistics. Macro International Inc. Calverton, Maryland USA. 1999. CBS, 1999. Republic of Kenya Statistical Abstract. Ministry of Finance and Planning. Government Printing Press 1999- Nairobi. FAO, 1990. Roots, Tubers, Plantains and Bananas in human nutrition. FAO, Rome, Italy. Goering, T.J. 1979. Tropical root crops and rural development. World Bank Staff working Paper No. 324. Washington, D.C., World Bank. Gomez, G. Santos, J. & Valdivieso, M. 1984. Least- cost rations containing cassava meal for broilers and growing pigs. Symp. Int. Soc. Root crops. 6. Lima, 21-26 Feb. 1983,p.393-400, Lima, International Potato Centre. Jaffe, S., 1995. Perishable Profits: Private sector Dairy processing and marketing in Kenya. In: Marketing Africa’s High-Value Foods – Comparative Experiences of an
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emergent private sector. Eds. Jaffe, S and Morton, J. Kendall/ Hunt Publishing Company. Oke, O. L. 1990. Cassava Meal. In:Non-traditional feed sources for use in swine production. Eds. Thacker, A.P. and Kirkwood, N.R. Butterworth Publishers United States of America. Pineda, M. J & Rubio, R.R. 1972. Un concepto nuevo en el levantte de novillas para ganaderia de lenche. Rev. ICA, (7): 405-413
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Foodnet Project No: 4 PROGRESS REPORT ON PROJECT ACTIVITIES Period : January- March 2001
PROJECT TITLE : Marketing of cassava produce and products in Umutara and Bugesera regions of Rwanda for improved food security
Initially the project was supposed to be executed by World Vision Rwanda Program, due to a reorientation of that NGO from agriculture to social implications, activities are executed directly by farmer groups under the supervision of ATDT. So far World Vision technicians (in Umutara province) have helped us to conduct preparatory meetings with farmers to elaborate an implementation plan of the project. In Bugesera region, the drought which has prevaled there for more than 2 years has reached a pick of hunger which constitutes a handicap to start the post harvest project now.Nevertherless, the selected group has planted large fields of cassava in order to produce enough cuttings for further productions as well as to have row materiel to start processing with next year(2002).the group in Bugesera has identified the place where to install to processing equipments and the people responsible for all planned activities. Since the processing activity will not happen in Bugesera group this year, we are suggesting to start with 2 groups from Umutara .
Activities achieved
1. Umutara (with URUNANA farmers association) • • • • • Identification of the groups(2) and ressource persons Identification of the place and house to host the processing equipment Identification and nomination of farmers(3) to be trained in donkey rearing (whom then after will keep them at their farms). Identification and nomination of members of the group to be trained in the « project management ». Campain for large multiplication plots of cassava in the area by members of URUNANA farmers association in order to have enough row material to run the processing plants in the near future.
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2.Bugesera As mentioned above , due to the problem of cassava scarcity (roots) in this region, we are not planning any processing activity this year. This is the reason why I am suggesting to transfer the equipment to Umutara and start to processing units instead of one as initially scheduled in the project proposal. Farmers have just planted 2.5ha last November as a multiplication plot to start with for further dissemanation to the group in order to have enough material to process in the future.The idea was to have 11ha under multiplication in 2001 A season, but ISAR was not able to avail enough cuttings on time. 3.Planned activities for the next quarter(April to June ) • • • Training of farmers in donkey rearing Install processing units(2)and start processing activities Market studies for cassava products
4.Problems encountered in the quarter • Purchasing and transport of the processing equipemnt from Uganda by Foodnet was not done on time, it was expected to start the project with February, but to date only part of the equipment has been received. We are therefore requesting Foodnet to speed up the process of shipping the remaining parts of the equipment The outbreak of foot and mouth disease for animals prevailing in Rwanda for the moment will delay the importation of donkeys from Uganda . The Ministry of Agriculture , Livestock and Forestry has temporary declared a ban of importating animals in Rwanda till May this year.Movements of animals in the country are also forbidden now in most of the provinces ( including Umutara).
•
As already mentioned in the last quarterly report, initially this project was supposed to be implemented by World Vision Rwanda Program in partnering with 2 farmer groups , but due to a reorientation of that NGO from agriculture to social implications, activities are executed directly by farmer groups under the supervision of the ATDT research and extension liaison officer ( Speciose Kantengwa) as the one who prepared and submitted to Foodnet the concept paper for the project (on cassava processing equipment) at the time she was managing the agriculture department of World Vision Rwanda. During these last 2 months (April- May), we have received the equipments from Foodnet Uganda composed of the following : • 2 grain millers • 4 presses • 4 power graters • 5 chippers • 1 plastic roll ( for drying)
- 76 -
The group in Bugesera has received 1 press, 1 chipper and 1 power grater. The 2 groups from Umutara have received received each 1 power grater, 1 chipper, 1 grain miller,and 1 press. Farmers have got organized for processing operations but we are still waiting for an expert person from Foodnet to help and train them in operating these equipment. Another planned activity is the training of 3 farmers in donkey rearing which might help in transport of row cassava from fields to the processing plants. These farmers are supposed to be trained in Uganda where the donkeys will be purchased from.The period has to be fixed by Foodnet as farmers are ready from their side.
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Foodnet Project No: 5 Progress report Project title: Establishment and commercialization of a small-scale integrated cassava-processing enterprise in Lira District, Uganda. Project purpose • To link rural economies to growth markets in a profitable and sustainable way, • To promote the diversification of rural production, and • To generate higher incomes while reducing agricultural production losses. Progress to date Conducted: A needs and constraints assessment of cassava marketing in Lira district was conducted using rapid reconnaissance methods, which involved secondary data collection and organization, and informal interviews with key informants who included district political leaders, contact farmers and traders. Outputs of this activity included • A socio-economic profile of the study area, • Identified the importance of cassava in Uganda and the study area, • Compiled a list of the food markets in Lira both spatially and temporally, • Identified constraints faced during production, utilization and marketing of cassava in Lira, and • Highlighted key researchable areas in the cassava food system matrix. Ongoing work: Semi-structured questionnaires have been designed for cassava producers, processors and traders. A formal survey of 120 cassava farmers, and 80 cassava traders in Lira district is ongoing and half of the respondents have been interviewed and data analysis has been initiated. A follow up of the marketing chain have led to interviewing participants in the neighboring district of Nakasongola and the final destination of Kampala. Issues being investigated include processing, utilization and marketing of cassava at the various market levels. Output of the survey will include quantification and qualification of constraints, and needs in the cassava food system matrix with a view to improving the efficiency of cassava marketing.
Foodnet Project No: 6 Progress Report Grant 6 By
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Kiddo J. Mtunda Mariam Kilima Sugarcane Research Inst., Kibaha c/o Sicco Tel: 007 22 2700092 Tel:255-52-402017 [email protected] 1. Processing equipment: The cassava chippers from Kampala were delivered to the roo / tuber programme at Kibaha in October 2000. The 2 chippers were not used immediately. SARRNET regional scientist took them for further modification. The Kalimatakijai women group received the cassva chipper on 20th February 2001, while the Kwa Mathias women group received it on 29th March 2001. 2. Kalimatakijai Women group (Dar es Salaam) The Kalimatakijai women group is composed of 15 members, with only 8 being very active. The group was established in 1990 and the previous activities done included; i) Making tie and dye cloth ii) Preparation of Hema (Local nail vanish) iii) Cultivation of Mushrooms The group has a central meeting place where they carry out their activities. The three activities have stopped due to greater competition from Dar es Salaam. 3. Kwa Mathias Women group: The Kwa Mathias women group is composed of 5 active members. The group was established in 1998 and the activities commonly carried out included the growing of vegetables such as cucumber, okra sweet pepper and sweet potatoes. The group does not have a central meeting place and most of their activities are conducted at the chairperson’s place. 4. Training: Training on cassava processing was done in February with the Kalimatakajai women group and in March 2001 with the Kwa Mathias group. The topics handled included; how to process high quality cassava flour, how to operate the chipper and the marketing of cassava products. 5. Promotion issues: In order to popularize the high quality cassava flour, the Kwa Mathias group participated in the ‘World Women Day’ celebrations held nationally at Kibaha. Both the cassava equipment and the products were displayed for 3 consecutive days. From 6th to 8th March 2001. The group received a certificate of participation.
6. Problems Faced - 79 -
i)
ii)
iii)
iv)
The group ahs very little experience in the marketing aspects. They have to identify the new marketing channels/ outlets or intervene the old marketing channels. Normally traders would go to Kigoma or Tanga to bring fermented cassava flour to sell at different outlets like Kariakoo, Kisutu or Manzese markets. The price of cassava roots is relatively high at the buying points. They buy at Tsh. 3,000 or more per bag of 80 kg of fresh roots. Due to this, the selling price of cassava flour should also be high, above Tsh.200 per kg. The Kalimatakijai Women group in Gezaulole is less active in marketing. They are reluctant to process until they are assured of the market. The rain season has begun and the groups are forced to postpone the processing activities until the weather is favourable.
Follow Up: 1. The project leaders are trying to link the groups with some entrepreneurs in Dar es Salaam. A few of them operating in the Kariokoo Market have shown interest. 2. Packaging of cassava flour is the next activity. The appropriate packaging materials have to be identified with the help of project leaders. 3. Some customers are interested in white fermented flour. We are in the process making trials to determine the best soaking hours for chips, because customers have complained about the sweet taste in flour made in one day. Later, cassava flour will be marketed in two categories; the unfermented and the fermented. 4. Through exhibition during the “World Women Day” many women groups applied for training. This is planed to be on-station or on-farm.
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Project 7 Equipment delivered, currently project under review with Sicco Kolijn Project 8
The marketing potential of Potatoes in Uganda and market opportunities for Rwanda.
Draft Report
Okoboi Geofrey International Institute of Tropical Agriculture
October 2001
- 81 -
Table of contents REPORT SUMMARY....................................................................................................................84
POTATO PRODUCTION IN UGANDA ................................................................................ 85
POTATO PRODUCTION AREAS................................................................................................85 POTATO PRODUCTION STATISTICS ...................................................................................... 86 SEASONALITY OF POTATO PRODUCTION. .......................................................................... 89 POTATO VARIETIES................................................................................................................... 90 POTATO PRODUCTION COSTS ................................................................................................91
WARE POTATO MARKETING IN UGANDA .................................................................... 94
DESCRIPTION OF TRADING AND THE MARKETING CHAIN ............................................94 CONSUMPTION AND PRICES.................................................................................................... 97 SPATIAL ANALYSIS OF WARE POTATO MARKET ............................................................ 101 MARKETING COSTS AND MARGINS .................................................................................... 102 WARE POTATO IMPORTS/EXPORTS. ................................................................................... 104 SEED POTATO MARKETING IN UGANDA............................................................................ 106 COMMENTARY ON UNSPPA SEED POTATO PRODUCTION MARKETING REPORTS. 110
CONCLUSIONS AND RECOMMENDATIONS ....................................................................0
List of tables
Table 1: Output, Area planted and Yield of Potatoes from Major production Districts in Year 2000........ 87 Table 2a: Potato Production Calendar for Kabale District. ...................................................... 89 Table 2b: Potato Production Calendar for Kisoro, Mbarara, Mbale and Kapchorwa Districts........... 90 Table 3: Characteristics of Potato Varieties Released/Grown in Uganda .................................... 90 Table 4: Ware Potato Production Costs in Kapchorwa District, Uganda for Year 2001. ................. 91 Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins. 92 Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995........ 98 Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 ....... 98 Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995 98 Table 9: Correlation Coefficients (r) for Potato between four towns using nominal prices ............ 102 Table 10: Correlation Coefficients (r) for Potato between four towns using real prices ................ 102 Table 11: Potato Marketing Cost and Margins ................................................................... 103 Table 12: Assumptions used to derive costs in table 5 ......................................................... 104 Appendix 2: Grand Seasonal Index for Potato in Kampala Calculated from Real Retail prices ...... 112 Annex 1: PRODUCTION REPORTS FOR UGANDA NATIONAL SEED POTATO PRODUCERS’ ASSOCIATION (UNSPPA) FOR 2000A SEASON ................................................... 113
List of figures
Map 1: Major districts producing Potato in Uganda .............................................................. 85 Figure 2: Percentage share of Area planted with Potato in 2000 by major districts........................ 86 Figure 3: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................. 87 Figure 4: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................. 88 Figure 5: The Ware Potato trading chain. ........................................................................... 95 Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 99 Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 99 Figure 8: GSI for potatoes in Kampala, 1989-2000 ............................................................. 100
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- 83 -
Report Summary
This report is the result of a rapid national Potato market survey designed to analyse the marketing potential of the Potato sub-sector in Uganda. The survey involved formal and informal interviews to a cross-section of participants in the Potato sector.
Key Findings
• • • • • • • Production figures indicate that output of Potatoes in Uganda is stagnating, this suggests that more technical and farming systems investments is required to raise both production efficiency and levels of output. Potato yields are low in Uganda due to very low rates of quality inputs (clean seed, fertilizers, and chemicals) utilisation. In Kabale 1% of farmers are reported to use fertilisers (Low, 2000). While Potatoes are a major food staple and cash crop in the highland areas where they are cultivated, they are considered a cash crop in the lowland areas, where they have been promoted. The high level of perishability and lack of appropriate long-term storage facilities has significantly influenced the degree of price uncertainty in the Potato market. Brokers are a key link in the Potato marketing chain and this group appears to charge excessive fees for their services. Within the supply chain, travelling traders attain the highest net margins. There is no significant cross border trade in ware potatoes between Uganda and the neighbouring countries. However, limited formal and informal trade takes place along the Uganda-Rwanda border during the months of September to November when there is Potato supply shortage in Uganda. This is the most ideal time for Rwanda Potatoes to sell profitably in Uganda. Seed potato production and marketing in Uganda is least developed. Monopolised by the 25 members of Uganda National Seed Potato Producers’ Association, a 100kg bag of seed potato is sold at 5 times that of ware potato! Potato chips is the most popular potato product in urban areas as evidenced the increasing number of fast food outlets. The potential of potato crisps is encouraging though currently not very popular.
• •
84
POTATO PRODUCTION
Potato Production in Uganda
Potato production areas
Potato production is concentrated in two areas in Uganda, the highlands of Kabale, Kisoro and Mwizi (Mbarara) in south-western Uganda and the mount Elgon districts of Mbale and Kapchorwa in eastern Uganda. Kabale district is very hilly and interlaced with narrow and broad valleys. Altitudes range from 1,4002,500m, the annual rainfall range is 1,000- 1,500mm occurring in two peaks and the mean annual maximum temperature is below 22.5oC with annual minimum below 10.0oC, making Kabale one of the coldest districts in Uganda (Low, 2000). Low (2000) further states that the soil moisture and temperature regime make Kabale suitable for temperate crops. The physical and climatic conditions of the mountainous districts of Kisoro, Mbale and Kapchorwa closely relate to those in Kabale. Although the hills of Mwizi in Mbarara have relatively lower altitude (1,200-1,600m) and rainfall (800-1100mm) ranges than Kabale, they are inhabited by migrants from Kabale who have came along with their tradition of Potato cultivation. Ware potatoes are produced in both highland and lowland areas. This was made possible through the introduction Potato varieties (e.g. Victoria), which is adapted to high and low altitudes. Seed potato is exclusively produced in highland areas. Due to the wide adaptation of Victoria, many new districts have taken to ware potato production, See Map 1.
Irish potato growing districts
Lakes and Rivers
Map 1: Major districts producing Potato in Uganda
85
In the highlands where Potatoes are grown, the crop is both a major food staple and cash crop. In her study, Low (2000) noted that Potato and sorghum are by far the most important cash crops for both women and men in Kabale district. In the low and mid altitudes zones that have adopted Potato cultivation, the crop is not a major food staple but a cash crop.
Potato production statistics
Potato production in Uganda has spread over the years from the highlands of Kigezi (Kabale and Kisoro) districts to many other districts of Uganda. (See production by district table –Appendix 1). Data source for the production figures is Ministry of Agriculture, Animal Industry and Fisheries, though the reliability of these is questionable. According to the figures in Appendix 1, it is unlikely that in the year 2000, Lira district, a major buyer of Potatoes from Mbale produced 13,194 Metric tonnes more than Mbarara, which produced 10,791 Metric tonnes. Similarly, it is not possible that Soroti district, a dry and warm area where Potatoes are rare produced 11,509 Metric tonnes more than Kapchorwa district (11,058 Metric tonnes) in the year 2000. The figures in Appendix 1 also show that Kabale district is consistently the leading producer of Potatoes in Uganda and followed by Kisoro district. This is reasonably realistic. Thus even if the data is questionable nevertheless it is the only important reference source. Figure 1: Percentage share of Potato Production in 2000 by major districts
Figure 2: Percentage share of Area planted with Potato in 2000 by major districts
Kabale
5% 3% 7% 5% 5% 3% 15% 57%
Kisoro Mbarara Luwero Masaka Mbale Rukungiri Kapchorwa
4% 9% 7% 6%
6% 33%
Kabale Kisoro Kapchorwa Luwero Masaka Mbale Mbarara
5%
30%
Rukungiri
Figures 1 and 2 show the percentage share of production and area planted by the major Potato producing districts in Uganda for the year 2000. These charts were derived from Ministry of Agriculture, Animal Industry and Fisheries statistics in Appendix 1. With the exclusion of minor Potato producing districts in Uganda, Figure 1 shows that Kabale district produced 57% of the overall output of Potatoes on 33% land (Hectare) utilisation. Due to poorer soils, Kisoro district produced 15% using about 30% of the land area. Table 1 shows that Potato yield in Kabale was approximately 16 Metric tonnes per hectare while in Kisoro the yield was only 5 Mt/Ha. Information on yield is important in underpinning the agro-ecological conditions and farming practices of different communities in various districts. Furthermore, information on yield indirectly relates to: - Intensity of land use. Number of seasons Potatoes planted in year - Level of soil conservation and use of fertilizer to improve soil nutrients - Use pesticides and fungicides against a host of Potato vermin and diseases.
86
Table 1: Output, Area planted and Yield of Potatoes from Major production Districts in Year 2000
District Output (Mt) Area planted (Ha) Yield (Mt/Ha)
Kabale 179,571 11,332
Kapchorwa 11,058 1,559
Kisoro 49,125 10,285
Masaka 15,767 2,433
Mbale 21,627 3,050
Mbarara 10,791 1,522
Rakai 6,172 871
Rukungiri 15,084 2,127
15.85
7.1
4.78
6.5
7.1
7.1
7.1
7.1
In a working paper No. 2000-1 for the International Potato Centre, Jan Low, noted that potato yields are high in Kabale due high plant densities per hectare and good soils. Low found out that farmers in Kalengyere who had high plant densities (50,000) per hectare also had better yields per hectare (29Mt) than those in Bukinda with low plant densities (40,000) per hectare whose yield was 20 Metric tonnes. In the study, Low also analysed other factors that affect yield such as the quality of seed, soil type and fertility and management of potato diseases.
Figure 3 shows the trend of Potato production (‘000 Mt) in Uganda for the period 1980-2000. The trend line indicates a stead increase in output for the period albeit the fluctuating production graph. Figure 4 is a production growth rate graph, a derivative of Figure 3. Although Potato production and growth rates varied considerably in the earlier years (1980-1989), the growth rate is has stabilised in the past 10 years to about 2% per annum. Thus, there is critical need to increase farmers’ yields through increased use of high yielding certified seed, fertilizers to supplement on soil nutrients and pesticides to control the destructive bacteria wilt and late blight.
Figure 3: Potato production (‘000 Mt) in Uganda, 1980-2000
87
600
500
prodn
Prodn ('000 mt)
400
Linear (prodn)
300
y = 10.645x + 166
200
100
19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98
98 19
Years
Figure 4: Potato production (‘000 Mt) in Uganda, 1980-2000
100 80 grow th rate 60 Linear (grow th rate)
output growth rate
40 20 0 y = 0.0176x - 0.0287 -20 -40 -60
80 82 84 86 88 90 92 94 96 19 19 19 19 19 19 19 19 19 20 00
Years
88
20 00
Seasonality of Potato Production.
In Kabale, there are no clear-cut distinctive seasons for production of Potatoes. There appears to be a seasonal overlap depending on weather conditions, hence Potatoes are in production almost all year round. The main reason why Potatoes are produced all year in Kabale is due to the intensive use of all available hills slopes, swamps and valley bottoms (non-swampy) for cultivation. Farmers interviewed, said there are three Potato cultivation seasons in the year. Table 2a shows the Potato cultivation calendar in Kabale in which the planting and harvesting times are presented. The first season starts from mid February during the short rains with planting on the hills slopes and ends June when most farmers have harvested. Harvests from this season are relatively small and the farmers consume a big proportion. Within this period of low rainfall, some farmers utilize non-swampy valley bottoms to plant Potatoes between December and January and harvest in March and April. This means that in the first season, Potatoes are harvested from non-swampy valley bottoms and hills slopes hence a reasonable market supply from March to June. Table 2a: Potato Production Calendar for Kabale District. Area of cultivation Hill slopes Swamp land Valley bottom Jan Potato Harvesting Feb Mar Potato planting Apr May Jun Jul Aug Sept Oct Nov Dec Har vest ing
Potato harvesting Potato planting
Potato planting
Harvesti ng Potato Planting
Potato Planting 73.1
Potato harvesting 136.5 114.9 98.4 43.0 13.7 56.4 88.8 131.4 98.4
Mean monthly Rainfall 1990 72.3 2000 (mm)
90.0
The second season is the most important commercial season in the potato cultivation calendar of Kabale. This season has a long rain period from September to December when most farmers again plant Potatoes on the hills slopes and harvest mainly in January. In December to January is the period when Potato production in Kabale is highest and there is over supply on the market leading to the lowest seasonal prices. (See Figure 8 for Kampala Grand Seasonal Index). Third season Potato cultivation is done in the swamps using irrigation canals during the dry period. Commercially oriented farmers who often time planting so as to harvest when Potato price is high mostly exploit this season. Swampland planting is between May and July and a short harvesting season starts from August ending mid September. During the second season planting (September to November), there is very little supply of Potatoes from western and southern Uganda (Kabale, Kisoro, Mbarara, Rukungiri and Rakai) to Kampala markets. During this period, a relatively high price of Potatoes is also recorded in Kampala, Figure 8. Interviews with the traders at the Uganda-Rwanda borders of Katuna and Kyanika also indicated that July to October is the window period when traders import Potatoes from Rwanda, repack them locally and sell as Kabale Potatoes. In Kisoro and Mwizi (Mbarara) Potato production closely follows that of Kabale except that these districts do not have significant swampland to warrant production of swamp irrigated Potato. Therefore these districts only have two major Potato seasons with the first season (minor) starting from February ending in May and the second season (major) starting September ending in January. Mbale and Kapchorwa districts also have two Potato production seasons in a year. The first season is between March (planting) and June (harvesting), while the second season starts from August and ends in December, Table 2b.
89
Looking at the Potato productions in Tables 2a and 1b, the greatest window of opportunity for Rwanda to sell Potatoes to Uganda is between late August and early November. During this, there is virtually no supply from western and southern as it is the major planting period while this time also coincides the second planting season in eastern Uganda. Furthermore, due to low supply during this period Potato offlorry prices (28,000/=) are relatively high in Owino market, hence making it possible to sell Rwandan potatoes profitably. Table 2b: Potato Production Calendar for Kisoro, Mbarara, Mbale and Kapchorwa Districts. District(s) Kisoro and Mbarara Mbale and Kapchorwa Rainfall (mm) 1994 Mbarara Jan
Harvesting
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct Planting
Nov
Dec Harvesting
Planting
Harvesting Harvesting Planting
Planting
Harvesting
100.2
30.8
85.9
68.7
164.9
6.1
6.0
31.6
29.1
128.8
156.2
104.4
Potato varieties
The range Potato varieties that have been released and are being grown in Uganda are shown in Table 3 (PRAPACE, 2001). The survey revealed that many farmers in south-western Uganda were growing different varieties identified in the table except NAKPOT 1,2, &3, which seems to be unknown. Despite their good commercial characteristics, NAKPOT 1, 2 and 3 have not been adopted quickly since their release in 1999. Farmers interviewed said that they are cautious at adopting other potato varieties they are not familiar with. Some peasant farmers still grow old non-commercial local varieties such as Matare because it is tasty. Overall, the rate of variety adoption depended on the marketability of the variety, maturity rate, yield and tolerance to bacterial wilt and late blight and even the income level of households necessary for buying new seed.
Table 3: Characteristics of Potato Varieties Released/Grown in Uganda
Common name Yr 1st release Uganda 11 (1973) (Rutuku) Victoria (1992) Kisoro (1992) Kabale (1992) NAKPOT 1 (1999) NAKPOT 2 (1999) NAKPOT 3 (1999) Cruza 148 (1982) Ndinamagara Sangema Tuber size Large Skin colour Light red Red White Purple white White Rose red White Light red Pink Flesh colour Cream Tuber shape Vegetative cycle (days) 110-130 Seed dormancy (weeks) 11-13 Resistance/ Tolerance LB BW Toler Suscep Storability
Oval round
Good
Large Medium large Large Large Medium large Medium Large
Light yellow Cream White White Cream White Cream
Round Oval long Round Oval long Round Round Oval round
90-110 110-120 110-125 80-90 85-100 85-100 110-130
8-10 10-12 11-13 9-12 9-11 9-12 4-6
Mod resist Resist Mod resist Resist Resist Resist Toler
Toler Toler Suscep Toler Toler Toler Toler
Good Good Excellent Good Good Good Fair
Medium
Yellow
Oval oblong
90-110
10-12
Toler
Suscep
Good
90
(1980)
large
Victoria is the most common commercial variety that is high yielding, early maturing, tolerant to bacteria wilt (BW), but susceptible to late blight (LB). The farmers in Mbarara, Kabale and Kisoro easily adopted this variety because South Western Uganda Agricultural Rehabilitation Project (SWARP) and African Highland Initiative (AHI) promoted it Uganda Rutuku introduced in Uganda in 1972, also one of the most successful varieties in Kabale. Uganda Rutuku is highly sought after by traders because it the best for making chips. Mainly grown in Kabale at high elevations (+1,800 metres), this variety sells at a premium price. The survey also revealed that the wholesale price of 100kg bag of Uganda Rutuku was 33,000/= while that of Victoria and other varieties was at 28,000/= in Owino market. Because Victoria has almost similar characteristics as Uganda Rutuku (large tuber size, red/light red skin colour and yellow/cream flesh) unscrupulous traders in Owino are said to be selling Victoria as Uganda Rutuku to unsuspecting buyers In Mbale a variety locally called Wanale with all the characteristics of Uganda Rutuku is also highly demanded by chips makers in eastern Uganda.
Potato Production Costs
Production of ware and seed potato effectively requires the same inputs and labour. However, for a farmer to produce clean seed (certified seed) he must purchase to use basic seed from a recognised source. To produce ware Potatoes, the farmer can use any Potato tuber that can sprout be it certified seed or disease infected local seed. Seed quality significantly determines the yield.
From our field survey it was found that most respondents (farmers) complain experiencing declining yields because they do not use certified seed. Farmers said they use local seed retained from their harvests or buy from neighbours. The costs incurred and margins received by an average farmer in Mbale or Kapchorwa for cultivation of one acre of Potatoes using minimum inputs is shown in Table 4.
Table 4: Ware Potato Production Costs in Kapchorwa District, Uganda for Year 2001. Item Unit price (U shs) Inputs Land Rent/Hire 1 Acre 25,000 Seeds 15 bags (1 bag ~100kg) 10,000 Chemicals (Ambush & Diathane) Total (U shs) 25,000 150,000 30,000 35,000 % of sales
Fertilizers (NPK) 1 bag (optional) Labour
Ploughing 2 Times Making Ridges and Planting Adding more soil on the ridges Weeding 2 Times Fertilizer application (optional) Spraying Harvesting Total costs
35,000
15,000 15,000 15,000 15,000 10,000 5,000 20,000
30,000 15,000 15,000 30,000 10,000 5,000 20,000 365,000
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Revenue return
1 acre = Yield = 100 bags Farm-gate price per bag = 4,000/=
Gross Revenue Net Margin
400,000 35,000 8.75%
Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins Variable option No fertilizer use No fertilizer & pesticide use No fertilizer use & land hire No fertilizer use & land hire Total costs (U shs) 325,000 Yield (bags) 1 bag ~100kg 80 Price per bag (U shs) 4,000 Revenue (U shs) 320,000 Profit/loss (U shs) -5,000 Remarks Common with peasant farmers Common with subsistence farmers Most common situation Most common situation with off season production
285,000 300,000
70 80
4,000 4,000
320,000 320,000
35,000 20,000
300,000
80
5,000
400,000
100,000
Informal interviews with farmers in Mbale and Kapchorwa revealed that most farmers do not use fertilizers and pesticides in the production of Potatoes. Non-use of fertilizers, pesticides, certified seed and land hiring is the most common agricultural practice of peasant farmers in Uganda. However, data in Table 4 illustrates the probable costs of cultivating 1 acre of Potatoes, the yield and returns as given to us by a number of farmers interviewed. The table shows that with a total investment (cost) of 365,000/=, the likely yield given favourable weather conditions is 100-120 bags. Table 4 further shows that the farmer earns 35,000/=, which is only 8.75% of the total sales.
Table 5 illustrates the various cost options that the farmers may incur in cultivating 1 acre of Potatoes and the resultant revenue given the price. Given the most common situation is that farmers do not use fertilizers and do not hire land, the farmer incurs about 300,000/= in production costs and earns 20,000/= only from a gross revenue of 320,000/=. The analysis further demonstrates that the most profitable (100,000/=) situation is when the farmer produces offseason when the farm-gate price improves to 5,000/= per bag.
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POTATO MARKETING
Ware Potato Marketing in Uganda
Description of trading and the marketing chain Constrained by high product perishability and limited storage facilities, farmers do not harvest Potatoes until they identify a buyer. Travelling traders/brokers also rarely buy from farmers before contacting their buyers in Kampala. Therefore, Potato trading is a demand-led business; that is, there has to be demand before supplies come to the market. This caution aims to reduce post-harvest loses that are associated with fresh produce. For the production areas of central, western and southern Uganda, the focal destinations of the Potatoes are the Kampala markets (Owino, Nakawa, Kalerwe, Natete and others). Potatoes from Mbale and Kapchorwa generally go to Mbale main market first. Although there are travelling traders who may directly supply other towns and urban centres, Kampala is the main wholesale market for Potato traders from other towns such as Entebbe, Mukono, Kayunga, etc. Mbale market is the main distribution centre for Tororo, Iganga, Pallisa, Kumi and Soroti urban markets. A small number of restaurant operators and retailers in Gulu and Lira occasionally used to get their supplies from Kampala, but are now shifting their focus on Nebbi district that has become a dominant producer of Potatoes in Northern Uganda.
For goods to move from their origin (production) to their final destination (consumption), there are various people who perform the physical functions (e.g. sorting, packing, transporting, loading and unloading) and others who undertake the economic activities of selling and buying. The stages through which Potatoes move from the farmer to the consumer is described below.
Farmers
Farmers are the first link in the Potato market chain due to the high level of people depending on agriculture in Uganda (over 80%). Farmers are both producers and consumers. A sizeable portion of output is consumed by farmers from own production and by buying from neighbours and village markets. Farmers harvest their Potatoes only when they have a buyer. At the time of sale farmers either seek the local village trader/broker or the trader/broker approaches the farmers. After striking a price deal, the farmer and village trader/broker agree on activities such as harvest date, sorting and packing. In most cases it is the farmer who harvests the Potatoes from the soil while village trader/broker provides the packing bags and does the packing. It is rare that individuals or farmers groups harvest their Potatoes, transport and wholesale them at urban markets. Most often, produce is sold at farm-gate and on a cash basis. Other than selling to village assemblers and brokers, farmers also sell their Potatoes by the roadside and take them to the weekly village markets or sell them to the village retailer.
Village traders/assemblers
Village traders from the product areas o and know the farmers in their village and surrounding areas. They know what farmers have planted and when it is likely to be harvested. The village traders are in contact with transporters, wholesale buyers and financial service providers. After identifying farmers willing to sell and a price is agreed between the local farmer and wholesale buyers, village traders contact their buyers using mobile telephones. Once an agreement is struck, the deal is concluded on a trust basis. Trade can also be initiated by the wholesaler who requires urgent supplies. When wholesaler requires Potatoes, he will call his contact (village trader) agree on a price and other marketing arrangements and in turn the village trader will assemble to fulfil the amount required by the wholesaler. To accelerate the process, village traders are given cash advances from wholesalers, in which case they at times regard themselves as brokers. Village traders/assemblers also sell to travelling traders from Kampala and to contacts in other towns. See Figure 5 a schematic representation of the Potato trading chain.
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Figure 5: The Ware Potato trading chain.
Rural broker
Framers
Village traders/
g traders
Rural retailers
Urban Brokers Rural consumers
Travellin
Wholesalers Key Urban retailers Major Flow Minor Flow
Consumers /processors
Brokers
Brokers are one of the prominent market participants in Potato trading. In rural areas, brokers are the contact for travelling traders and wholesale buyers to farmers and the key link of farmers to traders. Brokering is a lucrative activity and some successful village traders and wholesalers switched roles to brokers. Brokers get instant pay (commission) per Potato bag for their services. The amount ranges from 500-1,000/= per bag depending on the quantity required and the urgency with which the consignment is required. Apart from rural brokers who link farmers with the travelling traders, there are also brokers in most urban centres who link travelling traders to wholesalers and urban retailers. For example, in Kampala or Mbale travelling traders or village traders who have brought a lorry load of Potatoes, surrender it to the broker. Before the broker accepts the responsibility, a number of issues are agreed, i.e, - The number of bags that are on the lorry - The price per bag that the travelling trader is going to receive - The minimum price per bag at which the broker will sell, hence commission per bag.
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- Who pays the market fees and off loading costs In Kampala markets, we found out that after agreeing on the price that the travelling trader is to receive per bag, brokers were free to sell at whatever price they could negotiate with the buyers. Thus the commission that the brokers receive, varied from 500-2,000/= per bag depending on demand and supply conditions in the market. Brokers are an organised and influential group in the market (especially Owino market) and few travelling and village traders can directly sell to wholesalers and urban retailers as shown in Figure 1, by dashed lines (minor flow).
Mbale brokers are not different from their kinfolk in Kampala. They also takeover the transaction activities of Potatoes as soon as the lorry load enters the market. While Kampala brokers usually accept to over the responsibility of paying for off loaders as a fraction of their gross commission, Mbale brokers negotiate to pay even for markets fees as shown below.
Gross commission
Market fees
Offloadi ng fees
Net commission
Sometimes brokers make windfall gains. Urban brokers negotiate a fixed price with the travelling traders and sell at a higher price to the wholesalers while the rural brokers may negotiate a different price (higher price) with the buyers and pay a different price (lower price) to the farmers. For example, suppose a broker buys from the farmer is willing to sell 100 bags of Potatoes at 8,000/= per bag while the trader is willing to pay 10,000/= per bag. The broker will gain (10,000-8,000)x100 = 200,000/= for a single transaction. Given the production costs, a farmer can hardly make such a profit margin from a production of hundred bags of Potatoes. Like wise few traders (travelling traders) can make such profit given the high marketing costs involved in Potato trading. Brokers do not incur losses. At worst, they sell at the travelling traders’ reserve price otherwise a price above the reserve price guarantees them of a minimum commission. On the whole, the market has now accepted brokers (urban and rural) as a necessary iniquity. They are a key link in the marketing chain. They are the most informed about the market (demand and supply) conditions.
Travelling traders
These are traders who either own trucks or hire them for buying Potatoes from farmers or village traders and then transport and sell to wholesalers and urban retailers in other district markets. These traders supply most of the Potatoes to wholesalers and retailers through brokers. In Kampala, travelling traders can station and sell their Potato truckload in one market or move from one market to another until the consignment is sold. Travelling traders with fresh Potatoes (high quality) typically hike their prices relative to those prevailing the market. However, when their stocks do not sell quickly as they anticipated and the quality starts to degenerate, these traders reduce the price accordingly. Travelling traders will sell at clearance prices to avoid further overhead costs such as accommodation costs, overnight parking fees, product loss and transport surcharge from truck owners.
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Wholesalers
Major Potato wholesalers are largely found in Kampala (Owino and Nakawa) Mbale markets. In other towns, traders double as wholesale and retail traders because of the lower volumes. More often, wholesalers get their supplies from travelling traders. Rarely do wholesalers venture out to buy directly from the farmers. Most traders do not know the names of different varieties but can distinguish them according to the skin and flesh colours. As experienced traders they soon know which varieties that are most highly sought by restaurants (good for chips and crisps). Accordingly, wholesale traders sell different varieties at varying prices. A popular variety, Uganda 11 (Rutuku) most preferred for chips and crisps is sold at a premium price of 7-13% over that of other varieties.
Retailers
Potato retailers are many and range from supermarkets to village roadside sellers. In urban areas retailers in markets buy 1-5 bags from the wholesalers and then sell it in various heaps sizes for amounts ranging from 100-2,000/= A heap sold at 1,000/= weighs an average of 3kgs. Retailers sort and grade Potatoes according to variety and degree of freshness. Recently, some supermarkets such as Shoprite have started selling Potatoes in 5kg packages. In rural areas Potatoes are sold on the road sides heaps or tins. A heap which has an average weight of 10kgs, sells for approximately 2,000/=.
Processors
Hotels, restaurants and Take-Aways (Fast Food outlets) are the main business enterprises that process Potatoes into chips. In urban areas, over 50% of Potatoes are consumed as chips. Minimum inputs needed to process chips include fresh Potatoes, cooking oil, fuel energy and a pan. These inputs are locally available. The team was shocked to discover that despite the abundance of good quality Potatoes available in Uganda, the South African based fast food restaurants such as Nandos and Steers get their Potatoes from South Africa. This would appear to be a valuable niche market if Ugandan growers could produce the varieties grown in the Republic of South Africa to supply these outlets. There are some small-scale food processors that make crisps from Potatoes. Crisps being not a very popular product that is mainly eaten by students and young people in urban areas means that its market is limited thereby limiting its production.
Consumption and prices
In Uganda, Potatoes are consumed in areas where they are produced and surplus is sold in urban areas. Market patterns indicated that almost no Potatoes moved to non-producing areas where Potatoes are not regarded as a staple food. Potatoes are consumed in a number of ways. Potato farming communities and rural dwellers, where Potatoes are consumed as a major food staple, mainly eat Potato boiled or mashed. At times they also eat Potatoes mixed in beans, beef, or other vegetable stew. In these communities, Potatoes are eaten by all ages of people. In the urban areas of Uganda, Potatoes are mainly consumed as chips, snacks (crisps) and occasionally in a boiled or mashed form. The major consumers of Potatoes in towns are young people of working class and students of higher institutions of learning who eat Potatoes mainly as chips. Particularly, it is interesting to note that on average, more women eat chips than men. The rapid rate at which fast food outlets (TakeAways) are becoming popular in urban centres is evidence to the high level of Potato (chips) consumption. The principle product of the take-ways is chips and chicken. Young people we interviewed said they prefered chips to other foods because it is tasty, cheap easy to prepare, and considered a status food.
Estimates from the 1994/95 Uganda National Household Survey indicated that the region with highest average monthly household consumption expenditure on Potatoes was western Uganda followed central and eastern and lastly northern Uganda, Table 6. Tables 6, 7 and 8 indicate the average monthly household consumption expenditure on major food staples in Uganda. They were complied from the Uganda National Household survey (1994-95) statistics report
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Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995 Region Rural Per H/H Monthly Exp in U.shs. 20 83 513 1,250 % of total Exp on major food 0.04 0.16 0.6 2.16 Urban Per H/H Monthly Exp in U.shs . 450 563 946 858 % of total Exp on major food 0.45 0.59 0.55 0.84 Total Per H/H Monthly Exp in U.shs . 48 124 633 1,222 % of total Exp on major food 0.1 0.23 0.58 2.00
Northern Eastern Central Western
Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 Region Rural Per H/H Monthly Exp in U.shs . 332 1,309 8,092 7,986 % of total Exp on major food 0.73 2.59 9.48 13.78 Urban Per H/H Monthly Exp in U.shs . 1,442 3,477 11,224 8,612 % of total Exp on major food 1.43 3.65 6.53 8.39 Total Per H/H Monthly Exp in U.shs . 403 1,492 8,965 8,031 % of total Exp on major food 0.82 2.74 8.19 13.11
Northern Eastern Central Western
Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995
Rural
Food staple Per H/H Monthly Exp in U.shs . 4,866 4,385 512 3,030 % of total Exp on major food 7.92 7.13 0.83 4.93
Urban
Per H/H Monthly Exp in U.shs . 9,020 2,779 841 1,850 % of total Exp on major food 6.17 1.9 0.58 1.27
Total
Per H/H Monthly Exp in U.shs . 5,458 4,156 559 2,862 % of total Exp on major food 7.42 5.65 0.76 3.89
Matooke Sweet Potato Potato Cassava (fresh, flour)
Source: Uganda National Household Survey (1994-95), Min. Planning and Econ. Dev’t.
Although the estimates in the tables above may not portray an accurate status of the current levels of staple food consumption, it provides a guide to the magnitude and direction of expenditure flow by households on major food staples in various regions of the country. Table 6 highlights the comparative household monthly expenditures on Potatoes between regions and between rural and urban areas. Noticeably, the rural part of western Uganda has a higher monthly expenditure (1,250/= per month) on Potatoes than the urban areas of western Uganda (858/= per month). This finding is reasonable as potatoes are the main food staple for rural people in Kabale, Kisoro and Rukungiri. People in urban areas have a greater choice of buying other food staples such as matooke and rice brought from other districts. In the regions of central, eastern and Northern Uganda, urban dwellers spend more on Potatoes than rural.
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Comparatively, both rural and urban households in all the regions of Uganda, spend over 5 times their monthly consumption budget on cooking/bananas matooke than Potatoes. (See Tables 6 and 7). Matooke is a very close substitute to Potatoes and it is ranked number one food staple in central and in some parts of eastern and western districts of Uganda. Table 8 shows that of all the 4 major food staples consumed in Uganda, the highest monthly household expenditure goes to matooke, closely followed by sweet Potatoes, and then cassava and lastly the least expenditure goes Potatoes. The data in Table 8 reveals that the urban community spends about twice as much on matooke and Potatoes than the rural populace while on the other hand the rural populace is observed to spend about two times more on sweet Potatoes and cassava. Figure 6 shows the nominal retail price of Potatoes in selected markets in Uganda. This graph shows how unstable Potato prices can be. The linear trend shows that over time Potato prices have more than doubled in the last 10 years (see linear equation) in direct relation to the macroeconomic conditions (inflation, exchange rate instability, supply shocks, etc.) prevailing in the country.
Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets
800 700 Mbale cpi 600 Price in Uga. Shs. 500 400 300 200 100 0
Se p8 M 8 ar -8 Se 9 p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 pM 95 ar -9 Se 6 p9 M 6 ar -9 Se 7 pM 97 ar -9 Se 8 p9 M 8 ar -9 Se 9 pM 99 ar -0 Se 0 p00
K'la/Ebb cpi
Mbarara cpi
Linear (K'la/Ebb cpi)
y = 2.1933x - 2219.9
Years
Source: Uganda Bureau of Statistics; Min. of Finance and Econ Dev’t.
Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets
99
250
Mbale 200 Mbarara
K'la/Ebb Linear (K'la/Ebb )
Real price per Kg.
150 y = 0.0859x + 15.164 100
50
0
Se p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 p9 M 5 ar -9 Se 6 p9 M 6 ar -9 Se 7 p9 M 7 ar -9 Se 8 p9 M 8 ar -9 Se 9 p9 M 9 ar -0 0
Years
Figure 7 shows real (adjusted for inflation) retail price of Potatoes in Kampala, Mbale, Masaka and Mbarara for the period September 1989 to June 2000. While the graphs in Figure 7 clearly shows that Potato prices are highly unstable, the trend line for the Kampala real price series indicate that over this period, real prices have been stable. A likely reason why Potato real prices have remained almost constant over the long run is because whilst demand for Potatoes has increased, supply has matched this growth. In Uganda, ware Potato production is no longer a monopoly of the highland regions of the old Kigezi districts. Victoria, a versatile Potato variety with a short maturity period can be grown in virtually all parts of Uganda which have adequate rainfall.
Examination of the graphs in figure 6 and 7 indicates that the seasonal fluctuation of Potato prices have existed over the entire period. However, a closer scrutiny shows that price fluctuations have worsened since 1997. In 1998 Uganda experienced the famous El Nino phenomenon. These adverse weather conditions led to supply shocks of most agricultural output that exacerbated price volatilities. Another possible reason for the high level of Potato price instability is its high degree of perishability due to lack of appropriate packing, handling and storage facilities. The mode of production that depends on rain-fed agriculture also affects supply, and a change in transaction costs directly affects the price stability. Figure 8 shows the seasonal real retail price movements for Potatoes in Kampala for the period 1989-2000. The grand seasonal index (GSI) is a statistic that calculates the monthly average price from a price series for a given period of time. (For more on calculation see Appendix 2)
Figure 8: GSI for potatoes in Kampala, 1989-2000
100
200
150
GSI
100
50
GSI GSI +1s.d GSI -1s.d annual mean
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months
Our calculations, Appendix 2, indicate that the annual mean real retail price of Irish Potatoes is 113.19/= per kilogram. Figure 8 shows that the trend in seasonal prices is more or less stable and shifts above and below the annual mean. The graph further indicates that the seasonal price index does not exceed the annual mean by 9%, and at its minimum the seasonal index does not go below 12.5% of the annual mean.
In Figure 8, there are two more graphs that deserve an explanation. GSI +1s.d and GSI -1s.d are graphs that were derived by adding to and subtracting from GSI a standard deviation of every month’s seasonal index. Standard deviations measure the magnitude of variation of the series from their mean. The above graphs are thus introduced as a measure of the level of uncertainty in the seasonal price fluctuations. These graphs show a significant pattern. The standard deviations are lowest in August and December to February, when the market’s uncertainty is at its lowest level. Major Potato harvests come to the market late in December and continue to early March. Second season harvests register their presence in the market in August but because production volumes are low in this season, speculation is common and price volatility increases. Standard deviations are at their peak just before harvests in May to July and November. Lack of reliable information on supply and demand conditions tends to exacerbate the level of uncertainty, however, during these periods; off-season production from swamplands and some imports from Rwanda usually filter into the market to ameliorate the erratic situation. September to November is the opportune period for Rwanda to export potatoes to Uganda. Despite these erratic price movements, we did not obtain any information suggesting that farmers or traders store ware potatoes for speculative purposes. In Uganda, the rate of population growth and urbanisation is well correlated with the level of Potato consumption, especially in the form of chips and crisps. Therefore, demand for Potatoes is likely to increase in the future and it is expected that supply from low and mid altitude zones where Potato cultivation is a cash crop will increase. Therefore, the long-term future trends of Potato demand and supply are certain but changes are more difficult to judge, as this will depend on competition.
Spatial Analysis of ware potato market
In an integrated market system scarcity in one location creates demand of products from other locations. Consequently, local prices in an integrated market system would be more stable and only differ due to transaction costs between locations. Correlation coefficients (r) between pairs of markets are the quantitative estimation used to measure the level of the market’s spatial integration. Tables 9 and 10 contain results of correlation coefficients between four towns for Potato prices calculated using nominal and real prices respectively. From Tables 9 and 10, the following observation worth noting. 101
•
All coefficients in Table 9 exhibit moderate (0.6