Why are we not yet exploiting the South-West's Natural advantage In peeled Cassava Chips Production?

By Kazeem Lamidi 

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There is a strong economic argument for encouraging the production of peeled cassava chips in the South-West, particularly as export demand continues to grow. The region has access to cassava tubers in large quantities and, in many locations, at comparatively competitive prices. What is needed now is to connect this raw material advantage with the growing market for export-grade peeled chips.

The logistics advantage is equally important. From Ibarapa, for example, the current cost of moving 30 tons of chips to warehouses around Lagos—loading, revenue, transportation and road expenses combined—is about N1.22 million, or approximately N40,700 per ton. When this is added to a farmgate peeled-chip price of N150,000–N170,000 per ton, the product can potentially reach Lagos warehouses at about N190,700–N210,700 per ton.

This compares favourably with the reported N215,000–N220,000 per ton landing cost of peeled cassava chips produced in Sokoto and moved all the way to warehouses around Lagos. The implication is that, even with the relatively higher logistics cost now being experienced in the South-West, proximity to the export corridor can still create a meaningful landed-cost advantage.

Of course, peeling should not be treated as cost-free. Even with mechanized peeling, the additional costs for peeling, must be considered, while the removal of the peel also reduces the physical recovery of chips from the same quantity of cassava roots. These factors must be properly built into the production economics. But where the export premium is strong enough, the business can still remain competitive.

The opportunity therefore goes beyond Lagos ports. The South-West also has strategic access to the Idi-Iroko/Seme corridor, through which dried cassava products can move into neighbouring West African markets in which increasing request for peeled cassava chips; considered as grade A is becoming too strong to ignore. This gives producers the possibility of serving both maritime export channels and regional cross-border markets from the same production base.

What we need is deliberate investment in peeled-chip processing clusters across the South-West, supported by efficient peeling and drying technology, aggregation, quality control, and, most importantly, linkages with confirmed buyers.