D1.2 Final ver5 25 Jan 14fp7-gratitude.eu/images/ReportsPublications/... · 2 Vietnam team: Tu Viet...

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DELIVERABLE REPORT

Grant Agreement number: 289843

Project acronym: GRATITUDE

Project title: Gains from Losses of Root and Tuber Crops

Funding Scheme: Seventh Framework Programme

Date of latest version of Annex I against

which the assessment will be made:

2011‐11‐15

Deliverable Number: D1.2

Deliverable Title: Market study for the range of potential cassava

and yam waste product solutions

Deliverable leader, organisation, tel and

email:

Ben Bennett Natural Resources Institute 00 44 1634 883449 [email protected]

Report authors UK team: Ben Bennett and Diego Naziri

Ghana team: Quaye, W., Tortoe, C., Sarpong‐

Owusu, E., Obodai, M., Okai, M, Tandoh‐

Wordey, M. and Dziedzoave, N

Nigeria team: Sanni L O, Siwoku B O, and

Adebowale A A

Thailand team: Kuakoon Piyachomkwan, Sunee

Chotineeranat, Jackapon Sunthornvarabhas,

Sittichoke Wanlapatit, Niti Termvejsayanont,

Rungtiva Wansuksri and Pathama

Chatakanonda, Klanarong Sriroth

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Vietnam team: Tu Viet Phu, Nguyen Thi Thao,

Luong Hong Nga and Chu Ky Son

Name, title and organisation of the

scientific representative of the project's

coordinator:

Dirk Pottier, Scientific Officer, European

Commission ‐ DG for Research and Innovation,

E3: COV2 07/157, B‐1049 Brussels, Belgium,

Tel: +32 229 67209;

Project website address: www.fp7‐gratitude.eu

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TableofContentsTable of Contents ....................................................................................................................... 3

Summary .................................................................................................................................... 7

1 Introduction: aims, objectives and scope .......................................................................... 9

1.1 Report format and layout ............................................................................................ 9

2 Method, scope and definitions ........................................................................................ 10

2.1 Method and scope .................................................................................................... 10

2.1.1 Selection of research sectors ............................................................................. 12

2.1.2 Definitions of waste and losses ......................................................................... 12

2.1.3 Challenges faced by the research ...................................................................... 13

3 Overview of production, consumption and waste of yam and cassava in Ghana, Nigeria,

Thailand and Vietnam .............................................................................................................. 14

3.1 Estimate of the waste available for utilisation in the identified markets ................. 14

3.2 Ghana (cassava and yam) .......................................................................................... 14

3.3 Nigeria (cassava and yam) ......................................................................................... 16

3.4 Thailand (cassava) ..................................................................................................... 17

3.5 Vietnam (cassava) ..................................................................................................... 18

3.6 Summary of key demographics by country............................................................... 18

4 Market potential for cassava and yam waste ‐ Ghana .................................................... 20

4.1 Introduction ............................................................................................................... 20

4.2 Substrate for mushroom production ........................................................................ 20

4.2.1 SWOT analysis highlights: mushroom medium ................................................. 21

4.2.2 Conclusions: mushroom substrate .................................................................... 21

4.3 Ingredient for mixed goat feed ................................................................................. 22

4.3.1 SWOT analysis highlights: mixed goat feed ....................................................... 22

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4.3.2 Conclusions: ingredient for mixed goat feed ..................................................... 23

4.4 Starch recovery and sugar syrup ............................................................................... 23

4.4.1 SWOT Analysis highlights: starch recovery and sugar syrup ............................. 23

4.4.2 Conclusions: Starch recovery and sugar syrup .................................................. 24

5 Market potential for cassava and yam waste – Nigeria .................................................. 25

5.1 Introduction ............................................................................................................... 25


5.2.1 SWOT analysis highlights: substrate for mushroom production ....................... 26


5.3 Ingredient for mixed goat feed ................................................................................. 27

5.3.1 SWOT analysis highlights: ingredient for mixed goat feed ................................ 29

5.3.2 Conclusions: ingredient for mixed goat feed ..................................................... 29

6 Market potential for cassava waste ‐ Thailand ................................................................ 30

6.1 Introduction ............................................................................................................... 30

6.2 Cassava leaves in animal feed ................................................................................... 30

6.2.1 SWOT Analysis highlights: cassava leaves for animal feed ................................ 30

6.2.2 Conclusions: cassava leaves as an animal feed ingredient ................................ 31


6.3.1 SWOT analysis highlights: mushroom substrate ............................................... 33


6.4 Use of cassava peels and pulp in animal feed ........................................................... 33

6.4.1 SWOT analysis highlights: cassava pulp product ............................................... 34

6.4.2 Conclusions: cassava peels and pulp in animal feed ......................................... 34

6.5 Starch recovery and sugar syrup ............................................................................... 34

6.5.1 SWOT analysis highlights: starch recovery and sugar syrup .............................. 34

6.5.2 Conclusions: starch recovery and sugar syrup .................................................. 35

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7 Market potential for cassava waste – Vietnam ............................................................... 36

7.1 Introduction ............................................................................................................... 36

7.2 Cassava based snacks ................................................................................................ 36

7.2.1 SWOT Analysis highlights: cassava based snacks .............................................. 37

7.2.2 Conclusions: cassava based snacks .................................................................... 38

7.3 Cassava stems as a mushroom substrate ................................................................. 38

7.3.1 SWOT analysis highlights: cassava stems for mushroom substrate .................. 40

7.3.2 Conclusions: cassava stems for mushroom substrate ....................................... 40

7.4 Cassava leaves for animal feed ................................................................................. 40

7.4.1 SWOT analysis highlights: cassava leaved for animal feed ................................ 41

7.4.2 Conclusions: cassava leaves for animal feed ..................................................... 41

References ............................................................................................................................... 42

Annex 1: Detailed Country Report ‐ Ghana ............................................................................ 43

Annex 2: Detailed Country Report ‐ Nigeria ........................................................................... 81

Annex 3: Detailed Country Report ‐ Thailand ....................................................................... 123

Annex 4: Detailed Country Report ‐ Vietnam ....................................................................... 205

Snack or confectionary companies ........................................................................................ 227

VND 8,000 per kg ................................................................................................................... 227

Retailers or directly from Cassava processing units or companies ....................................... 227

No promotional drives since there is ready market. ............................................................. 227

Snack, confectionary companies, other food companies (outside snack) ............................ 227

VND 50,000 per kg ................................................................................................................. 227

Retailers or corn starch processing units ............................................................................... 227

No promotional drives ........................................................................................................... 227

Snack or confectionary companies other food companies, restaurant (outside snack) ....... 227

VND 15,600 per kg ................................................................................................................. 227

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Retailers or wheat milling companies .................................................................................... 227



VND 12,000 per kg ................................................................................................................. 227

Retailers ................................................................................................................................. 227



VND 100,000 per litre ............................................................................................................ 227

Through import companies ................................................................................................... 227



VND 6,761 per kg ................................................................................................................... 228

Food Additives Supplier companies ....................................................................................... 228



20,5$ per kg ........................................................................................................................... 228

Food Additives Supplier companies ....................................................................................... 228



VND 12,000 per kg ................................................................................................................. 228

Salt companies ....................................................................................................................... 228


Snack or confectionary companies ........................................................................................ 228

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SummaryThis report summarises the results of four studies of the potential markets for a series of

possible commercial uses of underutilised waste in the cassava and yam value chain. The

individual country market studies are for Ghana, Nigeria, Thailand and Vietnam and cover a

range of different waste products (e.g. peels, brewing waste, starch manufacturing waste)

and market sectors (e.g. animal feed, snacks and mushroom substrate).

The work is a deliverable under Work Package 1 of the project “Gains from Losses of Roots

and Tuber Crops” (GRATITIDE) funded on the Framework 7 provision of the European Union

(EU). The objective of the project is to reduce post‐harvest losses in the target roots and

tuber value chains by finding commercial opportunities for these wastes. The market survey

deliverable aims to assess whether the proposed products from waste are commercially

viable. It does this through a review of the possible market spaces allied with a value chain

analysis of the various target industrial sectors (see Naziri et al, 2013). The Annexed country

Market Studies provide a wealth of detailed information of use to possible investors in these

newly identified market opportunities for roots and tuber waste.

The method adopted for the Market Studies was a review of relevant literature (much of

which is non‐formal) combined with a series of interviews with key industry actors in the

identified sectors. The work was carried out by the country teams in the second half of

2012.

We found that the likelihood of successful market development for waste seems better in

South East Asia than in the African countries surveyed. This reflects the existence of very

large intermediary industries in those countries that can pull potential demand.

A key over‐arching issue for the successful utilisation of waste in the target sectors was

found to be aggregation from a widely dispersed base to focussed points of consumption is

a common problem for agricultural wastes.

We found that, for some of the target sectors, such as animal feed for goats in Ghana and

Nigeria, the absence of a formal feed sector greatly weakens the case for using roots and

tuber waste as a source of demand pull. The implication of this finding is that on‐farm and

small‐scale incorporation of peels in goat feed should be the focus of effort for

demonstration in GRATITUDE.

It was found that scale economies and low margins are important factors in the starch

recovery and syrup manufacturing sub‐sectors. The implication of this is that utilisation of

cassava peels would not be viable because of the relatively high aggregation expense

compared with whole tubers.

In Thailand and Vietnam we found that low transport costs and a rapidly expending

domestic aquaculture sector makes the utilisation of waste cassava stems and leaves more

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interesting than expected. This implies that GRATITUDE should focus its demonstration

efforts on aquaculture feed in these countries rather than goat feed as planned.

The research found that the potential market for snack products in Vietnam using cassava

beer brewing by‐products is excellent. Snack markets in all target economies have high

potential for using processed roots and tubers, especially high quality flours.

We found huge potential for using cassava waste in mushroom media in all countries where

cassava waste products can compete with sawdust. The scale of this potential demand in

Vietnam and Thailand is rather large at 3‐400,000 Mt per annum.

From these findings we recommend the following:

For goat feed, GRATITUDE should focus on demonstrating the efficacy and viability

of inclusion at small farm level before wider promotion.

In Thailand and Vietnam research on the viability of including aggregated leaf and

stem waste in aquaculture should be considered.

The growing demand for snacks is universal across the target countries. We

recommend that, where brewers’ waste exists, GRATITUDE should proceed to

demonstrate with SME’s.

Market demand for mushroom media is strong. Specific SME based viability analysis

and business planning is recommended in areas where cassava waste is cheaper

than sawdust.

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1 Introduction:aims,objectivesandscopeThis report presents the findings from four country studies of the potential markets for a

range of possible commercial uses of waste in the cassava and yam value chains. It is a

deliverable under Work Package 1 of the project “Gains from Losses of Roots and Tuber

Crops” (GRATITUDE) funded on the Framework 7 provision of the European Union (EU). The

project aims to reduce waste from post‐harvest losses and find commercial uses for

unavoidable waste. In Work Package 1 (WP1) we aim to ensure that the technologies

developed in the project are commercially viable. Specifically, the purpose of this set of

four country market studies is to examine the scale, scope and entry requirements for

potential new markets that have been identified for cassava and yam waste. We also try to

provide some basic information for potential new businesses that might emerge from the

GRATITUDE project work showing them the demand potential and competitive environment

for new products based on utilisation of cassava and yam waste.

This summary report brings together the findings of four individual country market studies

that can be found separately on the project website (http://www.fp7‐gratitude.eu/). After

providing a short background on the production and waste available for processing in each

country, the report explains the methodology applied across the range of products and

countries. The key market segments are then considered in detail and conclusions drawn

for research in other GRATITUDE work packages (mainly WP4).

Note that the findings of this report need to be considered in conjunction with those of the

Value Chain Analyses conducted in parallel in all four countries (Naziri et al, 2013).

1.1 ReportformatandlayoutThis part of the report summarises the four detailed country studies, which are provided as

annexes. Chapter 1 summarises the key findings. In Chapter 2 we lay out the aims of the

market studies. Chapter 3 summarises the background information for all the countries.

Chapter 4 discusses the method used to collect the information. In Chapters 5 to 8 the

summary information from individual countries and their target sub‐sectors are considered

in more detail. References and acronyms not mentioned in the summary report can be

found in each ‘stand‐alone’ country report appended.

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2 Method,scopeanddefinitions

2.1 MethodandscopeThese market studies were undertaken during the period July to December 2012. The

research area, scope and instruments were agreed in two workshop conducted in Ghana

(18th – 22nd June 2012) and Vietnam (21st to 25th May 2012). Each country was given an

outline methodology and the team agreed on a) a set of selection criteria for choosing the

research area; and, b) the best and most practical fit between these selection criteria and

geographical regions within the target countries. The criteria selected by the country

research teams are summarised in Table 1.

Table 1: research selection criteria

Criteria Key questions addressed

Importance of crops How important is the crop to the local agricultural economy? Are production and processing areas co‐located?

Potential to maximise lesson learning How replicable might the lessons drawn from research in this location and with this product be?

Existing trade and activity Does the research team know the area and its key actors (to facilitate data collection and value chain entry)?

Location of partner SMEs Are there SME’s in the research location who are expecting to work with the project?

Sufficient volume of product Does the area produce sufficient waste to make utilisation commercially interesting?

Known loss problem Has a loss/waste issue already been identified?

Existing complementary project(s) Are there opportunities to learn from others or promote leverage?

Agro‐ecological zones Is the research area representative of a wider ecological zone where lessons could be replicated?

Fresh vs. small vs. industrial What kind of industry scale is available in the area (with a preference for a range)?

Post‐harvest management Are there any particularly typical or useful post‐harvest management practices that should be captured in the area?

Work Package 4 sectors present Does the chosen area cover all of the WP$ sectors (animal feed, beverages, snacks, mushrooms)?

Distance from market – market access Is the target area reachable from possible sites of market demand?

As a result of applying the criteria in Table 2 the following geographical foci were chosen for

the detailed market studies. The geographical spread of production and consumption

research sites in each target country is shown in Figure 1.

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Table 2: Geographical foci of market research

Country (product)

Key research area

Ghana (Cassava and yam)

Production areas: Atebubu, Kintampo, Techiman, Volta Consumption areas: Accra, Kumasi, Volta

Nigeria (Cassava and yam)

Production areas:North Oyo, Ondo, Ekiti, Ogun Consumption areas: Lagos, Ibadan

Thailand (Cassava)

Production and consumption area: Nakhon Ratchasima

Vietnam (Cassava)

Production and consumption area: Ha Tay, Van Yen (Yen Bai), Binh Duong

Figure 1: map of research site locations

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For the individual country market studies, a selection of research methods were used

including: reviews of existing literature on the target market segments, development of

guide questions, interviews with key informants and group work to determine the Strength,

Weaknesses, Opportunities and Threats (SWOTs) for each sub‐sector, the key element of

the market functionality (the Four P’s) and the potential market space that any new

products from waste might inhabit (Market Gap analysis).

Field research was conducted during the period July – September 2012 and summary

country reports delivered between September 2012 and January 2013. This compilation of

the country reports was prepared in February 2013.

2.1.1 Selectionofresearchsectors

Table 3 summarises the sub‐sectors whose markets were considered in detail in the target

countries. These sub‐sectors were identified during the GRATITUDE project review of the

state of the art and were validated by further literature reviews. With the exception of

utilising cassava and yam waste for mushroom growth media, which was considered in all

target countries, the range of sub‐sectors whose markets were considered was different in

each country.

Table 3: Summary of sub‐sectors by country

Country Sub‐sectors researched

Animal feed ‐goats

Growth media ‐ mushrooms

Starch and syrup recovery

Snack foods from brewery

waste

Ghana

Nigeria

Thailand (various animals)

Vietnam Source: GRATITUDE

2.1.2 Definitionsofwasteandlosses

Types of wastes considered under the Gratitude project included root peels/skins;

(fermented) wet fibrous siftings, waste water and particles, and to a lesser extent flour

siftings, and pulp (fibre that remains after starch extraction from tubers). Primarily, the

study focuses on where these wasted are generated along the value chain and the ability to

collect in large quantities from the processing points either at the household level, village

level or factory/industrial level. Particularly important for the sake of this study (and linking

with WP4) is the assessment of level, causes, current/potential uses and value of peels.

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2.1.3 Challengesfacedbytheresearch

The results of the work are variable in quality and depth. In part, this reflects the challenges

faced by individual researchers in the countries. In Nigeria, for example, the scale of the

task was great due to the huge physical area to cover and the paucity of secondary data

available. In Thailand, much commercial data is freely available and the task was relatively

straightforward. Ghana and Vietnam fell between these poles in terms of data availability

and the challenges faced by researchers to ‘discover’ market detail. Nevertheless, we feel

that useful results have been produced and will allow key research decisions to be made.

We would also say that, for many of the collaborators with GRATITUDE the concept of

market research was completely new. The project took the view that this was an

opportunity to develop capacity in partner organisations and therefore training was

provided, however, in all the countries, the field work and reports was done by none

specialist mostly completing this type of task for the first time.

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3 Overviewofproduction,consumptionandwasteofyamandcassavainGhana,Nigeria,ThailandandVietnam

This section summarises the current status of cassava and yam production and consumption

in the target countries. More detail of the structure of these value chains can be found in

the companion Value Chain Analysis (Naziri et al, 2013). In addition, and as agreed in the

Programme of Work for GRATITUDE, parallel Value Chain Analysis for yams was conducted

in Ghana and Nigeria by the Bill and Melinda Gates Foundation funded project ‘Yam

Improvement for Income and Food Security in West Africa’ (YIIFSWA) (see Otto E et al and

Phillips D et al, 2013).

3.1 Estimateofthewasteavailableforutilisationintheidentifiedmarkets

The GRATITUDE value chain analysis has estimated the total volume of cassava and yam

waste available in each target country that could be utilised as a raw material for the

markets described below.

Table 4: Estimated amount and location of by‐products

Item Parameters On farm (Mt)

Dry starch processor (Mt)

Wet starch processor (Mt)

Total (Mt)

Stems 10 t/Ha 5,542,160 5,542,160

Leaves 9 t/Ha 4,987,944 4,987,944

Dry peels 3% of FCR weight (dry starch)

161,299 161,299

Wet peels 2% of FCR weight (dry starch) 3% of FCR weight

(wet starch)

107,533 14,221 121,753

Wet pulp 25%‐28% of FCR weight 1,505,461 118,504 1,623,966

Black starch 4.5% of FCR weight (wet starch)

21,331 21,331

Waste water (m

3)

6.3 m3/t FCR processed (dry starch) 3.5 m3/t FCR processed (wet starch)

33,872,876 1,659,062 35,531,938

Source: Naziri et al (2013)

3.2 Ghana(cassavaandyam)Cassava is cultivated in all the agro‐ecological zones in Ghana. Its production is growing

rapidly (25.6% between 2009 and 2011 – see table 4). More than 90% of farmers produce

cassava and per capita consumption is estimated at 153kg/annum (MoFA‐SRID 2011). Most

cassava (50%) is used fresh due to its high perishability. The rest are processed into various

products including gari (25%), agbelima (18%), kokonte (5%) and (1%) industrial purpose

(Adjekum, 2006 and Onumah et al., 2008).

Yam is a high value crop and significant source of dietary energy in Ghana. Yam production

is rather static around a figure of about 5.8 million Mt between 2009 and 2011. In 2011,

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Ghana exported approximately 27,000 MT of yam (MoFA‐SRID, 2012)1. Yam production in

Ghana is concentrated largely in the Brong Ahafo and the Northern Regions constituting

about 37% and 34% of the total yam production in Ghana respectively (see Figure 2). Per

capita consumption of yam in Ghana is estimated at 42kg/annum. Yam is largely sold fresh

in Ghana.

Figure 2: Estimated total production of cassava and yam in Ghana

Source: FAOSTAT

In Ghana cassava waste from peels is estimated at 25‐35\5 of the total volume of product

entering the value chain. This represents a total quantity of peels in Ghana of 3.7 million

tonnes per annum. About 90% of these peels are generated at the point of processing (in

Ghana this means for ‘gari’, ‘agbelima’, ‘kokonte’ and ‘High Quality Cassava Flour’). The

remainder is located either at food outlets (‘chop bars’) or within individual households.

The VCA showed that 90% of the existing peels are unutilised. Of the very limited utilisation

found, most was for informal animal feeding.

The study concluded that utilisation of cassava peels from processing sites presents the best

opportunity for the economic utilisation of waste material in other sectors.

Yam waste is largely generated at consumption sites (e.g. households and chop bars) and a

very few small‐scale yam processing factories. Yam peel is about 14% of total yam volume

in Ghana.

It was concluded that yam waste is currently too dispersed in Ghana to make collection and

processing economic given the small volumes available.

1Nb: Reference used in this summary report can be found in the annexed individual country papers

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Large‐scale disposal of cassava peels and liquid waste was found to be a major

environmental threat, though given weak environmental regulation, this is a cost that is

currently incurred by the wider community and not the producer.

3.3 Nigeria(cassavaandyam)Nigeria accounts for over 70 – 76 per cent of the world’s yam production amounting to 17

million tonnes from land area 2,837,000 hectares in 2009. In 2010 the total cassava

production was 37.5 million tonnes (see Figure 3 below). Farm size in the research area is

small (0.5 – 2 ha) and management practices are minimal/smallholder.

Figure 3: Estimated production of cassava and yam in Nigeria

Source: FAOSTAT

Both yam and cassava production have declined somewhat in this period, but overall

production remains very substantial by international standards and will clearly generate

massive volumes of waste for the foreseeable future.

Types of waste generated in the cassava and yam production and processing sectors

include: leaves, stems, root peels/skins; fermented wet fibrous siftings (from fufu

processing), waste water and particles (from the dewatering stage of processing), and to a

lesser extent flour siftings (during the production of HQCF), and pulp (fibre that remains

after starch extraction from tuber).

Most yam waste is generated at either household or informal restaurant level and therefore

highly dispersed. Cassava waste, however, is to some extent concentrated at small and

medium scale processing facilities making traditional value added products such as ‘gari’,

‘lafun’ and ‘fufu’. I high proportion of cassava and yam is consumed on‐farm. It is also sold

raw/fresh, roasted, boiled, pounded as flour and as dried ‘chips’ in various forms.

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The total quantity of cassava peels generated from the total annual production is estimated

at approximately 3.75 million tonnes annually (taking annual average production for 2010 of

37.5 million tonnes i.e. peel is 10% of the cassava root (Okafor, 1998; Onyimonyi et al 2007))

and this is validated by the value chain analysis conducted for GRATITUDE.

3.4 Thailand(cassava)Thailand produces between 20‐25 million tonnes of raw cassava a year and is the world’s

third largest producer after Nigeria and Brazil (see Figure 4). The bulk of this goes into two

industrial chains: cassava chips (45%) and cassava starch (55%). Most of the chips are

exported (70%) with the Chinese bioethanol market being the key source of demand.

Cassava starch is used for a whole range of industrial and food ingredients both domestically

and for export.

Figure 4: Cassava production in Thailand

Source: FAOSTAT

The key losses in the Thai cassava value chain are incurred on farm or in chain. Wasted

include stems and leaves generated on‐farm and underutilised. In the cassava starch value

chain, wastes are mostly generated from cassava starch processing including dry peel (2.8%

of root weight), wet peel (1.4% of root weight), wastewater (16.81m3/ton starch) and

cassava pulp (1.4 ton/ton starch).

The key markets considered here for the utilisation of cassava waste in Thailand are:

utilising cassava leaves as a replacement for Leucaena leaf and other protein sources in

animal feed, particularly at the homestead level of production; expanding the already

existing tradition of using cassava peels as a mushroom growth substrate ingredient; using

wet pulp from the starch making process as an animal feed ingredient to replace cassava

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chips; and, using cassava starch pulp as an ingredient various starch based sugar products

and sugar syrups.

3.5 Vietnam(cassava)Cassava is among the most important food crops in Vietnam. In the past twelve years,

cassava production increased by nearly 400% largely as a result of demand‐pull from the

starch sector combined with improved high starch planting material and management

practices.

Cassava production growth in Vietnam is summaries in Figure 5.

Figure 5: Production of cassava in Vietnam (selected years)

Source: Government of Vietnam statistics

Alongside the 9.9 million tonnes of fresh cassava produced in 2011 was a similar volume of

stem and leaf waste, some of which is used in the animal feed sector. About 3% of the fresh

root is peel waste, representing about 0.24 million tonnes available at small scale processing

facilities. This is currently either burnt or used as organic fertilizer. Wastewater from starch

production is utilised for biogas.

3.6 SummaryofkeydemographicsbycountryReview of the population and demographics information for the four target countries (Table

5) reveals some useful insights into their future market potential and demand dynamics.

Ghana, Nigeria and Vietnam have substantial population growth. This is reflected in a youth

bulge which is present in tall the target markets as demonstrated by the low median

population age. Ghana and Nigeria have higher urban populations than Thailand and

Vietnam. All the countries are still urbanising at a rapid rate. Ghana, Nigeria and Vietnam

19

have low per capita GDP but all the countries are experiencing a period of substantial per

capita GDP growth.

Table 5: Population and demographic profile of the target countries

Country Population (Million)1/

Population growth rate (%

per year)2/

Urbanisation (% of

population in cities)3/

Urbanisation rate (%

increase in population in cities per

year)3/

Per capita GDP

(US$ per year)4/

GDP growth (% per year)2/

Median age (men and

women in

years)2/

Ghana 24.7 2.20 51.9 3.5 1,580 8.2 21.1

Nigeria 166.6 2.55 49.6 3.8 1,522 7.1 19.1

Thailand 65.9 0.54 34.1 1.7 5,395 5.6 33.7

Vietnam 87.8 1.05 31.0 3.1 1,374 5.1 27.4

World mean age = 28.4

Notes: GDP = Gross Domestic Product 1/ various official estimates 2/ CIA World Factbook 2012 3/ United Nations Population Division, 2009 4/ International Monetary Fund, 2011

The net impact of these statistics is that these countries have a rapidly growing urban

middle class population with rising per capita income, greater spending power and income

elasticity’s of demand that are greater than one. This profile strongly support the expansion

of processed and convenience food products in these markets.

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4 Marketpotentialforcassavaandyamwaste‐Ghana

4.1 IntroductionThis section considers the market potential for three possible products from cassava and

yam waste in Ghana: as a substrate for mushroom production, as an ingredient for feeding

goats, and as a source of additional recovered starch or sugar syrup. More detailed analysis

can be found in the country report at Annexes 1 – 4.

4.2 SubstrateformushroomproductionGhana has a nascent mushroom production sector that is responding to a rapid increase in

demand for mushrooms and mushroom products largely driven by economic development

and the emergence of an urban middle class. Total consumption of cultivated mushrooms is

unknown, but sources of demand abound. For example, Ghana has rapidly growing

supermarket sector selling fresh mushrooms year round currently imported from South

Africa. There is also an increasingly important formal restaurant sector focussed around

non‐traditional cuisine that demands mushrooms such as ‘pizza’ and ‘chinese’.

It is estimated that there are at least 2,000 small, medium and large‐scale mushroom

cultivators in Ghana, mostly concentrated near urban centres (e.g. Accra). The estimated

demand for compost bags of 1kg each is summarised in Table 6 below.

Table 6: Estimated demand for compost bags in Ghana

Scale of operation Estimated number of businesses

Bags/kg per growth cycle (3 months) per

operation

Total annual demand (Mt)

Small 2,000 2,000 16,000

Medium 50 5,000‐15,000 1,000‐3,000

Large Unknown – say 10 20,000 – 100,000 800‐4,000

Total 17,800‐23,000 Source: GRATITUDE

The key ingredient for mushroom compost at the moment is sawdust but the research

suggests that this medium is increasingly in short supply due to dwindling forestry resources

in Ghana. If 50% of the current mushroom substrate was replaced by cassava/yam peels

this would represent an initial conservative demand somewhere between 10,000 and

15,000mt.

A key constraint to growth in this demand for substrate is the availability of spawn in Ghana.

Up to now this has been provided by Government institutions and donor projects.

The mushroom market seems to be segmented into three elements after production. These

are: sale of fresh mushrooms, sale of compost bags containing mushrooms for on‐growing

and manufacture of value added mushroom products such as dried mushrooms.

Oyster mushrooms are the key varieties produced in Ghana.

21

There seems to be some seasonal variation in demand at present largely due to the

availability of wild mushrooms on the market in season. Most consumers still have a

preference for local varieties.

Studies demonstrate that a high proportion of Southern Ghanaian families regularly

consuming mushrooms (50%).

Some evidence was found of export to neighbouring countries but this does not feature in

the national statistics.

Minimum entry for commercial mushroom production is said to be 2 Mt that translates as

about 1mt/year of cassava peel compost at 50% inclusion.

The selling price per Kg of mushroom growing medium is about GHc 0.60 (Euro 0.24).

Compost (rice bran, say) is about 6% of production costs, the major cost items being spawn,

transport, gas, water and overheads. The fact that the key ingredient of growth medium (by

bulk) is actually not a critical cost factor is important and may impact on the possible

success of substitution with cassava or yam waste.

4.2.1 SWOTanalysishighlights:mushroommedium

Strengths ‐ Strong demand‐pull for mushrooms from rapid demographic and dietary changes ‐ Consolidation of the mushroom production sector means larger, easier to supply

sources of demand ‐ Shortage of alterative agricultural waste (e.g. sawdust)

Opportunities ‐ Strong unfulfilled down‐stream demand for mushroom products should drive future

demand ‐ Low per capita animal protein consumption

Weaknesses ‐ Compost media is not the most important cost factor in substrate production ‐ Growth of the industry is currently limited by spawn supply deficiencies ‐ Supply of waste and mushroom production are widely dispersed ‐ Mushroom growers are unclear about the safety of using cassava peels as a growth

medium Threats

‐ Ghana’s domestic food processing sector is under‐developed and currently does not meet the standards or marketing skills of, say, imported South African products.

4.2.2 Conclusions:mushroomsubstrate

The market for mushrooms in Ghana will grow in the near term and represents an

important investment opportunity especially as economies of scale are available. However,

the small share of growth medium cost in the overall business model for mushroom

production means that any product has to compete with very cheap alternatives.

22

4.3 IngredientformixedgoatfeedGoat production is ubiquitous in Ghana, particularly in the coastal and Northern Regions. In

2010 there were estimated to be nearly 5 million animals, mostly of indigenous species, and

mostly sold live on the informal market or in local butcheries. Breeds are unimproved and

supplemental or intensive feeding is not the norm.

Goat production is predominantly on a small scale and semi‐intensive. Urban production is

increasingly important in Ghana and it has been estimated that there are more than one

million goats produced in cities, largely in back yards. Surveys suggest that over 800,000

Ghanaian families own goats.

Key period of peak demand for goats and goat meat are religious festivals and holidays. The

traditional form of supply to market is whole live goat. The local goat variety is small and

therefore buying individual ‘cuts’ is less common than purchasing a whole animal for

disposal in a single consumption event.

Three main feeding strategies are used for goats in Ghana:

‐ free range, mostly practiced in rural and peri‐urban areas, with dry‐season supplemental feeding ad hoc;

‐ cut‐and‐carry forage and supplemental feeding with household waste, mostly practiced in urban areas; and,

‐ intensive production in paddocks and pastures using mixed feed practices by very few commercial farmers.

Only one company currently produces goat feed in Ghana using maize, soya meal, wheat

bran and vitamin premix in a compounded pellet form. Total production is unknown, but

said to be small and diminishing.

Other products available that might compete with cassava or yam peels included: maize

straw, rice straw, cocoa pod husks, plantain peel and poultry manure. Cassava peel is

commonly fed to goats when available, but considered of almost no commercial value.

4.3.1 SWOTanalysishighlights:mixedgoatfeed

Strengths ‐ Cassava waste is a high quality goat feed ingredient and a low cost

Opportunities ‐ Urban markets for mixed goat feed for back‐yard producers have not been tested –

as controls on animals increase, growers will need to purchase feed to continue production

Weaknesses ‐ The market for mixed goat feed is small and there is no evidence of growth ‐ The impact of high cyanide concentrations on feed quality is unknown ‐ Most goat production is free range – so no need for supplementary feeding

23

Threats ‐ There are a number of other sources of cheap agricultural residues in Ghana

4.3.2 Conclusions:ingredientformixedgoatfeed

Ghana has a large and growing goat population, especially in urban areas. However, the

scope of selling supplemental mixed feed to this market would require significant marketing

and demonstration of the financial benefits to producers. Large‐scale commercial

production of goats is unlikely whilst individual families still hold the habit of growing their

own goats at home. Focus on the urban goat grower without access to supplemental feeds

would be the best starting point, assuming cassava and yam peels are a price competitive

ingredient compared with widely available alternatives.

4.4 StarchrecoveryandsugarsyrupGhana imports relatively small quantities of industrial starch for the bakery and plywood

sectors. In 2010 this amounted to 350mt. Demand is growing, but for most uses high

quality product is required. One local company uses cassava to make modified starch, but

the economics of production are questionable – it sells for USD420/Mt which will well above

international prices for modified starch.

An informal trade exists in starch extracted from the liquid waste of ‘gari’ production but

this study suggests that the current scale of production is uneconomic.

There is demand for maltose from the domestic food industry for beverages and sweets.

Currently all maltose is imported (about 20,000mt/yr) at about USD600/Mt. If sufficient

quantity to meet minimum demand could be sourced from cassava waste this could be an

interesting market. Further detailed research would be needed to locate a firm interested

to test such technology and this is outside the scope of the present project. A companion

study to GRATITUDE, the Cassava: Adding Value for Africa (C:AVA) project, funded by the Bill

and Melinda Gates Foundation (BMGF), may indicate other opportunities for starch

utilisation.

4.4.1 SWOTAnalysishighlights:starchrecoveryandsugarsyrup

Strengths ‐ Growing demand exists for various qualities of starch in the domestic economy

Opportunities ‐ Utilising waste from cassava processing might improve the economics of its use as an

industrial ingredient ‐ Several starch using sectors are currently under‐supplied (confectionary, sweets,

beverages, plywood, paperboard and bakery) Weaknesses

‐ Consistent supply of raw material remains a key issue for industrial applications of cassava such as HQCF

Threats

24

‐ Bulk starch and syrup is very cheap in the global market

4.4.2 Conclusions:Starchrecoveryandsugarsyrup

Starch recovery at the level of the small‐scale processor is unlikely to be economic at the

current scale of production and price of imported starch.

25

5 Marketpotentialforcassavaandyamwaste–Nigeria

5.1 IntroductionThis section summarises the market potential for cassava and yam waste in two sub‐sectors

in Nigeria: as a substrate for mushroom production, and as an ingredient for feeding goats.

More detailed analysis can be found in the Nigerian country report at Annex 2.

5.2 SubstrateformushroomproductionWild harvested mushrooms are a traditional food in Nigeria. Both straw and oyster

mushrooms are produced domestically and available in the wild. No evidence was found of

yam or cassava peels being utilised in existing mushroom substrate production, but there

have been some limited domestic trials.

Mushrooms are traditionally used in soups and stews. Increasing Westernisation of cuisine

in Nigeria means that supermarkets, restaurants and catering services are introducing

products containing mushrooms to the local pallet. Imported and locally produced ‘exotic’

mushrooms are now common, particularly in Nigeria’s fast expanding urban areas.

Imported ‘exotic’ varieties are available both in both fresh and dried forms.

Local demand from supermarkets and food outlets in general seems to be unsated and

almost unlimited. In Lagos, for example, there are 451 hotels and 65 ‘international’ hotels

whose demand for fresh mushrooms is largely unmet.

Domestic demand for mushrooms is unknown, but likely to be very substantial and growing

in line with changing food habits, urbanisation and the widespread availability of

refrigeration.

The research found 39 mushroom producers associated with one source of mushroom

inoculate (FIIRO) alone. Those identified tend to be small‐scale (annual turnover of N2‐3m).

This type of producer makes her own substrate from available materials.

Nigeria has a mushroom producers association, the Mushroom Growers Association of

Nigeria, and the research found examples of emerging mushroom growers cooperatives and

larger scale producers with a web presence.

Exotic fresh mushrooms sell in supermarkets in Nigeria for N4,500/kg (button in 250g pre‐

packs) and N1,650 (oyster in 300g pre‐packs). Wholesale prices for oyster mushrooms seem

to be in the region of N1,000/kg.

There is no branding or promotion of locally produced mushrooms in Nigeria and this

represents a considerable opportunity to easily grow market share with relatively simple

marketing strategies.

26

5.2.1 SWOTanalysishighlights:substrateformushroomproduction

Strengths ‐ Large and rapidly growing urban middle class market ‐ Higher yields from cassava and yam waste then the key competitor, saw dust, the

supply of which is declining ‐ A growing number of small and medium scale cassava processing factories with

available waste Weaknesses

‐ Poor availability of spawn ‐ Very small scale of production limits scale economies ‐ Lack of sector coordination to supply large scale demand ‐ Inadequate branding and product presentation ‐ Physical distances between the sources of substrate (e.g. cassava processing sites in

the central and Northern areas) and the demand for mushrooms in the large cities of the South West.

‐ Impact of cyanide in cassava waste on product and market unknown ‐ No central large scale source of yam peels ‐ Current market size for mushroom media (e.g. few, widely dispersed mushroom

growers) not attractive for investment. Opportunities

‐ Declining competition from wild mushrooms ‐ Strong domestic entrepreneurial spirit

Threats ‐ Other, cheaper or more appealing foods

GAP analysis suggests that the market for food and in particular sources of protein, is

expanding quickly in Nigeria. Currently frozen chicken is cheaper than mushrooms (N650/kg

vs. N1,000/kg). However, these goods are complimentary rather than competing. As diets

‘Westernise’ Nigerians will eat more animal protein and the experience in more developed

economies is that this drives demand for complementary goods such as mushrooms which

are used as sauces, relishes and vegetables in stews and accompanying new dishes like

pasta, pies, pizza and curry.


This analysis shows that there is great potential for growth in mushroom consumption allied

to the general changes in consumption patterns in Nigeria and an overall increase the

market size as a result of urbanisation.

The missing element in the mix seems to be large‐scale commercial mushroom producers

and substrate/inoculant businesses.

More detailed costing of cassava waste on a case‐by‐case basis is needed to judge whether

individual mushroom growing businesses will benefit from its utilisation.

The lack of volume of yam waste in a single location suggests that it will be uneconomic to

utilise this for mushroom media unless this production model changes.

27

5.3 IngredientformixedgoatfeedGoat production and consumption is common throughout Nigeria. Goats play a cultural role

as well as being an important contributor to food security. Ease of production and use (i.e.,

conversion from live animal into available cash) makes the traditional hardy goat an

important part of the livelihood strategies of rural and urban Nigerians in a wide range of

income categories. The use of goats in ritual, religious and social obligations (e.g. wedding

and funerals) means that there are strong inter‐annual and inter‐regional peaks of demand.

There is a strong tradition of goat fattening to meet these peaks.

Figures for goat populations vary widely and are somewhat suspect. In 2010 65.6 million

goats were recorded in Nigeria compared with 34.6 million sheep and 18.8 million cattle

(see Figure 6). All animal populations are increasing, but growth in goat numbers strongly

outstrips those for sheep and cattle.

Figure 6: Nigerian animal population 2005‐2010

Source: FAOSTAT 2012

Unlike some countries, goat meat is considered a premium quality product in Nigeria and

sells at a consistently higher price than beef. In recent years, competition from frozen

chicken meat has grown, but consumer preference for the goat flavour remains strong.

Local goat varieties are West African Dwarf, Sokoro Red and West African Long Legged; all

adapted local breed preferred for their hardiness rather than efficiency of feed conversion.

This reflects the production norms that are for free and semi‐free range.

Nigeria is currently protein deficient and has to import large volumes of processed meat

products to make this up.

Average flock size is small. Production is characteristically part of a smallholder agricultural

farming system. Populations and herd size tends to be larger in the North of Nigeria.

Marketing tends to be live and through the informal local butchery sector. There is a strong

28

flow of surplus live goats from the Northern savannah States to the forested and urban

South and South West.

Almost all current production systems for goats are extensive with occasional dry season

and opportunistic supplementation with available agricultural wastes.

Some larger scale herds and goat farmer associations were identified, but commercial scale

production of goats has not yet emerged in Nigeria.

Most involved in the goat sector believe that the strong supply of cheap surplus goats from

Northern Nigeria (and in turn from North of Nigeria) makes intensive goat production in the

key areas of demand in the South uneconomic even when transport costs and losses are

taken into account.

Review of one states formal hotel, restaurant and supermarket sector (Lagos) alone shows

the enormous scale of possible meat outlets in the fast growing urban areas of Nigeria.

Lagos has 1,135 supermarkets, early one thousand restaurants, 450 hotels and 357 catering

businesses.

Goat dishes are hugely popular both at home and as fast food. Nigerian each a wide range

of goat stews and soups and happily utilise all parts of the animal.

The animal feed industry in Nigeria has been through a number of growth and decline

cycles, largely caused by macro‐economic conditions, but also due to some

mismanagement. The industry is highly dependent upon imported ingredients. A huge

decline in the domestic chicken flock combined with the availability of cheap poultry meat

on the international market has fuelled sectoral decline. The feed industry is said to

produce 2 million tonnes of mixed feed a year, 90% of which goes to the poultry sector

(Naziri et al, 2013). A high proportion of the Nigerian feed milling sector (some say 50%) is

unregulated. The market share between commercially produced mixed feed, locally milled

supplementary feed and on‐farm produced mixed feed is not known and there seems to be

some confusion about the scale and form of the sector as a result. This makes identifying a

possible market entry points for cassava and yam waste based goat feed products rather

difficult.

Research identified six large‐scale commercial feed millers in Nigeria producing between

30,000 and 130,000 Mt of mixed feed per annum. Other categories are ‘regional

compounders’, ‘toll millers’ and ‘self‐mixers’ who between them account for about 30% of

the regulated market share.

A key challenge to using increased volumes of cassava and yam waste in mixed goat rations

is the low protein content of these species which means that this has to be compensated for

with other, costly, protein sources. Nigeria has good domestic supplies of various oilseed

cakes including cottonseed, groundnut and palm kernel. The relative cost and benefits of

29

different mixes of local feeds will need to be considered to ascertain viability of using

cassava and yam waste.

Several of the larger feed companies contacted produce a combines sheep/goat ration mix,

but demand seems to be very limited and figures for total production are unavailable.

5.3.1 SWOTanalysishighlights:ingredientformixedgoatfeed

Strengths ‐ Year round availability of peels in large quantities as an industrial processing waste ‐ Some evidence of production/productivity advantages against other feed sources ‐ Cultural preference for goat meat over other sources of protein

Opportunities ‐ Growing goat meat consumption population ‐ General protein deficiency in Nigeria

Weaknesses ‐ Cyanide and fibre content may limit inclusion ‐ Lack of any tradition of intensive goat production requiring either supplemental or

mixed purchased goat feed Threats

‐ Other sources of agricultural waste are available ‐ Regulation of the feed industry is very weak and this may undermine its reputation

among consumers and lead to a return to more ‘free‐range’ products

5.3.2 Conclusions:ingredientformixedgoatfeed

If it can be demonstrated that using cassava and yam wasted is economically viable (e.g.

leads to an increase in income over the previous practice) and practicable (e.g. sufficient

volume of waste is available on a regular basis) then it should be possible to produce goat

feed.

The lack of information on goat feed in Nigeria in general suggests that this is an immature

market. Considerable effort will be needed to demonstrate to producers the commercial

advantages of using mixed goat feed or supplement and this will have to happen in parallel

to the introduction of feeds based on cassava and yam waste. Elsewhere in Africa, feed

millers are rapidly adopting contract production systems for urban small‐scale producers.

These involved selling a package of improved animals, improved feed, drugs and advice in

return for a guarantee to buy‐back the mature animal when it reaches a certain weight.

This business model might prove successful in peri‐urban Nigeria.

30

6 Marketpotentialforcassavawaste‐Thailand

6.1 IntroductionThis section considers the market potential for four possible products from cassava waste in

Thailand: as a sugar‐syrup replacement, as a substrate for mushroom production; and, in

two forms (chips and wet mash) as an ingredient for animal feeds. More detailed analysis

can be found in the country report at Annex 3.

6.2 CassavaleavesinanimalfeedCassavas leaves have high protein content, are abundant in Thailand and could be a useful

alternative animal feed ingredient either as a dried powder or as silage. In particular, they

could replace fishmeal and soya bean, both increasingly expensive ingredients. Research

suggests that cassava leaf meal is nearly half as expensive as fishmeal and fieldwork found

that some farmers are already doing this using on‐farm drying and milling.

The main market in Thailand would be to replace Leucaena leaves that seem to be used in a

wide range of animal feed formulations particularly during the dry season. The current

price of milled, dried Leucaena leaves sets the base price for cassava leaves at 7 Baht/kg.

The feeling of the research was that working with feed ingredients traders to supply bags of

milled dried cassava leaves to local self‐mixing animal producers would be the best starting

point.

The total size of this market has been estimated at greater than 15 million tons. The largest

segment of this market is broiler production (5.3 million tonnes) and pig production (4.7

million tonnes), but all other sectors (layers, fish, shrimp and duck) are substantial.

The relatively high labour requirement per kg feed ingredient produced may be prohibitive

but needs testing.

The dependence of this sector on sun drying increases the risk of additional losses.

The means to achieve scale economies should be part of future research into the technical

and economic viability of cassava leaves as animal feed ingredients in Thailand.

6.2.1 SWOTAnalysishighlights:cassavaleavesforanimalfeed

Strengths ‐ High protein content ‐ Widely available in large quantities

Opportunities ‐ Can easily replace Leucaena a common leaf meal feed ingredient ‐ Small scale animal production sector growing rapidly

Weaknesses ‐ Quantity available may not be consistent to supply an industry ‐ Product widely dispersed

31

‐ Needs sun for drying Threat

‐ Labour intensive so sensitive to changes in domestic labour market

6.2.2 Conclusions:cassavaleavesasananimalfeedingredient

The widespread use of dried, milled leucaena leaves in small scale feed production augers

well for the potential of this market.

6.3 SubstrateformushroomproductionIn 2011/12 Thailand produced 20,000mt of mushrooms. The most important varieties are

straw (40%), Sajor‐caju (36%), Shiitake (14%), and Jew’s ear (7%). The total size and value of

the Thai mushroom market is 19,847 tons and 1,267 million Baht, respectively.

The volume of medium uses annually is approximately 150,000 – 200,000 tones for straw

mushroom production alone. There are two types of mushroom cultivation being practiced,

pile or cropping house for straw mushrooms and growing bags for other mushrooms. The

key use for cassava peels is for replacing rice straw in straw mushroom production.

The key ingredients that would be replaced by cassava peels in this medium are rice bran

(15‐20 baht/kg without transport) and sawdust (1.5‐2 baht/kg).

The Thai food sector uses mushroom mainly for traditional Thai and international cuisines

especially Chinese cuisine for domestic consumption.

The production cost of mushroom medium is estimated at 40% of the farm gate price. Rice

bran is, typically, Baht 10 per kg delivered to the farm in 15kg bags and is estimated to be

only a minor element of total costs (about 3%). Other ingredients such as manure, urea,

fertilizer, lime, nutrients and rice flour make up the rest of the costs.

The number of mushroom medium producers was not found. Each type of mushroom

production uses a different medium. A survey of the growers would be required to

ascertain the total.

Cassava peel for straw mushroom grown in ‘pile’ or ‘cropping house’ is traded as bulk and

farmers can get this directly from starch factories. Rice straws are sold as a sheaf with 1m in

length. Each sheaf is about 18‐20 kg with the price around 25‐35 Baht. For sawdust, the

most preferred is from pararubber. This is traded in bulk or bag. The price of bulk sawdust

is approximately 1,400 – 2,300 Baht/ton, depending on transportation distance and

moisture content while the price of bag is more expensive (70‐80 Baht/bag of 25 kg). Grow

bags are usually sold in a size of 0.8‐1.0 kg at the price of 10 Baht/bag, depending on

mushroom types.

32

The mushroom production sector is made up of family run factories. It is estimated that

there are more than 5,800 of these with an average size of 0.5‐3 Rai (0.8‐4.8ha). Most seem

to be in the Central Region of Thailand.

Table 7: Mushroom production in Thailand in 2011/2012.

Information Straw

mushroom Sajor‐caju mushroom

Abalone mushroom

Jew’s ears mushroom

Shiitake mushroom

No. of households involved in production

2,851 2,132 26 699 155

No. of province 34 42 3 5 4

Cultivation area (rai)

10,465 108,908 36 801 50,164

Harvested area (rai)

8,703 123,162 16 243 43,190

Production (kg) 8,283,181 7,231,115 97,757 1,425,437 2,810,250 Source: Information Center, Department of Agricultural Extension.

Table 8: Mushroom production by region

Type Total production

(tons)

% Production by area

Central Northeastern North South

Straw Mushroom

8,283 42.32 38.97 3.91 14.8

Sajor‐caju Mushroom

7,231 89.18 2.94 0.22 7.66

Abalone Mushroom

98 99.2 ‐ 0.8 ‐

Jew's ears Mushroom

1,452 93 ‐ ‐ 7

Shiitake Mushroom

2,810 ‐ 0.24 99.76 ‐

Total production

19,875

Source: Information Center, Department of Agricultural Extension.

Demand for mushrooms in Thailand is highest in October and November due to the national

vegetarian festival called ‘Tesagan Gin Je’, a Chinese/Taoist tradition. During the nine days

of the festival people abstain from all kinds of meat boosting sales of vegetarian dishes.

The main market advantages of cassava as a mushroom medium are price and year round

availability. Demand for fresh mushrooms is growing strongly reflecting a general trend

towards fresh and health giving ingredients.

The key market gap is for production of straw mushrooms, making medium for mushroom

growing bags and, potentially, to expand the Thai mushroom export market.

33

6.3.1 SWOTanalysishighlights:mushroomsubstrate

Strengths ‐ Cassava peels available year round ‐ Cheaper than competing ingredients

Opportunities ‐ Demand for fresh food in Thailand is growing

Weakness ‐ Composting with cassava may take longer than other materials


The market for mushrooms in Thailand is sharply increasing and export is possible.

Opportunities exist to replace existing medium ingredients that have limited seasonal

supply. Demand for pre‐mixed medium bags has not yet been fully explored and represents

an opportunity.

6.4 UseofcassavapeelsandpulpinanimalfeedIn the past decade animal production in Thailand has increased sharply with dramatic grow

in goats (140% ‐ from a small base), dairy cattle (56%), pork (39%) and duck (29%).

Aquaculture is also expanding quickly with shrimp growing 133% in 10 years and fish 58%.

Total feed demand in 2012 was estimated at 15 million tonnes. Poultry is the largest sub‐

sector (52% of total feed used) divided between broilers (35%) and layers (17%).

The geographical dispersion of beef, dairy, pork and poultry production in Thailand closely

correlates with areas of intensive cassava production, particularly in the central ‘belt’ of

Thailand meaning that cassava waste potentially lies close to animal feed and animal

production zones.

Most animal feed in Thailand is made in feed mills (90%) but there is also a significant

volume of home feed mixing. Two main actors dominate the feed manufacturing sector:

Charoen Pokphand Food and Betagro who make around 50% of mixed feed.

Thailand is a major player in the international chicken meat market ranking 4th in the world.

Demand for production of animal products in Thailand is driven both domestically and by

increased international demand for poultry and shrimp in particular. Continued expansion

in meat production and therefore demand for feed ingredients is predicted in the short and

medium terms.

The main carbohydrate sources competing with cassava chips in Thailand are broken rice

and maize. Cassava chips are cheaper, but contain less protein that has to be found from

other ingredients such as soya bean meal or fishmeal.

Cassava pulp is widely used for ruminant feeding, mostly in on‐farm mixed feed systems for

dairy and beef cattle. The key issue for cassava pulp use is storage of wet material and

34

drying during the wet season. Flash drying is expensive. Sun drying is only seasonal.

Pelletizing pulp is being practiced. Evidence of peel being used for silage was found but this

is not widespread.

6.4.1 SWOTanalysishighlights:cassavapulpproduct

Strengths ‐ cheap and abundant ‐ can be sub‐dried on existing chip drying facilities

Opportunities ‐ alternatives (maize and broken rice) are increasing in price faster than cassava chips ‐ demand for domestic animal production is very strong

Weaknesses ‐ wet storage of pulp not possible ‐ drying is expensive ‐ not good for monogastric feed due to high fibre content

Threats ‐ the export price of cassava pulp may be higher than the domestic price ‐ better starch extraction might make the pulp less attractive as a feed ingredient

6.4.2 Conclusions:cassavapeelsandpulpinanimalfeed

There is a real opportunity to better utilise cassava pulp in Thailand with a strong domestic

and export market of animal feed. Better fermentation and drying could significantly

improve the potential of this product.

6.5 StarchrecoveryandsugarsyrupCassava starch in Thailand is largely used for sweeteners (39%) and production of

monosodium glutamate (20%). The market for ingredients to these industries is largely set

by the international price of cane sugar and imported molasses. Price and quality issues

mean that local users are interested in alternative sources on ingredients.

The total market size is very large. Over 4 million tonnes of molasses and cane sugar was

used in Thailand in 2012. Demand has grown 100% in five years.

6.5.1 SWOTanalysishighlights:starchrecoveryandsugarsyrup

Strengths ‐ Molasses replacement from cassava should have more control over impurities ‐ Pulp is a low cost by‐product from starch production

Opportunities ‐ Thai’s food exports are rapidly increasing driving demand for ingredients ‐ Cane sugar prices are rising internationally

Weaknesses ‐ currently cassava pulp cannot be stored ‐ processing has a high energy cost

Threats ‐ prices of alternatives (sugar) and energy are not controllable

35

6.5.2 Conclusions:starchrecoveryandsugarsyrup

Starch pulp has significant recoverable starch that could be used as native starch or as

glucose syrup. Refined syrup and un‐refined syrup (molasses analog) both seem to have

good potential domestic industrial food production markets.

36

7 Marketpotentialforcassavawaste–Vietnam

7.1 IntroductionThis section looks at the market potential for three potential products from cassava waste in

Vietnam: spent brewery waste, cassava pulp waste as a mushroom production substrate

and cassava stems and leaves as ingredients for the animal feed industry. Brewery waste

will result from the introduction of cassava beer in Vietnam and the key industry targeted

for this waste is the snack food market. Fresh cassava roots are fully utilised in Vietnam,

however, stems and leaves are unused or composted. It is estimated that in 2011 Vietnam

produced 9.87 million tonnes of cassava stem and leaf waste.

Cassava production in Vietnam is both an important food security crop and an

industrial/export commodity of global significance. Improved planting material and crop

management practices allied to strong demand domestically and internationally for cassava

starch means that production was 9.9 million tonnes in 2011.

This large‐scale production translates into a high volume of potential waste (Naziri et al,

2013) and this is summarised in Table 9.

Table 9: Summary of cassava waste available in Vietnam

Wastes Ratio Volume Location Current use

Peel 3 % FCR from starch processing 10% from chip processing (small proportion)

At processors Fertilizers

Black starch 3 ‐ 5 % FCR from wet starch processing

20,000 tons At cassava craft village Animal feed, mainly for pig raising

Dry pulp 5‐7.5% FCR 0.3 mil. Tons

At starch processor Animal feed

Waste water 6.3 m3/ ton FCR 30 mil. m3 At starch processors Biogas treatment at industrial level

Stems Around 10 tons/ha 5 mil. Tons On farm Propagation for next season Small amount for Earwood mushroom breeding

Leaves 7‐12 tons/ha 3.5 – 6 mil. Tons

On farm Burn Making compost

Source: Gratitude

7.2 CassavabasedsnacksIn 2011 Vietnam produced and consumed 2.6 billion litres of clear beer and this is expected

to grow in line with demographic and economic changes to 3.7 billion litres by 2016.

A key growth segment of the beer market is those on lower income migrating from local

traditional alcoholic beverages to bottle clear beer. A product based on cassava is, it is

37

believed, cheaper to produce than wheat based beer because of low cost abundant

availability of raw materials within the country. Economic utilisation of the mash by‐

product from cassava beer production could contribute significantly to reducing the overall

cost of production of these beer allowing an aggressive pricing strategy for the beer making

it price competitive at the lowest end of the beer market.

The Vietnamese sweet and snack sector grew by 15% between 2007 and 2011 to annual

sales of VND 5.3 trillion. This is driven by demographic factors such as a youthful population

profile, rapid urbanisation, lifestyle changes (less food preparation time) and increasingly

sophisticated consumption and marketing patterns (e.g. the growth of supermarkets). Per

capita snack consumption is still low compared with, say, the USA, so there remains great

scope for growth. The health backlash against poor quality nutrition and the strong focus of

marketing on school and pre‐school age children has not yet materialised in Vietnam.

However, if the pattern of other countries is followed, some movement towards the

emergence of a ‘health’ snack segment is likely.

The largest market segment is sweet and savoury snacks (35,000 tonnes in 2011) followed

by extruded snacks (14,705 tonnes in 2011). All sectors are growing, but it is notable that

the production of crisps/chips has nearly doubled in 6 years to 2,251 thousand tonnes.

The key market growth area for retailing snacks is supermarkets and this is happening at the

expense of traditional outlets such as small independent grocers and convenience stores.

Snacks are moving away from being a ‘treat’ in Vietnam to be a regular part of daily diet.

Typical pack weights are between 20g and 60g and prices from VND2,000 for ‘Oishi’ brand

to VND6,000 for seaweed flavour ‘Poca’ brand.

The Vietnamese snack industry is quite fragmented. There are some large players like

PepsiCo with a range of branded products, but also an unknown but large number of small

scale snack producers, packers and baggers, often with their own brands and market niches

or regions. The research identified 33 large players, none with market domination. Up to

25% of the market is taken by small‐scale producers. Key competing ingredients for spent

cassava beer mash include rice flour, corn meal and wheat flour. All of these are

substantially more expensive than the envisaged ex‐factor price of beer mash of VND

1,000/kg, suggesting that a higher market entry price might be possible.

7.2.1 SWOTAnalysishighlights:cassavabasedsnacks

Strengths ‐ Demand for snacks is growing ‐ Cassava beer mash may have dietary values over its competitors that are of value in

the snack sector (high fibre, low calories, improved digestibility) ‐ Cassava beer spent mash will be cheaper than competing ingredients

Opportunities ‐ Strong demand for beer may increase the supply (and reduce price) of mash

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‐ The Vietnamese snack market is under‐exploited and under‐developed ‐ Import substitution of a key ingredient helps snack producers manage currency risk

Threat ‐ The snack sector is highly competitive and dynamic ‐ Demand for cassava from other sectors makes beer production uneconomic

Weakness ‐ Cyanide in the mash may put off consumers ‐ Supply volumes of mash are uncertain ‐ Using cassava in snacks may affect palatability and eating qualities

7.2.2 Conclusions:cassavabasedsnacks

The Vietnamese snack market is among the most dynamic in the food sector. The challenge

will be to find products where using cassava spent waste from beer production achieve

costs savings over alternative ingredients and meets consumer demands for palatability,

flavour and novelty. The snack market in Vietnam dynamic but noticeably different from

other Asian markets, so it is probably not the case that all generic snacks consumed

elsewhere are necessarily transferrable. A range of snacks needs to be developed to test

both these factors: the economics of production and the best fit within the many different

snack sub‐sectors. For these reasons, focus on the extruded snack sector seems advisable,

as this will allow a wide range of different products and flavours to be tested.

Emphasis on the functional benefits of cassava as an ingredient, such as high fibre and ease

of digestibility, are also recommended.

7.3 CassavastemsasamushroomsubstrateVietnam has become a significant producer of mushrooms. Production is estimated to be

250,000mt per annum. The range of products is very diverse. Markets are both domestic

and international given the huge success of Vietnamese cuisine on international markets

where ‘authentic’ ingredients are sought.

Most mushrooms are grown at the individual household level in clusters of households

known as ‘mushroom craft villages’. Typical scale is from 1‐6 tonnes. Over 100,000 houses

are currently producing mushrooms.

Mushroom production sectors are split into three sub‐sectors:

‐ Household scale, 1‐6 Mt production, about 100,000 ‐ Medium scale, 10‐15 Mt production, about 1,000 to 5,000 ‐ Large scale, 100‐500 Mt production, number unknown

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Figure 7: Market share of different mushroom species in Vietnam 2008 (tonnes)

Source: Annual report – Department of Planning

The market is dominated by three species, Earwood, Straw and Oyster.

The key driver of domestic market demand is urbanisation. Exports represent at least 50%

of domestic production with substantial growth predicted in the near future. Strong

demand allied to insufficient production has led to rising prices for Vietnamese mushrooms.

Salted straw mushrooms, for example, have increased from USD1,300/tonne in 2009 to

over USD2,000 today.

The Vietnamese mushroom sector suffers from inefficiency largely caused by the small scale

of production and poor regulation of the industry. A key problem is the seasonal non‐

availability of suitable substrate material. This problem could be addressed by using cassava

stem.

The main substrate ingredients are rice straw in rice producing areas, and sawdust in forest

areas. Sawdust production is declining due to deforestation and is expensive to transport

from forest regions to mushroom growing areas.

Rice husk and sawdust are effectively free if picked up from the waste site. Several different

substrate production scales have been identified including: self‐mixing and small‐scale

production of substrate bags for on‐sale to growers. Bags for Earwood production sell for

VND/300‐500 per 1.5kg bag retail.

40

7.3.1 SWOTanalysishighlights:cassavastemsformushroomsubstrate

Strengths ‐ Massive supply of stems available ‐ Large and expanding domestic mushroom production industry ‐ High cellulose and low starch content of stems ‐ Year round supply

Opportunities ‐ Demand driven by both domestic and export markets

Weaknesses ‐ Costs of collecting sufficient waste centrally not known ‐ Stem crushing costs not known

Threats ‐ Impact of cyanide in stems not known

7.3.2 Conclusions:cassavastemsformushroomsubstrate

The year round availability of cassava stems as a replacement for other mushroom

substrates combined with growing demand suggests that this is a good opportunity.

Research on the economics of collecting, processing and using cassava stems against

traditional substrate ingredients is needed.

7.4 CassavaleavesforanimalfeedUnlike cassava peels and chips that are deficient in crude protein, cassava leaves are rich in

protein but deficient in methionine and tryptophan. Mineral and vitamin contents of leaves

seem high. High cyanide content of the leaf, particularly high yielding varieties, means that

it will have to be processed before inclusion in feed.

Vietnam has a large and rapidly growing livestock population, largely based on smallholder

animal husbandry. Annual per capita consumption is 40kg of meat and this is expected to

reach 57kg by 2020. Pork is 76% of demand, followed by poultry (13%). Recent epidemics

seem to have increased demand for more intensive animal production and this is

stimulating demand for feed ingredients. Government plans huge increases to the domestic

animal stocks, particularly pigs, poultry and dairy production. The government statistics

suggest that the real growth is in poultry production.

Vietnam has seen a huge increase in aquaculture in recent years (6.8% in 2012 to 3.2 million

tonnes). Shrimp and pangasius are the main products.

In 2010 Vietnam used 19.7 million tonnes of animal feed of which 11 million was

manufactured locally and 6 million tonnes imported. This means that 2.7 million tonnes of

feed is mixed on‐farm.

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There are 233 animal feed factories. A high proportion of some specific feed ingredients are

imported. For example soya bean meal and fish meal. There are 74 fish feed factories at

various scales.

Domestic animal and fish feed is said to be 20% more expensive that other countries in the

region because a high proportion of feed is imported suggesting real opportunities for

import substitution.

7.4.1 SWOTanalysishighlights:cassavaleavedforanimalfeed

Strengths ‐ Cassava leaves have a high protein and lysine content ‐ Domestic animal production has considerable room to grow

Opportunities ‐ Economic growth and demographic changes mean that meat product consumption

will grow in the short term Weaknesses

‐ Certain elements of protein are low and would have to be replaced ‐ The product is widely dispersed and would need to be gathered in economic

quantities ‐ Cyanide content has to be managed

Threats ‐ regulation of Vietnams animal industry threatens international market access

7.4.2 Conclusions:cassavaleavesforanimalfeed

Growing demand for animal products in Vietnam plus a shortage of animal feed ingredients

suggest that this is a really good opportunity to utilise waste. The most cost efficient

method of collecting and processing leaves from dispersed production sites needs to be

analysed.

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ReferencesAll references can be found in separate sections of the following Annexed country reports.

Specific references for the summary report are as follows:

Naziri D et al, (2013), “Value chains and levels/causes of post‐harvest losses for cassava and

yam”, deliverable report for the EU FP7 project ‘Gains from Losses in Roots and Tubers’

(GRATITUDE), Grant Agreement 289843, Brussels.

Otto E, Kleih U, Boadu P and Amponsah S, (2013), “Ghana: in‐depth Value Chain Analysis”,

report for the project ‘Yam Improvement for Income and Food Security in West Africa’

(YIIFSWA), International Institute of Tropical Agriculture (IITA), Natural Resources Institute

(NRI) and Crops Research Institute (CRI) for the Bill and Melinda Gates Foundation, Seattle.

Phillips D, Ogbonna M, Etudaiye H, Mignouna D and Siwoku B, (2013), “Nigeria: detailed

Yam Value Chain Analysis” report for the project ‘Yam Improvement for Income and Food

Security in West Africa’, (YIIFSWA), International Institute of Tropical Agriculture (IITA),

Natural Resources Institute (NRI) and Crops Research Institute (CRI) for the Bill and Melinda

Gates Foundation, Seattle.

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Annex1:DetailedCountryReport‐Ghana1. Executivesummary

This report presents findings from a market study of the range of potential cassava and yam waste solutions in Ghana under Gratitude Project Work Package 1 (WP1). The Gratitude project investigates Gains from Losses of Roots and Tubers (Cassava and Yam) with special emphasis on developing useful products from waste (peels, liquid waste and pulps) in Ghana, Nigeria, Thailand and Vietnam. The project is funded by the European Union (EU). The overall objective of Work Package 1 (WP1) is to ensure that technologies developed by Gratitude concerning waste products and ways of reducing losses are commercially viable for key actors in the value chain for cassava and yam products. In particular, the objective of this report is to examine the market potential of alternative market outlets for food products from wastes, as developed in the Working Package 4 (WP4).

This study focuses mainly on the use of cassava (and yam) peels as substrate in mushroom production, potential for use of peels in goat feed and potential for use of peels for starch recovery and sugar syrup in Ghana. A total 3.7 million tonnes of cassava waste peels are generated annually in Ghana. Peels are generated at the processing (for gari, agbelima, kokonte and HQCF) and consumption levels (fresh cassava used in households and chopbars). Currently, insignificant proportion (less than 10%) of peels generated at the processing level are utilised for animal feed. Yam peels constitute about 14% of the volumes of yams consumed in Ghana that is largely at the household and food vendors’ levels. Bulking of the peels at the household is will be extremely difficult. This makes the potential utilization of yam peels very low as compared to cassava that can be bulked in large quantities at the processing sites. Key findings are outlined below:

Peels as substrate in mushroom production

Different types of substrates are available for mushroom cultivation. These include the use of agricultural wastes including cassava (and yam) peels, leaves of plantain/banana, straw from cereals like rice, maize, sorghum, and millet, by‐products from cocoa, oil palm and cotton, seafood and sawdust. Among these agricultural wastes, the use of sawdust for mushroom cultivation is the most common. However, there is decreasing supply of sawdust as a result of deforestation and bush burning as well as high cost of transportation from wood processing sites to mushroom cultivation sites. The potential use of cassava peels as a supplement (and not a complete replacer) of dwindling supply of sawdust in the mushroom media sector is promising.

Currently, the number of commercial mushroom growers who mainly use the plastic bag method in Ghana is estimated at 2500. Majority of the growers are based in the metropolitan areas where there is growing demand for cultivated mushroom and mushroom products. The majority (80%) is produced at the micro scale level with a production capacity of ≤2000 compost bags per growth cycle of a maximum of 3 months. The small‐scale mushroom growers constitute about 18%. Production capacity is estimated between 2000‐5000 compost bags per growth cycle of maximum of 3 months. The medium scale mushroom growers constitute about 2%. Production capacity is estimated between 5000‐15000 compost bags per growth cycle of maximum of 3 months. Current annual

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compost needs by commercial mushroom growers are estimated at approximately 28,000 tonnes. About 50% of the total compost needed could be replaced with cassava peels as substitute for sawdust. Therefore approximately, 18,200 tonnes of wet cassava peels will be required as a substitute for sawdust in compost formulations2.

The SWOT analysis reveals several strengths and opportunities in the mushroom and mushroom media sectors. Strengths and opportunities include increasing availability and accessibility of cassava peels especially at good practices concentration sites, strong technical support for mushroom cultivation, growing populations and demand for organic and convenient foods, gradual shift from overdependence on consumption of wild mushrooms that are seasonal to the consumption of cultivated mushrooms which is available throughout the year in Ghana.

The key limitation to the use of cassava peels for mushroom substrate is the effect of cyanogenic glycosides in some cassava plants on the quality of mushrooms. This calls for further scientific investigations to establish the quality of mushrooms cultivated from cassava peels substrate. Other weaknesses and threats in the mushroom sector include inadequate supply of spawns, lack of expansion of existing production levels which limits economies of scale, poor yields during the dry seasons of the year, limited marketing networks to take advantage of demand opportunities, high perishable nature of mushrooms and lack of storage and processing facilities as well as cultural perceptions associated with cultivated mushrooms.

Peels in goat feed

Goat production in Ghana occurs throughout the country but is concentrated along the coastal and northern savannah zones. In 2010, the total head of locally reared goats in Ghana stood at about 4.9 million and about 3,711 live animals imported from Sahelian countries such as Burkina Faso, Mali and Niger.

The goat feed market in Ghana is segmented largely by location/rurality and intensity or scale of production Three main feeding systems are identified including (i) low‐input traditional extensive system/free range which is commonly practised in the rural areas (ii) Zero grazing of stock combined with supplementary feed usually employed by small‐scale livestock owners in urban areas (iii) Stocking on paddocks with developed pasture practised by very few organized livestock farmers in Ghana.

Rearing of goats in the urban areas present more prospective market for goat feed given the relatively difficult access to feed. The urban areas hold 13% share of potential peels usage and puts potential demand at 1,893‐4,923 tonnes/day. The rural goat farmers may not be willing to purchase feed ingredients given alternative options of free range and free supplementary feeding with by‐products. The goat industry in Ghana is still developing giving the positive growth rates and there will be the need for more feed. It is however recommended that potential feed producers may explore the option of fortification of cassava peels with minerals, vitamins, energy and protein sources.

2Usingaconversionrateof1:1.3fromwettodriedpeels

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Peels for starch recovery and sugar syrups

Ghana largely imports cassava, maize and potato starch from countries like China, Thailand, India, Indonesia, France and Germany. Starch imports in 2010, 2009 and 2008 were 508, 1,475 and 934 tonnes respectively (MOTI, 2012). Starch from maize, cassava and potato constituted about 60%, 23% and 12% respectively. Starch is used in the textile, pharmaceutical, paperboard, food (bakery and confectionary) and adhesives (plywood) industries. There is increasing demand for starch from cassava from the world’s market due to more competitive prices compared with starch from maize and potato. Although there is growing demand for starch locally, industrial production of starch in Ghana is limited by high quality specifications required for most starch uses except for the paperboard and the plywood industries that require less quality starch.

From the existing literature, starch utilised in the paperboard and the plywood industries forms about 37% of the total starch market size in Ghana. Some Ghanaian based SMEs are already exploiting this opportunity. However, the use of cassava (and yam) peels for starch recovery and sugar syrup production would be an entirely new venture and therefore in‐depth research in terms of technical and economic feasibility as well as more market research will have to be conducted. Starch recovery from cassava (and yam) peels may be unattractive to the small scale processors considering the current simplified technologies used, low production capacity and inability to deliver reliable supplies of starch at competitive price.

2. Introduction

Cassava (Manihot esculenta) and Yam (Dioscorea spp) are significant sources of dietary energy in Ghana. Cassava is cultivated in eight out of the ten regions of the country by over 90% of Ghana’s farming population – Upper East and Upper West excluded. It constitutes about 22% of the country’s agricultural GDP. Cassava production has been increasing within the past five years. In 2007, total production of cassava was a little over 10.2 million MT; 11.3 million MT in 2008; 12.2 million MT in 2009; 13.5 million MT in 2010; and 14.2 MT million in 2011. As compared to cassava, overall production of yam in 2011 was estimated at 5,855,138MT with 27,000 MT for export (MoFA‐SRID, 2012). A lot of agricultural wastes are generated from the cassava (and yam) sectors that create a nuisance and are a major source of pollution to the environment. For the purposes of this study, waste is the deliberate disposal of any food substance, raw or cooked, which is discarded, or intended or required to be discarded. Waste generated in the cassava (and yam) sectors include leaves and stems, root peels/skins; (fermented) wet fibrous siftings, waste water and particles, and to a lesser extent flour siftings, and pulp (fibre that remains after starch extraction from tuber). Total quantity of cassava peels generated is estimated at approximately 3.7 million tonnes annually (taking annual average production for 2007‐2011 of 12.3 million tonnes).

Primarily, this study focuses largely on root peels/skins and to a lesser extent pulp from starch. From the current VCA survey findings, waste (peels) generated from the cassava sector amounts to approximately 25‐32% of total production annually (excluding waste generated from leaves and stems as well as fibrous and flour siftings which were found to be used for kokonte). Other studies have established losses/wastes in peels of 27.8%

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(Amoah et al., 2010). Waste generated from the yam sector constitutes about 14% of the volumes of yams consumed in Ghana. Waste has been differentiated from losses.

The overall objective of this deliverable under Work Package 1 (WP1) is to ensure that technologies developed by Gratitude concerning waste products and ways of reducing losses are commercially viable for key actors in the value chain for yam and cassava products. This report therefore presents findings on market study of the range of potential cassava and (yam) waste solutions in Ghana. Key sections covered include (i) Methodology detailing primary and secondary data collection methods employed as well as the people interviewed. This is presented in section 3. (ii) General background information on cassava (and Yam) production, processing, marketing and consumption and waste generated for possible use in mushroom substrate formulations, goat feed, starch recovery and sugar syrup in Ghana. This is presented in section 4. (iii) Section 5 presents potential for use of peels as substrate in mushroom production. This section details description of mushroom and mushroom substrate sectors in Ghana, SWOT analysis for the potential of cassava peels as mushroom substrate as well as GAP analysis of mushroom and mushroom substrate sectors. (iv) Section 6 focuses on the description of goat and goat feed sectors, SWOT analysis for the potential of cassava peels as goat feed and GAP analysis of goat and goat feed sectors. (v) Section 7 covers the description of starch and sugar syrup sectors and of a selection of end‐product sectors, SWOT analysis for the potential of cassava peels for starch and sugar syrup as well as GAP analysis of starch and sugar syrup sectors and of a selection of end‐product sectors. (vi) Conclusions and Recommendations from this market study (which linked to WP4) are presented in section 8.

3. Methodology

Both primary and secondary data collection methods have been used in this market study. Primary data were collected through individual and key informant interviews. First, all relevant actors in the cassava (and Yam) value chain were identified during the VCA survey. Critical stages along the value chain where peels are generated were then identified for further informal interviews with key informants and participant observation in relation to what is done to peels of cassava (and yam) generated. Intensive literature review on the various sectors under consideration for potential use of peels (mushroom, starch and goat feed) was conducted. This was done concurrently alongside interviews with industry players and expert interviews.

A member list of Ghana Association of Mushroom Producers and Exporters was obtained from FRI for a follow‐up phone interviews with individual members. For the mushroom sector study, a total of 20 mushroom growers located in Greater Accra, Brong Ahafo, Eastern and Central Regions of Ghana were interviewed (see list of people interviewed in Appendices). Key informants interviewed include Research scientists with specialization in mushroom, goat feed, experts from the trade and industry as well as Ministry of Food and Agriculture. A snowball sampling was used to identify key players in the goat feed sector for interviews. That is each key informant interviewed could give contact details of others for follow‐up interviews. A total of 10 key informants were interviewed in the goat sector.

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A semi‐structured questionnaire was used as an interview guide. Key areas covered include description of the various sectors, description of the market segments, SWOT analysis for the potential of cassava peels for the various sector components and the GAP analysis of the various sectors of peels utilization.

In addition to data and information gathered from literature, semi‐structured and key informant interviews, empirical assessment of peels of cassava and (yam) produced in different value chains were undertaken. To estimate the overall production of peels of cassava and (yam), concentrated processing sites that generate high amount of peels were selected for peels measurements. Initial weight of cassava and (yam) samples, weight of roots after peeling and weight of peels were taken. Some of the processing sites visited include the Ayensu Starch Company Limited in the Central Region, Caltech Ventures in the Volta Region and Good Practices Concentration sites3 (GPCs) in the Brong Ahafo Region.

4. Background

4.1 Production and Consumption of Cassava (and Yam) in Ghana

Cassava (Manihot esculenta) is cultivated in all the agro‐ecological zones in Ghana due to its tolerance to pests and diseases and resilient to harsh climatic conditions. Total production of cassava was estimated at 14.3, 13.5 and 12.2 million tonnes in 2011, 2010 and 2009 respectively. Cassava is cultivated by over 90% of the farming population in Ghana. It is one of the major food staples in Ghana with per capita consumption of approximately 153kg/annum (MoFA‐SRID 2011). Its high moisture content of about 70% and perishable nature make transportation over long distances very uneconomical. In Ghana, approximately 50% of cassava production is utilised fresh. The rest are processed into various products including gari (25%), agbelima (18%), kokonte (5%) and (1%) industrial purpose (Adjekum, 2006 and Onumah et al., 2008). Yam (Dioscorea spp) is a high value crop and significant source of dietary energy in Ghana. Yam production estimates for 2011, 2010 and 2009 were 5.85, 5.96 and 5.7 million tonnes respectively. In 2011, Ghana exported approximately 27,000 MT of yam (MoFA‐SRID, 2012). Yam production in Ghana is concentrated largely in the Brong Ahafo and the Northern Regions constituting about 37% and 34% of the total yam production in Ghana respectively. Per capita consumption of yam in Ghana is estimated at 42kg/annum. Yam is largely sold fresh in Ghana.

4.2 Wastes of cassava (and yam)

Waste is the deliberate disposal of any food substance, raw or cooked, which is discarded, or intended or required to be discarded. As already indicated, types of wastes considered under the Gratitude project in Ghana include root peels/skins; (fermented) wet fibrous siftings, waste water and particles, and to a lesser extent flour siftings, and pulp (fibre that remains after starch extraction from tubers). Primarily, the study focuses on where these wasted are generated along the value chain and the ability to collect in large quantities from the processing points either at the household level, village level or factory/industrial level.

3GPCs are well organized cassava processing sites established under the Roots and Tuber Improvement and Marketing Programme in Ghana

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Particularly important for the sake of this study (link with WP4) is the assessment of level, causes, current/potential uses and value of peels.

From the VCA survey conducted recently, cassava peels constitute about 25‐32% of the total volume of cassava utilised along the value chain. Total quantity of peels generated is estimated at approximately 3.7 million tonnes annually (taking annual average production for 2007‐2011 of 12.3 million tonnes). Generally, peels are generated at the processing (for gari, agbelima, kokonte and HQCF) and consumption levels (fresh cassava used in households and chopbars). Less than 10% of peels generated at processing level are utilised largely for animal feed and to a lesser extent used as mushroom substrates. From the VCA survey findings, over 90% of the peels generated are either burnt or just left unattended at dumping sites. Extraction of starch from liquid waste was also limited. Studies have shown that cassava pulp contains a high starch content of which about 40% can be recovered either through physical or biological treatment with enzymes (Sriroth et al., 2000). Quality characteristics of starch recovered from pulp are comparable with primary starch obtained from root extraction. However, from the VCA survey findings there was no extraction of starch from pulp practised in Ghana. Waste generated at the only starch industry (Ayensu Starch Company Limited) includes pulp, peel and liquid wastes. Per tonne of cassava fresh roots, the estimated proportions of wastes are pulp (60%), peel (6%) and liquid waste (14%). Pulp is sold at GHC20.004/tonne; peels are thrown away at the dumping site.

In the case of yams, wastes are mostly generated at the consumption (households, chopbars and food vendors) levels since yam processing is very limited, only done by few SMEs. Yam peels constitute about 14% of the volumes of yams consumed in Ghana. Approximately, 5% of volumes of yams traded get rotten. Bulking of yam waste at the household level will involve a lot of work (labour intensive). It may therefore make economic sense to concentrate effort now on the potential use of cassava waste (particularly peels).

Disposal of peels and liquid waste (dewatering) from cassava processing constitute a major threat to the environment. Ubuala (2007) suggests urgent need for the development of new technologies for the consumption of cassava peels. New market opportunities for waste from cassava include the use of liquid waste from cassava processing (dewatering) as weedicides and fertilizers depending on the cyanide concentration as well as the utilisation of peels for pottery products (glasses and cups) and starch production.

From the literature, market potential for the use of waste and peels include the following:

i. improved utilisation of cassava peels for mushroom production ii. potential use of cassava peel for animal feed iii. potential utilisation of peels for value added products for the food industry

(including starch and sugar syrups) iv. potential recovery of starch from pulp v. potential use for snack food ingredients from waste from brewing cassava beer vi. Waste reduction and water treatment/recycling from dewatering

4ExchangerateofUS$1.00:GHC2.00

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5. Potentialforuseofpeelsassubstratesforgrowingmushrooms

5.1 Description of mushroom and mushroom media sectors

Mushroom has high nutritive and medicinal value. It is a rich source of proteins, minerals and vitamins (Garcha et al., 1993). Li and Chang (1982) established that edible mushroom proteins contain the essential amino acids especially lysine and leucine, which were lacking in most staple cereal foods (Hafiz et al., 2003). Hafiz et al., (2003) indicated that mushrooms contain 26.9% protein, 0.3% fat and 4.4% carbohydrate. Mushrooms are healthy food sources for diabetics and over‐weights due to its low caloric content. Gradually, there is a shift from overdependence on consumption of wild mushrooms that are collected wild to the consumption of cultivated mushrooms in Ghana. Some collectors of mushroom resort to encroachment of forest reserves as primary source of wild mushroom (Taylor et al., 1996; Meke et al., 2000).

Unlike the mushrooms that are collected wild from the forest regions during the wet season March‐ September, cultivated mushrooms are available all year round. Aside the issue of seasonality, the availability of wild mushrooms is being threatened as a result of high rate of bush burning, deforestation and over‐exploitation of timber and non‐timber forest products in Ghana (Bosompem, 2009; Obodai and Vowotor, 2002; Sawyer, 2000). The National Mushroom Development Project in Ghana was launched in 1990. The Project aimed at providing alternative sources of income to both the rural and urban poor as well as improving food security in Ghana. According to Obodai and Vowotor, 2002; Obodai (unpublished data), about 11 different species of mushrooms comprising over 50 strains have been received from all over the world, including countries such as Belgium, Cameroon, Malaysia, Mauritius, South Africa, Sri‐Lanka, Switzerland, Thailand and the United States of America since 1990. Some of these cultivable mushrooms species include the oyster mushrooms (Pleurotus spp.), woodear mushrooms (Auricularia spp.), monkey head mushrooms (Hericium spp.), monkey seat mushrooms (Ganoderma spp.) and the giant stropharia (Stropharia rugoso‐annulata).

Among the different species of mushrooms, the oyster mushrooms which have a wide range of temperature adaptability (Bano and Rajarathnam, 1982), and substrate utilization (Poppe, 2000) are the most commonly cultivated in Ghana. The oyster mushrooms have been accepted by the Ghanaian populace for their taste, nutritional and medicinal properties. Sawyerr (2000) explained that technologies developed for the Straw mushroom, Volvariella volvacea, the most preferred, have not been adequately transferred to the rural

communities in Ghana. The launch of the National Mushroom Development Project in 1990 to produce exotic mushrooms such as Pleurotus species brought about small‐scale mushroom farms mostly for the urban unemployed and as supplementary income sources (Sawyerr 2000). With the introduction of the plastic bag method in 1990, edible and medicinal mushrooms can be produced all year round on substrates like sawdust and other agricultural waste (Vijay 2007; Obodai and Vowotor, 2002).

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Substrates for cultivating mushrooms

Types of substrates available for mushroom cultivation using agricultural wastes include cassava (and yam) peels, leaves of plantain/banana and sawdust. Seafood, rice and wheat bran, groundnut testa and cocoa nib dust are also additives that can be used. Other substrate types are straw from cereals like rice, maize, sorghum, and millet as well as by‐products from cocoa, oil palm and cotton (Bonatti et al., 2004; Atikpo et al., 2008; Brimpong et al., 2009). Rasper (2006) investigated the utilization of substrates from 12 major starchy crops grown in Ghana for mushroom cultivation and estimated about 9 million metric tonnes of waste potentially available annually. It was further established that about 25% of the waste generated could be adequately utilised to produce 1.2 million metric tonnes of fresh mushrooms within 2 months (using Biological Efficiency5 of 50%). This could feed population size of about 18 million people with daily consumption levels in excess of 1.1Kg mushroom per head (Sawyerr, 1994). In Ghana, the use of sawdust for mushroom cultivation is the most popular. However, the use of sawdust for mushroom cultivation has several limitations including unavailability due to rapid deforestation, inaccessibility, high cost of transporting sawdust from wood processing sites and longer periods of composting (Owusu‐Boateng, 2001).

There is an urgent need to consider alternative substrate options. One such alternative is the use of agricultural waste like cassava peels. Approximately 3.7 million tonnes of cassava peels are generated annually and about 90% are disposed of, creating a source of nuisance to the environment (VCA Survey findings 2012). According to Kortei (2008), cassava peels can be used as alternative substrate for quality mushrooms (Pleurotus ostreatus) cultivation, alone or in combination with corn substrate. However, a mixture of cassava peels (50%) and corn cobs (50%) supplemented with chicken manure was the most efficient. Again in an interactive discussion with mushroom experts in the Food Research Institute (FRI), it was indicated that cassava (and yam) peels could be used as substrates for cultivating mushrooms if studies on the effect of the cyanide content in cassava on cultivated mushrooms proof successful. In a study done by Obodai et al (2002), it was observed that cassava peels gave low yields of both oyster and oil palm mushrooms using the plastic bag and low bed methods of cultivation respectively. The study however, recommended that cassava peels could be composted before using for the cultivation of mushrooms that also confirms the study done by Kortei (2008). For every 1kg composted substrate/peels, 1.3kg of cassava fresh peels is required. After the production of mushrooms, the spent substrate that is rich in nutrients can be used for the preparation of animal feed (poultry and small ruminants) and bio‐fertilizers for crop cultivation (Chang 1997). Mushrooms thus have the capacity to convert nutritionally valueless substances into high protein foods (Hafiz et al 2003).

Still on the substrate for mushroom cultivation, a study done by Boerjan et al (2003) indicated a significant increase in Biological Efficiency when using shredded straw as the substrate. Shredding increases substrate density that is a major determining factor in mushroom yield.

5Biological Efficiency is the amount of growth determined by a comparison between the dry weights of substrate compared to the fresh weight of the mushrooms harvested. BE indicates the total percentage of growth in terms of mushroom fruit bodies.

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Data on the chemical composition of fresh and dried cassava peels (% of dry matter).

Fresh peel Air‐dried peel

Dry matter 28.5 66.25

Crude protein 5.74 5.43

Ash 7.0 15.5

Ether extract 3.25 3.5

pH 5.70 ‐

Source: Aro, 2008

Methods of mushroom cultivation

From literature four different methods of mushroom cultivation in Ghana have been identified. These include (i) traditional method (ii) the high bed method and (iii) the low bed method for cultivation of the oil palm mushroom. The (iv) plastic bag method is used in the cultivation of the oyster, woodear and the monkey seat mushrooms.

The Traditional Method Traditionally mushroom is cultivated by digging holes under trees and lining them with fresh banana or plantain leaves. The holes are then filled with agricultural waste like cassava, cocoyam or yam peels as substrates. Mushroom spores are then sprinkled on the agricultural waste substrate. Within 3‐4 weeks fresh mushrooms are harvested. However, investigations done by Chang et al. (1993) showed that the yield with the traditional method is very low. The study showed that although the oil‐palm mushroom is considered one of the easiest mushrooms to cultivate, it is difficult to obtain high and consistent yields (Chang et.al ibid). The local farmers mainly practice this method. The High Bed Method Beds are constructed using bundles of banana/plantain leaves arranged in 5‐6 horizontal layers and compacted. These substrates are soaked overnight in water before usage. Spawns are then sprinkled along the periphery of the bundle and covered with thick transparent polyethylene sheets. The beds are aerated after 8‐9 days spawn run and mushroom pinheads appear 3‐5 days later. The high bed method was introduced in Ghana for commercial production of V. volvacea (Apetorgbor et al., 2005). This method is not popular among mushroom growers. The Low Bed Method Few farmers who use the low bed method construct mushroom beds with a trapezoid wooden mould. Cassava peelings and chopped plantain or banana leaves are used. The average yield per bed varies between 1.1‐2.8kg depending on the substrate used, bed size and species. Most growers prefer growing mushrooms on bundles of plantain and banana leaves to other substrates due to easy availability of the plantain/banana leaves (Sawyerr, 2000).

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The Plastic Bag Method Generally, sawdust from Triplochiton scleroxylon or other soft woods is used as the substrate for the plastic bag method. Sawdust compost is packed in heat resistant polypropylene high‐density bags and steam sterilized for 2‐3 hours. The cooled substrate is later inoculated with sorghum grain spawn and incubated in semi‐dark conditions. Exposing the colonised bags to a high relative humidity (85‐95%) in a cropping house or wooden box

induces fruiting (Sawyerr, 2000). Sawdust from Triplochiton scleroxylon (locally known as wawa) supports good mycelia growth and early fruiting. Composting of sawdust derived from soft wood with additives (wheat or rice bran, NPK fertilizer and calcium carbonate) takes 21‐28 days while that from hard woods requires at least 60 days (Obodai, 1992). The Plastic bag method is used for the cultivation of oyster mushrooms that is the most commonly cultivated mushroom in Ghana. This is

the method mostly used by commercial mushroom growers. Some of these commercial mushroom growers produce inoculated compost bags for sale. In Ghana, inoculated compost bags are either sourced from Food Research Institute or some commercial mushroom growers. Sources of spawn

The literature confirms progressive increase in the demand for mushroom spawns6 from the regions. From the mushroom growers interviewed, availability of quality spawns is a major limitation to this emerging industry. Sawyerr (2000) indicated that out of 2500 people trained in introduction and advanced courses in mushroom cultivation only about 200 growers were actively in business compost bags. Production and distribution of mushroom spawns throughout the country under the National Mushroom Development Project could not meet the demand. Currently, Food Research Institute (FRI) continues to be the major source of spawn as confirmed by the growers interviewed. As part of the training package FRI train growers in compost bag production for sale. The Forestry Research Institute of Ghana (FORIG) has also begun the production of spawns of P. sajor‐caju and V. volvacea to meet the increasing demand especially in the Brong Ahafo and Ashanti Regions. Mushroom Growers

Majority of the growers are based in the metropolitan areas where there is growing demand for cultivated mushroom and mushroom products. Some of the growers cultivate mushrooms for subsistence needs, extra income, or as a major commercial enterprise. Currently, the number of mushroom growers in Ghana is estimated at 2500. In Ghana, commercial mushroom growers are mostly concentrated in Greater Accra (close to 50%), Brong Ahafo, Ashanti, Eastern, Volta, Western and the Central Regions of Ghana. Mushroom growers in Ghana can be categorised into micro, small and medium (highly commercial) scale growers.

6Spawnistheseedstockwhichisusedforinoculatingthesubstrateformushroomproduction

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The majority (80%) produce at the micro scale level with production capacity of ≤2000 compost bags (1kg each) per growth cycle of a maximum of 3 months. Using Biological Efficiency of 50%, this translates into 4,000Kg mushrooms per grower annually (1000Kg * 4 cycles a year). The small‐scale mushroom growers constitute about 18%. Production capacity is estimated between 2000‐5000 compost bags per growth cycle of maximum of 3 months. This translates to between 4,000kg – 10,000kg mushrooms per grower annually. The medium scale mushroom growers constitute about 2%. Production capacity is estimated between 5000‐15000 compost bags per growth cycle of maximum of 3 months. This translates to between 10,000kg ‐30,000kg mushrooms per grower annually. Current annual compost needs by commercial mushroom growers are estimated at approximately 28,000 tonnes. Approximately, 18,200 tonnes of wet cassava peels will be required as a substitute for sawdust in compost formulations for commercial users. Some of the growers produce and sell fresh mushrooms only, others sell both fresh mushrooms and compost bags while others sell fresh, dried as well as value added mushroom products. Work done by Apetorgbor et al (2005) showed variable growing season preference among mushroom growers in Ghana. Majority (72%) of growers cultivated throughout the year while 11% preferred cultivating mushrooms in the dry season when mushrooms collected wild are out of season. The rest cultivate upon request by customers. The same study showed that Pleurotus sajor‐caju, V. volvacea and Auricularia auricula are mushrooms cultivated in the Ashanti and Brong Ahafo Regions. However, most growers cultivate Pleurotus species (oyster mushrooms) with only 3% growing V. volvacea. Sawdust was used to cultivate Pleurotus while Volvariella mushrooms were cultivated on plantain/banana leaves and cassava peels. The sawdust was collected free of charge from sawmills and collectors paid only for loading and transportation. Plantain/banana leaves were collected from surrounding farms for a fee by hired labourers. 5.2 Description of market segments

Utilisation of cultivated mushrooms in Ghana

In Ghana, mushrooms for food may be cooked fresh after harvesting, dried after harvesting before utilising for food preparations and milled mushroom used for shito7. A study done by Apetorgbor et al. (2005) showed that at least 50% of Ghanaian households in the Southern zone consume mushroom. The same study showed that approximately 41% consume mushrooms due to the taste, 20% due to availability and 12% for medicinal purposes. Other studies conducted by other researchers showed that Ghanaians in the Western region of Ghana consume mushrooms due to the taste (30%), 70% to supplement meat and fish and 15% for medicinal purposes. Other consumers use mushrooms as delicacies in soups and stews. Mushrooms are used in the hotels, restaurant and other catering services. Some mushroom growers indicated exportation of their products to other neighbouring countries but these are quite informal and not captured in the Ghana Trade Statistics.

7Shitoisspicedchillipepperwithdriedfishormushroompowder

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Potential Utilisation of peels by commercial growers

Commercial growers of mushroom are largely located at the metropolitan cities (urban areas). Some farmers are also cultivating mushrooms from peels but not in commercial quantities. Only one group of cassava processors were involved in commercial mushroom cultivation from peels in the current Cassava and Yam Value Chain Analysis. Commercial growers are more likely to use cassava peels for mushroom cultivation if research on the effect of cyanogenic glycosides in some cassava plants on the growth rate and quality of mushrooms prove successful. Approximately 28,000 tonnes of compost utilised annually by mushroom commercial growers out of which 14,000 tonnes could be possibly substituted with cassava peels (See Table 12 under GAP Analysis). Elements of costing for the commercial cultivation of mushroom are bulleted below:

For commercial production to be profitable growers will have to cultivate2000bags

Inoculatedcompostbagcost60GHp(US$0.3) Averagequantity/yieldis250‐300grofmushroomperbagofcompost Sellingpriceofmushroomestimatedat6.00‐7.00GHC/Kg(US$3‐3.5/kg) LabourcostpercompostbagofUS$0.01‐0.02

Inoculated Compost bag producers Inoculated compost bag producers are located in both rural and urban areas. Currently, they mainly use sawdust as substrates. Inoculated compost bags can store for over 3 months. See costing of bag production in table 10 below:

Table 10: Costing of inoculated compost bag production

Item Description Cost (GHc)

1 Transport cost for 1 tonne 80.00

2 Rice bran for composting and bagging (4 bags @GH¢ 12.0

each)

48.00

3 Lime for composting and bagging (5 sachets @ GH¢ 3.00

each)

15.00

4 Rubber band (3 sachets @ GH¢4.50 each) 13.50

5 Cotton waste (1/4 bale) 30.00

6 Spawns (50 bottles) 100.00

7 Gas (2x52kg) 140.00

8 Polythene bags (1500 bags) 61.95

9 Labour for 1,500 80.00

10 PVC pipe (8pcs GH¢5.00) 40.00

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11 Water (2000gals) 75.00

12 Hiring of premises (plant & equipment/infrastructure)

monthly

80.00

13 Transport and miscellaneous expenses 50.00

14 Total Cost for approximately 1500 bags 813.45

15 Unit cost of producing 1 compost bag 0.54

16 Mark‐up 0.06

17 Unit selling price 0.60

Potential Utilisation of peels by small‐scale cassava farmers and processors

Over 90% of Ghana’s farming population cultivate cassava. However, 50% of cassava production is utilised or sold fresh, processed into gari (25%), agbelima (18%), kokonte (5%) and (1%) industrial purpose. Farmers who are also into processing as well as processors especially those at the GPCs could be potential users of peels for mushroom cultivation as a source of additional income. Already some processors (Northern Women Processors in Wenchi) use cassava peels for mushroom cultivation.

5.3 SWOT Analysis of the mushroom and mushroom media sectors

This study explores the strengths, weakness, opportunities and threats to the emerging mushroom and mushroom media sectors in Ghana. As indicated in table 2, the mushroom and mushroom media sectors have several strengths including demographic trends in growing populations, demand for organic and convenient foods, and availability of agricultural wastes as a replacer of dwindling supply of sawdust, increasing numbers of good practices concentration sites for easy accessibility of peels as well as strong technical support for mushroom cultivation among others. There are limitations to the growth of the mushroom and mushroom media sectors that need to be addressed. These include inadequate supply of spawns, lack of expansion of existing production levels which limits economies of scale, poor yields in some periods of the year, lack of information on the effect of cyanogenic glycosides in some cassava plants on the quality of mushrooms, limited marketing networks to take advantage of demand opportunities, high perishable nature of mushrooms and lack of storage and processing facilities. Other factors that limit growth are lack of knowledgeable and loyal customer base and lack of branding and efficient packaging to assure product quality.

Despite the weakness in the mushroom and mushroom media sectors, there are enormous opportunities. These opportunities include growing demand for value added organic products especially in the food services industry like hotels and restaurants, opportunities for public‐private partnerships in establishing large mushroom farms, decreasing availability of wild mushrooms which encourages cultivation of mushrooms and export opportunities.

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The key threat to the use of cassava peels for mushroom cultivation is the high content of cyanogenic glycosides in some cassava plants. This calls for further scientific investigations to establish the quality of mushrooms cultivated from cassava peels substrate. Other threats to the mushroom industry are cultural perceptions associated with cultivated mushrooms, food quality and safety standards particularly for export markets.

Table 11: SWOT Analysis of the mushroom and mushroom media sectors in Ghana

STRENGTH

Cultivation of mushrooms on a wide range of substrates

Use of mushroom cultivation (bio‐converter in waste recycling techniques) in waste management and pollution control

The use of spent/substrate after mushroom production for animal feed preparation and as bio‐fertilizers for crop production

Increasing production of cassava in Ghana connoting increasing availability of cassava peels

Production of mushrooms close to the raw material source (Cassava peels) by some growers

Increasing processing sites and therefore opportunities exist for bulk volumes of peels at the good processing concentration sites (GPCs)

Growing numbers of mushroom growers

Existence of Mushroom Growers Association in Ghana

Growing availability of cassava peels as opposed to decreasing availability of sawdust as a result of deforestation

Less transportation cost (accessibility as compared to sawdust is easy)

Availability of lower cost methods for mushroom cultivation

Potential medicinal qualities in mushrooms (Ideal for diabetics and over weights due to their low calories and carbohydrates)

Rich protein source. Approximately 27% protein that is comparable to cauliflower (29%) and Green peas (26%)

Existing research expertise in mushrooms for technical support to the industry

Excellent climate for growing mushrooms

Adequate supply of water

Several Mushroom species with diverse flavours, textures and colours

Large urban populations and increased working couplesWEAKNESS

Lack of information on the effect of cyanogenic glycosides in some cassava plants on the quality of

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mushrooms cultivated with cassava peels

Biological Efficiency of using peels alone low as compared to sawdust. A 50% cassava peel substitute seems more promising

Poor yields

Highly perishable and Inadequate storage facilities (post harvest losses)

Lack of access to modern processing technologies (for the small scale firms in particular in the rural areas)

Lack of information, particularly about prices and market opportunities

Limited marketing and distribution networks for mushroom growers

Inability to take advantage of economies of scale production

Lack of branding to assure product quality

Inadequate supply of spawn and raw material

Inadequate working capital

Mushroom cultivation considered as high risk venture

Growing deforestation rate that limits production of saw dust for mushroom cultivation

OPPORTUNITIES

Growing demand for mushrooms both for household consumption and for hotels and other catering services

Increasing demand for organic food products

Growing health consciousness of consumers create opportunities for mushroom industry

Increasing demand for convenient and organic foods

High interest shown by NGOs and Church Organisations to support mushroom cultivation for rural livelihoods. That is potential private/public partnership

Export opportunities

Dwindling availability of wild mushrooms as a result of deforestation, bush burning and over‐exploitation of timber products

Availability of agricultural wastes

Government policies and focus on agri‐business and entrepreneurial development as engines of economic growth

Technological innovations creates opportunities for the mushroom industry by way of doing business through the internet, keeping track on distribution and sales

Availability of some new processing technologies

Tremendous opportunities exist for value additions to fresh mushrooms

Labour availability

High technological standards (quality assurance and

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safety management especially for cassava SMEs firms)

THREATS

High content of cyanogenic glycosides in some cassava plants could pose threat to mushroom cultivation

Pest attack on growing mushrooms

Contamination associated with spawn production

Unfavourable weather conditions (October – April)

Some cultural perceptions about cultivated mushrooms as artificial

Food quality and food safety issues

High cost of labour (About 67% of growers use hired labour on their farms mostly paid on contract basis)

Poor road network especially to farms and raw material sources

High cost of packaging materials

Unwillingness of financial institution to lend to the agriculture sector. About 88% of growers self‐finance (Apetorgbor et al., 2005)

Low public awareness of cultivated mushroom especially in the rural areas

5.4 GAP Analysis of the mushroom and mushroom media sectors

Table 12 below shows the GAP analysis of the mushroom and mushroom media sectors in Ghana. The GAP analysis depicts the market space for the potential utilisation of peels in the mushroom industry, the competing products in this market space and strategies for the development of the unmet and potential market. The GAP analysis addresses the difference between the actual and potential market, focusing on meeting the needs of a particular niche market.

Table 12: GAP Analysis of the mushroom and mushroom media sectors in Ghana

The market space

or GAP that the

product(s) will

enter

For Commercial growers of mushroom located at the metropolitan cities who use the plastic bag method of mushroom cultivation. Approximately 28,000 tonnes of compost utilised annually by mushroom commercial growers. Targeting 50% of compost requirement for cassava peels as supplement/complement with sawdust. Potentially, compost bag production can be done in the rural areas and transported to urban areas for mushroom cultivation –mushroom close to end‐user markets.

Assumptions

We assumed that all commercial growers use sawdust as substrate in plastic bag method. Approximately, 2000 mushroom growers utilising 2000 compost bags per growth cycle of maximum of 3 months; 450 growers utilising 5000 compost bags per growth cycle of maximum of 3 months and about 50 growers

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utilising 15000 compost bags per growth cycle of maximum of 3 months. Assuming 4 production cycles per annum. Approximately, 9,100 ‐ 18,200 tonnes of wet cassava peels will be required as a substitute for sawdust in compost formulations for commercial users.

For farmers and processers in cassava production areas, cassava peels for the production of mushrooms using the low‐bed and high‐bed methods could be targeted as well. Approximately, total quantity of cassava peels generated is estimated at 3.7 million tonnes annually (taking annual average production for 2007‐2011 of 12.3 million tonnes).

Competing

products in this

market space

For the mushroom media sector, sawdust is the key competing raw material particularly for the plastic bag method commonly used for commercial production of mushrooms. Other competing agricultural waste materials include straw form cereals like rice, maize, sorghum, and millet, seafood and by‐products from cocoa, oil palm and cotton.

For growers using the low‐bed and high‐bed method of mushroom cultivation, plantain and banana leaves are the main competing raw materials.

The agricultural wastes are collected free of charge but have to be transported at a cost depending on the distances involved or hired labour for collection.

Product

movement into

this market space

Need research results that confirm the potential safe use of cassava

peels as substitute in compost: quality in terms of the cyanide content

in cassava peels have to be thoroughly investigated. The economic

feasibility should be studied in depth. Then successful results can be

shared with members of the Mushroom Growers and Exporters

Association of Ghana. Encourage peelers at GPCs to use cassava peels

for mushroom cultivation.

Public Awareness through training workshops, site demonstrations on

farmers’ fields and processing sites especially at GPCs. Promotional

activities including TV documentary on mushroom cultivation

educational campaigns on the Radio Stations on mushroom utilisation

6. Potentialforuseofpeelsingoatfeed

6.1 Description of goat and goat feed sector

Goat is one of the predominant small ruminants kept in Ghana for nutritional, economic and social reasons (Bosman et al., 1997; Moll et al., 2007; Kosgey et al., 2008). The Ghanaian goat is of the indigenous West African Dwarf (WAD) breed weighing 20‐25kg for the male

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and 18‐22kg for the female. Its small size makes it suitable for butchering in small communities where there are no cold‐storage facilities. The breed is very prolific, precocious and trypanotolerant. According to a publication by the German NGO, Forum on Environment and Development (2001), local breeds are an important reservoir of biodiversity, as they are both hardy and disease resistant.

Although the WAD breed is found throughout Ghana, there are considerable numbers of the much larger and long‐legged exotic Sahelian type, in addition to crosses between the WAD and the Sahelian goats in the North of the Country and in peri‐urban enclaves (Oppong‐Anane, 2001). However, it is noteworthy that though the specific attributes of prolificacy and short kidding interval of the WAD Goat result in a high turnover, some important parameters such as birth weight, litter size and pre‐weaning mortality affect the profitability of goat enterprise in Ghana (Oppong and Yebuah, 1981; Tuah et al., 1990).

Goat production in Ghana occurs throughout the country but is concentrated along the coastal and northern savannah zones. In 2010, the total head of goats in Ghana stood at about 4.9 million growing minimally at a rate of 0.05% (FAO, 2012). In the same year, about 3,711 live animals were imported from Sahelian countries such as Burkina Faso, Mali and Niger. Meat and skin are the two main products derived from goat production in Ghana. Estimates of meat and skin production in 2010 stood at 14,2735 tonnes and 2,703 tonnes, respectively, each with an annual almost stable growth rate of 0.03% (FAO, 2012). Goat meat (chevon) has become an important source of protein and a delicacy nationwide, mostly utilized in public restaurants (popularly known as “chop bars”). FAO statistics (2012) show that between 2003‐2009 mutton and chevon supplied 0.5 g/capita of daily protein consumption in Ghana. Available data from the Veterinary Services Directorate of Ministry of Food and Agriculture (VSD‐MoFA, 2011) indicated goats as the second most slaughtered animals after cattle for food between 2007‐2010 with majority slaughtering occurring in the Ashanti, Western and Upper East Regions.

The goat industry is dominated by smallholders who usually rear them under semi‐intensive conditions. According to Oppong‐Anane (2011), urban and peri‐urban dwellers raise approximately 25% of the 13.3 million small ruminants in Ghana. In the hinterlands where most goats are reared, animals and their young ones are either sent out in the mornings to graze or are penned and fed or tethered in vegetation near the homesteads particularly during the cropping season (Agyei et al., 2004). Backyard rearing is most popular in the (peri) urban areas, where animal feeding is problematic because of by‐laws preventing the roaming of animals (Baiden and Obese, 2010), and the cost of commercial feed mixes is prohibitive. In this system, simple pens are usually provided for goats within or attached to the owner’s house. The pens are constructed from locally available materials such as timber off cuts, bamboo, tree branches and mud, and roofed with leaves, split bamboo or metal sheets. Children often undertake daily management, such as provision of water, feed and bedding as well as cleaning of pens (Oppong‐Anane, 2001). Breeding is normally not controlled and the animals are therefore open to conception as soon as puberty is attained (Oppong‐Anane, 2001; Poku, 2009). Although most farmers have access to veterinary services, curative “self‐medication” is commonly practiced at times using various herbal concoctions. The backyard system supplies fattened animals for the expanding urban market, particularly during religious festivities. This enterprise is indicatively beneficial,

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contributing to household food security (Duku et al., 2012). In some areas in northern Ghana, Poku (2009) reports of goat and sheep enterprises possessing the greatest prospects for profit maximization among all ruminant enterprises.

Feeding has long been the most potent tool by which man manipulates productivity in domestic animals, and goats are no exception. It is estimated that about 1.5 million households in Ghana own livestock and 812,000 of these households raise goats (GSS, 2002). In spite of the urgent need for these livestock holders to increase their productivity, serious challenges regarding animal feeding pervades (Tuah et al., 1994).

Three main forms of animal feeding can be distinguished in Ghana:

In the villages or rural areas, animals are released in the morning from backyard sheds for grazing on their own, with or without feed supplementation in the form of crop by‐products or household waste. This system is characterized by a low‐input traditional extensive system where animals are allowed to scavenge for food with no proper feeding and management practices in place. With increasing population pressure on land resulting in cultivations near villages, goat keepers are force to graze their animals around settlements and may complement it with little supplementary feed in both the wet and dry seasons. In the dry season the quality of the sparsely scattered and scarce forages is also poor, causing serious feed shortages especially in the northern zones of the Country. Rural farmers are not able to purchase completely mixed diets or feed ingredients.

Zero grazing of stock combined with supplementary feed. The system is based on cut‐and‐carry of forages, and the use of household wastes, mainly cassava and plantain peels, crop residues and crop by‐products. This mode of feeding is usually employed by small‐scale livestock owners in urban areas, utilizing cut grasses and household offal (e.g. cassava peels) to feed goat in confinement (Oppong‐Anane, 2001).

Stocking on paddocks with developed pasture. This mode of feeding is practiced by very few organized livestock farmers.

Unlike the rural farmers, small‐scale urban farmers may be able to afford agro‐industrial by‐products such as wheat bran, brewers’ grains, silage, cut forage, brewers’ spent malt, cottonseed cake and oil seed cakes in feeds for goats. Other supplementary feed products include maize straw, rice straw, cocoa pod husk and ensiled poultry manure. However, the commonest crop by‐product fed to animals by farmers in Ghana is cassava peel, although peels of plantain, yam and cocoyam may also be used.

6.2 Description of market segments/The Five P’s of Goat Feed(s) in Use

The goat feed sector is still largely traditional and not known for the teeming conventional feed formulations. At the moment only one Company (Agricare Ghana Ltd) is known for commercial production of goat feed from maize, soya meal, wheat bran, vitamin premix and mycotoxins binder, which is compounded and pelletized. However, market demand for commercial goat feed is waning, and this has been the bane in goat feed manufacturing in Ghana.

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The predominant feed types (Table 13) in use validated through stakeholder dialogues (see appendix 3) are largely the natural graze lands, crop residues and by‐products (agro‐industrial and households). The rural areas in Ghana that hold about 87% of the country’s goat population utilize mostly the natural herbage, crop residues and by‐products from household food processing. Urban goat feeds and/or feed ingredients include the agro‐industrial and household by‐products, cut grass and conventional feed formulations (minimally used).

Table 13: Goat feed types in Ghana

Product Price Place Promotion People

Wheat bran GH¢ 0.40 per kg Retailers on the open market e.g. Tulaku in Tema

No promotional drive since there is ready market

Intensive goat producers in mostly urban communities

Cassava peel GH¢ 0.50‐0.80 per kg

Food preparation joints and restaurants in towns and cities; cassava processing sites e.g., Agbozome

No promotional drives.

Goat producers in urban and peri ‐urban areas as well as researchers

Yam peel GH¢ 0.05‐0.20 per kg

Food preparation joints and restaurants in towns and cities; e.g., Wenchi, Kintampo, Ejura and Tamale.

No promotional drives

Household goat keepers and researchers

Soy cake

GH¢ 1.20‐1.60 per kg

Northern areas in Ghana and importation from Burkina Faso



Fresh grass GH¢ 0.20‐0.40 per kg

Bushes in and around towns


Goat producers in Urban and peri‐urban localities

Agri‐feed GH¢ 1.04 per kg Distribution outlets across the country

Advertisement on radio


Crop residues Accessed free Farmers’ fields No promotional drives

Mostly rural and peri urban

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producers of goat.

Natural herbage

Accessed free Graze or pasture lands


Mostly rural farmers

Source: GRATITUDE

6.3 SWOT Analysis for the use of Cassava Peels as Goat Feed

Cassava peel has high rumen degradability and is commonly used in livestock feeds. In Ghana, the growing popularization of (semi) intensive feeding systems in the (peri) urban areas may presents opportunities for increased use of cassava peels in goat feed. Table 14 presents the SWOT analysis for the potential use of cassava peels as goat feed.

Table 14: SWOT Analysis for the Potential of Cassava Peels as Goat Feed

STRENGTH

The cassava peel is high in the soluble carbohydrates (62%) and low in fibre (16%) with a moderate level of nitrogen (1%), and reflects a high potential as energy feed source for goats

Studies have shown that cassava peel has high rumen degradability making it a useful energy ingredient in goat diets. In a study comparing the rumen degradability of several crop residues in cattle, sheep and goats, Smith et al. (1988) reported high dry matter losses for cassava peel in the three ruminant species, with a mean value of 83% in 48 hours. These high rumen degradability values suggest that cassava peel could serve as a useful energy feed in ruminant diets.

Cassava peel meal can serve either as the main basal diet or as a supplement.

Cassava is one of the most drought tolerant crops and can be successfully grown on marginal soils, giving reasonable yields where many other crops cannot do well.

WEAKNESS

Cassava contains the cyanogenic glycosides, linamarin and lotaustralin that are hydrolysed after tissue damage by the endogenous enzyme, linamarase to the corresponding cyanohydrins and further to hydrogen cyanide (harmful).

Cassava peel, which is removed on peeling, is known to contain higher levels of cyanogenetic glycosides than the root flesh.

Utilization of cassava peels in monogastric feed is limited due to its fibrous nature, low protein content and high levels of hydrocyanic acid

There is minimal/no market control and no defined or structured market for the goat feed industry

There is not a favourable policy environment for the development of the goat feed sector

The relatively abundant trees and shrubs in our rangelands

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provide cheaper and fresh feed options for goat producers.

OPPORTUNITIES

Giving the positive growth rates, the goat industry will need more feed in the future.

Processing of peels to prevent goitrogenic and other neuropathological effects in goats is possible

Processing of cassava peels by drying or ensiling is known to reduce the content of glycosides in the product to tolerable levels (Charavanapavan, 1944; Akinrele, 1964).

Generally, supplementation of cassava diets with high levels of sulphur amino acids, particularly cystine and methionine, and iodine, largely eliminates the goitrogenic activity due to thiocyanate production.

Cassava peel is low in protein and high in ash percentage and may be used with high‐protein feedstuffs e.g. brewers’ grain and urea (Lyayi and Losel, 2004; Ubalua, 2007).

There is opportunity for the feed industry since goat is high yielding and can be sold at any time regardless of the season and festivities.

The seasonality in natural forage affects year round availability of fresh goat feed.

Lack of technology to process and preserve feed during these changing seasons

THREATS

The hydrogen cyanide is responsible for chronic toxicity when goats consume inadequately processed cassava products for prolonged periods.

Not much is known about the ability of the ruminant to digest cyanogenetic glycosides without deleterious effects.

There is too much reliance on the natural resource for feeding the goats in Ghana and the animals are surviving pretty well with a little supplementation. This makes the farmer reluctant to buy goat feed.

Due to the nature of the goat production system in Ghana that is basically small‐scale, the commercial intention is not well engendered.

6.4 GAP Analysis of the Goat Feed Sector

The goat feed market in Ghana as indicated earlier is segmented largely by location/rurality and intensity or scale of production. The undeveloped ‘markets’ where goat producers’ access relatively available feed supplied by the natural environment exists in the rural areas. However, even within these enclaves the increasing population pressure and limiting access to grazing lands is constricting access to pasture. Within the (peri) urban zones, the feed market is still not enhanced as the cost of conventionally formulated feed partly disables the demand for such feeds and producers typically resort to agro‐industrial by‐products and household wastes (e.g. peels, wheat bran, etc.) as well as sold cut grass, feeding either solely or mixed. The only known monopolistic producer of improved goat feed Agricare

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Ghana Limited with intensive producers as the target confesses of request‐based but dwindling demand that consequently restricts its options of production expansion.

Stakeholders in the goat and goat feed sector believe that the general ease of access to unimproved and cheaper sources of goat feed to a large extent has not imparted the much‐needed vitalization in the sector. In other words, the availability of easy and cheaper feed options generally does not inure to the development of improved feed options. Coupled with it is the seeming lack of a favourable policy environment that provides incentives for feed development and restricts indiscriminate grazing of livestock. A policy of confinement will bring a necessity for farmers to get feed bought for goat other than a cost‐saving feeding strategy of free range browsing.

The potential of peel usage for goat feed in the context of this study will be restricted to cassava peels, as yam peels are reportedly unappealing to goats; and rarely used in or for feed; and data is almost non‐existent. Table 6 couples statistics from FAO (2012) and GSS8 (2008) to generate summaries of scenarios on the extent of cassava peels utilizable in the goat sector. Of the estimated 4.9 million goats, 13% are in the urban areas with just 1% in the Greater Accra Metropolitan Area (GAMA). The rest are distributed over the various rural enclaves. Data obtained from stakeholder interviews indicated a commonly practiced daily per capita consumption of dry and wet cassava peels to be approximately 6kg and 7.8kg, respectively when peels are used exclusively for feed. On the other hand, when peels are mixed with other ingredients such as wheat bran, soy cake and maize, consumption quantities respectively reduce to 3kg and 3.9kg. Based on these statistics, the quantity of peels utilizable in Ghana is estimated to be in the range of 14,565‐37,869 tonnes/day. The urban areas hold 13% share of potential peels usage and puts potential demand at 1,893‐4,923 tonnes/day. Urban Ghana may present the more prospective market for goat feed given the relatively difficult access to feed and the requisite policy instruments.

Market entry is very feasible only that, potential feed suppliers must brace up for the supply‐driven nature of the venture.

Table 15: Goat stocks and potential for cassava peels as feed

Locality Proportion of goat in locality

No. of goats

Consumption of Cassava Peels (tons/day) Dry Peels Wet Peels

Sole feed (6kg/

capita/ day)

Mixed feed (3kg/

capita/ day)

Sole feed (7.8kg/ capita/

day)

Mixed feed

(3.9kg/ capita/

day) National 1 4,855,000 29,130 14,565 37,869 18,935

Rural

Coastal 0.06 291,300 1,748 874 2,272 1,136 Forest 0.21 1,019,550 6,117 3,059 7,952 3,976 Savannah 0.6 2,913,000 17,478 8,739 22,721 11,361 Sub-total 0.87 4,223,850 25,343 12,672 32,946 16,473

8GhanaStatisticalService’sLivingStandardsSurveyroundfive

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Urban

Greater Accra Metropolis 0.01 48,550 291 146 379 189

Other 0.12 582,600 3,496 1,748 4,544 2,272 Sub-total 0.13 631,150 3,787 1,893 4,923 2,461

Source: Based on FAO (2012) and (GSS, 2008) data

7. Potentialfortheuseofpeelsforstarchrecoveryandsugarsyrup

7.1 Description of starch and sugar syrup sectors

Ghana largely imports cassava, maize and potato starch from Asia, UK and USA. Starch is used in the textile, pharmaceutical, paperboard, food (bakery and confectionary) and adhesives (Plywood) industries. Cassava starch imported in 2010, 2009 and 2008 was estimated at 350, 353 and 224 tonnes respectively (FAOSTAT, 2012). Although there is growing demand for starch locally, industrial production of starch in Ghana is limited by high quality specifications required for most starch uses except for the paperboard and the plywood industries.

Currently there is only one starch factory (Ayensu Starch Company) located in Bawjiase in the Central Region of Ghana established in 2003 under the President’s Special Initiative on cassava. The factory was closed down in 2006 and is now in the process of re‐starting operations. Currently, the company is processing 5 tonnes of cassava weekly as against full capacity of 300 tonnes of cassava a day. Raw material (cassava) is sourced from out‐growers and the companies own farm. About 10,000 out‐growers are supposed to sell to the company when it resumes operations fully. The Company exports about 50% of starch produced to Denmark. The rest is sold through the local market outlets including Nestle, Neat fufu and mosquito coil companies. Currently, Ayensu Starch Company Limited is selling modified starch at $420/tonne. Interactions with end‐users during the VCA indicated that Ayensu Starch Company Limited does not produce consistently, supply of raw material is unreliable and sometimes there is difficulty with quality. End‐users eventually rely largely on starch imports. The Ayensu Starch Company Limited faces a lot of challenges including high cost of production (high cost of labour and electricity) and lack of uses for waste generated. Cassava production figures show consistent increase as well as the surplus cassava (MOFA/SRID 2011). However, Ayensu Starch Company is unable to mop up the entire cassava surplus due to operational challenges.

In addition to Ayensu Starch Company Limited, there are some local cassava processors and individuals who produce starch largely as by‐products from liquid waste generated during cassava processing, especially into gari. These local cassava processors produce about 2 to 3 (50kg bags) per week, which is approximately 4,800‐7,200kg annually. Usually starch is sold in ‘olonka’ (with about 10 ‘olonkas’ in the 50kg bag) at the local markets. The processors sell to market women on credit at ¢4.00 per ‘olonka’. Processors find the selling price of starch unattractive considering the drudgery involved in production coupled with bad credit terms or non‐payment for starch sold on credit. There is no regular market for starch produced at this level due to lack of information on potential buyers.

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In addition to producing import substitute starch from cassava roots, starch can be recovered from peels and pulps. From the literature, it is estimated that approximately 11 to 16% of viable (i.e. usable) cassava root is wasted because of inefficient peeling which could be used for starch recovery and sugar syrup. The current VCA survey established wastes and losses in excess of 25‐32% (in the form peels) as compared to less than 20% for efficient peeling system.

Wastes generated at Ayensu Starch Company Limited include pulp (60%), peel (6%) and water (14%). Pulp is sold at GHC20/tonne; peels are thrown away at the dumping site. Some studies have also shown that cassava pulp contains a high starch content of which about 40% can be recovered either through physical or biological treatment with enzymes (Sriroth et al., 2000). Quality characteristics of starch recovered from pulp are comparable with primary starch obtained from root extraction.

Studies have shown that there may be scope for the small‐scale producers to produce cassava starch (or flour) for conversion into maltose and malto‐dextrins for use as sweeteners by Ghana’s expanding food industry (Graffham et al., 1998). Malto‐dextrin production has the advantage of producing a higher value product with relatively unsophisticated technology and it eliminates the need for drying which is always a key constraint for small‐scale producers of cassava starch. In 2010, 2009 and 2008, Ghana imported 18,091, 15,955 and 23,720 tonnes of sugar confectionery valued at $11,570,000, $8,264,000 and $12,140,000 respectively (selling price of $640/tonne, $518/tonne and $512/tonne). 7.2 Description of market segments for starch and sugar syrup

Estimated market share for the various uses of starch include textiles (40%), plywood (27%), pharmaceuticals (20%), paper (10%) and food (3%) as indicated by Graffham et al., (1998) Again it was also established that most users have very high quality specifications with 60% of the market being for modified starches. The paper and plywood industries that together constitute about 37% of the total market size of the starch market require low quality specifications in terms of fibre and particulate contaminants contents. This differs from the food and pharmaceutical industries that require high quality specifications with regards to purity and microbiological quality. The market for the paper and plywood industries could be targeted but this will require intensive capital ingestion in terms of equipment, technology and increased production levels to take advantage of economies of scale.

There are also small‐scale starch producers operating in the local markets. These small‐scale less sophisticated producers have little chance of competing against imported starches on the basis of product specification and scale of production.

With regards to the use of peels for starch recovery and sugar syrup, there is no effort currently being done in Ghana. Although there is growing demand for starch and sugar syrup, the high quality requirements, high labour cost and capacity demands for economies scale limit the potential for the use of peels for starch recovery and sugar syrup. However, pilot trails can be conducted at the GPCs for both technical and economic feasibilities in order to make sound investment decisions. As reported by Graffham et al (2000), development of the cassava starch industry in Ghana has very limited potential given the current overview although there is surplus cassava to supply additional markets. As stated

68

earlier, Ayensu Starch Company is unable to mop up the entire cassava surplus due to operational challenges. The food balance sheet (2010/2011) established cassava surplus of approximately 5.7 million metric tonnes in Ghana (MOFA/SRID 2011), with mean annual cassava production growth rate of 7.7%.

Ayernor et al., (2002) and Hammond (2002) demonstrated that starch from cassava could be used for the production of syrups and alcohol by fermentation industries. Under the New Market for Cassava Project, a controlled process was developed for conversion of HQCF into sugar syrups using enzymes from plant seedlings with a range of dextrose equivalents. Three processing industries were linked to 5000 farmers for the production of sugar syrup for 6 food industries in Ghana. For example, Afrimart Global Enterprise and the Kokofu group received technical support for the production of cassava‐based glucose syrup as well as market linkage initiated for supplies to Golden Biscuits – a biscuit manufacturing company (Q News, 2004). Current VCA survey findings show that the market for sugar syrups is still under‐developed.

7.3 SWOT Analysis of the Use of peels for starch recovery and sugar syrup

Generally starch production in Ghana is constrained by inconsistent product quality, unreliable supply to potential supply due to seasonality in cassava supply and prices as well as huge initial investment for starch production. The non‐existence of a reliable supply of raw cassava roots (of desirable varieties) at a competitive price has been identified as a major constraint to industrial cassava processing operation. For example in the case of the Ayensu Starch Company Limited, prices for fresh cassava at the open markets were more attractive than what Ayensu Starch Company Limited could afford to pay. Others are lack of government policy supporting import substitution of starch, inability to meet demand, high delivery charges, poor infrastructure and high transportation costs (Graffham et al., 2000; Hammond, 2002). Table 16 presents the SWOT analysis for the potential use of cassava peels (and pulp) for starch recovery and sugar syrup

Table 16: SWOT analysis for the potential use of cassava peels for starch recovery and sugar syrup

Strength

Increasing availability of cassava peels

Increasing processing sites and therefore opportunities exist for bulk volumes of peels at the good processing concentration sites (GPCs)

Availability of technical support

Demand for starch locally and for exports

Savings in foreign exchange from import substitution

Weakness

Unattractive prices to local processors

Low production capacity/lack of economies of scale and relatively small market size

Rudimentary methods of production used by local processors

Lack of capital by local producers

Inadequate starch processing factories in the country

Inability to meet high quality demands of starch and sugar syrups for food and pharmaceutical industries

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Lack of awareness and promotion on potential use of peels for starch recovery and sugar syrups

Labour intensive requires large amounts of water

Opportunities

Low quality specifications for starch use in plywood and paper industries

Domestic demand for starch (and also for exports)

Increasing demand for starch from cassava from the world’s market due to more competitive prices compared with starch from other crops like maize and potato

No strict regulation on local production of starch

Increasing buying prices for starch

Threat

High investments requirement for industrial production of starch in Ghana associated with high risk

Stiff competition from international markets

High quality competing products (imported starch and sugar syrups)

Potential users looking for quality but low prices and reliable supply sources

8. Conclusionsandrecommendations

8.1 Conclusions and Recommendations for peels in mushroom substrates

Current annual compost needs by commercial mushroom growers are estimated at approximately 28,000 tonnes. About 50% of the total compost needed could be replaced with cassava peels as substitute for sawdust. This is what is currently being experimented; other combination could be explored later. This will require approximately, 18,200 tonnes of wet cassava peels. Potential therefore exist for the use of cassava peels as substitutes for the commercial production of mushrooms in Ghana. The ability to take advantage of this market potential will however depend on satisfactory results from experimental trails on quality issues in relation to effect of cyanogenic glycosides in some cassava plants on the growth rate and quality of mushrooms. There is also the need to conduct in‐depth studies on market development strategies for the sale of substrates with cassava peels; need more in‐depth studies on where commercial mushroom growers can source peels, bulking and transportation among others since majority of the commercial growers are located in the metropolitan cities. Cultivation of mushrooms using cassava peels could create additional income opportunities for cassava farmers and processing in the production centres. As also reported by Graffham et al., (2000), training of cassava farmers and processors in cultivation of mushrooms using cassava peels as potential sources of additional incomes for rural livelihoods is recommended. Already some processors (Northern Women Processors in Wenchi) use cassava peels for mushroom cultivation. Promotional strategies through training workshops and educational campaigns on the use of cassava peels in mushroom media/substrates are highly recommended.

8.2 Conclusions and Recommendations for peels in goats feed

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Goat production in Ghana occurs throughout the country but is concentrated along the coastal and northern savannah zones. In 2010, the total head of locally reared goats in Ghana stood at about 4.9 million and about 3,711 live animals imported from Sahelian countries such as Burkina Faso, Mali and Niger. About 13% of the goat population is located in the urban areas (FAO, 2012).

Three main feeding systems are identified including (i) low‐input traditional extensive system where animals are allowed to scavenge for food with no proper feeding and management practices which is commonly practised in rural areas (ii) Zero grazing of stock combined with supplementary feed usually employed by small‐scale livestock owners in urban areas (iii) Stocking on paddocks with developed pasture usually practiced by very few organized livestock farmers. The commonest crop by‐product fed to animals by livestock farmers in Ghana is cassava peel, although peels of plantain, yam and cocoyam may also be used. Other supplementary feed products include maize straw, rice straw, cocoa pod husk and ensiled poultry manure.

Although there is increasing population pressure on land for grazing and also there is serious feed shortages especially in the northern parts of Ghana during the dry season rural livestock farmers may not be able to purchase feed ingredients. Rearing of goats in the urban areas present more prospective market for goat feed given the relatively difficult access to feed. The quantity of peels utilizable in Ghana is estimated to be in the range of 14,565‐37,869 tonnes/day. The urban areas hold 13% share of potential peels usage and puts potential demand at 1,893‐4,923 tonnes/day.

It is recommended that potential feed producers may explore the option of fortification of cassava peels with minerals, vitamins, energy and protein sources. Investigations into the ability of the ruminant to digest cyanogenetic glycosides without deleterious effects will be beneficial for promotional strategies. A policy of confinement will bring a necessity for farmers to get feed bought for goat other than a cost‐saving feeding strategy of free range browsing.

8.3 Conclusions and Recommendations for peels in starch recovery and sugar syrup

Generally, quality assurance remains key in the realisation of import substitute’s opportunities in the starch industry that pose serious threats to the use of cassava (and yam) peels for starch recovery and sugar syrup production as also reported in the literature. Currently, Ayensu Starch Company Limited is selling modified starch at $420/tonne. Drawing from experiences by the Ayensu Starch Company Limited, there are limitations with reliability of supply and consistency in product quality. However, the supply of starch to the paperboard and plywood adhesives that constitute about 37% of the total starch market size seems promising. These industries have low quality specifications in terms of fibre and particulate contaminants. Caltech Ventures that is already processing cassava flour for the plywood industry and sells at GHC30/50kg bag (using mechanical peeling).

From the VCA survey, none of the women processors were into starch recovery from peels and therefore this is going to be an entirely new activity to them. Starch recovery from cassava (and yam) peels may be unattractive to the small‐scale processors. These small‐scale processors may not have the capacity to deliver reliable supplies of starch at competitive prices.

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APPENDICES

1. Acronyms

BE Biological Efficiency

CF Cassava Flour

EU European Union

FRI Food Research Institute

FORIG Forestry Research Institute of Ghana

GPCs Good Practices Concentration sites

HQCF High Quality Cassava Flour

SMEs Small and Medium Scale Enterprises

SWOT Strengths, Weakness, Opportunities & Threats

MoFA Ministry of Food and Agriculture

MOTI Ministry of Trade and Industry

MT Metric Tonne

NGOs Non‐Governmental Organisations

VCA Value Chain Analysis

VSD Veterinary Services Directorate

WP Work Package

WAD West African Dwarf

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3. Checklist

WhatisthenatureofthegoatfeedindustryinGhana? Whatfeedtypesexistinthegoatsector? Whatisthenatureofdemandandsupply(marketchains)forgoatfeedandwhat

marketsegmentsandsub‐segments(niches)exist? Whatistheextentofuseofpeels(cassava,yam,etc.)asfeedinthegoatsector? Howarethesefeedtypesaccessed/produced? WhatarethetypesofgoatfeedinGhana?–whethernaturalforageorprocessed Whatingredientsconstitutethoseidentifiedfeedtypes? Whatthepricesperunit(e.g.kg,ton,litre,etc.)ofeachoftheproducttypes? Whatfactorsinfluencethepricingandpricelevelsoftheseproducts? Wheregoatfeed(whethernaturalfodder)/produced(processedfeed)producedin

Ghana? AretherespecificentitiesinvolvedingoatfeedproductioninGhana?Y/N IfY,wherearetheylocatedinGhana?[CanIhaveanycontactandTel.no.ofyour

contact?] WhichareasandcommercialgoatproductioncentresexistinGhanaORwherecanI

findgoatfeedonsaleinGhana?[CanIhaveanycontactandTel.no.ofyourcontact?] HowaregoatfeedssoldinGhana?(Whatformandbranding,ifany?) Howdoproducersorsellersofgoatfeedmarkettheirproduct(s)(Anypromotional

strategiesusedinthemarket?)? Whichtypeoffeedisutilizedandbywhichgoatproductionentity?(e.g.processed

feedusedmostlybyurbancommercialgoatproducers) Inyourviewwhatwillyouconsiderasstrengthofthisgoatfeedindustry(whatthey

dowell)? Inyourviewwhatwillyouconsiderasweaknessofthegoatfeedindustry(what

theydopoorly)? Inyourviewwhatwillyouconsiderasopportunityforthegoatfeedindustry(what

couldbedonebetter)? Inyourviewwhatwillyouconsiderasthreattothegoatfeedindustry(whatcould

stoptheindustriesprogress)? Isthereanexcessdemand/supplyforgoatfeedinGhana? Inyourconservativeestimation,whatquantity(kg,ton,%,etc.)canyouputtothis

excessdemand/supply? Where(geolocation)dothemostdemandexistinGhana? Whatispeculiarabouttheseniche/segmenteddemandcentres? Whatarethealternativefeedproductsonthemarket(local/imported;brand;feed

constituents,etc.)

[Which other stakeholder may you suggest I speak with on these matters? Name & Tel. No.]

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4. List of people met (with contact details)

Name Responsibility Contact and Location

Capacity Type of Substrate

Source of Spawn Where Mushroom is sold

Challenges Other Remarks

President of Mushroom Growers and Exporters Association of Ghana

1200/cycle Sawdust F.R.I, Trainers

Supplies to supermarkets, hotels, and restaurants all across the country

Quality inputs such as sawdust, Contamination of spawns from FRI, Unfavourable weather conditions, one variety of mushroom

There is the need to introduce different varieties

Vice President 2000 ‐ 3000 bags/cycle

Sawdust

Divine mixed farms at Ashaiman/Accra Emmanuel addai Awoshie/Accra

Osu, quick pik Osu, private homes, Kumasi

Lack of market, Unfavourable weather conditions (hot weather), packaging,

Process mushroom into shito, spices, mushroom drink

Member 800 bags/month Sawdust FRI, Divine at Michel Camp/Accra

Kona near Kumasi

Difficulty in getting good spawns, marketing, unfavourable weather conditions

Capacity for 5000

Assist. Secretary 12000‐18000/2 months

Sawdust FRI Quist Asubonteng /Accra

Accra (hotels, supermarket)

Lack of marketing, lack of financial support from banks, lack of gov support, lack of research on spawn species

Stop production and now markets and sell mushroom

Treasurer 1500/month 8000 composite bags/month

Sawdust FRI Aa farmer at Sukumono/Accra

Accra

Lack of funding for mushroom production, unfavourable weather conditions (Oct – Apr), lack of raw materials such as rubber, spawn production not enough at FRI

Now major in composite bags production, have the capacity to produce 25000. Sell mushroom to retailers

Public Relations 3000 – 4000 bags /3 months

Pokuase and Haatso/Accra

Vegetable sellers, Middle class

Contamination of spawns Currently not producing, left for Accra

Eastern Region Representative

3000‐4000/2 month Sawdust FRI Adenta/Accra

Koforidua and Accra ( super markets and Hotels)

Lack of market, very limited awareness in koforidua, mushroom eaters not used to oyster

Currently not producing, Left for Accra

Brong Ahafo Region Representative

2000‐2500 / week Strain from Belgium

Accra, Cape Coast,Kumasi, B.A, Upper East, Upper West, Northern Region

Difficult to get quality spawns in Ghana, Post Harvest Losses

Production and training, 500 people per year, working with 260 farmers,

Central Reg Rep 5000‐7000 per cycle Sawdust Accra, central region Lack of financial support for mushroom setup, lack of

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market for mushroom

Organizer 10000/3 months Sawdust FRI Accra, Nsawam, Asante region

Lack of finance to expand production, lack/restricted market

The Association is Collaborating with an NGO in the U.K to invest in the mushroom production and to source for international market for the mushroom

Central Reg Rep 14000‐16000/month

Sawdust FRI, Quist William, produce spawns on my own

Accra, Kasoa, Compost bags can’t grow well, lack of market

‐

Member 1500‐3000/month Sawdust, lime FRI, Colleagues, Accra, house to house, companies

No challenges ‐

Member 2000 bags/month Sawdust FRI, Mr. Mensah @Haatso

Accra(Hotels, Schools, individuals, banks, Ministries)

Lack of funding, lack chemicals to control pest

Formally produce 10,000

Member 1500 – 2000/month Sawdust FRI Accra(Neighbourhood, church, etc.)

Lack of Marketing, lack of staff

Stopped production because of challenges

Member 12000‐15000/cycle Sawdust FRI Accra (supermarkets, individuals)

Low yield, difficult to control production, low public awareness about mushroom

‐

Member 12000/month Sawdust Produce spawns myself

Accra, (direct consumers)

Lack of financial support ‐

Member 10000/cycle Sawdust FRI, Produce some myself

Consumers at the market (Madina), Shell shops, Other farmers to supplement their produce

Lack of Market, Difficult to control infestation of tricodomonas (fungi), Unfavourable weather conditions,

Volta Reg Rep 5000/cycle Sawdust FRI

Direct consumers at Hohoe municipality, Kpando, Jasikan, Nkwanta

Lack of funding for start‐up, lack of marketing, lack of knowledge of processing of mushroom, lack of patronage of cultivated mushroom because of bad perception of people about mushroom

Asante Reg Rep 3000/cycle Sawdust Produce spawns on my own

Kumasi and its environs, market,

Equipment to produce spawns, difficulty in growing

79





individuals, restaurants

new varieties such as Volvariella spp

FRI Expert in Mushroom Research

‐

‐

‐

‐

‐

‐

FRIExpert in Mushroom Research

‐

‐

‐

‐

‐

‐

FRITechnologist Mushroom Research

‐

‐

‐

‐

‐

‐

Mushroom Expert ‐ ‐ ‐ ‐ ‐ ‐

Key Informant ‐ ‐ ‐ ‐ ‐ ‐

Senior lecturer (University of Ghana, Animal Science Department)

‐

‐

‐

‐

‐

‐

Research Fellow (University of Ghana Animal Science dept.) and Livestock and Poultry Research Institute(LIPREC)

‐

‐

‐

‐

‐

‐

Animal Research Institute

‐ ‐ ‐ ‐ ‐ ‐

Site manager (Grand Moulins du Ghana‐Irani brothers flour mills)

‐

‐

‐

‐

‐

‐

Feed unit production manager (flour mills of Ghana Limited)

‐

‐

‐

‐

‐

‐

Environmental health and sanitation officer

‐

‐

‐

‐

‐

‐

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(Tulaku goat market)

AGRICARE Marketing manager

‐ ‐ ‐ ‐ ‐ ‐

Goat trader (Tulaku market)

‐ ‐ ‐ ‐ ‐ ‐

Livestock trader ‐ ‐ ‐ ‐ ‐ ‐

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Annex2:DetailedCountryReport‐Nigeria1. Executivesummary

This market study report on the potential utilisation of cassava and yam wastes in Nigeria and findings were on actual and potential waste solutions under Work Package 1 (WP1) of the Gratitude Project. This EU funded project investigates the Gains from Losses of Roots and Tubers (cassava and yam) with special emphasis on developing useful products from waste (peels, fibres, liquid effluent (waste) and pulps) in Nigeria, Ghana, Thailand and Vietnam. The overall objective of Work Package 1 (WP1) is to ensure that technologies developed by Gratitude concerning waste products and ways of reducing losses are commercially viable for key actors in the cassava and yam value chains. In particular, the objective of this report is to examine the market potential of alternative market outlets for food products from wastes, as would be developed in Work Package 4 (WP4).

This study focuses mainly on the use of cassava and yam peels as substrate in mushroom production and potential for use of peels in goat feed. Peels are generated at processing centres during the production of products such as Gari, Fufu, Lafun, Starch, Abacha, glucose syrup and High Quality Cassava Flour (HQCF). Gari is a widely consumed Nigerian food with an estimated production of 4.2 million tons in 2009 (NBS 2010). Taking the average cassava production for 2010 of 37.5 million tonnes with peels accounting for 10% of the cassava root (Okafor, 1998; Onyimonyi et al 2007), it is estimated that a total of 3.7 million tonnes of cassava waste peels was generated in Nigeria in 2010. Currently, very low proportion (less than 10%) of peels generated at the processing level are utilised for animal feed. Yam peels are usually recycled for the production of dried yam chips flour (‘elubo’) in areas such as Saki in Oyo State where the production of dried yam chips is one of their major businesses. Thus the actual volume discarded is very small while in other parts of the country where elubo production is not carried out peels are usually fed to domestic animals (especially the West African Dwarf goats) after sun drying or thrown away. Key findings are outlined below:

Peels as substrate in mushroom production

In Nigeria, there are different types of substrates used for mushroom cultivation. These include the use of agricultural wastes including rice bran, cassava and yam peels, saw‐dust, leaves of plantain/banana, straw from cereals like rice, maize, sorghum, and millet, by‐products from cocoa, oil palm and cotton. Among these agricultural wastes, the use of sawdust plus rice bran for mushroom cultivation is the most common in Nigeria because of its ready availability in quantity. There are at least two saw mills or plank markets in each of the 20 local government areas in Lagos State where most mushroom producers are located. However, the Federal Institute of Industrial Research Oshodi (FIIRO) has trained 39 potential entrepreneurs since 2005 on the use of cassava and yams peels as well as sawdust for edible mushroom production. The potential use of cassava peels as a supplement and a complete replacement of sawdust were welcomed by the mushroom farmers however; they were sceptical about its availability in quantity and quality.

Currently, the number of commercial mushroom growers who mainly use the ‘plastic bag method’ in Nigeria is estimated at ten. Majority of the growers are based in Lagos where there is growing demand for cultivated mushroom and mushroom products. Majority (80%) produce at the micro scale level with 90% of their products targeted at Shoprite (a major

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supermarket) and Hotels at N1, 000 – 1,500/ Kg and the remaining 10% sold to individual consumers at N150/ 100g. Efforts by a major producer of mushroom at Lagos and FIIRO are on‐going for the processing of the fresh mushroom in order to increase the shelf life so as to attract higher prices and make it available for consumers all the year round. The production substrate is made up of hard & soft wood sawdust plus rice bran plus calcium carbonate plus water. The production capacity of the main producer is about 20 ‐ 45Kg of fresh mushroom every 8 weeks using about 60Kg of substrate per batch and an annual production of 270 Kg mushroom. The usual conversion of substrate to mushroom is 50 – 75% of the weight, that is, 200g of substrate gives 100 – 150g of mushroom.

The Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis reveals several strengths and opportunities in the mushroom and mushroom media sectors. Strengths and opportunities include increasing availability and accessibility of cassava and yam peels especially from SMEs and processing centres, strong technical support for edible mushroom (especially Pleurotus spp (Oyster mushroom) and Volvariella volvacea (straw mushroom) cultivation by FIIRO, CRIN, NIHORT and some universities, growing expatriate populations and demand for organic and convenience foods due to increased awareness on healthy living, increased number of hotels and restaurant offering mushroom based soups, gradual shift from dependence on consumption of wild mushrooms that are seasonal to the consumption of cultivated mushrooms which are available throughout the year in Nigeria.

The key limitation to the use of cassava peels for mushroom substrate is the effect of cyanogenic glycosides in some cassava plants on the quality of mushrooms. This calls for further scientific investigations to establish the quality of mushrooms cultivated from cassava peels substrate. Other weaknesses and threats in the mushroom sector include inadequate supply of spawns, lack of expansion of existing production levels which limits economies of scale, poor yields during the dry seasons of the year, lack of adequate market information and health benefit on the consumption of mushroom, high perishable nature of mushrooms and lack of storage and processing facilities as well as cultural perceptions associated with cultivated mushrooms.

Peels in goat feed

West African dwarf Goat production in Nigeria occurs throughout the country but is concentrated in rural and semi – urban communities with virtually all households having a few animals. The feeding system is usually the low‐input traditional extensive free‐range system though combined with supplementary feed, usually employed few days after the processing of cassava for gari or fufu and yam after preparing for household meals. Rearing of goats in the urban areas present more prospective market for goat meat but most consumers of goat meat prefer the Red Sokoto goat and Sahel goat (with long legs) and this is the one that attracts high demand from canteen and restaurant operators in the cities. Urban goat farmers are willing to purchase feed for their livestock but the rural goat farmers are usually not willing to purchase feed ingredients given alternative options of free range and free supplementary feeding with by‐products. The goat industry in South West Nigeria is still developing giving the positive growth rates and there will be the need for more feed. The development of the goat industry is seriously affected by the continuous supply of goats from the Northern States. It is however recommended that potential feed producers may explore the option of fortification of cassava peels with protein, minerals, vitamins, and energy sources.

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2. Introduction

Nigeria is the world’s leading producer of both cassava and yam with a thriving cassava economy. Sixty per cent of Nigerians work in agriculture and over 86 per cent of the land in Nigeria is used for agricultural purposes. The overall objective of GRATITUDE (Gains from Losses of Root and Tuber Crops) project is to improve the post‐harvest management of cassava and yams leading to reduced physical losses, reduced economic losses through value‐added processing and valorisation of waste products. The yams produced by Nigeria accounts for over 70 – 76 per cent of the world production. According to the International Institute of Tropical Agriculture (IITA) Nigeria accounted for about 70 per cent of the world production amounting to 17 million tonnes from land area 2,837,000 hectares under yam cultivation. In 2010 the total cassava production was 37,504,100, in 2009 it was 36,804,300 and 2008 was 44,582,000 which was the peak of the production before the drop in quantity thereby showing the cyclic trend of cassava production in Nigeria. In comparison, the overall production of yam in 2010 was estimated 29.14MT while it was 29.09MT in 2009 as can be seen in table 17 below.

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

1 2 3 4 5 6 7 8 9 10 11 12

Year

Cassava

Figure 8: Production of Cassava in Nigeria (tonnes) from 1999 to 2010

Source: FAOSTAT

Table 17: Production of Yam in Nigeria (tonnes) from 1999 to 2010

Year Yam

1999 25,873,000

2000 26,201,000

2001 26,232,000

2002 27,911,000

2003 29,697,000

2004 31,776,000

2005 34,000,000

2006 36,720,000

2007 31,136,000

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2008 35,017,000

2009 29,092,000

2010 29,148,200 Source: FAOSTAT, (www.faostat.fao.org/site/567/DesktopDefault.aspx

There are several wastes generated in the cassava and yam production and processing sectors which include leaves, stems, root peels/skins; fermented wet fibrous siftings (from fufu processing), waste water and particles (from the dewatering stage of processing), and to a lesser extent flour siftings (during the production of HQCF), and pulp (fibre that remains after starch extraction from tuber). Total quantity of cassava peels generated from the total annual production is estimated at approximately 3.75 million tonnes annually (taking annual average production for 2010 of 37.5 million tonnes i.e. peel is 10% of the cassava root (Okafor, 1998; Onyimonyi et al 2007)).

Primarily, this study focuses largely on root peels/skins and to a lesser extent pulp from starch. From the current Value Chain Analysis (VCA) survey findings, peels generated from the cassava sector amounts to approximately 10% of total production annually (excluding waste generated from leaves and stems as well as fibrous and flour siftings that was sold to feed mill company for feed production). Waste generated from the yam sector constitutes about 14% of the volumes of yams consumed in Nigeria. Field visits to various farms; markets and processing centres showed that there are waste and losses (physical and economic losses) in cassava and yam enterprises. Wastes are usually on‐farm and the commodity cannot be used for anything while physical losses occur more during harvesting such as breakages of the tubers and economic losses occur when the tuber has deteriorated to a point where it can only be sold at a discount not at premium. When these happen, farmers and traders often sell at discounted price due to lower quality for damaged/spoiled roots mostly during market days. Economic losses occur during storage and handling during marketing. The consequence is that farmers and traders will earn little income from the enterprise.

The GRATITUDE Project proposal document has as part of its Work Package 1 to compile a report on the market potential for the range of potential waste product solutions in Nigeria. To this end the author had assessed the various market opportunities that exist as well as the potential for cassava and yam wastes in Nigeria. This market report presents findings on a range of potential cassava and yam waste solutions in Nigeria. Key sections covered include: methodology detailing primary and secondary data collection methods employed as well as the list of people interviewed (respondents) presented in section 3; general background information on cassava and yam production, processing, marketing and consumption and waste generated for possible use in mushroom substrate formulations, goat feed, starch recovery and sugar syrup in Nigeria. This forms section 4 of this report; Section 4 presents potential for use of peels as substrate in mushroom production. SWOT analysis for the potential of cassava peels as mushroom substrate as well as GAP analysis of mushroom and mushroom substrate sectors; Section 5 focuses on the description of goat and goat feed sectors, SWOT analysis for the potential of cassava peels as goat feed and GAP analysis of goat and goat feed sectors; Section 6 covers the description of starch and sugar syrup sectors and of a selection of end‐product sectors, SWOT analysis for the potential of cassava peels for starch and sugar syrup as well as GAP analysis of starch and

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sugar syrup sectors and of a selection of end‐product sectors; and Conclusions and Recommendations from this market study (which linked to WP4) are presented in section 7.

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3. Methodology

The study was carried out using both primary and secondary data. For primary data, information was collected from individual and key informants through interviews. First, all relevant actors in the cassava and yam value chain were identified during the Value Chain Analysis (VCA) survey. All the stages along the value chain where peels are generated were identified for further informal interviews with key informants and participant observation in relation to what is done to peels of cassava and yam generated. Intensive literature review on the various sectors under consideration for potential use of peels (mushroom, starch and goat feed) was conducted and a list of references consulted is appended to this document. In addition to this industry and value chain actors, researchers and experts were interviewed. A list can be found at appendix II.

Each key informant was interviewed and they were sources of contact details of others for follow‐up interviews. A total of five key informants were interviewed in the mushroom sector and goat sector.

A semi‐structured questionnaire was used as an interview guide. Key areas covered include description of the various sectors, description of the market segments, SWOT analysis for the potential of cassava peels for the various sector components and the GAP analysis of the various sectors of peels utilization.

In addition empirical assessment of peels of cassava and yam produced in different value chains were undertaken. To estimate the overall production of peels of cassava and yam the quantity of peels in each of the three categories (village level processor; SME and large processing factory) of cassava processors were determined. Initial weight of cassava and yam samples, weight of roots after peeling and weight of peels were taken. Some of the locations visited include Awowo village, Osupori village, Thai Farm International (TFI), Ekha Agro Limited, Matna Starch, and Niji Farms. Contact details can be found at appendix II.

4. Background

4.1 Production and Consumption of Cassava and Yam in Nigeria

Nigeria is the world’s main producer of cassava and yam. South West States have been classified under the suboptimal region. The bulk of the production takes place on smallholder farms (0.5 – 2 hectares). Although some improved varieties have been introduced (e.g. TME 419) there are still many farmers who do not have access to improved planting material.

Nigeria is by far the world’s largest producer of yams, accounting for over 70–76 per cent of the world production. According to the International Institute of Tropical Agriculture, Nigeria accounted for about 70 per cent of the world production amounting to 17 million tonnes from land area 2,837,000 hectares under yam cultivation. Cassava and yam products form part of the staple food of the region with products like gari, lafun, fufu, etc. from cassava and yam is sold raw, roasted, boiled and pounded plus dried chips.

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Figure 9: Dried sliced yam chips Figure 10: Yam tubers being sun dried Source: Field Survey 2012

Yam, Dioscorea specie is an important source of carbohydrate for many people of the sub‐Sahara region, especially in the yam zone of West Africa (Akissoe et al., 2003). There are many species of yam (Dioscorea spp.), which is believed to have originated principally from Africa and Asia before spreading to other parts of the world (Hahn et al., 1987). Yam is a celebrated crop in Nigeria (new yam festival) and farmers’ wealth in some part of the country is evaluated by the size of his yam barn. It is also a major source of income and an integral part of socio‐cultural life as it is used as part of ceremonial items such as coronation gifts, wedding items etc. In addition to their food uses, some Dioscorea species are exploited for pharmaceutical products (Asiedu, et al., 1992).

According to Opara (1999) yam is second to cassava in terms of production and as the most important tropical root crop but not from a nutritional standpoint as yam is better than cassava on account of its higher vitamin C (40‐120 mg/g edible portion) and crude protein content (40‐140 g/kg dry matter). Naturally, yam is rich in starch that produces energy and this is the nutritionally beneficial components, especially the resistant starch and mucilage. The resistant starch has been identified as one of the causes of slow digestion in the lower parts of the human gastrointestinal tract thereby causing the slow production of glucose and as such reducing the risk of high sugar in the blood that could result into diabetes, obesity, and other associated diseases (Liu et al., 2006).

Table 18: Market Information on cassava and yam

Commodity/ Products

Size Unit Price Unit of measurement

for sale

Type of Market Market Locations

Raw Cassava Roots

Usually mixed

N8,000 – 10,000/Mt

Panel van Rural gari & fufu processors

Awowo, Osupori, Ifo, IIaro, Akure, Ile‐oluji, Owo, Iju, etc.

Pick – up Van SMEs; Rural and Urban gari & fufu processors

Abeokuta, Ifo, Obada, Ilero, Ado‐Awaye, Iseyin, Osiele,

Cabstar Mini Truck

SMEs; Rural and Urban gari & fufu processors

Oke‐odan, Ilaro, Ifo, Osupori,

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Commodity/ Products


for sale


30 Tonne Trucks

Large Cassava Factories

Ibafo; Ososa

HQCF 50 Kg Bags N4,000/ 50Kg 50 Kg Bags and 5 Kg Bags

Wheat flour Millers, Rural Bakeries and Sausage Roll Producers

Lagos and Ibadan

Crude Starch 50 Kg Bags N5,500 ‐ 6,000/ 50Kg bag

10g Sachet and 50 Kg Bags

Soap makers; Nestle, Packed (sachet) Starch producers

All the State capitals in South West Nigeria especially Lagos, Ibadan, Abeokuta, Osogbo, Akure and Ado Ekiti

Gari 50 Kg Bag N5,500 Bowl – N120 each and weighs about 1.1 Kg

Rural and Urban Markets.

All markets in the South West States especially Lagos, Oyo, Ogun, Osun, Ondo, Ekiti and other parts of the country.

Lafun 50 Kg Bag N4,500 Bowl – N80 each and weighs about 0.9 Kg

Rural and Urban Markets

Abeokuta and its environ

Wet Fufu Mash

Market Bag Size

N1,500/1,600 Tempo Bags Size (approx 25Kg)

Rural and Urban Markets

Ifo and other locations in major cities

Home Bag Size

N2,200 Tempo Bags Size (approx. 30 ‐ 35Kg)

Rural communities

Ifo and other locations in major cities

Odourless Fufu Flour

Packs N 220 – 350 1 Kg Pack Urban Consumers and Households. Wholesaler/ Traders, Open Markets.

Major cities – Lagos, Ibadan, etc.

Raw Yam Tubers

Small N120 ‐ 150 Offa ‐ 120 Tubers

Traders and owners of restaurants, canteens and eateries in Urban and Rural Markets


Medium N200 Offa ‐ 120 Tubers



Large (Ceremonial)

N250 Offa ‐ 120 Tubers



89

Commodity/ Products


for sale


Dried yam Chips

Whole tuber N22,000 – 27,000

Bags Traders and owners of restaurants, canteens and eateries in Urban and Rural Markets

Ibadan, Lagos and other major cities

Thick slices N12,000 – 15,000



Thin slices N5,000 – 10,000



Source: Survey 2012

Yam, possibly the oldest cultivated food plant in West Africa, is of major importance to the economy of the sub‐region that accounts for the bulk of world production of the crop. By far the most important product derived from white yam (Dioscorea rotundata Poir) is pounded yam or “fufu”, popular throughout West Africa.

Similarly, cassava is very important in the region as a food security commodity that is processed into various products that is traded and eaten all year round in West Africa and beyond. The most popular of all the processed cassava based product is gari that is either eaten as a semi‐solid dough (known as “eba” through Nigeria and other parts of the region) or soaked in cold water and taken as a snack/ meal with groundnut, smoked or fried fish/ meat.

Table 19: Consumption Pattern of Cassava Products in Nigeria

Zone Order of Preference

South South Gari, Akpu/Fufu

South West Gari, Lafun, Akpu/Fufu

South East Gari, Fufu/Akpu

North Central Gari, Fufu, Starch

North East Gari, Fufu/Akpu, Abacha

North West Gari, Fufu

Source: Kormawa and Akoroda (2003) quoted by Phillips et al (2004)

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4.2 Wastes of cassava and yam

There are several waste generated in the cassava and yam production and processing sectors which include leaves, stems, root peels/skins; fermented wet fibrous siftings (from fufu processing), waste water and particles (from the dewatering stage of processing), and to a lesser extent flour siftings (during the production of HQCF), and pulp (fibre that remains after starch extraction from tuber). Total quantity of cassava peels generated from the total annual production is estimated at approximately 3.75 million tonnes annually (taking annual average production for 2010 of 37.5 million tonnes i.e. peel is 10% of the cassava root).

The disposal of peels and liquid waste (effluent) from cassava processing constitute a major threat to the environment through ground and open water sources contamination that are the major sources of water for domestic and industrial purposes (Abiona et al., 2005). In addition, the wastes pollute the air as the stench from the heaps and stagnant effluent bodies after few days are usually offensive. This attracts houseflies and microbes thereby increasing the population of these organisms that are disease‐carrying agents thereby posing health risk to the inhabitants of such areas. Azogu et al (2004) suggests urgent need for the development of new technologies for the consumption of cassava peels. New market opportunities for waste from cassava include the use of liquid waste from cassava processing (rye) as herbicide (control of weeds) and fertilizers depending on the cyanide concentration as well as the utilisation of peels for pottery products (glasses and cups).

From literatures, market potential for the use of waste and peels include the following:

a) improved utilisation of cassava peels for mushroom production; b) potential use of cassava peel for animal feed; c) potential utilisation of peels for value added products for the food industry

(including starch and sugar syrups); d) potential recovery of starch from pulp; e) potential use for snack food ingredients from waste from brewing cassava beer; and, f) Waste reduction and water treatment/recycling from dewatering.

The main focus of the GRATITUDE project on the few market potentials is as a result of the development of the gari, fufu, HQCF, starch and glucose syrup value chain in Nigeria with the establishment of over 135 SMEs, 2 large starch factories and one glucose syrup factory. These factories generate huge amount of peels and small roots that cannot be processed which can then be used for feed and mushroom production. Mushroom is consumed in Nigeria and usually sourced from the wild thereby making availability and continuous supply an issue. There are equally some breweries in the country but none is using cassava yet but plans are underway to start the utilisation in the nearest future.

5. Potentialforuseofpeelsassubstratesforgrowingmushrooms

This section looks at the Nigerian market for mushrooms, identifies competing products, describes the market segments and suggests market entry points for GRATITUDE mushroom media products.

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5.1 Description of mushroom ‐ Product

Mushroom is the fruiting body of a fungus and it has high nutritive and medicinal value. It is

a rich source of proteins, minerals and vitamins (Garcha et al., 1993). Li and Chang (1982)

established that edible mushroom proteins contain the essential amino acids especially

lysine and leucine, which were lacking in most staple cereal foods (Hafiz et al., 2003). Hafiz

et al. (2003) indicated that mushrooms contain 26.9% protein, 0.3% fat and 4.4%

carbohydrate. Mushrooms are healthy food sources for diabetics and over‐weights due to

its low caloric content. Mushrooms are rich in protein and vitamins but low in sodium and

cholesterol which makes it good for people with heart related ailments. Gradually, there is

a shift from overdependence on consumption of wild mushrooms that are collected wild to

the consumption of cultivated mushrooms in Nigeria. Some collectors of mushroom resort

to encroachment of forest reserves as primary source of wild mushroom (Taylor et al., 1996;

Sullivan et al., 2006). In Nigeria, tropical edible mushroom such as Oyster mushroom

(Pleurotus spp) and straw mushroom (Volvariella volvacea) are common.

Figure 11: Mushroom growing on substrate in polyethylene bags

Source: Field Survey 2012

Mushrooms, locally known as ‘Olu’ in the South Western part of Nigeria, are a group of fungi belonging to the class Basidiomycetes and order Agaricales. Mushroom sauce is a local delicacy popular among the indigenous southern population of Nigeria. Prior to the commercial cultivation of mushrooms in Nigeria a large proportion of the people had relied on collection of wild mushrooms with the occasional dare consequences of consumption of poisonous species of mushrooms (Uraih and Izuagbe 1990). Mushroom has a high protein content of 25 – 50% and also composes of fat (2 – 5%), sugars (17 – 47%), mycocellulose (7 – 38%), minerals (8 – 12%) and vitamins such as D, C, B1, B5, B6, niacin and riboflavin (Chang, 1986).

The only way to ensure regular supply of mushroom all year round is through cultivation rather than depending on the collection of mushrooms from the wild in forest areas during the wet season March – September for both nutritional and medicinal purposes. Forest areas are being threatened as timbers and trees are fell indiscriminately without much regeneration programmes.

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5.2 Nutritional and Pharmaceutical Benefits of Mushroom

The popular mushroom in Nigeria is the oyster mushroom, which has about 61 percent protein, scarcely no fat and a lot of minerals and vitamins. It has the highest content of vitamins B1, B2 than all other mushrooms. It contains 5 to 10 times the amount of niacin than any other vegetable and that is a very vital vitamin. It is richer in folic acid, which prevents anaemia than any other vegetable or meat except liver. It is ideal for diabetic and hypertensive patients as it has low content of starch, fats and calories. It has a very low content of sodium that makes it wonderful for patients with heart ailment and kidney failures. It can stimulate the formation of interferon, a body chemical that fights vital infections and cancer. It contains dittany, a substance in the human cell that can stop the growth of tumour. When eaten regularly, oyster mushroom can assist the body in writing off cancer and it is good in treating convulsion.

5.3 Substrates and cultivation of mushrooms

Our field survey revealed that virtually no industry is producing mushroom on commercial basis from dried cassava or yam peels. However, the Cassava: Adding Value for Africa Project reported training of cassava processors in Sunshine, Owo, Ondo State in 2011 with the technical support from the Federal Institute of Industrial Research, Oshodi (FIIRO) on the use of cassava peels for mushroom production. Dried cassava peels are soaked separately with calcium carbonate ‐CaCO3 and water in ratio 32:2:66 substrate, CaCO3 and water respectively, the mixture stirred properly and allow to standing for 1hr before excess water is pressed out to retain about 70% moisture level. The substrates were pasteurized in an autoclave for 2hrs at 1210C to kill all unwanted microbes that can compete with the nutrients desired by mushroom to grow or hinder mushroom fruiting. The pasteurized substrates were allowed to cool at room temperature of 280C. Spawns of Pleurotus pulmonarius were used to inoculate the substrates. It is then dispensed into polyethylene bags separately at a weight of 200g each. The usually conversion of substrate to mushroom is 50 – 75% of the weight, that is, 200g of substrate gives 100 – 150g of mushroom. The inoculated substrates were allowed to ramify. Mycelia running take place faster in the dark and darkness has to be created at the incubation stage for faster running of mycelia. The substrates were covered with newspaper. This stage lasts for about 3‐4 weeks, to allow for full ramification of the substrates while they were been monitored daily. This is the latest technology that FIIRO wants to promote in the country among major mushroom producers though still relatively new in Nigeria.

Figure 12: Composting of substrate, inoculation and mushroom growth Source: Field Survey 2012

93

Fruiting and harvesting is the final stage of the production of mushroom which occurs after full ramification of the substrates, they are then expose, the tied nylon bags are loosed to allow for air, light and daily watering till the pin head appears, because water on the fruit will lead to the rotten of the mushroom. Full‐blown mushroom are harvested after about 3‐4 days of fruiting. After harvesting, watering of the substrates continues to have another flush from them.

Figure 13: Production and Drying Flowchart

Source: Survey 2012

The flow chart for the production of mushroom shows the possible entry strategy point into the mushroom production in Nigeria using cassava and yam peels as substrate. GRATITUDE project can showcase the use of the substrate with cassava and yam peels. The substrate can be packed in polyethylene bags (200g each) and sold to mushroom producers at a good rate. This will enable quick adoption of the technology and increase the output of each mushroom producer. The appropriate point of entry along the flowchart can be agreed upon.

5.4 Description of market segments ‐ Place

Mushrooms as food may be cooked fresh after harvesting, dried after harvesting before utilising for food preparations. Mushrooms are locally known as ‘Olu’ in the Southwestern part of Nigeria are a group of fungi belonging to the class Basidiomycetes and order Agaricales. Mushroom sauce is a local delicacy popular among the indigenous southern population of Nigeria. Other consumers use mushrooms as delicacies in soups and stews. Mushrooms are used in hotels, restaurant and other catering services. There are local using sawdust and exotic species imported from South African and China (Figure 13). Most of the

94

local species were limited in the supermarkets. Our field survey found it very hard to ascertain tonnes of mushroom produced per year. The local mushroom producers purchased growth media from institutes like FIIRO or University Abomey Calavi, Benin Republic. They are selling mushroom in bags to nearby hotels. The imported mushrooms come as fresh and canned ones.

Some mushroom growers implored for more awareness for the consumption of mushroom as the local market (households, Hotels and Large supermarket chains such as ShopRite & park ‘n’ shop) is huge with great potential and there are no enough growers to satisfy the market, if tapped. In Lagos State there are 451 hotels and guesthouses with 65 major hotels that will definitely be serving mushroom based soups and about 1135 supermarket & stores and these are the major target market for mushroom. South West Nigeria consists of six States namely Lagos, Ogun, Ondo, Ekiti, Oyo and Osun States. The total population of the South West zone is 27,722,441 with Lagos state having 9,113,605; Oyo ‐ 5,580,894; Ondo – 3,460,877; Osun – 3,416,959; Ogun – 3,751,140 and Ekiti – 2,398,966.

About 39 potential mushroom producers (list not provided) have been trained by FIIRO on edible mushroom production since 2005 but the number of mushroom producers in the zone is less than 10 with an average annual production of less than 600Kg per producer. The other sources of mushroom are from the wild and import. Retirees do most of the commercial cultivation of mushroom as a business that keeps them active after disengaging from public service. The size of the business is about N2 – 3 million excluding the cost of construction of the structure/ mushroom house. Most of the producers try to save cost by producing their substrate themselves and source the pure spawn mainly from FIIRO and sometimes from the Republic of Benin and Ghana.

5.6 Potential Utilisation of peels for commercial mushroom production

Commercial growers of mushroom located in Lagos should embrace the use of cassava and yam peels as substrates as this tend to show better output. According to Akinrinola‐Akinyemi et al. (2012), 2kg of yam and cassava peels each were used in the cultivation of Pleurotus pulmonarius, yam produced a total weight of 38.07g and cassava peels 29.84g. Yam showed to be more promising than cassava in the fruiting pattern as all the flushes of yam produced mushroom though diminishes in weight compared to cassava that doesn’t produce at the fourth flush and some in the third flush. There are existence of producer association9 and cooperatives promoting mushroom in Nigeria10. Some individual farms are visible in the net11. Most of the regulations for exotic mushrooms are carried out using existing extant custom and import requirements with big players12.

The profitability of the commercial cultivation of mushroom is shown in the table below:

9MushroomGrowers‘AssociationofNigeria10BetemMushroomGrowersCooperativeAssociationthathostOICIfarmer‐to‐farmervolunteers11Nigeriasmetoolkit.org/Nigeria/en/webpage/mushroom/en12www.21food.com/company/search_keys‐mushroom‐p1.html

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Table 20: Profitability of a typical mushroom production unit in Nigeria

Item/ description Unit cost (N/kg) Total (n)

Sales revenue 1,000* 9,600,000

Total Manufacturing Cost 4,705,000

Gross Profit 4,895,000

Corporate Tax @ 30% 1,468,500

Net Profit 3,426,500

*Annual Production of 9,600 Kg

Source: Survey 2012

This net profit figure translates to N356.93 per Kg, which is about USD 2.38/Kg.

5.6 Price and Promotion of Mushroom

a) Price

Each of the mushroom producers determines the price at which they will sell their products

to major supermarkets and other customers. The major reference point is the price of the

imported mushroom that can be found in Shoprite (a major supermarket chain). The

average prices of locally produced mushroom obtained during the study from mushroom

producers are as follows:

(i) N300 for 200g to neighbours & friends

(ii) N1, 000/Kg for bulk purchase

However, Shoprite sells to final consumers at the following rates:

(i) Mushroom white Button Silver stream (250g Pre‐pack) N859.99

(ii) Mushroom Oyster Fresh (300g) N559.99

b) Promotion

Not much is done in terms of creating awareness about the mushroom in the country as

most of the producers of mushroom sell their products to friends, neighbours and major

supermarkets like Shoprite. There is little done about the branding of the products by the

various producers with stickers on packs as fresh mushroom are placed in transparent packs

and displayed in supermarkets for interested buyers to purchase. Most of the producers

target hotels and neighbours who are the major customers; as such much investment is not

done in terms of promotion. Branded mushroom products that could be seen in Shoprite

and other major supermarkets are from both local and foreign producers (imported from

China, South Africa, Ghana, etc.). In Shoprite, the initial sticker of the producers are not

allowed to be seen by the customer, that is, the supermarket places its sticker over the

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producer’s sticker thereby making it impossible to identify the brand name and sources of

these mushroom.

Figure 14: Packed mushrooms in Shoprite


5.7 SWOT Analysis of the mushroom and mushroom media sectors

This section of the report is to try to explore the strengths, weakness, opportunities and

threats to the emerging mushroom and mushroom media sectors in Nigeria with a view to

understanding how cassava and yam peel waste might compete with other sources of

mushroom media. It is evident that mushroom and mushroom media sectors have several

strengths including high population that contribute to large potential markets for

mushroom, demand for organic and convenient foods due in part to increase awareness for

healthy living, and availability of agricultural wastes as a good replacement for saw dust

because of its improved yield, increasing numbers of cassava processing SMEs and large

factories, accessibility of peels as well as strong technical support for mushroom cultivation

among others.

There are limitations to the growth of the mushroom and mushroom media sectors that

need to be addressed. These include inadequate supply of spawns, lack of expansion of

existing production levels which limits economies of scale, poor yields in some periods of

the year, lack of adequate information on the nutritional and medicinal importance of

mushrooms13, limited investment in the cultivation of mushroom due to the non‐

availability on the profitability of the mushroom production business14 and marketing

networks to take advantage of demand opportunities, high perishable nature of mushrooms

and lack of storage and processing facilities. Other factors that limit growth are lack of

branding and efficient packaging to assure product quality.

Despite the weakness in the mushroom and mushroom media sectors, there are enormous

opportunities15. These opportunities include growing demand for value added organic

13www.begellhouse.com/journals/708ae68d64b17c52,0d0f121956dd501b,14www.startupbizhub.com/start‐a‐mushroom‐farm.htm15www.bioline.org.br/pdf?ja10008

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products especially in the food services & tourism industry like hotels and restaurants,

opportunities for public‐private partnerships in establishing large mushroom farms,

decreasing availability of wild mushrooms which encourages cultivation of mushrooms and

export opportunities.

Another key weakness to the use of cassava peels for mushroom cultivation is the non‐

availability of clean and pure spawns for cultivation. In addition, the high transport cost of

the peels to Lagos and the possibility of the content of cyanogenic glycosides in some

cassava plants. This calls for further scientific investigations to establish the quality of

mushrooms cultivated from cassava peels substrate. The threats to the mushroom industry

are the growing global environmental education on the need to reduce/ eliminate the

felling of trees (deforestation), cultural perceptions associated with cultivated mushrooms

and food quality and safety standards particularly for export markets opportunity.

Table 21: SWOT Analysis of the mushroom sectors in Nigeria

STRENGTHS

Huge markets and increasing numbers of hotels and restaurants demand for continental dishes ingredients like mushroom


Rich protein source. Approximately 27% protein that is comparable to cauliflower (29%) and Green peas (26%)

Cultivation of mushrooms on a wide range of substrates

Use of mushroom cultivation (bio‐converter in waste recycling techniques) in waste management and pollution control

Existence of Mushroom producing entrepreneurs in Nigeria

High return on mushroom production

Availability of lower cost methods for mushroom cultivation

Existing research expertise (from FIIRO) in mushrooms for technical support to the industry

Adequate supply of water

Large urban populations and increased working couples

WEAKNESSES

Inadequate supply of spawn16 and raw material

Mushroom cultivation considered as high‐risk venture and there are very few commercial growers but 3 major research institutions involved.

Location of mushroom grower in Lagos and peels available outside Lagos making transportation of the peels an issue

Lack of information on the effect of cyanogenic glycosides in

16 Spawn is the seed stock, which is used for inoculating the substrate for mushroom production.

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some cassava plants on the quality of mushrooms cultivated with cassava peels

Occasional Poor yields

Post‐harvest losses experienced due to high perishable nature plus Inadequate storage & processing facilities

Lack of information, particularly about prices and market opportunities

Lack of branding to assure product quality

At times no ready market close to production sites

Inadequate working capital and possible sources of capital

Low public awareness of cultivated mushroom especially among rural dwellers

OPPORTUNITIES

Growing demand for mushrooms both for household consumption and commercial utilisation in hotels and other catering services


Availability of agricultural wastes in quantum





Government agricultural Transformation programme and policies on the development of the non‐oil sector plus focus on agri‐business and entrepreneurial development as engines of economic growth

Technological innovations creates opportunities for the mushroom industry by way of doing business through the internet, channel tracking for coverage

Availability of some new processing technologies through research output from national institutes like FIIRO, CRIN and NIHORT


High technological standards (quality assurance and safety management especially for cassava SMEs firms)

THREATS

Some consumer perceptions about cultivated mushrooms as unfit for human consumption

The availability and affordability of other sources of protein (beef, poultry, fish, sea‐foods, etc.) all year round

Government support for increasing production of livestock, poultry and Fishery resources for the provision of protein sources

Lack of storage facilities/ infrastructures for pure and clean

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spawns

Unwillingness of financial institution to lend to the agriculture sector.

Contamination associated with spawn production

Unfavourable (dry) weather conditions (from October – April annually) for mushroom production


Poor road network especially to farms and raw material sources


Table 22: SWOT Analysis of the mushroom media sectors in Nigeria

STRENGTHS

Cultivation of mushrooms on a wide range of substrates (agricultural wastes that are readily available) in Nigeria

The possibility of using spent substrate after mushroom production for animal feed preparation and as bio‐fertilizers for crop production

Substrate made with the combination of cassava and yam peels gives a better yield of mushroom

Locally sourced raw materials for substrate compounding

Large processing and consumption of cassava and yam all year round thereby making raw materials constantly available for substrate production where competing products are seasonal?

Growing availability of cassava peels as opposed to decreasing availability of sawdust as a result of deforestation

Existing local research expertise (from FIIRO, NIHORT & CRIN) in mushrooms media production from local raw materials and wastes for technical support to the industry

Large number of saw mills and plank markets in South West Nigeria for saw dust production

Ease of expansion of mushroom production level by mushroom producers due to availability of cheaper media

WEAKNESSES

Lack of awareness by mushroom producers in the utilisation of cassava and yam wastes for mushroom media production in Nigeria

Very few entrepreneurs involved in mushroom production thereby making the media market unattractive

Relative high cost of transportation of the peels (cassava & yam) and other raw materials is an issue

Lack of information on the effect of cyanogenic glycosides in some cassava plants on the quality of mushrooms cultivated with cassava peels

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The collection of yam peels is an issue as there are no industrial/ large processing of yam in many locations in order to generate enough peels for the production of substrates for mushroom production

Inadequate working capital and possible sources of capital

OPPORTUNITIES

Increasing demand for organic food products and the general consciousness of the nutritional & medicinal importance of mushrooms

Availability of agricultural wastes in large quantities in many parts of South West Nigeria


Growing environmental education consciousness of the need to be environmental friendly and reduce/ eliminate felling of trees will reduce the quantity of saw dust for the mushroom industry

The competing uses of saw dust for domestic cooking, smoking of fish and making of briquette

Availability of some new processing technologies through research output from national institutes like FIIRO, CRIN and NIHORT

The little capital required in the setting up of mushroom media business

Government support for the development of the non‐oil sector of the economy

Nigerian Export Promotion Council (NEPC) support for locally produced products

THREATS

Ready availability of saw dust in South West Nigeria all year round due to full depletion of saw wood and mills since the late 1990s17

Lack of storage facilities for pure and clean spawns which affects the continuous production of mushroom, thereby affecting the demand for media/ substrate

Unwillingness of financial institution to invest in the agriculture sector.

High content of cyanogenic glycosides in some cassava plants could pose threat to mushroom cultivation

Identification and availability of alternative agricultural waste with better mushroom yield for production of media in the nearest future

Government policy that favours the importation of mushroom based products

17www.fao.org/docrep/004/AB592E03.htm

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5.8 GAP ANALYSIS

With all the budgetary allocation by the Federal Government to the livestock, poultry and

fishery resources, there is still inadequate supply of protein sources for the citizenry as quite

a lot of importation of frozen fish and other sea‐foods is on the increase. The cost of frozen

chicken and turkey is between N600 and N700 per Kg wish is cheaper than the cost of

mushroom of N1, 000/Kg but the medicinal effect of consuming mushroom could make it

more attractive as people are conscious of their health these days in Nigeria. The level of

animal protein production in Nigeria is still inadequate to meet up with the WHO standard

as such there is growing need for increased animal protein production which goat

production can assist in reducing considering the time required for each animal to attain

maturity.

There is no commercial production of substrate for edible mushroom production as all

producers compound their substrate that can be time consuming. With the establishment of

substrate producing entrepreneurs who would be trained on the production of the

substrate that will be packed in bags (25Kg & 50Kg) and sold to potential mushroom

producers who will just sterilize and inoculate with spawn for mushroom production.

Figure 15: Composting of substrate and packing in polyethylene bags

Source: Field survey 2012

This will reduce the time involved to take off after training of mushroom producers. Equally, it will eliminate the possibility of error in the substrate by the new entrants which affects yield in mushroom production. Finally, the outcomes of research findings can then be easily commercialised thereby increasing the production of mushroom in Nigeria create employment and increase the number of value chain actors.

6. Potentialforuseofpeelsingoatfeeding

In Nigeria, goat is a significant part of the food chain and overall livelihood of the rural households. Rural dwellers keep goats for various reasons such as income generation, religious purposes, household consumption, hobby and for security against crop failure. Goats are used for all ceremonies throughout the year such as births (naming ceremonies), death (burial ceremonies), marriages and festivals. This is responsible for the consistent

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high demand for goats. In South West Nigeria, goats are used for meat production as well as for religious and customary rites purposes (Odeyinka and Ajayi, 2004). Goats are easier to keep than cattle because of their body size and feed requirement (Okunlola, et al., 2010). According to Hamito (2008), goats like sheep have served as means of ready cash and a reserve against economic and agricultural production hardship. The Federal Ministry of Agriculture in 1997 reported 53.8 million herds of goats and this was more than sheep’s 33.2 million and cattle’s 18.2 million. This affirms the growing number of goats when compared with other meat sources excluding poultry, which is in line with the global trend as the number of goats has increased by 50% in the past years due to the increasing awareness about the nutritional values of goat products (Morand‐Fehr and Boyazogly, 1999; Devendra, 2001; Morand‐Fehr, 2003). The price of goat meat has been reported to have been consistently higher than the price of beef in Nigeria (Delgado et al., 1980).

The three main recognized breeds of goats in Nigeria are: The West African Dwarf (WAD); Sokoro Red (Maradi); and West Africa Long Legged goats (Sahel). Another breed, which is now getting popular and sought after is the white Bornu. In South West Nigeria, the WAD is the most common because it is typano‐tolerant. However, Sokoto Red and Sahel constitute the major breeds slaughtered in Nigeria because of their live weight as compared to WAD.

Table 23: Weight of the main Breed of Goats in South West Nigeria

Breed Male Live weight Female Live weight

West African Dwarf (WAD)* 20 – 27 Kg 18 – 24 Kg

Sokoto Red (Maradi)** 27 – 30 Kg 24 – 27 Kg

West Africa Long Legged Goat (Sahel) 28 – 32 Kg 27 – 30 Kg

*Average milk yield is 0.5 litres per day under good nutrition ** The dressing percentage is about half the live weight Source: Field Survey 2012

Table 24: Number of Some Animals in Nigeria

Source

of

Protein

2005 2006 2007 2008 2009 2010

Cattle 15,875,267 16,013,382 16,173,516 16,293,226 16,434,978 18,871,399

Chicken 150,682,522 230,292,147 245,564,058 174,433,855 183,155,548 138,536,162

Goats 49,959,046 51,208,022 56,328,824 53,800,428 55,145,439 65,651,252

Pigs 6,141,217 6,386,868 7,983,585 6,908,034 7,184,356 6,040,820

Sheep 31,547,883 32,305,032 33,535,535 33,874,281 34,687,264 37,422,554

Source: FAOSTAT 2012

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About 11.6 million goats were slaughtered to produce about 147,000 metric tones of meat

annually (FAO, 2005). About 30% of lean meat consumption in Nigeria is from goats (Adu,

1985). With this level of production, Nigeria has not been able to provide animal protein in

sufficient quantity to meet the dietary animal protein requirement of her citizenry (Ibe,

2000). This protein deficit can be filled by rearing goats, which are the most prolific of all

domesticated ruminants (Webb & Mamabolo, 2004). Goat does not only supply the

households with protein, but can also be a good source of income generation that will assist

in improving the livelihood of the family as quite a number of products can be obtained

from goats such as meat (chevon), milk, yoghurt, cheese and other by‐products (hide and

skin).

6.1 Description of goat and goat feed sector

The West African Dwarf is a small‐bodied, compact breed that may be all white, black,

brown, or spotted black or brown on a white coat. Its variation in colour and patchy

distribution make it difficult to distinguish clearly from the Yankasa. Ngere et al. (1984)

recognised that there are three main breeds of goats in Nigeria, viz. the Sahel, Desert or

West African long‐legged goat, the Sokoto Red and the West African Dwarf (Figure 16).

Figure 16: West African Dwarf and Sokoto Red Goat


The distribution of goats in Nigeria is not even and numbers tend to be higher in the drier

areas. Consequently, flock size is larger in the drier than in the humid areas18. The majority

of small ruminants are owned by individuals or families in rural areas and the number per

group is small. Generally, goats are kept by farmers. Goats are in the forest and derived

savannah of southwest Nigeria, most of the Eastern and Southern region as well as

Northern States of Nigeria. There is an average of flock size of 5 among the goat keepers. In

the absence of more precise data, it is very difficult ascertaining the actual numbers of goat

farmers in Nigeria. Our field survey showed that, virtually all households have one goat or

the other, for food security and social reasons.

In Nigeria, hardly can you find any large‐scale commercial goat farming in the southern part

of the country; south depends solely on the North for its supply of goats and their

18www.grin.com/en/e‐book/170047/factors‐affecting‐goat‐and‐sheep‐milk

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products19. However, national development20, market demands and project

interventions21, 22 reduced the quantity of livestock supply encouraged the growth and

development of commercial goat farmers. There is an association of sheep & goat farmers

with the national president residing in Ibadan, Oyo State. Urban goat farmers are willing to

purchase feed for their livestock but the rural goat farmers are usually not willing to

purchase feed ingredients given alternative options of free range and free supplementary

feeding with by‐products.

Table 25: List of Sheep and Goat Farmers Association of Nigeria in South West States

Name of Association Location Contact Person

Sheep and Goat Farmers Association of Nigeria – Ondo State Chapter

Ondo State

Sheep and Goat Farmers Association of Nigeria – Oyo State Chapter

Oyo State Alhaji Abdulwahab Salami

Sheep and Goat Farmers Association of Nigeria – Osun State Chapter

Osun State

Non – Existent Ogun State ‐

Sheep and Goat Farmers Association of Nigeria – Ekiti State Chapter

Ekiti State

Sheep and Goat Farmers Association of Nigeria – Lagos State Chapter

Lagos State


The goat industry in South West Nigeria is still developing giving positive growth rates and there will be the need for more feed. The development of the goat industry is seriously affected by the continuous supply of goats from the Northern States.

19tribune.com.ng/index.php/wealth‐creation‐thru‐agric/1923‐goat‐farming‐120Pdf.usaid.gov/pdf_docs/PNADY279.pdf21www.cassavabiz.org/agroenterprise/ent%29mahesgoat_01.pdf22goatfarming.tripod.com/

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Figure 17: Principal Livestock Trade Routes in Central and West Africa

Source: IRAM (2009) in Bonnet et al (2011)

Goats are one of the few trypanotolerant livestock species in the humid zone of Nigeria. The

major constraint to goat production in Nigeria is the availability of suitable feeds23. Goats

are fed with Gliricidia sepium; a perennial fast‐growing, highly prolific, leguminous browse

plant; Panicum maximum, a widely distributed grass in Nigeria that is highly cherished by

ruminant animals and cassava peel with 4.2t/ha available for feeding ruminants, especially

goats. There are no standards, rules and regulations on feeding regime for goats as the

animals are left on free browsing in the environment.

The use of cassava peels for feeding goats increased the incomes of the beneficiaries (goat

farmers) by 15% ($198/ year for goat farmers and $384/year for cassava processors). A sample

of 40 direct beneficiaries found a monthly increase in income of over 39%, resulting in an

average revenue gain of $635 USD (DM TEAM, October 1, 2010, p. 18). It should be noted that

there was a wide variance in the revenue reported from the project; the higher incomes were in

areas where other livestock keepers (especially cattle herders) compete for the cassava wastes

and therefore the price of the dried cassava peels is higher24.

6.2 Meat Consumption in Nigeria

The consumption of meat is a major part of the expenditure for food in this part of the world.

According to NBS (2012), meat included beef, mutton, dried beef, pork, bush meat, goat, wild

game meat, ponmo (meat skin), other meat (excluding poultry) and canned beef and these

accounted for N206,823,054,528 being the total annual expenditure (national) of urban

household in the year 2009/10 while rural household annual expenditure was

23www.fao.org/wairdocs/ILRI/x5458E/x5458e0a.htm24wbl.worldbank.org/wbdm/idea/using‐cassava‐waste‐raise‐goats

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N256,105,666,664.36. This is 3.52% of the food expenditure for urban household and 2.61%

of food expenditure for rural dwellers. Consumption expenditure on meat in South West

Nigeria for the same period was N114, 143,537,337.76 that is 3.20% of the food expenditure

and 1.86% of the total expenditure.

Table 26: Annual Meat Consumption Expenditure in South West Nigeria in 2009/10

State Total Annual Expenditure

Percentage of Food (%)

Percentage of Total Expenditure

(%)

Ranking on Annual Food Consumption

Expenditure

Lagos 49,713,826,842 3.44 1.79 1st

Oyo 27,615,648,236 3.52 2.19 3rd

Osun 12,681,301,520 2.15 1.51 6th

Ondo 9,971,933,455 2.90 1.90 19th

Ogun 8,120,832,781 3.92 2.18 34th

Ekiti 6,039,934,504 3.08 1.62 36th

Source: NBS 2012

6.3 Market Opportunity for Goat Meat

The demand for meat in most African countries is very low at a level of 25g and the demand

is even lower especially in the southern and eastern parts of Nigeria where production of

animal protein has not been high enough to meet the demand of an ever‐growing

population (Obi, 2000). Ademosun (2000) puts Nigerian’s total meat production at 810,000

tonnes for a population of about 110 million resulting in a meat production index of 22g per

caput per day. Regmi (2007) noted the unprecedented population growth that has occurred

in the last half of the century has created an additional demand for meat and general food

in developing countries. Out of 35grams of animal protein per day per person

recommended by F.A.O, less than 7 grams is consumed on the average. The per capital

protein intake as recommended by FAO is 55gm out of which 10.6 g should be from animal

origin FAO, 2004. The Nigerian food balance sheet showed that only 4.82 of animal protein

in consumed which is only about 10% of the recommended total protein intake.

According to Bonnet et al (2011) the demand for beef is largely driven by the Federation of

Nigeria, as Nigerians make up of beef consumers in ECOWAS. The country is experiencing a

significant demographic expansion with spectacular change in food habits. The population

growth is close to 2.8% per year and the country’s own domestic production is far from

being able to meet demand. Nigeria is therefore forced to import some of the beef

consumed therefore making the country a major outlet for Sahel livestock, via direct sales or

the moving of herds for commercial purposes. At the federal level, livestock operations

contribute only about 5% of GDP, whereas agriculture as a whole contributes 35% of GDP.

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Table 27: The Potential market for goat meat in Lagos State

Local Government

Area

Catering Services

Eateries, Bars & Relaxation Centres

Hotels & Guest Houses

Supermarkets & Stores

Agege 36 25 31 38

Ajeromi – Ifelodun 26 25 16 45

Alimoosho 0 99 72 0

Amuwo‐Odofin 26 26 16 43

Apapa 3 37 3 50

Badagry 8 5 11 21

Epe 34 48 25 0

Eti‐Osa 1 0 0 14

Ibeju‐Lekki 5 0 0 20

Ifako‐Ijaiye 0 0 21 134

Ikeja 61 99 45 49

Ikorodu 38 114 53 305

Kosofe 17 0 53 31

Lagos Island 17 58 7 58

Lagos Mainland 17 58 3 58

Mushin 0 36 0 45

Ojo 9 39 15 12

Oshodi – Isolo 0 0 60 0

Somolu 34 72 0 212

Suru‐lere 25 212 20 0

Total 357 953 451 1135

Source: Lagos State Business Directory 2011 ‐ 2011

The total goat numbers in Africa in the year 2004 was 223 466 000, which is 29% of world goat numbers and Nigeria ranked second with 27 million goats. Goat meat is 50 – 65% lower in fat when compared to similarly prepared beef thereby making it have a higher percentage of protein content. When compared with chicken without its skin, goat meat is also lower in fat as such suitable for consumption by all including the elderly. These factors however need to be promoted so that increased demand for goat meat among the populace. The popular ways in which goat meat is consumed are as follows:

Asun –Spicy Goat Meat

This is goat meat that is chopped into small pieces, cooked and mixed with sliced fresh pepper; the heat from the cooked meat will cook the fresh pepper, giving it a fresh peppery taste. Fresh onions and tomatoes can then be sliced to garnish the Asun and to be eaten. Asun can be prepared at home, clubs, drinking bars and hotels as a relaxation meal and at occasions as an appetiser.

Pepper soup

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This is goat meat in a spiced broth made with some special local spices and the peculiar taste comes from the local spice mix. Though pepper soup of various protein sources is available, the goat meat pepper soup and Fish pepper soup (widely made with catfish) are the most popular. Pepper soup is equally prepared at home, clubs, drinking bars and hotels as a relaxation meal and at occasions as an appetiser.

Isi –ewu (Goat head)

A special delicacy is prepared with goat heat and served at home, clubs, drinking bars, hotels and occasions as an appetiser. The special meal is quite rich attracting a good price per plate (about N1, 000) and it is now being consumed by all though originally from south –east Nigeria.

Soup and Stew

Goat meat is usually used as the protein source in making soups and stews in Nigeria.

6.4 SWOT Analysis for the use of Cassava Peels as Goat Feed

Cassava peel has high rumen degradability and is commonly used in livestock feeds in Nigeria. In Nigeria, opportunities exist for the use of cassava peels in goat feed particularly in urban and peri‐urban areas where semi‐intensive feeding systems are practiced. Table 28 presents the SWOT analysis for the potential use of cassava peels as goat feed.

Table 28: SWOT Analysis for the Potential of Cassava Peels as Goat Feed

STRENGTH

The cassava peel is high in the soluble carbohydrates (62%) and low in fibre (16%) with a moderate level of nitrogen (1%), and reflects a high potential as energy feed source compared to leguminous browse and grass plants for goats

Studies have shown that cassava peel has high rumen degradability making it a useful energy ingredient in goat diets. In a study comparing the rumen degradability of several crop residues

Cassava peel meal can serve either as the main basal diet or as a supplement.

Cassava peels is available all year round as the commodity is processed into staple foods such as gari, fufu, etc.

It increases the income of both cassava farmers and the goat farmer with the use of cassava peels and therefore makes cassava production for other uses more economic

WEAKNESS

Cassava contains hydrogen cyanide (harmful).

Utilization of cassava peels in monogastric feed is limited due to its fibrous nature, low protein content and high levels of hydrocyanic acid

There is minimal/no market control and no defined or structured market for the goat feed industry

The initial cost of constructing the drying platform with low income of cassava farmers, village level processors and goat farmers

OPPORTUNITIES The goat industry is still developing giving the positive growth

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rates, which will need more feed

Processing of peels to prevent goitrogenic and other neuropathological effects in goats is possible

Processing of cassava peels by drying or ensiling is known to reduce the content of glycosides in the product to tolerable levels (Charavanapavan, 1944; Akinrele, 1964).

Generally, supplementation of cassava diets with high levels of sulphur amino acids, particularly cysteine and methionine, and iodine, largely eliminates the goitrogenic activity due to thiocyanate production.

Cassava peel is low in protein and high in ash percentage and may be used with high‐protein feedstuffs e.g. brewers’ grain and urea (Iyayi and Losel, 2004; Ubalua, 2007).

There is opportunity for the feed industry since goat is high yielding and can be sold at any time (due to increasing production and prises of goats) regardless of the season and festivities. The demand for goat meat by canteens, homes and hotels is increasing with some of these businesses killing a minimum of 2 goats per day for their cuisines.

THREATS

Inadequately processed cassava products may contain hydrogen cyanide, which is responsible for chronic toxicity when consumed by goats for prolonged periods.

Not much is known about the ability of the ruminant to digest cyanogenetic glycosides without deleterious effects.

Lack of technology to process, fortify peels (cassava and yam) and preserve feed during changing seasons (dry and wet)

There is too much reliance on the natural resource for feeding the goats in Nigeria and the animals are surviving pretty well with a little supplementation. This makes the rural based goat farmers reluctant to buy goat feed.

The large number of cattle herdsmen in south western Nigeria and the continuous encroachment into farmlands for grazing which has resulted into conflicts as well as loss of lives with limited supply of cows.

Due to the nature of the goat production system in Nigeria that is basically small‐scale, the commercial intention is not well engendered, as there is regular supply of the animal from northern Nigeria.

6.5 Overview of Feed Milling Industries in Nigeria

In Nigeria, commercial feed milling commenced in 1963 by Pfizer, today’s Livestock feed Plc.

In 1970 Ladokun Feeds was a franchise of Pfizer and later in 1976 was autonomous until

they wound up activities in the 90”s. Between 1980‐1983 with the implementation of the

“Operation Feed the Nation” originated by the Obasanjo administration (1977‐1979) it was

110

obvious that the country needed to expand feed production. The number of feed millers

grew to 303 as at 1983 with a combined installed capacity of 1039mt/hr. Feed production

rose from 640,000 metric tons in 1980 to 2.4 million metric tons in 1985. Within 3 years,

poultry population was at its peak from 12 million to 40 million commercial chickens. There

was strong collaboration in the early days with the establishment of – Commercial Feed‐

millers Association (COFAN), Industrial Feed Millers Association (IFAN) and the Poultry

Association of Nigeria (PAN). Since then there has been a constant decline in the poultry

population and consequently feed production. Since 2007, the general condition in which

animal feeds are produced, particularly those used for chickens and commercial fish

farming, in Nigeria has been described as unacceptable. Except for a few operators, most

feed millers25 are not performing up to expectation in terms of standard and quality26.

Nigeria is one of the countries where animal protein consumption per caput is still very low

being about 9.4 kg/caput/year (Egbunike, 1988; Osho and Asghar, 200427) without taking

account of fish and game meat consumed. Fish provides average of 22 per cent of the

protein intake in sub‐Saharan Africa with 35 per cent in Nigeria, 47% in Senegal, 62% in

Gambia and 63% in Sierra Leone28. Population and income growth are fuelling an on‐going

trend towards greater per capital consumption of animal protein in developing countries

including Nigeria, Ghana and others, said the report tagged “World Livestock 2011”29.

Every sector of the livestock industry is having serious setbacks mostly due to the escalating

prices of feeds that normally constitute 60‐80% of production costs depending on species.

Before 2002, Nigeria had depended almost exclusively on imported feed ingredients for the

production of compound feeds and with the overvalued "Naira" appeared to making some

headway in livestock production especially in the poultry sector which utilised about 90% of

compounded feeds produced in the country. With the economic situation and unregulated

feed‐mill sector in the country as well as overdependence on the importation of the major

constituents of livestock feeds, especially grains, many entrepreneurs in the livestock

industry that are unable to withstand the tough competition have fallen by the wayside.

6.6 Key feed ingredients used in Nigeria

Good energy sources for mixed animal feed are those that are rich in fermentable

carbohydrates and low in protein. The best example is molasses traditionally used as a

carrier for urea in ruminant feeding. Protein sources are mostly the oilseed cakes. Palm

oilseed cakes are produced in the southern part of Nigeria (Edo, Delta, Cross River, Imo and

Rivers States) and form the most abundant and least expensive oilseed especially palm

kernel cake available. It is however notorious for being gritty and unpalatable. Cottonseed

25www.nigeriagalleria.com/Agriculture_and_Agro‐Allied/Lifestock_Feeds.htm26www.allaboutfeed.net/.../Low‐performance‐of‐feed‐mills‐in‐Nigeria‐...27www.sbaer.uca.edu/research/allied/2004/international/business/pdf/14.pdf28www.punchng.com/business/industry/fish‐provides‐35‐of‐protein‐intake‐in‐Nigeria29www.thisdaylive.com/articles/nigeria‐other‐developing‐countries...

111

and groundnut cakes are also important although the latter had declined drastically about

three decades ago and is only coming up again with this spirit of looking inwards.

Combined energy and protein sources by‐products considered under this category are cereal and brewers' grains. Until the ban on wheat importation, wheat bran was the most important cereal bran in the country. However, brans from traditional grains (sorghum, millet, rice and maize) are growing rapidly in quantity. As regards brewers' grains, most of the 32 breweries originally produced wet grains that were available for the asking. As the usefulness of the grains in livestock feeding became increasingly clear, some of these breweries started to dry some of their grains for sale. These dried grains constitute only 5% of the total produced.

Unconventional Energy Sources

The plant products that have been used as alternative sources of energy in feed formulation include: wheat bran, wheat offal, rice bran, and rice husk In addition, biscuit waste, cassava chips, cassava waste, cassava sievate, cassava grits, cassava peels, and cocoa pod Husks have also been used. Recently at the University of Ibadan a new product called cassava grits has been produced, tested and patented. It is comparable to maize and being used in large‐scale commercial farms.

6.7 Commercial/Self Mix Feed Producers in Nigeria

From the twenty eight feed millers, Bellow (2008) reported best six (6) well established and reputable feed milling companies in the country as shown in the Table 29 below.

Table 29: List of Major Commercial Feed Millers in Nigeria

Company AVG/Month Per Annum Share %

Premier Feed Mill ‐ Top Feeds 11,000 130,000 13.0

Vital Feeds 8,500 102,000 10.2

Livestock Feeds 4,000 48,000 4.8

Boar Feeds 4,000 48,000 4.8

Animal Care Services Konsult (Nig) Ltd 4,000 48,000 4.8

Amo Byng 2,500 30,000 3.0

Regional Compounders 8,000 96,000 9.6

Toll Millers 25,000 300,000 30

On‐Farm/Self 16,470 198,000 19.8

TOTAL 83,000 1,000,000 100

Source: Bello (2008)

The total output of commercial feed millers is only about 50% while the remaining 50% is

produced without any regulatory mechanism in place. This can summarised that 50% is

produced by the regulated formal sector while the balance is produced by the unregulated

informal sector, though efforts are in top gear to putting in place a regulatory framework

the will oversee the entire feed‐mill operation in Nigeria through the National Animal

Nutrition Society in the country. Those other millers (Bendel Feed & Flour Mill, Bio‐

Ingredients, Life flour mills Nig Plc, and New Genesis Farms Food Mill Ltd) claimed presence

in the web, their functionality are yet to be ascertained.

112

The monitoring body for regulating feed production, the Standards Organisation of Nigeria (SON) in 2006 started an active program to monitor and standardize all feed operations in the country. This is important especially in view of the incidence of the outbreak of avian flu and then the controversial “swine flu” which both had implications for public health issues. No significant effects of the actions of SON have yet been felt in the industry.

At the end of a two‐day summit for stakeholders in the feed mill industry in 2010, participants observed that Nigeria is being used as a dumping ground for imported quality feed ingredients in the form of oil cakes, fish meal and meat meal, as well as feed additives such as premixes, vitamins, probiotics and enzymes. The stakeholders challenged SON to develop appropriate Feed Standards for Animals under Nigerian conditions as all premix and feed manufacturers must be HACCP and ISO complaint30.

There is a need for the re‐activation of COFAN and IFAN that used to be in existence to enable the industry co‐ordinate, regulate and also influence policy decisions as it relates to feed not only within the country but also in meeting international standards. Presently it is the Poultry Association of Nigeria (PAN) that plays an active role in such matters and they may not be the appropriate body to handle such issues. Government involvement and policies as it relates to feed and feed manufacturing are paramount to the success of the industry. Feed milling should be recognized as an agricultural enterprise and not as a manufacturing business. Streamlining and redefining all these bottlenecks will go a long way in giving the industry the impetus it needs for growth.

6.8 Products of some major Feed Mill companies

Livestock Feeds Plc

Livestock Feeds Plc is one of the leading feed mills in the country and it has two categories of products – finished products and 30% concentrates. The table below shows the lists of the various products of the company are producing. However, we were unable to confirm all the products in our visit to the company in November 2012.

Table 30: List of Livestock Feeds Plc Products ‐ Finished Feeds

Finished feeds

Chicks mash Cockerel starter

Growers mash Cockerel finisher

Layers mash Pig creep pellet

Hybrid breeder Pig weaner

Broiler / starter mash Pig fattener

Broiler / finisher mash Pig breeder

Super broiler / starter mash Mouse cubes

Super broiler / finisher mash Rabbit pellets

Broiler breeder Dairy cubes

Turkey starter mash Horse/pony cubes

Turkey grower Sheep / goat ration

Turkey finisher Beef cattle ration

30www.nias.gov.ng/?page=read&id=18

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Duck starter Dog / pet food

Duck finisher Grass cutter pellet

Table 31: List of Livestock Feeds Plc Products – 30% Concentrates

30% CONCENTRATES

Chicks concentrates

Growers concentrates

Layers concentrates

Hybrid breeder concentrates

Broiler starter concentrates

Broiler finisher concentrates

Broiler breeder concentrates

Premier Feed Mills

Premier Feed Mills manufactures under its trade name TOPFEEDS. It has a complete range of products covering all aspects of animal feed requirements in Nigeria and neighbouring countries.

Animal Care Services Konsult (Nig) Ltd

Animal Care Services Konsult (Nig) Ltd, is an indigenous Nigerian registered company in the business of poultry and aquaculture farming; and also providing comprehensive inputs for livestock farming with infrastructure in manufacture and laboratory services.

Boar Feeds Limited

Boar Feeds Limited, (formerly referred to as BOA Trading & Poultry Milling Company), was officially incorporated in Nigeria on the 24th of September 2003. The company was engaged in poultry farming and poultry feeds manufacturing in the mid‐1970s. Poultry remained their mainstay; till full‐scale poultry feeds Production Company was established.

6.9 GAP Analysis

Though the number of goats in the country has been on the increase in the country, it is still not enough to meet with the growing demand for goat meat as it is still more expensive than other popularly consumed sources of protein such as cattle, poultry, frozen Fish, etc. With the growing number of hotels and restaurants that serve goat meat, the demand will continue to be on the increase.

There is no market for the sales of cassava and peels. This can be explored by drying and packing these peels in bags (25Kg & 50Kg) and made available for regional and local feed‐mills in various South West States for either compounding of feed or sold as supplemental feed for goats and other live‐stocks. It can also be used for the development of new feeds for animals after analysing the nutritional components and its possible inclusion rate in various rations. The cassava and yam peels can help replace the carbohydrate source

114

(usually maize that is high sought after by various end users) in feed thereby reducing the cost of feed and eventual production cost of animals.

7. Conclusionsandrecommendations

7.1 Conclusions and Recommendations for peels in mushroom substrates

The opportunities in the use of cassava and yam peels for commercial production of mushroom is huge as it can be a good source of protein to meet up with the protein needs of Nigerian and as such effort should be made to explore this opportunities by creating more awareness for potential investors about the lucrative nature of the business venture (net profit figure of about N356.93 per Kg, which is about USD 2.38/Kg.) since healthy living is the order of the day and there is market. There is also the need to encourage more people to embrace the consumption of mushroom for health and nutritional purposes. There are no people involved in the sun drying and sales of cassava and yam peels to potential mushroom producers in the country making it a new business opportunity. Equally, there are no people involved in the sales of compounded substrate for mushroom production. The new businesses are quite attractive and the number of mushroom producers as well as awareness on mushroom production is increasing. Information on where commercial mushroom growers can source peels and ready‐to‐use substrate should be made available to commercial growers that are located in Lagos, Ibadan and Abeokuta. Cultivation of mushrooms using cassava peels could create additional income opportunities for cassava processors, mushroom producers (through increased yield) and rural entrepreneurs. As also reported by Graffham et al., (2000), training of cassava farmers and processors in the cultivation of mushrooms using cassava peels as potential sources of additional incomes for rural livelihoods is recommended.

7.2 Conclusions and Recommendations for peels in goats feed

The use of cassava peels in feeding of goats provides a quantifiable economic benefit to both cassava processors and goat farmers with an average annual income less than $2 a day considering the increasing price of maize as compared to cassava and yam waste which could be obtained at virtually no cost except for transport cost. Rural dwellers in areas where cassava and yam processing is a regular business should be trained to establish a business in sun drying and sales of peels (cassava and yam) in bags for feed millers and goats farmers. This innovation should be promoted among rural dwellers and other goat farmers so as to boost the level of production of goat for more goat meat as animal protein source. It is however recommended that potential feed producers may explore the option of fortification of cassava peels with protein, minerals, vitamins, and energy sources.

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APPENDICES

1. Acronyms

COFAN Commercial Feed‐millers Association

CRIN Cocoa Research Institute of Nigeria

EU European Union

FIIRO Federal Institute of Industrial Research, Oshodi

HQCF High Quality Cassava Flour

IFAN Industrial Feed Millers Association

NBS National Bureau of Statistics

NIHORT Nigerian Institute of Horticulture

PAN Poultry Association of Nigeria

SON Standard Organisation of Nigeria

SME Small – Medium Scale Enterprises

USD United State Dollars

VPU Village Processing Unit

WHO World Health Organisation

WP Work Package

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Regmi, A. (2002). Urbanization And Food Consumption. A USDA City study_aregmi@ers_usda.gov Sullivan, R., Smith, J. E. and Rowan, N. J. (2006). Medicinal Mushrooms and Cancer Therapy: translating a traditional practice into Western medicine. Perspectives in Biology and Medicine 49 (2): 159‐170. Taylor, J. W., Bowman, B., Berbee, M. L. and White, T. J. (1993). Fungal model organisms: phylogenetics of Saccharomyces, Aspergillus and Neurospora. Systematic Biology 42:440‐457. Tewe, O.O. and Egbunike, G.N. (1988). Utilisation of cassava in poultry and pig feeding. Proc. Workshop on "The Potential of Cassava as Livestock Feed in Africa", IITA, Ibadan, 1418 November 1988. International Institute of Tropical Agriculture, Ibadan, Nigeria. Uraih, N. and Izuagbe (1990). Non‐bacterial food‐borne diseases in Public health food industrial Micro, African J Biotech, 90‐91:218 Webb, E. C. and Mamabolo, M. J (2004). Production and reproduction characteristics of South African Indigenous goats in communal farming system South Africa J Anim Sci. 34:236‐239

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3. List of Respondents

Names Value chain actor Source of

spawn

Location Gender Telephone

Mushroom Farmer Abomey

Calavi,

Benin

Rep.

Ijegun, Lagos Male

Mushroom Farmer FIIRO Lagos Female

Researcher

(Deputy Director –

Biotechnology

Dept.)

FIIRO Lagos Female

Wet Fufu

Processor

Awowo

village

Female

Wet Fufu

Processor

Awowo

village

Female

Fufu & gari

Processor

Awowo

village

Female

Transporter

/Vehicle owner

Awowo

village

(other side)

Male

Yam farmer Awowo

village

(other side)

Male

Gari and Fufu

Processor

Osupori Female

Gari and Fufu

Processor

Osupori Female

Gari and Fufu

Processor

Osupori Female

Gari and Fufu

Processor

Osupori Female

Gari and Fufu

Processor

Osupori Male

Gari and Fufu

Processor

Osupori Male

Asst. Director,

District Extension

services, Oyo State

ADP

Saki Male

BES Saki West, Oyo

State ADP

Saki Male

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Names Value chain actor Source of

spawn

Location Gender Telephone

Extension Agent,

Oyo State ADP

Saki Male

Chairman, yam

dealer (Yam

Merchant)

Saki Male

President, All

Trader Association,

Oke –Ogun, Saki

(Yam Merchant)

Saki Male

Transporter/

Vehicle owner

Saki Male

Subject Matter

Specialist ‐ Yam

Ondo State

ADP

Male

Deputy Director –

Crop

Ondo State

ADP

Male

Zonal Director/

Yam desk officer

Ekiti, ADP Male

Zonal Extension

Officer, Ekiti ADP

Ikole ‐ Ekiti Male

BES, Ekiti ADP Male

SMS Fisheries Ikole ‐ Ekiti Male

SME Owner Ilero, Oyo

State

Male

MD, TFI Ososa, Ogun

State

Male

MD, MATNA Foods

Limited

Ogbese,

Akure

Male

Researcher, FIIRO Lagos Female

Asst. Director,

FIIRO

Lagos Male

Researcher ‐

Pasture Production

& Utilisation

Abeokuta Female

Researcher – Rural

Development

Abeokuta Female

Lecturer – Animal

Production &

Health

Abeokuta Male

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4. List of some Feed Milling Companies in Nigeria

Name and Addresses

Bendel Feed & Flour Mill Address: 1 Ogbetuo Avenue Off Boundary Road G.R.A. Benin, Edo State Phone: +234 52 2312803, 2318059

Bio‐Ingredients Limited Address: 23B Olanrewaju Street Oregun, P.O.Box 3825, Ikeja Lagos State Phone: +234 1 4931656, 4931657; Fax: +234 1 4931656‐7

Boar Feeds & Concentrates Address: 247 Ipaja Rd, Abekoko B/Stop, Iyana Ipaja, Lagos Phone: +234 1 7746305, 7744652, 4922649

Life Flour Mills Nig. Plc Address: 10A, Adetokunbo Ademola Street, Victoria Island, Lagos. Phone: +234 1 2611862, 2613671; Fax: +234 1 2616423 Email: [email protected]

Livestock Feeds PLC Manufacturer and exporter of animal feed additives, animal feed ingredients, cattle feed additives; cattle feed ingredients, chicken feed Address: 1, Henry Carr Street, P.M.B 21097, Ikeja, Lagos. Phone: +234 1 7413668, 7740210 Website: http://www.livestockfeedsplc.com

New Genesis Farms Food Mill Limited Address: Off Ijebu‐ode Road, Ijede Road, Itamaga Villa, Ijebu Ode, Ogun State. Phone: +234 37‐780275

Animal Care Services Konsult (Nig) Ltd Address: Iperu Road, Off Lagos‐Ibadan Expressway, Ogere ‐ Remo, Ogun State. Phone: 08022914061, 08055064171, 017909218. Email: info@animalcare‐ng.com, [email protected] Website: http://www.animalcare‐ng.com

Lagos Liaison Office: 8 Adamo Kabiawu St., Orile Agege, Lagos, Nigeria. Phone: 017733173 Email: [email protected] PREMIER FEEDS LIMTED – Brand TOP FEEDS Address: Ibadan, Oyo State

Yobe Flour & Feedmills Company Limited Address: Maiduguri Road, Potiskum, Yobe, Yobe State

Bollidon Feed Mills Address: New Road, Ijebu – Ode, Ogun State

Ijebu – Ode initiative on Poverty Reduction Address: Eriwe

Tol‐Hope Feed Mill Address: Ibadan

K & K Feed Mill Resources Address: Ibadan Road

Josphie Joseph Feed Mill

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Dofkad Maxi Farm Address: Oha Street, Ijebu – ode, Ogun State

Giwa Feed mill Address: Ibadan road, Ogun State

Robin Feed Mill Address: Ibadan Road, Ogun State

Koya Feed Mill Address: Farm Settlement, Ago – Iwoye, Ogun State

Aflon Feed Mill Address: Oke ‐ Aje

Ayodele Feed Mill Address: Olihoro, Ota, Ogun State

Surry J. Feed Mill Address: Ijebu – Igbo, Ogun State

Adeola Feed Mill Address: Ijebu – Igbo, Ogun State

Wakilu Feed Mill Address: Ijebu – Igbo, Ogun State

Efo Glory Feed Mill Address: Ijebu – Igbo, Ogun State

Taofeek Feed Mill Address: Ijebu – Igbo, Ogun State

Solab Feed Mill Address: Ijebu – Igbo, Ogun State

Choice Feed mill Address: Abeokuta

Covenant Feed Mill Address: Abeokuta

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Annex3:DetailedCountryReport‐Thailand1. Executivesummary

The existing cassava value chain in Thailand has been conducted in order to acquire the information of how value of cassava is managed after root harvesting and to understand the major physical losses and bio‐waste production and management along the value chains. In Thailand, cassava (Manihot esculenta Crantz) is considered as one of the most economically important crops with the annual root production of approximately 20‐25 million tons. Roots are not for direct consumption, but are supplied only to the industries, including dried chip and extracted starches. With respect to production capacity, processing and end‐users, the cassava value chain in Thailand can be classified into two sub‐valued chains: cassava chip (45% of total root production capacity of 100 tons of fresh roots/day); and, cassava starch (55% of total root production capacity of 850 tons of fresh roots/day). Chips are mainly for the export market (70% of total chip) and some for local uses in animal feed, pellet, bioethanol and citric acid production. Commercial cassava starch with various attributes is very attractive for a broad range of food and non‐food applications including paper, textile, pharmaceutical, building materials and adhesives. Furthermore, cassava starch is extensively utilized for a production of sweeteners and derivatives including glucose syrup, fructose syrup, sugar alcohols and organic acids. Around 35% of cassava starch is sold to the domestic market for modified starch, sago pearl, sweetener, Mono Sodium Glutamate (MSG) and lysine and paper industries and the rest is for export market.

In each cassava value chain, there are some physical losses, economic losses and wastes generated along the chain. Both value chains begin with the farmers who produce fresh roots to supply each chain. The major physical losses in this stage are losses of broken roots left in the field during harvesting and losses during transportation to processing area. Economic losses occur due to lower root quality. Wastes generated in cassava field are leaves and stems with low utilization. In chips, the main problem is physical losses of starch powder or dust generated during processing, storage and transportation. In the cassava starch value chain, wastes are mostly generated from cassava starch processing including dry peel (2.8% of root weight), wet peel (1.4% of root weight), wastewater (16.81m3/ton starch) and cassava pulp (1.4 ton/ton starch).

The reduction of physical losses, transformation of roots and bio‐waste into various forms for food, feed, and industrial raw materials are a positive approach to potentially improve the value of cassava which can benefit all actors involving in the value chain. In this work, some current and potential uses and product development of wastes from Thai cassava value chains have been investigated and their potential markets are summarized (Table 32‐34). The major wastes from cassava fields are leaves, rhizomes and stems, which are low utilized. Currently, there is the development on cassava leaf utilization. Cassava leaves with high protein contents are prepare in a dry form as dried cassava leaves for animal feed use to partially replace Leucaena leaf, exported soybean meal and fish meal, which are expensive. The market is potential in particular for the application of home‐mixing feed production, but there is a limitation on a large‐scale production to supply feed mills. After harvesting, some of stems are kept for next multiplication. Cassava farmers who live nearby the factories or electricity power plants sell the rest of stems to those factories, which use those as biomass fuel by burning. An attempt to improve more heating efficiency of rhizomes has developed by producing coal briquettes for food preparation.

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The major wastes from starch processing are cassava peels and pulps. In Thailand, there is a well‐developed practice of using cassava peels for growing straw mushrooms, but they are very perishable. The development of new processed products with extended shelf life can create more markets for cassava peel straw mushroom. Although, the straw mushroom has gained the highest market share in term of volume and value, there are some other high economic valued mushrooms that can be grown in growing bags. The development of using cassava peels as a media for growing bag mushrooms can significantly increase the market size of cassava peel mushrooms.

In Thailand, wet pulp is now employed in animal feeds due to a much higher price of cassava chips, a commonly used feed ingredient for energy source. However, the use of wet cassava pulp in animal feed is limited to farms nearby starch factories due to high moisture content and transportation cost. Some chip processors now apply their yards to dry wet pulp instead. The use of pulp in animal feed has very high potential as the market size of meat product continually increases, both domestic and export. This drives an increase in animal feed demand as well as feed ingredients. The uses of pulp in animal feed can be expanded by improvement of drying technology and development of animal feed formulas containing pulps (with more fibre and lower starch content, comparatively to dried chips).

Sugar‐based industries have been continuously growing in Thailand due to a growth in food markets as well as food chemical industries. Important ones are monosodium glutamate, lysine, lactic acid, citric acid and ethanol. The major raw materials for sugar production in Thailand are cane sugar and cassava starch‐based sugar. After starch extraction, the pulps still contain high starch contents that can be extracted in a form of starch or hydrolysed starch, i.e. sugar syrup. The use of pulp for making glucose syrup can be promoted by development of practical, cost‐effective processing technology as well as technical information on qualities and uses in downstream processing.

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Table 32 Wastes from Thai cassava value chains and their potential uses: Market segment and 5P.

Item Charcoal Animalfeedingredients Mushrooms Glucosesyrup MolassesanalogProteinsource Energysource

Wastes Rhizome Leaves Pulp/ peel Pulp/ peel Pulp/ peel Pulp/ peel

Market segment Food Animal feed Animal feed Food Food/Beverage Food additives

5P

Products Coal briquette Dried leaves Animal feed Mushroom Syrup Molasses

Price (Baht/kg) 12 7 15‐30 60‐65 17‐20 3

Place

Produced by

Sold to

‐ Farmers

‐ Villagers

‐ Retail store

‐ Wholesale

‐ Supermarket

‐ Farmers

‐ Villagers

‐ Middlemen or

directly to feed

producers

‐ wet by starch

factory

‐dried by

farmers/chip yard

‐ Feed mills

‐ Home mixing feed

producers

‐ Farmers

‐ Villagers

‐ Retail/Wholesale

‐ Supermarket

‐ Processed

‐ Sweetener

factories

‐ Food processors

‐ Beverage

‐ Retail

‐ Sweetener

Factories

‐ Fermentation

factories

Promotion ‐ Low price

‐ Convenient

package for

wholesale /retail

‐ Road show on

technical

application

‐ Use in other

animal feeds

‐ Cheaper price than

dried chips

‐ Road show on

technical application

‐ Vegetarian festival

‐ Advertisement on

health benefits of

mushroom

consumption

‐ Road show on

technical

information/

application

‐ Road show on

technical

information/

application

People ‐ Food restaurant

‐ Household

‐ Animal farmers ‐ Animal farmers ‐ Household

‐ Food restaurants

‐ Food processors

‐ Food factories

‐ Confectionery

‐ Beverage

‐ MSG/Lysine

‐ Organic acids

‐ Ethanol

Market entry

requirement

moisture ≤7‐8% protein ≥ 18%

cyanide < 100 ppm

(dwb)

starch ≥ 50 % (dwb)

cyanide < 100 ppm

(dwb)

Shape and size ≥ 70°Brix

≥ 50% by weight of

total sugar as invert

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Table 33 Wastes from Thai cassava value chains and their potential uses: Market gap.

Charcoal Animal feed ingredients Mushrooms Glucose syrup Molasses analog

Protein source Energy source


Market segment Food restaurant Animal feed Animal feed Food Food/Beverage Food additives

Products Coal briquette Dried leaves Fresh/dried pulp Mushroom Syrup Molasses

Market gap

‐Marketpenetrationinexistingmarkets

‐ Currently used briquette in households & restaurants

‐ Currently used Leucaena leaves in animal feed industry

‐ Currently used dried chips in animal feed industry

‐ Currently produce straw mushroom

‐ Currently produced from starch

‐ Currently used in food additives, ethanol, acid production

‐Marketdevelopment

Torrefied pellets for coal fired power plants, steel production, residential/ decentralized heating

‐ Use in other animal feeds ‐ Increase export volume of animal feed and feed ingredients

‐ Use in other animal feeds ‐ Increase export volume of animal feed and feed ingredients

‐ More processed mushroom products ‐ Expand to export market

‐ ‐ Use of molasses analog in other fermentation, e.g. succinic acid, higher alcohols

‐Productdevelopment

Torrefied pellets ‐ Animal feed formulas containing this ingredients for other animals

‐ Animal feed formulas containing this ingredients for other animals

‐ Processed mushroom products with extended shelf ‐life

‐ Derivatives of glucose, e.g. fructose, sorbitol from pulp‐based glucose

‐

‐ Diversification of products

‐ ‐ ‐ ‐ ‐ ‐

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Table 34 Wastes from Thai cassava value chains and their potential uses: Market entry strategy

Item Charcoal Animal feed ingredients Mushrooms Glucose syrup Molasses analog

Protein source Energy source


Market segment Food restaurant Animal feed Animal feed Food Food/Beverage Food additives

Products Coal briquette Dried leaves Fresh/dried pulp Mushroom Syrup Molasses

Entry strategy

‐ Technical application (Short term strategy)

‐ Product

accessibility in

many

supermarkets/

shops

‐ Technical data

for animal feed

application,

similar to what

have been

promoted for

Leucaena leaf

‐ Technical data for

animal feed

application with

modified formulas

to replace broken

rice and corn grains

for other animals

‐ Nutrition values

for mushroom

consumption

‐ Technical data on

equivalent

specification of

starch‐based and

pulp‐based syrup

‐ Technical data on

superior quality and

application of pulp‐

based molasses

analog for

fermentation

industry

‐ Technology (Long term strategy)

‐Improvement of

milling to

increase bulk

density

‐ Improvement of

drying to reduce

moisture content

‐ Technology

development for

drying to produce

at a higher

production

capacity

‐ Improvement of

drying process to

reduce moisture

content which is

beneficial for

storage and

transportation

‐Development of

using cassava

peels as growing

bags, which are

more applicable

to many types of

mushroom

‐ Technology

development for

producing pulp‐

based syrup with

equivalent

specification to

starch‐based syrup

‐ Technology

development for

pulp‐based molasses

analog for

fermentation

industry

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2. Introduction

Cassava is an important food security crop for approximately 500 million people, living in many countries around the world. The crop provides edible roots high in starch contents (around 80% dry basis), which are used directly for food consumption. Besides, in some regions such as Thailand, Vietnam, Nigeria and Ghana high starch roots are supplied to processors for chip, flour and starch production. Chip, flour and starch are mainly used as the intermediate products for making other consumable products. Important ones are food, beverage, seasonings, paper, textile, cosmetics and chemicals. Despite of having high starch contents on dry weight basis, fresh cassava roots have very high moisture content and are susceptible to physiological deterioration and spoilage by microorganism attack. The deterioration of perishable roots during post‐harvest is the major constraint for promoting cassava root utilization, for both direct consumption and for commercialization of processed cassava products. For direct consumption, fresh roots must be sold in the market within a few days after harvesting. Similarly, a good manufacturing practice for processing cassava roots recommends a conversion of roots delivered from the fields to processing areas within a few days. Failures to sell or process fresh roots within a few days can cause losses of values of fresh cassava roots. As physical losses occurred during post‐harvest causes a reduction in root quality, this has an implication on marketing of cassava, leading to price discounts and contributing to economic losses. In addition to price discounts, there can be further economic losses due to change in use, e.g. low valued, dried products instead of fresh roots. Alternatively, the reduction of post‐harvest losses can be obtained by transforming fresh roots to value added products. During root processing, bio‐waste is generally generated and leads to negative impact on environmental issue and higher production cost due to waste handling. If this bio‐waste can be converted into a higher valued product, this may positively alter the dynamics of cassava processing.

The reduction of post‐harvest losses and the transformation of roots and bio‐waste into various forms for food, feed, and industrial raw material has the potential to help improve food security, create additional value to the crop, generate income and employment to the community and promote socio‐economic sustainability of the livelihood. With the support of the European Commission through 7th Research Framework Programme, this project aims to reduce these losses which come in the three forms: (a) physical; (b) economic through discounting or processing into low value products and (c) bio‐wastes from cassava processing in order to enhance the role of this crop in food and income security. To achieve the project’s targets, the existing value chains of cassava have been evaluated in association with the situation of post‐harvest losses and bio‐waste, their causes and management.

The existing cassava value chain in Thailand has been conducted in order to acquire the information of how value of cassava is managed after root harvesting and to understand the major physical losses and bio‐waste production and management along the value chains. In Thailand cassava (Manihot esculenta Crantz) is considered as one of the most economically important crops. It is the third largest crop Thai crop by volume after sugarcane and rice with the annual root production of approximately 20‐25 million tons, accounting for 10% of the world production (230 million tons in 2010). Cassava is mostly grown in Northeastern and Eastern parts of the country (53% of total planted area), followed by the Central and Northern parts. The most intensive area of cassava cultivation is in Nakhon Ratchasima province, which accounts for 23% of total planted area. Despite being ranked as the third largest cassava

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producer after Nigeria and Indonesia, Thailand is recognized as the world largest exporter of cassava‐based products. Important ones are dried chip and extracted starch in various forms.

With respect to production capacity, processing and end‐users, the cassava value chain in Thailand can be classified into two sub‐valued chains: cassava chip (45% of total root production capacity of 100 tons of fresh roots/day); and, cassava starch (55% of total root production capacity of 850 tons of fresh roots/day). Chips are mainly for the export market (70% of total chip) and some for local uses in animal feed, pellet, bioethanol and citric acid production. Commercial cassava starch with various attributes is very attractive for a broad range of food and non‐food applications including paper, textile, pharmaceutical, building materials and adhesives. Furthermore, cassava starch is extensively utilized for a production of sweeteners and derivatives including glucose syrup, fructose syrup, sugar alcohols (e.g. sorbitol, mannitol) and organic acids (e.g. lactic acid, citric acid). Around 35% of cassava starch is sold to the domestic market for modified starch, sago pearl, sweetener, Mono Sodium Glutamate (MSG) and lysine and paper industries and the rest is for export market.

In each cassava value chain, there are some physical losses, economic losses and wastes generated along the chain. Both value chains begin with the farmers who produce fresh roots to supply each chain. The major physical losses in this stage are losses of broken roots left in the field during harvesting (<1 ton/ha) and losses during transportation to processing area. Economic losses occur due to lower root quality. Wastes generated in cassava field are leaves and stems with low utilization. Leaves are left in the field as organic fertilizer. Some attempts have been made to produce high protein cassava leaves or silage for animal use but there is the limitation for scaling up due to the need of intensive labours. The stems (20%) are used for next crop propagation and the rest is sold as biomass for burning.

In chips, the main problem is physical losses of starch powder or dust generated during processing, storage and transportation (1‐2% of chip). Wastes, i.e. dry peels are produced in some chip processors. In the cassava starch value chain, wastes are mostly generated from cassava starch processing including dry peel (2.8% of root weight), wet peel (1.4% of root weight), wastewater (16.81m3/ton starch) and cassava pulp (1.4 ton/ton starch). Peels are used for mushroom cultivation. The utilization of wastewater from starch processing has been well‐developed and most starch factories now implement biogas production system, which can help the factory save a lot of energy cost on starch drying. At present, the major waste problem of Thai cassava industry is cassava pulp. There are several researches that aim to develop uses of cassava pulp, which is currently used in the wet form for animal feed.

The reduction of physical losses, transformation of roots and bio‐waste into various forms for food, feed, and industrial raw materials are a positive approach to potentially improve the value of cassava which can benefit all actors involving in the value chain. As previously described, the major post‐harvest losses occurred in Thai cassava value chains are bio‐waste generating during cassava processing, in this report, the range of potential cassava waste utilization was evaluated both technically and market potentially. Some cassava bio‐waste utilizations have currently been implemented such as mushroom cultivation from cassava peels and animal feed production from cassava pulp. A general practice of these existing waste utilizations is presented with their advantages and disadvantages. Some of waste utilizations that are in the development stage such as pellet production from cassava pulp and high protein dried leave production from cassava plants are included to give a full picture of current bio‐

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waste management in Thai cassava value chain. In addition, the potential development of pulp utilization for starch and sugar production was also discussed and their uses were evaluated in comparison with other competitive products, i.e. sugars and molasses.

3. Methodology

Data were collected from both primary and secondary sources. The primary data was obtained by individual interviews including dried cassava leave producers, mushroom growers and sellers, animal farmers and sugar syrup production and users whereas the secondary data were collected from various sources as specified in the content.

4. Background

In Thailand cassava (Manihot esculenta Crantz) is considered as one of the most economically important crops. It is the third largest crop Thai crop by volume after sugarcane and rice with the annual root production of approximately 20‐25 million tons, accounting for 10% of the world production (230 million tons in 2010). Cassava is mostly grown in Northeastern and Eastern parts of the country (53% of total planted area), followed by the Central and Northern parts. The most intensive area of cassava cultivation is in Nakhon Ratchasima province, which accounts for 23% of total planted area. Despite being ranked as the third largest cassava producer after Nigeria and Indonesia, Thailand is recognized as the world largest exporter of cassava‐based products. Important ones are dried chip and extracted starch in various forms.

With respect to production capacity, processing and end‐users, cassava value chain in Thailand can be classified into two sub‐valued chains, i.e. cassava chip (45% of total roots, production capacity of 100 tons of fresh roots/day) and cassava starch (55% of total roots, production capacity of 850 tons of fresh roots/day). Chips are mainly for export market (70% of total chip) and some for local uses in animal feed, pellet, bioethanol and citric acid production. Commercial cassava starch with distinct attributes is very attractive for a broad range of food and non‐food applications including paper, textile, pharmaceutical, building materials and adhesives. Furthermore, cassava starch is extensively utilized for a production of sweeteners and derivatives including glucose syrup, fructose syrup, sugar alcohols (e.g. sorbitol, mannitol) and organic acids (e.g. lactic acid, citric acid). Around 35% of cassava starch is sold to domestic market for modified starch, sago pearl, sweetener, MSG and lysine and paper industry and the rest is for export market.

In each cassava value chain, there are some physical losses, economic losses and wastes generated along the chain. Both value chains begin with the farmers who produce fresh root to supply each chain. The major physical losses in this stage are losses of broken roots left in the field during harvesting (<1 ton/ha) and losses during transportation to processing area. Economic losses occur due to lower root quality. Wastes generated in cassava field are leaves and stems with low utilization. Leaves are left in the field as organic fertilizer. Some attempts have been made to produce high protein cassava leaves or silage for animal use but there is the limitation for scaling up. The stems (20%) are used for next crop propagation and the rest is sold as biomass.

In chips, the main problem is physical losses of starch powder or dust generated during processing, storage and transportation (1‐2% of chip). Wastes, i.e. dry peels are produced in some chip processors. In cassava starch value chain, wastes are mostly generated from cassava

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starch processing including dry peel (2.8% of root weight), wet peel (1.4% of root weight), wastewater (16.81m3/ton starch) and cassava pulp (1.4 ton/ton starch). Peels are used for mushroom cultivation. The utilization of wastewater from starch processing has been well developed and most starch factories now implement in biogas production system, which can help the factory save a lot of energy cost on starch drying. The other waste from starch process is cassava pulp which still contains very high starch contents, i.e. up to 70% dwb (Sriroth et al., 2000). Currently, wet pulp is used as the energy source in animal feed. Losses and wastes generated in the main stage of Thai cassava value chain are summarized as shown in Table 35.

Table 35. Summary of losses and wastes in the major stage of Thai cassava value chain.

Stage in value chain

Losses/ Waste Quantity

Cultivation Physical losses

‐ Broken roots left in the field <0.5 ton/ha

‐ Loss during transportation <0.05% of root weigh

Economic losses

‐ Low starch roots n.a.

‐ Spoiled roots rare

Wastes

‐ Leaves 1‐1.5 tons/Rai

‐ Stem 2‐3 tons/Rai

Chip processing

Physical losses

‐ Dust loss in process/storage (1‐2%)1

‐ Dust loss during transportation (1‐2%)1

Economic losses

‐ Low quality of chips n.a.

Wastes

‐ Dry peel n.a.

Starch processing

Physical losses

‐ Spoiled roots rare

‐ Damaged package during transportation 2‐3 tons/year

Wastes

‐ Dry peel 2.8% root weight

‐Wet peel 1.4% root weight

‐ Wastewater 16.8 m3/ton starch

‐ Solid pulp 1.4 ton/ton starch or 35% root weight

It is interesting to note that cassava roots produced in Thailand are supplied to the industries and the major post‐harvest loss is the bio‐waste. The amounts of waste generated during in each major stage of value chain are significantly greater than other losses, i.e. physical and economic losses. Therefore, the potential uses of the bio‐waste in each major stage of Thai cassava value chain are evaluated.

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5. Potentialforuseofcassavaleavesasproteinsupplementinanimalfeed

Fresh leaves are a waste that is produced in cassava field at the quantity around of 1‐1.5 tons/rai or 6.25 – 9.375 tons/ha (1 ha = 6.25 Rai). Typically, leaves are left in the field as the naturally composted organic fertilizer. Currently, there is a development of making high protein cassava leaves for animal feed uses. Figure 18 present the process of making dried leaves at a cottage scale. Leaves are collected from the field (Figure 18a and b) for free or 50 baht/rai (Figure 18a) and delivered to processing yards (Figure 18c). The stems of fresh leaves are removed and the leaves are then ground to pieces by locally made machine (Figure 18d). Ground leaves are dried on the cement or plastic floor for 1‐2 days and turned periodically (Figure 18e). It takes around 3 kg fresh leaves to gain 1 kg of dried leaves. Dried leaves can be sold at 5 baht/kg to the mill. At the mill, dried leaves are milled (Figure 18g) to increase the bulk density that can reduce the transportation cost. Milled, dried leaves (Figure 18h) are packed and sold at 7 baht/kg with 18% protein content. A premium product with protein content of 34‐38% can be produced by getting rid of the stem and petiole. The price of the premium product is up to 12 baht/kg. Although, leaves are a good source of protein, the amount of cyanide, a toxic compound, in leaves must be checked. With proper drying, the cyanide content in dried leaves is in the safe level (<10 ppm). Due to labour consuming, farmers prefer to produce silage instead by keeping ground wet leaves in plastic bags for a few weeks. The problem of silage production is the storage as the bag is easily damaged.

Effects of cassava leaf meals on immunological response and performance of dairy cows and weaned pigs were evaluated (Punthanara, 2009; Pueaksee, N. 2009). Personal communication reveals some animal health benefits of using cassava leave supplement including low rates of mastitis in dairy cows, reduction of ticks in cows (Boophilus caudatus) and dogs (Rhipicephalus sanguineus). High protein cassava leaves can be used as protein supplement in animal feed instead of Leucaena leaf meal (Figure 19), which is used in some animal feeds especially layer chicken and duck. Although Leucaena leaves contain xanthophylls that are benefit to the colour of egg yolk, they contain Mimosine, which is severely toxic to monogastric animals and less toxic to ruminants. Leucaena leaf meal usually contains 11‐16% protein content. Higher protein content up to 30% can be achieved in leaf meal with no stem. Table 36 shows comparative prices in Baht/kg of Leucaena and cassava leaves, suggesting potential market of cassava leaves as an alternative protein source to substitute Leucaena leaves in animal feed. The other protein sources in animal feed are soybean meal, fishmeal and defatted rice bran. Defatted soybean meal is by‐product obtained from oil extraction process. It contains around 42‐48% protein and is usually used in animal feed as a source of protein. However, more than 90% of soybean used in Thailand is imported especially from USA. Currently, due to the drought in USA, the price of soybean meal has been increased (Figure 20). In addition, the prices of fishmeal are projected to continuously increase (Figure 21) and feed industry has to look for other cheaper protein alternatives. When considering the unit price (Baht/kg protein) of various protein sources, leaf meal has a lower unit price as compared to fishmeal and soybean meal (Table 37).

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(a)

(b) (c)

(d)

(e) (f)

(g) (h) (i)

Figure 18: Production of high protein dried cassava leaves.

(a) (b)

Figure 19: (a) Leucaena and (b) its milled leaf meal.

Table 37: rice (baht/kg) of Leucaena and cassava leaves

Item Leucaena Cassava

Fresh leaves 0.8‐1.21, 1.0‐1.52 0‐0.052

Silage 1.5‐2.51, 1.5‐2.52 2.5‐3.02

Dried leaves 1.9‐3.51, 5.0‐6.02 5.02

Milled, dried leaves 4.0‐6.01, 6.0‐8.02 7.0‐8.0 2at 18% protein

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7.0‐7.603 at 14‐18% protein content content

Source: 1Chantarasiriet al. 2009; 2 Interviewed; 3http://jfk.tarad.com and

http://www.be2hand.com

Figure 20: Monthly price of soybean meal for feed industry.

Source: http://www.cpffeed.com/price.html

Figure 21: Yearly price of fishmeal used in Thai feed industry.

Source: Thai Feed Mill Association, 2010.

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Table 38 Comparison of cost of various protein sources used in animal feed.

Item Protein content

(% by weight)

Price (Baht/Kg) Unit price

(Baht/ kg Protein)

Fish meal 50 32 0.64

55 32 0.58

60 32 0.53

Soybean meal 45 22 0.49

Leucaena leaf meal 18 7 0.39

Cassava leaf meal 18 7 0.39

Market segment:

There is a potential use of dried cassava leaves as protein supplement in animal feed. Currently, many animal feed formulas for chicken, duck, swine and cattle contain Leucaena leaves as the protein source. Dried cassava leaves can simply replace Leucaena leaves in those formulas.

Market mix (5P):

Product ‐ Dried cassava leaves

Price ‐ 7 Baht/kg (at 18% protein content)

Place ‐ Produced at a household level by farmers or villagers

‐ Sold to the middlemen, who collect a mass volume and transfer to animal

feed producers or sold directly to animal feed producers, mostly home‐

mixing (more details of Thai feed industry are described in Section 8)

Promotion ‐ Technical bulletin of dried cassava leaf application in animal feed

‐ Road shows in feed exhibition, both local and international

‐ Market expansion into other animal feed production

People ‐ Home mixing feed producers for chicken, duck, swine and cattle.

Market entry requirement/ norms:

‐ Protein content: not less than 18%

‐ Cyanide content: not greater than 100 mg HCN equivalent/kg dry weight

SWOT analysis

Strength ‐ High protein content

‐ Locally produced, not imported

‐ Inexpensive energy cost by sun drying

‐ Can be produced at household level as woman job

Weakness ‐ Labour consuming

‐ Strongly weather‐dependent process

‐ Loss by wind due to low density of leaves

‐ High cost of leaf collection, unless labour cost is cheap in some areas

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‐ Inconsistent and insufficient quantity to supply to the large industry

Opportunity ‐ Large demand for protein source in animal feed

‐ Potential use as protein supplement to replace Leucaena leaf meal

‐ Price increase of imported soybean

‐ Improvement of animal health

‐ Suitable for small scale animal farms

Threat ‐ High labour cost

‐ Instability of weather due to global warming

‐ Cassava disease outbreak

Market gap

P Now: Leucaena leaves

M Now: Domestic use for a

production of animal feed for

chicken, duck, swine and cattle

New P: Dried cassava leaves to

replace or use with Leucaena

and other protein sources

New M: Domestic use for a

production feed of other animals

and increase of export market

Entry strategy

According to market gap, there is a current market of using green plant leaves as a source of

protein. To promote the use of dried cassava leaves, the important entry strategy could be:

‐ Technical data of using dried cassava leaves in feed formulas for each animal type and

age, similar to what have been promoted for Leucaena leaf

‐ Technology/ mechanical process development for collecting and drying leaves to

economically produce dried products at a higher production capacity

Conclusions

Cassava leaves are a by‐product from cassava fields. The leaves having high protein contents can be processed to dried products. Leaves from green plants such as Leucaena, hedge lucern (Desmanthus virgatus) and Water Hyacinth contain high protein and are currently used in many animal feeds. Similar to dried Leucaena leaf meals, dried cassava leaves can be potentially applied in animal feeds to replace or add together with Leucaena leaf meals. This new product of dried cassava leaves can then enter into the existing industry, i.e. animal feed with the need on technical application to promote its uses. Long‐term strategy involves process development for a large‐scale production with less labour costs.

Products (P)

Market (M

)

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6. Potential for use of cassava rhizomes as coal briquette

Cassava rhizomes (Figure 22) are a part of hard stem or rootstalk attached to storage roots that are left over in cassava field during root harvesting. Sometimes, they contaminate roots and are delivered to processing areas that is a burden to processors to remove them during processing. The amount of rhizome is approximately 7‐8% of root production, which accounts for the production of 1.5 tons rhizome/ha at root productivity of 20 tons/ha.

The utilization of these rhizomes had been developed by making coal briquette to replace wood charcoal. Initially, the rhizomes are burned in a drum kiln. The charcoal is then hammer‐milled to required particle size (10 mm) and mixed with some binders (i.e. cassava starch). The mixture is then extruded by a screw extruder in a shape of hollowed cylinder with 5 fins and the inner and outer diameter and the length of 1.75, 4 and 10 cm, respectively (Bussarakumvadee, 2004). Table 38 summarizes some important attributes of cassava coal briquette as fuel. Cassava coal briquette can be ignited within 2 min, giving low smoke and odour. Based on the interviewed data, the variable cost for making cassava coal briquettes is estimated around 3‐4 baht/kg which includes labour cost, energy cost, transportation cost, cassava starch cost and maintenance cost. The selling price of the coal is about 12 Baht/kg.

Other attempt of using cassava rhizomes and stems is to make energy source to replace other biomass such as perennial wood (Pattiya, 2011; Jongpluempiti and Tangchaichit, 2012a, b). Structural and compositional analysis reveals that cassava rhizomes are composed of 36% cellulose, 44% hemicelluloses and 24% lignin. They contain very low nitrogen and sulphur that is environmentally friendly for biofuel use. The rhizomes with high moisture content (50%) had inferior heating properties than the woods. However, when the moisture content of the rhizomes was reduced to 12%, the properties (heating value of 17.08 MJ/kg) were equivalent to wood samples with heating value of 17.78 MJ/kg (Jongpluempiti and Tangchaichit, 2012b). The cost of rhizomes is about 420‐500 baht/ton while wood chip (at 45% moisture content, wet basis delivered at the factory) and oil palm shell costs are about 1,200‐1,400 baht/ton and 2,700‐2,900 baht/ton, respectively (Personal communication). Yet, the latter has the highest heating value. The rhizomes and stems are used by burning as an energy source to supply a boiler, steam generator of factories or electricity power plant (Figure 23). The demand of biomass for energy supply continually increases (Table 39). The limitation of this use is high transportation cost due to bulky attributes of the rhizomes so they can be supplied only factories nearby cassava fields.

(a) (b) (c)

Figure 22 (a) cassava rhizomes, (b) collected in a mass scale and (c) coal briquette produced

from cassava rhizomes.

Source: Bussarakumvadeeet al. (2012)

138

Table 38: Fuel attributes of cassava coal briquette.

Property Cassava coal briquette

Heating value (Cal/g) 6,000‐6,300

Fixed carbon 25‐27

Moisture content (% by weight) 7‐8

Volatile matters (% by weight) 55‐57

Ash content (%) 10‐11

Density (g/cm3) 0.9‐1.0

Axial compression (kg/cm2) 4.1‐4.2

Radial compression (kg/cm2) 1.5‐1.7

Friability index 1.0‐1.3

% Heat efficiency 33‐34

Source: Bussarakumvadee et al. (2012)

(a) (b) (c)

Figure 23: Use of cassava rhizomes and stem for biomass burner in a starch factory or

electricity power plant; (a) collecting rhizomes and stems in the field, (b) transporting by a

small truck to (c) nearby factories.

Table 39: Current status of electricity power produced (unit in MW) from various sources

in Thailand.

Type No. of

producers

Production

capacity (MW)

Proposed Trading

Electricity (MW)

Commercial Energy 15 103.025 56.700

Coal 4 55.800 17.000

Natural gas 11 47.225 39.700

Renewable energy 1,342 6,723.572 5,640.831

Solar 708 2,982.812 2,889.516

Biogas 165 297.555 262.770

Biomass 339 3,063.593 2,131.393

‐ Palm kernel 14 90.978 73.178

139

‐ Physic nut residue 2 19.000 16.000

‐ Bagasse 51 882.300 324.300

‐ Rice husk 57 432.165 367.600

‐ Saw dust 1 0.600 0.600

‐ Coconut peat 1 6.000 5.000

‐ Corncob silk/corncob/shell 2 9.160 7.935

‐ Palm empty bunch 1 9.000 7.000

‐ Cassava pulp/rhizome 4 16.430 15.330

Wood wastes 204 1,581.960 1,298.450

Others 2 16.000 16.000

Garbage 50 191.049 176.302

Hydropower 15 23.352 22.933

Wind power 65 165.211 157.917

Total 1,357 6,826.597 5,697.531

Source: Electricity Generating Authority of Thailand, Data March 2012

Market segment:

There is a potential use of rhizomes collected from cassava fields as energy source in a form of biomass residues for burning or coal briquette. Cassava rhizomes can serve as biomass feedstock for burning to produce heat and steam for factories and electricity for power plants. The rhizomes can be processed to coal briquettes that are used widely in food sectors.

Market mix (5P):

Product ‐ Biomass residues/ Coal briquette

Price ‐ 420‐500 Baht/ton for rhizomes

‐ 12 Baht/kg for coal briquette

Place ‐ Rhizomes can be collected by farmers and sold directly to the factories or

power plants.

‐ Coal briquette can be produced at a household level or medium scale

production by farmers or villagers and sold to the middlemen, who collect a

mass volume and transport to food restaurants or sold directly as retails for

household uses in food shops or supermarkets.

Promotion ‐ Low price

‐ Convenient package for wholesale /retail

People ‐ Food restaurants

‐ Household uses


‐ Moisture content for coal briquette not greater than 7‐8%

SWOT analysis

Strength ‐ Rhizomes have good quality for environmentally friendly biofuel uses

140

‐Rhizomes are locally produced in a large scale so can be collected in a

massive amount

‐ Rhizomes have relatively low price compared to other biomass

‐ Coal briquette can be produced at a small scale

Weakness ‐ High moisture content of rhizomes for burning, need to reduce the moisture

content for better heating capacity

‐ Bulk,difficultfortransportation‐ Usedinlimitedareasforelectricity/energyplants

Opportunity ‐ An increase demand of biomass residues for electricity/ energy

source

Threat ‐ High competitiveness of other biomass

‐ Inconsistent of supply due to less cassava cultivation, e.g. cassava disease

outbreak

‐ High labour cost

Market gap

P Now: Biomass and sawdust

briquette/ charcoal

M Now:

‐ Factories, power plants for rhizomes

‐ Domestic use of coal briquette for

food restaurants, household

consumption

New P: Cassava briquette

New M: Torrefied (e.g., dried and

heated) pellets for coal fired power

plants, steel production,

residential/decentralized heating

Entry strategy

According to market gap, there is a great potential for cassava rhizomes and coal briquette to share a certain selling volume in existing markets of energy supply. To promote the use of cassava rhizomes and coal briquettes, the important entry strategy could be

‐ Effective management for collecting and transporting the rhizomes to factories or coal processors

‐ Be able to supply of cassava coal briquette for both wholesale and retails in a suitable package that is convenient for transportation

Products (P)

Market (M

)

141

‐ Technology/ mechanical process development to reduce the moisture content of rhizomes for direct burning

Conclusions

Cassava rhizomes are a by‐product from cassava fields. The rhizomes are good biomass residues for generating energy, either in a native form or as processed coal briquette. The difficulties of using rhizomes for burning are a laborious step of collecting rhizomes, their high moisture contents and very bulky. These problems can be overcome by converting the rhizomes to coal briquette with simple technology.

7. Potential for use of peels in substrates for growing mushrooms

In Thailand, there are different kinds of mushroom commercially cultivated including straw mushroom, Sajor‐caju mushroom, oyster mushroom, abalone mushroom, Jew’s ears mushroom and Shitake mushroom (Figure 24). The most expensive mushroom is Shiitake mushroom, which is mostly produced (>99% of total production) in Chiang Mai province in Northern part of Thailand. Nevertheless, straw mushroom and Sajor‐caju mushroom are cultivated the greatest by most farmers (>2,000 households) (Table 6 and 7). The market size of straw mushroom is the largest in term of produced volume and value, followed by Sajor‐caju and Shitake mushroom, for volume and value, respectively (Figure 25).

In general, there are two classes of cultivated mushrooms, i.e. those that prefer to grow on compost and those that prefer to grow on woody materials. Most of commercially grown mushrooms in Thailand are those prefer to grow on woody materials, i.e. sawdust in growing bags, which are Sajor‐caju mushroom, abalone mushroom, Jew’s ears mushroom and Shiitake mushroom. Only straw mushrooms, i.e. Agaricus species are grown on compost.

Straw mushroom Sajor‐caju mushroom Abalone mushroom

Jew’s ears mushroom Shiitake mushroom Figure 24: Appearance of various commercially grown mushrooms in Thailand.

142

Table 40: Mushroom production in Thailand in 2011/2012.

Information Straw

mushroom Sajor‐caju mushroom

Abalone mushroom

Jew’s ears mushroom

Shiitake mushroom

No. of households involved in production

2,851 2,132 26 699 155

No. of province 34 42 3 5 4

Cultivation area (rai)

10,465 108,908 36 801 50,164

Harvested area (rai)

8,703 123,162 16 243 43,190

Production (kg) 8,283,181 7,231,115 97,757 1,425,437 2,810,250

Source: Information Center, Department of Agricultural Extension.

Table 41: Selling price of various mushrooms in Thailand during 2000‐2012.

Year Type of Mushroom (baht/kg)

Straw

Mushroom

Sajor‐caju

Mushroom

Abalone

Mushroom

Jew's Ears

Mushroom

Shiitake

mushroom

2000 47.35 25.94 40.00 n.a. n.a.

2001 44.10 27.02 n.a. 15.53 n.a.

2002 40.34 19.86 n.a. 18.72 n.a.

2003 44.23 18.11 27.17 19.87 110

2004 42.12 18.39 30.00 17.88 120

2005 43.58 24.22 28.42 22.84 128

2006 45.05 27.48 38.20 26.48 130

2007 44.56 29.25 32.10 29.57 131

2008 51.40 34.78 36.52 29.26 142

2009 53.11 34.55 53.93 26.93 137

2010 53.03 34.91 58.08 27.91 144

2011 60.95 38.32 65.69 29.18 156

20121 63.77 42.93 80.00 30.10 164

Source: Office Agricultural Economics; 1 Price is updated until September 2012.

143

(a)

(b)

Figure 25: Market sizes, in (a) volume (unit: 1,000 kg) and (b) value (unit: million

Baht) of major mushrooms cultivated in Thailand in 2011.

Source: Office Agricultural Economics (OAE)

In Thailand, straw mushrooms are typically grown on compost, i.e. rice straw on the ground as

a pile. The use of cassava peel for straw mushroom cultivation has already been practiced and

the step of straw mushroom cultivation is illustrated in Figure 26. The peels are first watered

to moist (Figure 26a). As straw mushrooms are grown on the ground, it is necessary to select

the area with no flooding and good soil quality, i.e. no insects, no residues of chemicals,

144

pesticides or herbicides and no weeds. The soil is ploughed to fine particles and is levelled to

smooth surface (Figure 26b). Moist peels are pressed into block moulds to make a stack

(Figure 26c); each plot consists of 15 stacks of pressed, moist peels. Chemical and organic

fertilizers are applied around each pile and the spawn is then spread over with re‐watering

(Figure 26d). The woody trellis is built over each pile (Figure 26e) to support plastic sheets and

rice straws that cover on the top of stacks (Figure 26f). This helps control the humidity and

temperature inside. Subsequently, the mushroom has fully colonized on the compost as seen

by white strings of fungus mycelium (Figure 26g). The mycelium develops into thicker strings

called rhizomorphs. At the pinning step, small, pin‐like structures known as primordia begin to

grow from rhizomorphs and then start forming the fruiting bodies. Normally, it takes about 5

days to start fruiting (Figure 26h). After around 8‐10 days, straw mushrooms can be harvested

as they reach maturity to full mushroom (Figure 26i) and around 5‐6 kg of straw mushroom is

harvested from one plot. Flushing can be done to promote another harvest that can be

achieved 5 days later for 3‐5 kg. The residues of cassava peel compost are used as fertilizers

(Figure 26j).

(a) Watering of cassava peel (b) Soil preparation

(c) Block mould to make a pile of cassava

peel

(d) Application of fertilizer and spawn

(e) Woody trellis (f) Covering with plastic sheets and rice

straw

145

(g) White strings of fungus mycelium (h) Fruiting at day 5

(i) Harvesting at day 8‐10 (j) cassava peel residues after harvesting

Figure 26: Cultivation of straw mushrooms on rice straw compost as a pile on the ground.

Based on farmer’s information, the production cost includes cassava peels that are sold at 150 baht/ton, chemical fertilizer and mushroom spawn (10 baht/1 unit, 2 units per row). By collecting the fruits from two flushing (5‐6 kg and 3‐5 kg for each plot) and selling at a wholesale price, farmers can earn 400 baht/ton with a production cost only 60 baht/ton.

In addition, straw mushrooms are successfully grown on cassava peel compost in a cropping house by Nongwah Economic Community, located in Chachoengsao province. Figure 27 illustrates the process of cultivating straw mushrooms in a cropping house (5x8 m) (Figure 27a) with shelves (4 shelves with 1.5mx7mx0.5m per row, 2 rows/cropping house; Figure 26b). The process includes

Day 1 (Figure 27c)

Preparedriedcassavapeellayeronthegrowingshelvesandwatertomoistthepeel.

Mixricebran,cowmanure,urea,fertilizer,lime,gypsum,andmineralsupplementtogether.

Spreadthemixtureoverdriedcassavapeel. Closethehouseandleaveitfor3days

Day 4

Waterthematerialoneveryshelf Steamthecroppinghousewiththeboiler(Figure27d)at60°Cfor3hours.

Day 5

Mixmushroomspawns(6packs)with0.5kgriceflourand0.5kgnutrientsupplement(Figure27e).Thismixturecanbeusedfor1shelf.

146

Spreadoverthegrowingmaterials(Figure27f). Completeall8shelves. Applythewaterthoroughly(Figure27g)andclosethecroppinghousefor3days

(Figure27h).

Day 9

Thehousewillbeleftopenforairventilation. Re‐wateroverthesurfaceandcontrolthetemperaturetobe28‐32°C.Alwayscheck

themoisturecontentandwaitfor3moredays

Day 12‐13

Thefungusmyceliumofmushroomisformed(Figure27i)andunderwenttopinningstepofwhichsmall,pin‐likewhitespotsbegintogrowandformthefruitingbodies(Figure27j).

Theenvironmentinsidethecroppinghousemustbecontrolledtothepropertemperatureof32‐34°C,aswellasappropriatehumidity.

Day 15‐30

Mushroomisreadyforharvestingandlastfor15days(Figure27k).Theharvestedmushroomsarethengradedbasedonsizeandshapeforsellingwiththepricebetween50‐65baht/kg(Figure27l).Table6istheestimationofincomeforstrawmushroomgrowersperyear.

(a) (b) (c)

(d) (e) (f)

147

(g) (h) (i)

(j) (k) (l)

Figure 27: Mushroom cultivation in a cropping house by using cassava peel.

Source: Nongwah Economic Community

Table 42 is a list and price of raw material including cassava peels for straw mushroom cultivation in a cropping house. The production cost per flush is estimated around 5,000 Baht. The profit from one flush is around 7,000 Baht. At the production capacity around 8‐10 flush per year, farmers can earn the profit up to 70,000 Baht/ year. The extra‐income can be obtained by selling the spent flush. Table 9 summarizes the estimation of income from mushroom cultivation by using cassava peels.

Table 42: Raw material and price of straw mushroom cultivation in a cropping house by

Nongwah Economic Community.

Item Quantity (unit) Price (baht/unit)

Total cost (baht)

Cassava peel 5 tons 400 2,000

Rice bran 15 kg 10 150

Dried cow manure 4 sacks 30 120

Urea fertilizer 3 kg 25 75

Chemical fertilizer 15‐15‐15 3 kg 25 75

Lime (calcium hydroxide) 1 pack (10 kg) 30 30

Gypsum 3 kg 10 30

Cow manure silage 1 pack (5 kg) 80 80

Mushroom spawn 48 packs 10 480

Nutrient supplement 4 packs 20 80

Rice flour 4 packs 20 80

Depreciation cost 1 cycle 1,000 1,000

Fuel and other costs 1 cycle 800 800

Total cost 5,000


Table 43: Estimation of income from mushroom cultivation by using cassava peels.

Item Baht

1. ‐ Mushroom production of 200 kg/flush ‐ Selling price at 60 baht/kg

12,000

2. Production cost per flush 5,000

3. Profit per flush 7,000

4. Total production of 8‐10 flushes per year 56,000‐70,000

148

5. Selling of spent substrate 1,000 baht/flush 8,000‐10,000

6. Net income 64,000‐80,000


In Thailand, farmers sometime use other raw materials for growing mushrooms. Mostly used ones are rice straw and sawdust. The latter is most preferred organic material for mushroom growing bags that are not practiced for straw mushrooms. The price of rice straw is approximate 15‐20 baht/18‐20 kg, excluding the shipping cost. The sawdust is more expensive, varying from 1,500‐2,000 baht/ton.

Market segment:

There is a current use of cassava peels for growing mushroom, i.e. straw mushroom that has the highest market share. The mushrooms produced are supplied only to the food sectors.

Market mix (5P):

Product ‐ Straw mushroom from cassava peels

Price ‐ 60‐65 Baht/kg of straw mushroom, depending on grade

Place ‐ Straw mushrooms are produced by farmers, at a household level or at a

medium scale by a community/ cooperatives, who buy cassava peels from starch

factories.

‐ The straw mushrooms are not sold directly by farmers, but are sold to the

middlemen who collect from individual farmers and sell to wholesale or retail in

fresh markets or supermarkets. They also sell to large restaurants and to

mushroom processors.

Promotion ‐ Advertisement on nutrition values of mushroom and benefits from straw

mushroom consumption

‐ Continue and promote the vegetarian festival

‐ Development of export market with high quality products

People ‐ Food restaurants

‐ Household uses

Food restaurant

Local middlemen

Food processors

Farmers Household

Export market

RetailWholesale

149


‐ Shape, size and freshness, according to different grades.

SWOT analysis

Strength ‐ Cassava peels are cheaper raw materials and available throughout the year.

‐ Can be produced at a small scale as woman job with good returns

‐ No chemicals such as pesticide, insecticide and herbicide as in rice straw which

can inhibit mushroom growth

‐ Less weather dependent when cultivating in a cropping house.

‐ No heat treatment required for pile cultivation

‐ Low investment for pile cultivation

Weakness ‐ Need time to compost the peel

‐ Straw mushroom cannot be stored, they are higher perishable. Therefore,

the market is limited only to nearby regions within 200 km distance.

Opportunity ‐ Increasing of market demand due to a trend of vegetarian in Thailand

‐ Increase of consumer’s need for healthy food

Threat ‐ High price and demand of other mushrooms

‐ Sometimes farmers have to buy cassava peels from middlemen at a higher

price.

‐ Contaminationofothermicroorganismsinsoilsforpilecultivation‐ Floodingforpilecultivation‐ Mushroomcultivationingrowingbagsismorepreferredduetoeaseofhandling.

Market gap

P Now: Straw mushroom

M Now:

‐ Food restaurants

‐ Household

‐ Food processors

New P: Processed straw

mushrooms with extended

shelf life for export market

New M:

‐ Development of export markets

as fresh or processed mushroom

‐ Development of using cassava

peels for other mushrooms

grown in growing bags

Products (P)

Market (M

)

150

Entry strategy

Straw mushrooms grown from cassava peels have a good quality similar to products obtained from other growing media. There is no problem to sell straw mushrooms from cassava media in the current market. The straw mushrooms are mainly sold in a form of fresh products due to their high perishability. To create more markets of straw mushroom consumption, it is necessary to develop new processed products with extended shelf life. The products can be distributed widely in export markets. In order to promote more uses of cassava peels in mushroom production, there should be the development on application of cassava peels as growing bags, which are more applicable to many mushroom types.

Conclusions

Cassava peels are currently used for straw mushroom cultivation as a pile or cropping house. The straw mushrooms produced from cassava media have good qualities comparable to those grown from other medium. Farmers prefer to use cassava peels, as the price is cheaper. The market of straw mushroom can increase by a promotion of vegetarian campaign. In addition, consumers concern more about health so distributing the information of nutrition values of straw mushrooms is an effective tool to promote straw mushroom consumption. Yet, the straw mushroom is perishable and cannot be distributed far away from production areas, the market is limited. The development of processed mushrooms with extended shelf life can significantly promote the market. In order to promote the use of cassava peels in mushroom production, the technology of making mushroom growing bags from cassava peels is of great interest.

8. Potential for use of peels and pulps in animal feed

The livestock production in Thailand is presented in Table 10. By a production scale as numbers of head count, chicken production is the largest, followed by duck, pig, beef cattle and dairy cattle.There is also a farm production for shrimp and fish. The animal farms are distributed throughout the country (Figure 28). Poultry and swine are mostly raised up in the Central areas of Thailand while dairy farms are located in the North Eastern part of Thailand. The animal production in Thailand during the last decade (2002‐2011) has significantly increased (Figure 29) the animal production increase during the last decade was highest for goat (140%), followed by dairy cattle (56%), swine (39%), chicken (38%) and duck (29%). Yet the volume of goat production in Thailand is still small comparatively to other livestock. Among aquaculture, shrimp has greater production increase (133%) than fish (58%) during the last decade. With an increase in animal production, the animal feed production in Thailand also increased during the last decade by approximately 50% (Figure 29). More details on feed demand, numbers of animals and animal price with their annual growth rates, in average, of major animals including broiler chicken, layer chicken, duck, swine, dairy cattle, shrimp and fish during the last two decades (1994‐2012) are illustrated in Figure 30‐36. Interestingly, the production of broiler chicken dramatically decreased in 2004 due to bird flu outbreak, and increased later in 2005 (Figure 30). Similar trends were also observed for other poultries including layer chicken (Figure 31) and duck (Figure 32). A closer analysis for animal and animal feed production of major animals in Figure 30‐36 reveals that the production of chicken has the highest average annual growth rate (7.26%), followed by pig (6.05%). This also results in an increase in feed production with the average annual growth rate of 5.02 and 3.29% for chicken and pig feed, respectively (Table 44). The total feed production in Thailand in 2012 is reported to be around 15 million

151

tons. The largest segment is chicken feed that accounts up to 52% (35 and 17% for broiler chicken and layer chicken, respectively; Figure 37), followed by pig feed (31% of total feed production). The average annual growth rate of shrimp production is greater than that of fish, but not much difference in the average annual growth rate of feed production. The market share of shrimp and fish feed is about 6 and 4% of total feed production, respectively (Figure 37).

152

Table 44: Total production of commercial animals produced (x 103 heads) in Thailand during 2002‐2012.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chicken (in Jan) 228,760 252,719 179,739 254,204 184,327 283,126 235,600 281,672 266,034 316,536 n.a.

Chicken (in Dec)1 914,589 989,400 742,224 706,000 895,050 848,770 960,570 980,270

1,022,410

1,126,920

1,205,030

Duck 25,034 23,800 15,649 21,540 20,844 24,953 22,723 27,565 29,233 32,179 36,695

Swine 6,989 7,816 6,286 8,175 7,154 9,300 7,741 8,538 8,347 9,682 10,979

Dairy cattle 358 380 408 479 413 490 470 484 530 561 578

Beef cattle 5,550 5,916 6,668 7,796 8,036 8,848 9,112 8,595 6,427 6,583 n.a.

Buffalo 1,617 1,633 1,494 1,625 1,352 1,578 1,360 1,389 1,191 1,234 n.a.

Goat 178 214 250 338 324 445 374 384 380 428 n.a.

Lamb 39 43 48 51 51 51 44 40 43 52 n.a.

Shrimp (tons) 215,000 280,000 320,000 300,000 387,000 550,000 550,000 450,000 450,000 500,000 600,000

Fish (tons) n.a. n.a. 237,000 268,000 230,400 341,250 341,250 330,000 340,000 357,000 374,850

Source: Information and Statistics Group, Information Technology Center, Department of Livestock Development; 1 Thai Feed Mill Association

153

Figure 28: Commercial livestock production (as numbers of heads) in Thailand in 2011

as presented by province. The intensity of green colour represents the level of

cassava production in Thailand and C = Cow, S = Swine, P = Poultry.

Source: This graph is created based on the information from Information and Statistics

Group, Information Technology Center, Department of Livestock Development.

154

Figure 29: Numbers of major animals and animal feed production in Thailand during

2002‐2012.

Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d d

eman

d (M

illio

n to

ns)

0

1

2

3

4

5

6A

nim

al p

rice

(Ba

th/k

g)

0

5

10

15

20

25

30

35

40

45

No.

of a

nim

al (

Mill

ion

he

ads)

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

Feed demand Animal price at farm gateNo. of animal

Figure 30: Numbers of animals, feed demand and animal price at farm gate for Thai

broiler chicken during 1995‐2011.

Source: Thai Feed Mill Association and Information and Statistics Group, Information

Technology Center, Department of Livestock Development

Years

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Feed

pro

duc

tion (m

illio

n to

ns)

0

2

4

6

8

10

12

14

16

No.

of a

nim

al (

millio

n heads)

0

1

2

10

20

30

40

No.

of a

qua

cultu

re (m

iilio

n to

ns)

.1

.2

.3

.4

.5

.6

.7

Feed productionChicken(X103)DuckSwineDairy cattleShrimpFish

Bird Flu

Outbreak Hamburger

Crisis

155

Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fe

ed d

eman

d (M

illio

n to

ns)

0.0

.5

1.0

1.5

2.0

2.5

3.0

Eg

g p

rice

(Bat

h/1

00

egg

s)

0

50

100

150

200

250

300

No

. of a

nim

al (

Mill

ion

he

ads)

0

10

20

30

40

50

Feed demand Egg price at farm gateNo. of animal


layer chicken during 1995‐2011.



Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d de

man

d (M

illio

n to

ns)

0.0

.5

1.0

1.5

2.0

2.5

3.0A

nim

al p

rice

(Bat

h/kg

)

0

5

10

15

20

25

30

35

40

45

50

55

60

No.

of a

nim

al (

Mill

ion

head

s)

0

5

10

15

20

25

30

35

Feed demandAnimal price at farm gateNo. of animal


duck during 1995‐2011.


156


Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d de

man

d (M

illio

n to

ns)

0

1

2

3

4

5

6

Ani

mal

pri

ce (

Bat

h/kg

)

0

10

20

30

40

50

60

70

No.

of a

nim

al (

Mill

ion

head

s)

0

2

4

6

8

10

12

14

Feed demand Animal price at farm gateNo. of animal


swine during 1995‐2011.



Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d de

ma

nd (

Mill

ion

ton

s)

0.0

.2

.4

.6

.8

Ani

mal

pric

e (B

ath/

kg)

0

2

4

6

8

10

12

14

16

18N

o. o

f an

imal

(M

illio

n he

ads)

0.0

.1

.2

.3

.4

.5

.6

Feed demandAnimal price at farm gateNo. of animal


dairy cattle during 1995‐2011.


157


Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d d

eman

d (M

illio

n to

ns)

0.0

.2

.4

.6

.8

1.0

Ani

mal

pric

e (B

ath/

kg)

0

50

100

150

200

250

300

No.

of a

nim

al (

Mill

ion

tons

)

0.00

.05

.10

.15

.20

.25

.30

.35

.40

.45

.50

.55

.60

Feed demandJumbo Tiger prawn price Whiteleg shrimp price No.of animal


shrimp during 1995‐2011.



Years

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fee

d de

man

d (M

illio

n to

ns)

0.0

.1

.2

.3

.4

.5

.6

.7

Ani

mal

pric

e (B

ath/

kg)

0

10

20

30

40

50

60

No.

of a

nim

al (

Mill

ion

ton

s)

0.00

.05

.10

.15

.20

.25

.30

.35

.40

.45

.50

.55

.60

Feed demandWalking Catfish price at farm gateNile tilapia price at farm gate No.of animal


fish during 1995‐2011.

158



Table 45: Annual growth rate (% in average) of numbers of animals, feed production, and

animal price at farm gate during 2002‐2012.

Average annual growth rate (%)

Number of animals1 Feed production2 Animal price at farm gate2

Chicken 7.26 (3.662) 5.02 3.3

Duck 5.75 0.32 2.9

Swine 6.05 3.29 4.3

Dairy cattle 5.29 0.43 3.3

Shrimp 12.23 0.69 ‐2.6

Fish 7.11 0.44 4.7

Source: 1 Information and Statistics Group, Information Technology Center, Department of

Livestock Development; 2 Thai Feed Mill Association

Figure 37 Feed production (unit in Tons) in Thailand in 2012 according to types of

animals. The total feed production was 15,224,766 tons.

Source: Thai Feed Mill Association, 2012.

In Thailand, there are two major types of feed manufacturers, i.e. feed mills and home mixing. Around 90% of total feed are produced by feed mills and the rest by home mixing (Appendix Table 8). The production capacities of Thai feed mills are various, ranging from less than 500 tons/month up to 300,000 tons/month. Approximately 90% of total feed produced is from

159

feed mills with the production capacity greater than 10,000 tons/month or 120,000 tons/ year. Around 94% of feed produced is for domestic consumption. It is interesting to note that the two largest feed manufacturers in Thailand, i.e. Charoen Pokphand Food Public Co., Ltd. and Betagro group (having the total market share around 45‐50% of total feed production) operate this business as a complete value chain. They produce animal feed, which is used in their own farms and the animals raised in their farms are then processed to meat products. Thailand is, in fact, not a large exporter of animal feed, but is a major exporter of meat products especially chicken and shrimp. Figure 38 illustrates export volume and price of important meat products including frozen and processed products. Chicken meat products have the largest export volume, followed by shrimp and pork. Thailand is ranked as the 9th for chicken meat producers, but as the 4th for chicken meat product exporter in the world market (Figure 39). Among all livestock, chicken has the highest production volume and is the significant export product. The structure of chicken production in Thailand is illustrated as in Figure 40.

An increase in export market of meat produces can be another factor that drives an increase in animal feed production.

The market of animal feed production in Thailand is forecasted to continually increase due to many positive factors that promote more demand for meat products including

‐ Expansion of livestock sectors with improved farm management, i.e. systematic production, standard process control and disease outbreak control.

‐ Greater number of population and higher income with more purchasing power

‐ Rapid growth for fast food, food chain and ready meal into many districts and provinces nationwide. Consumers prefer convenience and are willing to pay higher prices for processed meat products with good hygiene and good quality.

‐ Price control policy of processed food and ready meal in food shops, announced by the government in order to stabilize Thai standard living cost. Consumers therefore still have the power to buy and consume meat products.

‐ Export markets for meat produces in EU tend to expand. EU has cancelled the policy of banning chicken meat products imported from Thailand; therefore the export markets for chicken meat products in EU tend to expand. In addition, an outbreak of some diseases in some countries such as bird flu in Mexico can promote the export market of Thai chicken meat products. Some countries like Russia has already certified Thai chicken meat product factories, which can promote export market of Thai meat produces.

160

Figure 38: Export volume and value of important meat products.

161

(a)

(b)

Figure 39: (a) Leading chicken producing countries of the world (unit: 1,000 tons) and (b)

Leading chicken product exporting countries of the world (unit: 1,000 tons).

Source: USDA October 2008, *Thai Broiler Processing Exporters Association

162

Figure: 40 Simplified scheme of chicken production and consumption in Thailand.

Source: Thai Feed Mill Association (2012)

Production Process Market

Slaughterhouse Annual 2012 1,509,990 tons

Farms

Normal farms

Certified farms

by Region

Central 70%

North eastern15%

Northern 8%

Southern 7%

Slaughterhouse for domestic market 126

Slaughterhouse for export market

24

Processing factory 86

Domestic Export

421,710 tons Volume = 359,970 tons Value = 4,147.19 million Baht

Fresh meat Volume = 64,060 tons Value = 46,14 million Baht

Processed meat Volume = 331,910 tons Value = 46.14 million Baht

Proportion of export processed chicken meat

Japan 46% UK 30% Netherland 6% German 5% Singapore 3%

Others 10%

163

In general, animal feed must be consisted of major 6 nutrients including water, carbohydrate, protein, lipid, minerals and vitamins. Therefore, feed ingredients are used to provide these elemental nutrients that are effective for animal growth performance. The highest proportion of nutrients in animal feed is carbohydrate that is a source of energy for animal growth. Table 46 summarizes chemical composition of some feed ingredients. There are different types of feed ingredients that are used as carbohydrate source such as corn, broken rice, wheat, sorghum and cassava. These materials contain high contents of nitrogen free extract, which represents the amount of readily digestible carbohydrates including sugar, starch and glycogen. As applied at the largest quantity, types of materials used for carbohydrate source are primarily considered on their supply and price. In Thailand, the major raw materials used as carbohydrate source in most animal feed are animal corn, broken rice and cassava chips while soybean meal and fishmeal are used as protein source (Table 47). The price of cassava chips is relatively lower than the other two as illustrated in Figure 41. This is due to the fact that cassava contains lower protein content. Therefore, for feed formulas using cassava chips, higher protein sources such as soybean meal and fishmeal are applied at a greater quantity. Thailand has long been practicing the application of dried cassava chips in animal feed for many animal types including chicken, duck, swine, milk cow, beef cattle, goat and lamb. Although, cassava chip is cheaper than other carbohydrate sources, the price of cassava chips has been increasing since 2010. The price of cassava chips in 2011 is reported as 7.21 Baht/kg. Farmers have to look for cheaper raw materials. Cassava pulp still contains high starch content (Table 48) that can be used as carbohydrate source in animal feed.

Table 46: Chemical composition (% by weight) of feed ingredient.

Raw material Moisture Protein Lipid Fibre NFE1 Ash

Broken rice 11.3 7.1 1.4 0.5 75.2 4.2

Rice bran 10.0 12.2 11.8 12.3 40.6 13.1

Corn 11.2 9.4 0.2 0.8 77.2 1.2

Wheat 12.1 12.0 1.7 2.5 70.0 1.7

Wheat bran 12.1 14.7 4.0 9.9 53.5 5.8

Sorghum 11.2 10.6 3.0 1.9 71.4 1.9

Cassava chips 13.5 2.2 0.5 3.0 75.8 5.0

Source: Asawakedmanee, 2001. 1 NFE= Nitrogen free extract

164

Table 47: Animal feed production and amounts of major ingredient used in Thailand during

2000‐2012.

Year Feed production (Mt)

Corn (Mt)

Broken rice (Mt)

Soybean meal (Mt)

Fish meal (Mt)

2000 9,611,140 4,557,227 715,091 2,161,051 493,236

2001 10,120,335 4,774,999 374,445 2,383,728 465,259

2002 10,034,036 4,797,446 381,800 2,383,411 414,936

2003 11,494,927 4,753,457 985,025 2,732,581 605,745

2004 10,004,041 3,858,130 970,520 2,354,383 467,259

2005 10,583,463 4,079,835 1,039,338 2,482,632 469,030

2006 12,236,606 4,751,850 1,232,723 2,897,424 527,995

2007 12,863,395 4,755,767 1,324,765 3,024,758 609,124

2008 12,621,825 4,912,377 1,141,740 3,022,512 599,130

2009 12,262,565 4,848,877 1,086,655 2,937,694 555,944

2010 12,850,211 5,086,122 1,154,780 3,079,213 578,462

2011 14,325,309 5,671,868 1,292,435 3,427,941 637,695

2012 15,224,765 6,044,506 1,309,305 3,642,593 682,588

Source: Thai Feed Mill Association (http://www.thaifeedmill.com)

Figure 41: Yearly price of major carbohydrate sources commonly used in Thai animal

feed.

Source: Thai Feed Mill Association. 2010

165

Table 48: Compositional analysis of cassava pulp

Composition % wet weight basis % dry weight basis

Starch 17.80±1.24 68.89±4.00

Protein 0.40±0.00 1.55±0.03

Ash 0.44±0.00 1.70±0.01

Fibre 7.17± 0.06 27.75±0.20

Fat 0.03±0.00 0.12±0.01

Moisture 72.00±0.08 n.a.

Source: Sriroth et al. (2000)

Cassava pulp is mostly used for ruminant feed, either in a form of wet cake or dried pulp, as it contains high fibre content that cannot be readily digested by monogastric animals. Wet pulp is used more widely by small scale farmers by directly feeding wet pulp with additional feed and supplements such as grasses, commercial feed, vitamins, mineral salt, palm kernel, soybean meal (Figure 42). In some farms, cheap wet pulp is mixed with other ingredients such as pineapple, corn stalk, bagasse and beer waste to adjust the nutrients and sometimes fermented for several days prior uses. The types of ingredients vary a lot, depending on geographic locations where those ingredients are easily obtained at a cheap price. From our survey, examples of local uses of wet pulp for animal feed are:

i) Feed for dairy cattle

Wet cassava pulp is mixed with palm kernel and brewery yeast and used as dairy cattle feed. The amount used, price and quality of each composition are listed in Table 49.

Table 49: Use of wet cassava pulp in dairy cattle feed.

Wet cassava pulp Palm kernel Brewery yeast

Amount (kg) 5 0.3 1

Price (baht/kg) 0.1‐0.4 5 1.6

% Protein (dwb) 1.8 15 28

Source: By interview

ii) Feed for beef cattle

Wet cassava pulp (5 parts) is mixed dried cassava leaves (1 part) and used for cattle. Sometimes, it is fermented for another 15 days to produce silage.

iii) Feed for general uses

Wet pulp (4 tons) is mixed with pineapple peel (4 tons), pressed pulp (2 tons), corn stalk (0.5 ton) and bagasse (50 kg) and the mixture is fermented for 20 days (Figure 43). The product is sold 40 baht/bag (1 bag = 25 kg).

iv) Silage pulp with yeast

166

The process is summarized in Figure 42.

(a) (b)

(c) (d) Figure 43: Direct uses of wet cassava pulp with the addition of other feed and supplement in

animal farms by most farmers.

(a) (b)

Figure 44: Use of cassava pulp by making silage for animal use (a) all ingredients are mixed

and fermented for 20 days and (b) silage with cassava pulp.

Commercial feed

Wet cassava pulp

Minerals

167

Water (90L) Water (2L)

Add 4 kg molasses

Add 0.2 kg brown sugar

Add 2 kg brown sugar

Mix well

Add 3 kg urea

Leave for 1 hr (some air bubbles occur)

Mix well

Add 100 g baker yeast

Leave for 2‐3 hrs

Mix with 40 kg wet cassava pulp

Closely seal the plastic bag

Leave for 10 days or more Figure 45: Process of making animal feed from wet cassava pulp with yeast supplement.

Although, the use of wet pulp in animal feed is very promising, the problem is storing the pulp between the time it is available and the time that it is needed for mixing into animal feed. During the wet season, the price is very low because pulp cannot be dried. Farmers cannot stock wet pulp as is so they keep it as in the silage form. In some farms where wet pulp is used directly, the pulp is then delivered daily from the factory to the farm. In addition, wet pulp contains high moisture content (70‐80%) therefore the use of wet pulp is preferred in geographic areas where starch factories are located (Figure 26; most of letter C are filled in the green zone) to minimize the transportation cost.

Some factories try to produce high quality cassava pulp for animal feed use by applying flash dryer technology, but the energy cost is high. The specification of dried cassava pulp includes moisture content <15%, starch content >55%, ash content <2% and crude fibre content <20% (www.sonishstarch.com). Recently, some chip yards now produce dried cassava pulp by sun drying, similar to producing dried cassava chips (Figure 46) to reduce the energy cost. Dry powder of pulp has a low bulk density that results in high transportation costs. Recently, the pelletization of sun‐dried pulp has been developed to increase the bulk density and the products are sold in a form of pellets for animal feed use. The colour of pellets from pulp is

168

darker than the ones made from chips. Some factories are now developing the use of cassava pulp for biogas production. This is in the pilot trial stage and not commercialized yet.

(a) Wet cassava pulp (b) Distribute wet pulp throughout the yard

(c) Sun‐dry on cement floor (d)Turn over during drying

(e) Dried cassava pulp (f) Transport by a truck

Figure 46: Sun‐drying of cassava pulp in chip yard.

Peels can be also used for animal feed but pulps are more preferred due to higher starch content. Some farmers have demonstrated the use of wet peels from cassava as animal feed by making silage. The composition includes cassava wet peel and Leucaena leaves at a ratio of 3:1 with the addition of beer waste. The silage is fermented for 2‐3 weeks and used for dairy cattle feed (Figure 47).

169

Figure 47: Use of cassava wet peel as silage for dairy cattle feed application.

Market segment:

There is a current use of cassava pulps in animal feed application to replace or use with dried cassava chips. Potential uses are feed for chicken, duck, swine and cattle.

Market mix (5P):

Product ‐ Animal feed with cassava pulp as an ingredient

Price ‐ 15‐30 Baht/kg, depending on feed type

Place ‐ Wet cassava pulp can be obtained directly from the starch factories or the

middlemen who have the contract with starch factories. The dried one is sold

by chip yards as bulk.

‐ Wet pulp is mostly used as home mixing by farmers as well as the dried one.

The market of dried pulp for feed mills is now developing and feed pellets are

available in a package with different sizes.

Promotion ‐ Advertisement on quality of cassava pulp comparatively to dried chips with

technical information on modified formulas from original ones, having dried

cassava chips

People ‐ Home mixing feed producers/ farmers

‐ Feed mills


‐ Cassava pulp with starch content not less than 50% dry basis

‐ Moisture content not greater than 14% for dried product

170

‐ Cyanide content not greater than 100 mg HCN equivalent/kg dry weight

‐ Animal feed with complete required nutrition values.

SWOT analysis

Strength ‐ Cheaper raw materials relatively to corn and broken rice

‐ Containhighcarbohydratecontent‐ Canbedriedbysharingchipyardfacilities

Weakness ‐ Cannot be stored in a wet form, need to dry

‐ Highenergycostfordryingcassavapulpbyothertechniques,e.g.aflashdryer

‐ Weatherdependentforsun‐dryingofcassavapulp‐ Higherfibrecontentrelativelytochips,souselessinmonogastricanimals

Opportunity ‐ Higher price of corn and broken rice, which is used for other food

consumption

‐ Increasing of market demand of meat products, both domestic and export

Threat ‐ Competitive export market of dried cassava pulp in animal feed industry

- Improvement of starch extraction efficiency of factories which lowers the

starch content in pulp.

Market gap

P Now: Use of dried cassava

chips

M Now:

‐ Production of animal feed

including chicken, duck, swine,

cattle for local uses

New P: Animal feed containing

cassava pulp

New M:

‐ Development of export market

for animal feed

‐ Development of using cassava

pulp in other animal feeds

Entry strategy

The use of cassava pulp in existing market of animal feed is highly potential. To encourage the use of cassava pulp in animal feed uses, it is important to develop the technical

Products (P)

Market (M

)

171

information on modified formulas from original recipe having dried cassava chips. This can help ensure feed producers to replace dried cassava chips with pulp. The market can be significantly expanded if the pulp can be sold in the dried form, which is beneficial to transportation, storage and quality control.

Conclusions

In Thailand, dried cassava chips have been used in animal feeds as the energy source. The pulps with high starch contents therefore have potential to be used in animal feeds as an energy source. Some farmers have used wet pulp to prepare home‐mixing feeds to be used in their own farms. Although, the pulp can be used to replace dried chips, pulps contain more fibre content therefore feeders have to adjust feed formula. In contrast to dried chips, pulps have very high moisture contents so they must be transported and used within a few days. To prolong the shelf life of wet pulp, fermented silage is then produced from wet pulps. The potency of using cassava pulp can be dramatically improved by drying. Simple drying of pulp is now conducted by chip processors who now use their yards to dry the pulp, instead of fresh roots.

9. Potential for use of peels for starch recovery and sugar syrup

In Thailand, the largest domestic consumption of cassava starch is sweeteners (39%), followed by monosodium glutamate (20%). The sweetener industry include glucose syrup with different dextrose equivalent (DE) values, dextrose syrup, fructose syrup and sugar alcohol, i.e. sorbitol and maltitol. The products in this group are produced by enzyme hydrolysis of starch. Different enzymes and different degree of starch hydrolysis, described as dextrose equivalent (DE) can generate diverse products. Hydrogenation of simple sugars, i.e. glucose and maltose yields sugar alcohols, namely sorbitol and maltitol (Figure 30). Currently, there are 14 factories manufacturing glucose syrup and sugar alcohols. The market of starch‐based sweeteners still expands due to a higher domestic and world price of cane sugar (Figure 31a and b, respectively).

Monosodium glutamate (MSG) and lysine is the second most important domestic consumption of cassava starch. The production of commercial MSG in Thailand utilizes only two carbohydrate sources for inoculation, which are molasses and cassava starch. To produce one ton of MSG, factories need either about 2.4 tonnes of cassava starch or 7.0 tonnes of molasses.

172

Figure 48: Simple scheme representing a production of major sweetener products obtained from cassava starch hydrolysis. Source: GRATITUDE

(a)

173

(b)

Figure 49: Yearly domestic price in Thailand (a) and monthly world price (b) of cane sugar.

Source: F.O.Licht's International Sugar and Sweetener Report; Thai Sugar Millers

Corporations Limited

Starch is a polymer of glucose which can be hydrolysed into smaller molecules. The degree of starch hydrolysis is usually described as Dextrose Equivalent (DE). DE is the amount of reducing sugars, reported as glucose, present in sugar or syrup products, expressed as a percentage on a dry basis. Starch contains a negligible amount of reducing sugar therefore its DE is zero while glucose has DE 100. With the range of DE from 0 (starch) to 100 (glucose), different products can be obtained by varying degree of starch hydrolysis including maltodextrin (DE<20), glucose syrup (DE 24, 38‐42, >95) and dextrose sugar. Starch hydrolysates with different DE provide different attributes that can serve many applications in beverage, confectionery, canned food, seasoning etc. The prices of sweetener in Thailand are summarized in Table 50, which are relatively lower than domestic cane sugar price.

Table 50: Domestic price of glucose syrup and sorbitol in Thailand during 2009‐2012.

Glucose syrup (82‐83°Brix)1 Sorbitol (70°Brix)1 Cane sugar2

2009 15.00‐15.50 n.a. 24.65

2010 19.30‐19.60 n.a. 25.60

2011 18.24‐18.54 20.61 25.94

2012 16.62‐16.98 20.08 25.573

1Source: The Thai Tapioca Trade Association; 2 Bank of Thailand; 3 Bureau of Trade and

Economic Indices, the price is updated until October, 2012. n.a. = Not available

A process of making starch hydrolysed products is summarized in Figure 50. In general, the process can be classified into two major stages, i.e. starch hydrolysis and refining. During hydrolysis, starch is cooked and become gelatinized which promotes enzyme hydrolysis. Types and dosages of enzyme used and reaction time are varied greatly, depending on

174

product specifications. Typically, starch is initially hydrolysed by liquefying enzyme, i.e. α‐amylase. This step is called liquefaction that results in thinning of starch pastes. The products derived from liquefaction are named as maltodextrin (DE<20). The second stage of enzyme hydrolysis is saccharification by saccharifying enzymes such as glucoamylase and β‐amylase. Saccharification by glucoamyase yields glucose as a major product while β‐amylase gives maltose as the major end product. Once the required products are obtained, the enzyme reaction is terminated, usually by heating. Subsequently, starch hydrolysed products are advanced to refining step. The main objective of refining process is to remove impurities such as metal ion, colour pigment, enzyme residues that can have adverse effects on syrup qualities upon storage. The refining process of glucose syrup involves mainly carbon treatment and ion exchange treatment by cation and anion exchange resin. The refined syrup is then concentrated by evaporation. In some products, crystallization is applied and sugar crystals are produced.

Figure 50: Typical process of glucose syrup production from starch by enzyme hydrolysis.

The ultimate product of starch hydrolysis is glucose, which can be used as a substrate for producing many chemical products by enzyme, chemical and fermentation process. Fructose is a product obtained by isomerisation of glucose with isomerise enzyme while sorbitol is

175

sugar alcohol produced by hydrogenation of glucose. The other promising application of glucose is in fermentation industry. Various products can be produced by fermentation of glucose with various microorganisms such as ethanol production by yeast, lactic acid by lactic acid bacteria, glutamic acid by Corynebacteriumglutamicum, Brevibacteriumflavum, Arthrobacterparaffineus and L‐lysine by Brevibacterium lactofermentum, B. Flavum. In fermentation process, sugar feedstock e.g. sugar cane, sweet sorghum, sugar beet can be used directly by microbes in a fermenter while starch has to be hydrolysed to glucose prior to microbial fermentation. Similar to glucose syrup process, when the fermentation process is completed, the next step involves refining process including product recovery, purification using various technologies such as ion exchange treatment, crystallization, distillation and filtration.

In Thailand, the major feedstocks for fermentation industries are sugar‐based and starch‐based feedstock. The important sugar‐based feedstock is not sugar cane crop, but in fact it is molasses, a by‐product from cane sugar production. Around 5% of crushed cane is molasses. Molasses is mainly used domestically for ethanol, monosodium glutamate (MSG) and L‐lysine and for the export market. Table 51 summarizes the total sugar cane production, molasses production (based on 5% of cane) and uses of molasses in domestic market and Table 52 presents the export volume and value of molasses produced in Thailand. Interestingly, the export volume of molasses decreased significantly during 2006‐2011 and the unit price increased dramatically. That was due to an announced national policy on alternative energy and the establishment of fuel ethanol factories. Although, cane molasses is widely used in fermentation industry, it is known that the quality of molasses is inconsistent due to many impurities (Table 53). Some pesticides and chemicals are found in molasses as contaminants from sugar cane and chemical residues used in sugar processing. These impurities are possibly toxic to microbials and can inhibit their growth and performance.

Table 51: Sugar cane production, molasses production and uses in Thailand.

Year Sugar cane

production1

(Tons)

Molasses

production2

(Tons)

Export volume 1

(Tons)

Domestic use3

(Tons)

2003 74,258,521 3,712,926 1,328,178 2,384,748

2004 64,995,741 3,249,787 1,499,504 1,750,283

2005 49,586,360 2,479,318 1,159,491 1,319,827

2006 47,658,097 2,382,905 502,095 1,880,810

2007 64,365,482 3,218,274 549,336 2,668,938

2008 73,501,611 3,675,081 786,953 2,888,127

2009 66,816,446 3,340,822 443,770 2,897,052

2010 68,807,800 3,440,390 237,319 3,203,071

2011 95,950,416 4,797,521 396,943 4,400,578

2012 98,402,220 4,920,111 829,697 4,090,4141Source: Office of Agricultural Economics and the Customs Department 2 5% of sugar cane production 3 As the difference between the total production and export volume.

176

Table 52: Export quantity and price of molasses

Year Volume

(Mt)

Value

(million baht) Unit price (Baht/Mt)

2003 1,328,178.50 1,962.79 1,477.81

2004 1,499,504.02 1,664.32 1,109.91

2005 1,159,490.55 2,590.80 2,234.43

2006 502,094.86 1,591.58 3,169.87

2007 549,335.95 1,256.14 2,286.65

2008 786,953.27 1,701.31 2,161.90

2009 443,769.80 1,433.51 3,230.30

2010 237,319.18 973.74 4,103.08

2011 396,942.87 1,344.91 3,388.17

2012 829,696.85 2,010.09 2,422.68

Source: Office of Agricultural Economics and the Customs Department

Table 53: Chemical composition of cane molasses (Percentage weight of molasses).

Constituents Components Normal

percentage range

Water 17‐25

Sugars

Sucrose 30‐40

Glucose 4‐9

Fructose 5‐12

Other reducing substances (as invert) 1‐4

Total reducing substances (as invert) 10‐25

Other

carbohydrates

Gums, starch, pentosans, also traces of hexitols; 2‐5

Myoinositol, D‐mannitol and uronic acid

Ash As carbonates 7‐15

Nitrogenous compounds

Crude protein (as N x 6.25) 2.5‐4.5

True protein 0.5‐1.5

Amino acids 0.3‐0.5

Unidentified nitrogenous compounds 1.5‐3.0

Nonnitrogenous acids

Aconitic acid, citric acid, malic, oxalic, glycolic 1.5‐6.0

Mesaconic, succinic, fumaric, tartaric 0.5‐1.5

Wax, sterols, and phosphatides

0.1‐1.0

Vitamins Vitamin A, biotin, niacin, pantothenic acid, riboflavin, thiamine

Varying amounts

Source: Chen and Chou, 1993.

177

Alternatively, cassava starch can be used for a production of MSG and L‐lysine. The process is similar except that starch is initially hydrolysed to glucose prior to fermentation (Figure 33). Currently, MSG and lysine factories employ both molasses and cassava starch as the feedstock (Appendix Table 23). When cassava starch is used, starch is hydrolysed and continued directly to fermentation without refining step. The refining is executed after fermentation process is completed. Cassava pulp still contains high starch, which can be hydrolysed to produce glucose syrup and concentrated without refining to produce molasses analog (Figure 34), a promising feedstock for biorefinery process.

Molasses Starch

Fermentable sugars Enzyme hydrolysis

Addition of microbial, acid/ base, urea or NH4, other nutrients

Fermentation Adjust pH

Precipitation

Neutralization

Decolorization

Crystallization

Drying

Packing

Microbial for Lysine: Brevibacterium lactofermentum, B. flavum

Microbial for MSG: Corynebacterium glutamicum, B. flavum, Arthrobacter Paraffineus

Figure 51: Schematic process of monosodium glutamate or L‐lysine production. Source: GRATITUDE

178

Cassavastarch/pulp

Liquefaction

Glucoamylase

Liquefaction

Glucoamylase

Refining Evaporation

Evaporation

Molassesanalog

Glucosesyrup (feedstockforfermentationprocess)

Figure 51: Schematic diagram of making glucose syrup from cassava starch and pulp. Source: GRATITUDE

Market segment:

In Thailand, glucose syrup is mainly produced from extracted cassava starch and mainly used

in food, beverage and confectionery. Molasses, a by‐product from cane sugar production is

an important source of fermentable sugars, being used mostly in fermentation industry to

produce many food additives and chemicals including MSG, lysine, lactic acid and ethanol.

Market mix (5P):

Product ‐ Glucose syrup with and without refining step (named as molasses analog)

Price ‐ 17‐20 Baht/kg for refined glucose syrup and 3 Baht/kg for molasses

Place ‐ Produced by starch‐based sweetener factories and sold to food and

fermentation industry

Promotion ‐ Advertisement on equivalent quality of starch‐based and pulp‐based

glucose syrup and superior quality of pulp‐based molasses analog to cane

molasses

‐ Free samples to let end‐users try with their production process

People ‐ Food processors

‐ Fermentation industry such as MSG, lysine, ethanol, lactic acid


‐ Glucose syrup quality according to Thai Industrial Standards

‐ Molasses analog quality according to specification of commercial molasses

SWOT analysis

Strength ‐ No raw material cost for syrup production

179

‐ Pulp‐basedmolassescontainlessimpuritiesrelativelytocommercialmolassesandcontainhighfermentablesugarstonon‐fermentablesugars

Weakness ‐ Cassava pulp cannot be stored and need to be processed immediately.

‐ Need for improving economic processing technology

‐ High energy cost for evaporation

Opportunity ‐ Increase of cassava root price under the pledging program announced by

Government

‐ Increasingpriceofcanesugar‐ IncreasingtrendinBiorefineryduetoenvironmentalconcerns‐ Expansionofexportmarketsforfoodadditivesandchemicals

Threat ‐ Price fluctuation of cane sugar and cane molasses

‐ Increasing of energy cost

Market gap

P Now: Starch‐based glucose

syrup and cane molasses

M Now:

‐ Use of glucose syrup in food,

beverage, confectionery,

New P: Pulp‐based glucose

syrup and molasses analog

New M:

‐ Use of pulp‐based glucose syrup

to produce other glucose

derivatives, e.g. fructose, sorbitol

‐ Use of molasses analog in other

fermentation, e.g. succinic acid,

higher alcohols

Entry strategy

The pulp‐based syrup suppliers should provide the users with the technical information on

equivalent quality of starch‐based and pulp‐based glucose syrup and superior quality of pulp‐

based molasses analog to cane molasses.

Conclusions

Cassava pulps still contain high starch contents. The starch can be extracted either in a form of native starch or hydrolyzates as glucose syrup. Refined glucose syrup is widely used in food, beverage and confectionery. Without refining process, the syrup still contains high

Products (P)

Market (M

)

180

fermentable sugars that can be used to produce many food additives and chemicals by microbial fermentation. Pulp‐based syrup without refining is named as molasses analog that should have fewer impurities and can be beneficial to fermentation industry. To promote these products, technology development on feasible process is needed as well as the technical information on equivalent qualities of starch‐based and pulp‐based glucose syrup and superior quality on pulp‐based molasses and cane molasses must be available for the end users.

10. Conclusions and recommendations

Some current and potential uses and product development of wastes from Thai cassava value chains have been investigated. The major wastes from cassava fields are leaves, rhizomes and stems, which are low utilized. Currently, there is the development on cassava leaf utilization. Cassava leaves with high protein contents are prepare in a dry form as dried cassava leaves for animal feed use to partially replace Leucaena leaf, exported soybean meal and fish meal, which are expensive. The market is potential in particular for the application of home‐mixing feed production, but there is a limitation on a large‐scale production to supply feed mills. After harvesting, some of stems (around 20%) are kept for next multiplication. Cassava farmers who live nearby the factories or electricity power plants sell the rest of stems to those factories, which use those as biomass fuel by burning. An attempt to improve more heating efficiency of rhizomes has developed by producing coal briquettes for food preparation.

The major wastes from starch processing are cassava peels and pulps. Table 20 illustrates current and potential uses of cassava peels and pulps in various products. Currently, cassava peels are used for straw mushroom production while cassava pulps are used for animal feed production. The use of peels in mushroom can be increased by developing cassava peels as a media for growing bags as well as by developing processed mushroom with extended shelf‐life, which can then increase the market size of straw mushroom, especially export market. The use of cassava pulp for animal feed production has great potential to partially substitute other expensive energy sources such as broken rice, corn grains and dried cassava chips. However, to increase the market demand, technology development on drying is important in term of pulp storage and transportation, which can promote extensively use of dried pulp in various feeds, both for local and export markets. The uses of pulp in animal feed can be also expanded by development of animal feed formulas containing pulps (with more fibre and lower starch content, comparatively to dried chips).

Another potential use of cassava pulp is to recover starch, either in a form of starch or hydrolysed starch. Reextracted starch can be used for sugar‐based industries such as sweeteners and fermentation, which have been continuously growing in Thailand. Hydrolysed starch, i.e. glucose syrup with effective refinery step can be used in food and beverage industries. Furthermore, glucose syrup without refinery can be also supplied to those sugar‐based industries. To promote this potential use of cassava pulps, technology development on starch extraction process and technical information in term of specification and application are of great importance.

181

Table 54: Current and potential uses of cassava peel/ pulp

Market / Product

Mushrooms Animal feed ingredient

Extracted starch

Molasses analog

Glucose syrup

Food processors/ Household

Animal feed

Sweetener producers

MSG/Lysine

Organic acids

Ethanol

Food/ Beverage processors

Food restaurants

= Current use of cassava peels/ pulps

= Potential use of cassava peels/ pulps

Markets in

order of likely success

Products in order of likely success

182

APPENDICES

1. Acronyms

DE Dextrose Equivalent % dwb % dry weight basis ha Hectare (1 Ha = 6.25 Rai) HCN Hydrogen cyanide ppm Part per million (or mg/kg) MSG Monosodium glutamate MW Megawatt NFE Nitrogen free extract ppm Part per million

183

2. References

Asawakedmanee, N. (2001). Quantification of protein content in feed ingredients indigenous to Nakhon Si Thammarat province. MS dissertation. Nakhon Si ThammaratRajabhat University. Bussarakumvadee, J. (2004). Properties of coal briquette from cassava rhizome with reference to material sources, particle size and binder ratio. Dissertation (M. Eng) in Department of Agricultural Engineering. Kasetsart University. 80p. Bussarakumvadee, J., Usaborisut, P. and Juttupornpong, S. (2012). Coal briquette from cassava rhizomes. Animal Nutrition Research and Development Center, Suwanvajokkasikit, Kasetsart University. http://61.19.18.122/arda/cassava. The Agricultural Research Development Agency (Public Organization). Chantarasiri, C., Sookkasame, S., Chawingram, T., Kammuang, C. and Kaewthong, K. (2009). Production of Leucaena leaf meal for animal feed factory by farmers in Nakhon Ratchasima. Bureau of Livestock Extension and Development, Nakhon Ratchasima Animal Nutrition Research and Development Centre, Bureau of Animal Nutrition Development, Department of Livestock Development, Ministry of Agriculture and Cooperatives. Chen, J. C. P. and Chou, C. C. (1993). Cane Sugar Handbook: a manual for cane sugar manufacturers and their chemists. 12th Edition. John Wiley & Sons, Inc. 1090p. Pattiya, A. (2011). Thermochemical characterization of agricultural wastes from Thai cassava plantations. Energy sources, Part A: Recovery, Utilization and Environmental Effects. 33(8):691‐701. Pueaksee, N. (2009). Effect of dietary cassava leaves meal on immunological response and performance of weaned pigs. MS dissertation in Department of Animal Science, Kasetsart University. 75p. Punthanara, S. (2009). Effects of cassava hay supplementation in dairy cow feed on lactoperoxidase system and raw milk quality. Ph.D. dissertation in Department of Animal Science. Kasetsart University. 150p. Sriroth, K., Chollakup, R., Chotineeranat, S., Piyachomkwan, K. and Oates, C.G. (2000). Processing of cassava waste for improved biomass utilization. Bioresource Technology. 71: 63‐69. Thai Feed Mill Association. (2010). Feed ingredient price. Feed Industries Journal Vol. 134 Sep‐Oct 2010. Thai Feed Mill Association. (2012). Chicken meat products. Feed Industries Journal. Vol. 146. Sept‐Oct, 2012.

184

3. List of persons interviewed

Table 55: List of interviewees for cassava leaves utilization in Thailand.

No. Name Contact address Province

1 Kanjanaburi

Table 56: List of interviewees for using cassava peel for mushroom growing in Thailand.

No.

Name Contact address Province Type

Quantity (Tons/cycle) Production

(Kg/cycle)peel pulp

1 Nakhon Ratchasima

House

8

‐ 1,000

2 Nakhon Ratchasima

House

10.5 ‐ 350

3 Nakhon Ratchasima

House

3 5 500

4 Nakhon Sawan

Pile 7 ‐ 330

5 Ratchaburi Pile ‐ 2 450

6 Khon Kaen Pile 56 ‐ 1,720

7 Kalasin Pile 5.5 ‐ 270

8 Chachoengsao

House

85 ‐ 3,400

Table 57: List of interviewees who sell mushrooms in Thailand.

No. Name Contact address

Type of

mushroom

sold

Quantity

(kg/day)

1 1 1,000‐1,200

2 2 100

3 3 100‐300

4 4 100

185

5 4 150

6 2 300‐400

Table 58: List of interviewees for using cassava pulp for animal feed in Thailand.

No. Name Contact address Province

Quantity use (Tons/day)

Animal feed Animal feed

production

1 Nakhon Ratchasima

0.5 (peel/pulp)

‐

2 Nakhon Ratchasima

3 (pulp) ‐

3 Saraburi 500 (pulp) ‐

4 Ratchaburi ‐ 4 (peel) 2 (pulp)

5 Mahasarakham

7‐8 (pulp) ‐

Table 59: List of interviewed syrup producers and users in Thailand.

No. Name Contact address Syrup producer/ users

Production

1 Syrup producer

80,000 tons glucose syrup/ year

2 Syrup producer

60,000 tons sugar alcohol/ year

3 Syrup producer

208.33 tons glucose syrup/ day

4 Potential user

200,000 L ethanol/day

5 Potential user


6 Potential user


186

4. Chemical compositions of some feed ingredients

Table 60: Chemical composition of some feed ingredients.

CompositionFishmeal1 Defattedrice

bran2Soybeanmeal350% 55% 60%

Moisture 10 8 8 ≤13 9.8

Protein 49.1 55 60 13.5 47.6

Lipid n.a. 8 10 0.6 3.2

Fibre n.a. 1 n.a. 13 6.6

Ash n.a. 26 19 ≤12.5 7.6

Carbohydrate n.a. n.a. n.a. n.a. 35

Calcium n.a. 7.7 5 0.1 0.38

Phosphorus n.a. 3.8 3 1.7 0.66

Energy n.a. n.a. n.a. 1,890 n.a.

1www.dld.go.th/nutrition/exhibition/feed_stuff/fish_meal.htm2www.agri.ubu.ac.th/~kanjana/1203321/Data/rice_oli.doc 3Feed Nutrition Department of Livestock Development (analysed results 1997‐1999)

(http://www.dld.go.th/nutrition/Nutrition_Knowlage/ARTICLE/ArtileP.htm) n.a. = not available

187

5. Heating attributes of some agricultural biomass

Table 61 : Properties and heating value of some agricultural biomass.

Type of biomass Moisture

(%)

Ash

(%)

Volatile

matter

(%)

Fixed

carbon

(%)

Higher

heating value

(kJ/kg)

Lower heating

value

(kJ/kg)

Rice husk 12.00 12.65 56.46 18.88 14,755 13,517

Rice straw 10.00 10.39 60.70 18.90 13,650 12,330

Bagasse 50.73 1.43 41.98 5.86 9,243 7,368

Cane trash 9.20 6.10 67.80 16.90 16,794 15,479

Parawood 45.00 1.59 45.70 7.71 10,365 8,600

Oil palm fibre 38.50 4.42 42.68 14.39 13,127 11,400

Oil palm shell 12.00 3.50 68.20 16.30 18,267 16,900

Empty fruit

bunch of oil

palm

58.60 2.03 30.46 8.90 9,196 7,240

Oil palm trunk 48.40 1.20 38.70 11.70 9,370 7,556

Palm leaf 78.40 0.70 16.30 4.60 3,908 1,760

Corncob 40.00 0.90 45.42 13.68 11,298 9,615

Corn stalk 41.70 3.70 46.46 8.14 11,704 9,830

Tapioca rhizome 59.40 1.50 31.00 8.10 7,451 5,494

Eucalyptus bark 60.00 2.44 28.00 9.56 6,811 4,917

Source: Greenenergynet.net Co., Ltd, 2009 (http://www.greenenergynet.net)

188

6. List of animal feed mills in Thailand

Table 62: List of major animal feed mills in Thailand.

No. Company Production capacity (tons/month)

Production capacity (tons/year)

1 Premier 500 6,000

2 Gold Coin 1,200 14,400

3 STC 2,000 24,000

4 Thailux 4,000 48,000

5 AFE 4,250 51,000

6 Mitraparp 5,400 64,800

7 Grobest 6,000 72,000

8 United 6,250 75,000

9 Koana Poultry 6,750 81,000

10 Thai Union (Profeed) 7,000 84,000

11 Inteqc 7,100 85,200

12 Yusoong 7,500 90,000

13 Srithai 8,150 97,800

14 Panus 10,000 120,000

15 Cargill 10,150 121,800

16 Rianthong 10,500 126,000

17 Sun Feed 14,000 168,000

18 Thai Feed Mill 14,200 170,400

19 Karnjana 18,000 216,000

20 Top 20,000 240,000

21 Lee Patana 25,000 300,000

22 Centaco 27,500 330,000

23 Sun Valley 32,000 384,000

24 Sahafarm 35,000 420,000

25 P. Chareonphand 43,500 522,000

26 Laemthong 45,500 546,000

27 Betagro 90,000 1,080,000

28 Charoen Phokphand 323,000 3,876,000

189

7. Animal feed formula for different animal types and ages

Table 63: Chick starter‐layer feed formula (Age 0‐6 weeks).

Raw material Quantity (kg)

Formula 1 Formula 2 Formula 3

Broken rice 55 ‐ ‐

Milled corn ‐ 57.7 ‐

Rice bran 18 15 15

Milled cassava chip ‐ ‐ 49.6

Soybean meal (44% protein content) 19.8 20.1 27.7

Fish meal (55% protein content) 5 5 5.5

Leucaena leaf meal ‐ ‐ ‐

Oyster shell meal 0.8 0.9 0.7

Dicalcium phosphate 0.8 0.7 0.8

Vegetable oils ‐ ‐ ‐

DL‐Methionine ‐ ‐ 0.1

Salt 0.35 0.35 0.35

Premix (Chick starter‐layer) 0.25 0.25 0.25

Total 100 100 100

Source: Bureau of Animal Nutrition Development, Department of Livestock Development

Table 64: Chick grower‐layer feed formula (Age 6‐12 weeks)



Broken rice 57.6 ‐ ‐


Rice bran 20 20 19.5




Leucaena leaf meal 3 3 3

Oyster shell meal 0.6 0.6 0.6



DL‐Methionine ‐ ‐ ‐

Salt 0.35 0.35 0.35

Premix (Chick grower‐layer) 0.25 0.25 0.25

Total 100 100 100


190

Table 65: Chick developer‐layer feed formula (Age 6‐12 weeks)





Rice bran 30 25 22.5





Oyster shell meal 1 1 0.8



DL‐Methionine ‐ ‐ ‐

Salt 0.35 0.35 0.35

Premix (Chick developer‐layer) 0.25 0.25 0.25

Total 100 100 100


Table 66: Layer feed formula (Feed 90‐100 g/day)





Rice bran 8 6 7.45


Soybean meal (44% protein content) 18.3 19.2 26

Fish meal (55% protein content) 7.5 7.4 8


Oyster shell meal 8.1 8.1 8


Vegetable oils 2.5 2.5 4

DL‐Methionine 0.05 0.05 0.1

Salt 0.5 0.5 0.5

Premix (Chick developer‐layer) 0.25 0.25 0.25

Total 100 100 100


191

Table 67: Local breed chicken feed formula.

Raw material (kg)

Local breed chicken starter

(Age 0‐6 weeks)

Local breed chicken finisher

(Age 6‐23 weeks)

Breeder

(Older than 23 weeks)

Formula 1 Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Broken rice 51.9 ‐ ‐ 51.5 ‐ ‐ 50.1 ‐ ‐

Milled corn ‐ 55 ‐ ‐ 50 ‐ ‐ 50.1 ‐

Rice bran 18 15 15 24 25.2 19 20 20 19

Milled cassava chip ‐ ‐ 45.5 ‐ ‐ 49 ‐ ‐ 41.7

Soybean meal (44% protein

content) 22 21.8 29.5 13.8 14 20.9 12.2 12.2 19

Fish meal (55% protein content) 6 6 7 5 5 6 6 6 7

Leucaena leaf meal ‐ ‐ ‐ 4 4 3.5 4 4 4

Oyster shell meal 0.5 0.5 0.3 0.6 0.6 0.4 6.8 6.8 6.5

Dicalcium phosphate (P18) 1 1 1 0.5 0.5 0.5 0.2 0.2 0.3

Animal fats/vegetable oils ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ 1.8

DL‐Methionine ‐ 0.1 0.1 ‐ 0.1 0.1 0.1 0.1 0.1

Salt 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Mineral and multivitamin 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

Total 100 100 100 100 100 100 100 100 100


192

Table 68: Native crossed feed formula.

Raw material (kg) Pre‐starter (Age 0‐3 weeks) Starter (Age 3‐10 weeks) Finisher (Older than 10 weeks)

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Broken rice 53 ‐ ‐ 51.4 ‐ ‐ 51.7 ‐ ‐

Milled corn ‐ 56 ‐ ‐ 60.7 ‐ ‐ 61.3 ‐

Rice bran 15.2 12 10 21 10 16 25 15 20


Soybean meal (44% protein content) 23 23.2 31 16.8 18.3 24 12.2 13.6 20

Fish meal (55% protein content) 7 7 7.5 6 6 7 5 5 6

Leucaena leaf meal ‐ ‐ ‐ ‐ 3 3 4 3 3


Dicalcium phosphate (P18) 0.7 0.7 0.9 0.8 0.8 0.4 0.9 0.9 0.7

Animal fats/vegetable oils ‐ ‐ ‐ ‐ ‐ 0.5 ‐ ‐ ‐

DL‐Methionine ‐ ‐ 0.1 ‐ ‐ 0.1 ‐ ‐ ‐

Salt 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35


Total 100 100 100 100 100 100 100 100 100

Source:BureauofAnimalNutritionDevelopment,DepartmentofLivestockDevelopment

193

Table 69: Meat‐type duck feed formula.

Raw material (kg)

Meat‐type duck starter

(Age 0‐2 weeks)

Meat‐type duck finisher

(Age 2‐4 weeks)

Meat‐type duck withdrawer

(Age 4‐7 weeks)

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Broken rice 49.5 ‐ ‐ 56.4 ‐ ‐ 52.5 ‐ ‐

Milled corn ‐ 49 ‐ ‐ 55 ‐ ‐ 53 ‐

Rice bran 9.5 11 10 10 12 13 24 24 17


Soybean meal (44% protein content) 28.7 28.3 34.8 20 19.5 25 12.3 11.7 21.5

Fish meal (55% protein content) 7 7 8 6 6 7.5 5.5 5.5 5.5

Leucaena leaf meal ‐ ‐ ‐ 3 3 3 3 3 3



Animal fats/vegetable oils 3 2.4 3.5 2.3 2 3 ‐ ‐ ‐

L‐Lysine ‐ ‐ ‐ ‐ ‐ ‐ 0.1 0.2 ‐

DL‐Methionine 0.25 0.25 0.2 0.2 0.2 0.4 0.25 0.25 0.3

Salt 0.5 0.5 0.45 0.45 0.45 0.45 0.5 0.5 0.5


Total 100 100 100 100 100 100 100 100 100


194

Table 70: Duck layer feed formula.

Raw material (kg)

Duck starter layer

(Age 6‐22 weeks)

Duck layer

(Age 22‐48 weeks)

Duck layer

(Older than 48 weeks)

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Broken rice 47.5 ‐ ‐ 47 ‐ ‐ 41.8 ‐ ‐

Milled corn ‐ 47.4 ‐ ‐ 51.25 ‐ ‐ 46 ‐

Rice bran 25 25 25 15 10 10 30 25 24.5

Milled cassava chip ‐ ‐ 40 ‐ ‐ 43 ‐ ‐ 39

Soybean meal (44% protein content) 7.3 7.5 13.9 18.2 19 25.2 9.75 10.55 17.45

Fish meal (55% protein content) 5.5 5.5 6.5 7 7 8 7 7 7.5

Rough rice bran 8 8 8 ‐ ‐ ‐ ‐ ‐ ‐

Leucaena leaf meal 4 4 4 3 3 3 3 3 3

Oyster shell meal 1 1 1 1.2 1.2 1.2 1.1 1.1 1.1

Dicalcium phosphate (P18) 1 1 1 7.5 7.5 7.5 6.5 6.5 6.5

Animal fats/vegetable oils ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐

DL‐Methionine ‐ ‐ ‐ 0.35 0.3 0.35 0.1 0.1 0.2

Salt 0.45 0.45 0.45 0.5 0.5 0.5 0.5 0.5 0.5


Total 100 100 100 100 100 100 100 100 100


195

Table 71: Muscovy duck feed formula.

Raw material (kg)

Muscovy duck starter

(Age 0‐3 weeks)

Muscovy duck finisher

(Age 3‐9 weeks)

Muscovy duck layer

(Age 9 weeks‐sell)

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Broken rice 51 ‐ ‐ 57.9 ‐ ‐ 58 ‐ ‐

Milled corn ‐ 55.4 ‐ ‐ 56.6 ‐ ‐ 58 ‐

Rice bran 15 10 10 15 15 12 20 20 20

Milled cassava chip ‐ ‐ 43.2 ‐ ‐ 48.6 ‐ ‐ 50

Soybean meal (44% protein content) 25.6 26.2 34.8 11.2 11.5 18.45 6.5 6.6 15

Fish meal (55% protein content) 7 7 7 6 6 6 4.5 4.5 5

Mung bean meal ‐ ‐ ‐ 5 6 10 6 6 5

Leucaena leaf meal ‐ ‐ ‐ 3 3 3 3 3 3

Oyster shell meal ‐ ‐ 0.4 0.5 0.5 0.5 0.5 0.5 0.5


Animal fats/vegetable oils ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐

DL‐Methionine ‐ ‐ 0.2 0.1 0.05 0.05 0.1 ‐ 0.1

Salt 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45


Total 100 100 100 100 100 100 100 100 100


196

Table 72: Swine feed formula.

Raw material (kg)

Piglet (5‐20 kg) Pig grower (20‐60 kg) Fattening pig

(60‐100 kg) Swine breeder

Formul

a 1

Formul

a 2

Formul

a 3

Formul

a 1

Formul

a 2

Formul

a 3

Formul

a 1

Formul

a 2

Formul

a 3

Formul

a 1

Formul

a 2

Formul

a 3

Broken rice ‐ 51.1 15 ‐ 37 ‐ ‐ 42.8 ‐ ‐ 30 ‐

Milled corn 52.8 ‐ 16.5 68.7 30 ‐ 74.6 30 ‐ 73.2 22.7 ‐

Rice bran 5 5 ‐ 10 10 10 10 10 ‐ 15 35 20

Milled cassava chip ‐ ‐ 20 ‐ ‐ 53 ‐ ‐ 65.6 ‐ ‐ 52.4

Soybean meal (44% protein

content) 30.3 33 38.5 13.4 15.1 29 7.5 9.3 27 4.2 5.1 20

Fish meal (55% protein

content) 6 6 ‐ 5.5 5.5 ‐ 5.5 5.5 ‐ 5.5 5 ‐

Fish meal (60% protein

content) ‐ ‐ 3 ‐ ‐ 3 ‐ ‐ 3 ‐ ‐ 3

Animal fats/vegetable oils 3.5 2.5 4 ‐ ‐ 2.5 ‐ ‐ 1.8 ‐ ‐ 2

Dicalcium phosphate (P18) 1.8 1.8 2.4 1.8 1.8 2 1.8 1.8 2 1.5 1.6 2

Salt 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Mineral and multivitamin

(premix) 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

Total 100 100 100 100 100 100 100 100 100 100 100 100


197

Table 73: Dairy cattle feed formula.

Raw material (kg)

Calf

(Age 4‐6

weeks)

Growing

heifer

(Age 6‐12

weeks)

Dairy cow

(10‐15 kg milk/day)

Dairy cow

(15‐20 kg milk/day)

Pregnant cows

/Dry cow

Formula

1

Formula

2

Formula

3

Formula

4

Formula

1

Formula

2

Formula

3

Formula

4

Formula

1

Formula

2

Milled corn 43 ‐ 42 10 48.5 10 41 ‐ 27 ‐ ‐ 21

Cassava chip ‐ 30 ‐ 45 ‐ 33 ‐ 40 22 42 34.5 34

Rice bran 20 44.7 28 ‐ 28 28 28 10 ‐ 12 ‐ ‐

Soybean meal (44%

protein content) 24 24 8.5 16 10 ‐ 15 10.25 14 16 ‐ ‐

Oil palm kernel meal 18 ‐ ‐ ‐ 12.5 14 ‐ ‐ ‐ ‐

Fish meal (55%

protein content) 5 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Leucaena leaf

meal/cassava leaf

meal

‐ ‐ ‐ ‐ ‐ ‐ 20 15 ‐ 10 100

Cottonseed meal ‐ ‐ ‐ ‐ 25.5 ‐ ‐ 20 28 32 32

Coconut meal 5 ‐ ‐ 24.5 10 ‐ ‐ ‐ ‐ ‐ ‐ ‐

Shell ‐ 0.75 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Dicalcium phosphate ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐

Salt ‐ 0.3 0.75 0.75 0.75 0.75 0.75 0.75 1 1 0.5 1

Urea ‐ ‐ 1 1 1 1 1 2 ‐ ‐ ‐ ‐

Mineral and vitamin 3 0.25 1.75 1.75 1.75 1.75 1.75 2 1 1 2 2

Total 100 100 100 100 100 100 100 100 100 100 100 100


198

Table 74: Beef cattle feed formula.

Raw material (kg)

Age 7‐12 month or underweight 200 kg Older than 1 year or over weight 200 kg

Formula

1

Formula

2

Formula

3

Formula

4

Formula

5

Formula

1

Formula

2

Formula

3

Formula

4

Formula

5

Milled corn 70 40 35 10.4 25 70 35 25 ‐ ‐

Cassava chip ‐ 30.4 35 65 50 ‐ 35 55.4 67.9 82.4

Rice bran 20.4 ‐ 15.4 ‐ 10.4 20 18.4 ‐ 20 ‐

Soybean meal (44% protein content) 5 5 ‐ 10 10 8 8 ‐ 8 ‐

Cottonseed meal ‐ 10 ‐ 10 ‐ ‐ ‐ ‐ ‐ 13

Dried Leucaena leaf ‐ 10 10 ‐ ‐ ‐ ‐ 15 ‐ ‐

Urea 2.5 2.5 2.5 2.5 2.5 ‐ 1.5 2.5 2 2.5

Bone meal/dicalcium phosphate 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5

Salt 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Sulphur powder 0.1 0.1 0.1 0.1 0.1 ‐ 0.1 0.1 0.1 0.1

Total 100 100 100 100 100 100 100 100 100 100


199

Table 75: Goat feed formula.

Raw material (kg)

Weaner goat

(Age 3‐7 months)

Fattening goat

(Older than 7 months) Doe

Goat

(Older than 1 year)

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Formula

4

Formula

5

Formula

1

Formula

2

Formula

3

Formula

1

Formula

2

Formula

3

Milled corn 40 ‐ ‐ 50 ‐ ‐ ‐ ‐ 50 ‐ ‐ 56.5 ‐ ‐

Broken rice ‐ 40 ‐ ‐ 50 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Cassava chip ‐ ‐ 36 ‐ ‐ 45 40 45 ‐ 46 45 ‐ 46.5 45.5

Rice bran 20 20 25 10 10 18 15 16 10 ‐ ‐ 20 ‐ ‐

Soybean meal (44%

protein content) 8 8 12 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Coconut meal 24.5 25.5 19.5 26.5 26.5 23.5 26.5 ‐ 26 25 20 ‐ 20 18

Oil palm kernel meal ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20.5 ‐ ‐ 21 ‐ ‐ 18

Dried leucaena leaf

(premium grade) 5 5 5 10 10 10 10 10 10 10 10 15 15 15

Dried soybean

residue ‐ ‐ ‐ ‐ ‐ ‐ 5 5 ‐ 15 ‐ 5 15 ‐

Urea (46‐0‐0) ‐ ‐ ‐ 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5

Bone meal/dicalcium

phosphate 1 1 1 1 1 1 1 1.5 1.5 1.5 1.5 1 1 1

Salt 1 1 1 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9

Mineral and

multivitamin/premix 0.5 0.5 0.5 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Sulphur powder ‐ ‐ ‐ 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100


200

8. Price of animal feed in Thailand

Table 76: Price of animal feed in Thailand.

Products Price (Aug‐Dec 2011) Price (Jan‐Aug 2012)

baht/30 kg baht/kg baht/30 kg baht/kg

Livestock feed (concentrate)

Broiler starter 668 22.27 668 22.27

Chick grower‐layer 601 20.03 601 20.03

Layer 602 20.07 602 20.07

Piglet 705 23.50 705 23.50

Pig fattening‐grower 675 22.50 675 22.50

Pig fattening‐finisher 653 21.77 653 21.77

Duck layer 927 30.90 927 30.90

Livestock feed (powder)

Layer 445 14.83 445 14.83

Livestock feed (pellet)

Chick starter‐layer 471 15.70 471 15.70

Piglet 490 16.33 490 16.33

Pig fattening‐grower 478 15.93 478 15.93

Pig fattening‐finisher 463 15.43 463 15.43

Duck starter‐layer 637 21.23 637 21.23

Source: Office of Agricultural Economics

201

9. List of sugar‐based fermentation factories in Thailand

Table77:ListofMSGandL‐lysinefactoriesinThailand.

Factory Address Capacity (ton/yea

r) Raw material Products

Ajinomoto (Thailand) Co., Ltd.

6 Moo 2 Soi Suk Sawat 43, Suk Sawat Rd., Bang Kru, PhraPradaeng, SamutPrakan 10130 Tel. 02‐4626331‐3

60,000

Cassava starch

MSG


369 Moo 3 KamphaengPhe‐ThaMakhuea Rd., Khonthi, Muang KamphaengPhet, KamphaengPhet 62000 Tel. 055‐718101‐6

40,000

Cassava starch

MSG, riboneucleotid

e


329 Rd., Pak Chan, NakhonLuang, PhraNakhon Si Ayutthaya 13260

60,000 Cassava starch

MSG

Thaichuros Co., Ltd.

48 Moo 9 Suk Sawat Rd., Bang Kru, PhraPradaeng, SamutPrakan 10130 Tel. 462‐5113

14,400

Molasses/ Cassava starch

MSG

Thaichuros Co., Ltd.

18/1 Moo 5 Suchat Phattana 1 Rd., Bang Si Pa, Bang Len, Nakhon Pathom 73130 Tel. 034‐391016‐9

14,400

Molasses MSG

Thai Fermentation Industry Co., Ltd.

15 Moo 17 Saeng Chuto Rd., Tahpa, Banpong, Ratchaburi 70110 Tel. 032‐211331

10,800

Molasses/ Cassava starch

MSG

K T MSG Co., Ltd.

9 Moo 4 Ayutthaya‐Ang Thong Rd., Bang Sadet, Pa Mok, Ang Thong 14130 Tel. 035‐661600

10,000

Molasses MSG


99 Moo 1 WatDaowadung‐Pathum Thani1 Rd., Bang Kadi, Muang Pathum Thani, Pathum Thani 12000 Tel. 02‐9639324‐7

n.a. Cassava starch

L‐Lysine

202

10. List of organic acid factories in Thailand

Table78:ListoforganicacidfactoriesinThailandNo. Name Address Product Production

capacity

1 Sunshine Biotech International Co., Ltd.

Moo 4, Tambon Tha Tum, Sri Maha Bodhi, Prachinburi. 25140

Citric acid 40,000 tons/year

2 Citric Acid Industry Co., Ltd.

231 Moo 4, Soi Bang Pu Industrial Estate 2, Sukhumvit Rd. Tambon Praeksa, Muang Samut Prakan, Samut Prakan. 10280


3 Niran (Thailand) Co., Ltd. 8 Moo 2, Tambon Nong Bua, Ban Khai, Rayong. 21120

Citric acid anhydrate

40,000 tons/year

4 Thai Citric Acid Co., Ltd. 5/12 Moo 3, Thonburi‐Pak Tho Rd. Tambon Bang Kra Chao, Muang Samut Sakhon, Samut Prakan. 74000


5 Cofco Biochemical (Thailand) Co., Ltd.

263 Moo 11, Tambon Nong Bua, Ban Khai, Rayong. 21120


6 Purac Thailand Ltd.

3 Moo 2 Asia Industrial Estate, Bangchang, Rayong, 21130, Thailand

Lactic acid 100,000 tons/year

7 Purac Thailand Ltd.

3 Moo 2 Asia Industrial Estate, Bangchang, Rayong, 21130, Thailand

Lactide (Derivatives of lactic acid for making Polylactic acid

75,000 tons/year

203

9. Current situation of fuel ethanol factories in Thailand

Table 79: List of fuel ethanol factories in Thailand

Type of feedstock

Licensed factories Operating factories Under construction factories

Number of

factories

Production capacity (ML/day)

Number of

factories


Number of

factories


Molasses 14 2.55 11 1.6 ‐ ‐

Cassava 25 8.6 4 0.8 5 2.0

Multi‐feedstock 7 1.0 3 0.5 1 0.2

Sugar cane 1 0.2 1 0.2 ‐ ‐

Total 47 12.3 19 3.1 6 2.2

Source: Modified from Ministry of Energy

Table 80: List of ethanol factories, which are operating and under construction in Thailand.

Factory Location Raw Material Capacity (L/D)

1. Pornvilai International Group

Trading Co., Ltd.

Ayutthaya Molasses 25,000

2. Thai Alcohol Public Co., Ltd. Nakhon Pathom Molasses 200,000

3. Thai Agro Energy Co., Ltd. Suphanburi Molasses 150,000

4. Thai Nguan Ethanol Co., Ltd. Khon Kaen Cassava 130,000

5. Khon Kaen Alcohol Co., Ltd. Khon Kaen Cane/Molasses 150,000

6. Petro Green Co., Ltd. Chaiyaphum Cane/Molasses 200,000

7. Thai Sugar Ethanol Co., Ltd. Kanchanaburi Cane/Molasses 100,000

8. KI Ethanol Co., Ltd. Nakhon

Ratchasima

Cane/Molasses 100,000

9. Petro Green Co., Ltd. Kalasin Cane/Molasses 200,000

10. Ekarat Pattana Co., Ltd. Nakhon Sawan Molasses 200,000

11. Ratchaburi Ethanol Co., Ltd. Ratchaburi Cassava/Molass

es

150,000

12. Thai Roong Ruang Energy Co., Ltd. Saraburi Cane/Molasses 120,000

13. ES Power Co., Ltd. Sra Kaeo Cassava/Molass

es

150,000

14. Sapthip Co., Ltd. Lopburi Cassava 200,000

15. Mae Sod Clean Energy Co., Ltd. Tak Cane juice 200,000

16. Tai Ping Ethanol Co., Ltd. Sra Kaeo Cassava 300,000

17. PSC Starch Products Co., Ltd. Chonburi Cassava 150,000

204

Factory Location Raw Material Capacity (L/D)

18. Petro Green Co., Ltd. Suphanburi Cane/Molasses 200,000

19. Khon Kaen Alcohol Co., Ltd. Kanchanaburi Molasses/Cane/

Cassava

150,000

20. TPK Ethanol Co., Ltd. Phase 1

Nakhon

Ratchasima Cassava chips 340,000

TPK Ethanol Co., Ltd. Phase 2, 3

Nakhon

Ratchasima Cassava chips 680,000

21. Thai Agro Energy Co., Ltd. Phase 2 Suphanburi Cassava chips 200,000

22. Double A Co., Ltd. Phase 1* Prachinburi Starch 250,000

23. Sima Inter Products Co., Ltd. Chachoengsao Cassava Root 150,000

24. Impress Technology Co., Ltd. Chachoengsao

Cassava Chips/

Molasses 200,000

25. Ubon Bio Ethanol Co., Ltd. Ubon Ratchathani

Cassava

Chips/Molasses 400,000

205

Annex4:DetailedCountryReport‐Vietnam1. Executivesummary

This report presents findings from a market study of the range of potential cassava waste

solutions in Vietnam under Gratitude Project Work Package 1 (WP1). The Gratitude project

investigates Gains from Losses of Roots and Tubers (Cassava and Yam) with special

emphasis on developing useful products from waste (leaves, stems, peels, liquid waste and

pulps) in Ghana, Nigeria, Thailand and Vietnam. The project is funded by the European

Union (EU). The overall objective of Work Package 1 (WP1) is to ensure that technologies

developed by Gratitude concerning waste products and ways of reducing losses are

commercially viable for key actors in the value chain for cassava products. In particular, the

objective of this report is to examine the market potential of alternative market outlets for

food products from wastes, as developed in the Working Package 4 (WP4) including cassava

mash from beer production; cassava stems and leaves.

Cassava beer production is being considered in Vietnam by SABmiller. Waste from the

production, cassava spent mash is a promising substitution for snacks while product

diversification is needed and consumers care more on healthy diet.

Vietnam harvested 9.87 million tonnes of cassava fresh roots in 2011. This corresponds with

almost an equivalent volume of cassava stems and leaves that are waste. An insignificant

proportion of cassava stems is used for the replanting, almost all that remains is burned or

composted to produce organic fertiliser.

Other wastes of the cassava processing in Vietnam have been actually well treated or

reused: waste water for biogas production, pulps for animal feed production etc.

This study focuses mainly on the potential use of cassava spent mash in snacks, of cassava

stems for mushroom substrate substitution and of cassava leaves in animal feed in Vietnam.

Key findings are outlined below:

Cassava spent beer in snack production

Beer industry in Vietnam sees total volume growth of 13% to reach 2.6 billion litres in 2011

and is expected to reach 3.7 billion litres in 2016. Standard lager continues to be the largest

and fastest‐growing category thanks to further expansion of local players as well as new

participation of many international players. Beer witnesses stiffer competition in 2011 as

local players try to expand their presence into untapped market areas. The potential to

develop new kinds of beer is highly appreciated in Vietnam.

It is recommended that cassava‐based beer would fit into the market for low‐income people

who are consuming draught beer produced by unbranded breweries with doubtful quality.

These cassava‐based beers would be new kinds of beverages and promote sustainable

development of cassava plantation in Vietnam.

206

Using cassava beer spent for snack food could be an innovative and attractive way to get

more value added from by‐products from cassava‐based beer production. Due to estimated

low price, adding cassava beer spent could reduce the cost of production if the texture and

quality of snacks are do not change, this is one of our desire when carrying out this project.

Another suggestion came from the fact that the health conscious are more paid attention

on, and with its high dietary fibre, cassava beer spent is one promising ingredient to

produce new brand of extruded snack. It is recommended that the new brand of snack

foods, which are supplemented by cassava beer spent, would be regarded as a kind of

functional snack food that provides the consumers with more fibre, low energy, more

digestible and at an affordable price. Vietnamese have yet paid attention for this kind of

snack.

Cassava pulp in mushroom substrate substitution

The annual production of mushroom has reached 250,000 tonnes of all kinds of fresh

mushrooms. The price of mushroom is rising. 90 million USD is the amount of mushroom

export turnover in 2011. Vietnam targets to obtain 150 to 200 million USD in mushroom

export turnover in 2015.

Agricultural activity in Vietnam discharges around 40 million tonnes of organic wastes and

almost all of them have potential to be used as substrate in mushroom production. After

harvesting, millions of tonnes cassava stems are waste with no specific use. According to

preliminary studies, cassava stems are promising material for mushroom substrate.

SWOT analysis reveals the strength, weakness, opportunities and threat of the Vietnam

mushroom sector and the use of cassava stems in mushroom substrate substitution. Huge

supply source, low material cost and seasonal alternative of other agricultural waste make a

high potential use of cassava stems as a mushroom substrate substitution. However, the

potential toxic compounds which present in cassava stems may are limiting factors for its

use in mushroom cultivation and quality, it is necessary to investigate more in order to

understand better this effect and to complete the technique of using cassava stems in

mushroom production.

Cassava leaves in animal feed industry

With a population of 86 million in 2010 projected to reach 90 million in 2012, Vietnam’s

meat consumption is high compared to other countries in the regions. Average annual meat

consumption is more than 40 kg per capita (not including seafood), among which pork

account for 80 %, poultry 12‐15% and the rest is from cattle (beef, buffalo and other animals

such as goat and sheep). Ninety‐nine per cents of meat are for domestic consumption31. The

31 Ministry of Agriculture and Rural Development, Department of Livestock Production (2009), Livestock

Development Strategy to 2020, Publishing House for Science and Technology, pp 140.

207

fishery industry also contributes to a significant production of 5.8 million tonnes in 2012,

among which 3.2 million tonnes are from aquaculture (68 per cent of which are from fresh

water such as pangasius and shrimp, 32 per cents are from marine fish). This source of

fisheries products is an important export commodity contributing to nearly USD 6.2 billion

export value.

In Vietnam, about 86% of total animal feed supplies are from industrial factories which need

raw materials for feed processing. Feed demand for livestock and poultry for the country is

high leading to large amounts of imported materials for feeds such as corn, wheat, and soy

meal. Total imported value of raw materials for animal feeds for 2012 is expected to be over

USD 2.5 billion32. Vietnamese animal feed prices are now 20% higher than the same goods

in other regional countries as the local feed industry depends too heavily on imported

materials, said Vice President Pham Duc Binh of the Vietnam Animal Feed Association.

The substitution of cassava leaves in the animal feed composition is a potential

opportunities to reduce feed production costs for pig and poultry production. Cassava

leaves being high in protein content, fibrous and other nutritive components can be a good

source for animal feedings. However, high cyanogenic glycoside and tannin in cassava leaves

is a limiting factor for the digestibility of the monoruminant animal such as pig. Several

studies have been carried out for appropriate use of cassava leaf in animal feed such as pigs

and chicken to ensure nutritional value and reduce the cyanogenic glycoside content.

The SWOT analysis of cassava leaf as a substitution in animal feed revealed that the main

strength of cassava leaf is its rich source of protein, fibre and pigments for animal feed, its

availability with large quantity thanks to large cassava production, and the cassava leaf

would be an important source of nutrients for animal feeds. However, the toxic compounds

which are presents in the leaf are the limiting factors for usage in the animal feed, it is

necessary to have technological solutions for reducing the production costs of the digestible

form of cassava leaf for raising animal (livestock, poultry and fish). With the increase of

population as well as rapid economic growth in Vietnam in the near future, the

consumption for meat seafood and consequently the demand for animal feed will increase.

Substitution of cassava leaf in the animal feed would be an important solution for the

coming years.

2. Introduction

Cassava is among the four most important food crops in Vietnam. It has always been

considered a secondary crop even though it has played an important role in national food

security. During the 1980s and 1990s, cassava production in Vietnam was in decline. Since

1991, Vietnam Cassava Program (VNCP) has researched and transferred many new varieties

32MinistryofAgricultureandRuralDevelopment,CenterofInformationandStatistics,FinalReportontheImplementationof2012planinAgricultureandRuralDevelopment,Dec.2012

208

of cassava that gives high productivity and a high content of starch (28 ‐ 30%). In the past

twelve years, cassava production increased from 1.99 million tonnes in 2000 to 7.8 million

tonnes in 2006, 9.4 million tonnes in 2008 and 9.9 million tonnes in 2011.

Wastes generated in the cassava sector include stems and leaves, root outer peel, wet pulp,

and waste water. From the results of our Value Chain Analysis (VCA), the volume and the

actual reuse of these wastes in 2011 are reported as follow:

Vietnam harvested 9.87 million tonnes of fresh cassava roots (FCR) in 2011. This

corresponds with almost an equivalent volume of cassava stems and leaves that are waste.

An insignificant proportion of cassava stems is used for the replanting, almost all that

remains is burned or composted to produce organic fertiliser.

It is estimated that 1.3 million tonnes of cassava starch were processed in 2011 and this

translates into about 1.43 million tonnes of wet pulp. This waste is largely used in the

production of animal feed. In 2012, the price of dried pulp was at 2,000VND/kg.

The root outer peel that contains mainly cellulose is about 3% volume of FCR that is

occurred only in starch processing and is estimated at 0.24 million tonnes. This waste is

given for free and then burned or composted to produce organic fertiliser.

The volume of waste water in the starch processing is large. However at the medium and

large scale, waste water is collected and used for biogas production. This resource can

recover 85% of energy demand of the company.

The overall objective of this deliverable under Work Package 1 (WP1) is to ensure that

technologies developed by Gratitude concerning waste products and ways of reducing

losses are commercially viable for key actors in the value chain for cassava products.

This study focuses largely on generated wastes with significant amount that still not have a

specific reuse in order to create added value for these by‐products as well as to avoid

related environment problems. Three main wasted are considered: spent mash, cassava

stems and cassava leaves. This report therefore presents findings on market study of the

range of these potential cassava waste solutions in Vietnam.

3. Methodology

During the VCA survey, the relevant actors in the cassava value chain were identified.

Critical stages along the value chain where wastes are generated were then identified. At

these stages, interviews with key informants were conducted on the question of: what do

they do to these generated wastes. Literature review as well as industry players and expert

interviews on the various sectors under consideration for potential use of a range of

generated wastes were conducted. Key areas covered include description of the various

sectors, description of the market segments, SWOT analysis for the potential of cassava

209

wastes for the various sector components. Each SWOT analysis was conducted by a group of

two researchers.

4. Background

This section summarizes the situation of cassava production, cassava processing and the

wastes coming from this industry at different levels and scales. From this background, it is

expected to have an overview of cassava waste availability that can be utilised in a proper

way. According to the final report on the Vietnam’s cassava situation in 2011 of Ministry of

Agriculture and Rural Development, total cassava production of Vietnam in 2011 is 9.87

million tonnes, grown on 559,800 ha.

InVietnam,cassavaismostlyusedasfresh,chipandstarch:o Starch:eitherdrystarch(forexport,pharmaceutical,cardboardindustry,

modified starch industry, confectionery) or wet starch (for producingmaltosedextrin,cake,rice‐cassavapaper,noodle)

o Driedchipforexport,ethanolproductionandanimalfeedo Freshrootforhumanconsumptionandanimalfeedo In addition, by‐product of starch processing can be used for several

purposes,mainlyasanimalfeed In2009,thereare110cassavadrystarchprocessingfactoriesatindustrialscale

in Vietnam (medium and large scale) with design capacityisover2.2milliontonnes ofcassava starch/year. The actualproduction, however, isabout1.3milliontonnesofcassavastarch(60%ofdesigncapacity)

In 2011, Viet Nam exported about 2.5 million tonnes of cassava starch andcassavadrychipswithexportturnoverof952millionUSD.ThemajormarketisChina(90%),followedbyKorea(6%),andTaiwan(2%).

ThemajorcassavawastesinVietnamarerootouterpeels/skins;wastewater+particles, pulp (fibre that remains after starch extraction from root), cassavaleavesandstems.

At dry starch processing stage at industrial level, wastes of cassava root come from:

Outerpeelandsoilsattachedwiththeroot:about3%offreshroot.Thiswasteisgiventofarmerforfreeanduseasfertilizer.

Pulpafterextractionofstarch:containcellulose,remainingstarchthatattachedtothecellwall.Thiswasteiscollected,driedandsoldforanimalfeedproducer.

Wastewaterforwashingandextractionofstarch.Thisliquidflowalsocontainssomestarchandneedfurthertreatmenttocreatebiogasandbeabletodischargetotheenvironment.Thebiogascansupplyabout85%oftotalfuelrequirementfordryingpulp.

210

At craft village33 where most of traditional starch processing units are located, when cassava

roots have to be processed to wet cassava cake and further processed into dry starch

cassava, wastes from wet starch processor and dry starch processor are:

Outerpeelandsoilsattachedwiththeroot:3%ofthevolumeoffreshroots.Thiswasteiscollectedandthengiventofarmerforfreeanduseasfertilizer.

Pulpfromwetstarchprocessorthatcontainscellulose,starch:25%oftheweightof fresh roots. Thiswaste is collected and thendried and sold for animal feedproducer.

Blackstarch:3‐5%ofthevolumeoffreshroots.Thiswasteisusedforfeedingpigs.

Wastewater.Atthislevel,wastewatertreatmentisstillmissing.

For cassava chip processing, at medium and large production, almost no waste was reported

due to the production of cassava chip is without peeling.

During VCA study, we found that almost all cassava leaves and stems are not utilized

efficiently. They are burnt or made compost by leaving on farms. With average production

in the order of 7 to 12 tonnes leaves/ha/year in a production area of more than 559,000 ha,

this is an important biomass for use for growing mushroom as well as animal feeding. The

waste from cassava can also be an important starch and fibre source for food industry. In

the following section, we will try to analyse the market potential of cassava wastes in

making snack, growing mushroom and in the formulation of animal feeds. Table 81

summarizes different types of wastes generated during cassava production and processing

in Vietnam.

Table 81. Summary of wastes generated from cassava production and processing sector in

Vietnam

Wastes Ratio Volume Location Current use

Peel 3 % FCR from starch

processing

10% from chip

processing (small

proportion)

At processors Fertilizers

Black starch 3 ‐ 5 % FCR from wet

starch processing

20,000 tons At cassava craft village Animal feed, mainly

for pig raising

Dry pulp 5‐7.5% FCR 0.3 mil. Mt At starch processor Animal feed

Waste water 6.3 m3/ ton FCR 30 mil. m3 At starch processors Biogas treatment at

33Agenerictermforvillageswhereatleast50%ofhouseholdsengageinoff‐farmactivitiesandatleast30%ofthevillage’sincomeisderivedfromoff‐farmactivities.

211

industrial level

Stems Around 10 Mt/ha 5 mil. Mt on farm Propagation for next

season

Small amount for

Earwood mushroom

breeding

Leaves 7‐12 Mt/ha 3.5 – 6 mil.

Mt

on farm Burn

Making compost

5. PotentialfortheuseofCassavaSpentasSupplementforSnackFood

Around the world, alcohol beverages such as beers, wines and spirits are an important part

of day life. Their moderate consumption in a social environment has been regarded as a

boon for both body and soul. Many are the proposals of marriage, forging of business

partnerships and fruitful scientific discussions that have taken place through the centuries

over a drink or two in a bar, or over dinner at home. Beers are specifically enjoyed around

the world: they are prepared thanks to many different recipes and procedures, giving many

hundreds of different brands or styles, from pale Pilsners and wheat beers to brown ales,

porters and stouts… Beverages brewed from cereals other than barley or wheat, such as

maize, millet and rice (and without the use of hops) are enjoyed by many people in Africa,

Asia, and Central and South America (Buglass 2011, Eßlinger 2009).

Figure 52: Brewing process (SABMiller 2012, Buglass 2011)

212

Beers and beer‐like beverages may be prepared from raw cereal grains, malted cereal grains

and (historically) bread. The simplest preparation of European‐style beers involves (a)

incubating and extracting malted, ground up cereal grains (usually barley) with warm water.

Sometimes the ground malt is mixed with other starchy materials and/or enzymes. (b) The

solution obtained is boiled with hops or hop preparations. (c) The boiled solution is clarified

and cooled. (d) The cooled liquid is fermented by added yeast. Usually the beer is clarified,

packaged and served while effervescent with escaping carbon dioxide. In this chapter the

preparation of beers is outlined and the brewers' vocabulary is introduced. Beers are made

in amounts ranging from a few hectolitres (hl) a week to thousands of hl. They are made

using various different systems of brewing (Dennis E. Briggs 2004, Eßlinger 2009, Buglass

2011).

6. DescriptionofbeersectorinVietnam

Vietnamese consumers have regarded Beer as a kind of necessity, either in business

meetings or in informal gatherings of friends. Some consumers also had a habit of drinking

beer during their meal to help them easily digest food. Hence, despite its slower growth

compared to 2010, beer continued to see strong growth of 13% in total volume in 2011

(Euromonitor‐International 2012, Minister‐of‐Trade‐and‐Industry 2009).

Sales were driven by intensive expansion of key players to respond to increasing consumer

demand. Local players such as Saigon Alcohol Beer & Beverages Corp (Sabeco) and Hanoi

Alcohol Beer & Beverages Corp (Habeco) continuously built new brewery plants. Moreover,

they also reached out to new markets. For example, Sabeco tried to expand into the

northern parts of Vietnam and Habeco into the southern parts to increase their market

shares. At the beginning of 2011, Sabeco celebrated its achievement of producing one billion

litres of beer per year. This event proved that beer has very strong potential in Vietnam

(Euromonitor‐International 2012).

Lager remained the dominant and only major type of beer in the market. Other types of

beer, such as dark beer, stout and low‐alcohol beer were still negligible. The low presence of

other types of beer was due to the fact that Vietnamese consumers were already acquainted

with the taste of lager, and reluctant to try other kinds of beer. Other types were either too

strong or too bitter for them. Low‐alcohol beer recently gained favour among female

consumers as they generally had a lower alcohol tolerance level than male consumers (Table

82).

In 2011, standard lager displayed the highest growth rates in both value and volume terms.

The growth was fostered by rapid expansion of domestic players in terms of production

facilities, such as bottling, brewery plants, and new product launches. An increase in income

levels of Vietnamese consumers also contributed to healthy growth of standard lager as

consumers were shifting from economy lager brands to standard or premium brands.

The category saw two new brands from major players ‐ Tiger Crystal from Vietnam Brewery

213

in 2009 and 333 Premium from Sabeco in 2010. Both domestic and international players also

made huge investments in public relations events and marketing activities to attract

consumers. For example, in May 2011, Vietnam Brewery introduced the limited edition

Heineken STR bottle. The event “Light up the light” was hosted at Bitexco Tower, the highest

tower of Ho Chi Minh City, to signify the premium status of the brand Heineken.

Inflation has raised input prices, including the price of malt, sugar and rice, which led to an

increase in the unit price of beer. During special occasions like Lunar New Year, beer prices

rose sharply and uncontrollably in response to increased demand.

Men remained the main consumers of beer. In 2011, however, with the availability of light

beer, the market also saw increasing demand from female consumers, in both on‐trade and

off‐trade channels. In the past, beer drinking was traditionally perceived as a habit for men

only. However, as consumers had more exposure to Western culture, the perception of

drinking changed. People now considered it as a recreational drink suitable for both genders.

The on‐trade channel accounted for the major share of total volume sales. Thanks to the

increasing income levels and busier lifestyles, Vietnamese people tended to eat out more

often. Moreover, the food service industry saw big developments in terms of new outlets

and revenue streams. All the above factors contributed to healthy growth of beer via the on‐

trade channel in the country.

Glass bottles were popular within on‐trade channels, where a deposit system was employed

and food outlets paid a deposit for bottles. Metal beverage cans seemed to be more popular

within off‐trade channels as they were easier to store and transport.

Draught beer was previously produced by unbranded manufacturers with doubtful quality.

However, over the review period, on‐trade channels saw increasing numbers of food outlets

serving draught beer, originating from Germany, Belgium, or the Czech Republic. This

draught beer was brewed in the food outlet, and was offered at a considerably higher price

than normal beer. Although the sales of draught beer were still negligible in 2011, draught

beer is expected see high growth rates over the forecast period.

Sabeco continued to lead beer, holding a 48% share in volume terms in 2011 (Table 83, 84).

The company aggressively expanded its production facilities to further improve its leading

position. In September 2010 Sabeco launched 333 Premium, positioned as a premium

product as a response to the consumer trend of shifting to more high‐end products. The

product was widely distributed and sold in northern regions of the country. Other products

like Saigon Export, 333‟ export and Saigon Lager also enhanced their presence in both the

southern regions and northern regions, thanks to an effective distribution network. Vietnam

Brewery Limited and Habeco hold the second and third positions, respectively. Habeco

produced Hanoi beer, which was one of the most popular beer brands in the northern

regions (Table 85).

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Vietnam Brewery Limited (VBL) owned many popular domestic premium and standard beer

brands. Its most notable brands were Heineken and Tiger. The three top players Sabeco,

Vietnam Brewery and Habeco together hold more than 80% of volume sales of beer in 2011.

All of them possessed very strong brand names, together with dynamic advertising and

public relations activities, which helped them greatly to maintain their competitive position

over the review period.

In 2011, Habeco recorded the biggest increase thanks to its popular brand Hanoi in the

northern region, including Hanoi and surrounding provinces. With the opening of its newest

factory in Ba Ria‐Vung Tau province, in January 2011, Habeco slowly expanded its market

into the central and the southern parts. Toward the end of review period, Habeco started to

introduce its products in supermarkets and restaurants to fight against Sabeco, the market

leader in alcoholic drinks in the southern regions, for sales share.

Beer was dominated by domestic brands, in all three segments of premium, standard and

economy. The reason was the wide availability of domestic products and their affordable

prices, even for premium products. For example, the average unit price of domestic premium

brands was typically from one third to half the price of international premium brands.

Moreover, consumers were already familiar with the taste of domestic brands and they were

reluctant to try new tastes (Euromonitor‐International 2012).

Although only accounting for a minimal share of beer in Vietnam, international players still

found the local beer market very promising. International brands coming to Vietnam mainly

targeted affluent consumers. They mainly competed in the premium segment, with brands

like Heineken, Carlsberg, San Miguel, Corona, Budweiser or Asahi. Imported brands being

associated with status or prestige could be found in off‐trade channels, but they were mostly

consumed in bars and nightclubs. International brand owners usually ran extensive public

relations activities and events to create consumer awareness for their brand name.

In 2010, beer in Vietnam welcomed two new premium brands ‐ Tiger Crystal and 333

Premium ‐ in line with the premiumisation trend. Heineken also introduced its limited edition

SRT bottle. The product was sold at a price of five to eight times more than the normal

Heineken bottle. Although Heineken SRT was not widely sold, the launch event helped to

further enhance the premium position of Heineken in Vietnam. Heineken STR was considered

as the key packaging innovation in 2011. Its bottle was made from UV‐sensitive ink

illuminates. Therefore, it would reveal a spectacular sky filled with shooting stars in dark

environments like a nightclub. Heineken STR was able to create a unique experience for an

audience to enhance its premium position (Euromonitor‐International 2012).

The three price beer segments of beer aimed at various consumers and regions. Premium

and standard beer manufacturers tended to focus on executing various marketing and public

relations activities and expanding their retail network in urban areas where people were

willing to pay a high price for quality. On the other hand, economy brand players normally

concentrated on building their distribution system in rural areas and the outskirts of cities,

215

where competition remained low and consumers were very price conscious (Euromonitor‐

International 2012).

Table 83 Lager by Price Band 2011

Category Price range per litre [VND]

Premium 35,000‐50,000

Standard 21,000‐35,000

Economy 16,000‐20,000

1 USD = 22,800 VND

Private label was still in its introductory stage. In 2011, Big C, one of the major hypermarket

chains, introduced more beer under its own private label WOW! (Giá hấp dẫn ‐ Interesting

Price), which was offered at a price compatible with economy brands. This product affirmed

Casino Guichard‐Perrachon SA’s ambition to diversify its private label to create its unique

position to deal with the increasingly intense competition in the grocery retailing channel.

Sabeco and Habeco accounted for a large share of sales in Vietnam. The two companies

contributed greatly to the development of the beer industry in Vietnam. Their main focus

was standard and economy lagers for domestic and export markets. Sabeco was the biggest

player in beer in 2011. The company had a wide distribution network, especially in southern

Vietnam. Sabeco put lots of effort and investment into several production facilities to cater

for domestic and export markets. The company also tried to tap into the premium segment,

with the launch of 333 Premium in 2010, to compete with other premium standard lagers.

The biggest export markets for Vietnamese beers were Southern European countries,

Taiwan, China, Japan and Australia. Beer manufacturers also tried to capture new markets,

such as Southeast Asian countries like Thailand, Laos and Cambodia as well as Northern

European countries. About 20% of local manufacturers output was for overseas consumption.

With regard to imported beer, brands from Australia, the US, the Czech Republic and

Germany were among the most popular in Vietnam. Imported brands came with higher

prices, thus catering to the premium segment of lager. Overall, domestic beer still accounted

for very nearly 100% of sales in total volume terms. Although imported premium lager saw

robust growth in 2011, the category remained minimal in terms of volume sales. Many

Vietnamese consumers found that the prices of imported beer were too expensive,

compared to domestic beer.

Table 82: Sales of Beer by Category: Total Volume 2006‐2011 (million litres)

2006 2007 2008 2009 2010 2011

Lager 1,334.20 1,547.30 1,752.50 2,021.70 2,303.00 2,595.40

‐ Premium Lager 151.6 164.5 179.4 194 209.5 225.7

‐‐ Domestic Premium 151.2 164.1 178.9 193.5 208.9 225.2

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Lager

‐‐ Imported Premium Lager

0.4 0.5 0.5 0.5 0.5 0.5

‐ Standard Lager 635.5 768.2 912 1,157.50 1,397.60 1,650.90

‐‐ Domestic Standard 635.5 768.2 912 1,157.50 1,397.60 1,650.90

Lager

‐ Economy Lager 547.1 614.6 661.2 670.2 696 718.8

‐‐ Domestic Economy Lager

547.1 614.6 661.2 670.2 696 718.8

‐‐ Imported Economy Lager

‐ ‐ ‐ ‐ ‐ ‐

Stout ‐ ‐ ‐ ‐ ‐ ‐

Total 1,334.20 1,547.30 1,752.50 2,021.70 2,303.00 2,595.40(Source: Euromonitor International report from trade sources/national statistics, 2011)

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Table 83: Sales of Beer by Category: Total Value 2006‐2011 (billion VND)

2006 2007 2008 2009 2010 2011

Lager 42,858.90 50,736.70 58,342.80 68,954.10 80,097.10 95,829.90‐ Premium Lager 6,289.20 6,922.50 7,683.00 8,661.40 9,705.70 11,170.70‐‐ Domestic Premium Lager 6,242.50 6,872.90 7,629.90 8,604.20 9,643.90 11,100.70‐‐ Imported Premium Lager 46.6 49.6 53.1 57.2 61.9 70‐ Standard Lager 20,557.40 25,483.20 30,749.20 39,817.70 48,809.90 61,340.60‐‐ Domestic Standard 20,557.40 25,483.20 30,749.20 39,817.70 48,809.90 61,340.60Lager ‐ Economy Lager 16,012.20 18,331.00 19,910.60 20,475.00 21,581.40 23,318.70‐‐ Domestic Economy Lager 16,012.20 18,331.00 19,910.60 20,475.00 21,581.40 23,318.70Total 42,858.90 50,736.70 58,342.80 68,954.10 80,097.10 95,829.90

Table 84: Company Shares of Beer by National Brand Owner 2007‐2011 (% volume total)

Company 2007 2008 2009 2010 2011

Saigon Alcohol Beer & Beverages Corp (Sabeco) 42.4 44.2 44.9 45.4 47.5Vietnam Brewery Ltd 21.1 20.4 19.3 18.8 18.2Hanoi Alcohol Beer & Beverages Corp (Habeco) 14.2 13.8 15.1 16.1 17.3Hue Brewery Ltd ‐ HBL 6.8 7.4 7.8 7.9 7.8Thanh Hoa Beer JSC 2.1 2.1 2.2 2.1 2.1South East Asia Brewery Ltd 3.7 3.1 2.6 2.3 1.4San Miguel Brewery 0.8 0.8 0.7 0.6 0.5Dong Xuan Liquor Co Ltd 1 0.9 0.7 0.6 0.5Others 8 7.4 6.7 6 4.7Total 100 100 100 100 100

Table 85: Company Shares of Beer by Global Brand Owner 2007‐2011 (% volume total)

Company 2007 2008 2009 2010 2011

Saigon Alcohol Beer & Beverages Corp (Sabeco) 42.4 44.2 44.9 45.4 47.5Hanoi Alcohol Beer &Beverages Corp (Habeco) 16.3 15.8 17.3 18.3 19.4Carlsberg A/S 10.5 10.5 10.3 10.2 9.2Heineken NV 8.8 8.7 8.4 8.1 7.7SABMiller Plc 0 0 0 0 6.4Asia Pacific Breweries Ltd 4.6 4.3 3.9 3.9 4San Miguel Brewery Inc ‐ ‐ 0.7 0.6 0.5Oetker‐Gruppe 1 0.9 0.7 0.6 0.5

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Foster's Group Ltd 7.7 7.4 7.1 6.8 ‐San Miguel Corp 0.8 0.8 ‐ ‐ ‐Others 8 7.4 6.7 6 4.7Total 100 100 100 100 100

(Source: Euromonitor International report from trade sources/national statistics, 2011)

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Table 86: Brand Shares of Beer 2008‐2011 (% volume)

Brand (Global Brand Owner) Company 2008 2009 2010 2011

Saigon Export Sabeco 16.6 19.8 21.7 24Hanoi Habeco 12 13.4 14.6 15.8333' export Sabeco 10 12.1 13 14.4Saigon Lager Sabeco 16.9 12.4 10.1 8.4Heineken VBL 8.7 8.4 8.1 7.7Huda (Carlsberg A/S) Hue

Brewery Ltd ‐ HBL 5.3 5.7 5.9 5.8

Tiger VBL 4 3.6 3.6 3.8Larue (SABMiller Plc) VBL ‐ ‐ ‐ 3Foster's (SABMiller Plc) VBL ‐ ‐ ‐ 2.3Thanh Hoa (Habeco) Thanh

Hoa Beer JSC 2.1 2.2 2.1 2.1

Larue (Foster's Group Ltd) VBL 3 3 3.1 ‐Foster's (Foster's Group Ltd) VBL 3.3 3 2.7 ‐Others Others 18.1 16.5 15.1 12.5Total Total 100 100 100 100

(Source: Euromonitor International report from trade sources/national statistics, 2011)

Habeco brands Sabeco brands

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SABMiller brands in Vietnam Vietnam Brewery Limited brands

Figure 53: Some typical beer brands in Vietnam

Overall for the year of 2012, Vietnam will produce 2.9 billion litres of beer, corresponding to an increase of 11% compared with the production in 2011 (VBA, 2012).

To satisfy the beer market demand, Vietnam has spent each year more than 100 million USD

to import around 250,000 tonnes of barley malt as raw materials for beer production,

represented up to 10% of total imports.

SABmiller, the second world's largest brewer, experienced last year launching in

Mozambique the first ever commercial‐scale cassava‐based beer. The beer, ‘Impala' using

70% cassava represents new opportunities for subsistence farmers. The launch marks the

latest step of SABMiller's ambition to create a portfolio of high quality, affordable beers

made using locally sourced raw materials for lower income consumers in Africa. Looking at

the SABmiller experience in Mozambique, Vietnam can gain some experience in open of a

new market for cassava, one of largest local starch as raw materials for beer production.

Mozambican farmers potentially produce more than enough cassava than is required for

domestic consumption, but the surplus has never previously been used to brew beer

because of the logistical challenge of collecting the roots from smallholder farmers who are

widely dispersed, along with its rapid deterioration immediately after harvesting. Cassava is

an excellent source of starch, but starts to degrade almost immediately after it is harvested,

which, together with its high water content, makes it unsuitable for transporting over long

distances.

SABMiller Africa has estimated that the volume of the informal, unregulated alcohol market

across Africa could be up to four times that of the formal market. By using locally sourced

raw materials, it is possible to create high‐quality, affordable products for consumers who

would otherwise be drinking informal or illicit alcohol. At the same time, Africa's agricultural

potential is enormous, but currently under‐exploited. The private sector has a critical role to

play ‐ by creating market opportunities for subsistence farmers in our value chains, we are

able to increase their productivity allowing them to feed their families and generate an

income for the first time. Moreover, the rural regions targeted are extremely poor and the

farmers have previously struggled to sell more than a bag of cassava every two weeks. By

creating a sustainable, vibrant market for their crops, buying from them direct and helping

them to improve their yields, there is no doubt that this project will have a significant

impact on their lives and the local economy.

SABmiller is planning to apply this successful business in Vietnam and Asian countries as

Vietnam has a brewing industry that is big enough and increased each year. Moreover,

Vietnam is one of the biggest exporters of cassava starch and cassava chip over the world.

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The strategy to use local materials such as cassava to produce beer therefore decrease beer

production cost as well as the import of barley malt is innovative and promising.

Cassava‐based beer would fit into the market to develop new kinds of alcoholic beverage

that are of reasonably high quality and cheap for low‐income people such as farmers and

workers whose number is significantly increasing recently in many industrial zones in

Vietnam. At present, these people are consuming draught beer that has been produced by

unbranded manufacturers with doubtful quality. The market share might be expected to

reach around 10% of total share market, corresponding to 200‐250 million litres.

7. Descriptionofmarketsegmentsforsnackfoods

This part analyses the sweet and savoury snack foods industry in Vietnam. Products fall

within this category are rice, potato crisps, crackers, extruded snacks, fruits snacks, popcorn,

pretzels, tortilla/corn chips and other savoury snacks and nuts. The report excludes

confectionery and sweet snacks. Chips/ crisps mostly are fried sliced products made from

roots and some kinds of vegetable (such as carrot, etc.…) which Poca and O’star (fried sliced

potato chips) are the most famous ones. Fruit snacks (such as dried jack fruits) are dried or

preserved fruit usually sold in a pouch or deep fried fruits such as banana chips. Although

the fairly niche, fruit snacks attract consumers by its more natural ingredients, less

complicated manufacturing process, and custom’s belief in its nutritive values and health

effects. Popcorn occupies small niche, but popcorn sales are growing fast because of the

growth of cinemas, as people want to buy popcorn whenever they go to cinema. The most

popular types of snack are “other sweet and savoury snack” which includes jerky, scratching

and dried snacks made from meat, poultry or seafood. These are the oldest form of snack

and were consumed on any occasions, by singles or groups, by the young or the old.

Extruded snacks mentioned in this report are processed/ reconstituted/ shaped potato or

cereal‐ based snacks (direct or indirect expended) and some other rice crackers or semi‐

prepared/unfried extruded snacks. The development and expansion in this type of products

can be in ingredients, in flavours, in processing technology. Extruded snacks and chips were

favoured by the younger generation because of their enjoyable taste and dynamic

advertising activities, while the traditional snacks (e.g. nuts, beef jerky) are chosen by adults

(Euromonitor International, 2011). Moreover, major portion of extruded snack buyers are

students and young adults because it has low price.

According to Euromonitor International, sweet and savoury snacks register a growth rate of

17% in current value terms to reach sale of VND 5.3 trillion. It is expected that sweet and

savoury snacks’ performance in Vietnam will be good given increasing consumer demand

and improved living standards. People consume all kinds of snacks Vietnam and this kind of

products is expending, from urban areas to other less urbanised regions. Due to the fact

that per capita consumption for sweet and savoury snacks in Vietnam is still relatively low

compared to neighbouring countries, the potential for market expansion in the near future

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is huge. Better economic condition will revive consumers’ confidence in spending which is

another important factor to drive sales growth of this sector.

The market value has risen by 15% between 2007 and 2011. This is also due to an increase

in oil prices and other manufacturing costs and economic inflation. In addition,

manufacturers keep consumers on their toes by introducing diverse and uncommon

flavours as consumers like to try out new brands and flavours (Euromonitor‐International

2011). For example, at the beginning of 2010, KinhDo Corp conducted a nationwide

marketing campaign for its newly launched Sachi Extreme Taste extruded snack by the

interesting advertisements illustrated the products with playful images and emphasised its

unique spicy flavours of chilli and wasabi. This is regarded as a wise move from KinhDo to

enhance its position in extruded snack in particular, and in sweet and savoury snacks in

general (Euromonitor‐International 2011). Finally, the affordability of the products makes

snacks popular during economic downturns.

Table 87: Sales of Sweet and Savoury Snacks by Category: Volume 2006‐2011 (tonnes)

2006 2007 2008 2009 2010 2011

Chips/Crisps 1,255.20 1,437.20 1,616.90 1,810.90 2,039.10 2,251.10

Extruded Snacks 9,750.00 10,820.0

011,793.8

012,796.3

013,756.0

0 14,705.2

0

Fruit Snacks 492.3 571 639.6 713.1 798.7 881

Nuts 4,301.40 4,912.70 5,502.20 5,997.40 6,597.10 7,111.70

Popcorn 813.8 825.6 968.5 1,149.80 1,322.20 1,480.90Other Sweet and Savoury Snacks 6,191.10 6,841.10 7,456.80 7,904.30 8,339.00 8,764.30

Sweet and Savoury Snacks

22,803.80

25,407.70

27,977.80

30,371.70

32,852.10

35,194.10

Table 88: Sales of Sweet and Savoury Snacks by Category: Value 2006‐2011 (VND billion)

2006 2007 2008 2009 2010 2011

Chips/Crisps 120.8 144.9 173.2 204.4 242.2 293.8

Extruded Snacks 996.6 1,205.90 1,423.00 1,636.40 1,857.30 2,180.50

Fruit Snacks 46.4 57 70.7 87.4 106.1 127.7

Nuts 357.1 442.8 540.2 648.3 771.5 921.1

Popcorn 47.1 53 65.5 77 90.1 104.5

Other Sweet and Savoury Snacks 958.2 1,054.00 1,191.00 1,322.10 1,454.30 1,650.60

Sweet and Savoury Snacks 2,526.20 2,957.70 3,463.70 3,975.50 4,521.50 5,278.20(Source: Euromonitor International report from trade sources/national statistics, 2011)

Sweet and savoury snacks are sold in large number in grocery retailers as well as small

grocery retailers and independent small grocers (Table 87). Different flavours, different

packaging weights, different companies lead to different prices of products (Table 88).

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Table 89 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis 2006‐2011

2006 2007 2008 2009 2010 2011

Store‐Based Retailing 100 100 100 100 100 100

‐ Grocery Retailers 100 100 100 100 100 100

Supermarkets/Hypermarkets 8.6 9.8 14.3 18 21.8 25

Small Grocery Retailers 61.9 61.2 57.7 55 52.2 49.5

Convenience Stores 1.1 2.8 3.2 3.6 3 1.5

Independent Small Grocers 60.8 58.4 54.5 51.4 49.3 48

‐ ‐ Other Grocery 29.5 29 28 27 26 25.5

Total 100 100 100 100 100 100(Source: Euromonitor International report from trade sources/national statistics, 2011)

Table 90 Retailer price of various kinds of snack in different companies in Vietnam,

Products Productioncompany

Weight package (g) Price ( VNÐ)

Snack Poca (baked lobster flavour) PepsiCo 60 12.000

Snack Poca (ribs flavour) PepsiCo 60 12.000Snack Poca (natural potato classic flavour) PepsiCo 60 12.000Snack Poca Swing (beef steak flavour) PepsiCo 30 6.000Snack Poca (Peking duck flavour) PepsiCo 24 6.000Snack poca (Seaweed flavour) PepsiCo 30 6.000Snack Poca (baked chicken flavour) PepsiCo 30 6.000Snack Poca (grilled lobster party 2 flavour) PepsiCo 27 3.000Snack Poca (peanut‐ fish skin flavour) PepsiCo 28 2.500Snack Poca (shrimp cracker flavour) PepsiCo 22 3.000 Snack O'Star (potatoes flavour) Orion 30 7.000Snack O'Star (potatoes algae flavour) Orion 30 6.000Snack tunies (chicken BBG flavour) Orion 30 5.000Snack Marine Boy (seaweed flavour) Orion 35 9.500Snack Marine Boy (red grilled shrimp flavour) Orion 35 9.500 Snack Oishi (cheese flavour) Liwayway 18 2.000Snack sugary (sweet corn oishi flavour) Liwayway 18 2.000Snack Oishi (spicy shrimp flavour) Liwayway 18 2.000Snack Oishi (pumpkin flavour) Liwayway 18 2.000

(1 USD – 20,800 VND) Source: from surveys at retailers

Snacks are no longer regarded as just being a treat or used to fill the gap between meals.

They also accompany, even replace, meals, and are nibbled on during home activities,

whether it be watching television or entertaining. In response, manufacturers have

produced an array of packaging sizes and launched various kinds of snack to accommodate

customer's preference.

224

The sweet and savoury snack sector in Vietnam is quite fragmented with participation of

many small and medium manufactures (Table 89). There are a number of companies

manufacturing snack food in Vietnam such as PepsiCo, TrangAn JSC, HaiHa‐Kotobuki, Orion

Food Vina and Vinamit... These companies provide a wide range of products, which are

fallen into 8 types (chips/crisps, extruded snacks, fruit snacks, nuts, popcorn, pretzels,

tortilla/corn chips (they mostly are potatoes‐, rice‐ and cassava‐based snack food). Among

those companies, the strongest competitive are KinhDo, Pepsi, Bibica, Kotobuki, HaiHa,

TrangAn. Moreover, the competition between local and international manufacturers has

quickly heated up so the foreign companies paid attention to modern snacks like extruded

snacks or chips/crisps (Euromonitor‐International 2011).

Table 91: Sweet and Savoury Snacks Company Shares 2006‐2010 (% retail value)

Company 2006 2007 2008 2009 2010

Tan Tan Food & Foodstuff Co 8.5 9.1 9.5 10.1 10.7

Liwayway Food Industry Co Ltd 5.8 6.5 7.2 8 8.3

Tuyen Ky Co Ltd 9.5 8.3 7.5 7.5 7.5Special Aquatic Joint‐stock Co (SEASPIMEX‐VIETNAM) 5.2 4.8 4.9 4.9 5

Kinh Do Corp 3 3.7 4.2 4.7 4.9

Triko Foods Co 3.6 3.6 4.1 4.8 4.7

Bien Hoa Confectionery Corp (Bibica) 4.6 4.5 4.3 4.1 3.9Ken Ken (Vietnam) Food Manufacturing Co Ltd 5.2 3.7 3.4 3.7 3.8

PepsiCo Inc 0.8 1.6 1.9 2.3 2.5Cholon Investment & Import‐Export Co (CHOLIMEX) 2.6 2.4 2.5 2.5 2.5

Vinamit JSC ‐ ‐ 1.9 2 2.2

Vinabico Confectionery JSC 1.8 2 2.1 2.1 2.1

Procter & Gamble Vietnam Ltd 0.9 1.2 1.4 1.6 1.8

Kim Phong Co 2.9 3 2.6 2.2 1.8

Haiha ‐ Kotobuki JV Co 2.6 2.2 2.1 1.9 1.7

Trang An Confectionery Co 0.9 1 1.2 1.5 1.6

Phong Hien Co 2.5 2.5 2.2 1.8 1.6

Orion Food Vina Co Ltd 0.6 0.9 1.1 1.2 1.3Tecaworld Food Processing Joint Venture Co 1.5 1.5 1.6 1.4 1.3

An Lac Co Ltd 1.5 1.4 1.3 1.1 1

Tuong Lai Co 1.8 1.8 1.4 1 0.7

Tai Tai Co 0.5 0.4 0.5 0.7 0.7

Viet Hoa Co 0.9 0.7 0.6 0.7 0.7

Four Seasons (Vietnam) Co Ltd 0.4 0.4 0.5 0.5 0.5

Zerky Co 0.8 0.7 0.6 0.5 0.5

Nhat Anh trading Pt Enterprise 0.4 0.3 0.4 0.4 0.5

225

Orex Co 1 1.1 0.7 0.5 0.4

Dong Nai Food 0.4 0.4 0.4 0.4 0.3

Lubico Biscuit Enterprise 0.2 0.2 0.2 0.2 0.2

Chipsgood Vietnam Co Ltd 0.1 0.1 0.1 0.1 0.1

Nha Be Import Export Co 0.1 0.1 0 0 0

Hanh Dung Co Ltd 0.4 0.4 0.3 ‐ ‐

Vitafood ‐ Viettan Co Ltd 0.4 0.2 0.1 ‐ ‐

TM Vina Mit Ltd Co (Vinamit) 1.6 1.7 ‐ ‐ ‐

Others 27.3 27.5 27.3 25.7 25.1

Total 100 100 100 100 100Source: Euromonitor International report from trade sources/national statistics, 2011)

http://www.kinhdofood.vn/Product/6/11‐Sachi.html http://www.i‐mart.vn/product.php?id_product=1038

http://vietbao.vn/vi/The‐gioi‐giai‐tri/Snack‐Poca‐huong‐vi‐moi/50807057/416/

http://sieuthitannha.vn/5/494/SNACK‐OSTAR‐VI‐KIM‐CHI‐336G.asmx

The forecast sales of sweet and savoury snacks in volume and value are presented in table

92 and 93. Manufacturers are expected to continue launching more new products to

continuously renew their brand image and increase consumers’ interest in their products as

consumers like to try out new brands and flavours (Euromonitor International, 2011). The

forecasts, which had been analysed in the middle of 2011, showed that sweet and savoury

snacks are expected to increase in volume and value in near future by 2016, especially

226

extruded snack (Tables 92 and 93). These data were analysed in the middle of 2011, the

forecast maybe changed in 2012 because the economic growth rate is slower than expected

(GDP in 2012 is 5.3%, but the expected GDP was 6.8‐ 7%).

Moreover, among various kinds of snacks, the quality as well as nutritional value of extruded

snack could be more easily improved by changing/adding different ingredients, by improving

processing technology and by varying their flavour. This is the reason why the extruded snack

category will be focused in the project.

Table 92: Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2010‐2016 (tonnes)

2011 2012 2013 2014 2015 2016

Chips/Crisps 2,251.1 2,476.2 2,711.5 2,955.5 3,206.7 3,463.3

Extruded Snacks 14,705.2 15,661.0 16,600.7 17,430.7 18,127.9 18,671.7

Fruit Snacks 881.0 960.3 1,037.1 1,109.7 1,176.2 1,235.1

Nuts 7,111.7 7,609.5 8,104.1 8,590.4 9,062.9 9,516.0

Popcorn 1,480.9 1,614.2 1,727.1 1,813.5 1,886.0 1,942.6

Pretzels

Tortilla/Corn Chips Other Sweet and Savoury Snacks 8,764.3 9,158.7 9,525.0 9,858.4 10,154.1 10,408.0

Sweet and Savoury Snacks 35,194.1 37,479.8 39,705.5 41,758.1 43,613.9 45,236.7Source: Euromonitor International report from trade sources/national statistics, 2011)

Table 93: Forecast Sales of Sweet and Savoury Snacks by Category: Value 2011‐2016 (VND billion)

2011 2012 2013 2014 2015 2016

Chips/Crisps 293.8 326.1 358.7 392.8 428.1 464.5

Extruded Snacks 2,180.5

02,333.1

02,484.8

02,633.8

0 2,778.7

0 2,917.6

0

Fruit Snacks 127.7 139.8 151.7 163.1 173.7 183.2

Nuts 921.1 999.41,074.4

01,144.2

0 1,207.1

0 1,261.5

0Popcorn 104.5 110.8 116.4 121 124.6 127.1Other Sweet and Savoury Snacks

1,650.60

1,724.90

1,800.80

1,878.20

1,957.10

2,037.30

Total 5,278.2

05,634.1

05,986.7

06,333.1

0 6,669.4

0 6,991.3

0Source: Euromonitor International report from trade sources/national statistics, 2011)

8. 4P’sforsnackproduction

Excluding flavour price and processing costs, the price of snack is competitive in flour and

starch price. This section gives examples of some important sources and prices of

ingredients in snack production.

227

As discussed above, sales of snack food, especially extruded snack category is still developed

even the economy slows down its growing rate. Beside a great attention on products’

quality and taste, price is another factor for success. Therefore, companies are taking care

of prices or raw materials in addition to other processing costs. As cornstarch and corn meal

are still expensive and the competition between companies remains high, any replacement

that reduces cost of raw materials or creates some special characters of products will attract

the attention of any snack companies.

Thus cassava beer spent is one component that should be used in snack food processing.

Due to estimated low price, adding cassava beer spent could reduce the cost of production

if the texture and quality of snacks remained unchanged.

Table 94: 4P's for snack production in Vietnam


Rice flour VND 12,000 per kg

Retailers or rice flour processing units

No promotional drive

Snack or confectionary companies

Cassava starch

VND 8,000 per kg

Retailers or directly from Cassava processing units or companies

No promotional drives since there is ready market.

Snack, confectionary companies, other food companies (outside snack)

Corn starch VND 50,000 per kg

Retailers or corn starch processing units


Snack or confectionary companies other food companies, restaurant (outside snack)

Wheat flour

VND 15,600 per kg

Retailers or wheat milling companies



Corn meal VND 12,000 per kg

Retailers No promotional drives


Palm oil VND 100,000 per litre

Through import companies


Snack or confectionary companies other food companies, restaurant (outside

228

snack)

Flavour VND 6,761 per kg

Food Additives Supplier companies



Onion flavour

20,5$ per kg Food Additives Supplier companies



Salt VND 12,000 per kg

Salt companies No promotional drives


Sugar VND 21,000 per kg

Sugar companies No promotional drives


Cassava beer spent mash

VND 1,000 per kg

Beer companies Need marketing service





functional snack food, which provides the consumers with more fibre, low energy, more


snack.

9. SWOTAnalysisoftheUseofCassavaBeerSpentforSnackFood

Cassava spent has some interesting character, which would be used successfully into snack

food products in order to increase the added value of the cassava spent, to provide snack

food with some new added values such as low calories and better digestibility. The

composition of cassava spent is presented in Table 95.

Table 95: Composition of cassava spent

No Composition Unit Values

1 Moisture g/100g 90.9

2 Protein g/100g 1.9

3 Saturated fatty acids g/100g <0.1

4 Monounsaturated fatty acids g/100g <0.1

229

5 Polyunsaturated fatty acids g/100g <0.1

6 Trans‐unsaturated fatty acids g/100g <0.1

7 Ash g/100g 0.5

8 Carbohydrates g/100g 2.2

9 Fibres g/100g 4.3

10 Sodium mg/100g <50

11 Total sugar g/100g 1.9

12 Total lipids g/100g 0.2

13 Vitamin C mg/100g <1.00 Source: SABMiller Plc, 2012

Table 96 presents the SWOT analysis for the potential use of cassava beer spent for snack

food.

Table 96: SWOT analysis for the potential use of cassava beer spent for snack foods

Strength

Demand for diversifying snack food products in Vietnam

Increasing added value for by‐products (cassava beer spent)

The cassava beer spent is cheap, so that the use of cassava spent in the extruded snack may reduce the cost of products.

As discussed in 5.2, among various kinds of snacks, the quality of extruded snack could be more easily improved by changing/adding different ingredients, by improving processing technology and by varying their flavour.

High dietary fibre content (4.3%) of the mash could increase this component in the products and lead to the new brand of snack – low calories and high dietary fibre content, which Vietnamese have yet paid attention for this kind of snack.

Another desire for the use of cassava beer spent in snack is to reduce cost of product but does not change its quality. This type is different from the high dietary fibre snack product

Weakness

Possible cyanogenic compound inthe mash which could be harmfulforproduct.

Low production capacity/lack ofeconomies of scale and relativelysmallmarket size (atpresent, onlySABMiller is interested indevelopingthisaffair)

Need technical investment on treatment of cassava beer spent mash, product development, on consumer acceptance and marketing for further application, that could rise up the price of the new product

Insufficient understanding of howtomake snacks from cassava beerspent.

As fibre does not support theexpansionofsnack,addingcassavabeer spentmay reduce the textureofhighdietaryfibresnackproduct.

Opportunities Threat

230

Increasing domestic demand forbeer consumption thereforeincreasedbeerproductionandbeerspent available at relatively lowcost

Increasing demand for new kind/ brand of snack food products which are healthy and supplemented with more fibre, less protein, fat and glucid or brand of product that use of cassava beer spent to reduce cost of product but do not change its quality

Savings trade balance by reduceimportofbarleymalt

Sustainable development ofcassava production to ensure thesustainable income for cassavafarmer

High competition from other localraw materials (rice, cassava,potatoes...)

Potential users looking for reliableandsustainablesupplysources

Increasing for cassava rawmaterialsprice

Competition with animal feedingproducers

10. ConclusionsandRecommendationsforCassavaBeerSpentinSnackFood

Beer industry in Vietnam sees total volume growth of 13% to reach 2.6 billion litres in 2011

and is expected to reach 3.7 billion litres in 2016. Standard lager continues to be the largest

and fastest‐growing category thanks to further expansion of local players as well as new

participation of many international players. Beer witnesses stiffer competition in 2011 as

local players try to expand their presence into untapped market areas. The potential to

develop new kinds of beer is highly appreciated in Vietnam.

It is recommended that cassava‐based beer would fit into the market for low‐income people

who are consuming draught beer produced by unbranded breweries with doubtful quality.

These cassava‐based beers would be new kinds of beverages and promote sustainable

development of cassava plantation in Vietnam.

Using cassava beer spent for snack food could be an innovative and attractive way to get

more value added from by‐products from cassava‐based beer production. As discussed

above, sales of snack food, especially extruded snack category are still developed even the

economy slow down its growing rate. In addition, due to the high competition,

manufacturers have to pay a great attention on products’ quality and taste. Price is another

factor for success (Euromonitor International). Moreover, as mentioned earlier, this project

focuses on the extruded snack category because it is more easily improved by

changing/adding different ingredients, by improving processing technology and by varying

their flavour. Thus cassava beer spent product is one component that should be concerned

to apply in snack food processing. Due to estimated low price, adding cassava beer spent

231

could reduce the cost of production if the texture and quality of snacks are do not change,

this is one of our desire when carrying out this project.





functional snack food, which provides the consumers with more fibre, low energy, more


snack.

11. Potentialforuseofcassavastemsassubstratesubstitutionforgrowingmushrooms

Mushroom farming is practiced in more than 100 countries and its production is increasing at

the rate of 7 to 10% per annum. Production of mushroom has already crossed 7.3 million

tonnes in 2010. The world leading mushroom producers are China, United States, Japan,

France and Netherlands (FAOStat). The biggest consumption markets of mushroom are

Germany, United States, France and Japan.

Mushroom research and development in Vietnam started since in 1970s. In 1984, the first

research centre for edible mushroom was established in Hanoi. At that time, mushroom was

cultivated and processed mainly for export by state companies.

Vietnam mushroom production has been significantly increasing since 2003 (from 30 tonnes

per year in 1988 to 50,000 tonnes in 2003) while mushroom cultivation started in almost all

provinces of Vietnam and the “mushroom farming” and “mushroom village” model were

largely applied. Vietnam has become the third leading exporter of straw mushroom in the

world. During the last few years, the annual production of mushroom has reached 250,000

tonnes of all kinds of fresh mushrooms (Annual report, Department of Planting ‐ MARD).

Mushroom cultivation uses agricultural wastes as composted substrate. Although the ability

to access to these abundant and low cost materials, seasonality is still a driver for a stable

mushroom production. The need for investigation on mushroom substrate substitution is

relevant.

Cassava stems is a significant waste from the cassava production in Vietnam that is reported

from the result of the VCA conducted in the framework of Gratitude project. According to

our personal communication with the Centre for Plant Biotechnology in Hanoi, preliminary

study that has been carried out on the substitution of classical mushroom substrates by

cassava stems showed a promising potential for the use of cassava stem in mushroom

production on technical point of view.

This chapter will firstly describe the mushroom sector and analyse the advantages as well as

232

disadvantages of the mushroom production in Vietnam. However we have to note that

although the mushroom sector in Vietnam is growing, the development of this sector is

spontaneous. We have tried to access to the available statistic data of the sector but this is

not systematically done, a lot of missing data is found.

Secondly, we will discuss on the potential use of cassava stems for mushroom substrate

substitution.

12. DescriptionofmushroomsectorinVietnam

Overall of the mushroom production in Vietnam

About sixteen species of mushroom are actually cultivated in Vietnam. Main species of

mushroom produced in the South are Straw (90% of the country production) and Earwood

(70% of the country production), while main species in the North are Oyster, Shitake

mushroom (Lentinus edodes) and Reishi mushroom (Ganoderma lucidum) – a kind of

medicinal mushroom.

The main mushroom producing areas in Vietnam are NamDinh, NinhBinh, ThaiBinh,

HungYen and HaNam (in the North) with big amount of Oyster; DongThap, TayNinh and

SocTrang with Straw mushroom and LongKhanh, DongNai with Earwood mushroom (in the

South) (Annual report, Department of Planting – MARD).

Table 6.1.1 represents the main species of mushroom that are cultivated in Vietnam and its

production and productivity.

Household production scale with capacity ranging from 1 to 6 tonnes of materials per

season per household is the most popular mushroom production scale in Vietnam. In 2008,

there were about 100,000 households employing about 300,000 people. These households

use the manual production technique with self‐developed equipment, which leads to low

productivity, high unit cost and difficulty in processing and marketing.

The mushroom family farms using 10 – 15 tonnes of materials per season accounts for 3 – 5

% of the total national mushroom production. Cooperatives and Limited Company using 100

– 500 tonnes of materials per season have invested in the technology and production

facilities. Therefore they have higher productivity, better product quality at a lower cost but

at higher risk than other levels.

Table 97: Main mushroom species cultivated in Vietnam and its production and productivity

Mushroom species Production (tonnes)

Productivity

(2008)

233

Straw ‐ Volvariella volvacea 64,500

12 – 15%

Fresh mushroom/dry materials

Earwood ‐ Auricularia auricular and

Auricularia polytricha

120,000

80 – 85%


Oyster ‐ Pleurotus ostreatus 60,000

50 – 60%


Shitake ‐ Lentinus edodes 5,000

20 – 25%

234


Reishi ‐ Ganoderma lucidum 300

3 – 4%

Dried mushroom/dry materials

About a half of the Vietnam mushroom production is consumed by the domestic market, in

fresh as well as in dried product. The market demand is increasing. This is explained by the

increasing in the market price of all kinds of mushroom. The market price of fresh

mushroom in the big cities such as Hanoi, HaiPhong, QuangNinh is 2 times higher than the

production cost (Straw mushroom: 40,000 VND/kg; Oyster mushroom: 30,000 VND/kg). The

market of Hanoi consumes everyday about 60 tonnes of fresh mushroom (Annual report,

Department of Planting ‐ MARD).

About 50% of the produced mushroom is exported to 31 overseas markets, at a value of 90

million USD in 2011. The price of mushrooms is rising, with straw mushroom as an example.

The exporting price of salted straw mushroom rose from 1,300 USD per tonnes in 2009 to

1,800 USD in early and currently stays at over 2,000 USD. Vietnam targets to obtain 150 to

200 million USD in mushroom export turnover in 2015 (Annual report, Department of

Planting ‐ MoARD).

Advantage and disadvantage of the mushroom production in Vietnam

Advantage:

The agriculture production of Vietnam generates big amount of organic wastes, about 40

million tonnes, and almost of them are able to be used as mushroom substrate. The

utilisation of these wastes in mushroom production has several advantages including

resolving environment problems related to agriculture waste; very low cost materials;

235

generating composted organic fertiliser, etc. If only 10 – 15% of such waste is used for

mushroom farming, 1 million tonnes of fresh mushroom are produced, hundreds of

thousands tonnes of organic fertiliser are generated and Vietnam can earn around 1 billion

USD each year.

Mushroom production requires low and short‐term investment, simple production

technology, without access to land, can generate millions of jobs and provide a regular

income throughout the year.

The Vietnamese geographic and climatic conditions are suitable for the cultivation of

different mushroom species. The mushroom growth cycle is short, 10 – 12 days for

harvesting for Straw mushroom for example.

In terms of policy, mushrooms are considered as a national effective product. Mushroom

sector will continue to receive policy and resource support from the government.

Finally, mushroom has a good market demand for both domestic and over sea market.

Disadvantage:

The small production scale is the cause of a series of disadvantages of the mushroom

production in Vietnam: low productivity; product’s quality is far to be well controlled; weak

competitiveness due to inhomogeneous product’s quality and not stable and concentrated

product supplying.

The most common commercial products are fresh, dried, canned and salted mushroom.

Vietnam needs to develop technology of conservation and processing in order to diversify

and create added value to the product.

Although the materials, agricultural wastes, are very easy to access at very low cost,

however they are not available all the year round depending on the seasonality of the

agricultural crops. Therefore, there is an urgent need to consider alternative substrate

options. One such alternative is the use of agricultural waste like cassava stems.

Substrates for cultivating mushrooms

The most common substrates available for mushroom cultivation in Vietnam using

agricultural wastes are straw and sawdust. The productivity of the mushroom cultivation on

these two substrates is quite close, 60 – 70% (600 – 700 kg of fresh mushroom on 1,000 kg

of substrate). In rice cultivation region, it is easy to access to straw as a substrate of

mushroom cultivation. However in other regions, sawdust is the most common used.

However, the use of sawdust for mushroom cultivation has several limitations including

unavailability due to rapid deforestation, inaccessibility, high cost of transporting sawdust

from wood processing sites and longer periods of composting.

236

As a generated waste of the production, mushroom substrates are given for free or at very

low price. Collectors collect and transport these wastes by truck and sell them to farmers

who prepare bags for mushroom production at big quantity. At this stage, farmers compose

the mushroom bags by mixing straw or sawdust with other materials at small amount and

then sterilise them in order to avoid contamination. The price of these bags (1,5kg/bag) for

Earwood production near Hanoi is reported at 300 – 500 VND/bag.

Figure 54 represents the production of Earwood mushroom bag observed in a mushroom farm near Hanoi.

Figure 54: Earwood mushroom bag preparation from sawdust

Cassava stems is a significant waste from the cassava production in Vietnam that is reported

from the result of the VCA conducted in the framework of Gratitude project. According to

our personal communication with the Centre for Plant Biotechnology in Hanoi, preliminary

study that has been carried out on the substitution of classical mushroom substrates by

cassava stems showed a promising potential for the use of cassava stem in mushroom

production on technical point of view. The next part of the report will present the results of

the SWOT analysis on the potential use of cassava stems in mushroom substrate

substitution.

13. SWOTAnalysisofmushroomsector

Table 98 represents the result of SWOT analysis on the potential use of cassava stems in

mushroom substrate substitution.

Table 98: SWOT Analysis on the potential use of cassava stems in mushroom substrate substitution

STRENGTH

Mushrooms are able to grow on a very wide range of agricultural waste substrates

The country targets to increase the mushroom production

Existing marketing and distribution network for mushroom trading

WEAKNESS

Lack of information on the effect of cyanogenic glycosides in cassava plants on the quality of mushrooms cultivated with cassava stems

Lack of technique in using cassava stems as a mushroom substrate

Biological Efficiency of using stems

237


Rich protein source of mushroom

Existing research expertise in mushrooms for technical support to the industry

Excellent climate for growing mushrooms

Possible to develop several mushroom species with diverse flavours, textures and colours

Large urban populations and increased working couples

Use cassava stems as an alternative straw or sawdust substrate in its off‐season

A huge supply source of cassava stems

Preliminary studies showed promising possibility of using cassava stems in mushroom production in a technical point of view

Replacing sawdust in mushroom cultivation by an better compostable material which decreases cost for sawdust treatment and enhance the productivity

The use of composted substrate after mushroom production for bio‐fertilisers for crop production

alone low as compared to straw or sawdust.

Higher price of cassava stems in comparison with traditional mushroom substrate (straw and sawdust) due the treatment of stems before using (crushing)

OPPORTUNITIES

Growing demand for mushrooms of both domestic and export market



THREATS

Possible high content of cyanogenic glycosides in some cassava plants could pose threat to mushroom cultivation



238



Availability of cassava stems

Mitigation of deforestation due to sawdust used for mushroom cultivation

Government policies in investing on mushroom industry

Availability of some new processing technologies


Labour availability

Cassava farmer income increases, sustainable cassava development

The SWOT analysis of cassava stems as a mushroom substrate substitution reveal that the

main strength of cassava stems is its possibility to be used as a mushroom substrate

substitution due to its high cellulose content and low in starch and other carbohydrates.

Beside this, huge supply source, low material cost (given for free for instance by cassava

farmers) and seasonal alternative of other agricultural waste make a high potential use of

cassava stems as a mushroom substrate substitution. However, the potential toxic

compounds which present in cassava stems may are limiting factors for its use in mushroom

cultivation, which is necessary to be investigated in order use cassava stems in mushroom

production.

14. Conclusionsandrecommendationsforcassavastemsinmushroomsubstratesubstitution

The domestic as well as over sea market of Vietnamese mushroom is significantly growing.

Government is giving supports for the development of the mushroom production industry.

Almost wastes discharged from agricultural activities in Vietnam are suitable for being used

as mushroom substrate. In spite of low cost and high availability in season of material,

seasonality is still a limiting factor of the mushroom factor in Vietnam. The utilisation of

cassava stems, a significant cassava waste, as a mushroom substrate substitution is very

promising. Preliminary studies showed ability of cassava stem in partially replacing classical

mushroom substrate. However in‐depth studies on effect of cyanogenic glycosides that

contain in cassava stems on the quality of the cultivated mushroom are needed. Further

studies are also needed in order to complete the technology of using cassava stems in

239

mushroom production. Economic efficiency of using cassava stems in comparison with

classical mushroom substrates should also be evaluated.

15. Potentialforuseofleavesinanimalfeed

Cassava is traditionally grown for the production of roots. However, cassava leaves have

been shown to be an excellent source of protein, the protein level depending on variety,

growing conditions and fertilizer application. The leaves were very rich in protein, ash and

vitamins with an average of 21% crude protein (range of 16.7 to 39.0%), of which 85% was

true protein (Eggum, 1970; Allen, 1984). The amino acid composition of a range of varieties

and they were deficient in methionine. On a total amino acid compositional basis, leaf‐

protein concentrate should be a well‐balanced source of dietary protein if supplemented

with synthetic methionine. Cassava leaf protein was limiting in methionine and tryptophan,

but rich in lysine, with an overall biological value (BV) of 44 to 57%, depending on the

methionine content. By the addition of methionine, the BV of cassava leaf protein could be

increased to 80% (Eggum, 1970).

Dried cassava leaves are reported to be low in lipids (0.6% in DM), but rich (24%) in glucose

and starch. The crude fibre level was 11% and ash content 6.7% with an amount of

xanthophylls of 350 mg/kg (Frochlich et al., 2001). The leaves are rich in macro‐minerals

with the following concentrations (% of DM): calcium, 1.75, potassium, 1.28, magnesium,

0.42, phosphorus, 0.45 and sodium, 0.02. Microelements levels (mg/kg) were as follows:

zinc, 149, manganese, 52, iron, 259 and copper, 12. The study on nutritive value of cassava

leaves shows that the proximate composition compared favourably well with that of other

foods, but cassava leaves contained more vitamins and minerals, particularly calcium, iron,

vitamin A, riboflavin, thiamine, niacin and vitamin C (Lancaster and Brooks, 1983).

From the above reasons, cassava leaf can be an important local source for animal feeding;

especially in the current Vietnam’s feed situation that is depending too much on imported

raw materials. However, the information on Vietnam cassava leaf may vary due to the

ecological effect and cultivation condition and till now it is not available, that needs to be

confirmed.

Due to high content of toxic substance such as cyanide in the leaf, especially in high yield

varieties of cassava which are predominant in Vietnam, many cassava farmers are aware of

this toxicity therefore the leaf has been used in livestock feed such as pig and chicken with

limited quantity and not in fish and shrimp feeds in Vietnam. In addition, the cost for

gathering the leaf to the central point and to feed processing factories may be a limiting

factor of the cassava leaf usage. The cassava leaf thus is mainly left behind the farm for

making compost or burnt. There is a need to further process the leaf to reduce its toxicity

for use as feeds.

16. Descriptionoflivestockandanimalfeedsectors

240

Viet Nam has about 86 million people in 2010 and 74 per cent of the population lives in rural

areas and 65 per cent depend on agriculture for their livelihood. With economic growth at

6‐8% for the last two decades, livestock plays an important role in generating rural income

in Vietnam. According to Ministry of Agriculture and Rural Development, livestock in

Vietnam exist mainly in two forms: industrial farms and farmer household.

According to Ministry of Agriculture and Rural Development, in 2011, there are 23,000

farms and 8.5 million household farms countrywide. They consist of 10,100 pig farms, 8.7

cattle farms and 3,800 poultry farms. Two‐thirds of the farms are in the North and the rest

is in the South. Although performance on a small scale with uncertainty in quantity and

quality, 8.5 million farmer households still account for about 65% of the pigs, 70% of the

chicken and 90% of the buffalos and cattle raised in the country. Small‐scale household

based production accounts for about 70 per cent of the total livestock production in

Vietnam. Increasing incomes have resulted in a higher demand for livestock products. The

average annual meat consumption in Vietnam is about 40kg per capita and is projected to

increase to 57kg per capita by 2020. Pork accounts for the majority of meat consumed (76

per cent) followed by poultry meat (13 per cent) and red meat (nine per cent).

According to the General Statistics Office of Vietnam, the husbandry survey results on

01/04/2010 noted that the country had 277.4 million fowls, up 8.1 per cent from the same

period a year earlier, and 27.3 million pigs, up 3.1 per cent. The June 2010 report, Socio‐

economic statistics in the first half of 2010, stated that feeding products in six months

increased considerably as epidemic diseases had been controlled in a timely manner; pork

(live weight) gained 1.79 million tons, up 4.7 per cent; poultry meat (live weight) gained

330,700 tons, up 17 per cent; 3,278.8 million eggs, up 7.1 per cent.

Vietnam plans to increase livestock production from the current 30 per cent of total

agricultural output to 38 per cent in 2015 and 42 per cent by 2020. The target for 2020 is

production of 5.5 million tons of meat, 14 billion eggs and over one million tons of milk. At

that time, the livestock population is expected to total 35 million pigs, 300 million chickens

and 500,000 dairy cows (Ministry of Agriculture and Rural Development).

Table 99: Production of livestock sector in Vietnam

Year

Buffalo & Cattle Pig Chicken

Population

(Mil. head)

Production

(Mil. Mt)

Population

(Mil. head)

Production

(Mil. Mt)

Population

(Mil. head)

Production

(Mil. Mt)

2005 8.4 202.0 27.4 2288 219.9 322

2006 9.4 223.8 26.9 2505 214.6 344

2007 9.7 273.6 26.6 2663 226.0 359

241

2008 8.2 298.2 26.7 2783 248.3 448

2009 9.0 342.4 27.6 3036 280.2 528

2010 8.8 363.1 27.4 3036 300.5 621

Source: Vietnam’s General Statistics Office

About fishery industry, according to Directorate of Fishery (Ministry of Agriculture and Rural

Development), total fishery production in 2012 is 5.8 million tonnes (increases by 8.5%

compared to 2011), in which aquaculture production reaches 3.2 million tonnes (increases

by 6.8%): shrimp production is 500,000 tonnes (increase by 0.9%) and catfish (pangasius) 1.2

million tonnes (increases by 3.4% compared to 2011).

17. Marketsegmentofanimalfeed

Total demand for animal feeds in 2010 was 19.7 million tonnes, in which manufactured feed

are 11 million tonnes, imported feed are 6 million tonnes (account for 30%) and the left

accounts for 14% (Ministry of Industry and Trade). Countrywide, there are 233 factories

producing feed in which 175 local factories supplying 40% of total feed and 58 foreign

invested factories supplying 60% of the total animal feed for the country. Most of the feed

producing factories with large scale and producing various feeds are from foreign invested

companies. 80% of the manufactured feeds are for pigs, 18% for poultry and rest 2% is for

cattle. Local feed ingredients meet only 30‐40% (in value) for the local production demand,

the rest (60‐70%) has to be imported. According to AgroMonitor, Vietnam imports 90‐95%

of dried soybean cakes and fish powder, 50% of corn, 80% of premixes and 100% of

minerals and vitamins.

According to Directorate of Fisheries, for fish feed production, in 2012 there are total 74

factories producing feed for aquaculture with total production of more than 3 million

tonnes, in which feed for shrimp aquaculture is about 500,000 tonnes. Most of the factories,

which are large scale and producing feed for different objects are mainly, joint venture with

foreign investors and concentrated in BinhDuong, DongNai, DongThap, LongAn provinces

(Final Report of the 2012 FY and 2013 Outlook from the Directorate of Fisheries).

As the local feed industry depends too much on imported raw material, feed prices in

Vietnam are 20% higher than any other countries in the region, making local production

costs of meat and meat products very high. Based on statistics from the General

Department for Livestock, feed prices in 2011 climbed up by 30‐40%, compared with the

year 2010. In the first ten months of 2012, Vietnam is estimated to have spent over US$ 2

billion on imports of animal feed and materials, an on‐year increase of 8.6%. Argentina,

India, the US, China and Brazil are the main suppliers of animal feed and materials for

Vietnam, which spent US$ 2.33 billion on importing raw materials to produce animal feed in

2011, increasing by 7.2% from 2010.

242

Figure 55: Vietnam’s imports of feeds and feed ingredients 2005 ‐ 2011 (USD million)

Source: VN General Statistic Office

18. 4P’sforanimalfeedsector

Because of high proportion of imported raw materials for animal feed in Vietnam, the

animal feed price is high compared to other countries in the regions. This section gives

examples of some important sources and prices of ingredients in animal feeds.

Table 100: 4P's for animal feed sector in Vietnam


Rice bran VND 7,245 per kg Retailers No promotional

drive since there

is ready market

Cassava chip VND 4,000 per kg Retailers

No promotional

drives.

Animal feed

company

Complete pig

feed

VND 9,430 per kg Retailers No promotional

drives

Household pig

keepers

Complete

poultry feed

VND 10,525 per kg Retailers No promotional

drives

Intensive poultry

producers in

mostly urban

communities

Wheat

imported

VND 6,761 per kg Through import

companies

No promotional

drives

Animal feed

company

Imported corn VND 7,400 per kg Through import No promotional Animal feed

243

companies drives company

Local corn VND 7,200 per kg Through import

companies

No promotional

drives

Animal feed

company

Soy meal VND 15,603 per kg Through import

companies

No promotional

drives

Animal feed

company

Crop residues Accessed free Farmers’ fields No promotional

drives

Mostly rural and

peri urban

producers

Dried cassava

bagasse

VND 1,400 – 2,100

per kg

At the cassava

processing

units

No promotional

drives

Mostly rural

farmers

Cassava black

starch

VND 600 per kg,

sometimes given

for free

At the cassava

processing

village

No promotional

drives

Household pig

keeper at the

craft village

having cassava

processing

The substitution of cassava leaf in animal feed for pig, poultry or aquaculture production

can reduce the feed production cost thank to the availability of the leaf in large quantity.

The leaf is a rich source of protein and fibre for pig production and an important source of

pigment for poultry raising industry. The substitution of dried cassava powder up to 6% in

chicken feed has been studied and proved that it assure the quality and growing rate of

chicken (Tran Thi Hoan, 2012). However, it is necessary to estimate the production cost of

the leave into digestible form for the feeds.

19. SWOTanalysis

STRENGTH

Cassava leaves is a rich source of protein. It contains about 20% of crude protein in the dry matter fraction. The average yield of cassava leaves in Vietnam is of the order of 7 to 12 tonnes/ha/year, containing from 500 to 1400 kg of crude protein. With the large cassava production area of more than 500,000ha, this is a huge supply source of cassava leaf for animal and aquaculture feed.

The protein of cassava leaf is rich in lysine,

WEAKNESS

The protein of cassava leaf is low in the essential amino acids methionine and tryptophan that need to be balanced.

Cassava leaves are high in fibrous components which is a factor limiting it’s exploitation as a source of crude protein for non‐ruminant animals.

Cassava leaves also contain anti‐nutritional factors such as cyanogenic glycosides and tannins. Cyanogenic glycosides can give rise to toxic

244

suitable for chicken feed.

The use of cassava leaves in feed production in Vietnam would be a means of reducing the dependence on traditional, expensive protein sources such as fishmeal and soybean meal.

Substitution of up to 5‐6% of dried cassava powder in pig or chicken feed meets the demand of nutritional supply.

Pigs are home animals that are easy to raise and invest. Pig raising is a traditional agricultural profession and an important source of income for many households in rural Vietnam; therefore, pig raising has always been considered important, thus needed to develop and demand large quantity of feed materials.

Aquaculture feed demand is also high and need solutions to reduce the imported raw materials

hydrocyanic by the action of either enzymatic activity in damaged plant tissues or within the digestive tract of the animal. Tannins may reduce protein digestibility.

Seasonality of cassava need to be considered

Cost of collection from many farms High production cost of the cassava leaf powder

OPPORTUNITIES

With economic development at a high growth rate (6.0 to 8% per year), the demands of food will increase rapidly, Vietnam is on the way to shift from traditional to industrial farming. The industrialization process brings higher demand in feeds and pushes it grows at 15‐17% each year.

Production of animal feed industry increased greatly every year, the total amount of conversion compound feed was about 9.0 million tons in 2008. In the total output of conversion compound feed, pig feed always occupies about 80%.

The feed industry depends too much on imported raw material from foreign countries, thus the feed prices are about 20% higher than any other countries in the region. Therefore replacing cassava leaves in feed can reduce imported raw material from other countries and reduce the cost for feed production.

The biological value of cassava leaf protein can be increased by the addition of synthetic methionine.

THREATS

Animal diseases are not under control yet.

Lack of good and healthy breed supply

Low competitiveness of the livestock industry due to the above mentioned factors

245

A major part of the absorbed cyanide is rapidly detoxified by conversion to thiocyanate, which is excreted in the urine.

Methods of processing to reduce levels of HCN in cassava rather simple included: cooking, drying, ensiling, soaking and de‐watering.

Studies on the most appropriate way to use the leaves in pig and chicken nutrition and the extent to which they can replace other protein sources in the diet are available.

Vietnam has become an official member of the World Trade Organization (WTO), the agricultural products in general, and pork in particular will have many opportunities for exporting to overseas markets.

The SWOT analysis of cassava leaf as a substitution in animal feed reveal that the main

strength of cassava leaf is its rich source of protein, fibre and pigments for animal feed, its

availability with large quantity thanks to large cassava production, the cassava leaf would be

an important source of nutrients for animal feeds. However, the toxic compounds which are

presents in the leaf are the limiting factors for usage in the animal feed, it is necessary to

have technological solutions for ensuring the safe and reducing the production costs of the

digestible form of cassava leaf for raising animal (livestock, poultry and fish). With the

increase of population as well as rapid economic growth in Vietnam in the near future, the

consumption for meat seafood and consequently the demand for animal feed will increase.

Substitution of cassava leaf in the animal feed would be an important solution for the

coming years.

19. Conclusionsandrecommendationsforcassavaleavesinanimalfeed

The demand of raw material in animal feed industry in Vietnam is very high due to rapid

growth of population as well as the socio‐economy. Cassava leaf is a promising source for

animal feed industry to replace the high‐price imported ingredients. However, due to high

level of toxic cyanide compounds in the leaf, it is necessary to further process to eliminate

or reduce to acceptable level of this substance. Several studies on the use of cassava leaves

in animal nutrition have been carried out. However, it is necessary to investigate the

assembling and production cost of the leaves as well as technological transfer for an

acceptable price of cassava leaf products. The use of this leaf would play a significant role in

the animal and animal feed industry of Vietnam.

246

APPENDICES

1. List of communicated people for SWOT analysis

No Name Location Occupation

1 HaTay, Hanoi Cassava pulp trader

2. HaTay, Hanoi Mushroom bag

producer

Mushroom spawn

producer

3. Centre for Plant Biotechnology,

Hanoi

Mushroom technician

4. HUST Expert on brewing

technology

5. Vietnam Beverage Association

(VBA)

President

6. Journal of Vietnam Beverage Editorial Board

7. Ministry of Trade and Industry Deputy director of

Department

8. Ministry of Trade and Industry Official

9. Faculty of Animal Husbandry

Veterinary Medicine Nong Lam

University

Lecturer

10. INVIVO NSA Vietnam

http://www.evialisvietnam.com

Research Manager in

Animal feeds

11. FAO Vietnam Expert on Poultry

Veterinary Medicine

12. National Agro‐Forestry‐Fishery

Quality Assurance Department

– Ministry of Agriculture and

Rural Development

Expert on Fishery

Quality

247

2. List of references

Allen, R. D. (1984). Feedstuff ingredient analysis table, Feedstuffs USA, 56 (30). 25‐30. Buglass, A. J. (2011). Handbook of Alcoholic Beverages: Technical, Analytical and Nutritional Aspects. John Wiley & Sons. Dennis E. Briggs, C. A. B., Peter A. Brookes and Roger Stevens (2004). Brewing: Science and Practice. Woodhead Publishing Limited. Department of Planting – MARD. Annual Report on Mushroom production of Vietnam. HaiPhong, 2011. Du Thanh Hang, (2007). (PhD thesis) Cassava leaves as protein source for pigs in Central Vietnam. Utrecht University, The Netherlands. pp 126 Directorate of Fisheries, http: www.fistenet.gov.vn. Eggum O. L. (1970). The protein quality of cassava leaves. British Journal of Nutrition. 24. 761‐769. Eßlinger, H. M. (2009). Handbook of Brewing: Processes, Technology, and Markets. 2009 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim. Euromonitor International (2011). Sweet and savoury snacks in Vietnam. Pp. 12. Euromonitor International (2012). Beer in Vietnam. Pp. 16. FaoStat, http://faostat.fao.org Frochlich Y and Thái Văn Hùng. (2001). Sử dụng lá khoai mì trong công nghiệp chế biến thức ăn gia súc. Sắn Việt Nam, hiện trạng định hướng và giải pháp phát triển những năm đầu thế kỷ thứ XXI. Viện Khoa học Kỹ thuật Nông nghiệp Miền Nam. 173‐174. (in Vietnamese). “Cassava leaf usage in animal feed industry”. In: Vietnam Cassava, situation and solutions for development in XXI century. Southern Institution of Agricultural Science & Technology, 173‐174. General Department of Livestock, http://cucchannuoi.gov.vn. General Statistics Office, http://www.gso.gov.vn Lancaster P A and Brooks J E 1983 Cassava leaves as human food. Economic Botany, 37(3): 331‐348. Minister of Trade and Industry (2009). The Decision (No 2435/QD‐BCT) on the Planning to Develop the Beverage Industry in Vietnam until 2015 and the Vision to 2025. Ministry of Agriculture and Rural Development (MARD), http://www.mard.gov.vn Tran Thi Hoan. (2012). (Thesis of Doctor of Agriculture, in Vietnamese) Study on leafy cassava planting and usage of the cassava leaf powder in raising chicken. Thai Nguyen University. pp. 158.

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