Cassava processing in Obudu, Southern Nigeria

Fish Processing

Beyond  making money  in cultivation, harvesting and marketing of fresh products in agriculture, this week’s edition of  SucessDigest  looks  at  the  equally  wealth creating potential of the post harvest activities of processing and storage. 

The Food and Agriculture Organization {FAO}says  that  in  some  developing  countries [Nigeria inclusive] an estimated 25 percent of all food produced is never consumed by humans but instead gets spoilt or is eaten by insects, rats and other pests. 

Safe and hygienic food storage and processing was one of the measures recommended by FAO to correct  this  situation.  We  spoke  to  successful stakeholders in the Agric sector in Nigeria who highlighted how one can venture into processing and storage in agriculture and succeed in it. We also  added  the  view  of  a  machine  fabricator because we know machines have a big role to play in the issue. 

Importance Of Processing And Storage In Agriculture 

African Farmer Mogaji, An Agricultural information broker, coach and consultant, is also an  international  conference  speaker.  He  says, “Processing adds value to whatever is produced fresh and increases the financial returns by over 30 to 40 percent. It also helps preserve and offer the products in different forms, i.e., corn to pap, sweet canned corn, corn flakes, bio-fuel and yam to Ayo Ola Poundo Yam. 

“Storage helps prolong the shelf life of the produce without changing its original shape and form. It also helps in bringing in more  income  which  mostly comes   during   scarcity, primarily via storing foodstuff during season to sell during off season – and grains (sorghum, millet,  beans,  rice,  sesame seed, etc.,) and tubers (yam, cassava,   sweet potato, cocoyam,   etc.,)   can if successfully processed or stored locally, be exchanged for cash”. 

Mrs. Jerry Uwheraka is the Managing  Director of  Frijay Consult  Ltd,  Ijaiye  Ojokoro, Lagos.  She  says,  “As  it  is presently,   the   agricultural processing and storage sector is an expedient approach to carry out activities that would impact on  consumers  convenience  through  agro  food processing  and product  marketing,  applying economies of scale thereby ensuring adequate returns on investment to continuously delight the consumer,  meet  employee  commitments  and assure growth. Other strong points of storage to highlight include the following: 

1. Storage is a window to use up portions of harvest  volume  and  improve  food  supplies  by preventing quantitative; and qualitative losses and wastages. 
2. Storage  of  agricultural  products  to  stem spoilage is better managed in and out season. 
3. It  ensures  the  availability  of  agricultural products all year round. 
4. New products are created out of them which could be of secondary use to other processors.
5. This approach improves supplies of forestry products and other non-food agricultural products through  better utilization  of raw materials.

6. It increases self-reliance and dependence by reducing imports of various food materials. 
7. Provision of employment, especially in rural areas is assured. 

“We also have added benefits which include: reducing  income  disparities,  stimulating  rural development, assuring better market opportunities to the producer, increasing foreign exchange earnings through export of finished and semi-finished products, reducing population migration to urban areas and increasing opportunities for investment in rural and urban areas”. 

How  Money  Can  Be  Made  From  The Processing  And  Storage  Of  Agricultural Produce 

Mogaji says, “Money can be made by taking the goods from where they are surplus to where they are needed, i.e., taking plantain from the South to the North. Even buying from  rural/farmers’ markets  and meeting demand in high earning environments within the  same  state  can  be  a viable  option.  Exporting  of farm produce also falls in this category and you don’t necessarily have to export to Europe,  United  States  or Arab countries. People bring honey from Cameroun and Ghana into Nigeria, tomatoes from Ghana, garri from Benin Republic (Cotonou) and fish from Mali. 

“There  is  a  demand  for most Agricultural products in the African market that does not require all the challenging conditions   that the developed countries require. 

Between  February  and  May,  the  Ghanaian market goes begging for tomatoes and that is when it is cheapest in Nigeria and wasting in Mile 12. At this period most of the Northern Farmers give out tomatoes free on the farm. 

“There’s a general saying that “the man that does know how his colleagues are making it will run helter-skelter until he collapses and dies prematurely”. Between processing and storage is information marketing which most of you know SuccessDigest for. Your hometown or neighbouring villages have something in abundance that can help you say bye-bye to cash flow problems. You can provide information to people who are looking for products or people looking for additional income and get a margin – this can also be called Consulting. You can even partner with such people (if it works for you).

“Two weeks ago I was on Channels TV and met a man who requires five tons of dried catfish weekly and has the license to export to Europe and FDA certification to the US and is seriously looking for supply to be able to cope with 30 percent of his demand, to get the five tons of dried fish – he needs to process about 25tons of fresh fish. So if you or a collection of friends get this market imagine the inflow of cash.” 

Uwheraka says, “The business offers encouraging return on investment and guarantees  good  margins  through  creating brands by changes made to the original product’s status to enable longer product shelf lives, if only you get it right. This, in actual fact is owing to the ready availability of the agricultural produce – agro-food in Nigeria”. 

Success   Story  Of   Someone   In  Agric Processing And Storage 

Mogaji says, “The Group Managing Director of Frijay Consult Limited is a good example of a processor who has excelled beyond the shores of this nation. They have gone beyond exporting whole dried fish and now have different products exported and have not been able to meet up with demands. They started small within the shores of Nigeria  and  currently,  they  command  global attention”. 

Uwheraka says, “Yes, of course! There are, most especially, lots of Nigerian women into food processing and storage. This is what the African Women Entrepreneurship Programme has been championing,  with  her  chapter  in  Nigeria  – women are now really experts in Food Processing  through  series  of  seminars  and trainings, even for export. So, Frijay Consult Ltd has done it successfully alongside some others – Mrs. Ajuma Ataguba of Mabek Investment Ltd. 

More On Frijay Consult Ltd Success Uwheraka   says,   “Frijay   Consult   was established in 2004 after Frijay Enterprises and Frijay Agency held forth since 1980 arising from diverse business interests. 

“At various times Frijay was into supplies of sea shrimps, paper for recycling, manufacturing, and sales of confectionaries. Frijay was visible in major towns in Nigeria like Kano, Kaduna, Jos, Aba, Warri, Port-Harcourt, Lagos, among others sourcing for paper and other areas of interest. Today Frijay Consult Ltd has her headquarters in Lagos with Warri as Satellite Station.” 

Steps To Take In Setting Up A Processing And Storage Facility 

 Mogaji says, “There are different levels to get involved in; I will advocate that you start with what you have or start small and grow big. Meet with a seller  or  producer  in  the  market  where  the produce is being sold and ask them how to go about the storage. The chemical you will use to preserve is also sold locally.

“The quantity of the preservatives increases depending on how long you want to store the product. It is this simple except you want to complicate it. You don’t need NAFDAC or any certification to start but as you begin to expand, you will need NAFDAC and FIRO but till then, keep it simple. Over 95 percent of the garri consumed  in  this  country  does  not  have NAFDAC certification which goes a long way to show that certification is for certain products when they get to a certain level”. 

Uwheraka says, “There are no hard and fast rules. You can check the likes of Frijay Consult Ltd and other processors competent in hygienic and good manufacturing practices, so as to take you through the early stages. After this, contact the source of agricultural products to process. There is also need to visit engineering company for fabrication of some processing and storage equipment – the likes of FIIRO”. 

How Lucrative Is Agric Processing And Storage? 

Mogaji says, “If you buy during the dry season and want to sell between the months of March to June, you’ll make 50-100 percent return on it. If you are selling earlier than this, you’ll make 20-40 percent margin”. 

Uwhereka says, “It depends on which product you want to focus on; but for all value added products, processing is a good window for wealth creation”. 

Any  Special  Government  Funding  For Someone  Who  Wants  To  Go  Into  Agric Processing And Storage 

Mogaji says, “It is not popular for Government to fund storage now because it is perceived as hoarding except you are installing commercial silos which run into millions and you will need to provide 30-40 percent on the funding which runs into millions too. However, recently and happily, foreign NGO’s are gradually beginning to fund small  processing  operations  and  government parastatals are focusing on small scale processing because they create jobs easily and ensure food security”. 

Uwhereka  says,  “No  conspicuous  direct support from government. It is more of policy making with staggered implementation. We are still looking forward to getting notable support from the government: this will as well help food production  in  Nigeria.  Meanwhile,  we  have support from AWEP, as earlier mentioned”. 

Minimum Startup Capital 

Mogaji says, “Fifty thousand Naira (N50, 000) and above will be adequate depending on your projections. The amount you want to spend, will be determined by the volume of your project, or the level you want to enter, large scale is capital intensive”. 

Uwheraka says, “In my own way, this depends on what type of processing is required and size. Hindsight trends show about N2.5m to cover infrastructure, equipment and working capital”.

Other Things Needed By Someone Who Wants To Go Into Processing And Storage Of Agric Produce 

Mogaji  says,  “First,  get  knowledge  from experienced people in the field. Don’t make the general  mistake  of  assuming  that  practical people in the business with little or no education do not have detailed knowledge; their information is practical and largely based on experience”. 

Uwheraka says, “It is of most importance for what has been processed and stored to be good- looking to the eyes. So, there is need to get raw materials to package the food items. Check out our products, they are well packaged, even for international  standards.  Marketing  and  other administrative overheads are also in the list”. 

Advise To New Entrants 

Uwheraka says, “I will simply say, no knowledge is lost. So, get training on appropriate processing methods and try to get a mentor, someone experienced you look up to, to motivate and guide you”. 

A Machine Fabricator Speaks 

Mr. Femi Oduntan, A Machine Fabricator Speaks In This Interview 

Kind Of Machines Fabricated 

Oduntan says, “It depends on the product the farmer is requesting for or what the intending producer wants to put into the market. It could be cassava, beans, rice, yam flour, plantain flour. People have different requests. So we produce on request according to the specifications of our client”. 

You Mentioned Plantain; Is There A High Demand For Plantain Processing Machines? 

Oduntan says, “Yes. I might not be able to answer you as to whether there is an opportunity in plantain business itself but I know there is an opportunity in plantain flour processing. Apart from people demanding for the machine, the health needs of my age group also points to the potentials of this sector. People of my age are advised to take plantain flour and also wheat. I have and produce the machines that are used to process  and  also  the  ones  that  are  used  in packaging. There are also quality machines for those interested in our local food export. But people who do it locally can also make their money  because  Nigeria  has  huge  population advantage.  We  have  more  markets  in  this country”. 

How Long It Takes To Fabricate A Machine

Oduntan says, “It depends because sometimes  a  machine  can  have  other  small machines that would be affixed to it. So there are sets. You would talk of the dryer, miller, etc. So, if you are having more than one machine, I give 90 days. It would definitely be ready before 90 days but I like to give a 90-day ultimatum. Once it’s ready, I call the owner to come to pick it up. I do not do deliveries for purchases within the country but when my buyer is outside the country, I do understand because I know they are not leaving within the country, I add the charge and have it delivered. I have my reasons for not delivering within the country”. 

Let’s Take Cassava For Example, What Are The Machines Needed? 

Oduntan says, “After the processing in the production room, you need a grater, presser, dryer,  grinder,  siever  and  then  machines  for packaging. The grating can be done manually by the  local  people.  You  also  need  to  see  an agriculturist to advise you on how many days you need to soak your cassava because it includes some substance that are not good for consumption. I am not an agriculturist so I can’t talk about that”. 

How About Plantain Processing 

Oduntan says, “The plantain does not involve much. You should know that unripe plantain is what is used.  Once you have removed the back, you need a machine to turn your plantain into chips but this can also be done manually. Then you take it to the dryer. If you don’t have dryer, you can put it under the sun. After drying, you take to the grinder to turn it into powder. 

“For any food that is in powdery form, we have dispenser (machine) that makes packaging easy. It can be used even if you want to package it bigger bags. The dispenser is NAFDAC approved for  flour  foods  to  be  stored  before  they  are packaged. And these bags are stored in silos which is also what NAFDAC recommends for storage”. 

Which   Of  Your   Machines   Is   In   High Demand? 

Oduntan says, “People demand more for the cassava machines. There are a lot of benefits in cassava. Everything in cassava is money. People that  are  into  the  processing  don’t  even  get enough cassava. I understand people even get the cassava right from the farm ahead.  Talking about  our  local  products that have huge economic potential, I would say after palm kernel, it is cassava. Cassava is in high demand abroad because of it’s  use it as animal food, and also because of the ethanol derived from it. I have never fabricated palm kernel machine but I have an idea about how it can be done to some extent. Cassava can fetch you millions in two years”. 

Machines That Can’t Be Produced Locally

Oduntan says, “All machines can be produced  here in Nigeria.  And all parts are gotten here. Even if it is not exactly what we want, there is a way we can improvise to make it suit the purpose we want to use it for”. 

Why   Should   One   Patronize   Local Fabricators And Not Go For Imported Ones? 

Oduntan  says,  “It  is  good  to  patronize fabricators  here  in  Nigeria  because  they  are produced for the Nigerian market which means they are rugged. Even most of the ones brought from China are always re-modified. 

“As for me, I make use of the machines so I know where to add one or two things if need be. I have my own produce which I push into the market. And I closely follow advancements in technology. Most of our fabricators are not good users of the machines they produce. 

“If you purchase locally fabricated machines, you are sure they would last long. Iron can last for up to 100 years; it is only some parts you would be changing due to wear and tear. And compared to imported machines, it is easy to reach us for servicing of your engines, etc. Or when you need to train a new staff”. 

Advice 

Oduntan says, “For those starting up, NAFDAC requires all machines to be in place before start of business but there are some that one can still do without for financial reasons pending when one can get it later. For instance, one can make use of the sun in place of the dryer, and for grinder, one can patronize the local ones. But I encourage people to have all machines on ground before starting because they are involved in consumables. The use of dispenser reduces human contact. Sometimes, when you see the ways some foods are produced (without machines), you would not like to eat them – they use dirty hands, unkempt hair, etc. 

“And I always tell people, you don’t need to be a farmer before you become a farm producer. You can go into the farm, get their garri, repackage and sell. 

“A lot of people are scared of starting business on their own but I advise more people to come into the agricultural sector because the market is large. And if you are educated, it is an added advantage, because you would be able to do things differently. Even the rich people who are looking for where to invest their money, they can go into farm food produce. Agriculture is the backbone of any country. 

Nothing  stops  a  university  graduate  from roasting plantain. You would just do it in a different way. You can do plantain barbecue and I heard people are doing it abroad and making good money. You slice the plantain and put groundnut in it before roasting. And it has a lot of health benefits.  Plantain  and  groundnut  are  good health foods”.