investing in high quality tapioca flour in uganda : the why, how, what with and for whom ?

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Africa Innovations Institute Plot 78, Old Kiira Road, Bukoto. P. O. Box 34981, Kampala. Tel. 0414530288 HQCF AND CAVA Cassava Adding Value for Africa II is a project funded by the Bill and Mellinda Gates foundation in it’s second phase running across five African countries including Ghana, Nigeria, Malawi, Tanzania and Uganda. It is implemented by Africa Innovations Institute in Uganda and aims at increasing the incomes of small holder farmers through value addition, yield increase in cassava. Through value addition it promotes the processing of cassava into High Quality Cassava (Tapioca) Flour also called improved quality unfermented cassava flour. The flour is processed to reduce the cyanogenic glucoside levels and moisture content and to increase shelf life of cassava flour. HQCF is processed within a time frame of 24 hours from harvest of the roots to preserve its freshness and to avoid fermentation. Currently the most common drying method in Uganda is sundrying on raised metallic racks with Uganda set to receive two artificial dryers of 3000kgs per shift of eight hours due in October. This will ensure consistent quality and supply as compared to the sun drying method for the markets in Uganda and beyond. There are two types of HQCF namely HQCFC and HQCFG which slightly vary depending on the method of processing. HQCFC has a relatively mild cassava flour scent, larger particle size than HQCFG and is mildly creamy in colour. It is higher in starch content, around 80% and is processed without pressing; the method which reduces starch content in the cassava mash. HQCFG however is processed with the pressing included, which results in a softer and finer flour, lower in starch, around 70%. The latter is favorited for bakery, composite and paperboard markets because of it’s qualities. It also has a smaller particle size than HQCFC. HQCFC is favourited by the breweries market for it’s high starch content.

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Page 1: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

Africa Innovations Institute

Plot 78, Old Kiira Road,

Bukoto.

P. O. Box 34981,

Kampala.

Tel. 0414530288

HQCF AND CAVA

Cassava Adding Value for Africa II is a project funded by the Bill and Mellinda

Gates foundation in it’s second phase running across five African countries including

Ghana, Nigeria, Malawi, Tanzania and Uganda. It is implemented by Africa

Innovations Institute in Uganda and aims at increasing the incomes of small holder

farmers through value addition, yield increase in cassava. Through value addition it

promotes the processing of cassava into High Quality Cassava (Tapioca) Flour also

called improved quality unfermented cassava flour. The flour is processed to reduce the

cyanogenic glucoside levels and moisture content and to increase shelf life of cassava

flour.

HQCF is processed within a time frame of 24 hours from harvest of the roots to

preserve its freshness and to avoid fermentation. Currently the most common drying

method in Uganda is sundrying on raised metallic racks with Uganda set to receive two

artificial dryers of 3000kgs per shift of eight hours due in October. This will ensure

consistent quality and supply as compared to the sun drying method for the markets in

Uganda and beyond.

There are two types of HQCF namely HQCFC and HQCFG which slightly vary

depending on the method of processing. HQCFC has a relatively mild cassava flour

scent, larger particle size than HQCFG and is mildly creamy in colour. It is higher in

starch content, around 80% and is processed without pressing; the method which

reduces starch content in the cassava mash. HQCFG however is processed with the

pressing included, which results in a softer and finer flour, lower in starch, around 70%.

The latter is favorited for bakery, composite and paperboard markets because of it’s

qualities. It also has a smaller particle size than HQCFC. HQCFC is favourited by the

breweries market for it’s high starch content.

Page 2: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

WHY INVEST IN CASSAVA FLOUR?

Cassava starch can be used in it’s native form with minimal processes required

for extraction saving the investor costs in fuel and production costs as well as lots of

time. HQCF also known as improved quality cassava flour possesses a strong film, clear

paste, good water holding properties, and stable viscosity. This makes it most suitable

for adhesive purposes; it has great sensory qualities and a blunt taste with clear to sight

which makes it a suitable blending product that adopts the taste and appearance of the

product blended with without interference and lasts longer on the shelf compared to

other products.

WHY HQCF AS COMPARED TO OTHER FLOURS?

Cassava starch-HQCF is non fermented improved quality cassava flour which is

processed within a period of 24 hours. As a result it is low in microbial load, has lower

cyanogenic glucosides (lower cyanide levels due to the processing technology) than

common locally processed cassava flour, is industrially applicable with high starch

content, has a longer storage lifespan.

It has a small particle size as compared to other cereal starches and stronger

binding qualities which make it suitable for adhesive manufacture in paperboard and

plywood, texturizer and thickener in foods like tomato paste, soups and pasta and

toothpaste, a binder in beef sausages and other meat products, breweries and alcohol,

bio ethanol, paint, pharmaceuticals, a hardener in clay tile manufacturing, cooking

briquettes, in yarns and thread manufacture for textiles, a wheat flour substitute in

composite flour, and a diluant for fortificants and bread improvers in milling, in cakes,

biscuit, bagiya and sweets and pastries manufacture.

Initial studies carried out by National Resources Institute United Kingdom in

Ghana and Nigeria where the trials were initially conducted proved that consumer

acceptability of HQCF in products exists and that cassava’s qualities far outweigh those

of other starches in terms of ease of processing since it has no epicarp and can be

processed using the simplest technology and machinery with the extraction process

requiring little to minimal stages of alteration to make it suitable for use.

Page 3: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

HQCF conforms to the EAS standards on cassava processing EAS 7402010 and

UNBS standards on cassava flour processing. This ensures it’s industrial applicability.

Cassava in Uganda is the second most farmed crop after maize and is among the

Uganda government’s top 10 priority crops under the Ministry of Agriculture Animal

Industries and Fisheries. This ensures favourable policies which promote it’s

production and availability locally at a cheap price and ensures that research into the

best varieties and farming practices including technical support are widely available

from government and it’s partners which would save the investor extensive costs in

research and partner linkage.

Cassava in Uganda both in farming and in processing attracts no tax as it is one

of the government’s top ten priority crops and similarly agro processing facilities

outside Kampala benefit from income tax waiver when applied for on an annual basis.

It is lower in moisture content bearing between 10 – 12% moisture which aids in

transportation and storage and prevents moulding, and is of lower cost compared to

wheat flour with a kilogram selling at Ush 1500/= at market price and possesses a very

smooth texture compared to maize flour making it a suitable flour for blending in final

products as the particle has stronger absorbance and sensory qualities than maize

particles which remains rough to the taste.

It also has a benefit of absence of mitotoxins which are a risk in maize flour and

pose a health harzard to poultry and humans making it suitable for animal and human

consumption.

As majority of the root tuber is made from starch the process for starch extraction

in cassava is a relatively basic and cost effective as mature root is mainly composed of

starch and water with minimal other compounds including protein. This ensures the

starch can be used in it’s most basic form, saving the investor significant costs in

processing.

Investing in HQCF provides an investor with an opportunity to profit while

fulfilling his corporate social responsibility to maintain environmental sustainability as

the technology used in it’s grating process is fuel efficient at 1 litre per 1000kgs while

with the artificial flash dryer 64 litres per 3000 kgs of flour with minimal or no

emission an added benefit in obtaining international certification. Africa Innovations

Page 4: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

Institute partners with NACCRI to train farmers of cassava on safe agronomic practices,

post harvest handling and quality practices within the country. This encourages

dissemination of environmentally friendly training to farmers at the grassroots level

enhancing their livelihoods and securing the environment in the process. Currently the

project is benefitting several small holder farmers with the number expected to reach

24,000 by 2019. With copying practices and multiplier effect the project will change the

nature and face of farming for generations to come.

The current number of households depending largely on farming cassava for

their livelihood in Uganda is 75% of the population and 96% of these are small holder

farmers who largely depend on staples including maize and cassava for food security.

70% of the food staple grown is cassava. The addition of value to cassava increases

income for these small holders improving their access to essential basic needs like

medical care and better education. Currently the number of households benefiting

from cassava through value addition as HQCF is 2000 and this number projected to

increase to 14000 and more as increased production of HQCF and other cassava

products in Uganda is realized. An average farm gate price of fresh cassava roots which

is the largest current form of cassava sold in the market is 100 - 300/= and when value is

added the price per kilogram increases between 600 – 1500/= in the domestic market

which is an income increase of 50 % and 80 % from a farm gate price of 100 and 300/=

respectively. Investing in cassava as an investor would provide a chance to improve the

lives of some of the world’s poorest who live under 1.25$ a day and depend on farming

for livelihood who make up 19.7% of Uganda’s current population.

Uganda is gifted with plenty of natural resources including water and land for

expansion and cheap available labour which would enhance an investor’s productivity

and hence maximize profit.

Investing in value added cassava enhances the lives of Uganda’s over 6,350,400

under 25 year old labour force who are largely unemployed through creating market,

supply and production opportunities along the value chain. The rising trend of youth

joblessness in Uganda at 62% set to increase at 4.2% every year is a worrying trend that

can cripple the growth of the economy by creating more dependants hence reducing

buyer power in the economy. Already the 33 sites processing have generated

employment for youth within their communities who had previously few skills and

were unable to obtain employment within their communities. Majority of these are

Page 5: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

women. Investing in HQCF provides an opportunity to be part of the solution by

improving the lives of unemployed people within the community through creating

employment while enhancing the company’s corporate social responsibility.

Cassava value addition through cassava processing increases food security by

enabling storage for prolonged periods of time. HQCF can be stored on shelf at room

temperature for up to 2 years without spoilage when under air tight storage and six

months when in lined polythene bags. This enhances the possibility of accessing export

markets at a cheaper cost as one factor of hindrance is the high perishability and

bulkiness which is reduced through value addition.

Engaging in value addition in cassava through HQCF impacts the market

through enhancement of the introduction of new value added products to the market

and thus creating new demand and new value chains in the economy. This ensures a

stable economy and growth with the country depending less on imports improving the

country’s balance of payment.

HQCF though a relatively fresh concept in Uganda has been around since 1992

when trials were initiated in Ghana and Nigeria by National Resources Institute. It

boasts low competition in the market giving the investor a first mover advantage

essential in creating customer loyalty to the brand. It enables the investor to tailor their

product to the market and set the market standard ahead of any subsequent

competition providing an advantage in the long term for business sustainability and

growth.

The increasing demand for healthier food products is yet another factor that

makes investing in HQCF a profitable venture. HQCF is a product whose gluten level is

low while essentially high in starch content. As cassava is second only to sugarcane as

the world’s highest energy giving food. This makes it a suitable high energy food

without the downside of high gluten levels as in other starchy foods. It is essentially

useful in maintaining lower gluten levels in gluten sensitive patients. Who alone

constitute 8.3% of Uganda’s population and it’s lower cyanide content <10% which

matches with the international standard requirements, lowers the possibility of cyanide

induced poisoning which is common in locally processed and consumed cassava. This

bears an advantage for the investor since it passes local; UNBS, international and

regional; EAS quality standards for cassava flour. Making it essential for Uganda’s

Page 6: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

young and energetic population as well as her elderly and icreasingly health conscious

consumers.

HQCF provides for the investor various options as it bears the advantage of

versatility in application. It can be applied as a texturizer and thickener in numerous

food products including tomato paste, soups, pasta, beef sausage; in composite flours,

milling as diluant for fortificants, wheat substitute in biscuits, bagiya, doughnuts, cakes,

pastries; as a binding agent in industrial application including paperboard and

plywood adhesive extender; paint and textile yarn (thread) manufacturing in clay tile

manufacturing, briquettes; in toothpaste and pharmaceuticals as a thickener; livestock

feed including poultry, cattle and fish feed; brewing beer, alcohol and bio ethanol. As a

product with versatile applications both industrially and in home consumption, this

allows for security in business as these various end markets can offer alternative outlets

for HQCF in event of unforeseen limitations in one market as they will be in a better

position to tailor their business model to different outlets that are be subject to variant

market influences. It increases profit maximization and enhances risk mitigation.

It’s performance as an application in all these products out performed it’s

competitor products: wheat, maize and locally produced cassava flour in having

superior sensory qualities and stronger adhesive binding qualities, longer shelf life in

storage, ease of adaptability, ease of milling and cost benefits, tax and government

exception and stability in prices and yield, lower microbial load, lower cyanogenic

glucosides while retaining a better visual appeal.

The future for cassava and HQCF in Uganda and the world is bright. As we see

rising costs of wheat flour and taxes imposed on imports, fluctuations in foreign

exchange, increasing competition among wheat millers and producers, with the

growing uncertainty about the future of fuel prices, investors need to ensure

engagement in cost reduction to remain sustainable. HQCF provides this option as it is

a low cost preparation process involving less labour and capital intensive investment.

HQCF supply in Uganda currently stands at close to 7000 per annum in 2014 from

Sundrying. It is due to increase by 1,872,000kgs per annum after the acquisition of two

artificial flash dryers in Uganda in October 2015. This will be in addition to the current

production from the sun drying processors who currently process mainly HQCFC.

Page 7: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

HQCF, WHEAT AND MAIZE COMPARISON

HQCF WHEAT MAIZE

1.No epicarp, fewer

compounds to separate in

milling process

Has epicarp and more

compounds to separate in

milling process

Has epicarp to separate in

milling process

2.Process involving less

labour and less fuel cost

Longer process involving

labour and power costs

Longer and more expensive

milling process

3.Minimal percentage of

other compounds hence

minimal loss in milling

Loss of flour due to

extraction rate

Loss of vital nutrients in

epicarp

4.Higher in starch second

only to sugarcane

Less starch content than

HQCF

Less starch content than

HQCF

5. No Gluten

Has Gluten

No gluten

6. Excellent sensory

qualities and faint or no

cassava scent with smooth,

clear and extra fine

particles to taste

Good sensory qualities

with white creamy foggy

particles

Fair sensory qualities with

white creamy foggy

particles

7.Neutral taste and scent

hence adopting the taste

and scent of other

compounds

Strong wheat scent retained

in flour interfering with

final taste of mixed product

Strong maize scent and

rougher particles to taste

8.Longer shelf life in

storage up to six months in

lined bags

Dry storage required Dry storage required

9. Excellent binding

qualities

Good binding qualities

Sets and hardly reusable

the next day

10.No taxation on cassava High taxation on wheat Taxation on Maize imports

Page 8: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

and agro processing

outside Kampala

imports into Uganda

into Uganda

12. Priority crop attracting

government and it’s

partners support

Attracts taxes on import Also a government priority

crop in Uganda

14. Resilient under harsh

weather conditions fewer

pests

Vulnerable under harsh

weather conditions

Extremely vulnerable

under harsh weather

conditions

15. Lower investment and

running costs

More capital required for

investment

More capital required for

investment

16. Cyanide content

reduced to <10ppm after

processing

No cyanide High risk of Mitotoxin

poisoning when used in

feeding.

PROCESSING HQCF

The fresh roots are harvested from the farm and transported to the processing site

where they are peeled and soaked for 24 hours to lower the cyanogenic glucoside levels

and then chipped or grated depending on the required flour. The chipped or grated

root is then dried using sun drying racks or artificial drying method using the flash

dryer. With sun drying the process takes 3 – 4 hours and with artificial drying this can

take between 5 seconds using Flash dryer or to 1 hour depending on the other type of

machine used. The output with sun drying is between 500 – 800 kg per day and

artificial drying using the flash dryer is 3000kgs per day in an 8hr shift. The dry chips or

mash retain moisture content of 10 – 12% and is then milled and packaged in lined

plastic bags and stored at room temperature.

COMPARISON BETWEEN BUYING HQCF AND PROCESSING HQCF

BUYING PROCESSING

Less cost and quality control Sufficient cost and quality control

Lower level of investment Higher level of investment

Instant applicability Investment set up required before

Page 9: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

applicability

Shorter application process Longer application process

Requires flour, packaging, minimal

operational and transportation costs

Requires purchase of machinery,

transportation, importation tax, fresh roots

supply, water, peeling, packaging, higher

loading cost, fuel cost

With buying the flour is loaded onto the truck and transported to the factory where it is

offloaded, repackaged or utilized before delivery to the market outlets.

With processing the roots are identified and purchased from farmers and loaded onto a

truck and transported to the processing site where they are peeled, washed, grated,

pressed and dried using either sun or artificial drying. Then the dry mash is milled and

packaged and transported to the factory where it is repackaged or utilized before

delivery to the market outlet.

The cost per kilogram with buying ready processed flour goes at 1500 or 1400/= and the

cost of processing with the sun is 550/= and artificial drying is 850/=.

BUYING SUN

PROCESSING

ARTIFICIAL

PROCESSING

WHEAT COST MAIZE

COST

1400 550 850 2200 1500

$ 0.50 usd $ 0.20 usd $ 0.30 usd $ 0.79 usd $ 0.53 usd

GENERAL PERCENTAGE COST REDUCTION IN USE OF HQCF FROM COST OF

WHEAT

BUYING % REDUCTION SUN PROCESSING %

REDUCTION

ARTIFICIAL PROCESSING

% REDUCTION

36.3 75 61.4

GENERAL PERCENTAGE REDUCTION FROM COST OF MAIZE at 1500 (pkg)

Page 10: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

BUYING % REDUCTION SUN PROCESSING %

REDUCTION

ARTIFICIAL PROCESSING

% REDUCTION

6.6 63 43

With sun processing the price reduction is lowest however there are moderate

limitations in supply consistency during the rain season.

With artificial drying the price reduction is optimum and provides the best consistency

in terms of quality and supply as it is not limited by weather conditions.

With buying the price in negotiable with the processors depending on delivery

arrangements and it can be extended to both artificial drying processors and sun drying

processors.

PERCENTAGE REDUCTION WITH COMBINED WHEAT AND CASSAVA PER

KILOGRAM OF FLOUR USED IN BISCUITS, BAKERY AND COMPOSITE.

1. IN BUYING HQCF

(AT CASSAVA FLOUR COST OF 1500/= PER KILO)

BREAD AND BISCUITS AT SUBSTITUTION RATE OF 25% CASSAVA FLOUR AND

75% WHEAT FLOUR

250G CASSAVA = 375/= (at a cost of 1500 pkg)

750G WHEAT = 3750/= (at a cost of 5000pkg)

SAVING OF WHEAT = 250G WORTH 1250/=

ACTUAL SAVING = 875/= PKG OF FLOUR USED TO MAKE BREAD

39.7% SAVE

2. IN PRODUCING ONES OWN HQCF BY SUNDRYING

FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR

COMBINATION

Page 11: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

ASSUMING COST OF PRODUCTION = 550 PER KG CASSAVA FLOUR AND 5000

PER KG OF WHEAT FLOUR

250G CASSAVA = 137/= PKG

750G WHEAT = 3750/= PER KG

SAVING 250G WHEAT FLOUR PER KILO USED WORTH 1250/=PKG

ACTUAL SAVING = 1113/= PER KILOGRAM OF FLOUR USED TO MAKE

BISCUITS/BREAD

50.5% SAVE

3. IN PRODUCING ONES OWN BY FLASH DRYING

FOR BREAD AND BISCUITS AT 25% CASSAVA FLOUR AND 75% WHEAT FLOUR

ASSUMING COST OF PRODUCTION = 850 PER KG CASSAVA FLOUR AND 5000

PER KG OF WHEAT FLOUR

250G CASSAVA = 213/= PKG

750G WHEAT = 3750/= PER KG

SAVING 250G WHEAT FLOUR PER KILO USED WORTH 1250/=PKG

ACTUAL SAVING = 1037/= PER KILOGRAM OF FLOUR USED TO MAKE

BREAD/BISCUITS

47% SAVE

IN COMPOSITE

EG; PREMIXES, DILUANTS AT RATE OF 10% CASSAVA FLOUR AND 90%

WHEAT FLOUR

1. IN BUYING

AT 1500 PER KG OF CASSAVA FLOUR AND WHEAT AT 2200/= PER KG

Page 12: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

100G CASSAVA FLOUR = 150/= PKG

900 G WHEAT FLOUR = 1980/= PKG

SAVE 100G WHEAT PER KILO OF FLOUR = 220/=

ACTUAL SAVING = 70/= PER KILO GRAM OF FLOUR MADE

3% SAVE

2. IN PRODUCING OWN USING SUN DRYING

AT COST OF 550/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR

100G CASSAVA FLOUR= 55/= PKG

900G WHEAT FLOUR = 1980/= PKG

SAVE 100G WHEAT PER KILO OF FLOUR = 220/=

ACTUAL SAVING = 165/= PER KILO GRAM OF FLOUR MADE

7.5% SAVE

3. IN PRODUCING OWN USING FLASH DRYING

AT COST OF 850/= PER KG CASSAVA AND 2200 PKG OF WHEAT FLOUR

100G CASSAVA FLOUR = 85/= PKG

900G WHEAT FLOUR = 1980/= PKG

SAVE 100G WHEAT PER KILO OF FLOUR = 220/=

ACTUAL SAVING = 135/= PER KILO GRAM OF FLOUR MADE

6.14% SAVE

FOR PREMIXES IN COMPOSITE

AT 1500 PER KG OF CASSAVA FLOUR AND WHEAT OR MILLET AT 2200/= PER KG

Page 13: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

20% CASSAVA FLOUR AND 80% WHEAT FLOUR COMBINED

200G CASSAVA FLOUR = 300/= PKG

800 G WHEAT FLOUR = 1760/= PKG

SAVE 200G WHEAT PER KILO OF WHEATFLOUR = 300/=

ACTUAL SAVING = 140/= PER KILO GRAM OF FLOUR MADE

6.1% SAVE

AT A COST OF 1400 PER KILO (IN BUYING HQCF

ALREADY PROCESSED)

1. COMPOSITE AT 10% CASSAVA FLOUR AND 90% WHEAT FLOUR

COMBINED

CASSAVA AT COST OF 1400/= PER KG CASSAVA AND 2200 PKG OF WHEAT

FLOUR

100G CASSAVA FLOUR = 140/= PKG+

900G WHEAT FLOUR = 1980/= PKG

SAVE 100G WHEAT PER KILO OF FLOUR = 220/=

ACTUAL SAVING = 80/= PER KILO GRAM OF FLOUR MADE

3.6% SAVE

2. BISCUITS AT 20% CASSAVA FLOUR AND 80% WHEAT FLOUR

COMBINATION (BUYING)

For biscuits the recommended substitution is between 20 – 30% Improved cassava flour

(HQCF) for hard dough biscuits. The cost variation here would be for a kilo of Wheat

flour the estimated cost being 2200/= and for Improved cassava flour (HQCF) it is

Page 14: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

1400/=.The difference in cost is 800/=. This would mean at a 20% substitution rate of

wheat flour with HQCF per kilo of flour used in biscuit making the cost of a kilo of

combined wheat and cassava would be a 36.4% price variance per kilogram of Cassava

flour as compared to wheat.

The price spent on one kilogram of flour for biscuits would be 1760/= (a reduction from

by 20%) + 280 (cost of 20% of I kilo of cassava flour) is 2040. From 2200/= to 2040 is a

price reduction by 160/= (7.3% reduction in cost of flour used in biscuits making). And

2000/= at a 30% substitution rate a 9% reduction in cost spent on 1 kilo of flour used to

make biscuits.

3. QUEEN CAKES

For Queen cakes at a 20% substitution rate would mean a reduction in cost spent on I

kilogram of flour similarly by 7.3% the cost spent on I kilo being 2040/= and a similar

price reduction by 160/=.

Even though Queen cakes can be substituted with 10% – up to 50% cassava flour

aspects of similarity to the non substituted queen cakes must be considered including

shelf and temperature variation performance after storage over long periods of time

and customer preferences.

4. BAGIYA

Bagiya may be made with up to 100% substitution rates depending on the cost needs

and customer preferences. With a 50% substitution rate the cost spent on a kilogram of

combined wheat and cassava flour to make bagiya would be 1100 + 700 =1800/=. This

would be a reduction in cost per kilogram of flour by 400/= (an 18% reduction).

Tomato Paste (as a texturizer and thickener )

The current common thickeners in use include Tomato pulp powder, starches including

potato starch, corn starch, modified starches, hydrocolloids including

carboxymethylcellulose, xanthan gum, locust been gum, guar gum, traganth gum.

Tomatoes used to make tomato ketchup and paste may be substituted with a 20 – 30 %

utilization of Cassava flour (HQCF). This would be done without any changes in

texture and taste as HQCF has a bland taste and smell and is clear to sight hence it

easily adapts the qualities of the substance it blended with. This in addition to the

Page 15: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

sensory and other benefits make HQCF a viable substitute for cost reduction in tomato

paste.

At a 30% substitution the cost spent on making 1 kilogram of paste would be at a rate of

5: 1 ( 5 kilograms of tomatoes – 1 kilogram of paste)

5000kg (per I kg of tomatoes in Uganda) * 5 (kgs of fresh tomatoes to make 1 kg of

paste) = 25000/=

Which would be a price reduction to 17,920= from 25,000/=.

A cost reduction by 7,080/= (a 28% reduction in cost spent on tomatoes to make 1

kilogram of paste)

5. IN PAPER (AS AN ADHESIVE)

Cassava starch possesses a strong film, clear paste, good water holding properties, and

stable viscosity. This makes it most suitable for adhesive purposes; at the end of the

wet treatment, when the basic cellulose fiber is beaten to the desired pulp to increase

the strength of the finished paper and to impart body and resistance to scuffing and

folding; at the size press, when the paper sheet or board has been formed and partially

dried, starch (generally oxidized or modified) is usually added to one or both sides of

the paper sheet or board to improve the finish, appearance, strength, and printing

properties; in the coating operation, when a pigment coating is required for paper,

starch acts as a coating agent and as an adhesive.

In paperboard 96.4% of adhesive is made up of flour and the rest is made up of sodium

hydroxide, borax, sodium formaldyhyde for basic adhesive. In some instances clay,

antifoam, sodium bisulphate, calcium stearate or magnesium sulphate may be added.

If 25% substitution of starch used to make glue extender is cassava flour (usually wheat

or maize ) If wheat starch is replaced with cassava flour the cost reduction would be less

by 800/= when HQCF sells at a price of 1400/= per kg. The benefits of cassava starch are

that it provides stronger binding properties and does not set as maize flour does and

can be used for longer.

6. IN BISCUITS

Page 16: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

Tests conducted by National Resources Institute in Ghana in 1996 on the consumer

acceptability of cassava flour in the biscuits and bakery products. In greater Accra the

tests showed a consumer acceptability of 35% cassava flour in sweet dough biscuits and

60% in hard dough biscuits, however the recommended maximum substitution is 50%

due to brittleness of products containing high levels of cassava flour.

At 35% substitution for 0.5kg used to make 1kg of sweet dough biscuits a cost saving of

32% was made.

7. IN LIVESTOCK

In livestock HQCF in the form of pellets (grits) is a healthier and safer choice for the

poultry and ruminants as it contains a minimal amount of cyanide at <10 parts per

million. Much as maize flour is available and cheaper than HQCF, Maize flour bears a

risk of mitotoxins which are the highest cause of death in reared poultry and would be a

much better choice for a livestock investor who wishes to secure the health of his stock.

NOTE: HQCF/G and C can be used in other products including toothpaste, pharmaceuticals,

thread binding in textiles, bio fuel, ethanol, several of which have not been included. For purposes of business strategy, the areas concentrated on present a bigger share in the area of

Uganda and East Africa’s market segments in terms of production. An investor wishing to

invest in the above is also encouraged.

INVESTMENT COST PER METHOD OF PROCESSING USED

SUNDRYING COST

for every set of 2

racks

SOLAR

DRYING

COST

For every 1 solar dryer

FLASHDRYING COST

for every 1 flash dryer

Raised metallic racks

(2)

2,000,000 Raised metallic

racks (2)

2,000,000 Flash dryer 1 and shipping

200 -250,000,000

Washing basins 2

550,000 Washing basins 2

50,000 Washing basins 2

50,000

Page 17: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

Press 1 and Grater 1

8,000,000 Press 1 and Grater 1

8,000,000 Press 1 and Grater 1

8,000,000

0 0 0 0 Generator 30

kva

30,000,000

0 0 Solar Dryer

shade

2,000,000 0 0

Store house

(optional)

40 –

100,000,000

Store house

(optional)

40 –

100,000,000

Store house

(optional)

40 –

100,000,000

Truck 3 ton

(optional)

40 –

80,000,000

Truck 3

ton

(optional)

40 –

80,000,000

Truck 5 ton

(optional)

40 –

80,000,000

MARKET OPENINGS

Industry Name of the end product Actual market in(Tons) Per annum

Actual Market Size in (USD)

Potential

Market size in

(USD) Currently

Imported

Products ( 2013)

BISCUIT HARD DOUGH BISCUITS 4248 TON PER ANNUM 1,888,000

904,494,000

PAPER BOARD STARCH BASED ADHESIVE 1440 TON PER ANNUM 640,000

4,897,000

PLYWOOD GLUE 250 TON PER ANNUM 111,111

143,000

ANIMAL FEED 8000 TON PER ANNUM 3,555,555

193,000

BREWING BEER 2500 TON PER ANNUM 1,111,111

1,574,000

BAKERIES BREAD AND PASTRIES 14,000 TON PER ANNUM 6,222,222

9,546,000

COMPOSITE FLOUR COMPOSITE FLOUR 1000 TON PER ANNUM 444,444

408,000

PHARMACEUTICALS STARCH 0 787

6,660,000

RISKS AND MITIGATION OF RISKS FOR HIGH QUALITY CASSAVA FLOUR AS

COMPARED TO WHEAT AND MAIZE RISKS

CASSAVA WHEAT MAIZE

Page 18: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?

1.Cyanogenic glucosides High Import taxes on

wheat

Mitotoxin poisoning

2.Roots bulkiness

increasing transport costs

High exchange rates

variance

Intense price fluctuation

and flooding on the market

3.High perishability of

fresh roots

High transport costs of

grain

High susceptibility to harsh

weather damage

MITIGATION OF RISKS

CASSAVA WHEAT MAIZE

1.Processing method

reduces cyanogenic

glucosides to <10 ppm

High Import taxes on

wheat

Mitotoxin poisoning

2.Processing techniques

reduces moisture content

by up to 90% reducing

bulkiness and high

transport costs

High exchange rates

variance

Intense price fluctuation

and flooding on the market

3.Processing techniques

reduces moisture content

by up to 90% reducing

perishability and

prolonging shelf life

High transport costs of

grain

High susceptibility to harsh

weather damage

CONCLUSION

Cassava, apart from being the staple food for many households in Uganda is a crop that

is readily available, easy to farm and tolerant to harsh weather conditions. The new

varieties released minimize the risk of damage to disease in cassava. Cassava is a high

priority crop under the Ministry of Agriculture, Animal Industries and Fisheries and

immense support is available through Non Governmental Organizations and

government to promote agro processing and value addition so as to enhance the lives of

millions of Ugandans dependant on agriculture and cassava in particular. Investing in

High Quality Cassava Flour supports Uganda’s Sustainable Development Goals and

Poverty Eradication Action Plan through creation of jobs and skills transfer especially to

the youth and value addition to agri based products.

Page 19: Investing in High Quality Tapioca Flour in Uganda : The Why, How, What with and For Whom ?