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REPORT OF THE ASIA REGIONAL CONSULTATION ON THE GLOBAL CASSAVA DEVELOPMENT STRATEGY

co-sponsored by

International Fund for Agricultural Development (IFAD)

The International Center for Tropical Agriculture (CIAT)

held in

Bangkok, Thailand

23 to 25 November, 1998

Asian Stakeholders Consultation on a Global Cassava Development Strategy Bangkok, Thailand, November 23–25, 1998

PROGRAM

Monday, Nov. 23Presentation of National. Regional and Global Strategy Reports
 Chairman - Pham Van Bien
0800–0815Welcome to participants by Dr. Vijai Nopamornbodi, Deputy Director General, Dept. of Agriculture
0815–0830Background and objectives of the meeting -Reinhart Howeler
0830–0915Present situation and future potential of cassava in Thailand - Chareinsuk Rojanaridpiched
0915–1010Present situation and future of cassava in Guangxi, China - Jin Shu Ren and Tian Yinong
1010–1020Coffee break
 Chairman - Tian Yinong
1020–1040Present situation and future potential of cassava in Indonesia
1040–1100Present situation and future potential of cassava in India
1100–1115Present situation and future potential of cassava in Viet Nam
1115–1130Present situation and future potential of cassava in the Philippines
1130–1145Present situation and future potential of cassava in Malaysia
1145–1230Discussion of the various country reports
1230–1330Lunch
 Chairman - Suyamto H.
1330–1415Cassava in Asia - Expanding the Competitive Edge in Diversified Markets - Cair Hershey
1415–1500Discussion of Regional Reports
1500–1520Coffee break
 Chairman - Tan Swee Lian
15-20-1605A Global Development Strategy for Cassava: Transforming a Traditional Tropical Root Crop -Truman Phillips
1605–1700Discussion of Global Strategy Paper
1800–1900Dinner
1900–2100Meeting of Cassava Research Advisory Committee
Tuesday. Nov. 24Presentation of regional Projects and Thematic Studies
0800–0830Product definition and market identification - Truman Phillips
0830–0900Environmental assessment of commercial cassava processing - John Wood, Christopher Oates and Klanarong Sriroth
0900–0940Environmental assessment of cassava production practices - Reinhardt Howeler
0940–1015Discussion of thematic studies
1015–1035Coffee break
 Chairman - S. Edison
1035–1100CIRAD root crop processing and marketing project in Viet Nam and China -Guy Henry
1100–1130Nippon Foundation project on sustainable cassava production - Reinhardt Howeler
1130–1200Discussion on regional projects
1200–1330Lunch
 Chairman - Fernando Evangelio
1330–1500Cassava constraints analysis and needs assessment - Guy Henry
1500–1520Coffee break
1520–1730Discussion in working groups (by country) about national, regional and global strategy papers and to define research and development priorities
1800–1900Dinner
Wednesday. Nov. 25
 Chairman - Chareinsak Rojanaridpiched
0800–1000Presentation of working group results to plenary session
100–1020Coffee break
 Chairman - C. Balagopalan
1020–1230Discussion in working groups (by themes) about thematic studies and future needs
1230–1330Lunch
 Chairman - Truman Phillips
1330–1500Presentation of working group results to plenary session
1500–1520Coffee break Chairman - Gyu Henry
1520–1630Panel discussion and general discussion on strategies and priorities as well as priority setting of projects to be submitted for financing
1630–1700Summary of Conclusions and Proposed Strategies - Chareinsak Rojanaridpiched and Pham. Van Bien
1800–2000Closing dinner at Suan Thip Baan Suan Restaurant in Pakkret

Working Groups
Tuesday and Wednesday - Nov. 24-25
Working Group 1 Thai participants:- Chairman: Chareinsak Rodjanaridpiched
  Reinhardt Howeler -Rapporteur: Charn Thiraporn
Working Group 2Chinese participants:- Chairman: Jin Shu Ren
  -Rapporteur: Tian Yinong
 Guy Henry  
  Clair Hershey  
Working Group 3 Vietnamese participants-Chairman: Pharn Van Bien
  -Rapporteur: Nguyen Duy Duc
 Christopher Oates  
 Truman Phillips  
Working Group 4 Indonesian participants- Chairman: Suyamto, H
  -Rapporteur: Hardono Nugroho
  Chris Wheatley  
Working Group 5Indian participants- Chairman: S. Edison
  -Rapporteur: Tan Swee Lian
 Fernando Evangelio  
  John Wood  

Co-sponsors of Consultation Meeting

International Fund for International Development (IFAD) - Rome, Italy

Centro Internacional de Agriculture. Tropical (CIAT) - Call, Colombia

Organizing Committee

Reinhardt Howeler - CIAT Regional Cassava Office, Bangkok, Thailand.

Charri Thiraporn. - Department of Agriculture (DOA), Bangkok

Preecha Suriyaphan - Field Crops Research Institute, DOA, Bangkok

EXECUTIVE SUMMARY

A consultation of Asian cassava stakeholders was held in Bangkok from 23-25 November 1998, as part of an ongoing process to develop a broad-based global strategy for optimizing cassava's contributions to development. The meeting had the following objectives:

  1. Provide feedback on the draft Global as well as regional cassava development strategies, and supplementary documents, from the perspective of the Asian region.

  2. Formulate a set of priority issues, for the Asian region, that should be considered in the final formulation of the Strategy and its subsequent implementation.

  3. Discuss the priority projects to be submitted to IFAD or other donors for financial support.

Participants represented national research programs, private industry, and universities from the seven most important cassava-growing countries of South and Southeast Asia: China, India, Indonesia, Malaysia, Philippines, Thailand, and Viet Nam. In addition representatives from international R&D centers attended (CIAT, CIP, CIRAD, NRI).

The program involved five basic activities:

  1. Country reports to provide a broad overview of the current cassava situation in each participating country.

  2. Review of regional and global strategy reports.

  3. Thematic reviews of market development, and environmental assessment of cassava production and processing.

  4. Review of specific research projects on erosion control in cassava-based systems, marketing studies, and constraints analysis.

  5. Working group deliberations on developing national and regional priorities, and related project proposals.

There was broad consensus that cassava has a pivotal role to play in rural development in Asia. This role continues to evolve, driven largely by the globalization of markets, long-term income growth, increasing populations, and new technology options for cassava and alternative energy sources. Cassava's roles in contributing to development revolve around future product options that rely on concentration, innovation, and/or competition. The wide range of product and marketing options make cassava a highly flexible component in a strategy for development aimed at generating income and protecting the environment, the two goals cited as most important for the region. The categories of products deemed to have high potential for the region are: starch (native and modified), starch derivatives (a wide range of household and industrial products), snack and ethnic foods, flour and animal feed.

The three R&D activities identified as most important for realizing development goals were: process and product development, market development, and varietal improvement. The identification of potential projects followed these themes to a large degree, but with one proposal aimed at reducing environmental impact of starch processing.

1. BACKGROUND

Cassava supports nearly half a billion people as a source of dietary calories and as a source of income, primarily the rural and urban poor in the tropics. Africa, Asia and Latin America/Caribbean produce 48, 32 and 20%, respectively, of the world's cassava. In recognition of these critical roles of cassava, the International Fund for Agricultural Development (IFAD) initiated a series of consultations, studies and reviews, as input into developing a strategy for optimizing cassava's contribution to development. A brainstorming meeting convened by IFAD recognized cassava as a food security crop and a commercial crop that lends itself to a commodity approach with strong potential to impact four fundamental development goals: alleviation of poverty, food security, equity, and protection of the environment. The actual and potential contribution to each of these goals varies widely across the continents.

IFAD proposed, and provided support, to develop a global strategy, with the purpose of..

  1. Identifying the opportunities for further public and private investments;

  2. Developing a framework for international technical cooperation for research and technology transfer;

  3. Identifying more cost effective institutional mechanisms for rationalizing (and increasing to the extent possible) the allocation of public and private resources for research and investment; and

  4. Setting the scene for future debates on global issues.

The global strategy requires a coalition of stakeholders including cassava producers and their organizations, governments, the donor community, technical and research agencies and their networks, universities, NGOs and their networks, and the private sector in order to achieve the objectives set out above.

The strategy is being developed from a number of country case studies, regional reviews, and thematic reviews. A review workshop was held in June 1997 to determine progress and plan next steps in completing the strategy. A draft strategy was prepared, and distributed to regional bodies and stakeholders for comment and modification. Each region held a stakeholder consultation to review the strategy and-present regional perspective. Reports of the Africa and Latin America/Caribbean consultations are available separately.

2. FORUM FOR THE REGIONAL CONSULTATION

The Asia regional consultation was held at the Maruay Garden Hotel, Bangkok, 23-25 November 1998. The thirty-two participants included representatives of governmental and non-governmental institutions, producer and processing organizations, the donors, the national and international research centers and the private sector. The list of participants is noted in Annex 1.

3. PLENARY PRESENTATIONS

3.1 Opening remarks

Dr. Vijai Nopamornbodi, Deputy Director General, Department of Agriculture opened the meeting with a welcome to participants.

Dr. Reinhardt Howeler described the background of the Global Cassava Strategy, and the series of events and papers leading up to the current consultation. Objectives of the meeting were to:

  1. Provide feedback on the draft Global as well as the Regional Cassava Development Strategy and supplementary documents, from the perspective of the Asian region.

  2. Formulate a set of priority issues, for the Asian region, that should be considered in the final formulation of the Strategy and its subsequent implementation.

  3. Discuss priority projects to be submitted to IFAD or other donors for financial support.

3.2 Country reports

The first half-day of presentations consisted of country summaries from the seven major producing countries of the region: China, India, Indonesia, Malaysia, Philippines, Thailand and Viet Nam.10 Each country presented an overview of production, cassava use and trade, and the constraints and opportunities for further development of the crop.

10 Full report or their summaries are available from the CIAT Bangkok office (CIAT-Bangkok@cgiar.org)

In China cassava production is growing on marginal lands where rice cannot be cultivated. The main market growth is for industrial products - native or modified starch and their derivatives. On-farm animal feeding, mainly pigs, is important as a means of adding value to the crop. Constraints are: unstable markets, competition with other crops, soil fertility degradation and erosion. Guangxi Province in China, with the highest concentration of production, is already experiencing political and economic pressure to reduce the pollution from processing plants.

India produces cassava almost exclusively in the South. A research center (CTCRI) at Trivandrum works across a broad range of research activities. Intensive cultivation practices result in the world's highest mean yields for cassava, of 24.5 t/ha. Cassava is mainly used for human consumption (Kerala) or starch extraction (Tamil Nadu). Process and product developments are seen as the principal research needs to bring additional benefits to the cassava sector.

Indonesia has a long history of cassava utilization as a staple food, especially where soil and climate conditions do not permit growing of rice, or in years of rice shortfalls. Nonetheless, cassava's role as food security crop is declining, with new interest in further diversification of products and markets. Most of the production is used internally, although there are significant exports of dry chips for animal feed and of starch. Indonesia is historically Asia's major producer, although overtaken by Thailand in the 1970s and 1980s. There is interest in expanding demand in the processed food industry, and for flour as a wheat substitute.

Cassava in Malaysia is used mainly for starch - three companies have been in business for over 40 years. Nonetheless, other crops, mainly rubber and oil palm, compete with cassava for land; as a result area planted has declined from a high of 20 000 hectares in 1976 to only about 2 000 ha in 1996. 11 High labour costs are also a major constraint for cassava, and there is a strong need to mechanize. While the government is promoting domestic production of agricultural products as a means of saving foreign currency, the competitiveness of cassava remains a concern, both in starch and animal feed markets.

11 It was noted that FAO statistics for cassava production in Malaysia show a considerably higher area (39 000 ha in 1997)

In the Philippines the main market for cassava continues to be food uses (44%), followed by starch (38%) and animal feed (18%). Like in much of Asia, cassava occupies areas unsuited to rice, the preferred food. Future growth is expected to be mainly in the industrial sector. The research program at the Philippine Root Crops Research and Training Center has developed a range of production and processing technologies. Market development was defined as the highest priority area of research for the future.

The declining export market for pellets for animal feed is a broadly felt force in Thailand, and to a lesser degree in Indonesia. This has driven a search for new markets, mainly native and modified starch. In Thailand about 50% of production now goes to starch. Exports of starch rose at a rate of about 10% per year from 1974 to 1996. The domestic animal feed market has also been targeted as a means of absorbing production. One of the constraints is the high cost of imported protein required to balance diets for poultry, pigs or ruminants.

Cassava production is distributed throughout Viet Nam, occupying the poor soils of mountainous and hilly areas. As the economy has improved dramatically over the past decade, cassava's role has shifted from mainly a food security crop to an industrial crop and as a source of income through on-farm animal feeding. In South Viet Nam several large-scale starch and MSG factories are operating, largely funded by foreign investment. The cassava industry in the north is less developed, and is based on traditional household-level chip, starch, alcohol and maltose processing.

3.3 Regional report

Dr. Clair Hershey, principal author of the Asia regional review (Cassava in Asia: Expanding the Competitive Edge in Diversified Markets) presented a summary of the report, which had been distributed beforehand to invited participants. The presentation focused on regional trends and issues in the context of the goals of the Global Strategy (food security, poverty alleviation, equity and environmental protection). The main themes of the review were: trends in production, trade and utilization; and constraints and opportunities for system improvement. Alternative options for identifying priorities and defining strategies were noted. These different possible interventions became the basis for project planning within working groups that met later in the meeting: market development; process and product development; improved production systems, institutional support; integrating the system; and information management and communications technology.

The discussion of the paper focused on the economic aspects of cassava production and trade, and especially the increasing trend toward use of cassava as a raw product for starch production. The industry is very dynamic, with increasing international investment. These factories will be strongly driven to keep production costs low in a highly competitive environment. Nonetheless, there is not a universal trend toward large factories. In Indonesia, small-scale factories produce krupuk; in Viet Nam, small factories sell to larger factories for further quality improvement and modification.

3.4 Draft Global Cassava Development Strategy

Dr. Truman Phillips presented the draft strategy prepared by himself and Dr. Don Plucknett. The key message of this paper is that, for cassava to be effective as a basis for driving development, it must be part of a market demand-driven approach. The paper develops a vision for cassava that states: Cassava can spur rural industrial development and raise incomes for producers, processors and traders. Cassava can also contribute to the food security status of its producing and consuming households. The reason for developing a global cassava strategy is the belief that it will contribute to the economic wellbeing of numerous economically disadvantaged individuals in the world. A successful strategy will require catalysts and champions. Catalysts identify marketing opportunities and bring these to the attention of the stakeholders. The champions provide the research and development, infrastructure and investment, and changes in policies necessary to transform the opportunity into a reality.

3.5 Product definition and market identification

Dr. Philips described various product options for the future: fresh roots and leaves, home or village processing, starch, flour, and animal feed. Each of these was analyzed in terms of growth source (innovation, competition, or concentration), potential, and challenges. As a sort of comparison of the potential among countries, three indicators were used for each country: urban growth rate, 10% replacement of wheat imports with cassava flour, and 10% maize replacement in animal feeds. In this rough analysis, six areas are highlighted for growth potential in domestic markets: urban markets in Indonesia and the Philippines; wheat flour substitution in Myanmar and Viet Nam; and animal feed in China and Malaysia.

3.6 Environmental assessment of commercial cassava processing

Dr. John Wood, NRI, described research in India to reduce pollution and optimize the recovery of useful by-products from starch processing. The principal technology described was a hydrocyclone, which improves the efficiency of starch extraction compared to traditional methods. Starch discharged in wastewater is reduced from 350 kg/ton of extracted starch to 135 kg, with less water used. Other potential points of intervention in the system were described, as means of either reducing the waste produced, or of recycling waste products in economically viable ways. For example solid starch factory wastes are dried and added to cassava pellets.

3.7 Environmental assessment of cassava production practices and Nippon Foundation project on sustainable cassava production

Dr. Reinhardt Howeler, soil scientist and regional coordinator for CIAT in Asia, presented first an over-view of production practices in Asia, and how they may affect natural resources, and secondly a description of research results from a specific research project to reduce soil erosion in cassava-based systems. Soil nutrient depletion and soil erosion are the main environmental concerns in cassava cultivation. Since use of fertilizers and agrochemicals is only at low levels, their impact on the environment are currently not a major concern. This could change in the future.

Soil erosion is especially a concern in cassava because of wide plant spacing and the slow development of a canopy cover. Many technologies are available for reducing erosion, but the main challenge is to identify those that give farmers an economic incentive for adoption. Farmer participatory techniques are a basic part of this project, in order to maximize eventual adoption.

3.8 CIRAD root crop processing and marketing project in Viet Nam and China

Dr. Guy Henry described a project proposal developed jointly between CIRAD and national programs in Viet Nam and China. The project's purpose is to link farmers to growth markets through participatory technology development of root and tuber production, processing and market aspects, in an integrated user-perspective approach. Markets in China and Viet Nam are among the most dynamic anywhere in Asia, and the appropriate linkage of producers to these markets can make a large contribution to development through income generation for farmers.

4. WORKING GROUPS

4.1 Working group organization and tasks

Participants organized into two working group sessions (Days 2 and 3 of the consultation). Both sessions were organized by country.12 The first working group session concentrated on reviewing and reacting to issues raised in country reports, the regional review, and the global strategy paper.

12 Initially it was planned to organize the second working group session according to themes. However, participants felt that a session on project development on a country basis was a higher priority.

The following tasks were assigned to Session 1:

  1. Provide corrections, additions or other comments regarding country reports, the regional review and the draft global cassava strategy;

  2. Correct and complete a table prepared by Dr. Howeler, summarizing characteristics of cassava production and utilization in Asian countries;

  3. Review and discuss the vision for cassava as defined by the draft strategy (as stated in Section 3.4);

  4. Rank the relative importance of different roles or contributions that cassava makes for each country, or for sub-regions within countries, vis-à-vis food security, equity, income generation, and environmental impact;

  5. Identify and evaluate new cassava opportunities, describe what is required for development of the opportunity, identify limitations or barriers, and identify catalysts and champions for each market opportunity;

  6. Rank the importance of various components within a cassava development strategy, for each country.

The second working group session (Day 3) focused on preliminary project planning, based on the analyses from the first session. Each working group chose a priority area around which to develop a draft proposal, such as might be later refined and submitted to IFAD or another donor.

4.2 Summary of working group discussion: Session 1

4.2.1 Feedback on country reports, regional review and draft global strategy

There were few direct comments on improvements to be made to reports as presented. The Thai representatives suggested eliminating the second sentence of the draft global strategy vision statement, such that the statement would read: Cassava can spur rural industrial development and raise incomes for producers, processors and traders.

The comprehensive, corrected table on characteristics of cassava production and utilization in Asia will be incorporated into the final version of the regional review. One participant offered to send comments at a later date on the regional review document.

4.2.2 Contribution of cassava to development goals

Table 1 summarizes each country's perceptions of the relative importance of cassava in contributing to development goals. There are some clear distinctions among countries, but also some common threads. Cassava's role in income generation is highlighted in all countries, although less important in a few sub-regions within countries. In contrast, cassava's role in food security is limited to a few specific areas, most importantly, Kerala (India), Java, the Philippines, and North Viet Nam. Equity is most important in Indonesia, where cassava is a basic staple in some areas. Environmental issues are noted broadly across the region; however, the nature of these issues varies. Two issues were noted. Problems of soil erosion and loss of soil fertility are wide-spread, given cassava's cultivation generally on sloping soils. Pollution from processing, especially for starch extraction, is somewhat of a constraint everywhere, and especially in Guangxi province of China, in Tamil Nadu state of India, and on Sumatra Island of Indonesia.

4.23 Identification of opportunities

The various market opportunities, by country, are noted in Table 2. Since in this exercise, these were not ranked in terms of importance, most countries noted most of the categories of opportunities. The animal feed market is seen as an opportunity in every country - this in spite of the sharply declining export opportunities to Europe. The optimism with regard to this market is based mainly on internal growth rates of consumption of meat and other animal products, and lack of internal capacity to produce sufficient grains. Starch and the wide range of starch products are growth markets throughout most of the region. The attention given to snack and ethnic foods is a recognition of the potential for niche markets where cassava or cassava starch has special advantages because of its starch or culinary characteristics. Flour substitution in bakery and other products is a good potential market in the Philippines and Indonesia, both of which import all their wheat. China and the Philippines noted the potential for producing alcohol from cassava (beverage industry).

4.2.4 Activities and conditions for realizing development opportunities.

Table 3 lists the assumptions or preconditions, and activities or products needed, in order to achieve successful development based on different cassava products. This table does not identify these with specific countries, but rather synthesizes regional commonalities. Working groups were more easily able to identify activities or products needed, than to identify the assumptions or pre-conditions. The integration among various public and private sector partners is noted. Appropriate varieties figure heavily in the needed technology, both to bring value-added traits to the marketplace (e.g., high starch), and to reduce production costs to make cassava competitive with alternative carbohydrate sources. Improved processing technologies are needed to create new, high quality products that can compete in increasingly more demanding markets. Several products involve processes that have potential to cause environmental pollution, and low-cost by-product recycling and pollution control technology are needed.

Given the multilingual composition of the working group participants, with few people having English as a first language, the concept of catalysts and champions was somewhat difficult to transmit fully. While the exercise was intended to separately identify catalysts and champions for each market opportunity, this was not possible. Annex 2 lists the details of each country's analysis of market opportunities. In Table 3, the identified catalysts and champions are combined for each market. On the whole, participants identified mainly the champions, and few catalysts. These include a range of public and private institutions and NGOs. Research institutes figure heavily as champions across all the markets, as well as industries specific to- each market.

4.2.5. Ranking of components of strategies for meeting development goals.

Working groups for each country went through a two-part exercise to prioritize various components in a cassava-based development strategy: first, a rating from 1–5 (1=not important; 5=highest priority); and secondly, a relative ranking of all components from highest to lowest. Table 4 summarizes the latter of these two approaches. Process and product development, and market development, stand out as clear high priority areas across the region (except China and India, where there are broad markets for cassava products, and Thailand, where process and product development is well advanced, and capacity for continued progress is in place. Varietal development, long a priority in the region, retains a high priority except in India and Malaysia.

It should be noted that nearly all the components were given an absolute rating of important or very important, so even those that are ranked last in the relative ranking are not considered unimportant in the region

4.3 Summary of working group discussion: Session 2

The working documents for project development are appended as Annex 3. The following summarizes the goals and outputs of the projects proposed by each country.

China (Guangxi Province)
Title:Controlling pollution from small and medium-scale cassava starch factories in southern China.
Goal:Improved water quality for aquatic life and human uses
Outputs:1. Modified technology from factories using other starch sources
2. Cleaner water for environmental safety and recycling
3. Demonstration model for other regions
India
Title:Integrated production, processing and marketing system for cassava
Goal:1. Improving income and food security
2. Protecting the environment
3. generating rural employment
Outputs:1. Local utilization of production
2. Stabilization of price and market opportunity
3. Employment generation
4. Improved income for marginal farmers
5. Improved food security
6. Protection of the environment
Indonesia
Title:Cassava flour utilization in small-scale industries
Goals:1. Increasing demand for cassava flour
2. Increasing food security through food diversification
Outputs:1. Food products development (wheat flour substitution; new products; improved traditional products; characterization
2. Market development (feasibility studies -economic and consumer preference)
3. Small-scale business development (flour mill factories; equipment development)
Malaysia
Title:Processing and drying of cassava for animal feed
Goal:Substitution of imported maize with locally produced cassava
Outputs:1. Practical and efficient system to process and dry cassava, and incorporate into animal feed
2. A competitive form of cassava-based feed as a partial substitute of maize
Philippines
Title:Development of high-value products from cassava
Goal:Expanding the cassava industry in the Philippines
Outputs:1. High quality starch produced at the village level
2. Sustainable alcohol production
3. Utilization of cassava for HFGS
4. Integrated system involving production, feed mills and livestock
Thailand
Title:Market development for cassava products
Goal:To encourage the demand of domestic and foreign consumption of cassava
Outputs:1. New flour and starch-based products for domestic use in human consumption
2. Modified starches for industrial use
3. Products competitive in the animal feed industry
Viet Nam
Title:Integrating cassava production based on improvement of small-scale cassava processing in the south of Viet Nam
Goal:Generate additional income for cassava growers
Output:1. Improved on-farm processing systems
2. Rural development through increased farm income
3. Linkages developed among producers, processors, traders and consumers to improve system efficiency and product quality.

5. SUMMARY AND CONCLUSIONS

A broad range of stakeholders from the Asian cassava sector affirmed the importance of cassava in the region as a vehicle for development, through income generation and for achieving greater equity among income groups. In specific regions it remains a food security crop, though its importance as such is declining. Environmental impact is a concern both from the production (soil conservation; fertility maintenance) and processing (starch factory wastes) sides.

Since income generation is the main development goal, the identification of market opportunities is a central element of defining future potential. Across the region, the principal current and future market opportunities are seen as: native and modified starch, value-added processes to derive a wide range of domestic and industrial products from starch, snack and ethnic foods (speciality and niche markets), flour, and animal feed.

Successful development of these markets depends on a combination of improved production technology that reduces unit production costs and has low environmental impact, improved efficiencies in processing, and market development. This will necessarily involve a wide range of players, including public R&D institutions, universities, and the private sector.

In general the public sector has covered development of production technology, and the private sector the processing technology and marketing. New varieties with high yield and high starch are having substantial impact in Thailand, Indonesia, Viet Nam and China. Soil erosion control methods are being developed with a strong component of farmer participation. Methods for reducing and recycling wastes from starch factories are gradually being implemented

Given the low levels of funding traditionally dedicated to cassava research, and minimal involvement of the private sector, maximum efficiency in use of resources is needed. Regional representatives ranked process and product development, market development, and varietal development as highest priorities for meeting development goals.

Stakeholders noted that as agricultural production and trade become increasingly a part of a global free market system, regional coordination to achieve greater efficiency and competitiveness is ever more important. The International Center for Tropical Agriculture (CIAT) has spearheaded network coordination for almost two decades. Obtaining a combination of public and private support for a continuation of this coordination is a clear future priority.

Table 1. Relative importance of cassava in contributing to development goals.

Country/RegionFood securityEquityIncome generationEnvironmental impactImport substitution/industry development13
China    ***
 Guangxi--********
 Guangdong-- ********
 Hainan--********
 Yunnan--****** 
India     
 Kerala*****-- **
 Tamil Nadu-********-
 Andhra Pradesh-********-
 Central & NE----**
Indonesia     
 Java**********->
 S. Sumatra-************
 Other Islands-********-
Malaysia-********
Philippines     
 Luzon**--- 
 Visayas******** 
 Mindanao********* 
Thailand-****** 
Viet Nam     
 North******* 
 South****** 

13 this category was added by some working groups, but not considered by others.

Table 2. Identification of market opportunities.

ProductChinaIndiaIndonesiaMalaysiaPhilippinesThailandViet Nam
Native starch    
Modified starch 
Starch derivatives  
Snack/ethnic foods  
Flour     
Animal feed
Alcohol     

Table 3. Summary of research activities or conditions required to realize development opportunities.

ProductAssumptions or preconditionsActivities or products neededCatalysts and champions
StarchIntegration among actors: local government plan: access to landVarieties with short cycle, high DM, high yield; improved processing technology; new market development: market analysis: joint ventures: on-farm starch extraction technologiesNational R&T research programs: starch factories: private sector investors: universities
Starch derivativesInstitutional support: private sectorTechnology development and adaptation: pollution reduction; new product developmentFood industry; engineering institutes; private sector investors; drink/canned food manufactures
Snack/ethnic foods market development; product development; organization of cooperatives for marketingResearch institutes; NGOs; cooperatives; private industry
FlourInstitutional and industry support; government supportCoordination among producers, processor and usersResearch institutes; NGOs; industry
Animal feedDevelopment of animal industry; lower cost of protein sourcesEconomic feasibility studies; technology Animal producers; cassava traders; for waste recycling; use of leaves in silage; market development; high yield and high DM varieties; low-cost, efficient drying technologyAnimal producers, cassava traders, extensionists; small scale processors; feed industry; research institutes; universities
Alcohol Reduced production costs; high yielding/high DM varieties; pollution reduction technologyBeverage industry; research institutes

Table 4. Relative ranking, by country, of components of cassava-based strategies for meeting development goals.

Strategy componentChinaIndiaIndonesiaMalaysiaPhilippinesThailandViet NamOverall rank
Market development97111142
Process and product development223221021
Improved production systems48254364
Environmental resources issues3109108657
Crop management636674 6
Varietal development19473233
Institutional support81178611 9
Integrating the system711035715
Farmer participatory research1045119877
Technology transfer558911587
Information management116114109 9

Annex. 1 List of participants, Asian Cassava Stakeholders Consultation Meeting, Bangkok, Thailand, Nov 23-25,1998

Brazil 
Dr. Guy HenryCentre de Cooperation Internationale en Recherche Agronomique pour le Développement (CIRAD), Campinas, Sao Paulo
Canada 
Dr. Truman PhillipsdTp Studies, Guelph, Ontario
China 
Mr. Jin Shu RenGuangxi Nanning Cassava Technical Development Center, Nanning, Guangxi
Mr. Tian YinongGuangxi Subtropical Crops Research Institute, Nanning, Guangxi
Mr. Huang ReChinese Academy Tropical Agric. Sciences, Danzhou, Hainan
Colombia 
Dr. Chris WheatleyCentro Intemacional de Agriculture Tropical (CIAT), Cali
Dr. Clair HersheyCentro Intemacional de Agriculture Tropical (CIAT), Call
England 
Dr. John WoodNatural Resources Institute (NRI)
India 
Dr. S. EdisonCentral Tuber Crops Research Institute, Trivandrum, Kerala
Dr. C. BalagopalanCentral Tuber Crops Research Institute, Trivandrum, Kerala
Indonesia 
Dr. Suyarnto H.Research Inst. For Legumes and Tuber Crops, Malang, E. Java
Mr. Soemarjo PoespodarsonoBrawijaya University, Malang, E. Java
Mr. Hardono NugrohoP.T. Great Pineapple Company, Umas Jaya Farm, Lampung, Sumatra
Mr. FauzanP.T. Great Pineapple Company, Umas Jaya Farm, Lampung, Sumatra
Malaysia 
Dr. Tan Swee LianMalaysia Agric. Research and Development Inst., Kuala Lumpur
Philippines 
Mr. Fernando EvangelioPhilippine Root Crops Research and Training Center, Baybay, Leyte
Thailand 
Dr. Chareinsuk Rojanaridpiched
Kasetsart University, Bangkok
Dr. Klanarong SrirothDept. Biotechnology, Kasetsart Univ., Bangkok
Dr. Sulat SriwatanapongseBIOTEC, National Center For Genetic Engineering and Biotechnology, Bangkok
Dr. Omsab NopamortibodiDepartment of Agriculture, Bangkok
Mr. Charn TirapornDepartment of Agriculture, Bangkok
Mr. Preecha SuriyaphanField Crops Research Inst., DOA, Bangkok
Mr. Watana WatananontaRayong Field Crops Research Center, Rayong
Ms. Wilawan VongkasemDepartment Agric. Extension, Bangkok
Mr. Klaivan KlakhaengDepartment Agric. Extension, Bangkok
Mr.Somporn PhongvuliprapanThai Tapioca Development Institute, Huay Pong
Ms. Vanna ChaengsrisookThai Tapioca Development Institute, Bangkok
Dr. Christopher OatesCentro Intemacional de la Papa (CIP), Bangkok
Dr. Reinhardt HowelerCentro Intemacional de Agric. Tropical (CIAT), Bangkok
Viet Nam 
Dr. Pham Van BienInstitute of Agric. Sciences of South Viet Nam (IAS), Ho Chi Minh
Dr. Hoang KimInstitute of Agnc. Sciences of South Viet Nam (TAS), Ho Chi Minh
Mr. Nguyen Duy DuePostharvest Technology Institute, Ho Chi Minh

Annex 2. Identification and evaluation of new cassava opportunities.

Thailand

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
Modified starchTechnology- MarketCatalyst:
- Competition among products- Government agency
(Ministry of Science & Technology)
Champion:
- Starch factory
Domestic animal feedLower price of protein sources-Competition with maizeCatalyst:
- Ministry of Science & Technology
- TDDI
Champion:
- Feed mills

Viet Nam

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
High quality cassava starch- Market studies- Appropriate technology- CIAT, IFAD, ACIAR VEDAN
- Local government plan- Investment capital- IAS, PHTI
Modified cassava starchMarket Studies- Technical specification-IFAD, CIAT
- IAS, PHTI Universities
- Market information- Local/international enterprises
Snack foodsMarkets studies- Appropriate technology- IFAD, CIAT, ICIAR
- Investment capital- IAS, PHTI and Universities
- Product descriptions 
Animal feed (pellet form)- Livestock development- Appropriate technology- IFAD, CIAT, NRI, AUS AID
- Adding value
- Market studies- Investment capital- IAS, PHTI, DOA, local enterprises

China

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
Starch- High yield, high DM- Shortage of raw material- AGR&T dev. STRCI, GSA
- Short cycle vars.- Small scale- TDI
- Improved processing technology-Poor equipment
Better integration of actors- Technology transfer
- Short harvesting period
Animal feed- Processing waste valorization- Low protein- Animal producer traders
- Incorporation of leaves silage- Tech. adapt. & transfer- Extensionist
Alcohol- Reduction of costs- Costs- Private sector (beverage & other industries)
- Reduction pollution- Pollution
Organic acids- Technology development & adaptation-Technology- Private sector (food industry)
- Environmental reduction- Environment
Food additives- Institutional support- Lack of experience & know-how- Private industry
- Inst. of chem. engineering

India

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
- Food: Diversified domestic convenience food- On farm multi-purpose starch extraction units for cassava and sweet potato- Lack of awareness 
- PublicityCatalysts:
- Feed on farm utilization- Financing- Government organizations
- Modified starches, converted starches- NGO's
- Fermented products- Organize cooperative marketing in semi-urban areas - Village coops. Women Coops.
- Instant convenient industrial food products-Societies
- Chemicals- Complete involvement of private sector- Lack of confidence in product development and marketingChampions:
- Biodegradable pesticides- Farmers
-Small scale processors and industrialists

Indonesia

Market opportunityWhat is required for the development of the opportunity?What the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
Cassava flour for food industry-Coordination among producers, processors users.-Flour quality 
-Government support-Consumer acceptance
Starch and modified starch-Market studies-Investment costPrivate sector:
-Joint ventures-Technology-involve producers
-Find market
-Provide Funds
Animal feed-Feasibility study for competitive production cost corn.-Price of corn-Feed industry (role: as above)
Snack foods-Product development-Market development-Research Institutes, NGO's, cooperatives, private companies.

Philippines

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
Flour/grater-ethnic food internal/external)Full support from all players (government, academia, industry NGO's)-Less supportScu's/Res. Institute NGO's/industry/Farm's coops/org.
-Lack of policy
-Lack of technology
-Inefficient production systems
Starch (modified)Technology (variety, Processing, market)-FundsIndustry/SCU, Res. Inst. NGO's/farmer's crops
-Inefficient production systems
Animal feedVariety, technology-Insufficient supply of raw materialsPig/livestock raisers/Res. Institute, SCU's
-Lack of financial support
Alcohol HFCSVariety, technology-Production constraintsIndustry/SCU's, Research Institutes
-Waste management-
-Cost

Malaysia

Market opportunityWhat is required for the development of the opportunity?What are the major limitation or barriers to the expansionWho are the Catalysts and Champions? What is their role?
Starch- Access to suitable land- Competition from other cropsCatalyst: MARDI (make aware the local demand for starch)
-Native- Availability of native starch- Limited starch production at presentChampions: existing starch processors, private sector investors (to provide capital)
-Modified
Snack food-Private sector investment-Upgrading of packingCatalyst: MARDI (show potential)
-Technologies for innovative new products-Competition from snacks made from white potato, corn and wheat flourChampions: existing starch processors, private sector investors (to provide capital)
Livestock feed-Cheap but efficient drying technology --Competition from cheap imported comCatalyst: Ministry of Agric. (to substitute high corn imports)
Cheaper cassava price-Low protein content of cassavaChampions: private sector investors, feed millers (to provide capital)
Sweetener-Increased starch production-Low yield and price for sugarCatalysts: Ministry of Agric. (to substitute high sugar imports)
-Lower production costs-Insufficient supply of starchChampion: private sector investors, drink/canned food manufacturers (to use product)

Annex 3. Working documents on project development.

COUNTRY: CHINA

TITLE: CONTROLLING POLLUTION FROM SMALL AND MEDIUM - SCALE CASSAVA STARCH FACTORIES IN SOUTHERN CHINA

GOAL: Improved water quality for aquatic life and human uses.

OBJECTIVES:

-   Adopt economical and practical technologies for reducing COD and BOD to national standards.

-    Recovery of economically useful products from effluent.

-   Reduce cyanogens to meet national standards.

OUTPUTS:

-   A successful modified technology from factories using other starch sources.

-   Cleaner water for environmental safety and recycling.

-   Demonstration for others.

OBJECTIVES:

-   Identify 2 typical starch factories with capacity of 35 and 100 t/day, having good management and good relations with the community and other factories. Factory owners should recognize an urgent need for reducing pollution potential.

-   Identification and selection of sources of biological and engineering components.

-   Identify monitoring agency.

-   Design and implement system.

-   Measure output.

COLLABORATORS:

CTDC, EPRI, GXSA, KAPI

AREAS OF INTEREST:

Guangxi, Hainan, Guandong, Yunnan

FUNDING:

1.2 million $US

COUNTRY: INDIA

TITLE: INTEGRATED PRODUCTION, PROCESSING AND MARKETING SYSTEM FOR CASSAVA.

GOALS:

-   Improving food security and income.

-   Protection of environment.

-   Rural employment.

KEY OBJECTIVES:

-   Testing and popularization of cassava according to regional requirements for food security and industrial development.

-   Elimination of Cassava Mosaic Disease through management practices.

-   Improving storability and multiplication of planting materials.

-   Development of on & off farm food, feed and industrial products.

-   Protection of environment.

-   Organization of village level marketing coops.

PRINCIPAL OUTPUTS:

-   In situ utilization of produce.

-    Stabilization of price and market.

-   Employment generation.

-   Increase income marginal farmer.

-   Ensure food security.

-   Protection of environment beneficiaries.

BENEFICIARIES:

-   Marginal farmers

-   Villagers

-   Processors

SOURCE OF FUNDS EXPECTED:

-   Government of India

-   IFAD

-   CIRAD

-   CIAT

COUNTRY: PHILIPPINES

TITLE: DEVELOPMENT OF HIGH VALUE PRODUCTS FROM CASSAVA

GOAL: Expanding the cassava industry in the Philippines

OBJECTIVES:

-   To increase farmers' incomes from cassava.

-   To increase the utilization of cassava.

OUTPUTS:

-   High quality starch production at the village level. Sustainable alcohol production.

-   Utilization of cassava for HFGS.

-   Integrated cassava production, feedmill and livestock system.

ACTIVITIES:

-   Identification of players and their roles.

-   Participatory approach (GAIN).

-   Capability building/institutional building. Multi-disciplinary and integrated.

AREA OF INTEREST:

-   Food security, equity, poverty alleviation.

BENEFICIARIES:

-   Small farming households, crops, processors, consumers.

INTERACTION:

-   Project (private companies: LTDI, NGO's).

-   Cooperating agencies (coops, PO's).

SOURCES OF FUNDS:

-   GOP

-   LTDI

-   LGUs

-   Processors

COUNTRY: INDONESIA

TITLE: CASSAVA FLOUR UTILIZATION PROJECT (SMALL SCALE)

COMPONENTS:

-   Varietal & crop production improvement

-   Processing technology development.

-   Equipment technology development.

GOAL:

-   Increasing demand of cassava flour utilization.

-   Increasing food security through food diversification.

OBJECTIVES:

-   Improving income of small farmers and involved people.

-   Improving cassava flour production and utilization Systems.

OUTPUTS:

-   Food products development

-   Specific products.

-   Food characterization.

-   Feasibility/economic study.

-   Small scale business development.

-   Equipment production.

-   Wheat flour substitution.

-   Improved traditional processing.

-   Market development for new cassava products.

-   Consumer preference information.

-   Flour mill factory.

ACTVITIES:

-   Varietal & crop production improvement.

-   Processing technology development.

-   Small equipment development for flour production.

-   Training & workshop for farmers and processors.

COLLABORATORS:

-   Farmers (cooperatives).

-   Extensionists.

-   Women's groups.

-   Local bakeries/food industries.

-   NGO's. Equipment/machinery specialist.

-   International agencies: (CIAT, IFAD, ADB, etc.).

AREAS OF INTEREST:

-   Production.

-   Marketing.

-   Utilization.

-   Small-scale role.

INTERNATIONAL WITH OTHER PROJECTS:

-   Food diversification project (governmental)

-   Poverty alleviation project (governmental).

-   Cassava improvement project

-   Soil/crop management project.

WITH REGIONAL NETWORK:

-   Asian Cassava Network. - CBN.

SUGGESTION FOR FINANCES:

-   IFAD

-   Government programs.

-   ADB/World Bank.

-   Private sectors (Assoc. of tapioca producers).

DURATION:

3-5 years

COUNTRY: MALAYSIA

TITLE: PROCESSING AND DRYING OF CASSAVA FOR ANIMAL FEED

GOAL: Substitution of imported grain corn with locally produced cassava

OBJECTIVES:

-   Cost-efficient technology for processing and drying cassava for animal feed to be developed.

-   To produce dried cassava for animal feed at < 85% price of imported corn.

OUTPUTS:

-   Practical and efficient System to process and dry cassava into feed.

-   A competitive form of cassava-based feed as a partial substitute of corn.

ACTIVITIES: Year 1

-   Literature review on topics

-   Review/evaluation of available machinery for processing & drying

-   Selection of components of system

Year 2

-   Formulation of system

-   Available machines/equipment. Fabrication.

-   Testing of system.

-   Modification/fine tuning of system.

-   Preliminary costings.

Year 3

-   Upscaled testing.

-   Cost/financial analyses.

COLLABORATORS:

-   Postharvest & processing scientists, agricultural engineers - MARDI.

-   AIT; CIAT?

-   Private processing/drying equip/manufacturer.

INTERESTED PARTIES:

-   Cassava producers.

-   Feed millers.

INTERACTIONS:

-   Similar system will be applicable to sweet potato.

-   In line with global cassava strategy?

-   Import substitution.

-   Competition.

FINANCING:

-   Malaysian govt.

-   Private feed millers?

-   International donor?

COUNTRY: THAILAND

TITLE: TO DEVELOP MARKETS FOR CASSAVA PRODUCTS

GOAL: To encourage the demand of domestic and foreign consumption of cassava

OBJECTIVES:

-   To create the diversification of suitable products for domestic uses.

-   To create markets for cassava.

-   To expand the utilization of cassava.

ACTIVITIES:

-   Advertise the new products, for example with new recipes, food fairs, etc.

-   Generate a number of suitable products, e.g. feeds for swine, cattle, fish, poultry,. etc.

-   Develop modified starch to serve heavy industries, e.g. solvent for plastics, formic acid, lactic acid & other use in motor industry.

-   Develop flour and starch to suit human consumption e.g. snacks, baby foods.

MANDATE INSTITUTIONS:

-   Kasetsart University

-    DOA

-   DOAE

-   Min. of commerce

-   Private sectors and TTDI

AREA:

-   Domestic markets

-   Foreign markets

INTERACTION:

-   Government agencies and NGO's activities include the new proposed project, e.g. Khong-Shee-Moon rivers project.

COUNTRY: VIET NAM

TITLE: INTEGRATING CASSAVA PRODUCTION BASED ON IMPROVEMENT OF SMALL SCALE PROCESSING IN THE SOUTH OF VIET NAM.

DURATION:

3 years

LOCATION:

-   Cassava-growing areas (rural, far from big/concentrated processing plants).

PURPOSES:

-   On-farm processing - value added.

-   Farmer income generation.

-   Socio-economic development in rural areas.

-   Linkages between: Farmers, processors, traders, end-users, preharvest, postharvest, marketing system

BENEFICIARIES:

-   Cassava farmers (new varieties, better prices)

-   Cassava processors (reduced cost of processing, higher quality; raw material for large plants; new products)

-   Agro - Industry development in rural areas, (labour, gender, on-farm animal feeding)

-   National R&D capacity improvement.

INSTITUTION COMPONENTS:

-   IAS, PHTI, Viet Nam cassava network

-   CIAT, IFAD, ACIAR


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