4    Extension, Economic and Management Issues

Extension Approach

Introducing innovations such as top quality cassava flour production will most probably be doomed to failure if the principle of participation is neglected in the extension approach. It is strongly recommended that the needs of all involved be assessed jointly with them, and that the target group be enabled to design appropriate solutions for specific problems within their capacities. To facilitate acceptance, the users should be assisted during a trial period.

To ensure sustainability, support should not be limited to technical and financial assistance, but should focus on the management skills required to run the business profitably. The extension workers should closely follow-up all steps and organise competent support where needed. NGOs often have a comparative advantage in implementing this approach.

Funding of a Cassava Flour Production Unit

Setting up a unit for the production of high quality cassava flour requires substantial funds, depending on the size and technical equipment of the unit. Machinery such as medium-scale mills may cost several hundred US dollars per unit. As a first step it is necessary to draw-up a business plan indicating the economic parameters of the enterprise such as costs and anticipated benefit. Details on prices for equipment, raw materials, manpower, transportation and market prices for the finished cassava flour etc. must be ascertained on a case-by-case basis, according to local circumstances. Prices vary widely between countries, hence detailed costs cannot be specified here.

The business plan provides some indication of the profitability of the future enterprise, and the funds necessary to implement it. In most cases the start-up capital is not readily available to the target group, which means that a loan is required. Self-help groups are quite likely to obtain loans from NGOs and development projects, provided that they present sound business ideas. The extension worker/NGO's should advise and train the beneficiaries in loan application procedures.

Operating a Cassava Flour Production Unit

By creating a strong feeling of ownership, self-help initiatives are the key to introducing successful innovations sustainably. A group is better able to overcome certain problems, such as insufficient finance. Some of the group members should be trained or enabled to manage the commercial affairs, and put in a position to take decisions without having to consult the entire group every time.

In order to run a cassava flour production unit successfully, it is necessary to target specific markets. One potential market is the food industry that uses flour for pastry, bread, sausages and other products. Certain consumers (e.g. urban dwellers and especially women) have busy time schedules, and prefer food that is easy and quick to prepare.

It is important for the profitability of the enterprise to organise the cassava production process properly, and optimise its individual steps on the basis of experience. Keep all equipment and machinery permanently in good repair in order to avoid high cost through major damage and prolonged downtime of the facility. Monitor the quality of the product continuously, and keep records. These measures help to maintain a uniform quality level, build customer confidence and fetch good prices.

Framework Conditions

The profitability of the innovation presented in this booklet will also depend on the wider economic framework, which needs to be put in place by the policymakers. For high quality cassava flour production to be successful, the organisation of a well-functioning marketing system is a top priority. If possible, policymakers should introduce, promote and monitor food quality standards.

At the same time, the private sector (wholesalers, retailers and consumers) should be made aware of the benefits (i.e. health and taste) of good quality food through various media such as newspapers, TV and radio.

Research and development institutions should be approached with a view to harmonising cassava processing more closely with local conditions and corporate demand, and assisting in the definition of quality standards.