BUSINESS PROPOSAL ON CASSAVA FARMING

AND GARRI PRODUCTION

Malal Agricultural Project

Private & Confidential

abubakarrsesay@yahoo.com
 MALAL AGRICULTURAL PROJECT PROFILE

MALAL AGRICULTURAL PROJECT BUSINESS PROPOSAL ON CASSAVA FARMING AND

GARRI PRODUCTION

EXECUTIVE SUMMARY

Malal Agricultural Project (MAP) is a privately owned business venture in agriculture

value added cassava production. The main objective of this project is to enhance
food security in cassava based farming systems in Sierra Leone. The project shall
install a Garri processing plant in the capacity of 20 tons of Garri and 6 tons of
cassava peel per day. The project will acquire further supply of its raw materials from
both the project’s farm cultivation and buying cassava as raw materials form farmers
nationwide. However, for ease of presentation, this profile analysis will be limited to
the project’s farm harvest. Commercialization of cassava and its diversification into
alternative farm enterprises such as animal feed will improve small farmers
livelihoods. This development objective will be achieved through understanding the
livelihood systems of the rural community, provide farmers with training in rural
enterprise development and marketing and linking farmers to readily available
market for cassava which will enhance enterprise profitability and thus, farm income
will be increased and sustained. This project will engage over 200 community women
and youths at above 30,000 labour hours per cultivation. To achieve this overall
objectives, we shall need the availability of further external financial resources that
will form the basis of the project’s input requirements. This financial investment
support instrument for agricultural development is welcome in any of its form;
including soft loan, subsidy, grant or partnership

Project Justification:

The Project Document involves 1,260 acres of farmland on a 50 years lease contract,
signed with the community at Malal Village in the Port Loko District. MAP will be
implementing specific objectives in order to achieve the most cost effective and
potentially sustainable way of implementing this project, considering the widespread
use of the local resources in terms of seedlings, land and labour for sustainable
development in agro- based industries. There are benefits in linking up with the
government through the ministry of agriculture as expert partner entity on field
experience and linkages with market outlets and other cassava-based organisations
in the country.

All being equal, the proposed cassava farming for garri and Dried High-Quality
Cassava Peel (DHQCP) production is highly profitable and economically viable. It is
going to create jobs for women and reduce youth unemployment. It is
environmentally friendly (converting cassava peel into animal feed), economically
viable and ensures continuous stream of income for cassava farmers throughout the
 MALAL AGRICULTURAL PROJECT PROFILE

country. Operating profits are $423,757.14 and $1,269,267.86 and closing bank
balances are $280,920.78 and $1,427,352.27 in the 1 st and 2nd years harvests. The
balance sheet depicted a healthy asset base and owner’s equity of $510,120.78 and
$1,615,752.27 respectively.
 MALAL AGRICULTURAL PROJECT PROFILE

Implementation:

The project will promote competitive, more profitable cassava production systems,
increased market access and value-added activities. This will be achieved by
disseminating market-oriented technologies and information to public and private
sector stakeholders to transform the crop into stable, consumer acceptable quality,
market-grade products which will enhance income generation, trade and food
security and create employment opportunities, hence contributing to improved
livelihoods to the people of Sierra Leone.

Project Manager: Will work under the technical guidance of the of the AGSF, Service
Chief and in close collaboration with the National Project Coordinator in the Ministry
of Agriculture, Fisheries and Food Security. S/he will be responsible for overall
coordination of project activities, and ensuring full integration of the Project in the
Ministry’s development programme.

Support staff: Will support the Project Manager to carry out specific tasks related to
the daily smooth running of the project’s activities. This group includes engineers,
farm assistants and hired labour.

Contractor-MAP: To implement planned activities that will contribute to fulfilment of

project objectives. The Contractor will carry out national awareness raising
programmes, trainings, and establish and strengthen linkages between farmer
groups and agribusiness service providers, including identification of private partners
who can invest in cassava value adding infrastructure.

PROJECT OVERVIEW

Unprocessed cassava is highly perishable shortly after harvest. Due to the very short
shelf life (2-3 days) of harvested cassava tubers, a lot of the cassava harvested every
year can get spoilt and never make it to the market. This problem is compounded by
the inadequate roads network, the country’s power infrastructure and thus the lack
of processing industries. Most of the cassava produced in Sierra Leone is consumed
locally. However, by adding value to the cassava crop and processing it into a ready-
to-eat staple like garri, entrepreneurs can earn a very healthy profit on the open
retail market. It is worthy to note that, as humans, animals, industries and biofuels
continuously compete for the valuable cassava crop, the prevailing local market
prices will continue to increase. Of all the forms of cassava that can generate income,
garri is the cheapest and easiest way for entrepreneurs to enter and exploit the
processed cassava market. Garri production is a low-cost and largely traditional
process and can be done on a small scale.

Garri is ranked next to rice as one of the staple Sierra Leonen diets because not only
is it relatively cheap but it is the fastest way to make money in the agro processing
 MALAL AGRICULTURAL PROJECT PROFILE

industry. The recent economic downturn in the country has seen more households
substituting rice for garri. Also, another factor in favor of the garri processing
business is the growth in the population which has pushed the demand for garri and
has also caused more garri processing businesses to crop up in the competition for
growing demand.

Cassava peels are perishable and are mostly disposed of by burning or allowing them
to rot in heaps, causing pollution. On the other hand, several researchers have
confirmed the suitability of cassava peel for feeding livestock and the potential of
Dried High Quality Cassava Peels (DHQCP) as a good substitute for maize for all
classes of both ruminant and non-ruminant animal. High levels of Hydrogen Cyanide
in cassava peel based products are reduced substantially through the innovative
processing where grating, dewatering, fermenting and sun drying results in reduction
of hydrocyanic acid levels below the permissible levels of 100 parts per million.
Cereal production particularly maize in Sierra Leone is not sufficient to cater for the
growing demand of food, feed and industrial uses. Identifying alternate feed
resources as a substitute for maize would reduce feed costs and spare maize (to a
large extent) for food and industrial uses.

Description of Business

Many people are into cassava farming and garri production in southeast Sierra
Leone, yet the local and international demand is still high.  To thrive in the business
as a new entrant, creativity and innovativeness in farm management, quality control,
effective garri marketing and efficient delivery of dried high quality cassava peel is
necessary. The branding and packaging of the garri and DHQCP is expected to be
diligently explored and exploited. The inclusion in the finished product of DHQCP
production is of essence because it creates additional income with no additional cost.
This is waste conversion propensity and the economics of scale (in using the same
set of machine for both garri and DHQCP processing).

Cassava Variety: SLCAS 4 and 6

Vision and Mission Statement

Vision: To create an investment pool that will generate an independent and

continuous source of income for women and youth employment in the country.

Mission: To create sustainable supplementary employment opportunities in

agriculture and thereby engraving a landmark in the cassava business.

Business Objectives
 MALAL AGRICULTURAL PROJECT PROFILE

The objectives are to: (1). Create women and youth employment, and extend
improved production and on-farm value addition of cassava into gari, and cassava
peel into animal feed; (2) strengthen the capacity of farmers, farmers groups and
cooperatives to plan, implement, and manage value addition and improve market
access for cassava; and (3) identify, appraise and promote entry for cassava as high
value farm products in Sierra Leone.

Cassava Production, Processing and Planning Management Model

Under normal conditions, about 90% of all cassava cuttings planted sprout within 2
weeks of planting. Cuttings that do not sprout should be removed and disposed of
away from the cropping area in order to prevent the transmission of any disease that
may have caused the failure of the cuttings. New healthy cuttings should be acquired
and planted by the third week after the initial planting in order to maintain the
planned plant density. However, the new cuttings should not be planted in exactly
the same hole from which the failed cuttings were removed, to avoid the risk of
repetition of the original problem. Drought conditions could cause a much higher
failure rate. In such a situation, the project will wait until rains resume before
replacing failures.

 Weeding

Weeds can retard the growth and reduce the performance of cassava. A well-weeded
cassava farm can yield 30–40% more roots than a poorly weeded farm. Weed control
forms a significant part (30% – 50%) of the labour costs in cassava production. The
exact weeding frequency will depend on the type and severity of the local weed
problem, but in general: It is important to start weed control 3–4 weeks after
planting. This can be done at the same time as the replacement of the failed cuttings
(in week 3) in order to maximize the use of labour. Weeding should be repeated
between weeks 8 and 12, while the final weeding will be done between 20 and 24
weeks  after planting, depending on the rainfall. During dry season (October through
March) weeding may not be required but it is always recommended to destroy
weeds before the dry season and after the resumption of rains (April through
September). Once the canopy of the cassava and of the intercrops (if any) has closed
the shading will effectively control most weed growth. The overall total number of
weeding cycles depends, in part, on the resilience of the weeds, and this depends on
agro-ecological conditions. In this farm land, the majority of the weed is savannah
grassland. Weeding can be done manually (hoe and cutlass), mechanically (using a
tractor) or chemically (although there are no specifically prescribed herbicides for
cassava). However, mechanical weeding beyond the first 4 weeks after planting can
damage the roots. Therefore, manual or chemical weed control is preferred after this
period. We shall observe this first phase of this project to develop our knowledge on
in deciding which weeded material should be left on the plot or removed and
 MALAL AGRICULTURAL PROJECT PROFILE

discarded. Generally, small broad-leaved weeds can be left on the field because they
will die from the heat of the sun and become mulch. Bulky weeds, weeds with
rhizomes and weed species with the capacity to form roots from stem pieces tend to
re-sprout if cut and left on the soil surface, so we will uproot and dispose of these
types of weeds away from the field. Tall grasses should be uprooted and removed
from the field before they flower in order to prevent seed formation and
germination, which will further propagate the weed species.

 Production Processing Plan:

Mechanically processing cassava roots into Garri takes several stages. This
production process is hereby demonstrated in the Cassava Garri processing
machine description below:
The production of cassava garri comprises the machines such as cassava washing
machine, peeling machine, grating machine, dewatering machine, second crusher-
wet cake crushing machine, garri frying machine, garri milling machine and
packaging machine. Below is a brief description on the main steps of the cassava
garri production process.

1. Cassava washing machine: wash the fresh cassava roots in clean water to
remove mud, sand and other impurities. Note: The water source will be
checked regularly to ensure it is not dirty or contaminated.
2. Cassava peeling machine: wash the cassava roots to remove the surface
sand, silt, and peel the cassava roots to remove the outer brown skin and
partial inner thick cream layer, also avoid over damaging of raw materials.
Note: To completely remove the inner thick cream layer , it's necessary to use
manpower or soak the cassava tubers in water then remove it by handwork.
 MALAL AGRICULTURAL PROJECT PROFILE

Cassava Washing Machine - Cassava Peeling Machine -

Cassava Washer Cassava Peeler

3. Cassava grating machine: cassava roots or slices enter the grater and are
then grated into the cassava slurry between rotating nail roll and rotary drum
while the engine is running with the electricity as power. Note: The grating
drum and all food contact areas are made from stainless steel.
4. Cassava dewatering machine(hydraulic press dewater): load the bags
directly on to a hydraulic press. Under control of hydraulic station and electric
cabinet to lift and press the jack handle up and down until it becomes hard to
move. Repeat the process several times each day until no more water comes
out of the bag to produce a firm wet cake.
 MALAL AGRICULTURAL PROJECT PROFILE

Cassava Grating Machine - Cassava Dewatering Machine -

Cassava Grater Hydraulic Press


 5. Second crusher - wet cake crushing machine: After pressing, the de-
watered cassava slurry is a solid cake which has to be crushed into uniform
size granules obtain an homogenous product. Uniform particle size is
important because it makes for a more uniform drying of individual particles,
smaller particles taking less time and less energy in drying.
6. Cassava garri frying machine(cassava garri fryer): roasting be done
mechanically using an automated garri fryer made of stainless steel material
and with electricity, diesel, natural gas, firewood or charcoal as the heat
source. The finished product (Garri) is usually recognized from the color
change from white to cream (for non-palm oil fortified Garri) and crispy hand
feel of the grains/particles.
 MALAL AGRICULTURAL PROJECT PROFILE

Second Crusher - Garri Frying Machine -

Wet Cake Crushing Machine Garri Fryer

7. Garri grinding machine or garri milling machine: mill the dried coarse garri to
produce fine garri. Milling can be done using a roller mill machine.
8. Garri packaging machine: pack desired quantities into a woven polythene sack
with a plastic lining, seal or stitch the sack to keep the garri clean and fresh during
storage. Properly label the packages according to the standards of national
regulatory agencies.
 MALAL AGRICULTURAL PROJECT PROFILE

Garri Milling Machine Packaging Machine

Garri is usually classified by its particle size:

 Extra-fine: passes through 0.25 mm to 0.5 mm aperture sieve

 Fine: passes through 0.5 mm to 1 mm aperture sieve
 Coarse: passes through 1 mm to 1.25 mm aperture sieve
 Extra coarse: passes through 1.25 mm to 2.0 mm aperture sieve.

 Production Processing Plan of Dried High Quality Cassava Peel

An innovative processing technology for converting fresh peels into high quality
cassava peel (HQCP) mash for use as livestock feed has been developed in other
countries such as Ghana and Nigeria. The process is simple and can be carried out by
small-scale processors, to transform waste into a valuable feed resource, generate
new incomes, create employment, improve livelihoods, and clean up the
environment around cassava processing centres. The various steps followed in
processing peels into DHQCP are listed below:

 Sorting;
 Grating;
 Pressing;
 Sieving;
 Bagging

Sorting
 MALAL AGRICULTURAL PROJECT PROFILE

The quality of the finished product is as good as the quality of the raw material used,
so cassava peels that enter the process should be fresh (harvested the same day) and
free from contaminants. When processing is delayed beyond a day, the peels start to
ferment and become soggy/slippery and difficult to grate. Stumps, large-sized wood
tubers, and other foreign materials have to be sorted out and discarded before
grating the peels to avoid damage to the rasper.

 Grating

Grating has to be done three times because of the tough nature of peels. With each
grating, the particle size reduces gradually. The reduced particle size facilitates rapid
dewatering, drying, and easier handling.

Pressing

Pressing the grated peel requires a hydraulic jack, wooden planks, woven bags, and a
metal frame which holds loaded bags of freshly grated peels. Grated peels are
packed in small quantities of 8−10 kg and the bags are stacked in the metal frame.
Using planks and jacks, the grated peels are squeezed to rapidly get rid of as much
water as possible.

Approximately 50% of the weight of grated material is lost as the water is removed
during this process. The resulting cassava peel cake after dewatering has around
38−42% moisture and has a shelf life of 5−7 days. As is, cassava cake can be fed
directly to cattle, goats, sheep, and pigs.

Sieving

To process it further into dry mash, cassava peel cake is re-grated to loosen it into a
free flowing material that can be subjected to sieving to separate the fine mash
(lower fiber, high energy content) from coarse mash (higher fiber, lower energy
content). Sieving can be done manually or by using a mechanical device.

Description of Products

In garri business, the colour, taste and friability of the garri particles determine the
market. More so, consumer preference varies from place to place, and region to
region. Hence, MAP must give due consideration to the consumer’s choice of quality
that will satisfy their needs. More so, DHQCP will be of two (2) kinds: the fine mash
(for poultry, fish, and pigs); and the coarse mash (for cattle, sheep, goat and pigs).

Product Packaging and Delivery

For easy sale and delivery of garri locally in stores, restaurants, school hostels and
offices, it is preferred that the garri are neatly packed in customized nylon. During
 MALAL AGRICULTURAL PROJECT PROFILE

festivities, they can be packed in hampers and colourful and portable bags. It can be
packed in varying smaller sizes so as to reach a broad class of consumers.
Furthermore, the DHQCP (both fine and coarse) will be packaged in the 50kg rubber
bags for easy storage and delivery to feed millers.

Ownership of the Business

The proposed cassava farming for garri and Dried High Quality Cassava Peel
(DHQCP) production business will be solely owned by MAP SIERRA LEONE LIMITED.

 Management and Personnel Requirement

The proposed farm will require a qualified farm manager with profound knowledge
and experience in farm management. One Project Manager, One Deputy Manager,
Up to 6 Machine Operators processors with adequate knowledge and technical
know-how of both garri production and DHQCP production, up to12 farm assistants
with innate skill and experience in cassava farming and 200 labour at 30,000 labour
hours. 

FINANCIAL ANALYSIS

Project Assumptions:

This project is projected for two years and it will attracts an investment
injection of $250,000 excluding the land lease amount of $50,000 and
excluding taxes. All figures will be denominated in dollars-$

$50,000 is the capital lease amount on 1,260 acres of land. Total Fixed Assets
including capital lease is $270,000 and Total Variable Cost (in the first harvest):
$51,500

Depreciation is straight line method for 5 years on Plant, Machinery and Equipment
and 20 on Building and Capital Lease

The land cultivation is planned in two stages for the two years under review of this
project proposal. First cultivation is on 500 acres and second cultivation is on 1250
acres (an increase by 750 acres). Maximum cultivation capacity is the potential of
harvesting 3,000 and 7,500 tones at each cultivation.

Cassava cultivation practice affirms that, 4,000 cassava sticks per acre and each plant
producing above 1.5 to 3 kg of root, or above 6 to 12 tonnes per acre of fresh root
(minimum estimate). If the cassava variety SLCAS 6 & 4 yields, say, 1.5 kg per plant
 MALAL AGRICULTURAL PROJECT PROFILE

(minimum yield), then we are talking about 6 tonnes per acre. Other cassava varieties
can do between 10 to 12 tones per acre.

On a joint product output of Garri and Dried High Quality Cassava Peel production,
the tonnage is reduced by 50% of moisture content but including by-product
(DHQCP). The DHQCP is not costed in this analysis. The finished product is packaged
in 35kg bags at Le150,000 ($15). (being 44.4% below current market value of
Le270,000

The plant will run for 3000 machine hours of 125 days in the first cultivation and 5000
machine hours of 210 days in the second cultivation period of 100 litres AGO per day
at $0.85/L

The permanent staff will comprise of one Project Manager, 5 Engineers and 10 Farm
Assistant. Further 200 per farming activity of hired labour will be needed for the farm
clearing, planting, weeding and harvesting.

In the second year, wages will be increased by 20% and hired labour by 25%.
Permanent staffing will also increase by 20% including a deputy manager.

Cassava cuttings cost will be zero in the 2nd year due to owned availability material.
Fertilizer, agro-chemicals will increase proportional to the farm increase in acreage.
Packaging will increase by 200%. Repairs & Maintenance, Delivery & Carriage and
General Expenses is set at 10% of Cost of Goods Sold. Insurance, Motoring &
Travelling, Telephone & Radio Communication, Advertising, Stationary, Marketing
and Promotion will increase at 5% in the 2nd year.

The loan amount and interest is paid within the 2 years of the project period.

Fixed Rate Loan Payment

Loan Amount $250,000

Interest rate 20% per annum
Term 2 years
Number of payments 2 end of years payment

Loan 250,000
Amount
Year Payment Payment Payment Total paid Total Balance
Amount to Interest to to paid to to pay
principal principal interest
1 163,636.36 50,000 113,636 113,636 50,000 136,364
2 163,636.36 27,273 136,364 250,000 77,273 0
 MALAL AGRICULTURAL PROJECT PROFILE

 
Profit and Loss Statement Year 1 Year 2
  1 cultivation 2 cultivation
session session
Income    
Sales $ $
 Product Items (Garri)  642,857.14  1,607,142.86
Less Cost of Goods Sold    
 Tota Variable cost  51,500.00  96,250.00
Total Cost of Goods Sold  51,500.00  96,250.00
1
Gross Profit
591,357.14 ,510,892.86
Expenditure
Employees' Wages & Salaries 51,600.00 81,600.00
21,250.0
Electricity/power 12,750.00
0
Repairs & Maintenance 5,150.00 9,625.00
2,500.
Insurances 2,625.00
00
Travel/Motoring 2,500.00 2,625.00
Telephone & Radio Communications 5,000.00 5,250.00
Delivery & Carriage 5,150.00 9,625.00
Packaging 20,000.00 40,000.00
Printing & Stationery 2,000.00 2,100.00
Advertising 7,500.00 8,250.00
Marketing/Promotion 7,500.00 8,250.00
Depreciation:    
Plant, machinery & equipment 36,400.00 36,400.00
Building and Capital Lease 4,400.00 4,400.00
Total Depreciation 40,800.00 40,800.00
General Expenditure 5,150.00 9,625.00
Total Expenditure 167,600.00 241,625.00
Operating Profit 1
423,757.14 ,269,267.86
Long-Term Loan Interest
50,000.00 27,272.73
Profit Before Tax 1
373,757.14 ,241,995.13
     
 MALAL AGRICULTURAL PROJECT PROFILE

Accumulated Profit /Loss(-) 1

Cash Flow Forecast - Two Years 373,757.14 ,615,752.27

Net profit increase by  232% after 150% Increase in farm cultivation

Year 1 from 500
Yearacres
2 to
1,250 acres. Receipts $ $
Cash Sales 642,857.14 1,607,143
Loans Received 250,000.00  
Total Receipts 892,857.1
1,607,143
4
Payments    
Cash Purchases 51,500.00 96,250.00
Employees' Wages & Salaries 51,600.00 81,600.00
The bank Electricity/power 12,750.00 21,250.00
balance Repairs & Maintenance 5,150.00 9,625.00
increased by Insurances 2,500.00 2,625.00
308% after Travel/Motoring 2,500.00 2,625.00
absorbing Telephone & Radio
capital 5,250.00
Communications 5,000.00
purchases in Delivery & Carriage 5,150.00 9,625.00
year 1 and Packaging 20,000.00 40,000.00
increasing Printing & Stationery 2,000.00 2,100.00
cultivation by Advertising 7,500.00 8,250.00
150% Marketing/Promotion 7,500.00 8,250.00
General Expenditure 5,150.00 9,625.00
Loan Interest 50,000.00 27,272.73
Loan Repayment (Other) 113,636.36 136,363.64
Capital Purchases 270,000.00  
Total Payments 611,936.3
460,711.36
6
     
Cashflow Surplus/Deficit (-) 280,920.7 1,146,431.4
8 9
     
Opening Bank Balance 0.00 280,920.78
     
Closing Bank Balance 280,920.7 1,427,352.2
8 7
 MALAL AGRICULTURAL PROJECT PROFILE

Balance Sheet - Two Years  

Year 1 Year 2
NET ASSETS EMPLOYED
Fixed Assets $ $
182,000 182,000
Plant, machinery & equipment
.00 .00
88,000 88,000
Building and Capital Lease
.00 .00
Total Fixed Asses 270,00 270,00
0.00 0.00
40,800 81,600
Accumulated Depreciation
.00 .00
Net Book Value 229,20 188,40
0.00 0.00
Current Assets
280,920. 1,427,352.
Bank (Other)
78 27
Total Current Assets 280,920 1,427,35
.78 2.27
Less Current Liabilities
510,12 1,615,75
Net Total Assets
0.78 2.27
FINANCED BY
136,363
Long Term Loan Payable
.64
373,757 1,615,752
Accumulated Profits/Deficit (-)
.14 .27
510,120 1,615,75
Equity and liability
.78 2.27
Conclusion

It is not enough to emphatically pronounce a business profitable and viable without

a proper analysis of its Strengths, Weaknesses, Opportunities and Threats as outlined
below;

Strengths: One of the factors critical to a successful outcome of any investment is

the proper management of time and resources. I, as an integral partner to this
project, I have a background education in economics, I have many years of
management experience, I have committed many hours in the research of the
product, its equipment, its production process and its management. I am well
 MALAL AGRICULTURAL PROJECT PROFILE

determined, and I will commit financial resources and a lot of my time and
enthusiasm to breakthrough in this project.

Weaknesses: Funding limitations is usually a greater constraint. With the current

financial resources, MAP will need support from agricultural development agencies
such as IITA, Arab Development Bank and other support agencies. MAP is also
inviting more investment from other sources including private individual with the
required capital or loan from banks.

Opportunities: The high market demand for garri and dried high quality cassava
peel DHQCP leaves a loop hole to exploit and a goldmine to diligently explore.

Threats: At any season in mono-cropping, most of “buffer crops/weeds” are

generally absent or limited, hence, exposing a planted sole crop to insect pest
infestation. To curtail this however, maize would be planted along side with the
cassava which will in turn give a marginal income. The threat of theft is naturally
controlled due to the cassava variety which give a bitter taste and thus, not being a
favourable option for both human and animal consumption before processing.