Cassava: Value Chain Analysis

INTRODUCTION

Cassava (scientific name: Manihot esculenta Crantz) is now considered as one of the important crops in the Philippines because it is one of the four commodities that sustained the growth of Agriculture aside from corn, sugarcane and poultry.   Cassava accelerated its growth to 12.1%  from 2.3 percent in 2012 (NSCB Report, 3^rd quarter of 2013). In 3^rd Quarter 2013 it contributes Php 4.71B (1.95%) in the Gross Value Added (GVA). It has the highest growth rate at 20.8%  in Agriculture Sector (NSCB, 2013).

 This is the main reason why Zamboanga del Sur considered cassava as the 1^st priority commodity to be considered in the Provincial Commodity Investment Plan. Thus, the provincial government has been pushing for the massive production  of high value crops focusing on cassava subsector which is a highly sex-segmented labor opportunities for employment by utilizing women and men in different farming activities in the value chain.

In the value chain of the fresh cassava, the women play an active role in fresh cassava selling for food consumption in the retail market. Wholesale trading is more dominated by men due to the physical aspects of the job like lifting of heavy bags.

In the value chain of the dried cassava, women with the help of children during vacation are typically in-charge of chip production which being done manually while men are engaged in different farming activities.

The cassava livelihood program as promoted by the Provincial Government of Zamboanga del Sur involves planting of cassava inter-cropped with compatible cash crops with the use of locally made organic fertilizer. 

The blueprint of the program is to provide farmers with sustainable livelihood opportunities with family monthly income, i.e. the farmers will  plant cassava in his 1,000m²  area per month for ten months thus a total of one hectare after 10 months of which they can already harvest the first part of the series on the 10^th month; on the 11^th month the second plot will be harvested while refreshing again and replanting the first plot and so on—this protocol is programmed with a social re-engineering design towards a more sustainable Green Revolution that is based on natural farming system.

The potential agricultural areas, the available technology, the demand both locally and in the export market for cassava granules have triggered the development of the cassava value chain analysis. Hence the opportunity of cassava production and processing has a strong domestic market demand and comparative advantage in national and export market.

Several initiatives are implemented to support the development of cassava production by providing technical support especially in the preparation and production of organic fertilizer, financial assistance to farmers, ensuring product quality and marketing services to cassava producers.

To support these initiatives is the partnership forged by the provincial government with San Miguel Corporation (SMC) where farmers delivered their cassava chips directly to the Zamboanga del Sur Farmers Marketing Cooperative (ZDSC FAMCO).  The latter acts as assembler and consolidates volumes from farmers and ensure delivery to San Miguel corporation buying station at Dalapang, Labangan Zamboanga del Sur.

1.1

Rationale

Cassava production is considered as alternative crop to combat against food crisis and energy food that can be grown locally in less favorable and marginal areas to augment local food supply for food items. About 15M Filipinos are eating cassava during breakfast and snacks instead of rice (BAS, 2009).

Aside from food items cassava has several uses, i.e.  ⁽¹⁾one of the ingredients for animal feeds,   ⁽²⁾used to produce liquor and alternative raw materials  to molasses, ⁽³⁾used to make glucose, fructose, lactose, substitute for sucrose in making beverages, jams and canned fruits, ⁽⁴⁾ used to mix with active pharmaceutical materials to make capsules and tablets…⁽⁵⁾ used in yam sizing and material planting for the textile industry, ⁽⁶⁾ can be mixed with biodegradable polymer to produce a packaging material, ⁽⁷⁾ used in Mono Sodium Glutamate,  ⁽⁸⁾ used in making quality glues and can be binders for plywood, and still evolving.

Because of this tremendous uses the demand is significantly very high. It is but timely to design a sustainable approach now. The cassava production or (Gahung/ pit method) is recommended here. It is an expansion of the existing cassava production of the province which primarily aimed to increase local revenues and income of the farmer cooperators.

1.2	Objectives

•         Establish the commodity value chain map and determine/ identify the major players in the value chain for cassava production in Zamboanga del Sur.

•         Determine the opportunities and constraints of the different players along the value chain.

•         Identify the competitive directions to exploit comparative advantages and opportunities and overcome disadvantages and constraints for the benefits of all players along the value chains.

The project will catalyze the social re-engineering aspect in the province to spur economic growth and accelerate development of the cassava industry.  Consequently these approach will enhance peace, food security, public safety by reducing insurgency and delivery of basic livelihood program. These will be intensified in line with the priority intervention needed to strengthen links in the commodity value chain and shall be translated into priority activities needed to be implemented to enhance productivity and competitiveness of cassava production and marketing opportunities.