Cassava Processing Plant

Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.

To start a cassava processing business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.

Cassava production requires fresh cassava tubers as the primary raw material. Additional inputs may include water, enzymes (for starch extraction), and packaging materials.

The cassava factory typically requires a washer, peeler, grater or chipper, hydraulic press, flash dryer, hammer mill, and packaging machine. Depending on the product (flour, starch, or chips), other specialized equipment may be needed.

The main steps generally include:

• Cultivation and harvesting

• Washing and peeling

• Grating or chipping

• Dewatering and drying

• Milling or processing

• Packaging

Usually, the timeline can range from 12 to 18 months to start a cassava processing plant, depending on factors like land acquisition, equipment setup, recruitment, and obtaining regulatory approvals. Time may vary based on location and scale.

Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.

Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.

The top cassava manufactures are:

• Avebe U.A.

• Global Bio-Chem Technology Group

• Emsland Group

• Cargill Incorporated

• Ingredion

Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.

Cost components typically include:

• Land and Infrastructure

• Machinery and Equipment

• Building and Civil Construction

• Utilities and Installation

• Working Capital

Break even in a cassava processing business typically range from 1 to 3 years, depending on product type, production efficiency, market demand, and capital investment. Value-added products tend to reach profitability faster.

Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote processing under various national or regional industrial policies.

Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.