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How is the value chain formed?

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Production Value Chain
Sep 29, 2021
Edited By
Seujin Jang
Sep 29, 2021
Edited By
Seujin Jang
The production value chain of cassava is formed from farmers that sell cassava to retail and wholesaler collectors, as they pay in cash and with lower prices. The retail collectors would also distribute the cassava to wholesalers and factories that would process it.

99% of all farmer’s produce is fresh cassava roots, the remaining 1% is cassava chips. Farmers sell to retail and wholesaler collectors because they pay upfront and in cash but relatively lower prices. Starch factories offers a higher pricing but requires higher quality and do not pay upfront (takes 2~3 weeks) because they conduct cassava starch quality tests on the fresh casava roots. Retail collectors will also distribute to wholesale and starch factories. Wholesale collectors will process the cassava to chips and pellets for domestic and export. Cassava chips are mostly sold to major animal feed industries (Cargill, Betagro), ethanol, alcohol and citric acid industries. Cassava starch is mainly for export, and are directed to food, sweetener, paper production and MSG manufacturers.

Starch processing firms are the only channel that can be approached. 




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