Canada-US Agrifood Export

Project:
Cassava Flour

Isaac Poirier
AGR 1110
Section 105: Thursday, 11:30am
Due: Tuesday November 28th, 2017
Part 1: Product Information and Benefits to Canada

Introduction to Product:

What is Cassava?

Cassava is a tropical root crop originating and primarily grown for food in the Pacific

Island countries of- South America, Asia, and Africa (Food Standards AU, 2017). Cassava has

enlarged, starch-filled roots, which are mostly used for tapioca pearls and cassava flour (Food

Standards AU, 2017). Cassava is one of the leading food and feed plants of the world. It ranks

fourth among staple crops, with a global production of about 160 million tons per year. Most of

this is grown in three regions: West Africa and the adjoining Congo basin, tropical South

America and Southeast Asia (Moore and Lawrence, 2007). It was adopted due to it being able to

grow in a variety of soils and climate, as well as being drought tolerant and its ability to grow on

depleted land and marginal soil (Moore and Lawrence, 2007).

General Product Proposal:

The proposal to farm cassava in Canada would be to make cassava flour and produce a

low costing product that has a high opportunity for sale, both domestically and in the United

States. Currently, there is no market production for cassava in Canada, and limited production of

cassava flour in the United States. Cassava flour is gluten-free which makes it marketable to

those who are gluten sensitive or intolerant. It is also known to be one of most efficient

producers of carbohydrates and energy among all food crops (Moore and Lawrence, 2007).

Brief Explanation of Production:

 Farmers will grow the cassava year round in greenhouses and every 10-12 months (Set

time by farmer) a truck will stop by the farm to take the cassava roots that have been harvested to

the main milling center in Acton, Ontario (P&H Milling Group). The cassava roots will then be

milled into flour and packaged to be shipped. The transportation for exporting the product to the

US will mostly be trucks since the cost is cheaper and the product does not need to be urgently

delivered. The target audience for the product will be grocery stores, small businesses, and

individual sale. The product could even be sold to major US flour distributors such as King

Arthur Flour, and US Flour Corp (King Arthur Flour Company, 2017).

Growing Cassava in Canada (What is needed to start growing):

Growing cassava in Canada will require either a growing season of 8-10 months in 25-32C

weather which is a limitation because Canada only has 5-6 months of temperatures in that range,

therefore a greenhouse that will maintain the 25-32C will be needed (Agriculture TT, 2013).

The idea is to start out building smaller greenhouses all around southern Canada costing about

$25,000 for a 1000 square foot greenhouse. It would be proposed to local farmers who operate a

dairy farm or a different small animal farm since the cassava leftovers can be used as feed for the

cattle/other animals and it wouldnt be a huge setback for the cost of operation. The returns on

investment are about 200-400% for the farmers and it does not take much maintenance to grow

the cassava (Gbadamosi, 2015).

Growing Process:

*All steps below are provided by Agriculture of Trinidad and Tobago 2013*
Environmental Conditions:

1. Soil Type:

Cassava can be grown on most soils, however the best soils are sandy clay loams that are well

drained without a fluctuating water table. Proper soil management practices, adequate soil

drainage and limestone applications at 2-4 t/ha incorporated into the soil 3 to 4 months before

planting are necessary for the successful cultivation of cassava in the following "sugarcane"

soils: Washington Series, Waterloo Series, Couva Series, Freeport Series, McBean Series,

Cunupia Clay and Princes Town Clay.

These soils are mostly acidic, high in nitrogen with high aluminum levels that stunt plant growth

and reduce the formation of tuberous roots.

2. pH: 5.5-6.5

3. Watering schedule:

Water each cassava plant once daily and be wary of excessive watering because it can be

damaging to the plant and can make the tubers deteriorate rapidly.

4. Sunlight:

Cassava loves sunlight and grows best in situations with full sunlight as much as possible which

the greenhouses will help keep the shade away and keep the cassava plants in as much sunlight

as they can be.

5. Temperature:

Maximum root production occurs within 25-32C and should ideally stay at that temperature for

as long as possible. Cassava can survive in lower temperatures but the roots do not grow as

rapidly and/or get the size needed to be harvested and milled into flour.
Planting Material Choice:

1. Choose healthy, disease free planting material (setts) from vigorously growing plants 8-15

months old.

2. Select cuttings from the middle stem portions, 30 cm long with an average of 9-12 nodes. Cut

setts using a handsaw or clean, sharp cutlass sterilized in a 1% Sodium hypochlorite (commercial

bleach) solution.

3. Bundle setts and dip in a fungicide/insecticide solution for 10-15 minutes.

4. Allow the solution to drain off before planting.

Planting:

Setts are planted 50 cm to 90 cm on the ridge at a 45 angle leaving 2-3 nodes above ground.

Cassava is normally planted in May at the beginning of the rainy season. However, earlier

plantings in March and April can significantly increase tuber yields but in greenhouses it is best

to plant at any time between March and May because having the months with most sunlight

during the 3-6 month growing period helps the bulking of the roots and increases yield.

Fertilizing:

A SOIL TEST SHOULD ALWAYS BE DONE TO DETERMINE FERTILIZER TYPES AND

RATES.

1. When soil tests are not done, a general recommendation for fertilizing cassava can be:

a. NPK (12:24:12) applied at the rate of 336 kg/ha at 6 weeks after planting followed by 16:8:24
at 16 weeks after planting

OR

b. Mixtures of single fertilizers such as Calcium Nitrate, Muriate of Potash and Triple Super

Phosphate at 114-209 kg/ha N, 25 - 37 kg/ha P and 240 - 335 kg/ha K also applied at 6 and 16

weeks after planting

2. Average quantities work out to be one handful (85gm-113gm) of fertilizer per plant at each

application.

3. Place fertilizers 15cm to 45cm from the base of the stem in drill holes. Drill holes should be

10cm to 15cm in depth. Placement of fertilizers in drill holes reduces fertilizer loss through

runoff water.

4. Fertilizing plants 16 weeks after planting enhances tuber bulking.

Harvesting:

Cassava matures between 8 to 12 months after planting. Cutting back plants 2 weeks before

harvesting should cause tubers to mature and increase yields by 10%. Do not weed before

harvesting. Excess soil should be removed from the harvested tubers and tubers carefully packed

in crates or bags for transport.

All steps referenced from (Agriculture TT, 2013).

Equipment Needed for Farmers:

Equipment Cost Company

Large size Greenhouse + ~$30,000 (~$25.00 per DeCloet Greenhouse

lighting/flooring (1,000 square foot + lighting and (Simcoe, Ontario)
 square foot) flooring)

Cassava cuttings (1000) $5000 Daleys Fruit Tree Nursery

(California)
Table 1: Equipment needed for farmers

The average size greenhouse will be between 500-1000 square feet and the cost is $25.00

per square foot, this price point is steep for starting out but that is why the general idea is to ask

pre-existing farmers to put the investment in to help the company start up and the farmers have a

chance for 200-400% return on investment after 2 years (Gbadamosi, 2015). The cassava

cuttings are a one time buy and the farmer just needs to cut part of the stem and replant for the

next year after harvesting.

Labour Required and Costs/Issues:

The initial labour for building the greenhouse and planting the cassava cuttings is the

hardest and most time consuming part of the project. After the initial labour it is only 1-2 hours a

day watering the plants and once a year harvesting the roots which takes approximately 1-2

working days. Paying workers to build the greenhouse will be the main cost and depending on

the farmer they may or may not hire an employee to take care of the cassava to ensure quality

and proper care for the plants. The issues that may be encountered while growing cassava will be

mostly individual plant problems (disease, weeds, adding fertilizer to help growing) and any

issues with repairing the greenhouse or annual maintenance for the greenhouse. The cost for

these expenses are generally low (~$1000-$5000 annually) (HomeAdvisor, 2017).

Market Opportunity:
Health and Nutritional Information:

Image 1: Nutrition facts for Cassava Flour (Anthonys Goods, 2017)

Image 2: Comparing Cassava flour to Wheat Flour per 100 grams (Biggerstaff, 2016)

The nutrition facts for cassava flour is similar to wheat flour except cassava has 20g more

carbohydrates and 10g less protein per 100 grams of flour. Cassava is used in tropical countries

as a primary source of carbohydrates and can be used in high carb diets for consumers in Canada

and the United States (Biggerstaff, 2016).

Canadian Market:

The Canadian market for cassava flour would be directed towards people with gluten

sensitivity or intolerance. This would be a niche market but has opportunities for growing

towards high carb diets and athletes who need more carbohydrates in their daily lives

(Biggerstaff, 2016). It is also a marketable product because of it being gluten-free and society

having a bad impression on gluten and some people avoiding gluten in their daily diet. It

increases the variety of gluten-free flours available in the market. Canada has only imported

cassava flour up to this point and would save money for the consumers and have economic

benefits by growing cassava in Canada instead of importing all of it (Duncan, 2015).

Main Benefits to Canada for Exporting Cassava Flour:

More Canadian jobs:

The business from production to market will produce approximately 1000-2000 jobs in

Canada.

Job Type Number of Available positions

Farmer 100-500

Truck Driver 10-20

Packaging 50-100

Sales 50-100

Management 10-20

Mill workers 10-20

Distributors (Grocery stores, etc) 100-200+

Table 2 : Jobs In Canada made Available (Canadian Food Agency, 2014)

The numbers for the jobs are variable depending on how many farms are created for the

production of cassava and how big the sales numbers become. The available jobs will start out

with the lower end numbers until larger sales and contracts with distributors become prevalent,

then the job positions will open up to a larger group of people to increase production to meet

demand for cassava flour sales.

Opportunity for farmers:

Offering the plan to smaller farmers gives them an opportunity to grow a cheap,

marketable product with high return on investment while also recycling waste products from the

plants into highly nutritional feed for their animals (Puramongkon et al., 2002). The leaves and

leftover products from the cassava offer great feed for cattle specifically but all animals will
benefit from the feed (Puramongkon et al., 2002). Also since the cassava plants just need part of

the stem cut to be able to replant for the next season it is easy to grow the size of the farm if

needed. It is a one time investment to continue producing high value product for multiple seasons

without lost of waste, cost, or time investment.

Company Information:

The table below has contact information for all companies that have been mentioned in

Part 1.

Company Phone Number Email Address

P&H Milling Acton (519) 853-2850 bmacintyre@phmillin 45 Church St W,

g.com Acton, ON L7J 1K1

DeCloet Greenhouses (519) 582-3081 N/A 1805 Charlotteville

West Qtr. Line,
Simcoe,
Ontario, Canada
N3Y 4J9

Daleys Fruit Tree N/A order@daleysfruit.co 36 Daleys Ln,

Nursery m.au Geneva NSW 2474,
Australia (California
only has online
shipments)
Table 3: Main Company Information for Part 1

Part 2: Export Potential to the United States

US Market:

Brief Introduction:
 The market in the United States is almost 10 times greater than the market in Canada for

selling products (Norris, 2011). Exporting cassava flour from Canada to the United States

improves the size of the market and introduces the product to a larger market. Cassava flour is

mostly imported from South America, India, and other asian countries to the United States and

therefore has greater import costs than if the product were to be imported from Canada (Duncan,

2015).

Image 3: US Organic Food Retail Sales from 2005-2015 (USDA, 2015)

The organic food retail sales in the US market has been steadily increasing since 2005

which makes it a good market for increasing variety of foods (USDA, 2015). The bread and
grain market increasing also shows promise for selling cassava flour successfully (USDA, 2015).

Specific US Consumer Details:

Image 4: Increasing numbers of people avoiding gluten in the United States (BBC, 2015)

The market for people who are gluten sensitive or intolerant is growing slightly but those

are generally genetic diseases (Fazano, 2015). The image above shows an increase in millions of

people from the United States avoiding gluten in their daily diet because of societal perceptions

on the effects of gluten (BBC, 2015). The main market for cassava flour in the United States will

be the two groups of people mentioned above and it is evident that the need for more varieties of

gluten-free foods will be needed as the trend of people avoiding gluten increases and consumers

search for different types of gluten-free flours to bake with.

Image 5: Reasons why people are eating gluten-free diets (BBC, 2015)

The image above is another graph indicating the increase in gluten-free diets over time

and some of the big jumps in population increase is due to famous people doing something

gluten-free, and example would be tennis player Novak Djokovic revealing he is on a gluten-free

diet and the graph has an inflation of people also going on a gluten-free diet (Fazano, 2015).

Transportation Logistics:
Image 6: Population Density in Canada (Stats Canada, 2006)
Image 7: Population Density of the United States (Stats Canada, 2006)

The above images show the population density of Canada and the United States and the

idea for where the main transportation routes are based on the areas with highest population

density. The main milling center in Acton, Ontario is near the most densely populated area of

Canada and has the least distance for transport to the general area of the United States with the

most densely populated areas in the northeast corner close to the border.
Image 8: Intended Transportation Routes by Truck from Canada to the United States

(Transportation Stats, 2010)

The image above is the main transportation routes intended for cassava flour in the

United States, this map has a direct correlation to the population density maps in images 6 and 7.

The reason for the transportation route is to cover the largest consumer markets without having

to spend money transporting product across the entirety of the United States and Canada. As seen

in the image the main transport routes will be going to Michigan, Ohio, Illinois, New York,

Indiana, and also with lesser routes to California, Texas and a few other more southern states.

The transportation for exporting the product to the US will mostly be trucks since the cost is

cheaper and the product does not need to be urgently delivered. The target audience for the

product will be grocery stores, small businesses, and individual sale.

Cassava Flour Storage:

Cassava flour can be stored for 8-12 months after it is packaged, tightly sealed, and

refrigerated (Food Basics, 2012). Cassava flour will be milled as soon as they can after

harvesting because the roots can deteriorate if not processed within 1-2 months, the roots will be

milled and packaged then stored in a refrigerator for transport, it will be transported then

preferably stored in refrigerated conditions until the packages are put on shelves for sale (Food

Basics, 2012). Unrefrigerated cassava flour packaged will still be good for 4-5 months (Food

Basics, 2012).

Marketing Strategy:

Marketing and Advertising the Product:

Marketing for the product will include having a sales team that travels to agriculture fairs

and holds meetings with major distributors and grocery chains to discuss possible partnerships,

sale ideas, and find ways to improve the product quality. Other marketing strategies will be

creating an online store and/or selling the product on websites such as amazon to create extra

individual sales and satisfy customer needs. Producing cassava flour in Canada makes it cheaper

for Americans to buy because of the current difference in the dollar, as well as the high return on

investment there is room to reduce the cost to beat the competition from manufacturers in the

US.
Online Retail:

Image 9: Total Online Retail in the United States between 2000 and 2016 (Duncan, 2015)

Online retail stores (such as amazon) are becoming a huge part in sales as seen in the

graph above which shows that each year since 2000 has increased percent of online retail sales

by approximately 1% each year up to 8.15% of total retail in the United States in the year 2016

(Duncan, 2015). Opening the retail of cassava flour to online stores such as amazon could create

an online market for individual sale of the product that has no negative implications (Duncan,

2015).

US Companies to Target:
 The target audience for the product will be grocery stores, small businesses, and

individual sale. The product could even be sold to major US flour distributors such as King

Arthur Flour, and US Flour Corp (King Arthur Flour Company, 2017). The main grocery store

chains to target would be Whole foods, Kroger, Walmart, Costco, and Kmart. The majority of

food sales in the United States come from those companies and targeting them first will vastly

open up the opportunity for sales (Bensinger and Stevens, 2016).

Cost Analysis:

* All Numbers are subject to change*

Per 1 bag of cassava flour

Job Cost Profit

Farmer Dont count initial startup $1.00 per root (1 root= 1 bag)
$0.10-0.20 to grow each root ~$0.90 per root x 5-6 roots
per plant harvested

Transport ~$0.80-$1.00 cost per root to N/A

transport

Milling/packaging $2.00 per root for the bag and N/A

processing

Main Distribution ~$1.00 (import taxes, etc) Sell to distributors for $9.00 a
bag. Cost to pay everything
prior is ~$5.00. $4.00 profit
for every bag of flour sold.

Grocery Store chains $9.00 Sell for up to $17.00 a bag.

$8.00 profit per bag. Prices
can vary depending on
competition
Table 4: Cost Analysis for Production to sale of Cassava Flour (Gbadamosi, 2015)
 The income for the product is not extremely high but it does bring in a profit and the

numbers can be changed at each stage depending on income needs and competition for the

product.

Competition:

The main US competitor for cassava flour is Ottos Naturals Cassava Flour and it costs

$24.95 CDN for 907g bag (Natura Market, 2017). Ottos Naturals is grown and processed in

California, it is sold in most of the major US grocery chains (Walmart, Costco, Kmart,

Wholefoods) but it is also sold online on many websites including Amazon, and Natura Market

(Natura Market, 2017). Some main ideas for retail of cassava in Canada came from Ottos

Naturals, except to import from Canada will cost less for american consumers because the

american dollar is currently worth more and Ottos Naturals has no local competition so they

overcharge the consumer. Having competition will create a generally better product and start an

improved market for cassava in North America. The only other competition comes from South

America, India, and Asia but the products are not as well known and less information is available

to compare products.

Benefits to the United States:

The main benefits to the United States are creating jobs in the distribution industry for the

grocery stores, and flour distributors as well as creating jobs for transportation and food

inspection. Other benefits include: economic benefits, healthy alternative foods, and healthy

competition between cassava flour products. All of these benefits are not major but they can
create opportunities for future investments and it helps form a sustainable product for future

market and production.

Conclusion:

Unknown Information, Future Studies, Evaluation of Product:

Cassava flour production in Canada has lots of benefits and it is a marketable product for

the future, but right now there is not enough technology to effectively grow cassava in Canada

even with greenhouses it is limited and is not ideal to be produced in Canada. The limitations of

the growing conditions reduce the appeal of growing in Canada and should ideally be grown in

another country and imported to Canada and the United States (Gbadamosi, 2015). The export

ideas to the United States for the product and market could be beneficial to most products,

creating a healthy competition between products and producing a wider variety of marketable

products to fill the current societal trends are future topics that need to be discussed to form a

sustainable future to feed the world population in years to come.

Word Count: 3540

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