Urban cassava markets

Urban cassava markets

Urban cassava markets The impact of fresh root storage W. Janssen and C. Wheatley The authors explain how although fresh cassava Is important In rur...

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Urban cassava markets The impact of fresh root storage

W. Janssen and C. Wheatley

The authors explain how although fresh cassava Is important In rural nutntlon, its importance in urban areas IS limited and declining In Colombia, the third most important cassava-producing country In Latin America, both the structure of the marketing channel and consumer preferences are considered m explammg this difference The principal factor hmiting urban market volume and demand is identified as the rapid root post-harvest deterioration which necessitates high margins to cover marketing risks Appropriate storage techniques which overcome this problem are evaluated and their possible positive impact, through reduction of marketing margins, on retail and farmgate prices and on urban consumption IS estimated A strategy for storage technology adoption IS discusSSd

Keywords markets

Cassava. Colombia urban food

Mr WIllem G Janssen IS a Cassava Economist wllh the Centro lnternacional de Agncultura Tropical, Apartado Aereo 67-l 3. Call, Colombia Dr Christopher C Wheatley IS Postdoctoral Fellow in cassava utlllzatlon at CIAT ‘FAO, FAO ProductIon Yearbook FAO, Rome, 1982 *J H Cock, Cassava a basic energy source in the tropics , Snence, Vol218. pp 755-762 ?bfd % 0 Dtaz, and P Pinstrup-Andersen, Descrrpclon Agro-economlca de/ Proceso de Produccron de Yuca en Colombra, CIAT, Call, Colombia, 1977 ‘R R Tejada and W Moscoso, Resumen estudio perdidas post-cosecha en yuca en la RepublIca Dommlcana 1 Semrnano Sobre la Reducc~on de Perdrdas PostContinued on page 267

0306-9192/85/030265-13$3

00 0

Cassaba with

the major

IS

a total

which

quaIltIes

root

producton

crop ot the Latin

of 31 6 mllllon

enable

It to yleld

American

tonnes

dell

In

lowland

tropics

’ It has setera

1981

m the marglnal

enwronments

chnracterlstlc of many troplcal regions rspeclally m areas of poor dnd/or low ramtall ’ The roots have no period of absolute maturity can be harvested

oler

Llgorous

of

nature

Integration tropical hectare.

a tlmespan cassa\d

growth

mto the associated

The crop does. hobtever. of only 1% ot fresh IteIght. Increases

tr‘msport

and If necessary -’ The

months

makes

cropping

It especially

systems Important

agriculture Despite a relatIveI> this IS e\enlv spread throughout

has a low cost of productlon

\\hlch

ot several

high lahour the growth

per calorie

at farm

SOIIS

level

suitable

tor

m small-scale

requirement per period ’ Cassava (Table

1)

ha\‘e some dlsdd\antages a protein content a moisture content of between 60 and 70% costs

and a very

short

post-harvest

storage

life

This IS due to a rapid phq’slologrcdl deterloratlon of the root and can lead to ler! high losses \\lthln two or three days of harvest The losses habe been estimated at 1-l to 759, ’ Cdssaba still constitutes

an Important

America.

suppl>rng

hoHe\er

suggest that this proportlon

part of the hum,m

7 % of total calorie

requirements IS

decreasing

diet m Latin

In 1971 ’ Data do. (Table

2)

Between

1971 and 1981 world cassaba production Increased bv 24% but tell bv 12”” rn Latin America (Table 2) During the same period. yearI> populdtron Increases averaged 2 96” o m Latin America. le per capita cassa\a production decreased by 21%. compared with a -lo0 decrease tar potatoes nnd a 4”0 Increase for we (Table 1) The role of cassn\a as a calorie source has thus been decllmng during the last 10 iears wth other crops, especldlly we. expanding to take Its place Fresh

root

consumption

of cassd\a

comprises

about

17”,,

of total

Latin Amerlc‘in productron. including Brazil. and about No0 excluding Brazil The remdmder IS used for starch flour. animal teed or alcohol productlon 1 Current evidence suggests that fresh cassava consumption IS declmrng rapIdI>, due to tHo main factors a decrease In consumption per capita m urban areas (Table 3) and the r,jpld mlgratlon from rural regions to urban centres (Table 1 and 5) Cassaka consumption IS falling in urban products

areas because (Table 6)

1985 Butterworth & Co (Publishers) Ltd

of Its Increasing

price

relatrbe

to that

of other

265

Table 1 Direct production (US dollars per hectare)

costs

of rice,

potatoes

and cassava

Potato

lrrtgated race

Sources For nce CIAT Annual Repori CIAT Call. Colombra 1981. for potalo Flores ef al Costos de Produccron de Algunos Culfwos Documento de Trabafo ICA-Bogota Colombra 1979 for cassava CIAT Cassava Program Internal Document mrmeograph CIAT Call Colombra 1983

I

83 473

81 289

335 502

93 88

Total costs

661

1 394

551

of

20 000 1 400 000 007

2 560 913 206 0 26

Total costs 100 000 kcal

72 4

Total cost-labour 100 000 kcal

60 6

22 000 2 398 000 0 03

99 6

23 0

65 78

1093

0 42

0 27

0 34

rice and potatoes on a global and Latin Amenca basis. 1971 and 1961

II

World Area (thousands hectares)

Cassava

185 108 74 93 201

Tofar cosfs 1OOg protern

Table 2 Area, yield and production of cassava,

m 1981

Machrnery Labour Water Seed Other Inputs

Yreld (kg) Yield (kcal) Tolal costs per kg

Note The table consrders only dwect costs not land Data are skghtly brased rn favour of cassava because of Its longer growing cycle entarlrng higher land management and caprtal costs These costs can be estrmated at approxrmately US8100 per crop lor nce US8180 for potato and US$173 for cassava

m Colombia

Yield (kg ha-l)

Production (thousands tonnes)

of

I

Latm America Area (thousands hectares)

of

Yield (kg ha-l)

Production (thousands of tonnes)

1971 Casaava Rrce Potato

10 836 134 148 22 294

9 438 2 304 13 140

102 248 309 096 292 945

2 597 6 581 1 127

13 788 1 706 8 189

35 808 11 224 9 229

1981 Cassava

14 054

9 055

127 161 (24%)” 413 785 (34%) 256 978 f-124.1

2 734

11 569

8 220

1 896

1 046

11 261

31 631 f-1200) 15 586 1398 I 11 779 (28%)

Fkce Potato

144 915

2 855

17 861

14 387

Note a Growth over 1O-year penod grven In parentheses Source

FAO ProductIon

Yearbooks

FAO Rome 1972and

1982

Table 3 Consumption of fresh caasava consumption par head (kg/year)

Bolrvra (1972)a Brazrl (1975) Colombra ( 1970) Cuba (1978) Domrnrcan Republrc (1975) Ecuador (1974) Paraguay (1976) Peru (1978) Venezuela (1975)

in Latin American

countries,

total urban and rural

Rural

Urban

Total

170 112 350 30 0 42 3 31 0 1800 183 27 4

54 27 16 5 124 20 0 60 35 0 56 50

153 63 20 4 188 33 1 190 110 1 110 98

59

11 4

Note a Year of estrmate rn parentheses Total Source

Table 4 Latin America

Source lnteramencan Bank IDB Washrngton DC, 1981

266

19 1

Lynam and Pachrco op crt, Rel 7

Annual Reporf

1960 absolute Percentage 1981 absolute Percentage Yearly growth

rural, urban and total population.

1960 and 1961

Rural population

Urban population

Total population

101 611 000 504 114067000 32 7 0 55%

100 142 000 49 6 235 139 000 67 3 4 15%

201 753 000 1000 349 206 000 100 0 2 65%

FOOD POLICY August

1985

Table 5 Colombia

rural, urban and total population,

8 957 000

Percentage

Development Bank SoUrCe lnleramerlcan Annual Report IDB, Washmgton, DC 1981

Percentage Yearly growth

Cassava Fllce Potato

21 9 -15%

287-290

“J Marriott, B 0 Been and S Perkins. The aetiology of vascular dlscolouratlon In cassava roots after harvesting assoclatlon with water loss from wounds , Physlologja Plantarum, Vol 44, 1978, pp 38-42

FOOD POLICY August

1985

26 665 000

78 1

1000

4 5%

2 1%

and price of cdssava, rice and potatoes in Call, 1976-62

Per capita consumption (IWear) 1970

Per capHa consumption (kg/year) 1962

Percentage change in consumption

Percentage change in price

274 33 2 27 9

128 378 56 6

-533 138 1029

210 160 -4 3

deterioration

Among

and tuber

the troplcal

such a restricted Conbnued from page 265 cosecha de Productos Agrrcofas en ef Area de/ Canbe y Amenca Central. Santo Domingo, RepublIca Dommicana 1979 pp 1-7, D G Coursey and R H Booth The post-harvest phytopathology of perishable tropical produce , Rewew of Plant Pathology, Vol 51, 1972, pp 751765 Janssen, unpublished data, CIAT. Call, Colombia 6J Lynam, Options for Latin American countries In the development of Integrated cassava production programs’, in Development Studies Centre Monograph No 11, Australian National University, 1978 7J K Lynam and D Pachlco, Cassava In Latin America, current status and future prospects’, mimeograph. CIAT. Call, Colombia, 1983 ‘R H Booth, Storage of fresh cassava (Manhot esculenta) I Post-harvest deterioration and its control Experrmental Agncufture, Vol 12, 1976. pp 103-l 1 1 ‘/b/d, C C Wheatley, Studies on cassava (Man/hot esculenta Crantz) root postharvest physlologlcal deterioration’, PhD thesis, London University, 1982 “‘Booth, op nt, Ref 8, J E Rickard. Biochemical changes Involved In the postharvest deterioration of cassava roots , Troprcal Soence, Vol 23, 1981 pp 23% 237. Wheatley. rbrd “Booth, rbrd R A Noon and R H Booth, Nature of post-harvest deterioration of cassava roots , Transactrons of the Bnbsh Myco/og/cal Sooely Vol 69, 1977, pp

1000

20 832 000

Cassava post-harvest

remarkably consumption

17213000

48 0

5 833 000

Table 6 Change in consumption

Source P Plnstrup-Andersen and N de Londono. Estudro de Consum/dores de la Cwdad de CalI CIAT. Call Colombia 1971 Nora de London0 personal communlcatlon 1963

8 256 000

520

1981 absolute

Total population

Urban population

Rural populatlon

1960 absolute

1966 and 1961

root

post-hxbest

crops

cdssdia

IS umque

life ’ The deterlordtion

m havmg

m qudhtv

cdn be

fast sometlmes roots become unacceptable for human wthrn 21 hours of harvest. although a 2-I to 72 hour period

IS more usual ’ Cassava hds a short post-harvest hte because ot the development blue-black plgmentatlon m the kdscular tissues ot the storage accompamed b\ dewcatIon cells These comhlne to gl\e appearance.

very

harvest,‘”

of the parenchvmal (starch contdmmg) the roots an unwholesome hlach or brown

unsatlsfactor)

These plgmentatlon changes rn the root

cooking

qudhtles

harvesting deteriordtion

and which

tirst

require

oxygen

appears

,md handling significdntl)

The can.

In order to Increase the storage deteriordtion must be pre\ented mlcroblal mentation

and

d bitter

taste

reactlons are the result of complex ph)srologlcal tissues. which are lnltlated \flthln a fe\\ hours of ‘I Hence

moisture

tissues acts to accelerate the deterlordtlon reactions tihere moisture loss IS most rapid. are therefore deterloratlon

ot a root

a\oldancr b)

Itselt.

of root reduce

loss from

root

I’ Areas of damdge. the re_glons where ddmdge the

by caretul

lncldence

ot

life ot cdssaba roots this physlologlcdl However there IS a subsequent

deterioration conslstmg of general rotting and tissue ferwhich develops m roots stored tor longer than tour to seten

days In some \ia\s symptoms can be similar to those of physlologlc,il detenoratlon since the bdscular pigmentation can dlso occur but i\lth different dlstrlbutlon in the pathogens mvolled m rotting the mlcroorgamsms root rnterlor

d

root tissues Estdblishment of the root IS aided bj the presence of d&image gl\lng

eas! access to the starch and sugar substrates

of the

At present this mrcroblal deterloratlon IS rarely a problem since root acceptablllt) IS Imarlably dftected precIousI\ b\ phvslologlcal detenoratlon It this latter were prevented, however. a method for controlllng this mlcroblal problem would be necessxy Control of one Hlthout the other would hardlq Improve root storage life over the present one to three days

267

Effect of deterioration

on cassava root marketing

Currently no storage methods are used In the marketing ot fresh cdssdva roots In Colombia The rapid deterloratlon which occurs In the pre\alhng post-harvest ambient conditions effectlkely makes cassaba storage lmposslble Roots must be consumed within two days ot hane\t In the case ot urban markets.

often distant from the producing

regions

roots hnbe to be handled within a \erv short time to reach the consumer before deterioration becomes wslble There IS a substantial risk to the N holesalers sold This

and retailers

necessitates

wholesaler. transferred

that roots ~$111deteriorate

a close

mtepratlon

of

betore the1 can be

producer.

Intermediary.

retailer ,~nd consumer. so that the dally demand cdn be bachwards down the marketing channel to the producer

Because of this reverse demand

Integration

of the marketing

channel.

the followmg descrlptlon UIII work trom retailer to producer In Colombl,l ret;lllers often hats estabhshed contacts \\lth salers

For example

the retailers

rather smdll quantities

In the Atlantic

ot roots - around

whole-

coast region trade In

50 kg of roots per day - and

travel dall) to the wholesale market to purchase this quantity I’ This IS because (a) the\ do not want to risk being left with unsold pen\hable roots. (b) the! must make many smJl transactions ench day and (c) they are dispersed throughout the to\\n In order to tacllltate shoppIng bv housewl\rs A higher percentage of cdssd\a than of other crops IS sold In local nelghbourhood markets despite the hlpher price found for CSS‘I\~ compared \\lth large central markets (Table 7) Although retailers attempt to mlmmlze the rlsh ot hd\lne casbava lett at the end of the dav them

The\

were

the time I’

For

deterloratlon

In tact. left with unsalable them.

structure I_lrban wholesalers

cassavd usually

IS

buy their

unsold

a serious problem

deteriorated

a risky

diaries without ha\mg to leale the toHn smdll volumes ot roots per day (around

IS

product

cassa\a

with

from

tor

roots 14% of a high cost

rural

Interme-

These wholesalers also handle 2000 hg m the Atlantic Coast

region of Colombln) A \\hole5aler who buys 1000 kg a day and sells to retailers In 50 kg lots must mahe 30 transactions a da! These transxtlons dre made In the early morning allowclng the retailer to sell the cassavd during the remainder of the ddy This. together with the risk of haling unsold root> etfectlvely prekents him from Increasing the quantity of roots handled Often wholesalers HIII arrange tuture purchases and hx prices Hlth rural lntermedlarles who then organize producers’ hanests to obtam ‘%assava Economics,CIAT. unoubllshed survev material. CIAT. Call. Colombia 1983’

’ 4lbrd

the

required

hno\\ledge agreement

qu;rntltk

Thev

offer

prices

to farmers

based

on the

that the price with the wholesalers IS already agreed When IS reached between Intermediary and farmer the harvest IS

Table 7 Percentage of total volume of cassava, potatoes and nce sold m neighbourhood shops and in the central market place m Cartagena, Colombia, 1973, compared with their pnce in each location Neighbourhood

Note

a Prices

in US$

Source CEIMA. Estudro de/ Mercadeo Ahmenfos. CEIMA Bogota Colombia 1973

268

de

shop

Central market place

Commodity

Percentage sold

Price/kg”

Percentage sold

Price/kg

Cassava Rice Potato

46 32 39

0 15 0 25 023

50 57 55

0 13 0 25 0 23

FOOD

POLICY

August

1985

lrrban Table 9 Characteristics

of the wholesale sector of Cucuta, 1973

Number of employees

Buying frequency (days)

Average purchase (tons)

Trade per wholesaler per month (tons)

Always buy at same supplier (percentage)

27 10 13

13 7 16 11

341 66 25

76 140 75

37 5 0 100

Wholesalers

Source CEIMA Estudio de/ Mercedeo Ahmentos. CEIMA Bogota Colombia 1973

de

Grams processed products Potato Plantalticassava

cassar a marhets

usually arranged for the followmg day. although sometimes longer-term agreements are made when demand IS guaranteed Thus It IS clear that many people are mvolked m makmg small transactlons a feature which lnevltahly Increases prices (Table 8) Another factar contributing to high prices IS related to the risk wholesalers the day

and retailers

deterroration

face of hd\lng

roots left unsold at the end of

could make them unmarketable

the next day

In order to avoid this traders WIII tend to order less than they expect to sell on an average day Suppliers will be faced with an mtermedlate demand actually lower than the final consumer demand and will deliver a restrlcted market

amount

of cassava onto

the market

will thus be much less likely than undersuppl!

Oversupply

In the

and consequently

dally prices above equlhbrmm level will be more IlkrIb than prices below equlllbrlum level (Figure 1) This mechanism also holds at the level of the rural Intermediary cover his guaranteed sales and able to hanest

he will harvest a sufflclent amount to more It IS possible that he UIII not be

110

a sufficient quantity of roots to meet this target (eg mhen SuPPlY

Demand Non

rerlimdf.wche rural mermedlw

of

Wholesalerdemand

Wholarlw dernrnd mdUctlon -I

Demand transfer

SuPPlY tramfer

Conrumor

demand I” equllibrwm

Figure 1 The demand fresh effects

cassava

in

mechanism

Colombia

and

of its

on prices

Effectlvs SU~@V to ccmUmer

Mvkat clwnnel mechrmsm Effect of mukm channelmechanism

The upward arrows represent demand that IS transferred, downward arrows are the actual amount of supplled cassava Starttng from consumers’ demand In equlllbrium. demand transfer decreases gradually and eventually less cassava than actually demanded reaches the consumer This causes a price above the equiltbnum level a F $ = price elasticity of demand = percentage percentage

FOOD

POLICY

change In demand change In price

August

1985

TOUI market tumover lower than equlhbrwm

Total market turnover hi#wr thm equilibnum

Mtiet agmX~cwld rlther be better or WOM off wnh ltmmd rupplv

Marlwt w(r better off With limitad supply

269

l’rbun

CUSS~L a rnarkrrs

harvests

get delayed)

but he WIII neler

When the price elastlclty of demand - 1 to 0. a restrlctlon of marketed

harvest

more

than

the needs

for cassava tails wlthln a range ot bolurnes leads to higher mane!

turnovers favourmg the marketmg agents they get more money for less work Cassava price eldstlclty hns been estimated at -0 8 and -0 06 ” Indicating that market restrlctlon tavourlng traders could Indeed he occurring

in Colombia

Deterlordtlon thus puts pressure on the supply to be below the equlhbrlum level Prices Increase as a result. leaving traders with extra profits This mechanism also explains why. while market prices are high. many farmers do not start growing more cassd\d If the! Integrated into the market channels via the rural lntermedlarles be unable

to sell their

The negatl\e

produce

effects of deterloratlon

the marketing

channel

are not they ~111

on the fresh market

are twofold

has to be fast movmg and ldbour Intensive

and

the high risk Involved \%clth this crop dlmmlshes the quantities marketed and causes price rises As d result the marketing margin tor cdssa\a IS berg high, approxlmatelv tin,4 retail price The

US$O 30 a hologram. retall margin comprises

le 609/o or more ot the US$O 17 to 0 30 the

wholesale margln US$O 03 to 0 06 and the assembly-agents margin US$O OS to 0 1’ Transport costs account for less than W’O of the total margin For potatoes a slrnllxly bulky product produced slmllar SIZS a marhetlng margin of only 36% was calculated a hologram

In Colombld

Advantages In the rural

during

1%

and disadvantages areas

cassavd

can often

at tarms ot at US$c) 13

I’

for consumers be

stored’

simply

by harvesting

plants only when required In the town. however. where consumer5 must buy and eat cassava on the same day. the high cassaca shopping frequency that this necessitates leads to Increased consumer purchasing costs because ot the often large distances between home and marketplace These

storage

and

market

characterlstlcs

strongly

Influence

the

sultablhty of cassala for consumption by rural and urban societies This IS shown In Table 9, where the relatlbe advantages and disadvantages of cassala

for rural and urban consumers ha\e

been compared

with

those

ot rice and potatoes bv asslgnmg values to 10 consumer demand factors Cassava is a very attractive crop for rural subsistence communities, It 15L Fl Samnt, L Was M C Duque and C Sere, ‘Food consumption patterns in Colombia - a cross-sectional analysis of the DANE-DRC1981 Household Survey Trends m C/AT Commodities, 1984, pp 31-63, CIAT. Call, Colombia, D Pachlco, W G Janssen and J Lynam, Ex ante analysis of new technology A comparison of cassava for the feed and fresh markets In Colombia’, Agncultural Systems, Vol 11, 1983, pp 131-142 I60 E Van der Zaag and D Horton, POtal Productron and Utrlrzatron m World Perspechve w& Special Reference b the Troprcs and Sub-Troprcs, mimeograph, CIP. Lima. Peru, 1983, 41 pp j7FA0. Food Balance Sheets, FAO. Rome, 1980

270

has a low price

and productlon

costs (see Table

1). ease of association

with other crops and year-round avallablhty The deterloratlon problem IS not severe m rural areas since roots can usually be left unharvested until required for Immediate local consumption The low nutritional due to the poor protein content IS only a problem when additional protein sources are absent The avallable data on nutntlon rn Latm America suggest that this IS not the case I7 In the urban marhet. however the rapid perlshablllty of the roots becomes a major dlsad\antage because of the risk of large losses m value

storage, wholesalers dnd retailers need high marketing margins. which result In the roots being elpenslve for urban consumers Low cassava production costs are completely outweighed by the higher marketing costs The supply ot roots ma) also vary throughout the year as storage to even out fluctuations m supply and demand IS lmposslble Fmally. the

FOOD

POLICY

August

1985

Table 9 Comparison of the different characteristics self-producing and urban-purchasing communities

Charactenstics

Note a In rural socletles thus means produchon costs especially cash expenses In urban areas 11 refers to the retail pnce ‘As regards mterand mlxed croppmg planting and harvest times and spread of labour needs through crop cycle c Different ways In which It can be Incorporated ways the crop can be Inlo a meal “Different processed e Size of mlmmum purchase unil The scale used was 5, good not appkable

1 bad na means

Source Cassava Economics CIAT Consumpbon Survey m fhe Attantrc Coast Regton of Colombra unpubkhed data 1983

of cassevs, rice and potato in both rural

Casseva

Rural Rice

Potato

Cassava

Urban Rice

Potato

5

3

4

3

5

3

2

4

4

2

4

4

4

2

3

na

na

na

3

4

2

3

4

3

2 4

3 4

2 3

3 1

5 4

4 3

na

na

na

1

5

3

3

3

3

3

5

4

4

4

4

4

4

4

5

3

4

na

na

na

3

5

3

2

5

3

PrIcea Composltlon (nutnhonal quality) ProductIon” flexiblllty Combmatlon In the dlef Avallablhty through year Penshabllity Acqulslhon COSU effort Waste In preparahon Faclllty of preparahon Ultkation posslbllltles’ Mmimum size of consumphon/purchasee

rapld perlshabihty means that consumers must make frequent small purchases and still risk a conslderable hkehhood of deterloratlon before consumption

As a consequence

of rapid deterloratlon

cassava

IS

more

expensive than either rice or potatoes rn urban areas (Table 10) The urban consumer regards purchase ot cassava as mvohmg considerable effort

and risk

Thus while

cassava IS out performed areas All

the

above

factors

cassava consumption

It

well adapted

IS

to rural consumption.

by almost all other major foodstuffs contribute

to explalnmg

per head found between

m urban

the difference

In

rural and urban areas

For rural consumers who do not produce cassava themselves the situation IS Intermediate they still tace the high margm and the risk of deterloratron. but to a more limited extent since marketing shorter and quicker The emphasis placed Third-World populations

channels are

on cassava m helping to feed expanding based heavily on Its productlon propertles.

IS

but these are outwelghed m urban communities by the marketing problems of fresh roots caused by post-harvest deterioration In the last two decades urbamzatlon

has continued

at a rapid rate m Latin America

(Table 2). hmltmg the mcentlbe to improve cassava cultlvauon for rural commumtles and reducing the advantageous Impact of Improvements Nofe ’ Pnce calone of nce or potato dlwded by pncekalone of cassava OCalones of nce or potatokalones of cassava Sources Lynam and Pachlco op cut. Ref 7 for pnce data For consumptton ligures for Brazil Esfudro Nacronal da Despesa Famrkar, SecretarIa de Planeamlento da Presldencla da Republlca. RIO de Janeiro, 1977 lor Colombia ECIELstudies Broolungs Insbtu\e Washmgton. DC 1978. for Peru P Lizard0 de las Casas Moyas A Theorehcal and Appked Approach Towards the Formulatron ol Attemahve Agncutturat Sector Poke/es ,n Support of the feruvran Agncutturat Plannfng Process PhD thesis. Iowa State Unlverslty. IA, USA 1977, for Venezuela, Longtenn Forecasts of the Supp/y and Demand of Agncuttural and Lwestock Products In Venezuela, Consejo de Bienestar Rural Caracas Venezuela, 1985

FOOD

POLICY

August

1985

Table 10 Relative price and consumption casssva in several Latin American countries

of potatoes

and

rice

Potato Relative price. Braz113 Reclle Sao Paul0 Colombia Barranquilla Bogota Peru Lima Venezuela Caracas

In comparison

with

Rice

Relative consumptior+

Relative price

Relative consumption 130 1150

3 19 2 15

106 8 18

0 66 0 35

1 51 0 85

063 306

0 65 043

57 7 18

1 41

754

0 66

27 0

1 16

1 08

0 20

2 93

271

Lkbrzrr cuw~u murhrrs since the rural suhslstence populations are relatively declmmg An Improvement m the productlon potential of cassaba can only habe a limited Impact on Its urban consumption as a fresh root since only 35”” of the fmal urban price reaches the producer To increase the role of cassava m the nutrrtlon of the urban population of Latin America. a more direct and effective strategv would be to develop a solution to the problem of cassa\a root deterioration In this manner. the marketing margin could be dlmm,shed to the urban consumer

and the attractiveness

of fresh cassala roots

increased

Prevention of post-harvest

root deterioration

There are three aspects to the solution ot the deterloratlon problem One concerns the storage condltlons which prebent the appearance of physlologlcal detenoratlon. the second m\olves the lnhlbltlon of rmcroblal growth and subsequent root rots which can develop during storage and the third relates to the correct handling and selection of roots before storage with the aim of avoiding damaged roots which WIII not store

It IS essential

e\en

for relatively

short-term

storage ot onlv

one week. that all three of these factors are taken mto account Together. they should not add greatly to the costs of marketing and should be simple producers funds

to carry out with mmlmal

capital

of cassava tend to be small farmers

costs because the

with limited

access to

Some high-cost, high-technology storage processes have been developed for cassava which could be useful In the hmlted sphere of export markets. where the high product price would permit higher storage costs Examples of this are paraffin \hax coating of roots developed by IIT In Bogota, Colomblalx and freezing of peeled. parboiled root pieces for supermarket sale However. it there IS a desire to Introduce root storage into the normal fresh operating m Colombia. a simple. Before damage

conslderatlon caused

during

of simple hanest

root marketing chain low-technolog) method storage and

methods,

handling

must

the questron

and mlcroblally-induced

ot

be considered

however effective the storage method may be If broken roots are used the result will InvarIably be poor Both physlologlcal

ds presently IS required

deterloratlons

or damaged tend to be

Initiated at points or regions of Injury and subsequentlv spread to the rest ot the root When roots are separated from the plant, two points of injury are necessarily made one at the distal and one at the proximal end In addition. the bark IS often damaged After harvest. careful handling of roots IS crucial Frequently. roots are piled up mto heaps m the field - sometlmes even thrown, not placed bark easily becomes damaged as roots rub against each other An

The

Improved harvesting and handling process. In which roots were not subjected to the more damaging practices. would be a simple way of reducing the incidence of both types of deterioration without the use of costly Inputs. as well as reducing losses due to broken, damaged roots which dre currentlq unmarketable The percentage of roots suitable for

1B~E Zapata and H Rlveras, Preservaclan de la yuca fresca’, I/T T~c~o&/K+.VOl 115, 1978, pp 9-20. Bogota. Color&la

272

storage would also be increased who are prmclpally subsistence TradItional cassava cultivators. farmers producing cassava for their own c&sumptlon. avoid the deterioration problem by harvesting a few plants at a time as needed Where root storage IS required after harvest. the usual practice IS to

FOOD POLICY August 1985

rebury

the roots m a trench.

unrehable

coverlng

because of the dependence

them with so11 This

on local envlronmental

IS

rather

condltlons

and does not seem to be In wldespread use I9 In a TDRIKIAT project this reburlal method uas Improved through the use of a straw lining. ventilation pipes and a drainage ditch This worked well In less extreme tropical climates. but when temperatures Inside the -field clamp’ structure exceeded 10°C. losses from mlcroblal rotting were conslderable “’ The method has not been adopted on d commercial basis. because In addition to rts relatrke unrellabllq. It does not solve the problem transported

of marketing

fresh cassaba. since roots cannot be

during storage

The rebunal. or field clamp. method relies tor Its success on the natural wound repair processes which the root Itself mltlates gILen the right condltlons namely high temperature (higher than 30°C) and high relative humrdlty (higher than SS’%) ‘I The root lays down a protectrbe barrier over any Injured tissues. effectlbely preventing moisture loss and air entry Into the root This takes approximately fl\e days dnd completely Inhibits the mltlatlon of the reactions producing physlologlcal detenoratlon. as well as provldmg a barrier against pathogen access to the starch substrate however,

of the root Interior

be completely

effective

This curing process cannot.

If the amount of damage

IS

too gredt

hence the Importance of root selectlon prior to storage Unfortunately the condltlons needed to obtain tast curing are also fa\ourable for the growth of mlcroorgamsms Despite the phvslcal barrier laid down over damaged areas. post-hat-lest root rots can rapidly develop

A method of controlling

any method m which root curing The prevention of physIologIcal used m the development technology Inputs which marketing “J S Ingram and JR 0 Humphrres, Cassava storage a revfew’, Troprcar Saence. Vol 14, 1972, pp 131-148, JE Rlckard and D G Coursey, Cassava storage. Part I, storage of fresh cassava roots , T;op/ca/ Sc/encey Vol 23, 1981, pp l-32 20R H Booth Storaae of fresh cassava (Manhot escufenta), II Simple storage techniques’, Expenmental Agrrcufture, Vol 13, 1977, pp 119-128 * ’ /b/d *‘/b/d *%I H Booth, T S de Buckle, 0 S Cardenas, G Gomez and E Hervas, Changes n quakty of cassava roots during storage’, Journal of Food Technology, Vol 11, 1976, pp 245-264 24D D Oudlt, Polythene bags keep cassava tubers fresh for several weeks at ambient temperature , Journal of the Agncultural Society, Trrnrdad and Tobago, Vol 78, 1976. pp 63-66, J C Lozano, J H Cock and J CastaAo, New advances In cassava storage’, n T Breckelbaum, A Bellottl and J C Lozano. eds, Proceedmgs of the Cassava Protecbon Workshop, CIAT, Call, Colombia, 1978, pp 136-142, CIAT. Annual Report, CIAT, Call. Colombia, 1982 *% C Wheatley, unpubkshed matenal

FOOD

POLICY

August

1985

smce.

used deteriordtion

be integrated

Into

bv root curing has been

of two simple storage systems with lowdo seem to be suitable for fresh cassava

unlike

the previous

possible during transport In the first system,‘”

this must theretore IS

systems mentioned.

and marketing

storage

IS

operations

roots were stored In wooden

boves pached with

moist sawdust or other locally available materials Roots could be stored successfully for from SIX to eight weeks and were ot an acceptable quality for both human and animal consumption

” They did, however,

hate a slightly sweeter taste caused by a breakdown of the root starch to sugars However transport costs are relativeI> high since box and packing material must also be transported suitable for high-value export markets onl)

This

method

appears

More recently. trials of roots stored m plastic bags ha\e proLed successful ‘-l The microclimate inside the bdg IS Ideal for root curing the roots themselves

rapidly generate sufficient

er. a fungicide application growth of microorganisms

heat and humidity

prior to storage If no applications

rot only five to seven days after harvest

Ho\\ev-

IS

necessary to Inhibit the are mdde roots begin to

Ot course.

It

IS

necessarv to

ensure that any funglclde used does not leave toxic residues In the interior of the root although this IS unlikely gilen the thickness ot the peel layer Given good control of the mlcroblal rotting problem, storage times of two to three weeks with losses of less than 5% or only 1% after one week. are readily obtainable ” Roots maintain a fresh appearance both internally and externally altered. although there

IS

and taste and texture after bollmg are not a tendency for roots to taste sweeter after

273

Supplv old SuPPlY new

more than two \\eeks ot storage ns the root sugar content Increases slIghtI) Neither the amount of roots pached per bag. nor the hag thickness or colour has any etfect It IS. however. Important that roots should be packed within phvslologlcal deterioration etfectlve

Root

treatment

for this deadline Demand

three hours of harvest to start and curing and packing

A longer delay allows thus not completeI\

IS

must be carried

out In the tleld

to be met

Plastic-hag storage has adbdntdges pre\louslk It IS the best adapted marketing

system

kilogram) flexlhlllt!,

and chemicdl treatment ot the marketing chain

With

oler for

the additional

the other methods mentioned Integration Into the current

costs of plastic

bags (US$O 01 d

(USQJ 01 d kllogrdm) 15 great11 Improved

storage time made teaslble by this method 1s more ellmlnate the prohlems ot marhetlng fresh cassd\~~

the trddltlonal The tHo Meek

than

adequate

to

Expected benefits from cassava storage technology

1

bI1



Dmand old

OUllllllV

Figure 2 Effects of successful detenoratlon research on socloeconomlc benefits (I) Decrease in the marketing margin and subsequent shift of supply function traditional case of socloeconomlc benefits

(II) Increase In the willingness to pay because of improved quality and decrease in the marketing margin and subsequent shift of supply function non-traditional case of socioeconomic benefits

Ellmlnatmg

deterioration

the storage

technology

First. the pressure IimItation ot traded storage technology traders can transfer

ot cas5aLa In the tresh market discussed

ahoae

HIII basIcall\

marhetlng

the cost ot commerclallzatlon \\III decrease Thus back the fIndI demand at a lower cost and assummg

margin

for

cassavrl

maxImum reduction of this marhetlng 1JS$O 13. close to the mdrhetlng margin but non-perlshahle

use ot

on the market channel for quick handling ‘lnd Lolumes HIII be relle\ed As d consequence ot

open access to cassavd trading the marketing margin should lead to Increased consumption (see Figure :(I)) 1982 the

through

have two etfects

crop)

Taking

\\as

would tall This In Colomhla In

US$O 30 a kilogram

mxgm \\ould be to of potatoes (a slmllarlq

Into account

A about bulk\

the cost ot the developed

storage techniques (estimated at US$O 02 a kilogram) lahour costs It would be more reasonable to s\pect

plus \ome extra margins bet\\een

US$O 18 and 0 73 Second Improbed

the quality of cassatd as a consumer commodlt! WIII he It deterioration can be prevented a constant a\allablhty In

the marhet place IS more edsll] guaranteed The risk of perlshablhtg at home \\III be small and no special Items like refrigerators ~111 be needed Waste due to deterloratlon de\eloplng between to store cdssa\d purchase

and tood preparation

will be reduced

Purchasing

costs \\III tall

since the necessltv to hub fresh roots e\erj da! UIII disappear In this cassaba Hould become a more nttractl\e toodstuff for urban \\ay consumers \\ho would be wllhng to pas more tor It (Figure I) Although

almost

of ‘1 product

all research

tends to Influence

but also the qunllt!.

estimates

not only

ot this effect

the avaIlabIlIty are rare

Consumer \\llhngness to pa] more for storable cassa\d IS dltflcult to measure et mte because ot the highly abstract nature ot the question and the dlfhcult!, for the consumer fall In costs on cassaba consumption

of making ‘1 reliable estimate ot the Instedd three different Lalues ha\e

been estimated for the Increase In the ullhngness to pay (WNP) a zero Increase. ImplyIng no gro\\th In the WNP (le the benefits calculation In Its tradltlonal torm). a US$O 05 a hologram Increase. equal to a 10’0 Increase In WNP. and a US$O 10 Increase. equal to a Wb increase m WNP The modest US$O 05 Increase IS probably the best of these estimates The benefits

274

of successful storage

technology

FOOD

were estimated

POLICY

August

with

1985

surplus

economic

people

theory

were hvlng

deterloratlon



In

1982 III Colombia

m towns of over

could

The consumption

almost

100 000 people.”

have conslderable

effect

15 mllhon

% here reduction

on the marhetmg

of cassava In these towns

was estimated

ot

margm

at 10 kg per

capita (40% down from the 1970 estimate) The price elastlcltv of demand was estimated at -0 88. the average ot the tao v,jlues mentioned before Values of 0 S and 1 0 for the price elastlcq of supply were assumed ” Other assumptions were linear demand and supply functions. a perfectly elastic suppI> of marketing ser\lces and a parallel shift In final demand and supply function through the apphcatlon of storage technology With these assumptions and using the method of Freebairn.

Davis

technology

for the fresh market

and 28 mllhon 26M Curry, A Murphy and A Schmidt, The concept of economic surplus and 11s use In economic analysis , The Economic Journal, Vol 81, 1971, pp 741-799. R D Wllllg, Consumer’s surplus wlthout apology’. The Amencan Economic Review, Vol 66, 1976. pp 58S597 27F N M Hulsbosch, Colombra, Koninklijk lnstltuut Voor de Tropen Amsterdam, 1981, 77 pp 28A Pastore A oferta de productos agncolas no Brazil , Pesqursa e Planelamento Vol 1, 1971, pp 171-234 *%V Freebairn S Davis and G W Edwards, Dlstnbutlon of research gains In multistage production systems , Amencan Journal of Agncultural Economrcs, Vol 64, 1982, pp 39-46

and

Edwards.‘”

per year (Table

the

Prices

between

US$O 45 and US$O 39 a kilogram

level)

Farm-level

consumer

In Latm America times greater than

level

prices would

to between US.%0 29 and prices at farm lebel)

successful

storage

be between

US$ 19

areas would Increase from 11. Projected consumption

capita) retail

the

ot

would

11)

Consumption per head m the urban to between 11 3 and 12 3 kg (Table at

benefits

of Colombia

\bould

tall

(Table

increase

trom

10 kg per

US$O 17 to

11 Projected

prices at

from an aLerage

US$O 17

LJS$O 2-I a kilogram

(T,lble

as a whole fresh consumption that In Colombia alone The

11, Projected

of cassava IS seven Import,mce of rural

versus urban consumptron IS similar to that of Colombia (Table 4) A rough estimate of total benefits for Latin Amerlcd of cassava detenoratlon

research

between Colombia

then

should

be seven

times

the figure

for

Colombia.

US$133 and 189 mllhon per year If the assumptions hold for Latin America m general

Table 11 Effect of successful cassava-deterioration

made

research m Colombia

Price elaatwly of supply 05 Margin decwaes to 0 18 023

Pnce elasklty of supply 10 Margm decreases to 0 16 023

Expected benehts (mrhon US&year) Wlllmgness to pay (WNP)

0 +lO% +20%

1669 27 42 36 35

1074 1669 27 42

19 17 27 99 3731

consumer benefits = 59 7% producer benefrts = 40 3% Propcted

W’W

COnSUmptlOn

+o + 10% +20%

per Caprta (present consumptfon 11 29 11 a2 1235

1064 19 17 27 99

consumer benefrts = 74 6% producer benellts = 25 2%

= 10 kg)

10 76 11 29 I 1 82

11 60 1226 1293

1094 11 60 1226

0 38 039 041

0 42 043 0 44

0 20 021 023

0 19 020 0.21

Projactad prrces at retart level (present retarl prrce = lJS$O 47) (WNP)

+o + 10% + 20%

0 40 0 42 044

043 045 047

Pro)ectad prrces at farm level (present farm puce = U.S$O 17) W’JP) Note Most reasonably to be expected values are underlmed

FOOD POLICY August

1985

to +10?6 +20%.

0 22 0 24 026

0 20 0 22 024

le

for

Urban ~(US~LYI marhers

Strategy for increasing

urban availability

of cassava

Previous sections of this paper show that storage technology could hale conslderable Impact on the urban fresh cassa\a market Another. production-onentated (yield mcreasmg) strategy \\ould also be eypetted to habe Impact on cassaba consumption In urban area\ Yield Increases of 679/o were estimated to benefit Colombia bq approxImateI! US$5 mllhon per year “’ An addmonal benefit of around US.V mllllon would be produced m the ammal feed market Thus. the expected value of storage technology could be four to hve time\ that ot productlonorientated technology In Colombia In order

to compare

technological

the relative

strategies.

to be assessed

advantages

of these two different

the cost of their successful Introduction

Basically.

two major

cost components

needs

can be dlstlng-

unshed the research cost of deslgnmg appropriate technology and the cost mvolved m the actual mtroductlon of this technologv In the speclflc region under conslderatlon Development of appropriate technology for yield-IncreasIng research requires the ldentlflcatlon of high-yleldmg, good quality cassava varletles Integrated m a package of agricultural prepardtlon. fertlhzatlon and weed control) yleldmg cassava varletles

1s highly complex,

lty ot the dlfterent varieties The technological package IS therefore because of the generally programmes

A simple

given the reglonal speclflc-

development a long-term

poor development practical

practices (such ds ldnd Identlflcatlon ot highof dn appropriate actlvltv especIalI\

ot natlonal cassava research

storage

method

hag already

been

developed and tested. with only mmor factors (such as bdg size and optimum harvest procedures) still to be determlned Storage technology has given stable

results over different

emlronments.

except

for the

socloeconomlc factors m\olved Thus. from d resenrch pomt ot view reglonally-adapted storage technology ~‘111be tar easier to develop than productlklty Improvements Once appropriate forms of technology have been developed and tested. lntroductlon mto the target region can commence Since almost e\ery

Latm American

ful agricultural

developing

extension

servlce,

country operates a relatively successthe adoptlon ot adequate lmproced

productlon technology can occur through alread! estabhshed channels ConsIderable evperlence with the lntroductlon of agricultural lmprovements IS dvallable.

suggesting that such new productlon

technology

w11l

be dlssemmated rather easily though perhaps slowI!, to the user To Introduce storage technology however new adoption strategies must be used The technology hds to be accepted by small farmers dnd trdders Whereas the hrst group can be reached through the extension serklce. traders might be dlfflcult to approach Thev are Lery rarely dctlvely Involved m development programmes ,Ind are otten SUSPICIOUS of dn> Instltutlonal actlon However. their adoptlon of storage technolog! WIII crItIcally depend on the acceptance of stored cclssdla b> the fmal consumer For the flnal consumer,

30Pach!coet al, op at, Ref 15

276

storage technology m pla\tlc bags WIII change At present consumers are used to the appearance of the product purchasmg unpacked cassava often cut open as an mdlcatlon of an undeterlorated state Adoptlon of storage technologv WIII necessitate purchase of roots m a plastic bag. preferably Intact Consumers dlso have to become aware that storage of cassava at home IS possible If roots

FOOD

POLICY

August

1985

are kept mslde the bag (bags must be resealed after removal of part of the contents) The coordinated

and simultaneous

demonstration

and mtroductlon

of

storage technology to farmers, traders. retailers and consumers will be necessary The use of consumer panels wtll enable the acceptablhty of stored roots to be judged and WIII provide a means of makmg consumers product’ In-store experiments ~111sene the same On-farm demonbtratlons ot the purpose for traders and retailers storage technology WIII enable farmer interest to be gauged Com-

aware of this new

mumcatlon

between

the different

test groups

will

be Important

m

ensuring that the technology IS adopted (traders WIII be aware ot consumer wllllngness to buy and of farmer ~lll~ngncss to supply stored roots) InformatIon

must also reach the general

urban consumer.

prohabl>

through the use of leaflets dnd the mass media this WIII have marked slmllarltles with a commercial product-release campaign rather thdn the usual low profile market structure directed

of mo\t development projects. normall} dlrected to improvement Personnel resources WIII ha\e to be

mto non-traditional

experience Thus, although

technology

areas where government development

and testing

lower for storage research than for productlon and market acceptablhty might well be shorter comparable

costs WIII be higher than for production

with normal

Industrial

mstltutlons

research.

costs will

product-adoption

be

the extension

The mtroductlon technology.

lack

lead time

perhaps

being

lead time of two

years 31 Improvements m storage technology will have d greater Impact on the urban avallablllty of fresh cassava than HIII productlon-orientated technology The marketing approach required to achieve the adoption of this storage technology demands the use of uncon\entlonal development

3’P Kotler, Markebng Management Analysis, Plannmg and Control, Prentice Hall, Englewood CMfs, NJ, USA, 1976

FOOD

POLICY

August

1985

models

Subsequently.

Jleld

related

technology.

uhtch

has a

longer lead time. WIII further Improbe tresh cassava supplies at reduced costs In urban areas A combmatlon of these two- complementary research and development strategies should maxlmlze the contrlbutlon of fresh cassava to Improved

urban nutrltlon

277