ACTIVITIES OF CALTECH VENTURES ACTIVITIES OF CALTECH VENTURES LIMITED IN THE CASSAVA INDUSTRY IN LIMITED IN THE CASSAVA INDUSTRY IN

GHANA GHANA

PRESENTED BY: BEN BENTIL

WORKSHOP ORGANISED BY IFAD

GOLDEN TULIP HOTEL, ACCRA

DATE: 18TH -19TH OCTOBER, 2010

OUTLINE OF OUTLINE OF PRESENTATIONPRESENTATIONINTRODUCTIONOBJECTIVES OF CALTECHJUSTIFICATION STRATEGY OF IMPLEMENTATIONCASSAVA PROCESSINGQUALITY PARAMETERS OF FRESH

CASSAVA ROOTS.COLLABORATIONSFINANCIAL IMPLICATIONS ON

FARMERSFUTURE PLANS

A.A.INTRODUCTIONINTRODUCTION

• Caltech is a Limited liability company

• Incorporated in 2006

• Head office Accra (Spintex Rd)

• Farm operational area: Ho; Volta Region, about 170km from Accra

OBJECTIVES OF CALTECHOBJECTIVES OF CALTECH

To establish a 30,000 Lit per day ethanol production facility in Ghana(Medium term)

To Produce biodiesel to fuel the companies farm machines

To Produce starch

To Produce other cassava based food product for local market

To Produce HQCF

C. JUSTIFICATION FOR THE PROJECT

Caltech/Banket Ltd is one of the biggest buyers/seller of extra neutral ethanol.

Ethanol purchases for the last 3 years:

Purchases QTY(Lits) Av. Buying Av.Selling Price Price 2007 7.2 million $0.70/lit $0.82/lit

2008 8.0 million $0.80/lit $0.92/lit

2009 7.0 million $0.82/lit $0.97/lit

Available marketAvailability of land in the Volta Region.Good agro-climatic conditionsGovernment interventions in cassava programme ie PSIExcellent research result on cassava and soya cultivation

D. D. STRATEGIES OF IMPLEMENTATION STRATEGIES OF IMPLEMENTATION Acquisition of 3,000 Ha of land in the

Volta Region.Division of land into farm blocks of

100 Ha each (easy mgt)Soybean considered as fallow crop

and intercrop. -Rhizobacteriuin japanicum Nodulation -Nitrogen fixation Soybean oil - BiodieselSoybean cake – Animal feed millers.Registration and support for out

growers (Block farmers) and farm families.

E. E. PRESENT LEVEL OF OPERATION PRESENT LEVEL OF OPERATION CASSAVA:

Nucleus farm = 800 HaOut growers/farm families (165)

= 330 HaBlock farmers (10) = 50 Ha

TOTAL 1,180 Ha

SOYBEAN-2 CROPS PER YEAR Nucleus farm - fallow crop – 349 Ha -Inter crop – 80 HaOut growers/Block farmers (10) – 40 Ha PROCESSING

COMMODITIES SHORT TERM MEDIUM TERM

.Ethanol __ 30,000Lit/day

.HQCF 10 tons/day 15 tons/day

.Starch __ 20 tons/day

.Biodiesel 400 lits/day 800 lits/day

.Dough 6 tons/day __

.Pressed Cake 4 tons/day __

QUALITY PARAMETERS OF FRESHQUALITY PARAMETERS OF FRESH CASSAVA TUBER DELIVERIES CASSAVA TUBER DELIVERIES

Uproot mature plant (10-12 months maturity)

Deliver freshly harvested roots

Stalk neatly removed

No sign of deterioration

Relatively high starch content

Roots should have intact skin and cortex.

COLLABRATIONSCOLLABRATIONS

Caltech Ventures Ltd

CLAYUCACIATEMBRAPA

CRI (CSIR)UNIVERSITIES

IITA

FINANCIAL IMPLICATIONS ON FINANCIAL IMPLICATIONS ON OUT GROWERS AND BLOCK FARMERSOUT GROWERS AND BLOCK FARMERS

Crop Cost of Yield Buying Gross Net income production/ (tons) Price/ton Income/ Per Ha Ha Ha

Cassava $465 20 $36 $720 $255

Soybean $300 2 $285 $570 $270

Investment in children’s educationPurchase of building materialsEmployment opportunities

FUTURE PLANSFUTURE PLANS

OUTGROWERS/BLOCKFARMERS:

Cover 6 more district in Volta Region; 1500 farmers in 100 communities.

To cultivate cassava and produce chips for Caltech (150 tons/Day)

Nucleus farm – Block farms (500 farm families)

Expected Returns = $1500/Farmer/Year

CALTECH (PROCESSING)• Ethanol = 55,000 Lits/Day• Biodiesel =1000 Lits/Day• HQCF/Starch = 20 tons/Day

THANK YOUTHANK YOU