Cassava Crisis: Farmers Struggle as Prices Crash, Factories Shut Down
- Cassava farmers are facing heavy losses due to an oversupply in the market, caused by reduced demand and the influx of cheaper imported alternatives
- Prices of cassava have crashed drastically, forcing many farmers to sell below cost, while several processing factories have either scaled down or shut down
- Stakeholders have urged the government to address unfavourable policies and support local processors and the entire cassava industry
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Cassava farmers and stakeholders in Nigeria’s agriculture sector are worried about a serious oversupply affecting the cassava market.
This glut has caused several processing factories to shut down and left many farmers facing big financial losses.
Source: UGC
Earlier this year, experts had warned about a possible oversupply in the cassava value chain and advised farmers to avoid overpricing, but the warning went largely unheeded.
By that time, some processors were already struggling with too much stock of cassava flour and starch that they couldn’t sell, forcing them to reduce or stop production.
Cheaper imports undercut local cassava products
The drop in demand was mainly because buyers had turned to cheaper imported alternatives like corn starch, which had zero import duty.
While cassava starch costs around N1,000,000 to N1,200,000 per ton due to high production costs, corn starch dropped to about N800,000, making it the preferred option.
This situation pushed cassava prices down sharply. Farmers who previously sold a pickup van load of cassava for between N300,000 and N500,000 now struggle to sell for N70,000 to N100,000.
Farmers’ struggles and predictions for price recovery
In Ogun State, farmer Yinka Idowu said many farmers regret planting cassava last year because they are now selling at a loss. He believes the price will stay low through 2025 but may rise again by 2027 or 2028.
He advised that only strategic farmers will benefit by planting this year and next, when fewer people are farming cassava.
Kazeem Lamidi, a cassava processor from Ogun and Oyo States, explained that cassava supply from Oyo State has a strong effect on market prices across Nigeria.
Since February 2025, Oyo has seen a major oversupply, and even the steady demand for garri and fufu couldn’t absorb it. This caused prices to collapse nationwide.
Glimmers of hope amid market crisis
There was some hope in May when an ethanol company in North Central Nigeria resumed buying cassava chips, causing a slight price increase.
In addition, news that buyers from Ghana were interested in purchasing 1,000 tons of chips raised expectations.
However, the rainy season made sun-drying of cassava chips difficult, leading to a shortage of dry chips despite the abundance of tubers.
Source: UGC
Calls for government intervention
Lamidi criticised the Nigerian government's policies for favouring cheap imports over supporting local industries.
Many processors are idle not because of a lack of demand, but because their buyers now prefer cheaper imported alternatives.
He warned that unless the government steps in to protect local processors and reverse harmful policies, the future of cassava farming and processing in Nigeria may depend on exports to stay afloat.
Nigerian priest celebrates bumper cassava harvest
Meanwhile, Legit.ng earlier reported how a Catholic priest in Nigeria, known as Father Kay, took to social media to share his joy after a bumper harvest on his farm.
The cleric, who cultivates cassava, revealed that his recent harvest yielded 15 bags of the crop.
Photos posted on Facebook showed the freshly dug cassava neatly packed into numerous bags, reflecting the rewards of his dedication and hard work on the farm.
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Source: Legit.ng
