Supply Chain Management

The main objective of each cassava processing operation is to establish a sustainable and profitable business, which at the same time helps to improve the income position of the farmers. DADTCO uses an integrated supply chain model based on collaboration with different local stakeholders to assist farmers in the transformation from subsistence to commercial farming. Typically in Africa a smallholder farmer will have 1-2 hectares of land. Of this land roughly one third is devoted to cassava. The average yields of the farmers range between the 7 and 10 tons per ha per annum (but some cycle times may be longer than 12 months). Our typical farmer with 2 hectares and achieving a yield of 10 tons per hectare will therefore produce about 6.6 tons of cassava roots. Assuming that he/she keeps 50 % for own consumption, this leaves approximately 3.3 tons per annum per farmer for marketing. DADTCO’s Mobile Starch Factory running on two shifts processes about 24,000 tons of roots per year for which about 7,000 smallholder farmers are required to supply the roots. Per day about 20 to 25 farmers are organized by our highly trained supply chain team that ensures farmers are identified and the roots are harvested and delivered in time.

 

 

DADTCO's Model

The model DADTCO uses at the moment is a direct collaboration with smallholder farmers through the local structure of traditional leaders and administrative authorities. This model is carried out as follows:

  1. Awareness creation and meetings with local leaders, chiefs and administrators in the areas identified.
  2. Organizing farmer sessions at community level to exchange information with the farmers on their expectations, our way of working, agricultural program and cassava purchases.
  3. Identification of farmers and pre-assessment of available quantities of cassava per farmer (GPS and random uprooting of cassava) and handing out local purchase orders (LPOs).
  4. Planning the purchase of cassava roots, transport arrangements through LPOs.
  5. Registration of the farmers in the database upon delivery for monitoring purposes.
  6. Cash payment.
  7. The issuing of a DADTCO ID card to each farmer with a barcode for track & trace
  8.  The issuing of a purchase guarantee for next year to incentivise farmers to start planting cassava again and to be able to plan the cassava harvest for next year for that area.
  9. Information sharing with the agricultural NGO’s, to make sure that an agricultural program starts with DADTCO farmers after the AMPU leaves the area. The program entails: the distribution of disease free improved plant material, improved planting techniques and introduction of cassava specific fertilizers.

The program is carried out by our trained supply chain team consisting of a supply chain manager, an assistant manager and six to ten mobilizers for each Mobile Starch Plant.