2008

Cassava Flour The Minister of State for Commerce and Industry, Ahmed Garba Bichi has observed that the capacity utilization in the food, beverage and tobacco sub-sector of the manufacturing sector is now peaking at 50 per cent making it the most developed in economy. The rating was disclosed at a forum where Bichi noted that the sub sector diversified into many industries which produce cereals, flour and bakery products, animal feeds, fruits and vegetables, meats, fish sugar confectionaries and others. The Minister said “while these groups achieved a capacity utilization of 50 per cent between 2004 t0 2006, others such as textiles, wearing apparel and leather, chemical and pharmaceuticals and motor vehicles recorded a capacity utilization less than 50 per cent.”Capacity utilization is the rate at which manufacturing companies are able to use their raw materials in the installed capacity for production. Besides the manufactured finished goods, the sub sector is presently attracting investment into the production of intermediate inputs such as cassava derivatives like chips, adhesives gums glucose syrup, fruit juice concentrates, soyabeans and groundnut, in order to process farm produce to the specific needs of finished products manufacturers. The food and beverage and tobacco sub sector along with related sub sectors in the agro allied industry have recorded steady growth capacity utilization in the manufacturing sector in recent times. The Minster added further that even at its present state, a lot of investment still exists in the sub sector due to Nigerians’ comparative advantage and potential for production of all primary raw materials required in the sub sector and apparent shortage of capacity to meet the demands of existing industries.