**4. Cassava agro-industries from upstream to downstream**

The developed agricultural product processing industries based on local resources ranging from home industries to large industries, as well as regional core competencies is one of the ideals of the Indonesian industry, with the expectation that the potential of each region can be optimally utilized and does not depend on imports. Thus, there will be no more inequality because each region is able to develop its industries. Well-managed industries in each region will further strengthen the structure of national manufacturing industries [30].

Cassava is very well-known by farmers in Indonesia and can be planted easily in all regions in Indonesia even though the soil fertility is low. Cassava is also very flexible in farming and harvesting age, resistant to biotic and abiotic stresses, and can produce well in a sub-optimal environment compared to other food crops. Furthermore, with the advances in agricultural technology, cassava productivity can be increased to 100% of the average farmer productivity. Thus, it becomes great opportunity for the development of a bioindustry based on cassava.

Cassava is the daily staple food consumed by households and most of it is obtained from their farm themselves. Cassava has proven to be suitable for local agricultural and food systems and becoming a major food crop in some areas. Therefore, cassava should be promoted to maintain and even increase its productivity and to ensure that households can maintain their dietary pattern and livelihoods. Policies to support cassava production and processing, as well as to promote the availability of cassava products in the market can contribute to improving rural food security, especially during climate change [31].

The food diversification program aims to utilize various local food sources, such as cassava, corn, sweet potatoes, sago, and others. However, currently what has happened is wheat consumption experiencing a significant increasing trend and there is a diversification of wheat flour-based food products, which results in the increase in wheat flour imports to Indonesia. Wheat flour contributes 20% of total food consumption in Indonesia. The value of wheat flour imports reached more than IDR 30 trillion, even higher than the budget value of the Ministry of Agriculture of IDR 27 trillion. Moreover, wheat flour is the only agricultural commodity with 0% imported tax. Therefore, for reducing wheat flour and its derivatives consumption, it is necessary to develop local food diversification which has a higher substitution value [32].

The quality of cassava from Indonesia in terms of moisture content and starch color intensity is better than that from Thailand and Vietnam, so that when converted into modified cassava starch, the moisture content of starch is lower and the starch is brighter [26]. Cassava has the potential to be developed as a raw material for the carbohydrate-based food industry. Efforts for cassava utilization as a buffer for food security include the development of cassava flour. In addition to extending the shelf life of the product, the purpose of flour production is also that the product is more preferred by consumers, and with cassava flour derivatives into modified cassava flour (mocaf), the physicochemical properties of cassava flour will increase, so that

*Prospects of Cassava Development in Indonesia in Supporting Global Food Availability in Future DOI: http://dx.doi.org/10.5772/intechopen.106241*

it is suitable for a wheat flour substitute in processed food products, such as cakes, bread, and noodles [33].

Starch in cassava can be used as raw material and adhesive in textile, paper, and certain confectionery industries [34, 35]. The use of α-amylase and amyloglucosidase in the hydrolysis of starch in cassava peels allow the fermentation process for the production of alcoholic beverages, vinegar, and bioethanol, and becomes an added value for the utilization of cassava wastes mainly from starch production [36, 37].

The development of cassava production provides a competitive industrial system, such as cheap raw material, easy to plant, and wide growth ability (both on fertile and marginal land), so that cassava products will create new business opportunities and increase farmers' welfare. However, supporting institutions for cassava farming systems for industrial purposes have not been well organized. The development of cassava-based agro-industries can be carried out from home-scale to large-scale industries. Several cassava-based industries of various scales, including chips, driedslice cassava (*gaplek*), and dried-shredded cassava (*sawut*) can be established in the upstream industrial sector and create partnership activities with cassava farmers. Besides food and feed utilization, cassava can be developed as a raw material for bioethanol. Bioethanol is an alternative energy source for fuel and is carried out on large-scale industries [26].

Therefore, in developing a food diversification program to support food security, cassava is one of the food crop commodities that has an important role to support the program. Cassava production has great potential to be increased and the tubers can be processed into various products that can encourage the development of the agro-industry.

Based on the cassava industry tree (**Figure 2**), there are 28 cassava products and about 80% of them are for non-food purposes [38], and the rest of 10–20% are for food purposes (staple food, intermediate, and end-products). Preferences of cassava as industrial raw material has not well-known yet by farmers; while many cassava varieties have characteristics and specifications, which are suitable for industrial purposes. For instance, cassava with good taste for food industries, high biomass for

**Figure 2.** *Cassava industrial tree (Source: [38]).*


#### **Table 4.**

*Improved cassava varieties suitable for food and industrial raw materials.*

*Prospects of Cassava Development in Indonesia in Supporting Global Food Availability in Future DOI: http://dx.doi.org/10.5772/intechopen.106241*

feed industries, high starch content for ethanol industries, and many others have not been identified yet. To increase cassava productivity, it is necessary to apply improved varieties and cultivation technologies that are adaptive for each cassava-producing area, and suitable for product utilization.

From 1978–2015, about 12 improved varieties of cassava have been released by the Indonesian Agency for Agricultural Research and Development (IAARD), including Adira 1, Adira 2, Adira 4, Malang 1, Malang 2, Darul Hidayah, UJ 3, UJ 5, Malang 4, Malang 6, Litbang UK 2, and UK 1 Agritan with the yield >30 tons/ha [14]. Therefore, to suppress the yield gaps in farming level can be done by planting those IAARD's high-yielding varieties.

Among production technology components, improved varieties have important and strategic roles due to they are essential for increasing crop productivity. As mentioned before that for food purposes, the improved cassava varieties with good taste, fluffier, and low HCN content, such as Adira 1, Malang 1, Malang 2, and Darul Hidayah are suitable. While the improved cassava varieties are suitable for industrial raw materials producing flour and starch should have high yield, high dry matter, and starch content. The HCN content is not a requirement of cassava for industrial raw material because most of it will be lost in washing, heating, and drying processes. Several improved varieties that are suitable for industrial raw materials, including Adira 4, Malang 6, UJ 3, UJ 5, and Malang 4 varieties, which have been well-known and planted by farmers [39]. While Litbang UK 2 variety has potential as a biofuel due to its high ethanol content. The potential yield of 96% bioethanol of Litbang UK 2 is 144,72 l/ha [40]. **Table 4** describes the improved cassava varieties released by the IAARD for the utilization of food and industrial raw materials.

In the downstream industrial sector, cassava-based agro-industry aims to increase the added value of cassava by processing the commodity into various high-value products. Various cassava-based products (intermediate and end-products) have been produced, both in small-scale industries with simple equipment and large-scale with modern machinery [42]. Tapioca as a cassava intermediate product, has been growing rapidly in Indonesia. In recent years, agro-industry modified cassava flour (mocaf) has also been started [43]. Several agro-industries produce cassava end-products, such as cakes, chips, brownies, traditional sweets (*dodol*), fermented cassava (*tape* or tapai), and so on. In addition, cassava processing wastes or by-products can also be processed into fertilizer, especially for plantation crops and the cassava peels can be processed into animal feed [43].

### **5. Cassava value chain for agro-industry**

The importance of agricultural sectors strengthened by the integration among related sectors from upstream to downstream can increase regional economy, absorb labor, and equalize regional development, which leads to an increase in community welfare, as well as strengthen the national economy. It can be realized by increasing the role in the value chain, whereby adding activities and the ability to increase product value will provide independence for the regions producing agricultural commodities. The goal is that the region is not only an object of development but is able to become a subject due to the ability to process and market agricultural commodities independently. According to Kaplinsky and Morris (in [44]), a value chain consisting of various actors (main producers, processors, traders, and service providers) can be established if all actors at the chain work in such a way to maximize the value along the chain.

The structure of the cassava value chain ideally includes five elements, namely, end market (consumer) opportunities, supportive business environment, vertical relationships, horizontal relationships, and supporting markets. If these five elements work properly, marketing costs can be streamlined and can improve coordination [45]. Meanwhile, in terms of marketing, the lack of access to information on prices and goods, which are mostly controlled by brokers and wholesalers, uneven road access, and the inability of farmers to diversify cassava commodities have caused farmers to not have a competitive advantage. In addition, too many actors are involved from cassava production to marketing, including traders from inside and outside region, brokers or middlemen, and wholesalers, causing the unstable price of cassava. Therefore, strengthening the cassava value chain and trading system are very important, so that it will be able to improve the bargaining position of farmers.

The impact of cassava economy improvement will be widespread and involve many stakeholders. The biggest stakeholders are cassava farmers and small-scale processors in rural areas. Middle-upper industries and middlemen have an important role to play in enhancing future linkages. The demand for cassava-based processed products plays an important and effective role as an economy driver. Unfortunately, not all rural farming communities can develop toward a value-added improvement orientation. The rural agro-industry or bio-industry is still lagging behind, causing the added value to flow out of the region [46].

Study of value chain for cassava based on observations and desk study to its actors in Indonesia resulted in three models of cassava supply chain [47, 48], that is, (I) direct sale of cassava fresh tubers, (II) cassava tubers for food, and (III) tapioca starch. **Figure 3** depicts the schematic diagrams for the three models. The simplest supply chain model is the direct sale of cassava fresh tuber to consumers (Model I). This model involves three actors, namely, farmers, retailers or small traders, and consumers. Small traders act as middlemen between farmers and consumers. In Model I, cassava has low economic value due to there is no further product transformation, and fresh tubers are only used for direct consumption or for animal feed. Model II

**Figure 3.** *Cassava value chain (Source : [47, 48]).*

#### *Prospects of Cassava Development in Indonesia in Supporting Global Food Availability in Future DOI: http://dx.doi.org/10.5772/intechopen.106241*

involves four actors, namely, farmers as cassava suppliers, middlemen as collectors of cassava from farmers, processors who sometimes also act as food vendors for their cassava products to consumers, and consumers as the users of the end-product. In Model II, there is a slight increase in cassava's economic value due to it has undergone further processing. The last existing model is Model III, which is the most complex supply chain of all existing supply chains. There are eight actors involved in Model III, namely, farmers, traders (middlemen), tapioca industries, distributors, retailers, consumers, snack industries, and cattlemen. In this supply chain model, cassava undergoes the highest product transformation and the highest economic value.

The reality of the current yield of cassava in Indonesia is cultivated by farmers in marginal land with small land ownership area, poor transportation facilities, and the majority of the yield is used for direct consumption or snack (70–80%). Meanwhile, based on the utilization of industrial trees, cassava is widely used for non-food raw materials for strategic industries (**Figure 2**). So, there is a lack of raw materials supply for non-food products. The non-food industries are only supplied by large industries engaged in the cassava business and about 10–15% by cassava farmers around the industrial locations with easy transportation facilities. Thus, in general, the cassava value chain is quite short, so it is necessary to increase the cassava added value to extend the cassava value chain from farmers.

Realizing that added value of cassava from the processing activities in the downstream sector is much higher than the primary products in the upstream, the future agricultural development approach is directed toward product development. The added value development is carried out through agro-industrial development, which processes primary products into competitive intermediate and end-products [49].

### **6. Map of cassava business development**

The development of cassava is carried out from upstream at the farm level to downstream for food, feed, and industrial businesses. These four cassava businesses are described in four quadrants (**Figure 4**). The development of cassava at upstream or farm level is in quadrant I where this position is between the strength (S) factor and the opportunity (O) factor. In this area, the business is at a growth rate, which is further development is carried out by managing or optimizing the business' strengths to seize opportunities. The direction (slope) of cassava farming development tends toward the opportunity (O) factor, so that the implementation includes meeting high market demand by increasing cassava productivity (yield) [50].

Position of cassava development as raw material for food and feed is also in quadrant I with the directions (slopes) of those development positions tend towards strength (S). Businesses of cassava as food and feed raw materials have strength factors larger than the weakness. Meanwhile, by looking at the influence of the environment on cassava farming development on food, the opportunity for cassava development is easier to achieve, due to the opportunity (O) value being higher than the threat (T) value. The threats for cassava development at the farm level, as well as for food and feed businesses, can be anticipated by seizing the best opportunities supported by the use of great strength.

The development of cassava farming for industrial raw materials is in quadrant II, which means that the direction of development is still leaning toward threat (T) factor than to strength (S) factor. Thus, the right strategy is exploring the strength owned by the business to overcome the existing threat, namely, product

**Figure 4.** *Map of cassava business development (Source: [50]).*

diversification strategy. Product diversification will enhance the longer and more numerous value chain, so that it will reduce the threat in the cassava business.

There is a lesson learned from the small-scale cassava industry, namely, UD. Riang in Malang Regency, East Java Province produces three kinds of processed cassava in form of instant food, namely, instant *gatot*, instant sweet *tiwul*, and instant plain *tiwul,* would show us how this small business is trying to manage its strengths to seize market opportunities [51].

*Gatot* and *tiwul* are traditional specific Javanese food and usually consume in some barren areas in Java, such as in Gunung Kidul (Yogyakarta), Wonogiri (Central Java), and Trenggalek (East Java). Javanese people in that area tend to consume cassava as their staple food as a rice substitute during famine times. Firstly, cassava was processed into *gaplek* by drying the cassava under the sun, so that it can be stored longer. For consumption purposes, *gaplek* can be further processed into *gatot* and *tiwul*. *Gatot* is made from sliced black brown-color *gaplek* that is overnight-soaked then steamed, while *tiwul* is made from chopped white-color *gaplek* into a coarse powder that is mixed with water and then steamed. *Gatot* and *tiwul* have unique texture affected by the gelatinization of starch from *gaplek*. The steamed *gatot* is usually consumed as a sweet snack and served with some sugar, salt, and grated coconut flesh, while *tiwul* is usually served as a rice substitute by adding side dishes with plain or salty taste or consumed as a sweet snack by further processed using with brown sugar and sprinkled with grated coconut flesh [52].

UD. Riang has a production capacity of 100 kg per product per one production time, where the one-time production process of instant sweet and plain *tiwul* is 3 days and instant *gatot* is 7 days. UD. Riang is trying to continue to improve the image of processed cassava as a prestigious food by doing innovations in processing cassava from traditional Javanese food with local wisdom into the current trend of people's eating patterns that demand fast and practical things, in form of instant food.

UD. Riang also improved product packaging to keep up with the current times and included the information of expiration date and the Ministry of Health's permit in the

#### *Prospects of Cassava Development in Indonesia in Supporting Global Food Availability in Future DOI: http://dx.doi.org/10.5772/intechopen.106241*

packaging. Product quality is always maintained and no preservatives are used in this instant traditional food processing. UD. Riang actively participates in traditional food festivals to expand the marketing of their products and introduce them to the community. The management of UD. Riang continues to innovate the products because they realize that the sales of these three instant cassava products are very volatile in the market, so they need to be maintained in order to do not fall and disappear from the market. UD. Riang is also trying to expand the marketing segment by reaching potential young consumers, so that the unique and attractive products should be displayed where they can compete with other processed food products that are already in demand by young consumers [51].
