High quality cassava flour project Note: This project has been cancelled, because of deterioration of the market perspectives and increasing cost prices.The project will establish a production facility for the processing of fresh cassava into high quality cassava flour (HQCF) that as low cost carbohydrate raw material can be used in several agro-alimentary processes in particular as replacement for imported wheat flour in bakeries, pastry and biscuit making. The project will be implemented by a joint venture of the applicant Les Moulins de la Concorde (LMLC) which is the biggest flour mill in Mauritius and the local partner LFL Madagascar which is involved amongst other in the manufacturing of animal feed. Although in the past, there has been an experimental processing unit for cassava flour, the quality of the flour was and is unsuitable to be used as replacement in bakeries and pastries for wheat flour. The present project will be able to meet the high quality demand. The production of 2,500 tons HQCF annually will require the supply of 7,500 tons of fresh cassava, produced by more than 2,000 smallholder farmers and collected by 20 collectors. The processing facility will be located in Fianarantsoa, in the heart of the area where there is excess production of cassava according to a detailed study of the World Bank.Corporate Social Responsibility (CSR)The project will adopt the Food and Allied Group CSR strategy to its Cassava processing operations in Madagascar, adhering to all international and national standards of human rights and labour norms and subscribing to fair employment and industrial relations.The local partner applies already corporate social responsibility in its operations in Madagascar and its labour force is one of the better-paid human resources with an extensive training programme on technical issues but also on social, security and health issues such as HIV/AIDS prevention. As implementer of the project LFL Madagascar will engage the Food and Allied Welfare Foundation to establish a CSR policy inspired by the group’s general CSR plan and adopt this to conditions and operations in Madagascar. Staff of the joint venture will be involved in the formulation and implementation of the CSR policy.Impact•	Employment and working conditionsWages paid by LFL Madagascar are well above local minimum wages and labour laws and regulations and provide additional provisions for healthcare, pension and unemployment security.The extensive training programme foreseen under the project puts staff and labour in a favourable position in terms of capacities and skills as well as language training.•	Innovation / Transfer of knowledgeAlthough in the past there has been a processing unit for cassava flour in Marovitsika and a number of some small-scale artisanal processing units still exist, the quality of the flour was and is unsuitable to be used as replacement in bakeries and pastries for wheat flour. The old-fashioned factory in Marovitsika has been forced to close in view of its difficulties in selling its products and maintaining its old equipment. So, the product is known to Madagascar, but there is presently no production facility that complies with the high quality standards.•	Chain effectsImpact on local suppliersThe production of 2,500 tons of HQCF annually will require the supply of 7,500 tons of fresh cassava, produced by smallholder farmers. The project will provide an additional income of about 65 euro, for over 2,000 farmers corresponding to the wages of 2 months of minimum salary.Through a contractual arrangement, cooperation is foreseen with 12 local transporters, who will assure the collection of 7,500 tons fresh cassava, providing them with an assured market and price for their collection and transport services (0.15 euro/kg).In order to interest farmers for the supply of fresh cassava to increase the area grown under the crop and improve yields, special training and information is provided through farmer’s field days and demonstrations as foreseen under the training programme of the project. Similarly, the 12 local collectors will receive instructions and briefings through seminars foreseen under the training programme on conditions and contractual arrangements for the purchase, logistics and supply of the raw material and in particular on the risks and the social and environmental responsibilities of the collectors.Impact on local customers or consumersThe replacement of imported wheat flour by HQCF will be of direct benefit to consumers as the lower price of raw materials in the preparation of bread, pastry, biscuits and child food will result in a lower price of the product. In particular, the impact on the price of bread will be important and reverse the present trend of local bakeries to make smaller breads and apply more yeast in order to avoid the continuous increases in price of bread.•	Impact on the sectorThe industrial processing of cassava has been identified as one of the main opportunities for the developed of the cassava sector: as indicated in the recent World Bank study there is still considerable potential to increase production for industrial processing and use by local agro-industries and include flour mills, biscuit makers, small, medium and large bakeries, and pastry makers as well as possible other industries including infant food, meat processing, seasoning of drinks, textile, paper and cardboard industries, glucose processing and ethanol production.•	EnvironmentThere will be no immediate impact on the environment from the processing plant, as no chemicals or other hazardous inputs will be used and a waste water installation is included in the hardware component.•	Position of womenThe objective is to recruit women for 50% of the higher and medium positions, which amounts to 6 positions.•	Impact on food safetyThe project will directly contribute to local food security.•	Impact on waterThe project will not directly impact on water or sanitation. The goal of the project is to process low-cost cassava into high quality cassava flour in a flour mill with a capacity of about 2,000 kg/hour of wet cassava tuber resulting in 660 kg/hour flour which equals to an annual capacity of 2,500 tons cassava flou