ABSTRACT

International trading arose because of the riced by nations to trade in goods and services in which they have comparative advantage. According to David Richard’s theory, a country should specialize in the production and export of those goods and services it carl produce more efficiently than other goods arid services arid that it should input those goods arid services in which it has least comparative advantage (Arene, 1998). International trading in cassava began in the early1950's with the exportation of tIre by-products of the cassava from Thailand to the European cci nmunity (FAQ, 2000). Cut rent globalization resulting to increasing competition has made it necessary for Nigeria to develop its own nonoil agricultural commodity such as cassava at competitive world market price (Nwosu, et. al. 2003). Cassava gained pron1r10nc0 as an export commodity following the relative high cost of grains especially maize used in the livestock industry in the European community which is the largest importer of cassava chips and pellets (FAQ, 2000). Nigeria is the largest producer of cassava in the world (FAQ stat. 2004). Nigeria does not however, export a considerable amount of cassava products. Nigeria produces about 34mi11ion metric tones of cassava annually (FAO stat. 2004) making it the largest producer of the commodity, followed by Brazil. With a population of about 140 million (CBN 2005). Most of the cassava produced in Nieria is consumed locally (Nweke ot. al. 2000 and FAQ 2000).