Urbanization and changing consumption patterns have created strong and growing markets for processed foods and beverages, many of which require maize as an input. Projected growth in the poultry sector has also increased demand for maize meal for poultry feed. However, prices for these commodities typically show tremendous volatility throughout the year. Due to the lack of warehouse capacity in the northern regions, prices tend to be at their absolute lowest point for the year around harvest time, then often rise dramatically later in the year when their existing storage runs out. Any experienced aggregator in the market with warehouse capacity has an opportunity each year to generate substantial profits if they can purchase large amounts at harvest time and then sell at least some portion later in the year when prices rise.
Amantin Agro Ltd., located in the Atebubu-Amantin District of the Brong Ahafo Region, was founded in 2004 as a subsidiary of the Accra- based Supercare Group. Amantin has built a successful business around cassava, maize, and rice. After piloting soya production in 2014, the company has now set out to expand its production of soy and maize. It has acquired about 11,500 acres of farmland for its operations in Brong Ahafo. In addition, the company manages a network of 5,000 outgrowers on another 18,000 acres.
Amantin is seeking a total of $51.5 million in investment, including $50 million for a state-of-the-art cassava processing facility, which would produce not only tubers but starch, ethanol, and tapioca, among other goods. The remaining $1.5 million will be used to purchase five Facon mulchers, which Amantin needs to expand crop production, as they dramatically reduce the time to remove tree stumps. The company is interested in both debt and equity solutions (including borrowing in USD), depending on cost and terms.
Amantin may require a BAS provider to help raise financing for the project.
A USAID-FinGAP ERR has not been conducted yet.
Several government, donor, and business initiatives support this investment, including:
- USAID-ADVANCE II, SADA, and NRGP, among others, have begun to promote productivity of maize and soya in the SADA Zone, which includes the Atebubu-Amantin and Pru districts.
- FBOs operating under MoFA
William Oppon Bio, Executive Chairman, +233 (0) 244 163038 / +233 (0) 265 939465, firstname.lastname@example.org