Ashanti

Aninkorah Farms

An established poultry and egg farm seeks US$500,000 in working capital to purchase inputs to expand feed and poultry production.

Investment needed: $500,000

USAID FinGAP Environmental Risk Review completed
Business Type
Processing
Deal Type
Debt
Financing
Working Capital
Value Chain
Maize, Poultry, Soy

Market Opportunity

Urbanization, rising per-capita income, and increased consumption are driving significant increases in demand for poultry and eggs. Demand is outpacing domestic supply, creating opportunities for investment in local poultry producers and processors to expand production. According to the USAID Enabling Agricultural Trade (EAT) Ghana Assessment (the market for maize, rice, soy, and warehousing in Northern Ghana), the poultry sector in Ghana could compete with the over 100,000 metric tons (MT) of imported, ready-to-cook, broiler meat chicken. The guinea fowl value chain also presents strong opportunities in the poultry market: The Ministry of Food and Agriculture (MoFA) estimates that the current level of guinea fowl production is only 60% of the market demand.

Investment Opportunity

Aninkorah is a large-scale poultry farm outside of Kumasi that seeks to expand its already successful business. Having been in business since 1980, Aninkorah is well established. The company has 100,000 birds, including layers and infant layers, and guinea fowl for meat, and sells 45,000 eggs per day. Aninkorah has a number of fixed assets with capacity to expand. Its assets include three 2 MT per hour feed mills (with a total installed capacity of six MT per hour) and maize drying equipment, which are only being used to meet the company’s own feed needs (24–30 tons per day). Aninkorah also has ample storage space, with an underutilized warehouse that has capacity for 18,000 tons of cereal. It utilizes maximum 35% of storage capacity during the peak season of maize production or at harvest when prices are low. Otherwise, capacity utilization is just 10%–15%. The company’s growth is only limited by a lack of capital to purchase feed input supply (soy and maize) for more than 3 months stock. An injection of working capital would allow the company to capitalize on existing fixed assets and tap into growing demand for poultry and high-value guinea fowl meat.

Investment Required

In order to expand product lines, Aninkorah is seeking US$500,000 in debt, which will be used to purchase soy and maize feed inputs for additional layers and guinea fowl.

BAS Needed

Next steps include engaging a business advisory services (BAS) firm to develop a full business plan and proposal for this investment opportunity, support supplier linkages, and facilitate the investment transaction.

Environmental Considerations

A USAID FinGAP Environmental Risk Review (ERR) has been completed for Aninkorah Farms Limited.

Supporting Initiatives

There are a number of donor-supported initiatives to increase agricultural production in Northern Ghana that can be leveraged to support small farmers in expanding production and increasing yields, thereby ensuring a reliable supply chain for Aninkorah’s feed inputs, such as:

  • USAID Financing Ghanaian Agriculture Project (FinGAP) to support the company with linkages to BAS providers and 14 Partner Financial Institutions
  • USAID-supported Agricultural Development and Value Chain Enhancement (ADVANCE) Project
  • Savannah Agricultural Development Authority.

In terms of the public sector:

  • The Ministry of Food and Agriculture and the Ghana National Association of Poultry Farmers have launched a 10-year Ghana Broiler Revitalization Project to boost local capacity in the production, processing, and marketing of broiler chicken. Selected farmers can receive day-old broiler chicks and feed to raise them for 8 weeks. The matured broilers will be bought by a nucleus farmer for processing, thereby providing a ready market for them.

Contact Info

Edward Maxwell Aninkorah, Managing Director, Aninkorah Farms Limited, +233 (0) 243 779 686; (0) 208 112 918