With demand for staple crops on the rise, there is great opportunity for businesses that can increase farming capacity and reach outgrowers with reliable mechanization services. Changing consumer taste for chicken and eggs is pushing up prices for maize, rice, and soy, driven by increasing domestic demand from poultry farmers for feed ingredients (maize and soy) and from the population at large for rice. Further opportunity exists for providing warehouse space to stabilize crop prices all around. Currently, price volatility is a major issue as prices are at their absolute lowest around harvest time, rising dramatically during the lean season due to inadequate warehousing capacity.
Behisung Farms, Ltd. has been farming maize, rice, and soy in communities near Tamale since 2005 and now encompasses 431 acres of farmland and supports a network of 5,000 active outgrowers. The company is seeking to increase its outgrower network 10-fold by improving production capabilities via its mechanization center. Acquisition of a crawler- type combine harvester and three new tractors would support over 50,000 outgrowers and double maize, rice, and soy bean production from their farms for sale to processors. Behisung sells its produce to a wide spectrum of buyers, including major distribution enterprises and industrial processors that are predominantly based in the middle belt of Ghana. With the increase in production, Behisung Farms has identified the potential for use of storage facilities to prevent postharvest losses and store produce to sell at higher price points throughout the year. Behisung Farms has the land to build a 500–1,000 metric ton (MT) warehouse to fill the void.
Behisung Farms is seeking $400,000–$750,000 to purchase equipment (three tractors and a crawler-type combine harvester) and construct a 500–1,000 MT capacity warehouse. The firm is open to any long-term loan, mezzanine finance, equity solution, or a combination thereof, depending on cost and terms.
Behisung Farms could benefit from the support of a BAS provider to help develop the necessary documentation to obtain a loan from a financial institution.
The BAS provider will need to conduct an environmental risk review (ERR) of Behisung’s activities. The company will need to manage disposal of agro input packaging materials.
Numerous donor and GoG ongoing and pipeline initiatives in the Northern Region that provide fertile ground for growth and success of this investment include:
- Ghana Commercial Agriculture Project (GCAP)
- MoFA FBO support services
- MoFA Agriculture Mechanization Service Centers (AMSEC)
- Ghana Commodity Exchange Project (GCX)
Mr. Abdul-Razaq Umar, Managing Director, +233 (0) 507 457 855, firstname.lastname@example.org