Ashanti

Boris B Farms and Veterinary Supplies Limited

A major distributor of poultry feed, egg trays, and poultry equipment is seeking US$16.24 million to develop an integrated chicken processing plant, and up to US$60 million for its long-term expansion and diversification plan.

Investment needed: $16,240,000–60,000,000

USAID FinGAP Environmental Risk Review required
Business Type
Input, Processing
Deal Type
Debt, Equity
Financing
Cap-Ex, Working Capital
Value Chain
Maize, Poultry, Soy

Market Opportunity

Given Ghana’s fast and growing demand for chicken and the lack of chicken processing plants operating on a commercial basis, there is a significant market opportunity for investment in agribusinesses that take an integrative approach to chicken production and supply. Consumption of chicken meat in Ghana has experienced continuous growth over the past two decades. While demand for chicken has grown 4% annually since 2000, reaching 250,000 tons per year by 2012, local supply has declined from 90% in the mid-1980s to the present level of below 10%. The current gap of about 90% translates to approximately 225,000 tons per annum, of which almost 70% (157,000 tons) is imported. In value terms, total chicken imports by Ghana cost annually an average of between US$197 million and US$200 million.

Investment Opportunity

Boris B Farms and Veterinary Supplies (Boris B) supplies feed, additives, equipment, and drugs for poultry and pig production and also operates a USaiD FinGaP environmental Risk Review required poultry farm. Boris B has eight branches in Ghana, two agencies in Togo and Cote d’Ivoire, and a subsidiary in the United States. Boris B is currently the sole sponsor and financier of the Ghana Broiler Revitalization Project, launched in partnership with the Ministry of Food and Agriculture and Ghana National Association of Poultry Farmers, which is designed to boost local capacity in the production, processing, and marketing of broiler chicken. Boris B has earmarked 1 million broiler birds for the first phase of the initiative. In year one, the project produced 300,000 birds for the local market, falling short of its target of 5 million birds. The proposed project will generate an estimated 43 direct jobs, with a potential to double that number with increased production in subsequent years, and will lead to jobs for cold stores, chicken traders, and other indirect employment.

Investment Required

Boris B is seeking US$16.24 million to develop a state-of-the-art chicken processing plant, as well as US$60 million in debt to finance its medium-to-long term project to establish and operate a feed mill that will produce high-quality, affordable, pelletized feed for the poultry industry. This will support the Ghana Broiler Revitalization Project by alleviating the burden of mixing by the farmers without compromising quality. Boris B also plans to establish and operate a poultry farm as part of the company’s vertical integration drive to further improve quality poultry production in Ghana.

BAS Needed

BAS that may be required includes business planning, raising financing for the project, and business and financial management systems installation.

Environmental Considerations

An ERR has not yet been undertaken. Biogas plants in poultry clusters are planned to turn poultry waste into energy and organic fertilizer.

Supporting Initiatives

There are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support production advances of small farmers, such as:

  • USAID FinGAP to support the company with linkages to BAS providers and 14 Partner Financial Institutions.

In terms of the public sector:

  • The Ministry of Food and Agriculture and Ghana National Association of Poultry Farmers’ 10-year Ghana Broiler Revitalization Project will boost local capacity in the production, processing, and marketing of broiler chicken.
  • The public sector can provide support with respect to regulations and permits, e.g., the Environmental Protection Agency (EPA) for environmental impact assessment and permit, Food and Drugs Board (FDA) for certification of products, and Ghana Standards Authority (GSA) for certification of standards.

Contact Info

Boris Baidoo, Managing Director, +233 (0) 244 370 697, bbwv@hotmail.com