Annual broiler demand in Ghana is estimated at 300,000 MT, at a growth rate of 19%. Although broilers produced in Ghana are reported to be of high quality, Ghanaian producers have not been able to build the economies of scale to compete on price with frozen imports from countries such as the United States and Brazil, where frozen broilers are produced on a massive scale. To achieve the economies of scale to satisfy domestic demand for poultry, Ghanaian producers need greater installed mechanized poultry processing capacity. Current capacity of about 28,000 MT per year can only process 9% of broiler meat demand if all the demand were to be met domestically. This weak base has left a void—and a good investment opportunity. The growing poultry market will also bring about opportunity for high-quality, competitively priced maize and soy for use in animal feed.
Deiku Farms has been in the poultry industry since 1999, producing and selling poultry, table eggs, and feed on the local market from its base in Dormaa. As a long-time expert in the field, Deiku Farms seeks financing to construct a state-of-the-art meat processing plant. The new facility will allow the company to increase production of broiler meat and fill the gap of 100,000 MT between estimated annual Ghanaian demand and imports (about 200,000 MT). In anticipation, Deiku Farms has acquired more land to expand its operations and export to neighboring countries where prices for broilers and spent layers are much higher. The company has also put in place many of the tools needed to grow business, including 20 bird pens with a total capacity of 20,000 birds, and a feed mill to process its own feed and sell to customers.
Deiku Farms is seeking $15.5 million in long-term debt financing, including capital investment of $10 million to construct a new meat processing plant with a cold room, packaging machinery, abattoir, and three refrigerated trucks to distribute its produce. The firm is also seeking $5 million for a hatchery with a capacity of 50,000 day-old chicks per week, and $500,000 as a working capital line of credit to purchase raw material. Deiku Farms is currently only interested in debt financing.
Deiku Farms may require a BAS provider to help raise financing for the project.
Key environmental considerations include management and disposal of bird droppings and effluent from the proposed abattoir, and general sanitation on the farm to control odor emanating from the farm and abattoir into the atmosphere.
The main ongoing donor-supported initiatives to promote the poultry industry in the Brong Ahafo Region include:
- GoG Broiler Revitalization Project
- USAID-ADVANCE II
- SADA interventions
Dei Kusi, Managing Director, +233 (0) 208 194 800, email@example.com