Urbanization and rise in per capita income has been a driving force in demand for poultry and eggs in Ghana. Moreover, the recent increase in the number of global food chain franchising outlets has made a significant contribution to the increased demand. However, local boiler production meets less than 5% of total demand. There is continuous demand for table eggs on both the Ghanaian and export markets in the neighboring Sahel countries. Investment in these market opportunities will also facilitate growth of the maize and soy VCs, since these crops form about 85% of feed used by poultry farmers.
Fosuka Farms, Ltd., established in 2002, is headquartered in Kumasi, Ashanti Region. The firm raises layers on three separate farms spread over 20 acres. An estimated 60% of sales are made through its own branded retail shops in Techiman, Accra, and Kasoa, with the remainder sold through other retailers.
Fosuka Farms has initiated a short to medium-term strategic investment plan to make in-roads into the poultry products market. This includes increasing its broiler production, expanding its feed mill, and improving its distribution network. The company plans to leverage some of the recent initiatives in the poultry industry to support its investments, including USDA’s Ghana Poultry Feed Project, GoG Broiler Revitalization Project, as well as other USAID projects that are supporting production, utilization, and marketing of maize and soybeans for poultry feed.
Fosuka Farms seeks $200,000 to expand its rapidly growing business. This includes capital investment to purchase delivery trucks, equipment for poultry feed production, and working capital to increase stocks. The firm is open to any long-term loan, mezzanine finance, equity solution, or combination thereof.
Fosuka Farms may require a BAS provider to help raise financing for the project.
As it expands its feed production activities, there will be a need to invest in systems that will minimize pollution from the feed mill. Two other key environmental considerations are disposal of the droppings from the birds, and felling of trees to construct the bird pens. A USAID-FinGAP ERR has not been conducted yet.
Numerous ongoing initiatives help create a business environment conducive to the investment, including:
- GoG Broiler Revitalization Project
- USDA Poultry Feed Project
- USAID-ADVANCE II, GCAP, SADA, and NRGP, among others, have begun to improve on maize and soya productivity in Ghana, which will increase the supply base of these commodities to the benefit of the poultry industry in Ghana.
Kwaku Fusu, Managing Director, +233 (0) 204097533