Ashanti

Jokas Farm LTD

An established poultry farmer seeks investment to finance its expansion plans and meet growing demand for table eggs and broiler production.

Investment needed: $2,680,000–6,000,000

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

Market Opportunity

It is projected that the Government of Ghana’s (GoG) support to facilitate development and growth of the poultry industry through the Ghana Broiler Revitalization Project will create a market for local poultry products of about 60 million bird-equivalents. The continuous growth of chicken meat consumption in Ghana over the past two decades has led to the import of approximately 140 million bird-equivalents of poultry products, which has prompted the Government of Ghana to encourage importers to procure 40% of their imports from the local market instead. Thus it is anticipated that a market of approximately US$80 million will be available for poultry industry participants, including Jokas Farms, to tap into.

Investment Opportunity

Jokas Farms Ltd has been in the poultry production business since 1962, producing eggs and broiler meat which it supplies to hotels, restaurants, retail shops, and directly to households. Jokas Farms currently has 50,000 layers and produces approximately 40,000 eggs a day and 50,000 broilers per year. It intends to increase the total layer and broiler population to meet the growing demand for table eggs and broiler meat. The company has four sites, one at Abrepo Tekese and three at Esaaso, off Kumasi to Barikese road, Ashanti Region. As a part of its expansion plan, Jokas Farms plans to fully migrate its operations to a newly acquired site at Esaaso.

The company is planning an integrated approach to farming that will significantly increase its bird population. In order to meet growing demand for table eggs on the local market, Jokas Farms is looking to increase its layer population from 50,000 to 100,000 in the short term, and 200,000 birds in the medium term. Jokas Farms aims to increase its annual broiler production to 100,000 and 240,000 in the short and medium terms, respectively.

Jokas Farms also seeks to invest in a hatchery to produce day-old chicks (DOCs) for its layer and broiler projects and to provide hatchery services to other poultry firms. The company would produce 50,000 DOCs per week in the short term and increase it to 100,000 per week in the medium term. The company will establish new state-of-the-art feed mill to formulate and produce feed for the birds. The proposed investment would increase the current feed production from 50 MT per week to 300 MT per week for its poultry farm and for sale to other poultry farmers. These would consequently increase its demand for maize and soybean and therefore require expansion of its storage facility. Moreover, it would need to expand its network of suppliers of these raw materials who are predominantly women aggregators.

Investment Required

Jokas Farms is looking for US$2.68-6 million in investment to be used for acquisition of breeder farm and a hatchery, construction of modern shelters for the broiler and layer farm, raising of birds (broilers and layers) through the outgrower farms, and animal nutrition through construction of poultry feed mill. US$2.68 million is sought in the short term, 80% of which will be used for fixed capital investment, with the remainder for working capital. An additional US$6 million will be needed in the medium term to finance Jokas Farms’ expansion project.

BAS Needed

Jokas Farms Ltd has contracted with KPMG to provide business advisory services, including an operational and commercial review of the existing business and a review of the corporate vision for the future.

Environmental Considerations

Key considerations include management and disposal of bird droppings, and control of byproducts emanating from the feed mill into the atmosphere in powder form.

Supporting Initiatives

There are a number of initiatives that support the feasibility of this investment, including the Ghana Broiler Revitalization Project. The public sector can play an important role by:

  • Making sure that importers of poultry products source 40% from the local poultry farmers
  • Enforcing the company’s environmental management plan to minimize environmental load.

Contact Info

Kwame Agyeman Tuffour, CEO, +233 (0) 208 120 398, mdjokas@yahoo.com