Given changing consumption patterns and increased demand for eggs and poultry, there is ample opportunity to capture high-value processing in Ghana via import substitution. In July 2014, the Government of Ghana, through the Ministry of Food and Agriculture and the Ghana National Poultry Farmers Association, launched the 10-year Ghana Broiler Revitalization Project to boost local poultry production. According to the USAID EAT Ghana Assessment, the poultry sector in Ghana could compete with the more than 100,000 MT of imported, ready-to-cook, broiler chicken meat. Furthermore, it is estimated that the substitution of local broiler production for ready-to-cook chicken imports would require an additional 175,000 MT of yellow maize for poultry feed, and will roughly double the domestic soybean market, creating major opportunities for farmers in these value chains.
K. Asante Farms, a poultry farm based in Kumasi, aims to capitalize on this import-substitution opportunity by expanding its egg production and moving into broiler production and meat processing. K. Asante is a well-established farm that has been in business for 10 years and is managed by the Chairman of the Ghana National Poultry Farmers Association. In 2014, K. Asante was able to increase its bird population from 20,000 to 22,000 including about 12,000 layers for egg production. K. Asante Farms wants to increase bird population to 200,000 over the next one and half years and to 1million in 5 years with 50% of those birds produced through an out-grower scheme. He also intends to establish a poultry processing plant, build a chain of distribution outlets, and increase egg production. This opportunity has high potential for development impact, because Asante purchases feed inputs from local soy processors (such as 3K and A Industries, Vester Oil Mills Limited) and maize from aggregators (Odeasempa Cooperative) who source from northern Ghana.
K. Asante Farms requires about US$3.2 million in financing (combining equity and debt) to procure the processing and packaging facility and cold trucks, and extend the existing farm to be able to increase the bird population.
Next steps for realizing this investment include connecting K. Asante Farms with a BAS provider that can help refine Asante’s business plan, conduct due diligence and sensitivity analysis on projections, and recommend equipment for purchase. A financial facilitator should be engaged to support Asante to access and structure appropriate financing.
Key considerations include management and disposal of bird droppings, and control of byproducts emanating from the feed mill into the atmosphere in powder form.
There are a number of donor-supported initiatives that could be leveraged to support the development of a competitive sector:
- Ghana Broiler Revitalization Project
- Technical assistance to improve production and value chain efficiencies, and ensure an adequate supply of feed inputs at stable prices
- Development of an “eat local” poultry campaign by the Ghana National Poultry Farmers Association in partnership with the GoG. Complementary investments in cold chain logistics will be needed for distribution.
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.
Mr. Kwadwo Asante, Managing Director, K. Asante Farms Limited, +233 (0) 208 119 440; (0) 243 287 972; (0) 504 434 241; (0) 233 053 835; email@example.com