Changing consumption patterns have created growing markets for processed foods and beverages that use soy as inputs. International demand for soy and unrefined shea butter is also high for use as ingredients in the cosmetics, pharmaceutical, and confectionary industries. The market pull from these sectors creates significant opportunities for processors and small farmers. Experienced aggregators with warehousing facilities are especially well-positioned to take advantage of growing opportunities in local and international soy marketing.
Kataumi Foods Processing Ltd. (KFPL) provides aggregation, inputs (certified seed, fertilizers), and mechanization services to a network of 265 outgrowers who produce maize, rice, and soya on a total of 150 ha. Under an existing GCAP program, KFPL plans to double the land cultivated by its outgrowers to around 300 ha. The company also has a 500 MT warehouse that it uses for aggregation of crops, and where it plans to set up a testing and research laboratory and install a step-down transformer for electrification to enable more precise measurement and quality control of crops in storage. KFPL’s long-term goal is to become a leader in processing soya bean and shea butter into soya oil, soya cake, body lotions, and soap for the local and export markets. With an injection of capital, KFPL can realize that goal. KFPL also has a strong agri-business cluster for soybean VCs in the northeastern corridor of northern Ghana (Salaga, Kpandia, and Chamba) linking 49 family-based farmer cooperatives to provide an additional source of raw materials for soy processing.
As an experienced aggregator in the market with warehouse facilities, KFPL identifies the opportunity offered in the processing and marketing of soy products locally and internationally.
KFPL is seeking capital investment and working capital totaling $3.4 million to procure processing equipment, office equipment, and trucks, and to stockpile raw materials to establish and operate a soy processing center in the Northern Region. KFPL is interested in both debt and equity solutions.
KFPL may require a BAS provider to help raise financing for the project.
A USAID-FinGAP ERR has not been conducted yet.
Several business initiatives will support the success of this investment, including:
- USAID-ADVANCE II, SADA, and NRGP, among others, have begun to promote productivity of maize and soya in the SADA Zone, which includes the Atebubu-Amantin and Pru Districts.
- FBOs operating under MoFA
Prince Andani Imoro Alhassan, CEO, +233 (0) 203 788884 / +233 (0) 266 414108; firstname.lastname@example.org