Given changing consumption patterns and higher demand for eggs and poultry, there is ample opportunity for poultry farmers to capture an import substitution opportunity by increasing production and investing in feed storage. In Ghana, the period between November and January is when the prices of maize and soya, the two main ingredients for poultry feed, are at their lowest. After that, grain becomes scarce and prices keep rising till the next harvest season, when new produce forces prices down. For poultry producers, this seasonality can be very hard to manage without storage and sufficient working capital to store maize and soya grain for feed formulation.
Neta Farms Ltd. has four farms covering a combined 45 acres in the Ashanti Region. It registered in 1991 as a limited liability company, raises both broilers and layers, and sells eggs from its premises at Ejisu Krapa. The company has an established capacity for 350,000 birds at a time, with a distribution network for poultry meat and eggs covering Accra, Tema, Takoradi, and Cape Coast. It participated in the pilot phase of the GoG Broiler Revitalization Project by raising 50,000 broilers.
Neta Farms has a feed mill; soya processing plant, from which soya cake is produced for feed formulation; adequate storage capacity, with a 1,800 MT capacity warehouse for storing feed; and complementary equipment, including mechanical grain drying and cleaning equipment, and distribution trucks. However, the company lacks the working capital to stockpile maize and soya for continuous production of feed. An injection of working capital will enable Neta Farms to take advantage of its installed capacity and increase production to meet the demand of its customers.
Neta Farms is seeking $260,000 in working capital financing to begin stockpiling maize and soy for feed production during the time of year when prices are at their lowest. The company estimates that $260,000 in working capital will result in a 300% increase in profits.
Neta Farms could benefit from BAS to help it develop the necessary documentation to obtain a loan from a financial institution.
A USAID-FinGAP ERR has not been conducted yet.
Several ongoing initiatives support the opportunity, including:
- GoG Broiler Revitalization Project
- USDA Poultry Feed Project to build capacity of Ghanaian farmers in poultry feed formulation
- USAID-ADVANCE II, GCAP, SADA, and NRGP
Eric Oppong and Thomas Adom, Co-Owners and Co-Managers, +233 (0) 24 459 8372