Market trends are signaling that recent quality improvements in meat production are increasing Ghanaian consumers’ willingness to consume locally produced meat. Domestic meat production rates are growing faster than those of imports: between 2010 and 2014, cattle, sheep, and goat meat production increased by 17% from 56,135 MT to 65,861 MT, while meat imports increased by 9%. However, a relatively small number of large-scale professional processors with their own abattoirs are unable to keep up with the large and growing demand for premium meat stemming from quality markets, including restaurants, hotels, and supermarkets; and government and corporate buyers such as schools, hospitals, security service, and mining companies. The growth of Ghana’s livestock sector is driving corresponding demand for feed inputs, including maize and soya bean. Demand for these products is currently outpacing supply, creating challenges for producers and processors who need to cost-effectively procure feed.
OAG Farms & Meat Processing Limited (OAG Farms) is a wholly owned Ghanaian LLC incorporated in 2013, which slaughters, processes, and sells livestock (including cattle, goats, and sheep) to buyers. The business has a farmer support program that supplies mid-sized bulls to partner farmers for fattening and young cows for rearing and breeding. These are then repurchased and sold in the market by OAG Farms. The farmer support program enables OAG Farms to provide a stable market and price premiums for partner farmers’ livestock, as well as integrated veterinary support services, animal feed, food supplements, and vitamins. The company has a branch in Burkina Faso that facilitates buying animals from that country. At its peak, the company imported and distributed 100–120 cattle, 250 goats, and 200 sheep per week. OAG Farms is pursuing an integrated business strategy through primary cultivation of grains (rice, maize, soy, and groundnut) on 80,000 ha of land in the Northern Region. A portion of the crops produced by the company are used as feed for its livestock, and the remainder is sold in local markets. The planned proportion of crops to support the business is 40% rice, 30% maize, 15% soy, and 15% groundnut.
OAG Farms requires $2 million in capital investment and working capital to fund its expansion plan. Funds will be used for backward integration in rice, maize, soya, and groundnut cultivation. The company plans to purchase tractors, harvesters, back holders, excavators, and planters to support cultivation of 8,000 ha of land per year over the next 5 years.
OAG Farms is working with DAB Consult, a BAS provider, to access suitable financing.
An environmental risk assessment has been undertaken by DAB Consult to support OAG Farms.
Several ongoing initiatives support the feasibility of this investment, including:
- The Ghana National Livestock Services Project aims to increase meat, egg and milk production; raise producer incomes; increase access to livestock services, including health, water, and forage resources; improve breeding stock; and improve animal production technology.
Osman Alhassan Gomda, CEO, +233 (0) 247 980 346; firstname.lastname@example.org