Maize and soy are in high demand due to the fast growing and urbanizing population of Ghana and neighboring markets. This is also driven by global demand for alternative sources of edible oil and by-products in the pharmaceutical, cosmetic, and confectionary industries. However, production capacity is limited by low agricultural yields caused by rain-fed production. Moreover, small-scale farmers lack equipment to prepare land to cultivate stable food crops, and lack good agro inputs. There is a compelling business case for investment in firms that can expand maize and soy yields by introducing new technologies and mechanization and supporting local partners to meet production requirements.
Pee Farms Ltd., founded in 2003, is one of Ghana’s most sophisticated farming operations. Since its inception, Pee Farms has developed a successful and well-integrated out-grower scheme in the Upper East, Upper West, and northern parts of the Brong Ahafo and Ashanti regions for production of maize and soy. Pee Farms provides mechanization services, warehousing, inputs, aggregation/marketing and advisory services, and technical training to its network of over 3,000 farmers. The company’s soya out-grower network has made it one of the largest soya bean producers in the Northern Region. Pee Farms assets include 800 acres of farmland, a warehouse, multipurpose combine harvester, strong management, and highly skilled workforce of 35 employees. Its technical expertise coupled with the quality of its operations and products make it possible for the company to profitably expand its own operations and those of its out-grower network.
Pee Farms is seeking $420,000 in working capital and long- term financing to expand its warehouse and acquire another combine harvester, tractors, and accessories to increase maize and soy production for sale locally and for export. The company is open to both debt and equity financing solutions, or a combination of both.
Pee Farms may require a BAS provider to help raise financing for the project.
A USAID-FinGAP ERR has not been conducted yet.
Several initiatives will support the success of this investment,including:
- USAID-ADVANCE II, GCAP, SADA, and NRGP, among others, have begun to promote productivity of maize and soy in Ghana.